ASSESSING HUMAN CAPITAL POLICIES AS DRIVERS OF HUMAN CAPITAL DEVELOPMENT PROGRAMMES OF MEGA BANKS IN THE SOUTH-EAST NIGERIA

ABSTRACT

The study was concerned with the assessment of Human Capital Policies as drivers of Human Capital Development Programme of Mega Banks in the South East of Nigeria. The broad objective of the study was to determine the implication of aligning human capital policies with the human capital development programmes of Mega Banks. In line with the main objective, the study sought to: ascertain the extent skill-development policy   engendered    acquisition    of   requisite    skills    through    competency-based programmes;  determine  the extent  on-the-job-training policy engendered  acquisition and development of multi-skills and diverse talents through meticulously articulated job rotation   programmes;   establish   the   degree   to   which   in-service   training   policy influenced  building  and sustaining of a critical mass of highly skilled and IT savvy workforce  through  proactive  cognitive  and  ICT-based  programmes;  determine  the extent  Mega  Banks’  training  policies  contend  with the  challenges  of globalization; ascertain  the  extent  to  which  in-house  training  policy influenced  internalization  of acceptable bank ethics and values through properly articulated orientation programmes and  to  assess  the  degree  to  which  continuous  professional   development  policy influenced  building  and  development  of flexible,  adaptable  and  resilient  workforce through capacity building programmes.  Survey research  design was adopted  for the study.   Both   primary   and   secondary   data   were   used.   Data   collected   through questionnaire  were presented  and  analysed  using  simple percentages  and frequency distribution tables, while the formulated hypotheses were tested using simple regression analysis and pearson product moment correlation. The key findings from the study are as follows:  Skill-development  policy significantly  engenders  acquisition of requisite skills through competency based training programme ((r =0.917, p <  0.05); On-the-job training policy significantly engenders acquisition of diverse talents and  multi-skills through  job  rotation  programme   (r=  0833,  p<0.05);   In  service   training  policy significantly  influences  building  and  sustaining  of  highly  skilled  and  IT  savvy workforce through   cognitive and ICT-based Training Programme (r=0.587, p<0.05); Mega   Banks’   Training   Policies   significantly    contended    with   challenges    of Globalization (p<0.05); In-house training policy significantly influences internalization of  acceptable  bank  ethics  and  values  through  meticulously  articulated  orientation programme   (r=   0.675,   p<    0.05);Continuous   professional   development   policy significantly influences building and developments of flexible, adaptable and resilient workforce through capacity building programme (r = 0.514, p < 0.05); In view of this it was recommended that Mega Banks’ human capital development programmes should be driven by robust and proactive human capital policies to institutionalize steady flow of  globally  competitive  workforce  needed  to  participate  actively  and   contribute qualitatively in the knowledge-based economy. It was also recommended that the issue of skills-gap  requires  tripartite  efforts  of the Federal Government,  Educational  and Corporate Institutions to effectively address the issue with a view to enabling the Mega Banks  (and  other  Corporate  Institutions)   to  be  globally  competitive,   and  most importantly to impact positively on the critical sectors for the much desired sustainable development and vibrant economy to be actualized.  Consequently,  we conclude that proactive  and  robust  human  capital  policies   are   sine-qua-non  for  building  and sustaining  critical  mass  of  qualitative,   highly  skilled/technical   and  intellectually equipped  bankers needed  for Mega  Banks to stay continually competitive,  enabling them to perform their strategic role as drivers of the economy through positive impact on the critical sectors.

CHAPTER ONE INTRODUCTION

1.1      Background of the Study

Undoubtedly, the global financial crisis and the growth of the knowledge–based economy  have  actually  resulted  in  the  urgency  for  new  and  additional  type  of competencies (Adnan et al, 2012:91-95). The global trends actually necessitate placing a  high  premium  on  the  continual  upgrading  of  skills  and  competencies  of  the workforce. According to the authors, the global economic crisis in 2008 posed several threats to Jordanian Banking industry and to contain these threats, Bank’s management formulated a new policy which emphasized a proactive approach to the development of human  capital  to  meet  international  standard.  In the same  vein,  Karthikeyan  et al, (2010:72-83)  stated  that with the kind of reforms and the resulting changes that are currently overawing the Indian Banks, the urgency to inculcate new additional type of competencies among the workforce is getting intensified in the banking sector.

Fundamentally,   the  imperative  for  a  sound  human  capital  policy  driving manpower development programmes in today’s corporate world and knowledge driven economy is critical to optimize performance and to stay continually afloat. The global financial crisis (with its attendant corporate failure and incessant banking crisis) which resulted from corporate mismanagement  underscores  the compelling need for sound and  robust  policies  as  drivers  of  human  capital  development  programmes.  Sadly enough, corporate mismanagement which has eaten deep into the fabrics of corporate institutions  emanated  largely  from  incompetent  workforce,  unprofessional  practice, unethical conduct and sharp practices. Dishearteningly, these maladies were borne out of irrationalities  in the appointment  and engagement  of bank management  staff and personnel,  most  of  whom  are  incompetent,  bereft  of  integrity,  devoid  of requisite potentials and sound moral formation needed for excellent  performance  of the jobs. Character  building  and  formation  are integral  parts of  human  capital development. They are like the DNA of success. Hence the need  to formulate and institutionalize robust policies that would ensure a steady flow  of flexible,  adaptable,  resilient  and morally sound workforce for transition into  the knowledge-based  economy (Oxtoby,

2011:17).

Incontrovertibly, banks in developing economies usually encounter problems in finding individuals with the requisite skills set or skills mix to effectively contend with the daunting challenges of the global financial environment. They are yet to realize the

breakneck  speed with which technology is breaking through because  they have  not actually appreciated the phenomenal and unprecedented changes in the talent landscape in the present knowledge economy.

In Nigeria,  the need for internalization  of new and relevant  competencies  is critical  and  urgent.  Observably,  the  dearth  of  rightly  skilled  staff  in  the  Nigerian banking  sector  has  been  a  topical  issue  since  the  consolidation  exercise  of  2005 (Ifeanacho, 2008:80). The mounting anxiety over the banking crisis is borne out of the fact that the economic development of any nation is directly tied to the banking sector (Aghojafor et al, 2010:34). It is really a worrisome situation because banking is a very crucial factor affecting economic  development of any nation. It is the life-blood of a country,  being responsible  for  the flow of credit  and  for maintaining  the  financial balances of the economy.  Banks constitute  critical segments  of the economy which propel and energize other sectors for meaningful development. The effectiveness and the efficiency with which banks perform their intermediary roles between the surplus and  deficit  spending  units  of  the  economy  determine  to  a  very  large  extent  the prosperity of any nation.  Such a critical and strategic sector that is the mainstay of the nation’s economy requires that their personnel be properly and adequately equipped, continually  up-skilled   and  re-skilled   to  ensure  that  the  banks  are   strategically repositioned to drive the socio-economic development at all times.

Regrettably, most Mega banks (as they are rightly called after the consolidation exercise and reforms) which are yet to come to terms with the breakneck speed with which  technology  is  breaking  through,  fail  to  recognize  how  radically  the  talent landscape has shifted in the past twenty (20) years. The result is a growing disconnect between  the  work  and  the  workforce.  Consequently,  the  challenges  of  work  and workforce disconnects are systemic,  resulting from the rapid shift from industrial to knowledge   based   economies   and   the   unrelenting   technological   advances   that continually propel and inform such shift. Hence the lack of talent is really a limiting factor  in both the  operational  activities  and  growth  strategies  of Mega  banks.  The incessant bank distress and failure that resulted mostly from poor corporate governance (sharp and  unwholesome  practices)  inefficiency,  and insincerity are consequences  of ill-equipped, incompetent and dishonest employees (Oghojafor et al, 2010:32; Oxtoby,

2011:17; Obi, 2010:70; Omeiza, 2009:44; Teece, 2002:40;   2003; Padella, 2004: 74; Uba, 2011:81; Shil, 2008:101; Ross, 2003:114; Eghes-Eyienyien 2011:98)

Resultantly, the perennial crisis in the sector have prompted the Central Bank of Nigeria  (CBN)  to  conduct  a  study  on  the  Gap  Analysis  of  the  banking  industry competency to ascertain the educational cum professional qualifications  and cognate experiences  of  the  staff  who  presently  man  the  control/strategic  functions  in  the industry/sector.  The  finding  showed  that  the  banking  crisis  and  failures  emanated largely from skills-gap and dearth of executive capacities. Consequently, CBN set end of November 2014 as deadline for banks to fully  comply with the provisions of the competence  framework,  which  is  intended  to  address  the  skills-gaps  and  lack  of executive  capacity  in  the  sector  (Nwaoha,  2013:24).  This  explains  why  Akinsola (2008:46) lamented that Nigerian banks do not yet have enough human capital to go multi-national. This is because the operations of Mega banks have been encumbered by these challenges. The above deficiencies or inadequacies, however, can be concretely addressed  through the  alignment  of proactive  and industry driven policies  with the competencies development programmes to attract, develop, build and retain a crop of (new  generation  personnel)  diverse  talented,  multi-skilled,  result-oriented,  problem solving, high performing workforce needed to drive Mega bank’s vision and goals.

Since   new   and   emerging   technologies   increasingly   affect   the   volume,

composition and direction of world trade, corporate institutions that are unable to gain access to these new technologies, and successfully absorb them will find  themselves progressively disengaged from the global economy (World Bank: 2006:40; Nazombe,

1995: 60; Oyesile, 2004:98; Toyo, 2000:101; Wokoma and Iheriohanma, 2010:99). The knowledge based economy therefore makes it compellingly necessary for    Corporate Institutions   like   Mega   banks   to   transit   from   traditional   competence   to   more sophisticated skills to retain industrial/sector relevance in the rapidly changing world. It is therefore imperative to develop and empower a new’ generation of bankers with the right  core  competencies   to  address  the   emerging   trends,  realities  and  daunting challenges of the rapidly globalising world. Capacity building as a matter of fact is a very recurring challenge of the industry. Identifying and leveraging on strategic growth opportunities requires a competent human capital who will be able to deliver what the customers want at any point in time (Onasanya, 2010:11). This requires efficient and effective talent management cum development to maintain a competitive advantage and optimize  returns  on  human  assets.  Hence,  there  is  need  for  broader  skills,  strong leadership capabilities, role models and innovative entrepreneurial skills. Fundamental to this vision is the institutionalization of industry driven human capital development

programmes informed by sound and proactive human capital policies. Basically,human capital  policy  is  concerned     with  the  provision  of  framework  for  the  efficient management of the workforce,while  human capital   development   aims at providing seamless     opportunities     for    employees     to:acquire     requisite     skill-sets     and competencies;develop and harness their potentials optimally for total transformation of themselves   and   their   organizations.   Human   capital   development   programmes encompass both on-the-job and of the job training related activities to achieve all round development of the workforce. That is, functional and solution-based education rooted in sound  moral  formation  and  competency-based  training/development  designed  to imbue banking staff with cognitive, psychomotor and affective skills enabling them to be continually relevant for their active participation in the knowledge-based economy.

Human capital development and capacity enhancement programmes should be based  on  job  competency  requirements,   business   needs  and  evolving   business opportunities. The emerging realities require that training intervention be designed to achieve  well-rounded  personnel  that will be properly equipped  to  contend  with the diverse  challenges  of  the  current  and  future  roles  (World  bank,  2002:52;  Thurow,

1996:30). Personnel who will be able to meticulously design, package, and successfully

launch a cocktail of financial products that will stimulate potential customers’ interests. Mega banks should therefore ensure that there are clearly defined and robust policies to drive human capital development  programmes  to make  the  bank’s  human capital a sustainable source of competitive advantage. Central to  Mega banks’ success is their ability to  attract, develop,  and retain a crop of the  best performing  industry talent available in the global market. They should also endeavour to deploy mechanisms that would continually elevate and equip the  best performers, and attract new pockets of specialized expertise where required.

Basically, efficient management of human capital presupposes an understanding of   when   environmental   change   implies   a   need   for    organizational    change. Organizational change entails alteration to the organization’s purpose, culture, structure and processes in response to existing or  anticipated changes.   Strategic management therefore  is  concerned  with  identifying  and  embedding  in  the  organization  those changes that will ensure the long term survival of the organization (Ezigbo, 2007:114). Unarguably,  sound  human  capital  development  programme  ensures  organization’s survival,  sustainability  and  success.    Organizations  should  therefore  be  proactive- oriented  in  this  regard  in  order  to  stay  competitive,  and  to  provide  employees

opportunities for enriched careers and personal transformation (Heller, 2008:7). Hence the need for robust policies to drive human capital development practices.

Many organizations are currently facing innumerable challenges which result in re-structuring,   consolidation,   corporate   marriage,   down-sizing,   right-sizing,   re- engineering etc.  In all these the employees bear the brunt as they are the group worst hit  (Adam,  2005:20;  Imala,  2005:91;  Kwan,  2004:12   Lemo,  2005:121;  Nnanna,

2004:80; Tadesse, 2005:44; Adeyemi, 2008:87). For instance the consolidation exercise of 2005 in the banking sector and the on-going reforms present a typical scenario.  The transformational  changes  made  the  mega  banks  realize  the  missing  link  in  their operations – skills-gaps and skills mismatch, and made the employees appreciate the need for constant re-tooling in order to be relevant at any point in time.   The radical changes have mandated the executives  to make  paradigm shift from the former arm chair/irresponsible  banking practice to  innovative  banking aimed  at strategically  re- positioning the banks to propel  meaningful  development  and to effectively contend with global competitiveness (Ifeanacho 2008:40).  Mega Banks should realize that they do not need “crowd” rather, what they need to stay afloat is brain powered personnel- qualitative,   rightly   skilled  and  multi  talented  personnel.   Many  organizations   in appreciation of this fact now place high premium on their human capital and the need to help them develop their potentials for optimal performance.

Efficient  management  of  human  capital  is  reinforced  by  a  sound/dynamic human capital policy because policy takes central place in management process, drives execution of programmes and ensures realization of set goals. If the policy is oriented towards qualitative human capital, understandably it will lead to high productivity and efficient   service   delivery.   This   is  because   if  employees   are   sound   they  will meticulously  package  good  financial  products  that  will  be  marketed  to  banking customers and  investing publics.   When these types of financial products are put in place, they  enable  the bank to stay competitive  in its environment.    Their  services equally  distinguish them among other banks as something that make them tick and unique  and  definitely  help  them  carve  a  niche  for  themselves.  This  explains  why organizations  should  attach  importance  to  human  capacity  building  because  their human capital is the “brain box” of the organization.   At the corporate level, there is need  for  qualified,   rightly  skilled   and  properly   equipped   personnel,   to  ensure formulation of relevant corporate policies that will stand the test of time especially in the area of management of human capital for the organization to stay competitive at all

times.  In other  words,  it is  imperative  that organizations  that  are  open to  change, aspiring to, or working towards situating their business within a global template should emphasize  development  of rightly  skilled,  qualitative  human  capital (brain powers) through  sound  human  capital  policies,  to  transform   their  management   process, empower  employees  to perform and drive the  growth  of their organizations  (Olutu,

2010:31). When technology is changing, enterprises especially service industries must

invest in human capital training to remain competitive (Teece, 2002:256-281).  They need to develop various job training programmes to be globally  competitive.  These programmes  must  be  flexible  and  able  to  adapt  quickly  to  new  skills  demands generated by changing markets and technologies (Dahlman and Utz, 2012:40).

The  role  of  sound  human  capital  policies  is  evolving  with  the  change  in competitive market environment and the realization that sound policies are critical and strategic to the building of “brain powers” that are central to survival, sustainability and success of the banking sector (Berneth, 2004:151). Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their  competitors  may be outplaying  them  in  the  strategic  employment  of their human  capital  (Nonaka  and  Takeuchi,  2001:27;  Ohuabunwa;  1999:39).  With  the increase  in  competition,   locally  and   globally,   Mega  banks  must  become  more adaptable,   resilient,   agile,    and   customer-focused    to   succeed.   Human   capital management   must   be   business   driven   with   a   thorough   understanding   of   the organization’s  big  picture to be able to influence  key decisions  and policies. Sound policies are critical/strategic to human capital retention, talents developments as well as promotion of desirable values, ethics, beliefs, and spirituality within the organization (Diagne and Ossebi, 2006:120). In fact promotion of these variables is the corner stone of sound human capital formation, which is pivotal to good corporate governance in the banking sector. This is because development is meant  to enhance both competencies and  character/qualities;  competence  without  character  formation  is  tantamount  to enthronement  of corporate  mismanagement; while  character  without  competence  is void and amount to enthronement of mediocrity. Hence efficiency requires emphasis on both core competencies and requisite qualities. Sound policies are sine-qua-non for the efficient  administration  of  organizations,  especially  profit-oriented  enterprises  like banking Institutions because they provide framework that checkmate  irrationalities in the  engagement  and  development  of  the  workforce  and  their  negative  attendant consequences.  Sound human capital policies would help Mega banks achieve stability,

consistency, predictability, sanity and consequently survival, sustainability and success in  their  operational  activities.  A  thorough  understanding  of  corporate  policies  as administrative instruments for efficient management of human capital is a panacea for organizational survival and sustainability.

From the foregoing, it is imperative that banking personnel be rationally hired, properly equipped, conscientiously motivated and mobilized to galvanize and harness their  potentials  and  channel  them  for  efficient  service  delivery  with  a  view  to strategically re-positioning the Mega banks for global competiveness and invariably for future corporate marriage with foreign banks. This therefore underscores the need for Mega Banks to formulate sound human  capital policies that focus on sound hiring, right-skilling,   up-skilling,   re-skilling,   to  bridge  the  skills-gap   and  redress  skill mismatch that have been the bane of the banking sector after the 2005 consolidation exercise cum reforms, and the on-going reforms of the present governor of the Central Bank. These burning issues actually motivated the researcher to undertake the present study.

1.2      Statement of the Problem

Undoubtedly, the consolidation exercise and reforms of 2005 brought to the fore a serious  lacuna  in the banking  operations.  The lacunae-  skills-gaps  and  dearth of executive  capacities  have been the bane of Mega  Banks.  The sector  contends  with daunting challenges because of lack of proactive and sound human capital development practices which resulted in growing disconnect between the workforce and the work, and consequently poor performance of most of the Mega banks. Regrettably, the dearth of rightly skilled and qualitative personnel to drive  the evolving or emerging global changes to grapple with the post consolidation challenges and the on-going reforms is a topical and one of the most burning issues in the financial sector.  As a matter of fact, many banks are groaning under the burden of ill-equipped or incompetent personnel. A situation where these banks engage graduates of history, geography, biology, micro- biology etc with hope of training them in banking operations is a height of irrationality. Nothing impedes the  growth of an organization as incompetent workforce or putting square  pegs  in  round  holes.  The  concept  of  rationality  requires  engagement  of personnel with the requisite skills and attributes that match both the (banking needs) business needs and the organizational culture. The requirements of the job  transcend the knowledge of the job.  Hence, where the prospective employees possess the right

knowledge of the job, but their personality characteristics, work ethics and behavioural attitudes are not in synch with the corporate culture then the candidates are not fit for the jobs.  There is need to connect the dots between strategic assessment of skills set to meet business goals, and the skills needed to perform the job. This will help to ensure that  the  potentials  of  the  hired  personnel  will  be  amenable  for  further  and  future development in core banking competencies. The irrationality therefore is an indication that  the  human  capital  policies  especially  in the  hiring (recruitment  and  selection) process are not sound and will therefore not stand the test of time.  Incontrovertibly, where  human capital  development  programmes  are driven by unsound  policies,  the result is ill-equipped, intellectually vacuous, incompetent and de-motivated personnel; workforce-devoid  of requisite market-driven  and knowledge-based  skills;  employees that  are  totally  visionless  and  without  requisite  skill-mixes  to  drive  Mega  Bank’s operations locally and globally.

This  therefore  underscores  the  need  to  formulate  policies  that  would  be responsive to dynamics of the financial sector to achieve global competitiveness and invariably ensure sustainability of the Mega Banks.  This is because for any corporate organization to operate efficiently and propel  meaningful development,  it must have well  adjusted,  qualitative,   rightly   skilled,  competent,   adequately  motivated   and committed human capital. Sound human capital policies provide enabling framework for producing  intellectuals  (knowledge  and ideas driven personnel)  that would help mega  banks  perform  their  traditional  banking  functions  and  empower  the  critical sectors for real transformation of the economy.  To actualize these corporate objectives, human capital policies should be sensitive to the mistakes of yester year’s bankers to avoid pitfalls and to adapt to changing situations to achieve warranted transformation in their  operations.  In  effect  knowledge  and  experience  of  yester  years’  innovations should form spring board for today’s improvement.

Notably, investigations conducted by the Central Bank of Nigeria (CBN) on the gap analysis of the banking industry competency disclosed that the recurring financial crisis in the banking industry resulted from skills-gap and dearth of executive capacities in the  sector.  The skills-gap  manifested  in the  lack  of  indepth  knowledge  of core banking functions and poor understanding  of banking  regulations,  unethical conduct and  unprofessional   practice;   knowledge   gap   in   financial   markets   and  treasury management.Furthermore,numerous  studies   showed  that Banks in the industrialized and  emerging    economies  have  been  making  giant  strides  in the  global   economy

because  their  robust  human  development   programmes   are  driven   by   proactive policies.Resultantly,they were able to  build and sustain critical mass of highly    skilled and globally competitiveworkforce.Dishearteningly,in Nigeria,although many   studies have been conducted in  training  and development related areas,none has actually been conducted to critically assess the implication  of human policies as drivers of human capital development  programmes  of Mega  Banks.Hence,the   issue of skills-gap  and dearth  of  executive   capacities   that   have   continued   to   charactize   the   banking sector.Studies  show  that  Banks  in  the  western  world  have  critical  mass  of  highly skilled and  ICT savvy bankers  that are quite knowledgeable in financial markets,credit analysis,risk amd treasury  management.There is paucity of empirical work of what the position is in Nigeria.  The observed lapses are actually indications that their human capital development programmes are not driven by proactive or skilled-based policies. It is in recognition of the  consequences of this missing link and in appreciation that robust  development  programmes  informed  by  proactive  and  sound  human  capital policies  will  help  Mega  banks  to  effectively  and  efficiently  perform  their  core traditional banking functions and most importantly brace up to the daunting challenges of the  global  economy that  the study focuses  on the  assessment  of  human  capital policies as drivers of human capital development   programmes of Mega Banks in the South-East, Nigeria.

1.3         Objectives of the Study

The broad objective of the study is to assess human capital policies as drivers of human capital development programmes of Mega Banks in the South-East, Nigeria. The specific objectives are:

(1)       To  ascertain  the  extent  skill-development  policy  engenders  acquisition  of requisite skills through competency-based training programmes.

(2)       To determine the extent on-the-job training policy engenders acquisition and development   of   diverse   talents   and   multi-skills   through   job-rotation programmes.

(3)       To establish the degree to which in-service training policy influences building and sustaining of a critical mass of highly skilled and IT savvy workforce.

(4)       To  determine  the  extent  Mega  Banks’  training  policies  contend  with  the challenges of globalization.

(5)       To   examine   the   extent   to   which   in-house   training   policy   influences internalization   of  acceptable   bank  ethics   and   values   through   properly articulated orientation programmes?

(6)       To assess the degree to which continuous professional development  (CPD) Policy  influences   building  and  development   of  flexible,   adaptable  and resilient workforce through capacity building programmes.

1.4      Research Questions

(1)       To  what  extent  does  skill-development  policy  engender  acquisition  of requisite skills through competency-based training programmes.?

(2)       To what extent  does on-the-job  training policy engender  acquisition  and development   of  diverse   talents  and   multi-skills   through   job   rotation programmes.?

(3)       To  what  extent  does  in-service  training  policy  influence  building  and sustaining of a critical mass of highly skilled and IT savvy workforce?.

(4)       To  what  extent  do  Mega  Banks’  training  policies  contend  with   the

challenges of globalization.?

(5)       To what extent does the in-house training policy influence internalization of acceptable bank ethics and values through properly articulated  orientation programmes?

(6)       To  what extent  does  continuous  professional  development  (CPD)  policy influence  building  and  development  of  flexible,  adaptable  and  resilient workforce through capacity building programmes?

1.5      Research Hypotheses

(1)       Skill-development   policy  (SDP)  significantly  engenders  acquisition   of requisite skills through competency-based training programmes.

(2)       On-the-job    training    policy   significantly    engenders    acquisition    and development of diverse talents and multi-skills through properly articulated orientation programmes.

(3)       In-service-training policy significantly influences building and sustaining of

a   critical   mass   of   highly   skilled   and   IT-savvy   workforce   training programme.

(4)       Mega banks’ training policies significantly contend with the challenges of globalization.

(5)       In-house    training    policy   significantly    influences    internalization    of acceptable bank ethics and values through proeprly articulated  orientation programmes.

(6)       Continuous professional Development (CPD) policy significantly influences building  and  development  of  flexible,  adaptable  and  resilient  workforce through capacity building programmes.

1.6      Significance of the Study

Broadly speaking the benefits of this study are numerous. Firstly, it would help the Mega Banks to gain better insight into the implications of sound corporate policies on the development and building of their human capital, and invariably on the corporate performance.  Hence  they  will  see  the  rationale  for  human  capital  development programmes being driven by human capital policies that stand the test of time.

The findings  of the  study will serve  as  good  reference  materials  for  future researchers who will use the study as a spring board in conducting theirs. To this end the study will also be of immense help to educational institutions because it would help them  appreciate  the  need  to  restructure  their  educational  systems,  to  make  them functional  and  solution  (instead  of  subject)  centred,  aligning  their  curriculum  and course  contents  with the  industry skill demands,  thereby producing  graduates  with employable skills – “brain powers”, knowledge worker, graduates who can think out of box to provide innovative  and creative  solutions  to problems;  Strategic  and critical thinkers  who  can  spot  opportunities,  mobilize  and  deploy  resources  to  tap  such opportunities optimally.

The study will also be of tremendous benefits to Mega Banks in particular and to the banking and financial sector in general because it will help them appreciate the role of properly skilled personnel in the attainment of operational efficiency. This will enable them design their training and development programmes to be industry driven to ensure that their workforce is imbued with the requisite skills, core competencies, and capabilities at any point in time, to forestall the unpleasant experiences of skills – gap and skills mismatch which have actually ruined many banks. It will also help the Mega banks to see the need to design their programmes to emphasize enhancement of both competencies and character  building, so as to ensure that their personnel imbibe the right values, norms,  ethics and other positive attitudes/dispositions  that will help  to eschew  or  shun  sharp  practices,  self-aggradisements,  embezzlement,  unwholesome

practices,  corporate mismanagement,  corruption and other undesirable  practices  that resulted in yester year’s bank distress or failure. The study will also help Mega banks strive  to  evolve  regular  capacity  building  programmes  with  a  view  to  producing competent   personnel   whose   intellectual   capital  and   brainstorming   will  help   to strategically reposition the banks for global competitiveness. In summary therefore the study will be beneficial to the following groups:

(1)       The shareholders of the mega banks who would want to achieve the objective of the maximization of their wealth with robust human capital policies.

(2)       Members  of  the  Boards  of  Directors  of  the  Mega  Banks  who  formulate corporate policies for driving Human Capital Development Programmes.

(3)       Managers, Supervisors and Staff of the Mega Banks who implement the policies formulated by the members of the Boards of Directors of the Mega Banks.

(4)       Stakeholders,  Contractors,  Consultants,  Suppliers,  Tax  Collectors  who  want their money paid when they fall due.

(5)       Present  and potential  customers  of the Mega  Banks  who  want policies  that would lead to rendering good quality services.

1.7      Scope of the Study

The  focus  of  the  study  is to  examine  the  effect  of aligning  human  capital policies  with the  Human  Capital  Development  programmes  of Mega  Banks  in the South-East of Nigeria.

The geographical  scope consists of Abia, Anambra,  Ebonyi, Enugu  and  Imo States of Nigeria. The time scope is from 2005-2013. It is a fact that these banks have their Head quarters at Abuja, the study will, however, focus on the banks in the South- East geopolitical zone since there is uniformity in the human capital policies and hence the human capital development programmes of the Mega Banks. In other words same human capital policies drive the human capital  development  programmes  of all the branches regardless of location. The study therefore covers ten (10) randomly selected Mega Banks in the states in the South East of Nigeria.

The banks to be studied are ten in number namely: Union Bank of Nigeria Plc, United Bank for Africa, Zenith Bank Plc, Access Bank of Nigeria Plc, Fidelity Bank Plc, Stanbic Ibtc Bank, Diamond Bank Plc, Skye Bank Plc, Eco Bank Nigeria Plc, First Bank Plc.The banks were chosen due to their wide branch  network and their strong capital base. The banks were selected using simple random sampling technique.

1.8. Limitations of The Study

The study is limited by time constraints and un-co-operative  attitudes of  the respondents.The  researcher’s  official  assignment  and  its  related  activities  actually posed daunting challenges to the administration   of questionnaire and  conduct of the oral interview.Furthermore,the  anti-research  attitude  of the  respondents  was another issue we contended with during the course of the study.Some of the respondents were reluctant to provide us with the requisite data.Some claim that such data are classified information while some of them made themselves inaccessible.       .

1.9      PROFILES OF THE TEN SELECTED MEGA BANKS

1.9.1    Union Bank of Nigeria Plc.

Union Bank of Nigeria Plc was established in 1917 as Colonial Bank with its first  branch  in  Lagos.  In 1925,  Barclays  Bank  acquired  the  Colonial  Bank,  which resulted in the change of the Banks name to Barclays Bank. Following the enactment of the Companies Act 1968 and the legal requirement  for all foreign  subsidiaries  to be incorporated  locally,  Barclays  Bank in 1969  was incorporated  as Barclays  Bank of Nigeria Limited. The ownership structure of Barclays Bank remained un-changed until

1971 when 8.33% of the Bank’s shares were offered to Nigerians. In the same year, the Bank was listed on the Nigeria Stock Exchange. As a result of the Nigeria Enterprises Promotion of 1972, the Federal Government of Nigeria acquired 51.67% of the Bank’s shares, which left Barclays Bank Plc, London with only 40%. By the enactment of the

1972  and  1977  Nigeria  Enterprises  Promotion  Acts,  Barclays  Bank  International

disposed its shareholding to Nigeria in 1979. To reflect the new ownership structure and in compliance with the Companies and Allied Matters Act of 1990, it assumed the name Union Bank of Nigeria Plc. In consonance with the Governments of privatisation and commercialization of public enterprises, the Federal Government in 1993 sold its shares in  Union  Bank  to  private  individuals.  Thus,  Union  Bank  became  fully  owned  by Nigerian citizens and organizations. The Bank has 379 branches across the country. Vision:

To be the best of the best to bank on.

Mission:

To be the foremost financial institution with the most satisfied customers.

1.9.2    United Bank Africa Plc.

UBA was incorporated  in 1961 to take over the business of British &  French Banking Limited (BFB). United Bank of Africa listed its shares on the Nigeria’s stock Exchange  in 1970. Today’s United Bank for Africa Plc (UBA) is  the product of the

merger of Nigeria’s third (3rd) and fifth (5th) largest banks, namely the old United Bank

for  Africa  and  the  erstwhile  Standard  Trust  Bank  Plc  (STB)  respectively,  and  a subsequent acquisition of the erstwhile Continental Trust Bank Limited (CTB).

Vision:

To be the undisputed leading and dominant financial services institution in Africa.

Mission:

To  be  a  role  model  for  African  businesses  by  creating  superior  value  for  all  our stakeholders abiding by the utmost professional and ethical standards, and by building an enduring Institution.

1.9.3    Zenith Bank Plc:

The bank was incorporated  as Zenith International  Bank Limited  on 30  May

1990, a private limited liability company and was licensed to carry on the business of banking in June 1990. The name of the bank was changed to Zenith Bank Plc on 20

May 2004 to reflect its status as a public limited liability company. The bank’s shares were listed on the Nigerian Stock Exchange on 21 October 2004 following  a highly successful Initial Public Offering (IPO). The bank has branches in the Gambia, Ghana, Sierra Leone, South Africa, and the United Kingdom.

Vision:

To build the Zenith Brand into a reputable international financial institution recognized for  innovation,  superior  customer  service  and  performance  while  creating  premium value for all stakeholders.

Mission:

Establish a presence in all major economic and financial centres in Nigeria, Africa and indeed all over the world; creating premium value for all stakeholders.

1.9.4    Access Bank:

Access Bank Plc, a leading African financial services group headquartered  in Nigeria   was   incorporated   in  1989   as  a  private   limited   liability   company   and subsequently listed on the Nigerian Stock Exchange in 1998. The Bank was licensed to carry out commercial Banking services providing a comprehensive bouquet of financial

and non-financial services to individual and corporate customers in the major sectors of the Nigerian and sub-Saharan African economy.  The Bank subsidiaries  in 9  African countries. Its shares were listed on the Nigerian Stock Exchange in 1998.

Vision:

To provide  the  highest  quality of relationship  management  to  the bank’s  corporate

clients while serving as the anchor for the value chain model.

Mission:

To  transform   the   institutional   Banking   Division   into   a  model   for   relationship management

1.9.5    Fidelity Bank:

Fidelity Bank Plc began operations  in 1988 as a merchant  bank.  In 1999,  it converted to commercial banking and then became a universal bank in February 2001. The current  enlarged  Fidelity  Bank  is a result  of the merger  with  the  former  FSB International  Bank  Plc  and  Manny  Bank  Plc  (under  the  Fidelity  brand  name)  in December 2005. The Bank was listed on the Nigerian stock  Exchange  on 17th  May,

2005.

Vision:

To be number one in every market we serve and for every branded product we offer.

Mission:

To make financial services easy and accessible.

1.9.6    Stanbic IBTC Bank Plc:

Stanbic IBTC Bank was incorporated as investment Banking & Trust company Plc (IBTC) on 2nd  February, 1989. IBTC merges with chartered Bank Plc and Regent Bank Plc on 19 December. 2005 and changed its name to IBTC Chartered Bank Plc on

24th  September, 2007. The bank merged with Stanbic Bank Nigeria Limited, a wholly

owned  subsidiary of Stanbic African Holding Ltd (SAHL).  Stanbic  African  Holding Limited (SAHL), a subsidiary of Standard Bank group, in accordance with scheme of merger   acquired   majority  shareholder   (50.75%)   in  the  bank   whose   name  was subsequently charged to Stanbic IBTC Bank Plc. The Bank’s shares were listed on the Nigerian Exchange in 2005.

Vision:

To be the leading end-to-end  financial  solutions  provider  in Nigeria  through innovative and customer focused people.

Mission:

Building  for the future with our range of products  and services  at the  heart of  our strategy.

1.9.7    Diamond Bank Plc:

Diamond Bank Plc began as a private limited liability company on March 21,

1991  (the  company  was  incorporated  on  December  20,  1990).  Ten  years  later,  in February 2001, it became a universal bank. Diamond Bank became a public  Limited company.  In  May  2005,  the  Bank  was  listed  on  The  Nigerian  Stock  Exchange. Moreover, in January 2008, Diamond Bank’s Global Depositary Receipts was listed on the Professional Securities Market of the London Stock Exchange.  The first bank in Africa to record that feat.

Vision:

To be a leading financial institution, with the best people, providing unequalled customer experience and delivering superior shareholder value.

Mission:

We  will  consistently  be  providing  value-adding  solutions  through  professional  and highly  motivated  people,  delivering  excellent  financial  performance  in  all  markets where we operate.

1.9.8    Skye Bank Plc:

The origin  of Skye  Bank dated  back to  1989  when  Prudent  Bank Plc.  was incorporated as a limited liability company. In 1990, the bank was issued a license as merchant bank. That same year, it rebranded  as Prudent Merchant  Bank  Limited. In

2006, Prudent Merchant Bank Limited merged with four other banks to form Skye Bank Plc.  It  is  quoted   on  the  Nigerian   Stock  Exchange   with  over  450,000   diverse shareholders.

Vision:

To continuously challenge ourselves to provide limitless possibilities to our Customers.

MISSION:

To provide  innovative  and  convenient  banking  services  by a dedicated  team  to  the benefit of our stakeholders.

1.9.9    Eco Bank:

Eco bank, a public limited liability company, was established as a bank holding company in 1985 under a private sector initiative spearheaded by the Federation of West African  Chambers  of  Commerce  and  Industry  with  the  support  of  the  Economic Community  of  West  African  States  (ECOWAS).  In  October  1985,  Eco  bank  was incorporated with an authorised capital of US$100 million. The initial paid up capital of US$32  million  was  raised  from  over  1,500  individuals  and  institutions  from  West African countries.  The largest shareholder  was the ECOWAS Fund for Cooperation, compensation  and Development  (ECOWAS  Fund),  the development  finance  arm of ECOWAS. A   Headquarters’  Agreement was signed with the government of Togo in

1985 which granted Eco Bank the status of an international organisation with the rights and privileges necessary for it to operate as a regional institution, including the status of a non-resident financial institution, Eco bank has two specialized subsidiaries: Ecobank Development  Corporation  (EDC) and   (eProcess)  International  (eProcess).  Eco Bank Development  Corporation  (EDC) was  incorporated  with a broad mandate to develop Eco-Bank’s investment banking and advisory businesses throughout the countries where Ecobank operates. EDC  operates brokerage  houses on all 3 stock exchanges  in West Africa and  has  obtained  licences  to operate on the two  stock exchanges  in Central Africa: the Douala Stock Exchange in Cameroon and the Libreville Exchange in Gabon. The   Specialized   subsidiary   companies   of   Ecobank   are   numerous.   Eco   Bank Transnational,  is a pan-African banking conglomerate,  with banking operations in 30

African countries. It is the leading independent regional banking group in West Africa and Central Africa, serving wholesale and retail customers. It also maintains subsidiaries in Eastern Africa, as well as in Southern Africa: Eco bank has representative offices in Angola,  Beijing,  Dubai, France. South Africa and the  United  Kingdom.  The Bank’s

shares were listed on the Nigerian Exchange on 24th April, 2006.

Vision:

To build a world class Pan African Bank and to contribute to the economic and financial integration of Africa.

Mission:

Provide our retail and wholesale customers with convenient, accessible and reliable financial products and services.

1.9.10      First Bank Plc:

First Bank was the first bank to be established  in West Africa and hence  the oldest financial institution in Nigeria.  The bank was incorporated as a limited liability company in March 1894 and was listed on The Nigerian Stock Exchange in March l97l. Following the Central Bank of Nigeria’s (“CBN”), induced industry- wide consolidation in 2005, the bank acquired its merchant banking subsidiary,  FBN Merchant Bankers) Limited and MBC International Bank Limited.

Vision:

Be the clear leader and Nigeria’s Bank of first choice.

MISSION:

Remain True to our Name by providing the Best financial services possible.

1.10     Operational Definitions of Terms

For  the  purpose  of  clarity  and  unimpeded  comprehension,   the   following underlisted terms are conceptually clarified and contextualized.

Brain-powers: They are individuals or intellectuals that possess critical, analytical and problem solving skills; intellectuals who are strategic and critical thinkers who generate ideas  that  add  values  to  the  corporate  objective.  They  equally  provide  innovative solutions to any issue.

Brain-storming:  This involves  exchange  of ideas or views  among members  of  an organization  or experts from diverse fields of specialization  in order to  provide far- reaching solutions to an identified problem(s).

Cross  Border  Skills or Cross  border  international  Capital  or Cross  boundary knowledge: This relates to the possession or acquisition of requisite capabilities that would  put  an  employee  in  a  vantage  position  to  excel  in  international  business operations,   that  is,  capabilities   that  are  requisite   for   operating   successfully   in international business arena.

Dynamic or high order capabilities:  Capabilities with long term perspective. Firm’s ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environment.

Human Capital Accumulation: This relates to building and maintaining steady flow (reservoir)  of  qualitative  and  competent  human  capital  whose  insatiable  quest  for research cum creativity results in continual technological innovations.

Human Capacity Building is designed to imbue the employees with requisite  skills and competences.

Human Capital Policies – These are general statements of principle that guide  and clarify  management’s  decisions  on  human  capital  related  issues.  Policies  provide framework for the conduct of organizational  activities,  to eschew  irrationalities  and ensure stability and consistency in managerial actions.

Intellectually Barren: These are employees that are devoid of requisite competences, innovative and creative abilities or talents. They are completely visionless.

Job Mismatch: This concerns assigning responsibility or task that does not relate to employees’ areas of competence or specialization.

Mega Banks: Former Commercial banks are presently referred to as Mega Banks to highlight   the   fact   that   they   have   been   strategically   repositioned   through   the consolidation exercise and reform of (2005) which shored up their capital base to the minimum of N25bn and provided operational framework to ensure that they engage in real banking activities  that would  impact positively or  meaningfully  on the  critical sectors of the economy and ultimately propel development.

Ordinary or Zero Level Capabilities: This refers to those capabilities that are short term oriented or with short term perspective.

Re-Skilling or retooling: This relates to constant retraining of employees to get them adequately equipped with a view to being continually competitive locally and globally.

Rightly Skilled: This has to do with possession of skills and competencies  that  are relevant to employee’s job related activities.

Staff Poaching: A situation where an organization attracts its competitor’s staff with enhanced and attractive remuneration pacgake.

Skills-gap: This results from the organisation’s inability to match as closely as possible employees’     competences,     skills    and    qualifications     with     job/organizational requirements.

Thinking out of box: This has to do with the possession of problem solving  skills which enables employees to provide innovative and creative solutions to problems and organizational challenges.Up-skilling: This relates to continual increase and enhancement of employee’s skills or capabilities and other desirable attributes that would help him in contending with the exigencies of his job as well global challenges.

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