The Need for Effective Management of Organizational Policies and Procedures

The term, the need for effective management of organizational policies and procedure in Nigeria business has been variously defined by various people overtime. Its complexity is such that it carries a number of acceptable meanings. (it can therefore be applied in different way with its meanings discernable from content.Macfarl (1974) defined the need for effective management of organizational policies and procedure in Nigeria business as the process which managers create to direct maintain and operate purposive organization of business through systematic co-ordinated and co-operative of human effort.

It is also the process of getting things done and equally the process of utilization on resources in relation to attainment of organizational goal and objective especially in business environment from the above it can be understood that the process of the need fro effective management of organizational policies and procedure in business is deeply rooted in the interaction of people at work that is in business operation. The need for effective management of organizaiton policies is primarily a marital activity combined with the work of planning organizing and controlling the activities of an organization in business operation for the accomplishment of certain designated objective (Ejiofor P)

THE NEED FOR EFFECTIVE MANAGEMENT OF ORGANIZAITON FUNCTIONS

The function of effective manager in business operation includes planning organizing motivation and controlling.

PLANNING: This is the first major function which guided with the need for effective management of that which is been effective through planning objective are developed for such level of the business in the organizaiton as well as way to achieve these objective examples of plans that help to accomplish objective are strategies policies procedure method and budgets

All effective managers in busyness organization engage in panning. Nevertheless the scope and time impact of the plan carry according to the level of each manager since it says that the higher one is in any business organization the broader the scope of planning and the longer the time impact.

ORGANIZATION: Organizing is a fundamental function for all effective managers in implementing business activities. It involves division of works among departments and individuals. As work is assigned to each person in business operation one is given commensurate authority to its jobs and is held accountable for results or the level of output. Organizing functions encompasses change in duties rearrangement of workflow or grant flow or grant of more authority to an employee. It is this an ongoing process for effective managers implementation of duties.

MOTIVATING: The need for effective management of organizational policies and procedure in Nigeria business involving working with true and active partners. Effective managers must therefore create condition that encourage employees to do their job well and this goes with external incentives and this is what motivation is all about. It provides rewards such as pay increase praise and promotion. It also creates condition so that employee can get satisfaction for accomplishing a challenge task

CONTROLLING: This competes the loop of effective management functions. It evaluate the result of activities compares then against predetermined objectives and takes corrective action were necessary and effective management should be taken also for proper flow of business.

THE NEED FOR EFFECTIVE CONTROL OF ORGANIZATIONAL POLICIES AND PROCEDURE IN NIGERIA BUSINESS.

Effective controlling is concerned with the following:

Making necessary corrective measure where events have deviated or are expected to deviate from the plans (Hick, H.C & Gullet C.B)
Comparing the out some process and the need fro effective implementation of workforce in business operation.

Planning is pre-requisite for effective controlling with out planning understanding of desired performance will be futile. Effective controlling is important for obvious reason. Firstly the need for effective management of organizational policies and procedures in Nigeria business and industrial objective are usually different. For instance the objective of a business to maximize profit and that of a is to maximize income. These objective are not identical and consequently controlling is needed to reconcile them and ensure that members work towards the organizational policies and procedure in Nigeria business and to enable them accomplish their objective.

Secondary he need for effective controlling is necessary because there is always a delay between the time policies and procedure that are formulated by the top mangers to relief subordinates of the necessity of re –thinking the factors upon which he policies was based.

Thirdly the need for effective controlling provide adequate training facilities to enable the employees lean how do their jobs effectively through the need fro effective management of organizational policies and procedure especially in business operation.

PROFIT OF UNION BANK

The Nigeria institution is very vibrant and highly competitive. It consists of 105 viable commercial and merchant banks which are privately owned with a total of 2, 400 branches and 5 development banks such as NBC, NIDB, PBN and FMBAN owned by the government. There are also about 200 registered non-bank finance house of various sizes. Part of the structural adjustment programme (SAP) introduced in 1986 was the expansion and diffusion of the banking and financial institution. By 1992 the banking sector had grown to 67 commercial bank 55 merchant banks 45 primary mortgage institution 228 branches of the people banks 618 finance companies (48 fully licensed by the CBN) 401community banks and specialized banks. By the mil 1990’s there was endemic distress in the financial system which led eventually to collapse of many of the institutions in the industry. Many commercial and merchant liquidated as at January 16 1998. but union bank of Nigeria Plc survived it. A Nigeria at the operational policy of union bank Nigeria Plc Enugu revealed that the need for effective management of positive type. Even through that there are some risk in embodying such rule and regulations lines in their banking system such as deposit product, lending lines in their banking system such as base product and technology. Therefore the management has helped them to accept the risk job of greater mobilization of saving from the surplus units and channeling them to the deficit productive units of the economy and to ensure that no unable project is frustrated due to lack of fund and greater facilitation within the economy there still problem resulting is such management of which union bank are complaining of . The need for effective management of organizational policies and procedure in the management of union bank of Nigeria Plc also covers limits of permissible business risk concentration capital and liquidity adequacy and statutory returns the monetary aspect of regulatory includes control over loading generally structure of leading interest rates reserve requirement and foreign change there are also regulation covering advertising staffing loans to directors and inside dealing supervision is employed to ensure effective management and control.

Due to the level four development these control have been said to be unwisely and the system cover regulation with too little supervision and control the criticisms let to gradual deregulation in 1984 and was subsequently accelerated with adopted of the structural adjustment programmes (SAP) in July 1986. The programme was designed to give more room for the operation of free market forces given financial institution more direction to their operations and stimulate competitions in the financial system as a whole.

UNION BANK OPERATIONAL RULES AND REGULATION AND RESULT

The foregoing analysis form introduction of the study to the point is an evidence of the vapid growth of commercial banking sub sector in Nigeria particular since the introduction of SAP. That is however not proportionate with requirement of variety and quality of service it lenders. Prior to the introduction of SAP its growth has been managed within a framework of a light and rigid regulatory philosophy

Arinze (1989) opines that SAP in effect sparked off the up surge in the number of commercial banks made possible by the programme attendant to the deregulation of interest of the economy leading to the free market determination of interest rate . thus the aggressive competition of survived.

In union bank of Nigeria PLC 1991 to 2004 annual report and account the recent development in the financial sector from the central bank of Nigeria during the year 1991 to 2004 were stated as:

Licensing of new commercial and merchant bank licensing of more because de change- the restricting of people banks into a commercial bank opening of many community bank and for the first time licensing of some primary mortgage financial institution
Continues use of stabilization by the bank (central ban) to regulate excess liquidity within the banking system.
The petting of interest rates during the year
The introduction of new account standards and prudential guideline for lending by loans which come into effect in November1996.
The vesting of the medium capital requirement of commercial and merchant banks it N50 million and N40million respectively.

The impact of the development despite noticeable competition dynamism and innovations among the entire industry in thinking out of the market shaves of the older bank which union bank belong to secondary so many of the institutions were forced to the money and capital market to mop-up funds to enhance their operational income.

The greatest of the impact was stipulations of the prudential guideline for leading by banks which immensely after he profitability of 80 many banks. It is not worthy that union bank Plc survived the government interference by their efficient and dynamic management controls which has placed advantageously over bank.

Some of the step adopted by the bank (union) to combat/ fight the above problem include:

The extension of lifeline to many banks
The moderation of interest rates both fro lending and deposits to cultivated banking habit among its present past and intend customers
Intensive training and development of its manpower resources in the bank sector has earned the industrial training institution for practicing banker. This award takes places once in give years
The bank has also adopted the use of modern management technology and they also adopted the modern management technology and the repackaging of its financial product to control the financial market.

These difficult operating conditions not with standing union bank activated 28% growth in the gross income as at September, 1991 against 34.1% in 1990. just a marginal difference of 6.1% despite all odds.

News watch magazine as at 29 July 1992 has it that union bank Nigeria Plc is one of he biggest three bank which had the least problem is facing decaling fortunes as a result of the need for effective management of organizational policies and procedure mainly in the prudential guideline. In 1999 union bank reported in their annual report and account improvement in area of preparation of financial statement which give a turn and fair view of the state of affairs of the company and they comply with the banks and other financial institution decree 1991 and companies and allied matters decree 1990. in doing so they ensure that:

A proper accounting records are maintained
Application accounting standard are followed
Suitable accounting policies, adopted and consistently applied.
Internal control procedure are instituted
Safe guard the assets prevent fraud and other regulative they also contravened some sectors of the bank and other financial institution decree 1991( as amended). In pursuant and allied matter decree No 1 of shareholder and three directors.

The functions of he audit committee are as laid down in section 387 (6) of the companies and allied matters decree No1 of 1990. the bank also provision of the bank and other financial institution decree 1991 all relevant circular issued by the central bank of Nigeria and relevant statement of accounting standard and the companies and allied matters decree 1990

BANKING IN NIGERIA

The Nigeria banking act 1969 describes a banks as any person who carriers on banking business includes a commercial bank an acceptable house discount house and financial institution. The banking amendment act No 3 of 1970 further defines banking business as the business of receiving money from outside sources as deports irrespective of the payment of interest and granting of over draft and loans and acceptance of credits or the purchase and sales of security for account of others in respect of guarantee and other warrantees for other or the effective of transfers and clearing and such other transactions as the minister may on the recommendation of the central bank order published in the federal government gazette designed s banking business. In Nigeria banking services dates back to 1892 when the first commercial banks Africa banking co-operation was established over the year the banking industry has recorded immense proliferation and these banks can now be classified as follows:

The central bank.
The commercial bank
The development bank

THE EFFECTIVE FUNCTIONS OF BANKS GENERALLY

1. THE CENTRAL BANK: The central bank stands at the apex of Nigeria financial system. Is the government. The central bank of Nigeria started operations on 1^st July 1959 and was charged with the following functions:

To act as bankers to the government and others
To advice the government on the monetary matters
To manage government debts.
To issue currency and control money supply
To regulate the financial system of commercial banks
To control foreign reserves
To act as the members of he least resort

2. THE COMMERCIAL BANKS : The commercial bank in Nigeria has structure towards what is obtained in the U.K it is characterized by branch banking system where a single banking company conduct operations at two more places with control usually from a central point. Commercial banks renders service in the following areas:

a. DEPOSIT TAKNING: These are demand deposit with drainable by depositors in person. Interest are payable on the this type of account.

CURRENT ACCOUNT: These are also demand deposits account withdraw able by the use of cheques. Commission are commissions are charge on the customer transaction.

SHORT DEPOSIT: This is time deposit account which attracts withdrawal or else interest is forfeited by customers in lien of notice.

FIXED DEPOSIT: It is also time deposit of an amount fixed for a range of 3-12 month at a specified rate of interest fixed amount has to mature before.

b. LENDING: Commercial banks provide lending facilities to the customers. The banks are required to bend certain proportion of the total deposit subject to the central bank monetary guidelines. They lend by way of:

Loans
Overdraft
Letter of credit
Bill of discount
Use of bounds guarantee an indemnities

c. TRANSFER OF FUND: The bank effect transfer of fund through the following process:

Telegraphic transfer
Mail transfers
Issue of cheques cashing a and drafts

d. SAFE CUSTODY: Customers values like gold bounds share certificates little deed for real property etc. are received and kept by commercial bank for safe custody

e. STATUS REPORT AND ENQUIRES: This is the means by which the bank request for and give the information on the financial position of the customers. it plays an important role in enhancing meaningful commercial transaction locally and internationally.

f. FOREIGN EXCHANGE TRANSACTION: All the licensed banks act as an authorized dealer to the central bank of Nigeria in buying and selling of foreign currencies traveler’s

3. DEVELOPMENT BANK: These are special financial institutions establishment with the ultimate aim of promoting and developing specific area of the national economy.

The Nigeria industries development banks
The Nigeria agricultural and co-operative bank
The federal mortgage banks

Principally the functions of these banks include the following:

Provision of capital
Provision of enterprise (entrepreneurship)
Stimulation of capital markets.

4. THE MERCHANT BANK: These are wholesale banks which specialize in accepting large between deposits and funding medium and long term loan. An example is union bank of Nigeria Plc.

The major function of merchant bank are as follows;

They serve as an important like between local exporters/importers and their foreign counter parts
The help to balance the economy of the country and the movement of funds from surplus units to deficit units through medium and long term lending and loans syndication.
They gave co-operate financial advices on mergers and amalgamation
They also serve as an issuing house offer stock, brokerage offer stock brokerage facilities and provide under writing service.

—-This article is not complete———–This article is not complete————

This article was extracted from a Project Research Work Topic

“THE NEED FOR EFFECTIVE MANAGEMENT OF ORGANIZATIONAL POLICIES AND PROCEDURES

(A CASE STUDY OF UNION BANK OF NIGERIA PLC)”

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