Important of Business Ethics in Banking System

Banks are more regulated in the word since they have engaged in financial intermediaries. The banks are primarily funded by depositors and their core responsibility is to ensure to maintain the trust placed by the depositors and to minimized every possible risk in their investment. Banks also provide an effective payments system to the industry to settle their customers ' business, personal transactions, and international obligations. Hence, banks must operate within certain guidelines as defined by law, public policy, practice or convention.

The code of ethics acts as the foundation on which banks will make decisions based on fairness, dignity, confidence and faith in today's banking industry (Sanusi, 2010).

A standardized code of ethics gives banks with a knowledge and understanding of the responsibilities and behavior expected from them, A code of ethics represents expectations and defines a practical style of behavior that extends to all bank employees, from the top management to the lowest level of bank employees. The image and the reputation of a bank and its actions reflect the ethical conduct and that affects its potential for profit and growth.

 All the bank employees must have some sort of good knowledge about the ethics & the organization guide lines & policies to make perfect decision in challenging business situation and have knowledge about where to report possible unethical conduct. Legislation has been available to regulate the banking activities to ensure a fair competitive environment.

However, regulations and sanctions  are not enough to ensure operational discipline. Therefore, it is expected that high ethical standards will guide banking industry operations (Ali Yidawi, 2005).

Reference

Ali, Y. (2005). “A Survey of Ethics in the Nigerian Banking Industry”. Swiss: St. Clements University, 23-66. From www.stcle.edu/grad/gradyida retrieved on 15th November, 2011.

Sanusi, J. O. (2000), “Ethics and Professionalism in Banking. A past Experience and Challenges for Industry Operators in Nigeria”, Annual Dinner: CIBN, 2000, p.3-7.

Video Link- https://www.youtube.com/watch?v=GtHrouodTIo

Impact of Globalisation on HRM

Globalization is the trend of growing interaction between people or industries on a global level with the development of transportation and communication technology. In other terms, if a corporation or entity extends its revenue or output outside national borders, it is globalization.

Globalization means the processes that reduce barriers among countries (Frenkel & Peetz, 1998)

According to Onday (2016),through globalization, people are part of the global market through competition from every region. Because of this, profits and non-profits organation need diversity to be creative and open to change in order to maintain global competitiveness

How HRM connect with Globalisation

Nowadays HR managers don't not need to rely on a limited market to find the right employees that are needed to fight with the global challenge, rather they can recruit the employees from all around the world.Becouse of this  HRM has became more efficient, effective and simple .

The most significant factor is that these organisations are made up of people, and as HRM is the set of functions which dealing with people in any organisation, that transition has greatly affected the management of human capital itself.

Furthermore ,Bamber (2004) stated that best practices are not universal & adaptations required to use them effectively. Customizing the HRM techniques is the responsibility of the management body

Some of the challenges that HR managers are facing in terms of globalization are,

 Managing diversity of workforce

 Managing pressures for more labor rights in third world countries

 Flexible working hours, more part-time and flexible jobs

 Productivity management and Quality management

References

Bamber,G. Ryan,S, & Wailes,N. (2004). Globalization, employment relations and human resources indicators in ten developed market economies

Onday,O. (2016). Global Journal of Human Resource Management

Frenkel, S. J., and D. Peetz. (1998). Globalization and Industrial Relations in East Asia: A Three-country Comparison, Industrial Relations, 37(3):282-310.

Why is Performance Management Important ?

Every financial institution in the world wish to become world-class in their quality of products and service delivery by legal ways. They expect to deliver better services and products at a low cost to compete well and penetrate in a country for that they are working hard. They have realized that they can gain competitive advantage by the Knowledge and skills of their employees.

They are so concerned with satisfying and motivating of the  employees  to achieve business success and competitive advantage. This fact introduces the concept and need of an effective management system for performance.

Performance management system is a formal  process for improving any organizational performance. To do this, organizations should understand and manage their agreed goals or standards with the performance of the employees (Armstrong, 2009).

The goal of performance management is to improve employees ' ability to meet or exceed expectations and to realize their full potential to benefit both themselves and the organization (Armstrong, 2009).

Organizations get to know the importance of performance assessment as they show the increased productivity of employees of all major multinational companies that they have carried out the performance assessment and the importance of performance management and its measurement has been clarified from different points of view (Whitney, 1994).

This process starts with the recruitment of an employee into a company and concludes when that employee quite the organization. Performance management consist  of performance appraisal and performance development process.

Performance evaluation system  is the one of the methods most commonly used to ensure the importance of employee performance. The achievement of performance appraisal depends on how effectively and efficiently it is implemented. It also depends on an employee's understanding of the performance assessment system and the positive orientation of employees towards their system.

In srilankan context most of the private sector organizations have implemented the performance evaluating system within their organization.

In banking sector performance management system is running well & we used to following method to evaluating the performance,

Performance review on Daily,Monthly & Quaterly basis with branch staff members

Yearly review -Employee appraisal discussion/Budget review

These type of  mechanism should be implemented within the organization to drive their targets as well as to improve the employees development as well.

References

Armstrong, M., 2009. Armstrong's Handbook of Human Resource Management Practice. 11th ed. London: Kogan Page.

Whitney, K. (1994). Improving group task performance: The role of group goals and group efficacy. Human Performance, 7, 55-78.

Video link-https://www.youtube.com/watch?v=zLOZCwegCus

Impact of organizational culture on performance

Impact of organizational culture on performance 

Organizational development depends on  analyzing and identifying the    factors that  conclude the     organization's effectiveness.

Organizations and managers are willing to get engage employees, resulting in increased productivity.

Management would like to expose workers to the organization's standard, principles and priorities  that are important for understanding the organizational culture.

It is the management's duty to expose the workers to the organizational culture that will enable the   employees familiarize themselves with the organizational structure.

Management should  always seek to maintain the organization's learning environment. Proper understanding of the organizational culture will lead to better results of the employee. In respect to corporate growth, workplace efficiency is regarded by the sector as a cornerstone. The organization wants its workers to be committed to the company.

What is Organization Culture

Culture is the arrangement of various attributes expressing an organization and    distinguishing    the company from another (Forehand and von Gilmer, 1964)

According to Schein (1990), culture is characterized as a set of different values and  behaviors that  can be considered as guiding performance.

According to the Kotter & Haskett (1992) Culture is generally containing fairly established set of beliefs, behaviors and values.

What is Organization Performance

Performance relates to the level of success of the organizational activity that produces a  career for   the employee (Cascio, 2006).

Various researchers have different performance analysis.

The term performance was mostly used by researchers to convey the range of readings of  transactional efficiency and efficiency input and output (Stannack, 1996).

Organizational efficiency is the capacity of the company to accomplish its objectives   effectively and efficiently by using resources ( Daft, 2000).

Impact of organizational culture on performance

Good culture  as almost been seen as a driving force in improving employee performance. It   improves employees ' self confidence and dedication and reduces    work stress and improves     employees ' ethical behavior (Saffold, 1998).

He also notes that cultural studies continue to prioritize a common organizational culture.

According to  the Deal and Kennedy's (1982), both strong and weak culture points of view have a major impact on the actions of the company, but in the strong culture, the objectives of the employee are side by side with the objective of management and help to increase the overall organizational efficiency.

References

Cascio, W. F. (2006). Managing Human Resources: Productivity, Quality of Life, Profits. McGraw-Hill Irwin

Daft, R.L.(2000). Organization Theory and Design. (7th Ed.) South-Western College Publishing, Thomson Learning. U.S.A.

Deal, T.E. and Kennedy, A.A. (1982). Corporate cultures: The Rites and Rituals of Corporate Life. Reading, Mass: Addison-Wesley Publishing Co.

Forehand, G. A. and Von Gilmer, (1964). Environmental Variations in Studies of Organizational Behavior. Psychological Bulletin, 62, 361-382.

Kotter, J. P. & Heskett, J. L. (1992). Corporate culture and performance. New York: Free Press

Schein, E. H. (1990). Organizational culture. American Psychologist, 43 (2), 109-119. 

Stannack, P. (1996). Perspective on Employees Performance. Management Research News, l19(4/5), 38-40.

Saffold, G.S. (1998). Culture Traits, Strength, and Organizational Performance: Moving beyond Strong Culture. The Academy of Management Review, Vol. 13, 546-558

What is Employee Engagement

What is Employee Engagement 

Over the last two decades, employee engagement has been a hot topic of research for motivational psychology, capital analysts and management practitioners.

There are different ideas of employee engagement across various researchers, organizations, and regions as follows,

Kahn (1990) first brought up the idea of employee  engagement in mentally, cognitively and emotionally harnessing the personality of corporate workers to their professions; self-employment and personal self-expression in their professions.

May et al. (2004) claimed that employee engagement not only involved perception, but also the adaptive implementation of emotions and behaviors.

Wellins and Concelman (2005) suggested engagement is a combination of dedication, loyalty, competitiveness and ownership.

Cha (2007) defined employee engagement as the active involvement of the employee in the   workplace and the state of complete physiology, cognition and emotion that accompanies the work commitment, including three dimensions: commitment, organizational acceptance, and feeling of work value.

Benefits of Employee engagement

According to the literature review there are several benefits EE adds to an organization's success,

• Enhanced Employer Branding
• Greater contribution to achieving goals of organizations
• Better selection and recruiting
• Employees act as brand embassadors of the company
• Increase organization performance
• Improved sense of belonging and connection
• Improve customer service levels & increase in loyalty
• Added value to the company

Key Drivers of Employee Engagement

According to the various research reports, some of key drivers have a positive impact on employee    engagement , Such as,

• Trust and honesty between the worker and the company
• Description of the job
• Employees are given opportunities for career development.
• Dignity about the company
• Coworkers'/team leaders ' behavior
• Employee appreciation (since all workers don't work for money).
• Flexi working hours (to ensure a balance between home and working life).
• Participation in processes of decision making

References

Cha,  S. C.  (2007).  Research on  structural  modeling of  enterprise  employee engagement.

Unpublished manuscript, Jinan University, Jinan, China.

https://www.researchgate.net/publication/311985841_KEY_DRIVERS_IN_EMPLOYEE_ENGAGEMENT_AND_HOW_TO_HANDLE_THE_DISENGAGED_EMPLOYEES_-A_CONCEPTUAL_FRAMEWORK

Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at

work. Academy of management journal,

May,  D.  R.,  Gilson,  R.  L.,  &  Harter,  L.  M.  (2004).  The  psychological  conditions  of

meaningfulness,  safety and  availability and  the  engagement of  the  human  spirit at  work.

Journal  of  occupational  and  organizational  psychology,

Video Link- https://www.youtube.com/watch?v=VA_z5mvjeLc

Wellins,  R.,  &  Concelman,  K.  (2005).  Creating  a  culture  for  engagement.  Workforce

performance solutions