The case study aimed at examining how the said bank motivates its employees and how that affects employees retention. The relevance of the study was that other organizations can borrow from the bank for it has a record of employees retention.
4. Introduction
Motivation can be defined as the action of orienting ones
behavior to a specific goal. One of the most important uses
of motivation is in a company. Organizations employ
workers to perform certain tasks; these workers need to be
motivated in order to perform their tasks with maximum
productivity. To keep employees in the organization for a
long period of time, the process of motivation is once again
responsible. The traditional motivator for a worker is his
salary, but in many cases that isn`t enough. Companies use a
lot innovating tactics to keep their productivity at a
maximum level.
5. Introduction (Cont..)
Kenya's banking industry is growing and expanding
every day with the entry of new firms. Currently, the
industry has more than 43 license commercial banks and a
good number of SACCOS that are offering banking
services. This number of banks indicates clearly the
intense competition that is in Kenya's banking industry.
This competition calls for firms within the industry to
ensure they position themselves competitively.
6. Introduction(Cont..)
To meet customer expectations, the banks need to
have permanent and stable employees who have a deep
understanding of what the customers they serve need.
However, there is the high rate of employee turnover in
some banks that may see some of these banks struggle
to keep up with the competition.
7. Case summary
This case study, therefore, seeks to address the
problem of high rate of labor turnover by examining
what Standard Chartered Bank of Kenya is doing to
ensure a longer stay of employees in the bank so as
other banks can benchmark from them.
In doing so, the case will concentrate on the
motivating factors in the bank that the employees find
attractive.
8. Case Summary (Cont.…)
The case will also consider other factors like the
type of leadership in the bank and the effect the
latter has on employee motivation
Another factor in consideration in this case is the
effectiveness of communication in the bank and if
it affects employees motivation or not.
9. Relevance of the Case
The case is relevant in that it can help banks that
are struggling with a problem of high rate of employees'
turnover solve this problem. Moreover, the case can be
used by human resource managers in enhancing
motivational factors within their organization by putting
into consideration the factors discussed in the case.
10. Profile of Standard Chartered
Bank of Kenya
Below are some of the facts about the bank:
The bank is foreign owned with only 26% local
shareholding
The bank has been in existence in Kenya for more than 100
years having been established in 1911
It has 33 branches countrywide, has 1693 employees, and it
is the fourth largest bank in terms of market share as
indicated by Business Daily Africa
11. The bank has received the following recognitions
It was the first bank to receive ISO 9002 certification
in Kenya
Best Bank, Customer Satisfaction, Think Business
Awards- 2015
ICPSK Champions of Governance Award -2014
Best Foreign Bank in Kenya-EMEAAwards- 2014
12. Best Consumer Internet Bank in Kenya-Global Finance Magazine -
2013
Best Foreign Exchange Bank in Kenya-2013
Overall Winner Corporate Governance Excellence in Financial
Reporting Awards-2013
Indeed, such kind of achievement cannot be attained without
well motivated, committed, and dedicated workforce. Also, this kind of
outstanding performance cannot be realized if employees get employed
and leave within the shortest time possible.
13. Organization Behavior Questions and Practices
Addressed by the Case
Factors that motivate workers at the bank
The type of leadership available in the bank,
supervisor's behavior towards employees and the effects
the latter has on employee motivation
How effective is communication in the bank and if
communication has any impact on employee motivation
14. Theoretical Background
The case is based on the following theories
Frederick Taylor theory of scientific management
management that focuses on wage incentives. Taylor argued
that people are economical beings and that they are only
motivated by money.
Abraham Maslow’s Theory of Hierarchy of Needs that
proses that there exist five levels of needs namely
psychological, safety, social, esteem, and self-actualization. He
noted that low level needs (psychological, security and social)
are catered for by extrinsic motivators whereas esteem and
self-actualization needs are met by intrinsic motivators.
15. Herzberg Two-factor theory that argues that there are two
factors that affect employee motivation namely:
Hygiene factors. The conditions contained here include type of
supervision, pay, company policies, physical working
conditions, relationship with co-workers, and job security.
These conditions are also referred to as extrinsic motivators
as they are not directly related to the type of job. If they lack
in a company, they cause dissatisfaction hence they are also
referred to as dissatisfies. According to Herzberg, these factors
are necessary to ensure that an employee reports to work daily
and performs at minimum level
16. Job Related Factors such as promotional opportunities,
personal growth opportunities, recognition, added
responsibility and achievement. These factors are referred to as
intrinsic motivators as they are directly related to the job
(Work itself) . These factors are also called motivators. These
factors are necessary in providing energizing and directing
effort and behavior above minimum levels.
Self-Determination Theory.
The theory proposes that people prefer to feel they have control
over their actions. Therefore, anything that makes previously
enjoyed task more of an obligation than a freely chosen task will
undermine motivation.
17. Simply put, the theory proposes that organizations should
employ democratic type of leadership and supervision so
as to make employees feel independent, trusted, and
respected so as to motivate them.
The theory implies that extrinsic rewards can improve
intrinsic motivators if the organization uses extrinsic
motivators while allowing employees to control their
behavior. However, if the organization uses extrinsic
rewards coercively, this scenario will lead to
demotivation.
18. Methods of Data Collection
Data was gathered from both primary and
secondary sources. Primary data was obtained through
the administration of questionnaires and direct
interviews with some employees and interns of the firm.
The sample chosen centered on junior and senior
employees of the company. For secondary source,
website was the source used.
19. Findings/Issues being discussed
Factors that motivate employees at the bank
Data collected indicated that various factors motivate
employees in the bank. The factors are stated in the order of
their importance, from the factor viewed as most important
to the least one.
Salary and other fringe benefits
Job security
Training and development opportunities
20. Issues being Discussed (Cont.)
Respect and fair treatment received from superiors
Possibility of future promotional opportunities
Relationship with co-workers and,
Guidance from supervisors
21. Type of leadership present in the bank and
supervisor's behavior
It emerged that in the bank, employees are given a chance
to take part in decision-making on matters affecting them as well
the fact that management takes time to listen to employees ideas.
Employees are also given a chance to take part in assignments
beyond the core of their job which motivate them as this give
them a chance to gain new skills. Employees also cited the
presence of working environment full of trust and openness.
However, employees noted that some supervisors use the
authoritarian type of supervision. This kind of supervision
according to employees was the main demotivating factor.
22. How management and supervisors communicate
with employees
Employees indicated that there existed efficient
and effective communication from the management.
This efficiency in communication enabled the
employees understand the nature of their assignment.
Well understood assignment made employees tackle
their assignment in the right way, resulting in a positive
feedback that is obviously a motivator
(Recognition/praise).
23. Lessons learnt
Monetary benefits motivate most employees. This fact
is clear since employees cited salary and other fringe
benefits as their main motivating factor. This fact is in
agreement with the theory of Scientific Management
that noted that employees are economical beings who
are motivated by money. Due to this tendency by
employees to value money most, employers should
consider using money related benefits as a motivating
and retention factor in their organizations.
24. Lessons Learnt (Cont..)
Besides, factors like job security, training and
development opportunities, respect and fair treatment,
and possibility of promotional opportunities indicate
that Abraham Maslow's Theory of Hierarchy Needs
applies in Kenya's labor market. Therefore, employers
should not only cater for employees' monetary needs,
but also self-esteem and self-actualization needs by
providing opportunities for career growth within their
organization.
25. Lessons Learnt (Cont.…)
Management of these days should employ democratic
leadership style since this type of style seems to attract
the current generation of employees. Employees of this
era do not stomach autocratic type of supervision, and
if that is the case, they are ready to leave. Therefore,
supervisors should create room for sharing
responsibility with junior employees and refrain from
being too much authoritative.
26. Lessons Learnt (Cont.…)
Every organization should ensure there is efficient and
effective communication in the organization. Effective
communication is needed as it will ensure employees
know what is expected of them and how best to
execute the assigned task, something that motivates
them
27. Comments
From the above findings, it is clear that employees
motivation and better performance of banks is
positively correlated. This fact is clear since the
bank under study has a both extrinsic and intrinsic
motivators available to its employees. Therefore,
banks and other financial institutions experiencing a
high rate of labor turnover should strive to motivate
their employees.
28. Comments(Cont.….)
The motivation of employees will require such banks to
introduce competitive pay schemes as well as creating a
working environment that support career growth. In
motivating their employees, banks should also choose a
well-balanced portfolio of factors that provide both intrinsic
and extrinsic motivation.
From the findings above, extrinsic motivators like salary, job
security, respect and fair treatment as well as relationship
with co-workers are taking a bigger portion of motivating
factors in the bank.
29. Comments (continued)
Since the aforementioned factors result to
dissatisfaction should they lack in an organization,
banks should ensure such factors are available to their
employees to reduce level of dissatisfaction.
On the other hand, intrinsic motivators like training
and development opportunities, future promotional
opportunities, and being given assignment beyond
one’s job scope should be used as employees retention
factors to ensure the banks retains the most talented
employees.
30. References
Karimi, M. J. (2013). The impact of communication on employee
motivation in The Kenyan public service: a case study of postal
Corporation of Kenya (Doctoral dissertation, University of
Nairobi,).
Ngigi, G. (2013). NIC Bank tops list of Kenya’s mid-sized lenders.
Business Daily, p. 1. Retrieved from
http://www.businessdailyafrica.com/NIC-Bank-tops-list-of-
Kenya-mid-sized-lenders/-/539552/1854774/-/udsgu1/-
/index.html
Nyamekye, F. (2012). Impact of Motivation on Employee Retention:
A Case Study of Standard Chartered Bank Ghana Limited
(Doctoral dissertation, Institute of Distance Learning,
Kwame Nkrumah University of Science and Technology).
Sc.com,. (2015). About Us - Standard Chartered Bank Kenya.
Retrieved 16 June 2015, from https://www.sc.com/ke/about-us
