1.1 BACKGROUND OF THE STUDY
In any organization, formal or informal, effective communication leads to effective management which aids achievement of organizational goals. Effective personnel management is a function of effective communication as management involves working with and through others to achieve corporate goals. Communication is the transfer of information from a source to a receiver. It is effective when the sender of information and the recipient have a common comprehension of the message. The importance of communication in the world in which we live today cannot be overstressed.
Communication is derived from the Latin word “communicare” which means “to put in common” and “to share”. It then means the sharing of ideas, facts, thought and feelings for easy coexistence. It is a two way process which involves the sender and the receiver. Communication is, therefore, concerned with transmitting and receiving information which is the key to all aspects of organizational life, whether by planning, controlling, problem-solving, decision-making, motivating, interviewing and other management activities (Ijaiya, 2000).
The banking industry is the most vibrant sector in the Nigeria economy. It serves as catalyst for growth and development. It is the pivot upon which a nation’s economy rotates. Commercial banks are unique among financial institution. Commercial banks have the extra capacity to create new credit money (Nzotta, 2004). The money is invested in low and high risk assets to ensure that depositors funds are not impaired by cumulative losses and banks are by law and regulation expected to hold adequate capital cover to cushion out any loss, so that depositors funds may continue to be intact (Onoh, 2002).
The strength of a bank depends on the capital funds available to the bank. According Soludo (2004), banks have not played their expected role in the development of the economy because of their weak capital base and as such, the decision to raise capital base of banks was with the aim of strengthening and consolidating banking system. The strengthening and consolidation of the banking system was the first phase of reforms designed to ensure a diversified, strong and reliable banking sector which will ensure the safety of depositors’ money, play active development roles in the Nigeria economy and also become competent and competitive in the financial system.
Until a century ago, man has largely based his decision upon knowledge acquired through experience and intuition due to the simplicity of his environment and operation than needs. For man to cope or survive with the present day complexity of modern banking system there must be sufficient and relevant information technology in addition to decision making.
The dependence of modern banks on fast and efficient data storage and retrieval cannot be neglected because the success or failure of any organization is determined by its ability to store and retrieve information quickly and efficiently.
Woheren (2000) claimed that only banks that overhaul the whole of their payment and delivery systems and apply ICT to their operations are likely to survive and prosper in the new millennium. Based on this, this research work is therefore seeks to examine the effect of communication on organizational performance in the Nigerian banking sector.
1.2 STATEMENT OF THE PROBLEM
Most banks today have been distressed because of the inability of their management to put in place solid and effective information technology system policies which would safeguard the performance of the banks.
Financial institutions and other organization need information for their survival and this information can be processed using computer for the effective and efficient productivity.
The dependence of modern banks on fast and efficient data storage and retrieval cannot be neglected because the success or failure of any organization is determined by its inability to store and retrieve information quickly and efficiently.
Improper introduction and implementation of information poses a problem in organizations. It either produces unsatisfactory output or ruins their goodwill. Most professionals are of the opinion that the role of information technology in organizations cannot be overemphasized while some are looking at the cost of installing the full capacity of information technology in organizations.
Despite several study by many researchers there is still issues concerning the relevance of information technology and organizational productivity. It is on this basis that the aforementioned, this research was designed to examine the effect of information technology on organizational productivity in banking sector.
1.3 OBJECTIVES OF THE STUDY
The study aims at examining the effect of information technology (communication) on organizational performance in banking sector in Nigeria. Other specific objectives include:
a) To identify how the nature of information technology affects organizational performance.
b) To identify the effect of vertical communication on organizational performance.
c) To examine the extent to which horizontal communication affects organizational performance.
d) To examine how grapevine affects organizational performance.
1.4 RESEARCH QUESTIONS
The following research questions were formulated to guide this study:
a) What is the nature of information technology that affects the organizational performance?
b) What is the effect of vertical communication on organizational performance?
c) What is the extent at which horizontal communication affects organizational performance?
d) How does grapevine affects organizational performance?
1.5 STATEMENT OF HYPOTHESIS
Hi: There is no significant relationship between communication and organizational performance in the banking sector.
Hii: There is a significant relationship between communication and organizational performance in the banking sector
1.6 SIGNIFICANCE OF THE STUDY
This study is aimed at making people to be aware of the effective communication in achieving organizational performance in the banking industry. It will reveal effect of communication and organizational performance in Nigerian banking sector as a whole.
It will also assist those who want to setup banks and those who are contemplating on going into the profession especially students of higher institutions.
Finally, the information on this study will provides or serves as reference materials for the public and for the researchers in related areas.
1.7 JUSTIFICATION OF THE STUDY
This study examines the effect communication on organization performance in Nigerian banking on how communication relevance in the performance of an organization.
1.8 SCOPE OF THE STUDY
The study is limited to First Bank of Nigeria Plc operating in Lagos state. Specifically we shall cover First Bank operating in Victoria Island.