MOTIVATION AND ITS IMPACT ON PERFORMANCE OF EMPLOYEES:

A CASE OF UBA BANK, KUMASI.

BOAKYE YIADOM WILLIAMS

EMMANUEL OWUSU SEKYERE

ABUBAKAR RAZAK

NTI AKOMEAH MICHAEL

DUFIE EMELDA

A DISSERTATION SUBMITTED TO THE CHRISTIAN SERVICE UNIVERSITY

COLLEGE IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF BACHELOR OF BUSINESS ADMINISTRATION
(HUMAN RESOURCE MANAGEMENT OPTION)

JUNE, 2013

i
 STATEMENT OF AUTHENTICITY

We have read the university regulations relating to plagiarism and certify that this report is all
our own work and do not contain any unacknowledged work from any other source. We also
declare that we have been under supervision for this report herein submitted.

Name Index Number Signature Date

Boakye Yiadom Williams 10135165 ………………… …………………

Emmanuel Owusu Sekyere 10136122 ………………. …………………

Abubakar Razak 10136284 ………………. ….………………

Nti Akomeah Michael 10135105 ……………….. ….……………….

Dufie Emelda 10135168 ……………….. …..………………

Supervisor’s Declaration

I hereby declare that the Preparation and Presentation of the Dissertation Were Supervised In

Accordance With the Guidelines on Supervision Laid down by Christian Service University

College.

Supervisor’s Name

Dr. Gabriel Dwomoh ……………………… ….…………………..

Head of Department’s Name

Kwaku Ahenkorah (Dr.) ………………………. ….…………………..

ii
 ABSTRACT

This research was conducted to find motivation and its impact on performance at UBA Bank

Ghana Ltd. The objective of the study was to investigate the existing motivational packages

available, which of them is the best motivator, its impact on the performance of employees

and on the performance of the bank as a whole.The stratified sampling was used to select the

100 respondents.This population was divided and by random sampling, respondents were

chosen. The respondents consist of male and female of varying age distribution and

educational level, probably majority being young employees who are graduates.

From the result, the motivation that best affect employees are increase in salary, fringe

benefit and promotion. These packages are able to illicit high work output in respondents; its

absence will yield negative results. The most attitudes affected are loyalty of employees to

the bank as well as inner satisfaction.

UBA onthe whole has had a good performance over the past three years interms of profit

before tax, revenue mobilisation,and efficiency, among others.

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 DEDICATION

This piece of academic work is dedicated to our beloveds.

They are our parents, spouses and children. To them we honour with this work.

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 ACKNOWLEDGEMENT

It takes many people to put a project work like this together because the effort is widely

collaborative.

We appreciate the help we received from Dr. Gabriel Dwomoh of the Christian Service

University College, who mentored and supervised us throughout the period of work.

We also thank the respondents in the survey and friends who helped in diverse ways.

God bless you all abundantly.

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 TABLE OF CONTENTS

Statement of Authenticity ii

Abstract ` iii

Dedication iv

Acknowledgement v

CHAPTER ONE

INTRODUCTION

1.1 Research Background 1

1.2 Statement of Research Problem 4

1.3 Objectives of the Study 5

1.4 Research Questions 5

1.5 Significance of the Study 5

1.6 Limitations of the Study 6

1.7 organization of Study 7

CHAPTER TWO

LITERATURE REVIEW

2.1 Theoretical Framework 8

2.2 Scientific Model 8

2.3 Behavioral Approach 9

2.4 Vroom’s Expectancy Theory 12

2.5 Porter-Lawler Expectancy Theory 12

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2.6 Reinforcement Based Approach To Motivation 13

2.7 Comparison Of Scientific And Behavior Approach 14

2.8 Performance Measurement 21

2.9 Performance Appraisal 21

2.10 Summary and Conclusion 22

CHAPTER THREE

METHODOLOGY

3.0 Introduction 24

3.1 population Description 24

3.2 Sample and Sampling Method 24

3.3 Respondents Classification 25

3.4 Sources of Data 25

3.5 Data Collection Instruments 25

3.6 Research Design 26

3.7 Method of Data Analysis 26

3.8 Profile of Study Organization 26

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Demographic Characteristics Of Respondents 28

4.1. 1 Age Distribution 28

4.1.2 Sex Of Respondents 29

4.1.3 Level Of Education Of Respondents 30

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4.1.4 Years of Service with the Bank 31

4.1.5 Designation of Respondents at the Bank 32

4.2 Motivational Packages in the Bank 33

4.2.1 Importance of Motivational Packages to Respondents 34

4.3 Impact of Motivational Packages on the Performance of Workers 38

4.3.1 Impact Of Motivational Package On Work Output 40

4.4 Effect Of Motivational Package On Banks Performance 42

4.4.1 Uba Ghana: Income and Profit Analyses 43

CHAPTER FIVE

FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction 47

5.1 Summary of Findings 47

5.2 Influence of Motivational Package On Employee Performance 48

5.1.1 Effects of Motivational Packages On Corporate Performance. 49

5.2 Conclusion 49

5.3 Recommendations 50

5.4 Future Research 51

Reference 53

Appendix 57

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 CHAPTER ONE

INTRODUCTION

1.1 RESEARCH BACKGROUND

As a result of the powerful force of technology, which is driving the world towards a

converging commonality, we have seen various changes in the world's economic expansion.

One of the changes that bring the most challenge not only to the international firm but also the

domestic one is the emergence of a global market. In order to be successful in the long term,

managing people is one of the most crucial tools for a global business in today's competitive

world. Specifically, for an international organization, human resource becomes a more and

more important factor to reach its goal. The term" Human Resource Management (HRM)" has

been used widely and increasingly in recent decades as a vital approach to create a successful

organization, however, the more worldwide the firm, the greater the complexity of the

international human resource requirement (Dickson, 1973).

Over the past few years, society has had a great interest in studying motivation. Business

owners are constantly looking for ways to motivate their employees to be successful. If

employees do not enjoy their work, it will impede on the achievement of the organization's

goals. Motivating employees is one of the most common concerns of managers.Hence, in order

to maximize the benefit from the performance of the employees, the employermust develop

strategies to manage and improve their human resources so that they canperform their best. To

create an effective strategy, the employer needs to understand that thereare many factors that

1
affect the employee's behaviour within the organization. One of the key factors that have an

impact on the performance of an individual in the organization is their motivation.

Even though many advances in technology have changed the workplace in recent years, humans

still play a vital role in the operation of a business. Thus, it can be said that the human factor is

crucial to business success. According to the Hawthorne Studies, employees are not just another

input into the production of goods and services as they are not motivated solely by money, and

employee behaviour is linked to their attitudes (Dickson, 1973).

To be effective, the employer needs to understand what motivates employees within the

context of the roles they perform. Different people are motivated by different factors because

individuals differ in their needs. For example, some employees may want more income but

others may require a more interesting and challenging job. Knowing what it takes to do what

is right for employees can help a business succeed. Motivation has been defined as the

psychological process that gives behaviour purpose and direction (Kreitner, 2005); an

internal drive to satisfy an unsatisfied need (Higgins, 2004); and the will to achieve

(Bedeian, 2003). In psychology, motivation refers to the initiation, direction, intensity and

persistence of behavior. Motivation refers to "the emotional forces, needs, want, urges or drive

within us that influence our behaviour" or" something (as a need or desire) that causes a person

to act" (the New Merriam-Webster). Motivation is therefore providing a conscious or

subconscious inducement that will influence an individual's decisions and provide an incentive

to produce a certain action or set of actions. Accordingly, each action of behaviour or

performance required by the employee may involve various different motivating factors, not

just one. There two forms of motivation; these are extrinsic and intrinsic motivation. Extrinsic

2
motivation refers to motivation that comes from outside an individual. The motivating factors

are external, or outside, rewards such as money or grades. These rewards provide satisfaction

and pleasure that the task itself may not provide. On the other hand, intrinsic motivation refers

to motivation that comes from inside an individual rather than from any external rewards, such

as money or grades. Intrinsic comes from the pleasure one gets from the task itself or from the

sense of satisfaction in completing or even working on a task.

Before creating a programme to motivate staff, it is necessary to understand why the employer

needs motivated employees in their organization. Some of the reasons are;

 Motivated employees are needed in rapid changing workplaces and it helps in the growth

and development of a company.

 Motivated employees also help create a long-term successful business.

 Motivated employees are also far more productive than those without motivation because

they are more committed to organizational activities.

There are several factors that influence the motivation of the individual's performance in the

organization. According to Abraham Maslow, needs are the key factors that stimulate motivation

of the individual. Maslow devised a six-level hierarchy of motives that, according to his theory,

determine human behavior. Maslow ranks human needs as follows: (1) physiological; (2)

security and safety; (3) love and feelings of belonging; (4) competence, prestige, and esteem; (5)

self-fulfillment; and (6) curiosity and the need to understand.

Research done by (Higgins, 2004)on the other hand has come out with ten most motivating

factors which are: interesting work, good wages, full appreciation of work done, job security,

good working conditions, promotions and growth in the organization, feeling of being in on

3
things, personal loyalty to employees, tactful discipline, and sympathetic help with personal

problems. The key to motivating employees is to know what motivates them and designing a

motivation strategy based on those needs.

1.2 STATEMENT OF RESEARCH PROBLEM

The management of people at work is an integral part of the management process. To understand

the critical importance of people in the organization is to recognize that the human element and

the organization are synonymous. Some leaders do not appreciate the fact that employees have to

be motivated to ensure they do what they have to do so that the goals and objectives of the

organization are achieved. Because of the current situation in Ghana where supply of labour is

greater than its demand, some employers do not believe much in effective motivation of workers

to produce high performance. They uphold the view that even if workers are not properly

motivated they cannot leave the job since there is virtually no job in the labour market. Others

treat workers as machines; there is neither planning nor prioritization of tasks.

On the other hand, there is frequent labor turn over in some sectors of industries especially in

the financial sector. This is especially true with the flooding of the Ghanaian financial sector

by foreign banks. When there is a high labour turnover in an organization it reduces the

performance of a company as it will take some time for new recruits to adapt to the corporate

culture and operations. It is said that the mobility of labour has increased tremendously in the

banking industry. It is in this case that this study is set to investigate the impact of work

motivation on the performance of employees in an organization.

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1.3 OBJECTIVES OF THE STUDY

The general objective of this study is to investigate the impact of motivational packages on the

performance of employees at UBA Bank Ltd narrowing down to these specific objectives

a) to investigate the influence of work motivation on the overall performance of the

employees of UBA Bank Ltd

b) to analyze how existing motivation tools of UBA Bank impacts on the performance of

employees

c) to provide an understanding of what motivates employees and which methods of

motivation provides greater results at UBA Bank, Kumasi.

1.4 RESEARCH QUESTIONS

Questions posed by this study to achieve the objectives set above are

a) What motivates employees and which method of motivation provides the most results

at UBA Bank Ltd?

b) How does existing motivation tools currently in use impact on the performance of

employees?

c) What is the impact of motivation on the overall performance of UBA Bank Ltd?

1.5 SIGNIFICANCE OF THE STUDY

This study will help managers of business in general and specifically human resource managers

adopt effective motivation strategies to get the best from their employees. This will help them to

get effective work performance from the employees and improve the performance and overall

development of the company. The findings from this study will help to highlight those areas

5
where there are problems and that it would enable both the Management and the labour union to

better understand how the various motivational factors could be harnessed to inspire staff to

increase and sustain performance.

The findings from this study would help to further highlight the likely problems of frustrations

and how motivation can be used to either reduce or eliminate these problems amongst staff of the

organization. It will assist management in designing and putting in place together welfare

incentives for the workforce, identifies various types of needs and expectation of people at

work and outlines different approach to work motivation.

1.6 LIMITATIONS OF THE STUDY

The workforce to be covered within the context of the survey will include permanent (these

include senior and junior) and management staff. Therefore one possible area of constraint in

carrying out this research will probably be the difficulty of circulating the research instrument

in the selected branches of the Bank due to high level of security surrounding the work area

and offices especially in the banking sector.

Also, due to time and financial constraints, the study only focuses on Kumasithe garden city of

Ghana. It will not be possible to extend the study to other regions where UBA Ghana limited is

located. Finally the general apathy amongst Ghanaian culture towards research work may also

hinder accessibility to prospective respondents who are to provide needed data.

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The reliability and validity of the information given by respondents could also be a limitation.

This stems from lack of cooperation, poor responses and unwillingness to give accurate

information due to fear, discipline or otherwise. The misunderstanding of items on the

questionnaire by some respondents cannot be overlooked.

1.7ORGANIZATION OF STUDY

The study is divided into five chapters. The first chapter is made up of the introduction,

background of the study, statement of the problem, objective of study, research questions, and

significance of the study and limitation of the study. The second chapter reviews existing

literature on motivation and its impact on the performanceof a company. The third chapter

consists of the methodology of the research. Here the sample size, data analysis procedures,

population of study and the data collection methods is explained. The fourth chapter focuses on

the data presentation and analysis, results and discussion of the main findings. The last chapter

concludes the study with summary and recommendations.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 THEORETICAL FRAMEWORK

According to Robin and DeCenzo (1995) motivation is, "the willingness to exert high level of

effort to reach organizational goals, conditioned by the effort's ability to satisfy some individual

need". Campbell and Pritchard (1976) see motivation as a set of independent and dependent

relationships that explains the direction, amplitude and persistence of an individual's behavior

holding constant the effects of aptitude, skills, understanding of a task and the constraints

operating in the work environment. Atkinson (1964) defines it as the contemporary immediate

influence on the direction, vigor, and persistence of action. There are two schools of thought on

motivational theories, the scientific school of thought and the behavioral school of thought.

2.2 SCIENTIFIC MODEL

The basis of scientific management considers employees as an input to the production of goods

and services. This approach places emphasis on scientific selection, training and development

of employees instead of allowing them to choose their own tasks and training methods; its

objective is to carry out work in accordance with scientifically devised procedures. One of the

pioneers and inventor of scientific approach to management was Frederick Taylor(1856-1915)

He was the first to analyze human behavior scientifically with his machine model by making

individuals into the equivalent of machine parts. He broke down the tasks to its smallest unit to

find out the best approach. After careful analysis of the job, workers were trained to do only

8
those motions essential to the task. The objective was to remove human variability. (Terpstra,

2005) Taylor's machine model was a success and did increase production and profitability

because rational rules replaced trial and error and management became more formalized, which

eventually led to increased efficiency. But Taylor's treatment of human beings like machines

faced resistance from managers and workers who considered this way of working as

"dehumanization of work". One of the other features of Taylor's work was stop-watch timing

as the basis of observations and breaking the timings down into elements. This method also

faced stiff group resistance because no one likes to be so close monitored for each little part of

the work he/she does. Despite these criticisms, Taylor's methods had a great impact on work

because he invented a new, efficient and more productive way to work that changed the

complete nature of the industry.

2.3 BEHAVIORAL APPROACH

Unlike scientific approach, behavior approach places emphasis on what motivates people and

seeks to identify the specific influences that motivate people. Some of the distinguished theories

of behavioral approach are discussed below.

Maslow (1943) put forward the 'hierarchy of needs theory' which saw human needs in the form

of a hierarchy, ascending from lowest to the highest. He argued that lower level needs had to be

satisfied before the next higher level need and once one set of needs is satisfied, that kind of need

ceases to be a motivator.

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The five needs are:

 Physiological needs - These are the most basic human needs which are important for

sustenance like food, water, warmth, shelter, sleep etc. Maslow argued that unless

physiological needs are satisfied to a degree, no other motivating factor can work.

 Safety or Security needs - These are needs to be free of physical danger and emotional

harm like the fear of losing a job, property, food or shelter. It relates to security,

protection and stability in the personal events of everyday life.

 Social Needs - These are needs for love, affection and belongingness and social

acceptance. People are social beings and try to satisfy their needs for acceptance and

friendship.

 Esteem - Once people's social needs are satisfied, they look for esteem (reputation). This

need produces such satisfaction as power, prestige status and self confidence. It includes

both internal esteem factors like self-respect, autonomy, achievements and external

esteem factors such as recognition and attention as well as personal sense of competence.

 Self actualization - This need is the drive to become what one is capable of becoming. It

is the need to grow and use abilities to the fullest potential. It includes growth and self-

fulfillment by achieving one's potential to accomplish something.

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 Self- Actualization
(Achieving individual potential)

Esteem
(Self-Esteem and esteem from other)

Belonging
(Love, Affection, being a part of groups)

Safety
(Shelter, Removal from danger)

Physiological
Health, food, sleep

Looking at Maslow's hierarchy of needs triangle, as a need is substantially satisfied, the next

need becomes dominant, for example, esteem needs become dominant after social needs are

removed .The crux of Maslow's theory is to focus on finding out the level of hierarchy the person

is in and focusing on satisfying his or her needs and the needs above it. Maslow's theory of needs

has been wider recognized and is being practiced by managers across the globe.

Frederick Herzberg's (1959) famous quote says "If you want people to do a good job, give them

a good job to do." Herzberg's motivational theory has a two component approach and is known

as the two-factor theory. His theory suggests that things which prevent dissatisfaction are not the

same as things which create satisfaction. (Herzberg, 1959) When people are dissatisfied (de-

motivated) with their work it is usually because of discontent with environmental factors which

he terms as "Hygiene Factors". These hygiene factors include factors such as, security, status,

relationship with subordinates, personal life, salary, work conditions, relationship with

supervisor, company policy and administration (Bedeian, 2003). These are the factors whose

11
presence in the organization are natural and do not lead to motivation; however its absence does

lead to de-motivation.

The second component of the theory involves factors whose absence causes no dissatisfaction

but whose presence has huge motivational value. Herzberg terms these factors as Motivational

factors' which are factors such as growth prospects, career progression and advancement,

responsibility, challenges, recognition and achievements. The theory concentrates around the

fact that the opposite of satisfaction is not dissatisfaction.

2.4 VROOM’S EXPECTANCY THEORY

Vroom's expectancy theory argues that motivation is based on values and beliefs of individuals

and examines motives through the perception of what a person believes will happen. It is based

on the belief that employee effort will lead to performance and performance will lead to rewards

(Vroom, 1964). The theory states that individuals can be motivated if they believe that there is a

positive correlation between the efforts they put in and their performance and when that

favorable performance leads to a reward. Consequently, the reward helps satisfy an important

need and the desire to satisfy that need is strong enough to make the efforts worthwhile.

2.5 PORTER-LAWLER EXPECTANCY THEORY

Porter-Lawler's theory is much on the same lines as Vroom's and suggests that levels of

motivation are based more on the value that individuals place on the reward. Actual performance

in a job is primarily determined by the effort spent and is also affected by the person's ability to

do the job and his perception of what the required task is. The theory states that performance is

12
the responsible factor that leads to intrinsic as well as extrinsic rewards and these rewards, along

with the equity of individual leads to satisfaction. The perception of equal or unequal reward

may cause dissatisfaction which means that organizations have to continuously keep evaluating

their reward system. The theory along with equity theory demonstrates the importance of

avoiding discriminatory practices in the workplace and states that it is imperative for

employees to give equal treatment to employees on the job.

Elton Mayo with his behavioral experiments known as “Hawthorne Experiments” was the first

few to analyze the human aspects of motivation. His conclusions were that motivation was a

very complex subject and was not only about pay, work condition and morale but also about pay,

work condition and morale but also about psychological and social factors. He concluded that

the need for recognition and sense of belonging were very important motivational factors.

2.6 REINFORCEMENT BASED APPROACH TO MOTIVATION

Reinforcement was propounded by Skinner and this theory is based on motivation approaches

are in some way similar to expectancy theory as both consider the process by which an

individual and that punishment actually leads to frustration and de-motivation. This approach

explains the role of rewards in greater detail as they cause the behavior to change or remain the

same. Expectancy theory focuses more on behavior choices, and reinforcement theory focuses

more on the consequences of those choices (Skinner, 1953).

Most of the behavioral theories seem to borrow a little from each other. Maslow’s theory

concentrates on basic human needs; Herzberg’s two factor theory brings out the distinction

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between motivation-demotivation. Maslow describes which outcomes people are motivated by

and Vroom describes whether they will act based upon their experience and expectations.

Porter-Lawler model brings out the perceived inequality and brings out the demerits of

discriminatory practices. All behavioral theories have their own significance and it is up to the

management to decide on which theory to apply.

2.7 COMPARISON OF SCIENTIFIC AND BEHAVIOR APPROACH

There is an underlying difference between the two approaches to motivation. Scientific approach

assumes that work is inherently unpleasant to most people and the financial incentive is more

important to them than other factors such as nature of job, role profile, work environment etc.

While the behavioral approach to management emphasizes the role of social processes in

organizations and stresses on belongingness and the need to feel useful. It emphasizes that these

human needs motivate employees more than money. In today's workplace environment, where

company's success is judged by various qualitative parameters and where employee motivation

forms a significant input to organization's success, human approach to management is more

suited.

Campbell and Richard (1980) came up with the following assumption about human behavior.

They are;

a. All human behavior has a course, which can be traced to the effect of the environment.

b. The root of human behavior is also traceable to needs wants and motives.

c. Human behavior is goal seeping people would release their effort in the direction they

believe will help to satisfy their personal needs.

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Work is an important event, a fact that is inevitable in the life of an individual. It is an activity

that acts as a source of satisfying a person’s need. Employees try to find satisfaction in what they

do and as a result a manager should be able to understand the problems faced by his employees

and find a way of satisfying their needs. The general assumption is that an adequately motivated

worker will in turn give in his or her best towards the attainment of a general consensus.

Consequently when a worker is motivated the question of poor performance and inefficiency will

be a forgotten issue in an organization. Managers who are successful in motivating employees

provide an environment in which appropriate or adequate goals called incentives are made

available for the needed satisfaction of the employee. A good number of workers are adequately

paid in their jobs so as to work hard and maintain a high standard of performance while some

even work hard but do not receive much material gains to show for it.

Today's manager cannot rely solely on the manipulation of pay, benefit or working conditions to

encourage workers to perform effectively. Rather a manager in an organization has the

responsibility by developing a work environment that makes use of the enormous energy that is

within every person.

Motivating is the work managers perform to inspire, encourage and impel people to take action

as suggested by Louis Allen (1986). To motivate the employee, the employee must be reached;

to reach himthere must be a completed understanding of the complexity of his make-up (Louis

Allen 1986). Motivation efforts must be directed towards improving company operations. To be

effective, however, they must also be designed to show benefits to the employee. In fact,

15
motivation can best be accomplished when workers are able to merge their personal ambitions

with those of the company.

The relationship between the employer and employee must be one of understanding in order for

the employee to identify himself with his work and with the business he is working for. lack of

motivation in return affects performance. A number of symptoms may point to low morale:

declining performance; high employee turnover; increasing number of grievances; higher

incidence of absenteeism and tardiness; increasing number of defective products; higher number

of accidents or a higher level of waste materials and scrap (William Day 1978).

According to McClelland ( 1 9 6 1 ) individuals tend to develop certain motivational drives on the

cultural environment in which they live and these drives affect the way people view their

j o b s . McClelland ( 1 9 6 1 ) suggests that achievement, affiliation, competence and power are

four types of motivational drives that are found in individuals that are self-motivated and this

may be the case for many construction workers. Motivation plays a part in enhancing labour

productivity (Smithers and Walker, 2000) and forms the basis for identification of the work

environment factors. For example, Laufer and Moore (1983) advocated the use of financial

incentive programmes to improve labor performance.John Borcherding and Clarkson Oglesby

(1974) discovered that productive job creates high job satisfaction while non-productive job (one

which fall behind schedule) produce dissatisfaction at all levels of the management/worker

chain.

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A worker, through his own efforts produces a highly visible, physical structure in which great

satisfaction comes from completion. Therefore, jobs that are well-planned and run smoothly

produce great satisfaction while jobs with poor management (with scheduling, and planning

problems), create dissatisfaction. This illustrates the relationship between job satisfaction and

performance since; well-managed jobs are generally more productive.

The most important dependent variable in industrial and organizational psychology is job

performance. One of the major concerns of manufacturing companies has focused on improving

worker performance (Borman, 2004). Greguras, Ployhart and Balzer (1996) describes job

performance as the extent to which an organizational member contributes to achieving the

objectives of the organization. According to Keller (2006), when you expect the best from your

employees they will give you their best. On the other hand, when you expect little from

employees they will give you low performance in return, which was named by Manzoni and

Barsoux (2004) as set-up-to fail syndrome. Many people feel that they are not recognized or

appreciated by their employers for their hard work and in turn develop decreased motivation.

Lack of communication and feedback from employers cause employees to feel overlooked and

prevents them from performing to the best of their ability.

The level of performance of employees relies not only on their actual skills but also on the

level of motivation each person exhibits (Burney and Widener 2007). Motivation is an inner

drive or an external inducement to behave in some particular way, typically a way that will

lead to rewards (Dessler, 1978). Over-achieving, talented employees are the driving force of all

firms so it is essential that organizations strive to motivate and hold on to the best employees

17
(Harrington, 2003). The quality of human resource management is a critical influence on the

performance of the firm.

Financial motivation has become the most concern in today's organization, and tying to

Maslow's basic needs, non-financial aspect only comes in when financial motivation has failed

According to Greenberg and Baron (2003. 2000) definition of motivation could be divided into

three main parts. The first part looks at arousal that deals with the drive, or energy behind

individual’s action. People turn to be guided by their interest in making a good impression

onothers, doing interesting work and being successful in what they do. The second part

referring to the choice people make and the direction their behavior takes. The last part deals

with maintaining behavior, clearly defining how long people have to persist at attempting to

meet their goals.

Motivation can be intrinsic and extrinsic. Extrinsic motivation concerns behavior influenced by

obtaining external rewards (Hitt, Esser, and Marriott, 1992). Praise or positive feedback, money,

and the absence of punishment are examples of extrinsic or external rewards (Deei, 1980).

Intrinsic motivation is the motivation to do something simply for the pleasure of performing that

particular activity (Hagedoorn and Van Yperen, 2003). Examples of intrinsic factors are

interesting work, recognition, growth, and achievement. Several studies have found there to be a

positive relationship between intrinsic motivation and job performance as well as intrinsic

motivation and job satisfaction (Linz, 2003). This is significant to firms in today's highly

competitive business environment in that intrinsically motivated employees will perform better

and, therefore, be more productive, and also because satisfied employees will remain loyal to

their organization and feel no pressure to move to a different firm.

18
Deci and Ryan (2000) conducted and replicated an experiment that showed the negative impact

of monetary rewards on intrinsic motivation and performance. A group of college students were

asked to work on an interesting puzzle. Some were paid and some were not paid for the work.

The students that were not being paid worked longer on the puzzle, and found it more interesting,

than those students who were being paid. When the study was brought into a workplace setting,

employees felt that their behavior was being controlled in a dehumanizing and alienating manner

by the rewards. It was discovered that rewards would seriously decrease an employee's

motivation to ever perform the task being rewarded, or one similar to my time in the future.

Another observation of the study was that employees would expect a reward every time the

task was to be completed if the reward was offered at one time. Employees would require the

reward in order to perform the job and would probably expect the reward to increase in

amount. If the rewards were not increased or if they were taken away they actually served as

negative reinforcement. Deci and Ryan (2000), in collaboration with two of their colleagues,

conducted a study to examine the effects of performance-contingent rewards on an employee's

intrinsic motivation (Cameron, Deci, Koestner, and Ryan, 2001). These types of rewards are

very controlling since these rewards are directly associated with an employee's performance of

some task. Also significant in the study was the importance of the interpersonal atmosphere

within which the performance-contingent rewards were distributed. When Cameron et al.

(2001) compared the administering of rewards in a controlling climate and in a non-controlling

climate; they discovered that the performance-contingent rewards given in the more controlling

interpersonal climate undermined intrinsic motivation. To prevent the decrease in employees'

19
intrinsic motivation, the interpersonal climate when distributing performance-contingent

rewards should be more supportive.

Vroom (1964) suggests that motivation leads to efforts and the efforts combined with

employees ability together with environment factors which interplay results in performance.

Adams (1965) on his part suggests that people are motivated to seek social equity in the rewards

they receive for high performance. According to him the outcome from job includes; pay,

recognition, promotion, social relationship and intrinsic reward. To get these rewards various

inputs needs to be employed by the employees to the job as time, experience, efforts, education

and loyalty (Adams, 1965). He suggests that, people tend to view their outcomes and inputs as a

ratio and then compare these ratios with others and turn to become motivated if this ratio is high.

The level of performance of employees relies not only on their actual skills but also on the level

of motivation each person exhibits (Burney et al., 2007).

Motivation is an inner drive or an external inducement to behave in some particular way,

typically a way that will lead to rewards (Dessler, 1978). Over-achieving, talented employees are

the driving force of all firms so it is essential that organizations strive to motivate and hold on to

the best employees (Harrington, 2003). The quality of human resource management is a critical

influence on the performance of the firm.

20
2.8 PERFORMANCE MEASUREMENT

Chen and Silverthorne (2008), identify three types of performance. One is the measure of output

rates that is amount of sales over a given period of time for example. The second type of measure

of performance involves ratings of individuals by someone other than the person whose

performance is being considered. The third type of performance measures is self-appraisal. As a

result, the adoption of self-appraisal techniques is useful in encouraging employees to take an

active role in setting his or her own goals. Thus, job performance measures the level of

achievement of business and social objectives and responsibilities from the perspective of the

judging party (Hersey and Blanchard, 1993).

2.9 PERFORMANCE APPRAISAL

This is a process within the overall performance management process (Dowling et al., 1999), and

is defined as “the evaluation of an individual’s work performance in order to arrive at objective

personnel decisions” (Robbins et al., 2000) Effective appraisal systems should address clarity,

openness, and fairness; recognize productivity. UBA Bank uses employee performance appraisal

to assess the individual performance of employees. This system ensures that supervisor/managers

assess the employees at the end of the year and a report is sent to Head Office for either an action

resulting in promotion or otherwise for that particular year. The bank also uses budget

estimation to assess the financial year of the branch. When the group bank declared profit at the

end of the year, each staff is given performance reward and those who do not perform well

forfeit their rewards. Measurement is therefore the first step in improvement. But while

measuring is the process of quantification, its effect is to stimulate positive action. Performance

measures can be grouped into two basic types: those that relate to results (outputs or outcomes

21
such as competitiveness or financial performance) and those that focus on the determinants of the

results (inputs such as quality, flexibility, resource utilization, and innovation). This suggests that

performance measurement frameworks can be built around the concepts of results and

determinants. Measures of performance of a business usually embrace five fundamental, but

interlinking areas: Money, usually measured as profit; Output/input relationships or productivity;

Customer emphasis such as quality; Innovation and adaptation to change; and Human resources.

While financial measures of performance are often used to gauge organizational performance,

some firms have experienced negative consequences from relying solely on these measures. To

be effective, performance yardsticks should continuously evolve in order to properly assess

performance and focus resources on continuous improvement and motivating personnel.

2.10 SUMMARY AND CONCLUSION

Motivation remains a challenge for organizations today. With the changing environment, the

solutions to motivation problems are becoming even more complex. This is due, in part, to the

fact that what motivates employees changes constantly (Bowen and Radhakrishna, 1991)

Managers need to understand what motivates employees within the context of the roles they

perform and understand the process, theories, and fundamental components of motivation.

Research done by (Higgins, 2004) has come out with ten most motivating factors which are:

interesting work, good wages, full appreciation of work done, job security, good working

conditions, promotions and growth in the organization, feeling of being in on things, personal

loyalty to employees, tactful discipline, and sympathetic help with personal problems. The key to

motivating employees is to know what motivates them and designing a motivation program

22
based on those need; this will eventually lead to efficiency and increase in performance of the

organization.

23
 CHAPTER THREE

METHODOLOGY

3.0 INTRODUCTION

This chapter is organized into two parts. The first section looks at the actual methodology. It

looks at the research instruments, sampling, sources of data, data collection analysis and data

presentation. The second part presents the profile of the study organizations; especially the

various divisions, structure and management involved in service delivery.

3.1 POPULATION DESCRIPTION

The target population was employees of United Bank for Africa, who have worked in the

company for at least one year. They can be of any position or designation.Population can be

estimated to be 438 employees.

3.2 SAMPLE AND SAMPLING METHOD

A sample size of 100 respondents was used. The stratified sampling technique was used, where

the population of interest was divided into subgroups based on their departments, and then

simple random sampling technique used to select units for the sample size. The subjects were of

various demographic characteristics such as of gender which is male and female, age-including

old adults and young adults and different educational backgrounds such as postgraduates

(master's and doctorate), and first degree graduates.

24
3.3 RESPONDENTS CLASSIFICATION

Table 1 A Table showing Classification of Respondents

Category Number Percentages

Client Services 20 20%

Operations Department

Teller 20 20%

Back office 40 40%

Credit Department

Loans 10 40%

Sales 10 40%

Total 100 100%

3.4 Sources of Data

The study used both primary and secondary sources for data collection. Primary data was

obtained from responses after administering questionnaires. Secondary data was obtained from

records, documents, reports, statistics as well as varied search engines, basically Google and

Yahoo including leaflets, magazines, and textbooks. More importantly, published literature and

journals were reviewed to obtain relevant information.

3.5 Data Collection Instruments

The instruments used in data collection comprises of questionnaires. Questionnaires to measure

the variables of interest were constructed, making sure all the objectives outlined in the proposal

are duly exhausted. Questionnaires were administered to subjects who were selected

25
randomly.Questionnaires were used to induce a very high rate of responses from the respondents.

The questionnaires were administered directly to respondents in their offices and they were

collected after one week. Since the nature of the study demands some sensitive information,

participants would be assured of anonymity and confidentiality.The questionnaire was be made

up of both close ended and open ended questions designed to collect demographic data and

measure the level of motivation among employees of UBA.

3.6 RESEARCH DESIGN

The design employed in this fieldwork was descriptive. Data were gathered from both primary

and secondary sources for analysis. In collecting the primary data the researcher made use of

questionnaires.

3.7 METHOD OF DATA ANALYSIS

Views expressed by respondents in questionnaires were edited, coded and evaluated.

Qualitative and Quantitative techniques were used to analyze the data, and Excel and SPSS

(Statistical Program for Social Sciences) were employed to help in the presentation and analysis

of the data obtained from the field. The computer software enables tables,figures and charts to be

used.

3.8 PROFILE OF STUDY ORGANIZATION

This study shall take place at the Kumasi branches of the United Bank Africa (UBA) Ghana.

UBA (Ghana) is a subsidiary of United Bank for Africa (UBA) Plc, which is West Africa's

largest financial services group with assets in excess of US$14 billion. The labour strength of

26
UBA m today can be said to be commensurate with its size. There are about 438 employees of

UBA (Ghana). They are distributed to the various branches in different departments. UBA

(Ghana)takes pride in its ability to provide its employees with skills and abilities to operate in a

challenging, engaging, multicultural work environment that promotes innovation and rewards

performance. UBA's goal is to be the employer of choice. UBA'S corporate identity rests on four

fundamental values with the acronym Honesty, Empathy, Integrity and Resilience. This is a key

component of the employment philosophy of the bank. The banks people strategy starts from the

point and method of recruitment, which emphasizes merit and a strong fit with shared values to

the point of training and deployment, and retraining to imbibe the values and operating norms.

The study will be carried out at the Kumasi branches of UBA (Ghana) limited in the garden city

of Ghana. This city has a total of six branches located in Kwame Nkrumah University of Science

and Technology campus, Adum, Suame, Allabar, Kejetia and University College of Education,

Kumasi campus.

27
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

This chapter is devoted to the data presentation and analysis of responses from employees. The

chapter is divided into three. The first part focuses on the demographic characteristics of

respondents, the second part on the existing motivational packages at the bank and the third part

also focuses on the impact of these motivational packages on the performance of workers.

4.1 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS

Issues attended to under demographics involved age distribution of respondents, sex, educational

level, designation at the bank and the years of service with the bank.

4.1. 1 Age Distribution

Table 4.1 A table showing the age distribution of respondents

Age distribution Frequency percent Cumulative

percent
Less than 20years 0 0 0
Between 21-30years 53 58.9 58.9
Between 31-40years 25 27.8 86.7
Between 41-50years 8 8.9 95.6
Between 51-60years 4 4.4 100
Above 60years 0 0 100
Total 90 100 100

Source: Researcher’s Fieldwork, April, 2013.

From the primary data, the age distribution with the highest respondents was between 21-

30years, 58.8% implying a youthful workforce. This is followed by respondents between ages

31-40years with 27.8%. 8.9% and 4.4% of respondents fell between the 41-50years and 51-

28
60years group. There were no respondents for the below 20years and above 60years category.

Over 85% of the banks workforce is below 40years. This is key as it could serve as a guide in

determining packages that are likely to suit the young workforce.

Figure 4.1 a bar graph showing the age distribution of respondents

age distribution of respondents

above 60 years
between 51-60 years
between 41-50 years
percentage age
between 31-40 years distribution
between 21-30years
less than 20 years

0 20 40 60

4.1.2 Sex distribution

Table 4.2 a table showing the sex of respondents

sex frequency Percent Cumulative

percent

Male 40 44.4 44.4

female 50 55.6 100

total 90 100 100

Source: Researcher’s Fieldwork, April, 2013.

29
Figure 4.2 a pie chart showing the sex distribution of respondents

male
female

From the field study, 44.4% of the respondents were males and 55.6% were females. This

implies a workforce which has more females than males. Women tend to be more flexible and

help draw new customers better. Women are also easily motivated and hence can give up their

best

4.1.3 Level of education

Table 4.3 a table showing the education level of respondents

Level of education frequency Percent Cumulative frequency

Up to secondary 0 0 0
Diploma 6 6.7 6.7
First degree 57 63.3 70
Masters degree or higher 19 21.1 91.1
Professional qualification 8 8.9 100

total 90 100 100

Source: Researcher’s Fieldwork, April, 2013.

30
Figure 4.3 a bar graph showing the level of education of respondents

percentage of levels
70
60
50
40
30
20
10
0
percentage of levels

Source: Researcher’s Fieldwork, April, 2013.

Regarding the levels of education of the respondents, 6.7% are diploma holders, 63.3 % of

respondents had first degree and 21 % had master’s degree.This implies a workforce that has

84.4% of respondents being graduates. 8.9% of the respondents however had professional

qualification. A larger percentage of the banks workforce are skilled hence key in the success of

the bank.

4.1.4 Years of service with the bank

Table 4.4 a table showing the years of service of respondents with the bank

Years of service frequency Percent Cumulative

frequency
Less than a year 9 10 10
1year but less than 5years 62 68.9 78.9
5years but less than10years 18 20 98.9
Above 10years 1 1.1 100
total 90 100 100
Source: Researcher’s Fieldwork, April, 2013.

31
Figure 4.4 a bar graph showing the years of service of respondents with the bank

Years of service with the bank

70
60
50
40
30
20
10
0

Years of
service with…

Source: Researcher’s Fieldwork, April, 2013.

From the survey, 10% of respondents have spent less than a year with the bank, 68.9% have

spent between 1 to 5years working with the bank, 20% of respondents have spent between 5 to

10years and only 1% have worked with the bank for more than 10years.

4.1.5 Designation of Employees at the Bank

From the survey, 50% of respondents are junior staff; this is followed by the senior staff with

27.8%. 22.2% of respondents refused to select their designation and so represents the

unaccounted for percentage. The senior staff represents managers and supervisors and the junior

staff represents clerical staff.

32
Figure 4.5 a pie chart showing the designation of employees in the bank

Junior
Senior
unaccounted

Source: Researcher’s Fieldwork, April, 2013.

4.2 Motivational packages in the bank

From the responses, the available motivational packages at the bank include:

 Monthly salary

 Promotions

 Recognition

 Fringe benefits made up of fuel allowance, amongst others

 car loan

 housing loan

In finding out from respondents the time scale they benefit from these packages, 83% of

respondents said it took years to benefit and 17% said it took months. This implies that the

majority of respondents had not benefitted from the motivational package that was based on the

length of service to the bank such as housing and car loans as well as promotions which are

based on having worked for the bank for more than 5years. So for them it took years to benefit

33
from the range that was important to them. This is also obvious due to the fact that it is a much

younger bank in terms of its existence in Ghana and Kumasi for that matter. The package that

took shorter time is the salaries and fringe benefits.Along the way there are trainings on the job

to enhance the work and communication of employees.

Figure 4.6 a bar graph showing the timescale for benefiting from these packages

90
80
70
60
50
40
30
20
10
percentage
0
years months

Source: Researcher’s Fieldwork, April, 2013.

4.2.1Importance of motivational packages to Employees

Table 4.5 a table showing the importance of motivational package to respondents
Motivational package frequency percent Cumulative
Percent
Increased/enhanced salaries 42 46.7 46.7
Employee car loan 10 11.1 57.8
Employee housing loan 3 3.3 61.1
Fringe benefits 18 20 81.1
promotions 12 13.3 94.4
Recognition 5 5.6 100
total 90 100 100
Source: Researcher’s Fieldwork, April, 2013.

34
In finding out the importance of these motivational packages to the respondents, the following

responses were obtained. To 46.7% of respondents, an enhanced salary was the most important

factor. This is understandable because employees who are paid well are normally committed to

their work and do so with a lot of enthusiasm. Less paid employees on the other hand are liable

to indulge in fraud. For these employees these salaries enables them to finance their fundamental

needs of life as depicted by Maslow in his hierarchy of needs model. This was followed by 20%

who considered fringe benefits as the most important motivator. These benefits include fuel

allowance, food allowance, responsibility allowance, clothing allowance amongst others. These

allowances are paid mostly based on educational level of employee, on the level of responsibility

or on the length of service. These go along way to augment their monthly salaries. These two

extrinsic types of motivation account for 66.7% of employees’ interest. The bank from the age

distribution has over 85% of its workforce being less than 40years, a youthful workforce

probably now securing their physiological needs hence prefer factors which ensure that they

receive more. The remaining population of 14% is between the ages of 41-60 years and might

prefer other packages that are related to esteem, recognition and promotion. 13.3% of

respondents considered promotions for their immense effort as the most important package.

Promotions are to ensure that employee jobs are enriched. It is also usually associated with

increase in renumeration. This increase in renumeration is consequently linked to an increase in

job responsibility. This indicates a strong relationship between motivational package and

performance and therefore is in support of Hertzberg’s Two-Factor theory.This was closely

followed by 11.1% of respondents who considered a facility to obtain a car to facilitate their

movement as a motivator. Recognition and a facility to own a home gained 5.6% and 3.3%

35
respectively. To depict it better is a pie chart to show the importance of these motivators to

respondents.

Figure 4.7 a pie chart showing the importance of current motivational package to

employees

enhanced
salaries
employee car
loan
employee
housing loan
fringe benefits

promotions

recognition

Source: Researcher’s Fieldwork, April, 2013.

Questions were further posed to illicit responses on the incorporation of respondents views in the

various motivational packages. From the primary data, 94% of respondents alluded to the fact

that they were engaged in correspondence concerning these packages with 6% of respondents

indicating that their views were not sought in the determination of these packages.

Figure 4.8 a bar graph showing the incorporation of respondents view in motivational package.

36
 percentage

100

80

60
percentage
40

20

0
Yes No

Source: Researcher’s Fieldwork, April, 2013

Further interrogations relating to the motivational package revealed that with 90% of

respondents, the current package is enough to motivate them to give off their best, whilst for

10% of respondents; the packagesare not enough to motivate them to them off their best. This is

depicted in the pie chart as shown below

Figure 4.9 a pie chart showing whether current motivational package is enough to give off their

best

Yes
No

Source: Researcher’s Fieldwork, April, 2013

37
4.3 IMPACT OF MOTIVATIONAL PACKAGES ON THE PERFORMANCE OF

EMPLOYEES

From the primary data, the attitude to work indicators used were early reporting to work, staying

on the job, delight to customers, respect among colleagues, inner satisfaction and loyalty to the

bank. Responses from respondents indicated that loyalty to the bank was the highest affected

attitude with a percentage of 22.2%. This is because the longer an employee remains in the

employment of the bank, the more likely it is that most customers will be used to such a person

and may find it easy to divulge their service wishes or expectations from the bank. Thus in our

view, loyal employees birth loyal customers. This was followed by inner satisfaction with a

percentage of 17.8%.While improvements in service quality can be reached through investments

in technology and infrastructure, the most dramatic improvement are achieved through people.

Satisfied employees tend to be more involved, dedicated, have greater organizational

commitment, more loyal and productive towards customer needs, thus enhancing customer

satisfaction, which is the ultimate aim of businesses today (Naeem,2010). This is because

satisfied employees are:

a) better motivated hence interacts with external consumers better

b) they are also empowered employees because they have physical and emotional resources to

understand and meet customer needs, show empathy, etc.

c) full of energy and are more willing to go the extra mile in providing good service.

38
This concept of internal marketing according to Harter et al. (2002) found that employee

satisfaction resulted in higher productivity and reduction in employee turnover. Delight to

customers, respect among colleagues and staying on the job all earned a percentage of 15.6% of

respondents, with the lowest percentage of 13.3% of the respondents opting for early reporting to

work. These are depicted in the table and graph below.

Table 4.6 a table showing the Influence of motivational package on employees’ attitude to work

Attitude to work frequency Percent Cumulative

frequency

Early reporting to work 12 13.3 13.3

Staying on the job 14 15.6 28.9

Delight to customers 14 15.6 44.5

Respect among colleagues 14 15.6 60.1

Inner satisfaction 16 17.8 77.8

Loyalty to the Bank 20 22.2 100

total 90 100 100

Source: Researcher’s Fieldwork, April, 2013

39
Figure 4.10 a bar graph showing the percentages of the influence of package on work

attitude

percentages of influence of
package
delight to customers

respect among colleagues

staying on the job(low…

early reporting to work

inner satisfaction

bank loyalty

0 5 10 15 20 25

Source: Researcher’s Fieldwork, April, 2013

The success of every organization depends on its human resource. This is because the greatest

resource for any organization is its human resource. According to Martin Bruce(1962), a

motivated employee is a loyal employee and employees who are loyal support the goals of the

organization. In addition, Bruce (1962) advanced that the nature of the job that the employee

performs has a bearing on the quality of his performance.

4.3.1 Impact of motivational package on work output

The next parameter that was investigated was the effect of these motivational packages on work

output. From the responses, 97% of respondents indicated a high work out put with 3% of

respondents also indicating a very high work output. This emphasizes the fact that good

motivation does affect the work output because employees are satisfied, hence give off their best.

40
Figure 4.11 a pie chart showing the effect of package on work output

percentage of effect on work

output

very
high
high

Source: Researcher’s Fieldwork, April, 2013

Respondents were further engaged to ascertain whether the same output could be achieved

without the motivational package and the response was a 100% no by all respondents.

Figure 4.12 a bar graph to show percentage ability to achieve same without motivational package

percentage ability to
120 achieve same
100

80

60

40

20
No
0
1

Source: Researcher’s Fieldwork, April, 2013

41
4.4 EFFECT OF MOTIVATIONAL PACKAGE ON BANKS PERFORMANCE

Respondents were further asked on the effect of these motivational packages on the performance

of the bank. The indicators used were its effect on profitability, deposit mobilization, loan

default, efficiency, and customer base and staff retention. From the respondents, the most

indicators that will be affected is the efficiency with 33.3%. This was evident in the achievement

of the bank for the past three years with an efficient cost to income ratio of 39.7% in 2012.

Efficient cost to income ratio: The least-cost to service provider with 39.7% cost to income ratio

9M10 9M11 9M12

Source: UBA financial report

This is followed by an increase in the profitability with a percentage of 28.9% with a subsequent

increase in deposit mobilization with 25.6%.

 stong growth in revenues as seen in the financial report of UBA, 2012

9M10 9M11 9M1

Source: UBA financial report, 2012.
42
The least indicators affected are loan default and staff retention with percentages of 4.4 and 1.1

respectively. These responses are shown in the table and chart below:

Table 4.7 a table showing the effect on Banks Performance

Cumulative

Indicators frequency percent Frequency

Profitability 6 28.9 28.9

Deposit mobilization 23 25.6 54.5

Loan default 4 4.4 58.9

Efficiency 30 33.3 92.2

Increases customer base 26 6.7 98.9

Staff retention 1 1.1 100

Total 90 100 100

Source: Researcher’s Fieldwork, April, 2013

A chart showing the loan-deposit ratio of the bank contained in its annual report. 2012

Loan-deposit ratio

 Loans and deposits on the rise

9M10 9M11 9M12

And growing loans and deposits in billions in naira as depicted below

43
 9M10 9M11 9M12

Figure 4.13 a chart showing the percentage effect of packages on performance of the bank

percentage effect on Banks

Performance
35
30
25
20
15
10
5 percentage effect on
0
Banks Performance By
Respondents

Source: Researcher’s Fieldwork, April, 2013

According to UBA’S official performance, a clear increase in profitability is realized. In the

2012 financial statement of UBA Bank Ghana published on Monday March 11, 2013, the Bank

posted a profit before tax (PBT) of GH¢62.9 million compared with GH¢30.1 million in 2011,

representing an incremental growth rate of 108 per cent. In profit after tax (PAT) terms the Bank

grew by 112 per cent from GH¢22.4 million in 2011 to GH¢47.5 million in 2012. There was also

44
an appreciable growth in total assets of 23 per cent from December 2011 to December 2012.

These are shown in the graphs below

Profit before tax(N’bn)

9M10 9M11 9M12

 A graph showing a highly profitable business, a two-year of 78% increase in profit before

tax with a consequent and Impressive growth in total assets as shown below:

Total assets, N'bn

9M10 9M11 9M12

45
The Chief Finance Officer (CFO) of the Bank, Mr. Charles Appiah, said that UBA Ghana was

simply efficient, adding “We have put in place several cost-efficient initiatives and strong risk

management framework that optimize the use of our resources which have resulted in making

UBA Ghana one of the best banks in cost-income ratio (CIR) and NPL ratio both of which were

35 per cent and 1.4 per cent, respectively by 2012 year-end.”The period under review also saw

significant improvement in the bank’s return on equity and return on assets. Return on equity

increased from 32 per cent in 2011 to 50.3 per cent in 2012 while return on assets rose from 5.3

per cent in 2011 to 8.9 per cent in 2012.( Source: The Ghanaian Times, March, 2013)

This sums up the performance of UBA bank Ghana on the whole.

46