UNIVERSITY OF NAIROBI

Lower Kabete Campus-School of Business

DHR 301: ORGANIZATION BEHAVIOR

A Case Study on Factors that Motivate

Employees of Standard Chartered Bank to

Stay Longer in the Bank

Submitted by:Kiumba John Irungu D33/2749/2013

IntroductionMotivation 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.

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.

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.

Case summaryThis 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.

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.

Relevance of the CaseThe 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.

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

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-EMEA Awards- 2014

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.

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

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.

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

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.

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.

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.

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

Issues being Discussed (Cont.)Respect and fair treatment received from superiors

Possibility of future promotional opportunities

Relationship with co-workers and,

Guidance from supervisors

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.

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).

Lessons learntMonetary 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.

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.

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.

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

CommentsFrom 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.

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.

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.

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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

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