Effects of Employee Performance Management on Employee Learning and Development

within Banks in Nigeria

by
Lucy Surhyel Newman

A Dissertation Presented in Partial Fulfillment

of the Requirements for the Degree
Doctor of Business Administration

UNIVERSITY OF PHOENIX
October 2008

UMI Number: 3349280

Copyright 2008 by
Newman, Lucy Surhyel
All rights reserved
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ABSTRACT
This qualitative grounded theory study applied a systematic approach to exploring effects
of employee performance management on employee learning and development within the
Nigerian banking industry. Non-probability purposeful quota sampling yielded 29 oneon-one interviews with heads of human resources and officers with bank-wide
responsibilities for employee performance management and employee learning and
development drawn from 12 banks (50% of the industry as of June 2008). Two levels of
one-on-one interviews with 27 officers of 10 banks, word transcription of the interview
responses per participant, integration of the transcribed responses by common bank and
validation of integrated interview transcripts per bank yielded the primary data.
Application of the qualitative data analysis software, NVivo7 in primary data analysis
generated themes and patterns of practice, which indicated that effects of employee
performance management on employee learning and development are (a) assessment of
employee leadership capabilities or potentials, (b) validation of employees job role
competencies, and (c) derivation of employee learning and development needs. The study
proposed the integrated employee performance management as a phenomenon that could
lead to generation of a new theory.

DEDICATION
To my husband Ikechi and children Samson, Alfa, Solomon, Michael, Amarachi,
and Noble who had to make the needed sacrifice of quality time and family resources
required to enhance the attainment of my academic goals at the University of Phoenix.
Without their love and support, my academic aspirations would have remained just a
dream. I would like to dedicate this work to the loving memory of my late parents
Mallam Angagya Mshelbwala and Mallama Tani Zoaka who gave me the foundational
life values that I continually find to be timeless, as I travel along my leadership path. I
would also like to dedicate this work to my mentor, Dr. Gerald Weisenseel, who
encouraged, coached, and mentored me through the process from my first research course
on the program.

vi

ACKNOWLEDGMENTS
God has been faithful, and to Him be all the glory. I would like to thank Dr.
Gerald Weisenseel, Dr. Purnendu Mandal Dr. Bruce Brown, and Dr. Richard Schuttler
for their time and intellect invested in coaching and mentoring me through the
dissertation period. I would like to thank Dr. Purnendu Mandal for combining his role on
my committee with commitments at his new employer, the Lamar University. I would
also like to thank Dr. Richard Schuttler for selflessly volunteering to join the dissertation
committee at a very critical stage, when Dr. Bruce Brown could no longer play his role
on the team. Their combined positive attitudes at very difficult stages of the study have
been of immense value.
The following groups also provided additional support that gave valuable insights
to the study findings; (a) the 5 participants who took part in the pilot study; (b) the 29
participants in the main study for the time invested and experience; (c) the 12 banks that
gave consent for their 29 employees to participate in the study; (d) my doctoral colearners who have travelled with me along this leadership journey over the past five
years; (e) my on-boarding admissions counselor, academic advisors, and finance advisors
at the University of Phoenix; and (f) my former and present colleagues at all the
organizations that I have worked during the five year period. I have met extremely
intelligent students and faculty over the course of my study at the University of Phoenix
and some of the students have become family friends. Overall, I had tremendous support
from past and present employers, colleagues, and professional associates. The entire
experience has once more shown me that God is faithful and destiny works in very
enlightening ways!

vii

TABLE OF CONTENTS
LIST OF TABLES............................................................................................... xi
LIST OF FIGURES ............................................................................................xii
CHAPTER 1: INTRODUCTION ......................................................................... 1
Background ........................................................................................................... 2
Problem Statement ................................................................................................ 6
Purpose of the Study ............................................................................................. 7
Significance of the Study ...................................................................................... 8
Nature of the Study ............................................................................................... 9
Research Questions............................................................................................. 13
Theoretical Framework....................................................................................... 15
Related Transitions in Germinal Theories and Concepts ............................ 17
Search of an Extension to Body of Knowledge on EPMS .......................... 18
Definition of Terms............................................................................................. 22
Assumptions........................................................................................................ 23
Scope................................................................................................................... 23
Limitations .......................................................................................................... 24
Delimitations....................................................................................................... 24
Summary ............................................................................................................. 25
CHAPTER 2: LITERATURE REVIEW ............................................................ 27
Sources of Secondary Data ................................................................................. 29
Scope of Literature.............................................................................................. 29
Literature on Research Setting............................................................................ 30

viii

Gaps in Existing Research and Literature........................................................... 30

Study Context...................................................................................................... 31
The Concept of Developing Countries ........................................................ 31
Banking in Developing Countries ............................................................... 33
The Nigerian Banking Industry ................................................................... 37
Historical Overview ............................................................................................ 43
Research Categories............................................................................................ 46
Employee Performance Management.......................................................... 46
Popular EPM Tools and Processes .............................................................. 48
Multiple Perspectives on EPM .................................................................... 51
Employee Learning and Development ........................................................ 53
Learning and Development Relative to EPM.............................................. 54
Multiple Perspectives on Learning and Development................................. 55
Effects of EPM on Employee Learning and Development ......................... 58
Conclusion .......................................................................................................... 60
Summary ............................................................................................................. 60
CHAPTER 3: METHOD .................................................................................... 62
Research Design.................................................................................................. 62
Appropriateness of Design.................................................................................. 63
Research Environment ........................................................................................ 66
Population ........................................................................................................... 67
Sample................................................................................................................. 67
Informed Consent and Confidentiality................................................................ 68

ix

Data Collection ................................................................................................... 70

Primary Data Sources .................................................................................. 70
Secondary Data Sources .............................................................................. 71
Contextual Factors ....................................................................................... 72
Research Questions............................................................................................. 72
Pilot Testing Research Instrument ...................................................................... 73
Data Analysis ...................................................................................................... 75
Validity and Reliability....................................................................................... 78
Summary ............................................................................................................. 80
CHAPTER 4: PRESENTATION AND ANALYSIS OF DATA....................... 81
Data Collection Procedures................................................................................. 82
Sampling Procedures ................................................................................... 83
Research Questions...................................................................................... 85
Data Collection Procedure........................................................................... 86
Demographic Profile of Participants ........................................................... 89
Data Analysis Procedures: A Systematic Approach........................................... 92
Explanation of Systematic Grounded Theory Approach............................. 92
Application of Systematic Grounded Theory Approach ............................. 93
Application of Qualitative Data Analysis Software .................................... 95
Presentation of Data............................................................................................ 96
EPM ............................................................................................................. 97
Employee Learning and Development ........................................................ 97
Link between EPM and Employee Learning and Development ................. 98

Findings............................................................................................................... 99
EPM ............................................................................................................. 99
Employee Learning and Development ...................................................... 113
Link EPM and Employee Learning and Development.............................. 124
Summary ........................................................................................................... 133
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS.................... 137
Research Method .............................................................................................. 138
Significance of the Study .................................................................................. 140
Data Analysis .................................................................................................... 142
Assumptions, Limitations, and Delimitations................................................... 142
Discussion of Results........................................................................................ 144
Implications and Recommendations ................................................................. 162
Recommendations for Improved EPM Practice ........................................ 166
Recommendations for Further Research ................................................... 170
Summary ........................................................................................................... 172
REFERENCES ................................................................................................. 174
APPENDIX A: INFORMED CONSENT-PERMISION TO USE
PREMISES ....................................................................................................... 186
APPENDIX B: INFORMED CONSENT-PARTICIPANTS ABOVE 18 ....... 189
APPENDIX C: SURVEY INSTRUMENT - INTERVIEW QUESTIONS ..... 191
APPENDIX D: LIST OF DEVELOPING COUNTRIES ................................ 198
APPENDIX E: THE EIGHT ERAS OF BANKING IN NIGERIA ................. 200
APPENDIX F: LIST OF CONSOLIDATED BANKS IN NIGERIA.............. 206

xi

LIST OF TABLES
Table 1. Developing Countries of Africa, Middle East, and Asia .................... 198
Table 2. Developing Countries of Europe, America, and the Pacific............... 199
Table 3. The First Two Eras of the Nigerian Banking Industry ....................... 200
Table 4. The Third and Fourth Eras of the Nigerian Banking Industry............ 202
Table 5. The Fifth to Eighth Eras of the Nigerian Banking Industry ............... 204
Table 6. The Consolidated Banks as of January 1, 2006 .................................. 206
Table 7. Research Participant's Demographic Profiles ....................................... 89
Table 8. Participating Bank Profiles ................................................................... 90
Table 9. Nature of Participating Banks............................................................... 91
Table 10. Patterns of EPM Practice - An Overview ......................................... 100
Table 11. Patterns of EPM Practice - Improvement Opportunities .................. 102
Table 12. Patterns of Employee Learning and Development Practice - An
Overview........................................................................................................... 114
Table 13. Patterns of Employee Learning and Development Practice Improvement Opportunities .............................................................................. 115

xii

LIST OF FIGURES
Figure 1. The research map................................................................................. 12
Figure 2. Theoretical framework ........................................................................ 17
Figure 3. Literature map ..................................................................................... 28
Figure 4. The research design ............................................................................. 65
Figure 5. Findings from Pilot Study ................................................................... 75
Figure 6. Grounded theory coding ...................................................................... 77
Figure 7. Sampling Procedure............................................................................. 84
Figure 8. Data Collection Procedure................................................................... 88
Figure 9. EPM Causal Conditions .................................................................... 104
Figure 10. EPM Context ................................................................................... 105
Figure 11. EPM Intervening Conditions........................................................... 107
Figure 12. EPM Strategies ................................................................................ 109
Figure 13. EPM Consequences ......................................................................... 111
Figure 14. Findings From Axial Coding of EPM Practices.............................. 112
Figure 15. EL and D Causal Conditions ........................................................... 116
Figure 16. EL and D Context............................................................................ 118
Figure 17. EL and D Intervening Conditions.................................................... 119
Figure 18. EL and D Strategies......................................................................... 121
Figure 19. EL and D Consequences.................................................................. 122
Figure 20. Findings From Axial Coding of EL and D Practices ...................... 123
Figure 21 . Employee Performance Management Themes ............................... 125
Figure 22. Employee Learning and Development Themes .............................. 126

xiii

Figure 23. Observed Interface Between EPM and EL and D ........................... 127
Figure 24. Selective coding of the EPM Process.............................................. 128
Figure 25. Selective coding of the EL and D Process....................................... 129
Figure 26. Mutually Exclusive Startegies of EPM and EL and D .................... 130
Figure 27. Associated Outcomes of EPM and EL and D ................................. 131
Figure 28. Current EPM Concept in Practice 132
Figure 29. Integrated EPM Model .................................................................... 157
Figure 30. Implications of the Integrated EPM to HR Practice....................... 164

CHAPTER 1: INTRODUCTION
As general management and organizational leadership draw attention to human
resource management practice and organizational behavior, there has been a renewed
emphasis on the human resource management function within organizations from the
early 1890s through to the 21st century. According to Swart, Price, Mann, and Brown
(2004), given increasing awareness that ideas for innovation, quality and continuous
improvement, [including] other critically important inputs needed to compete in the
modern, highly competitive business world of today, come from people (p. 3), one
emerging concept within the human resource function is human resource development.
Human resource development explores issues of individual, group, and social learning, as
well as performance. The concept is widely viewed as a strategic aspect of the human
resource management system, consisting of employee performance management (EPM)
and employee learning and development as two subsets. The combination of performance
management with learning and development should enhance an organizations capacity to
translate strategy into results (Price 2004).
The Nigerian banking industry, with a history dating back to 1892, has three
distinct characteristics that were fundamental to the choice of the topic for the proposed
research study. The first characteristic is that the industry has been dynamic, with a
recorded growth rate of at least 24% from 1992 to 2006, while other major sectors of the
economy have experienced slow growth, stagnation, and in some instances, negative
growth (Central Bank of Nigeria, 2006). Second, the rate of bank failures has remained
high in developing countries, including Nigeria (Bank for International Settlement,
2004). For example, Sanusi traced the fluctuation in the number of banks within the

Nigerian banking industry from 36 in 1986 to 123 in 1992, and then to 89 as of July
2004, and down to 25 as of January 2006. Last, research findings from investigations
within the industry indicate that issues relating to human resources management practices
appear to have persisted across various reform eras of the Nigerian banking industry.
This paper presents a qualitative grounded theory research study within the
theoretical field of human resources management and human resource development. The
study sought a holistic approach to the topic, based on the General Systems Theory, the
Adult Learning Theory, and the Baldrige Criteria for Performance Excellence as
theoretical frameworks. The study sought to determine if EPM has an effect on employee
learning and development within the Nigerian banking system. Chapter 1 of the study
provides a broad overview highlighting background of the research problem, the purpose
and significance of the study to leadership, research questions the study sought to answer,
the theoretical framework within which the study investigated three research questions,
definitions of key terms used in the study, basic assumptions made, and foreseeable
limitations of the study.
Background
The importance of people as necessary contributors to the accomplishment of
organizational objectives appears to have been critical throughout management history.
Wren (1994) indicated that traditional economic theory identified land, labor, and capital
as factors of production, and present day human resources management evolved from the
staffing duties of managers who recruited, selected, trained, developed, compensated, and
appraised employees. Wren also explained that the human resource management tasks
were attracting, placing, rewarding, and retaining employees. Human resource

management roles were initially the responsibilities of supervisors, foremen, and line
managers. Specialist roles evolved as organizations grew and became more complex. A
central concern of the human resources management function throughout transitions in
management appears to have been productive work, and not personal happiness, because
the human resource management function seeks to integrate the human aspect of work
into the total task for every organization (Wren, pp. 376-377).
General observation indicates that the search for ways of ensuring optimal
productivity and effective management of employee performance has been a source of
management concern throughout management history. In terms of standards and
orientation, there have been a series of regulations regarding hiring practices, application
of employment tests, and other forms of assessments, compensation, pension, and
employee health, and safety amongst others. The evolution of the notion of strategic
management in the 1960s has increasingly brought about management focus on the
concept of human resource management as part of the overall corporate strategy
involving issues such as selection, development, rewards, and other related tasks as vital
parts of mission accomplishment in organizations (Wren, 1994, p. 337). Broadly
speaking, organizations require consistent levels of high performance from individual
employees in order to enhance overall corporate performance and survive in a highly
competitive environment (Newstrom & Davis, 2002, p. 139).
According to Tidd, Bessant, and Pavitt (2005), A core characteristic associated
with high performance organizations is the extent to which organizations commit to
employee learning and development (p. 484). However, general observations by
Boysen, Demery, and Shake (1999) appear to indicate that much of what is currently

known about performance measurement is based on individual case studies, practitioner

recollections, and anecdotal evidence. Glueck and Sashkin (as cited in Hall, Harder, &
Posner, 1989, p. 51) indicated that there have been considerable discussions about what
constitutes a good performance assessment among practitioners and academics, but there
appear to be insufficient empirical research on the subject. This apparent dearth of
empirical findings on EPM and related concepts could have far-reaching implication for
organizations, especially those in developing countries given increasing competition
triggered by globalization. Summers (2002) suggested goal alignment and performance
management as two processes that companies in the developing countries of Africa could
effectively use to compete in the midst of the challenges of globalization, competition,
and high-performance working.
Addison (2004) stated, Performance architecture is the design of the
organizational house where all three levels are integrated to smoothly support the raison
detre of the entity, be it a business, civil service, or non-governmental organization (p.
14). Performance architecture as presented shows the organizational house framework
whereby all three levels, namely workplace, workflow, and the worker, integrate to
support the organizations mission, vision, and strategy (Addison). The Addison
proposition relates to performance management and some aspects of benchmarking,
including (a) establishing appropriate goals, (b) monitoring performance through internal
and external feedback, (c) taking corrective action if needed, (d) communicating
appropriately, (e) allocating resources to support efficient achievement of goals, and (f)
making sure that all parts of the organization cooperate effectively to achieve the
organizations purpose (Addison).

The Nigerian banking industry is competitive and dynamic, with high corporate
mortality, amidst sporadic regulatory interventions and human resource skill deficiencies.
For instance, a recent mixed method study conducted within the Nigerian banking
industry and supported by the Nigerian Financial Institutions Training Center (FITC,
2000) investigated issues of human resources practices in the Nigerian banking sector.
The study traced the historical background of the Nigerian banking industry from 1892.
Findings from the FITC study indicated that the poor quality of human resources
processes in the Nigerian banking industry was the main cause of banking distress in
recent years, because the quality of human resources in relation to banking activities and
job demand in the industry was inadequate.
In a study of the relationship between human resource management and
performance in the Nigerian banking industry, Ekpe (2005) observed that the Nigerian
banking industry faced significant challenges including being in a competitive and
volatile economic environment. The Ekpe study broadly reviewed the human resource
function in areas of selection and recruitment, induction, training and development,
appraisal, and remuneration relative to overall bank performance. Participants in Ekpes
study were the CEOs and heads of human resources from 31 out of the previous 89
banks.
Ekpe (2005) did not investigate the details of the EPM process. Rather, the author
concluded that appraisals should clarify employees job objectives, objectively assess
performance, and provide developmental feedback and training needs in order to improve
employee performance (Ekpe). Findings of the research indicated a link between people
management practices and levels of bank profitability, productivity, and efficiency.

Observations in Ekpe (2005) indicated that a number of human resource practices

in the banks did not have any influence on organizational performance outcomes.
Assertions by Ebhohimen (as cited in FITC, 2000), Akinniyi (2002) and Ekpe indicated
that profits and deposit volumes have been key determinants of rewards and career
decisions as a means of EPM in most banks in Nigeria during the period leading up to
July 2005. Reported history of high mortality rate in the industry, inadequate quality of
bank personnel, and a dearth of empirically derived literature on human resource
practices with regard to increasing competition and high performance expectations by
key stakeholders further triggered the proposed research interests.
This study targeted 50 participants consisting of 25 CEO's and 25 heads of human
resource management within the former 25 banks that existed within the Nigerian
banking industry as of January 2006. The study attempted to review EPM systems in
practice as well as the effects of such EPM systems on employee learning and
development. As of the time of gathering data, there were only 24 banks in the industry,
as two banks from the former 25 had merged, thereby bringing the number of banks in
the Nigerian banking industry to 24. The purpose of the study was to reveal themes and
patterns that contribute to a systematic assessment and proposition of a new theory on
EPM for competitive advantage of banks in developing countries.
Problem Statement
Feltenstein (2000) reported, Bank failure is increasingly becoming an issue in a
variety of developing countries (p. 3). Akinniyi (2002) explained that in a bid to remain
competitive, banks in Nigeria have tended to place more emphasis on employee
performance indices, such as profits and deposit volumes, which appears to have

diminished the importance of other employee performance indices. In a similar

perspective, Babalola (1989) identified profitability and asset base as the traditional
measures of bank performance in Nigeria, a practice that appears to influence employee
performance goal-setting within banks. The Ebhohimen study (as cited in FITC, 2000)
confirmed the lack of literature on human resource management practices and staffing in
banks in Nigeria, as well as how most studies on the Nigerian industry have shied away
from human resource information despite the history on bank failure in Nigeria.
The industry consolidation from July 2005 to January 2006 appears to have
triggered increased demand for high corporate and individual performance, thereby
presenting new challenges to human resource management practitioners. Given that
effective and efficient performance of any organization is dependent on the performance
of its human resource (FITC, 2000 p. 54), this qualitative grounded theory research
study sought to address the problem of apparent need of an empirically derived theory for
designing EPM systems for competitive advantage of banks in developing countries.
Purpose of the Study
The study sought to investigate the themes and patterns of EPM systems in
practice within the 24 banks in the Nigerian banking industry and their effects on
employee learning and development. The study proposes a new theory that should lead to
a deeper understanding of the process of EPM for competitive advantage of banks in
developing countries. Further, results of the study are expected to assist Nigerian banks
improve their respective EPM systems. A grounded theory research design was
considered appropriate for providing a holistic approach to investigating the research
topic, especially given the different findings from existing research in subject area. The

research uses the General Systems Theory, the Adult Learning Theory, and the Baldrige
Model for Performance Excellence as theoretical frameworks. The study also attempted
to integrate the germinal systems theory and adult learning theories with related current
theories to develop perceptions needed to develop the categories of themes and patterns
for the new theory.
Significance of the Study
Kaplan (2003) indicated that as a company grows; establishing a system for
managing behavior and ensuring that the results are consistent with the goals and
strategies of the organization become very critical. According to Kaplan, for companies
to gain strategic advantage over competitors based on the strength of employees, leaders
of such organization need to manage the performance of the companys employees,
manage the relationship between employee performance and the organizations strategies
and goals. Kaplan also suggested that employee performance reviews should take place
on a regular basis. Grosse (2000) listed likely issues involved in competitive positioning
in a global environment, and called for transformational management, which involves (a)
identifying the future technological and competitive conditions in the industry, (b)
positioning the firm to be a leader in context, (c) informing stakeholders of the vision,
and (d) implementing the strategy to make it a future reality.
A review of the literature indicated that the Nigerian banking industry has
witnessed eight banking eras, with each era heralding a reform. Despite the various
reform programs, bank mortality has remained an issue and previous searches seem to
indicate that challenges with people management processes and practices require
attention. Given the peculiarities of the Nigerian Banking Industry, and possible

opportunities for growth of the industry, the significance of the research to leadership
could include (a) an expansion in the body of knowledge about human resource
management practices within the target population, (b) provision of feedback to bank
human resource practitioners in Nigeria on effective strategies for enhancing innovation
and high performance in the workplace, (c) enhancement of a higher degree of
consciousness for a balanced view to designing employee performance systems, and (d)
some degree of influence on policy and strategy for employee performance management
(EPM) in global banks with interests in developing countries, indigenous banks in
developing countries, institutions of learning with interests in designing and consulting
firms.
Nature of the Study
The study used a qualitative method grounded theory methodology to investigate
the effects of EPM systems on employee learning and development within the Nigerian
banking industry. The research revealed themes and patterns that enhance a systematic
assessment and proposes a new theory on the subject, EPM. The research population was
initially 50, and consisted of the 25 CEOs and 25 heads of human resource management
of the 25 banks licensed to transact banking business in Nigeria as of January 2006. The
CEOs of all 25 banks received letters that requested their consent to use the bank
premises to collect data as indicated in Appendix A between November 2006 and March
2008. In addition, each CEO and head of human resource management of each
consenting bank received letters of informed consents for participants of 18 years and
above as indicated in Appendix B. As of the time of collecting data, there were only 24
banks in the industry as a result of a merger between earlier existing banks in the

10

industry, so the research sample consisted of only banks that consented to data collection.
The process of requesting consent to use the bank premises to collect data from the CEO
of the bank was because of cultural practices and beliefs that give the CEO the liberty to
commit the organization and each employee or delegate that right of giving consent to
any officer of the bank.
The causative factor for this approach has cultural dimensions as explained by
Irabor and Omonzejele (2007):
The process of obtaining informed consent in a developing country (e.g. Nigeria)
is shaped by factors, which to the Western world, may be seen anti-autonomous:
autonomy being one of the pillars of an ideal informed consent. The mix of
cultural bioethics and local moral obligation in the face of communal tradition
ensures a mutually acceptable informed consent process. Paternalism is indeed
encouraged .and is buttressed by the cultural practice of customary obedience
to those above you: either in age or social rank. The local moral obligation
reassures .that those in authority will always look after others placed in their
care without recourse to lengthy discussions or signed documentation, while the
communal traditions ensure that the designated head of a family unit [or CEO of
an organization] has the honor and sole responsibility of assenting and
consenting.[thus the need for researchers] to update their knowledge of the
process of informed consent which should highlight socio-cultural practices
that may make this process different from the Western concept, but perfectly
acceptable in this setting. ( 1)

11

Creswell (2002) described qualitative research as methodologies used to study

research problems requiring an exploration and understanding of a central phenomenon
(p. 50). A grounded theory approach was appropriate for exploring themes, concepts
directly from primary qualitative data, given apparent lack of empirically derived
literature on the subject and the research environment, other research, and existing
theoretical frameworks by analytical induction (Bogdan & Taylor, 1998). The chosen
research design was also appropriate and capable of enabling a holistic description of the
topic because the research objective aligned with the description of the grounded theory
approach, purpose, and outcome. Figure 1 presents the research map used in this study.

12

Effects of Employee Performance Management Systems on

Employee Learning and Development within Banks in Nigeria

Primary Data
(Field Research)

Existing Data
On Participants

Secondary Data
(Literature Review)

Participant
Consents

Subject Matter

Study Context

Employee
Performance
Management

Employee
Learning &
Development

Design research instrument

Pilot test research instrument & modify (if required)
Conduct 1st interview & transcribe findings
Conduct 2nd interview to confirm findings in 1st interview
Analyze Data & Communicate Research Findings

Figure 1. The research map.

Developing
Countries

The
Nigerian
Banking
Industry

13

Research Questions
Research questions in a qualitative research study are usually open ended and
general (Creswell, 2002). As such, the research questions that guide the study sought to
(a) understand the basic issues surrounding performance management systems in practice
from each participating organizations point of view, and (b) understand the holistic EPM
procedures and dynamics involved in each organization. Having considered the systemic
challenges within the Nigerian banking industry, the nature of the study was due to a
need to explore the central phenomenon, EPM. The interview questions explored an indepth investigation, and they evolved from factual questions to questions of description,
composition, causality, and relationship questions (Meltzoff, 1998). The process of
aligning interview questions with research questions sought to facilitate extraction of
optimal primary data quality, thereby minimizing personal bias and subjectivity in order
to enhance internal validity of findings (Meltzoff). The three research questions and
corresponding sub-questions answered in the study are:
RQ1. Does the participating bank have an EPM system in place? If yes, in what form
does it exist?
a) Does the bank have an EPM system? If yes, how did the existing EPM system
emerge?
b) What are the processes involved in delivering the existing EPM system, and
who are those responsible for delivering the EPM system?
RQ2. Does the participating bank have an employee learning and development
practice in place? If yes, in what form does it exist?

14

a) Does the bank have an employee learning and development practice? If yes,
how was the existing employee learning and development practice derived?
b) What are the processes entailed in delivering the existing employee learning
and development practice, and who are those responsible for delivering the
employee learning and development practice?
RQ3. Is there an interface between the existing EPM system and employee learning
and development practice? If yes, what is the effect of the EPM system on the
employee learning and development practice?
a) Is the employee learning and development practice linked to the existing EPM
system? If yes, what value does the bank derive from the interface between
the existing EPM system and employee learning and development practice?
b) What employee learning and development processes depend on the outcomes
of the existing EPM system?
RQ1 sought to investigate the participating banks situation in terms of EPM
system in practice, and has two sub-questions. The sub-questions further investigated (a)
issues surrounding the performance management system in practice and (b) procedures
involved in delivering the EPM process from initiation to feedback. RQ2 explored the
participating banks situation in terms of employee learning and development practice
and has two sub-questions as well. The two sub-questions investigated (a) issues
surrounding employee learning and development strategy in practice, and (b) procedures
involved in employee learning and development from planning to delivery and postlearning activities. RQ3 explored the participating banks situation in terms of the
interface between employee performance management and employee learning and

15

development practice, and effects of the former on the latter. RQ3 has two sub questions,
which sought to establish (a) issues showing value derived from the existing linkage
between the EPM system with employee learning and development and (b) procedures
indicating effects of EPM system on employee learning and development.
The questionnaire presented in Appendix B consists of open-ended questions that
sought to facilitate the process of extracting the themes and patterns of practice within the
participating banks. The primary data collection process entailed administering the
questionnaire at two consecutive levels of one-on-one interview sessions, thus allowing
for triangulation.
Theoretical Framework
Organizations are diverse and complex, but have some basic elements that are
similar to most organizations, and these include the organizations social structure,
participants or social actors, goals, technology, and environment (Scott, 2003).
Participants or social actors within organizations need clearly defined strategic directions,
and according to Bowditch and Buono (2001), The only sustainable competitive
advantage that organizations have is their intellectual capital, the commitment, and
competence of their members (p. 117). In a related perspective, Kirby and Goodpaster
(2002) stated, Leaders within organizations need to have a clear vision of what can and
should be done, in order to effectively communicate same to others (p. 13). However,
existing and new chief executive officers often fail to re-design their organizations in
terms of its work systems, processes, human resource systems, culture and leadership
behavior to enable new ideas and techniques to emerge (Chowdhurry, 2003, p. 314).

16

EPM is an aspect of management within the human resource management domain

that includes directing human behavior in a collaborative and non-coercive manner.
Benardin (1989) cited Schulers position that human resource management has become
an integral part of the strategic management process in some of the most successful
organizations. However, Benardin also cited Butler et al. and Fombrum et al., who
indicated that, despite transforming strategic role of human resources, the role of
individual employee performance appraisal has remained unclear. Performance
management includes activities to ensure that effective and efficient goals achievement
on organizational, departmental, or individual level in EPM.
Some benefits of performance management are that the process (a) enhances
focus on results rather than behaviors and activities, (b) is a tool for aligning processes
and responsibilities to overall goals, (c) cultivates a system wide long-term view of the
organization, and (d) could lead to meaningful measurement matrices (McNamara, n.d.).
Performance management as a concept relates to various theories across strategic
management, organizational behavior, organizational development, business ethics, and
leadership. For purposes of the research, the focus was EPM, within the germinal General
Systems Theory and Adult Learning Theory with extensions to recent perspectives by
Kuhn (1974) and Speck (1996). The study sought to incorporate the germinal core
concepts and recent perspectives into the Baldrige Model for Performance Excellence
(2007), and then extended the derived core concepts based on themes and patterns of the
study to develop and propose a new theory on EPM, as explained in Figure 2.

17

General Systems Theory

(1956)
Khun (1974)

Malcolm Baldrige
Model for Performance
Excellence (2007)

Outcome of grounded
theory study
(2008)

Speck (1996)
Adult Learning Theory
(1970)

Figure 2. Theoretical framework.

Related Transitions in Germinal Theories and Concepts

From the intellectual reawakening of the industrial revolution era that saw the
emergence of scholars like David McCallum (as cited in Wren, 1994), Frederick Taylor
(as cited in Stoner, 1995), the Hawthorne Studies (as cited in Wren), Elton Mayo (as cited
in Wren), and Gilbreth (as cited in Chyung, 2005), EPM has been a source of concern to
leadership of organizations. Chyung, in a recent study, traced human performance
technology from Taylors scientific management theory of 1911 to Thomas Gilberts
Behavior Engineering Model of 1978, and indicated that although Frederick Taylor and
Thomas Gilbert worked many years apart, there appear to be astounding similarities
between their work in terms of systematically analyzing and engineering human behavior

18

to produce desirable performance outcomes. Expositions in Wrens (1994) Evolutions of

Management showed,
Within the practices of the past, are lessons of history for tomorrow; a flow of
events and ideas that link yesterday, today and tomorrow in a continuous stream.
People occupy but one point in this stream of time; and can see the distant past in
a fairly high degree of clarity, but as we approach the present, our perspective
becomes less clear. The future must be a projection and a tenuous one at best.
New ideas, subtle shifts in themes, and emerging environmental events all bring
new directions to evolving management thought. (p. 427)
Search of an Extension to Body of Knowledge on EPMS
The study is within the human resource management domain, and sought to
explore the effects of EPM systems on employee learning and development within banks
in Nigeria. The proposed study has the General Systems Theory (1956), the Adult
Learning Theory (1970) and the Baldrige Model of Performance Excellence (2007) as
theoretical frameworks. The general systems theory and the adult learning theories are
germinal theories. As such, the study attempted to link the germinal theories with related
current theories and models in order derive a new theory leading to an understanding of
EPM within banks in Nigeria. Given (a) transitions in the Nigerian banking industry since
inception in 1892, (b) the three key characteristics of the industry which led to the choice
of the proposed topic and (c) the research objective, a holistic view of the entire Nigerian
banking industry and a more detailed review of each bank participating in the study
appeared most appropriate.

19

Incidentally, Bertalanffys (1972) General Systems Theory took a holistic view of

organizations, and defined a system as a set of elements standing in interrelation among
themselves and the environment. The description of a system as portrayed in the General
Systems Theory aptly describes the overview of how banks exist within the Nigerian
banking industry. In furtherance to the general systems theory perspective, Kuhn (1974)
affirmed that a common element of all systems is that knowing one part of a system
enables knowledge about another part, and thus systems can be either controlled or
uncontrolled. In controlled systems, changes are responses to changes in information.
Kuhn referred to this as the detector, selector, and effector functions of the system. The
detector is concerned with the communication of information between systems. The rules
that influence decisions in the system are defined ad the selector, whilst the manner of
crystallizing transactions between systems is the effector. Khun's model stresses that the
role of decision is to move a system towards equilibrium.
The Nigerian banking industry is part of the Nigerian Financial System and
constitutes a system consisting of the Central Bank of Nigeria (CBN), the regulatory
agency, and the 24 banks used in this study. Most interventions of the Central Bank of
Nigeria can be synonymous in concept to Kuhns model, which stresses that decisions in
a system are aimed at moving the system to an equilibrium, (inclusive of EPM). For the
purposes of the study, EPM systems included processes for (a) setting goals or work
standards, (b) assessing performance relative to those standards, and (c) providing
feedback to employees so they can improve their performance and developing their
optimal capabilities and skills (Kaplan, 2003). The study took a systemic view to (1) the
participant banks as organizations, (2) the activities and platforms that constitute

20

activities involved in EPM, and (3) expected values from an employee learning and
development perspective.
In line with provisions of the Nigerian Labor Law, bank employees are expected
to be working adults. An employee learning and development concept relevant to EPM is
the Knowles (1970) Theory of Andragogy (adult learning theory) which indicated that (a)
adult learners should be involved in planning and evaluating their learning; (b) adults
appreciate past experience, and even mistakes provide basis for learning activities; (c)
adult learning materials should have immediate relevance to their job or personal life; and
(d) adult learners prefer problem-centered rather than content-oriented learning. Speck
(1996) leveraged on propositions of the Adult Learning theory and gave critical factors
for effective adult learning as (a) the need to structure the learning in a way that allows
support from peers, (b) the importance of eliminating any feeling of fear of being judged
in adult learners during learning, (c) the need to allow adult learners to demonstrate
learning and receive regular constructive feedback, (d) the importance of creating
opportunities for small-group activities to enable adult learners to share and reflect on
their experiences, and (e) the need to accommodate diversity, facilitate learning, and
providing coaching opportunities.
As firms around the world now have increasing access to domestic and external
markets in many countries and currencies, financial markets are now highly linked on a
global scale (Grosse, 2000). In a similar perspective, increasing globalization of the
workforce brings a dramatic expansion of the scope of workforce management, even as
some of the participating banks in the survey have locations outside Nigeria, and in some
cases, outside Africa. The Nigerian banking industry appears to be getting more

21

competitive, even as stakeholders make higher demands for corporate and employee
performance.
The Baldrige Model for Performance Excellence (2007) consists of seven criteria,
designed to help organizations use an integrated approach to organizational performance
management that could result in (a) delivery of continued improvement in customer value
and contributing to marketplace success, (b) improvement of overall organizational
effectiveness and capabilities, and (c) enhancement of organizational and personal
learning. Core values and concepts foundational to the seven Baldrige criteria include
visionary leadership, customer-driven excellence, valuing employees and partners,
management by fact, and a focus on results while creating value. The Baldrige criteria for
performance excellence are (a) leadership; (b) strategic planning; (c) customer and
market focus; (d) measurement, analysis, and knowledge management; (e) human
resource focus; (f) process management; and (g) business results.
The study sought a holistic approach to EPM. The 2007 Baldrige Model for
Performance Excellence provides a recent concept that incorporates aspects of (a) the
General Systems Theory as presented by Bertalanffy in 1956 and Khun in 1996 and (b)
the Adult Learning Theory as presented by Knowles in 1970 and Speck in 1996, thereby
giving an opportunity to expand the body of knowledge on the subject within the
proposed research environment. The research leverages on theoretical concepts and
research findings on the central phenomenon within the research environment and
proposes a new theory that seeks to enhance the understanding of EPM systems from
themes and patterns of practice derived from the Nigerian banking industry.

22

Definition of Terms
Developing Countries: countries with limited technological, physical, and
qualified human resources. Developing countries also have inadequate infrastructure,
economic and political instability, limited access to social services such as good
education and healthcare, high population growth, young workforce, low literacy and
numeric rates, and more strict gender roles (Kanungo & Jaeger [as cited by Aycan,
2002]).
Employee Learning and Development: a process or set of activities aimed at
assisting that individuals acquire knowledge, skills, and attitudes necessary for effective
performance of a specific task or job. Within the context of work in modern day
management, employee learning and development is a continuous process that starts at
the point of employment and progresses throughout employees career (Alo, 1999).
Performance Management: a systematic approach to management of people using
performance goals, measurement, feedback, and recognition as a means of motivating
them to realize their maximum potential. Performance management embraces all formal
and informal methods adopted by an organization and its leaders to increase commitment,
individual and corporate effectiveness (Alo, 1999).
Performance Management Systems: a system that includes processes for (a)
setting goals or work standards, (b) assessing performance relative to those standards, and
(c) providing feedback to employees so they can improve their performance and develop
their optimal capabilities and skills (Kaplan, 2003).
Technology Integration: a concept that views technology as an instructional tool
for delivering subject matter in curriculum already in place (Woolbridge, 2004).

23

Assumptions
The study investigated EPM systems in practice within banks in Nigeria and their
effects on employee learning and development. The initially targeted target population
was 50 participants consisting of 25 CEOs and 25 heads of human resource management
drawn from the 25 banks in the Nigerian banking industry existing as of January 2006.
However, as of April 2008, there were only 24 banks in the Nigerian banking industry,
which reduced the research population to 48 participants consisting of 24 CEOs and 24
heads of human resources management. Three basic assumptions that underpinned the
study are (a) no research would be completed on the same topic, within the research
environment and population, during the course of the proposed research; (b) the size of
the Nigerian banking industry would remain at 25 banks given that the banking industry
was undergoing reforms and the Central Bank of Nigerias focus as of then was
consolidating reforms rather than allowing new entrants into the industry; and (c) that the
study participants would trust the research process and provide accurate data during data
collection in spite of intense competition as the researcher is not an employee of a
competitor bank.
Scope
As of January 2006, the research population target was 50 participants that would
consist of 25 CEOs and 25 heads of human resource management of the 25 banks
operating within the Nigerian banking industry. However, the target population reduced
to 48 participants made up of 24 CEO and 24 heads of human resources due to changes in
the industry during data collection. The sample consists of only CEOs and heads of
human resource management of banks that consented to data collection at the banks in

24

writing. The study sought to understand the perceptions and practices on EPM and
employee learning and development within the Nigerian banking industry in order to
develop the categories of themes and patterns needed to propose a new theory on EPM.
The study entailed entail extensive documentary research of germinal sources to
examine the evolution of concepts related to EPM and employee learning and
development. Data collection entailed administration of a questionnaire that consisted of
open-ended questions. The questionnaire as contained in Appendix C was pilot tested to
validate applicability and then administered at two levels of one-on-one interviews with
some degree of triangulation to enhance the validity of the findings. Chapter 3 explains
the data collection procedure, approach to data analysis, sampling methodology, and
rationale.
Limitations
One limitations of the research design was that, given that intense competition
and on-going reforms in the Nigerian banking industry, and that most banks were
undergoing various forms of organizational restructure and development initiatives, not
all banks would be able to participate in the study. Another limitation of the study was
that the research population would be limited to banks in Nigeria and the research
findings cannot be applicable across all developing countries. If the research population
were to extend to other developing countries in Africa and other continents, the research
findings could differ.
Delimitations
Even though the research population initially consisted of 50 participants
consisting of 25 CEOs and 25 heads of human resource management of all the 25 banks

25

in the Nigerian banking industry as of January 2006, the study sought to investigate only
banks that consent to data collection at their premises. A recent consolidation in the
industry had reduced the number of banks from 89 as of July 2004 to 25 as at January
2006. As of April 2008, there were 24 banks. As such, the study entailed data collection
from only a sample of CEOs and heads of human resource management of the 24 banks
within the Nigerian banking industry as of time of data collection. The study focused on
EPM systems, as well as employee learning and development alone. As such, the study
did not investigate other aspects of human resource management and human resource
development, such as recruitment, career management, and successions planning, that
have implications on employee performance outcomes.
Summary
According to (Wilmore, 2004), given increasing effects of globalization on
competition, there appears to be a growing emphasis on performance improvement in
organizations. Executives are placing more emphasis on accountability for results from
human resources professionals, while work environments are increasingly placing more
importance on corporate and employee performance (Wilmore). Incidentally, apparent
paucity in empirically derived research findings on the subject of EPM, especially within
the proposed research environment given systemic industry challenges, tended to confirm
the Glueck (1982) and Sashkin (1981) assertion (as cited by Hall et al., 1989, p. 51) that
most of what is currently known about the phenomenon, [EPM] is based on nonempirical findings. The study used a qualitative grounded theory methodology based on
a systematic design and focused on the effects of EPM systems on employee learning and
development.

26

The study explored EPM systems within 50% of banks in the Nigerian banking
industry and their effect on employee learning and development in order to derive and
propose a theory which seeks to enhance the level of understanding of EPM for
competitive advantage of banks in developing countries. The literature review in chapter
2 of the proposed study builds on the overview provided in chapter 1, and identifies and
discusses the research categories. The literature review also addresses multiple
perspectives on each category, and identifies unsolved problems and challenges of EPM
systems, thereby confirming the need for additional research.

27

CHAPTER 2: LITERATURE REVIEW

This qualitative grounded theory study explored EPM systems in practice within
the Nigerian banking industry, as well as its effects on employee learning and
development. The study reviewed current EPM and employee learning and development
practices in order to propose a new theory that seeks to enhance a deeper understanding
of EPM for competitive advantage of banks in developing countries.
Chapter 1 was the introduction section of the study and provided a broad
overview of the study, highlighting (a) peculiarities of the proposed research environment
and population, (b) existing research findings on issues raised, (c) the research problem,
(c) the research categories, (d) the research questions, (e) basic assumptions underlying
the study, (f) limitations and delimitations of the study, and (g) broad definition of key
terms used in the study.
Chapter 2, the literature review, extends presentations made in chapter 1 by
providing information on sources of secondary data, scope of literature, and study
context. The chapter chronicles a historical overview of the proposed research subject,
and reviews secondary data on the perceptions that relate to the research problem in line
with the general research question patterns indicated in chapter one. The literature map,
a figure that displays the literature (Creswell, 2002, p. 110), further clarifies
arrangement of issues within the chapter (see Figure 3).

28

Sources of secondary data, scope of literature, literature on proposed

research setting

Study Context

Concept of developing countries (Aycan, 2002)

Banking in developing countries (Azamesu, 2005)
The Nigerian banking industry (Soludo, 2004 & 2007)

Historical Overview

Industrial revolution era (Wren, 1994)

Scientific management era (Wren, 1994)

Social person era (Scot, 2003)

Human relations era (Wren, 1994)

Research Categories (Creswell, 2002)

Employee performance management

Employee learning and development

Weisenseel, 1991
Alo, 1999
Murray, 2004
Kaplan, 2003
Gliddon 2004
Keller, 2004
Woolbridge 2004

Weisenseel, 1991 and Wren, 1994

Berger, 2001 and Bowdicth &
Buono, 2001
Schermerhon, 2003
OConnor`& Ayen, 2005
Mcfarlend & Sweeney, 2006
Stewart & Fern, 2006

Effect of employee performance management on

employee learning and development
Alo, 1999 and Ramlall, 2004
Gliddon, 2004 and Hill, 2005

Figure 3. The literature map.

29

Sources of Secondary Data

The sources of secondary data explored for the literature review include (a) The
University of Phoenix Online Librarys major article databases such as EBSCOhost,
InfoTrac OneFile, ProQuest, with ProQuest Dissertations and Thesis full text; (b) some
local Libraries in Nigeria including the Financial Institutions Training Centre Library, the
Nigerian Institute of Management of Nigeria Library, and the Chartered Institute of
Personnel Management of Nigeria Library in Lagos, Nigeria; (c) the International Society
for Performance Improvement (ISPI) database; (d) the International Society for
Performance Improvements quarterly journal, Performance Improvement; (e) the
Society for Human Resource Management (SHRM) database; (f) recommended texts of
University of Phoenix School of Advanced Studies, and (g) internet-based search engines
like Google.com.
Scope of Literature
In qualitative research, the literature review plays a less substantial role because
even although the author may review literature to show justification for the research
problem, the literature does not provide a major direction for the research questions
(Creswell, 2002, p. 53). Therefore, the scope of literature for the study covered (a)
evolution of management history, (b) germinal studies on foundational management
theories, (c) chronological evolution of EPM systems, (d) theoretical framework for the
proposed study, (e) germinal research on research topic and variables, (f) research
findings on topic and research categories, and (g) emerging trends in issues including
management, leadership, organizational behavior.

30

Literature on Research Setting

The research setting is Nigeria, a developing country in Sub-Saharan Africa.
Applicable literature provides a description of the concept of developing countries and
then describes the Nigerian banking industry from inception in 1982 to 2008. Chapter 2
provides a natural progression into issues that contributed to the decision to explore the
research questions described in chapter one.
Gaps in Existing Research and Literature
Aycan (2002) explained that according to the United Nations, the term
development mainly denotes economic advancement. When describing developing
countries, terms often used include underdeveloped countries, least developed countries
(LDCs), third world countries, transitional economies, newly industrialized countries
(NICs), or emerging markets (Aycan). Until recently, a majority of publications on
developing countries appear to emanate mainly from international donor agencies of the
World Bank Group, the United Nations, and other developmental or capacity-building
publications on developing countries.
However, with increasing globalization, apparently stagnating economies in the
developed world are expanding to the newly industrialized countries or emerging
markets, which mostly consist of developing countries. The Nigerian banking industry is
increasingly experiencing effects of globalization in almost all aspects of the industry,
and business prospects appear promising. However, researchers on the Nigerian banking
environment tend to have shied away from human resources information, despite the
history of bank failure in Nigeria highlighted in chapter 1.

31

Study Context
The study examined the concept of EPM in order to discover practices that could
give competitive advantage to banks in developing countries. The study emanates from a
review of related literature within the global banking industry and then focuses on
peculiarities of banking in developing countries, with particular reference to the Nigerian
banking industry. The study context highlights (a) the research environment, (b) the
population, (c) relevant literature on research setting, and (d) Nigeria as a developing
country. The Nigerian banking industry, which has a history that dates back from the
1890s, consisted of 25 banks as of January 2006 and 24 as of April 2008. Key
characteristics of the industry range from intense competition to high bank failure rates,
presence of local and foreign banks competing in the domestic banking industry, and high
performance working environments.
The Concept of Developing Countries
Aycan (2002) explained that defining developing countries is a challenging task
because the term developing is both pejorative and ambiguous. The author indicated,
According to the United Nations, the term 'development' mainly denotes
economic advancement. The two major distinctions between 'developing' and
'developed countries are that the developed world countries, on average, have a
higher per capita income than the developing world. Developed countries rank
higher on United Nations' Human Development Index (including indices of good
education, healthcare, and Quality of life). One would come across other terms to
describe developing countries as Under-Developed Countries, Least Developed

32

Countries (LDCs), Third World Countries, Transitional Economies, Newly

Industrialized Countries (NICs), or Emerging Markets. ( 3)
The Economic Intelligence Units (EIU) 2007 publication, The World in 2008,
forecasted a global Gross Domestic Product (GDP) of 4.6% in 2008, down from 5.1% in
2007, with most activities in developing countries, which as a group will grow by more
than 7%, with China, India, and Russia leading the change. Projections for Nigeria
indicate GDP growth of 7.8% with an inflation rate of 7.6% and population of 149.5
million (EIU). The projection for Nigeria recognized factors such as high oil prices which
will underpin growth, but with the larger economy dominated by agriculture, a dormant
sector in Nigeria. The EIU noted that globally, for the financial services sector, the 20022007 5-year period of buoyant lending enhanced global liquidity and credit cycle will
start to decline, and the effects will be felt in 2008. However, financial service
organizations in emerging economies appear to be isolated from the developments in the
American and European markets and should make rapid strides in 2008 and beyond.
Findings from Luther, Sinn, and Pitmans (2005) analysis of a 5-year study of
global banking industry by the Boston Consulting Group (BCG) reported that the global
banking sector outperformed overall markets and delivered an average total shareholder
return (TSR) of 7.4%, even as markets worldwide suffered negative returns. The
highlights of this finding coincides with the reported 24% growth in Nigerian banking
industry, compared to stagnation and retrogression in other real sectors of the Nigerian
economy. Luther et al. indicated that the challenge for banks to succeed globally is
managing growth. Stock market top performers need to enhance their ability to measure
performance, grow organically, make successful acquisitions, and improve capital

33

allocation. For banks to manage growth, Luther et al. recommended (a) developing
sophisticated customer relationship management (CRM) approaches, (b) achieving higher
customer penetration, (c) employing smart channel mixes, (d) exploiting niche
opportunities, and (e) leveraging superior products and processes to attack markets
aggressively. Tables 1 to 3 (see Appendix C) show the global list of developing countries
by region.
Banking in Developing Countries
Palepu, Healy, and Bernard (2003) indicated, Financial intermediaries are
organizations that focus on aggregating funds from individuals and corporate
organizations (p. 1). Hanson (2003) described the link between economic factors within
the business environment and the banking industry and explained that during the 1990s,
commercial bank deposits and capital rose relative to gross domestic product (GDP) in
major developing countries. Hanson further explained that rising GDP ratings largely
reflected declining inflation and financial liberalization of banking institutions. However,
Azamesu (2005) explained that in theory, liberalization of the banking system means
opening the domestic financial market for foreign participation. The author argued that
global banking has a positive impact in the broad context of becoming innovative through
customer satisfaction, cost reduction, and improvement in product and services. Global
banking also results in risk and activity expansion, especially in poor countries.
However, weak regulatory and supervisory environment partially accounts for
foreign banks lack of effective contribution to host emerging markets, especially in SubSaharan Africa. Bridsall (as cited by Azamesu, 2005) indicated that even though the
process of internationalization of the banking system dates back to the 1970s, recent

34

globalization trends compel increasing incidences of integration of economies via

information technology, goods, and services. The Internet, Automated Teller Machines
(ATMs), credit cards, and debit cards are primary channels for globalization of banking
services. Caprio (1997) cautioned bank practitioners that widespread bank insolvency has
been relatively commonplace and quite costly in the last two decades. For instance, the
scope and cost of the crisis have been enormous in many developing countries, and
usually entailed job losses and personal insolvencies by shareholders in environments of
low-income opportunities.
Many countries have deployed various initiatives to enhance public knowledge
about banks and the business of banking. For example, in Chile, banks are required to
have bi-annual ratings from recognized rating agencies. In view of increasing public need
for information on the state of banks, there has been an increase in the number of
countries making efforts to upgrade banking supervision within their respective
industries. For instance, Bies (2002), in a speech at The World Bank Groups Finance
Forum, indicated that the evolution of the banking industry has rendered traditional pointin-time transaction validation and valuation-based supervisory system inadequate. Many
banks in developing countries have had difficulties as result of inadequate controls in
recent years, particularly banks from countries with weak supervisory oversight, thereby
causing such countries significant losses.
Learning points for banks in developing countries are that basic control functions
are critical to all organizations, no matter their size, and that banks operating overseas
need carefully and continuous monitoring and regulation. Creane, Goyal, Mobarak, and
Sab (2003) indicated that as countries in the Middle East and North Africa consider ways

35

of promoting more rapid and lasting economic growth, further financial sector reforms
should have greater prominence. Creane et al. explained further that a well-developed
financial system promotes efficiency and growth by reducing information, transaction,
and monitoring costs. A statement from a representative of The World Bank (as cited by
Hersh & Weller, 2002) addressed the issue that changing rules to allow greater
participation of multinational banks in developing countries will result in the efficiency
and stability needed to attract growing levels of private capital for development. Hersh
and Weller concluded that while investment flows are welcome developments, increased
international financial competition deserves more scrutiny.
Soludo (2004) described the logic for the recent series of reforms in the Nigerian
banking industry and cited organizations size in terms of assets and capital as a critical
success factor for organizational success in an increasingly global finance industry.
Soludo also explained that, in view of recent developments in the global finance industry,
no country could afford to operate in isolation. For instance, the first few years of the 21st
century have witnessed the creation of the world's mega banking groups through mergers
and acquisitions. Attributable factors for the trend in multi-level merger and acquisitions
in the finance industry include prospects of cost savings due to economies of scale as
well as aspirations for an efficient allocation of resources, enhanced efficiency in
resource allocation, and risk reduction arising from improved management.
For example, the United States has had over 7,000 cases of bank mergers since
1980, and the same trend has occurred in the United Kingdom and other European
countries (Soludo, 2004). In 1997 and 1998, over 2,003 bank mergers and acquisitions
took place in Europe; in 1998, a merger in France resulted in a new bank with a capital

36

base of US $688 billion. The merger of two banks in Germany in the same year created
the second largest bank in Germany, with a capital base of US $541 billion.
Consolidation has become prominent as banks strive to become more competitive
and resilient. In emerging markets, including Argentina, Brazil, and Korea, the banks are
attempting to reposition their operations to cope with challenges of an increasingly
interconnected global banking system (Soludo). The Korean banking industry now has
only eight commercial banks with about 4,500 branches after several rounds of
consolidation. Between 2000 and 2005, Malaysia experienced its first round of
consolidations that led to the industrys transformation from 80 banks to 13 banks within
one year. Banks in Malaysia were required to raise their capital base from about US $70
million to US $526 million within one year (Soludo).
Enduring superior performance requires flexibility, innovation, and speed to
market. Competitive advantage stems primarily from internal resources and capabilities
of individual organizations, including firms ability to develop and retain a capable and
committed workforce. Hayatu-Deen (2002) stated,
Organizations and countries who understand the new world economy and who
grasp [emerging] interdependent and interconnected nature, who master the art
of positioning themselves to take advantage of opportunities and deal with the
threats posted by such a world can lay claim to prosperity and greatness. ( 3)
There has been a renewed emphasis on strategy and the importance of effective human
resources management systems in the 1990s, even as organizational leadership expects
improvements in individual employee performance to automatically enhance
organizations performance and competitive positioning (Becker, Huselid, & Ulrich,

37

2001). The Nigerian banking industry has undergone various reforms from inception, and
the recent industry consolidations of 2005 to 2008 appears to have given banks in the
Nigerian industry an opportunity to grow and expand beyond the Nigerian market.
The Nigerian Banking Industry
The research population consists of banks operating within the Nigerian banking
industry as of April 2008. There were 89 banks in the industry as of July 2004, which
consisted of indigenous and foreign banks with a capital base of less than US $10 million
each and an aggregate of about 3300 branches (Soludo, 2004). As of December 31, 2005,
there were only 25 banks in the industry, and as of April 2008, there were 24 banks. The
Nigerian financial system consists of financial institutions, markets, and arrangements
that serve customer and developmental needs. Financial institutions within the system
include (a) banks, (b) discount houses, (c) primary mortgage institutions, (d) community
banks, (e) finance companies, (f) bureau-de-changes, and (g) development finance
institutions.
The main supervisory body for the Nigerian Finance System is the CBN, which
has two supervisory departments: banking supervision and other finance institutions. The
Banking Supervision Department is responsible for supervising banks and discount
houses, while the Other Financial Institutions Department supervises community banks
and other non-bank finance institutions. The two departments supervisory processes
entail onsite and offsite arrangements. These departments operate within principal
banking legislations in Nigeria, which include the Central Bank of Nigeria Act 24 of
1991 and the Banks and Other Finance Institutions Act 25 of 1991 (Central Bank of
Nigeria, n.d.).

38

The history of modern banking in Nigeria is traceable to 1892, with the

establishment of the African Banking Corporation (FITC, 2000). A high level review the
chronology of developments in the Nigerian banking industry from inception in 1892 to
2006 indicate eight eras namely: (a) monopoly of foreign banks era, (b) indigenous
attempt at modern banking era, (c) regional governments incursion era, (d) postindependence era, (e) federal government dominance era, (f) state government ownership
era, (g) private ownership era, and (h) consolidation era. Tables 3 to 6 (see Appendix C)
show the various banks and their years of establishment and failure based on these eight
eras. Sanusi (as cited by FITC, 1992), a former Governor of the CBN, described the first
seven eras in the paper Developments in the Banking and Finance Industry: Institutional
Framework 1970 to Date, presented at the 1992 Bank Directors Seminar held in Lagos,
Nigeria.
According to Sanusi (as cited by FITC, 1992), the monopoly of the foreign banks
era lasted from 1892 to 1930. The period indicated total dominance of foreign banks,
with commercial banking activities beginning in 1894, when the Bank of British West
Africa (BBWA), now the First Bank of Nigeria, began operations. Barclays Bank, now
Union Bank of Nigeria, then joined the industry in 1917. Both banks still existed as of
January 2006. The monopolistic stance of foreign banks that tended to focus on
commerce alone brought about dissatisfactions within the Nigerian banking industry
during the era, and contributed to agitations for the country to focus on local business
entrepreneurs, thus ushering in the concept of indigenous banks. The indigenous attempt
into the modern banking era lasted from 1929 to 1959 and facilitated the creation of 26
indigenous banks. The new 26 banks had a mandate to fill the identified service gaps

39

resulting from the inability of foreign banks to understand and meet the peculiar banking
needs of the indigenous entrepreneurs during the era. Only four out of the 26 banks
created within the indigenous attempt at banking era existed as of January 2006.
The indigenous banking concept of the previous era later witnessed a gradual
transformation into an incursion of regional governments into banking, purely based on
challenges of undercapitalization and the need to pool required capital for effective
banking business. The regional banking era lasted from 1952 to 1960, and the era
recorded massive failure of some of the earlier 26 banks from the previous era, as reasons
for the recorded bank failures ranged from inadequacy of capital to mismanagement and
outcomes of the establishment of the first banking legislation, the Banking Ordinance of
1952. Until the Banking Ordinance of 1952, the structure of bank ownership in the
country had been between foreigners and regional governments from the period leading
up to Nigerias National Independence in 1960. The post-independence era lasted from
1960 to 1975.
The Central Bank Act of 1958 had created standards to control the activities of all
banks in the industry, including industry entry preconditions. The post-independence era
heralded the establishment of 16 additional banks that included nine foreign banks
consisting of five merchant and four commercial banks. The Federal and State
Governments of Nigeria owned the remaining seven banks in the industry during the
post-independence era. The federal government dominance of the banking era coincided
with the introduction of the second phase of the Indigenization Decree (also known as the
Nigerian Enterprise Promotion Decree) of 1979, which amended the 1972 Banking

40

Decree. With legislation, the new requirement was that at least 60% equity of enterprises
must be Nigerian-owned.
At the same time, the government took control of the banking, insurance, and oil
sectors of the economy. There were 23 banks operating in Nigeria as of promulgation of
the law. Out of the 23, 18 were commercial banks while five were merchant banks.
Eleven banks were wholly indigenous-owned by state governments and cooperative
institutions. The remaining 12 banks functioned as fully owned subsidiaries of foreign
banks. The creation of additional states in 1976 triggered the emergence of the era of
state government ownership. Equity arrangements during the era were diverse and
included cooperative orientation involving; (a) joint partnership with foreign banks, (b)
dilution of state government shareholding by inviting individuals to participate, and (c)
technical management support.
By the end of the era, each of all the former 19 state governments had banks they
had 100% ownership, except for the ones jointly owned with other states. The private
ownership era is in two periods, namely before and after the Structural Adjustment
Program (SAP). The pre-SAP period, which lasted from 1977 to 1986, is the period of
first private ownership of banks in Nigeria. 17 banks joined the industry during the
private ownership era, out of which five were state government initiatives, and the rest
were either private entrepreneur initiatives or joint ventures between foreign banks and
Nigerians. The post-SAP period lasted from 1987 to 2004.
According to FITC (2004), the Federal Government of Nigeria introduced the
SAP in 1986, and SAP reform drastically changed the structure of the financial services
market. The deregulation and liberalization of the banking sector that followed resulted in

41

lowering of entry conditions into the banking industry and provoked an upsurge in
number of banks in the industry. Sanusi (as cited in FITC, 1992) indicated that from the
introduction of SAP in 1986 until 1992, 87 banks were established, thus bringing the
number of banks operating in Nigeria to 120 as of 1991.
The Nigerian banking industry witnessed a period of rapid expansion, which led
to the establishment of 87 banks within a period of 6 years. The expansion in the industry
appeared to have triggered extreme competition. Some of the banks started operating
outside the confines of accepted professional and ethical standards, and the subsequent
distress in the banking industry lasted from late 1980s to early 1990s. The CBN revoked
the banking licenses of 34 banks, and by 2004, the number of banks in the Nigerian
banking industry had reduced to 86 from 120 in 1991 (FITC, 2004).
According to the CBN, prior to 1992, the minimum capital requirement for banks
in Nigeria was 12 million Naira (or US $91,000) for merchant banks and 20 million Naira
(or US $150,000) for commercial banks. A review in 1992 moved requirements to 40
million Naira (or US $300,000) and 50 million Naira (or US $376,000) respectively. In
1997, the CBN introduced a uniform 500 million Naira (or US $3.76 million) minimum
capital requirement to prepare the system for introduction of universal banking. In 2000,
the CBN increased the minimum capital to 1 billion Naira (or US $7.5 million) for new
banks while existing banks had a compliance deadline of December 2002.
The CBN later introduced 2 billion Naira (or US $15 million) minimum capital
requirement for new banks in 2001 while existing banks had a compliance deadline of
December 2004. The CBNs reasons for the recent calls for recapitalization of banks in
Nigeria include; (a) increasing cost of information technology and other infrastructure in

42

view of online banking, (b) comparison with other jurisdictions, (c) inflation and
increasing interest rates, (d) depreciation of the Naira, Nigerias national currency, (e)
strengthening operational capacity of deposit money banks, (f) minimizing risk of
distress, and (g) raising entry barrier as a result of increase in requests for banking
licenses, which were often not based on serious intentions or adequate appreciation of the
business of banking. The Nigerian banking industrys absorptive capacity is also an issue,
especially in terms of executive capacity to run banks, supervisory resources,
competition, and banking malpractices (Central Bank of Nigeria, n.d.).
The consolidation era of the Nigerian banking industry is a sub-set of a broad
strategy named the Nigerian Financial System Strategy 2020 (FSS2020). The broad
objective is to have the FSS2020 reposition the Nigerian financial services sector [the
banking industry inclusive]. Soludo (2007), while explaining the focus of the FSS2020,
cited the Goldman Sachs 2001 projection that the economies of Brazil, Russia, India, and
China (BRICs) would surpass that of the group of six nations (G6 nations) based on an
extrapolation of growth rates, demographic changes, capital accumulation, diminishing
returns with development, and exchange rates.
The Goldman Sachs report also provided a list of 11 countries after the BRICs,
referred to as the N11 countries with potential of becoming like the BRIC countries, and
Nigeria is one of the 11 countries (Soludo, 2007). Nigeria and Egypt were the two
African countries indicated as having the potential to record GDP growth in excess of
Italy by 2015. As such, Soludo concluded that for Nigeria to achieve the Goldman Sachs
projection and the countrys objective of being part of being one of the 20 largest
economies by 2020, Nigeria must have an annual average growth of 12.4% over the next

43

15 years. Soludo also reasoned that for Nigeria to achieve the Goldman Sachs prediction
for the N11s, the country will need a robust, vibrant, and integrated financial system that
will power new economy, thus, the logic that birthed the FSS2020 Project (Soludo).
Historical Overview
Indications from an early analysis of management shows that human beings
formed elementary political units with agreed codes of conduct to govern economic,
social, political, and often religious behavior. Organized human behavior leverages on
governing agreements in order to meet individual needs. For instance, before the
industrial revolution, organizations were mainly the household, the tribe, the church, the
mosque, the military, and the government. Performance management largely entailed
compliance of members to the agreed codes of conduct (Wren, 1994).
During the industrial revolution, David C. McCallum (1815 1878) elaborated
principles of management that later became precursors of what is now termed EPM
systems today (Wren, 1994). The David McCallum principles included (a) proper
division of responsibilities, (b) sufficient authority to enable implementation of such
responsibilities, (c) means of determining if such responsibility are faithfully executed,
(d) promptness in the report of all deviations from duty so that errors can quickly be
corrected, (e) existence of a system from which such deviations could be derived in the
form of daily reports and checks that will neither embarrass principal officers nor lessen
their influence on their subordinates, and (f) adoption of a system, as a whole, which not
only enabled the general superintendent to detect errors immediately, but also point out
delinquent job holders and roles (Wren).

44

During the scientific management era, Frederick Taylors scientific management

theory (1911) sought to determine scientifically the best methods for performing any task
and for selecting, training, and motivating workers (Stoner, 1995). The theory indicated
that organizations could scientifically analyze tasks performed by individual workers in
order to discover procedures that could likely produce maximum output with minimum
input of energies and resources (Scott, 2003). During the social person era, the
Hawthorne studies of 1924 1927 sought to discover the effect of workplace lighting on
worker productivity, but the experiment led to the discovery that lighting was not the
answer to the research question. The research findings indicated that supervision and
small group formations facilitated team spirit and enhanced team performance (Wren,
1994). In a related perspective, Elton Mayo discovered that problems of workers could
not be explained by any one factor, but had to be addressed in what he called [the]
psychology of the total situation, thus forming his view of the organization as a social
system (as cited in Wren, p. 240).
The human relations era encouraged managers to focus attention on the social side
of behavior and get people involved, thereby combining worker satisfaction with higher
productivity (Wren, 1994). While Mayo sought greater productivity and satisfaction
based on social solidarity and collaboration, the human relations school postulated,
People worked better when they knew what was expected of them and that they would
be more satisfied and productive under those conditions (Wren, p. 313). Modern
management entails planning, organizing, leading, and controlling the work of
organizational members available organizational resources to reach stated organizational
goals (Stoner, 1995, p. 4). The modern era has seen faster transformations in EPM than

45

all the five eras preceding it cumulatively, largely because academicians created new
approaches to performance management as practitioners struggled with how to improve
performance (Wren).
A subtle transition across various eras as listed above is a gradual transformation
of seeing performance management from individual task related level to an
organizational perspective in the present era. For example, Galbraith (1974), based on the
assumption of organizations as large and employing a number of specialist groups and
resources in providing output, indicated that after tasks had been divided into specialist
subtasks, the problem was to integrate subtasks around completion of the global task
while taking into account conditions of uncertainty. The World Health Organization
(n.d.) indicated that private sector organizations appeared to be under increasing
pressures of commercial competition, which seem to be drawing more attention to the
need for application of scientific and behavioral methods to improve organizational
performance, which is traceable through management history. For instances, even though
earlier records of investigation into performance exist, Frederic Taylors Scientific
Management Theory in the early 20th century is the first fundamental framework that
established the foundation for modern concepts of performance management.
Wilmore (2004) concluded, The general consensus is that there is a growing
emphasis on performance in organizations, as executives are placing more emphasis on
accountability for results by human resources professionals, while work environments are
placing more importance on performance ( 1). The Nigerian banking industry has seen
many reforms leading to the present FSS2020 plan, which seeks to reposition the
Nigerian financial system for global competitiveness. Given persistence of people

46

management and staff quality challenges of the past eight eras of the Nigerian banking
industry, post-consolidation human resource management challenges are likely to include
EPM and employee learning and development issues.
Research Categories
Creswell (2002) explained that categories or themes are outcomes of
segmentation required to add depth to insights into the phenomenon studied in a
qualitative enquiry. As such, the categories for the research were (a) EPM and (b)
employee learning and development, which informed the flow expressed in the research
questions listed in chapter 1
Employee Performance Management
Beer and Spencer (as cited in Murray, 2004) indicated, Over the years,
performance evaluation systems and their processes have evolved as major tools used by
organizations to improve performance (p. 4). Performance evaluation systems are
important to employee development and tend to focus on employee behavior. Beer and
Spencer further explained that employee performance evaluation is closely related to the
process of supervision but encompasses much more because [employee performance
evaluation] involves pay rates, promotions, and other organizational actions (Murray, p.
4). Alo (1999) defined EPM as a
Systematic approach to managing people using performance goals, measurement,
feedback, and recognition as a means of motivating them to realize their
maximum potential [and]... embraces all formal and informal methods
adopted by organizations to increase commitment, individual and corporate
effectiveness. (p. 51)

47

The concept of performance management has evolved from an annual appraisal

process to a complex system that monitors and measures employee performance for
motivational and developmental reasons. Present day practices indicate higher incidences
of improved options for standardizing, maintaining, and integrating performance data to
maximize the potential of and opportunities for employees due to of sustained application
of increasingly sophisticated technology, (Hamilton, n.d.). The evolution of a
performance management concept into a complex system of inputs, processes, and
outputs leveraging on established goals, evaluation tools, and delivery of employee
motivation enhancers are traceable to concepts such as technology integration, which is
becoming applicable to the concept of performance management.
The term technology integration means viewing technology as an instructional
tool for delivering subject matter in curricula already in place (Woolbridge, 2004).
Implementation of technology integration entails incorporating technology and
technology-based practices into daily routines, work, and management of organization.
Standards are essential for assessing technology integration because they provide
reference points for measurement through observable performances (National School
Boards Association, n.d.). In a similar perspective, Boysen et al. (1999) stated,
Organizations are now viewing performance measurement as a task for which all
employees are accountable, and the employee performance management system is
increasingly becoming a business management model for business decisions.
Organizations influence employees in embracing measurement and getting
involved in assessing attainment of established performance goals. As
organizations seek ways of becoming more customer-focused, ways of

48

implementing performance measurement systems and measuring non-financial

performance measures is becoming a viable means of attaining competitive
advantage in the marketplace. (p. 1)
Popular EPM Tools and Processes
Kaplan (2003) explained,
Primary methods of evaluating employee performance include evaluations based
on (a) employee attributes that emphasizes qualities or characteristics important to
the organization, (b) employee behaviors that are widely used for defining or
evaluating employee behaviors necessary to complete a job successfully, and (c)
employee achievements that show the extent to which specific goals or objectives
have been met, exceeded, or not met. (p. 268)
Various practices in present day organizational management tend to indicate existence of
EPM tools that assess employee attributes, behaviors, and achievements. Software
vendors are also developing variations on existing performance management tools in
response to an increasing emphasis on high performance working and leveraging on
technology. Examples of performance management tools include management by
objectives (MBO), 360-degree feedback, balanced scorecard (BSC), assessment center,
and others.
Quinn, Faerman, Thompson, & McGrath (2003) explained that MBO is a term
used to describe a broad array of systems, procedures, and programs. Characteristics of
MBO programs include (a) joint goal setting between members of two consecutive
supervision grades or levels, (b) periodic assessment of planned performance against
actual performance, and (c) stating objectives in quantifiable terms as much as possible.

49

Newstrom and Davis (2002) described the 360-degree feedback as a multirater feedback
or full circle feedback. The 360 degree feedback is the process of systematically
gathering data on a persons skills, abilities, and behaviors from a variety of sources
including the manager, peers, subordinates, and customers or clients(p. 143). The 360degree approach feedback is more effective when individuals match derived data with
self-assessments, as the tool encourages candid confrontation of ones need for change.
The 360-degree feedback approach is a rich multidirectional and almost anonymous
appraisal feedback that could stimulate performance improvement if properly used.
Robert Kaplan and David Norton developed the BSC in the early 1990s (as cited
in Arveson, 1998) as an approach to strategic management. The BSC is a management
system that enables organizations to clarify their vision and strategy in order to translate
the visions and strategies into measurable action. The tool provides feedback around
internal business processes and external outcomes in order to improve strategic
performance and results continuously. Kaplan and Norton described the innovation as:
The balanced scorecard retains traditional financial measures. But financial
measures tell the story of past events, an adequate story for industrial age
companies for which investments in long-term capabilities and customer
relationships were not critical for success. These financial measures are
inadequate for guiding and evaluating outcomes of investments made in
customers, suppliers, employees, processes, technology, and innovation ( 3).
The BSC perspective recommends that organizations consider the following four
perspectives in setting performance objectives: (a) learning and growth perspective,
which includes employee training and corporate cultural attitudes related to both

50

individual and corporate self-improvement; (b) business process perspective which

relates to internal business processes; (c) customer perspective based on need to develop
metrics for customer satisfaction, customers information, and profiling; and (d) financial
perspective based on additional financial-related data, such as risk assessment and costbenefit data. Kaplan and Norton (as cited in Arveson, 1998) also recommend that while
using the balanced scorecard, organizations should ensure that all four perspectives are
clearly defined in terms of objectives, measures, targets, and initiatives.
Weisenseel (1991) explained that identification of individual strengths and
weaknesses, the outcome of assessment centers, has demonstrated potential for effective
development of individuals. Dynamic technological revolution, increasing relevance of
team management, autonomous work groups, and quality of work life programs tend to
create situations that favor improvements in management development programs, and the
feedback derivable from an assessment center sessions could provide valuable input to
employee performance improvement plans. Gliddon (2004) listed other non-traditional
forms of employee evaluation tools.
Rigg (1992) explained peer reviews as a process in which multiple peers review
one another (as cited in Gliddon, 2004). Bricker (1992) described performance
agreements for long-term projects that indicate terms and obligations of parties (as cited
in Gliddon). Edwards (1990) described team assessments as applicable to derivation of
aggregates of team performance; points are awarded and compensations made
accordingly (as cited in Gliddon). Pankratz (2000) explained business intelligence
technology as a modular form of customizable evaluation tool (as cited in Gliddon).
Gliddon concluded, Given the current challenges of the economic climate and high rates

51

of unemployment, performance management and employee evaluation is likely to remain

a hot topic (p. 32).
The concept of performance improvement and benchmarking are traceable from
the scientific management era, when the importance of product quality was already
evident in early craft guilds which entailed placing an identification mark on products so
that customers could connect quality with the items maker. The scientific management
era indicates that emphasis was on improving work methods, measuring tasks, and
establishing standards, processes that included a form of benchmarking was visible
throughout the scientific management period (Wren, 1994). As such, the scientific
management era brought about standards for peer evaluations.
Multiple Perspectives on EPM
Recent concerns about EPM practices indicated divergent perspectives on the
subject. For instance, while some authors have indicated support for the practice of
managing employee performance through design and implementation of various EPM
concepts while providing suggestions for optimizing benefits of such models, others have
expressed some degree of apprehension for the concept and processes involved in EPM.
Newstrom and Davis (2002) believed, Organizations require consistent levels of high
performance from their employees in order to survive in a highly competitive
environment (p. 139). Kaplan (2003) indicated that as a company grows, the
organization must establish a system for managing behavior and results, while ensuring
that results are consistent with goals and strategies of the organization. Kaplan stated that
leaders need to manage employee performance, as the relationship between employee
performance and organizations strategic goals and performance reviews should take

52

place on a regular basis, if organizations want to gain strategic advantage over

competitors based on the strength of employee performance.
In terms of the overall EPM process, Gliddon (2004) reported opposing views on
EPM systems. For example, Woodford and Maes (as cited in Gliddon) maintained that
the EPM process is too costly in terms of information technology infrastructure, loss of
work time, loss of employee motivation and morale. In addition, Ramsey asserted that
entire lives and careers are shaped or shattered by a single written evaluation because
written evaluations commonly determine wage increases, bonuses, promotion
possibilities, and job security (as cited in Gliddon). Bushard and Schnake indicated that
application of attitude as a means of measuring performance does not provide defensible
performance measures (as cited in Gliddon).
In terms of outcomes of such EPM processes and likely career decisions by
company leadership, McNerney stated that performance appraisals are a key source of
evidence when employees are suing for wrongful discharge or discrimination (as cited in
Gliddon). Carson et al. indicated systemic factors outside direct control of employees
often affect employee behaviors and such systemic factors could create performance
barriers (as cited in Gliddon). Nicholas maintained situations that entail employees
knowing that they are under observation do not allow a true assessment of employee
performance (as cited in Gliddon).
Presenting a hybrid perspective, Keller (2004) reported that given recent thoughts
and practices of EPM, what J. Sterling Livingston, founder of the Sterling Institute,
discussed in his germinal 1969 Harvard Business Review article Pygmalion in
Management sounded plausible. Keller concluded, Expect the best from your

53

employees, and they will give you the best ( 1). Similarly, Keller agreed with INSEAD
Professors Manzoni and Barsoux, who named the set up to fail syndrome and stated,
Expect little from employees, and theyll give you meagre performance in return ( 1).
The interplay between managerial expectations and employee performance is more
complex than these common sense maxims suggest.
Employee Learning and Development
Wren (as cited in Weisenseel, 1991) identified employee learning and
development as one of the outcomes of the industrial revolution that led to the
establishment of the professional manager. The author indicated that American
businesses had characteristic structures, which had a large number of cottage industries
prior to the Industrial Revolution period. However, in the post-industrial revolution
period, businesses transformed from cottage businesses into larger, mechanized
organizations that used techniques and concepts including the division of labor and
specialization. In addition, Wren (1994) indicated that the professional managers, now
faced with a competitive changing environment, had to develop a body of knowledge
about how best to deploy resources. Developing a workforce was not an easy task during
the industrial revolution era because recruiting a workforce with the necessary skills was
difficult, and wage incentives enhanced labor mobility at that period. The existing
practice was that once organizations recruited employees, they underwent training, which
taught new skills of industrial life. The training was purely by oral instruction,
demonstration, and trial and error.
Transferring workers existing skills to new situations meant dealing with training
problems as well as workers resistance to new methods. The general practice was a

54

haphazard acquisition of knowledge from coworkers or inept supervisors, lack of

standard methods of work, and worker resistance to new methods, which posed serious
problems for efficient factory operations (Wren, 1994). In the 21st century, conventional
business patterns change quickly, aided by globalization trends. Business leaders now
have to strategize to meet far-reaching challenges in operations. They must be able to
successfully guide their organizations through global shifts and to quickly bring value to
their investors, employees, partners, and customers (Goldsmith, Greenberg, Robertson,
& Hu-Chan, 2003, p. 4). Competition, need for creativity, and innovation in meeting
stakeholder demands are increasingly becoming key issues as organizations appear to be
competing for the same customers with different needs. In addition, OConnor and Ayers
(2005) believed, As growth and profit alternatives continue to erode for many
companies, the importance of radical innovation as a mechanism for organization
rejuvenation is increasing (p. 23).
Learning and Development Relative to EPM
According to Armstrong (as cited by Alo, 1999), the objectives for training
employees are (a) to shorten learning curve for new employees, (b) to improve
performance of existing employees, and (c) to enable employees to acquire competencies
needed in the near future. On the other hand, employee development is a systematic
process that organizations use to build the competency level of human capital to meet
present and future needs. Three broad objectives of employee development are (a) to
improve employee performance, (b) to identify future leaders and provide required
support to enable them realize their optimal potentials and prepare them for higher

55

challenges, and (c) to provide smooth management succession within the organization
(Alo).
Multiple Perspectives on Learning and Development
Cleveland and Jacobs (n.d.) explained that social development is the process of
organizing human energies and activities at higher levels to achieve greater results, as
development increases productivity and deployment of human potential. Cleveland and
Jacobs indicated that social development consisted of two interrelated aspects, namely
learning and application. The process of discovery expands human consciousness, and
the process of application enhances social organization. Cleveland and Jacobs reasoned
that human development is a function of human awareness, aspirations, attitudes, and
values. Like all human creative processes, learning and development is a process of selfconception, and all human creative processes release human energy and convert such
learning and development into results. The Cleveland and Jacobs premise appears to link
employee learning and development to feedback from performance evaluation.
In terms of orientation to employee learning and development, Schermerhorn,
Hunt, and Osbuorn (2003) explained, Organizations operate in a social context that is
unforgiving in its demands or high performance, and key factors include changing
customer expectations, changing workforce, and changing organizations (p. 19).
Employee learning and development could imply the interaction between an individual
and an organization is a dynamic, two way process of exchange (Bowditch & Buono,
2001, p. 87). Such interaction include processes that facilitate learning and development,
practice of new skills, performance assessment and performance improvement
opportunities. Key sustainable competitive advantage factors for 21st century

56

organizations include knowledge-based work, intellectual capital, and the commitment

and competence of members of organizations (Bowditch & Buono), especially for
financial services institutions in a dynamic environment.
The Nigerian banking industry is increasingly becoming competitive and
dynamic, and a likely outcome of the dynamics of a generally chaotic environment is that
learning becomes a key enabler of transformational leadership (Robinson, n.d.). For
instance, Schermerhorn et al. (2003) explained, The emerging workplace is a meeting
ground for diverse view points, new ideas, problem-solving and interactive
teamwork..thus, the need to focus the attention of organization members and external
constituencies on the core purpose, in a unified and structured form (p. 9). Employee
learning and development initiatives in the emerging workplace will need to take
cognizance of new work team configurations, new work tools, and the speed of
information required for quick business decisions.
For example, according to Lantham and Vinyard (2004), Systems integration and
alignment implies consistency, integration between plans processes, measures, and
actions for the purpose of overall performance integration, and management (Lantham
& Vinyard, 2004, p. 61). In addition, McFarland and Sweeney (2006) indicated,
Companies need a culturally and ethnically diverse, innovative, and productive pool of
employees to manage risk of competing in the increasingly complex global marketplace
(p. 32).
Alijfri, Pones, and Collins (2003) indicated that the arrival of the Internet and
Web access has affected today's world in the same way that the industrial revolution
affected the agrarian societies of previous centuries. The Internet has effectively linked

57

all countries throughout the globe, and business is no longer limited to one's immediate
town or state. Advancements in telecommunications, the flourishing of the Internet, and
the emergence of e-commerce have helped foster an environment that promotes the
globalization of markets throughout the world. Increasing attention to strategy and human
resource management concepts, as well as emerging employee learning and development
issues, seeks to link EPM with employee learning and development to corporate strategy.
Strategy is a process that can identify and fill the gaps between desired and
current performance and sets the context for the pursuit of competitive advantage through
strategic learning (Stewart & Fenn, 2006). As such, learning and development remains a
vital aspect of the need for efficiency in operations of organizations today. Companies
must attract, retain, and develop top performers to attain and maintain competitive
advantage (Berger, 2004).
The Adult Learning Theory, one of the theoretical frameworks for the proposed
study, is a foundational theory relative to employee learning and development. Knowles
(1970) Theory of Andragogy (as cited by Weisenseel, 1991) explained that most adult
learning theorists have not been able to conclude on whether adults develop through
external, internal or a combination of internal and external forces (p. 35). For instance,
many authors are of the view that, although adults are responsive to external motivators
such as better jobs, promotions, higher salaries, they are highly influenced by internal
motivators such as increased job satisfaction, self-esteem, and quality of life. These
internal motivators mostly drive acquisition of appropriate skills through learning and
personal professional development.

58

Effects of EPM on Employee Learning and Development

Armstrong (as cited by Alo, 1999) explained that general objectives for training
employees are (a) to shorten learning curve for new employees, (b) to improve
performance of existing employees, and (c) to enable employees to acquire competencies
needed in the near future. In a similar perspective, (Alo) indicated that employee
development is a systematic process that organizations use to build human capital
competency in order meet present and future needs Alo cited three broad objectives of
employee development as (a) to improve employee performance, (b) to identify future
leaders and provide required support to enable them realize their optimal potentials as
well as prepare them for higher challenges, and (c) to provide smooth management
succession within the organization.
Employee learning and development could facilitate effective determination of
employee developmental needs from a performance management feedback, even as one
of the main objectives of performance management is to obtain feedback for employee
development and performance enhancement. Snell and Dean (as cited by Ramlall, 2004),
supported the concept that human capital and knowledge management should recognize
that people possess skills, experiences, and knowledge, which all have economic value to
organizations. The skills, knowledge, and experiences of employees represent capital
because they tend to influence productivity. Gliddon (2004) explained that many
organizations are re-evaluating their methods of appraising and motivating employees in
view of emerging competitive dimensions and issues on employee learning in
organizations. Gliddon also cited Woodford and Maes, who stated that employee
evaluations lead to higher turnover rates and add discontent amongst employees.

59

Such findings undermine the many benefits of employee evaluations because

many organizations tend to embrace formal and informal methods of employee
evaluations, while practitioners seek means of increasing organizational commitment and
individual employee buy-in to encourage effective practices (Alo, 1999). Hill (2005)
based on a different perspective, questioned the popular EPM assumption on employee
development. Hill indicated that if human resource managers tried to find out if managers
invested most of their time and energy with the stars in their team or with those who
struggle to perform, they would admit that their underperforming colleagues attract most
of their attention.
Hill (2005) also indicated that a visible gap between current performance and
desired performance might act as a magnet for trainers and coaches. Once such gaps are
evident, the general tendency is to focus most management and training resources on the
less productive group, possibly to the neglect of the more productive one. As a result,
some of the stars begin to feel undervalued, and their sense of engagement as employees
begins to decline, posing threats to the organizations ability to retain them. By the time
the situation becomes known, human resource practitioners and leaders may have
difficulty in regaining the commitment of such high performing employees. The author
suggested that one way to penetrate ambiguities of job performance is to plot trends over
time and identify trends in the data. Determining effects of EPM on employee learning
and development presents some special challenges, as other issues besides closing
identified training gaps appear to be involved.

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Conclusion
A review of related literature indicated that banking in developing countries has
peculiar challenges given high mortality rate for banks. The Nigerian banking industry,
with a history dating back to 1892, has gone through eight evolutionary eras, experienced
high mortality, and is repositioning for market leadership in Africa. Unfortunately, most
publications within the industry appear to have not given due attention to human resource
management practice within the industry. Previous researchers like David McCallum (as
cited in Wren, 1994), Frederick Taylor (as cited in Stoner, 1995), Hawthorne (as cited in
Wren), Elton Mayo (as cited in Wren), and Gilbreth (as cited in Chyung, 2005), have
recognized performance management as a source of leadership concern in organizations.
Romanoff (1989) recommended how to evaluate employees. Mailliard (1997) identified
the need to relate EPM to the bottom line. Gliddon (2004) drew attention to concepts and
authors in opposition to the concept of employee performance evaluation.
Summary
A review of Wren (1994) indicated that issues relating to effective application and
management of employee performance have been a source of management challenge
from the industrial revolution and the Hawthorne experiments to modern times. Wilmore
(2004) concluded that the consensus is that observations indicated a growing emphasis on
performance in organizations, as executives are placing more emphasis on accountability
for results by human resources professionals, while work environments are placing more
importance on performance management. Chapter 1 identified the proposed research
problem, purpose, and likely significance of the findings from the study to leadership.
The chapter also gave an insight into the proposed approach to the research, the

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underlying theoretical framework, research questions, and research variables. For a

deeper understanding of contingencies surrounding the study, the chapter concluded with
definitions of key terms, basic assumptions, scope, identified limitations, and
delimitations of the study.
Chapter 2, the literature review, expanded the presentations made in chapter 1 by
presenting information on key sources of secondary data, scope of literature, a broad
literature on the proposed research setting. The chapter described the study context by
explaining the concept of developing countries, banking in developing countries, and the
Nigerian banking industry in particular. The study reviewed the research core categories
within a historical overview and current thinking in terms of the research questions. The
chapter conclusion and summary aptly re-affirmed justification for the proposed study.
Chapter 3 describes the approach to primary data collection, analysis, and interpretation
of the research findings that support the research objective, which is to obtain themes and
patterns of EPM practice, leading to an inductive development and proposition of a
theory in chapters 4 and 5.

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CHAPTER 3: METHOD
Cooper and Schindler (2002) stated, Business research is a subset of social
research and entails a systematic inquiry whose objective is to provide information [in
order] to solve management problems (p. 5). Neuman (2003) noted, Social research
involves learning something new about the social world, thinking logically, following
rules, combining theories and ideas with facts in a systematic way, and using imagination
and creativity (p. 2). The study has so far raised issues motivating the research in the
two preceding chapters, in that chapter 1 established peculiarities of the Nigerian banking
industry in terms of high mortality of banks, intense competition, and industry dynamism
amidst foundational human resource management issues. Chapter 2 provided a historical
overview of management practice, which showed that the concept of EPM has remained
an issue of concern for management and human resource practitioners from the scientific
management era to the Hawthorne experiment and modern day organizations.
The study was a qualitative methodology with a grounded theory design. Creswell
(2002) described the procedure for grounded theory research as having to include
collecting primary interview data, developing and relating themes or categories of
information, and composing a figure or visual that portrays the theory (p. 60). The study
explored EPM and employee learning and development practice within Nigerian banks
and then goes on to propose a new theory leading to an enhanced understanding of EPM
for competitive advantage of banks in developing countries.
Research Design
Creswell (2002) explained, A grounded theory design is a systematic, qualitative
procedure used to generate a theory that explains at a broad conceptual level, a process,

63

an action, or interaction about a substantive topic (p. 439). Three approaches to a

grounded theory design are (a) systematic design, (b) emerging design, and (c)
constructive design. The systematic design in grounded theory emphasizes the use of the
data analysis steps that include open, axial, and selective coding with the development of
logic paradigms or a visual depiction of the theory generated (Creswell, p. 441).
Appropriateness of Design
Out of a sample of 82 literature references considered for the study, only 24
(29.3%) were empirical sources. When the 24 empirical sources were reviewed, 8
(33.3%) were mixed methods studies, 5 (20.8%) were quantitative studies, and the
remaining 11 (45.8%) were qualitative studies. In addition, a majority of the empirical
research on the topic of EPM referred to as either qualitative or quantitative study had
developed countries as the research environment. Only five empirical studies reviewed
had Africa and Nigerian banking industry as research environment; three were mixed
method design, and one each of quantitative and qualitative design. The five empirical
studies reviewed provided insights into the background on the proposed research topic
and research problem discussed in chapter 1.
The most recent of these five empirical sources with Nigeria as a research
environment was the Ekpe study of 2005; a qualitative method exploratory doctoral
dissertation from Aston Business School in the UK titled, Human Resource Management
and Performance in the Nigerian Banking Industry. The study investigated the existence
of general human resource management processes such as selection and recruitment,
induction, training and development, appraisal, and remuneration relative to overall bank

64

performance in broad terms. The Ekpe study was the first in-depth empirical study
specifically on EPM practice in the Nigerian banking industry.
The qualitative grounded theory study sought to expand existing literature and
enable other researchers to compare empirical findings from a developing country to
similar findings from developed countries. The decision to use the grounded theory
research design and method was a result of an assessment of existing research on the
subject EPM and the research objective of providing a holistic approach to the proposed
research topic. The qualitative grounded theory method appeared appropriate for the
study because of the limited amount of research on human resource management
practices of banks within the Nigerian banking industry to date, in spite of the
documented interest in EPM throughout history. Figure 4 presents the research design.

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Research Purpose

Theoretical Framework

(a) To investigate themes and patterns of

employee performance management within
the Nigerian banking industry and their
effects on employee learning and
development, and (b) To develop and
propose a new theory leading to a deeper
understanding of the process of employee
performance management

Germinal theories (1) General

systems theory with extension
by Khun, (2) Adult learning
theory with extension by Speck,
and the new (3) Malcolm
Baldrige Model for
performance excellence

Research Questions
RQ1 Does the bank have an employee performance
management practice in place? If yes, in what form does it
exist? RQ2 Does the bank have an employee learning and
development practice in place? If yes, in what form does it
exist? RQ3 Is there an interface between the existing
employee performance management and employee
learning and development practice? If yes, what is the
effect of the employee performance management on the
employee learning and development?

Research Method

Validity

(a) Qualitative study with

grounded theory design based
on systematic approach, (2) two
levels of one-on-one interviews,
(3) open ended questions, (4)
open, axial and selective
coding, (5) NVivo7.

(1) Pilot testing research instrument,

(2) Alignment of interview
questions with research questions,
(3) Triangulation of interview data
from two levels of interviews with
head of human resources and chief
executive officer, (4) Researcher
background

Figure 4. The research design. Adapted from Maxwell (2005).

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Research Environment
The research environment is Nigeria, a developing country in Sub-Saharan Africa.
According to the CIAs World Fact Book (n.d.), Nigeria, a former British colony gained
independence from the United Kingdom on October 1, 1960. Now referred to as The
Federal Republic of Nigeria, the country has 36 states and a federal territory. Nigeria is
approximately twice the size of California, on the African continent along the West
African coastline, and has 923,768 square kilometers of land mass and 853 kilometers of
coastline. The country shares common land boarders with Benin, Cameroon, Chad, and
Niger, which are also developing countries. Nigeria is Africas most populous country,
and includes more than 250 ethnic groups, with Yoruba, Igbo, and Hausa as the three
major tribal groups.
The estimated population of the country is 146,255,312, and is relatively young,
with 41.7% under 14 years of age, 55.3% between 15 to 64 years, and only about 3%
who are older than 64 years. With a population growth rate of 2.025%, life expectancy is
46.53 years. Following nearly 16 years of military rule, Nigerian adopted a new
constitution in 1999, and a peaceful transition to civilian government was completed. The
government continues to face the daunting task of reforming a petroleum-based economy,
(whose revenues have been squandered through corruption and mismanagement), as well
as institutionalizing democracy. Although both the 2003 and 2007 presidential elections
seemed marred by significant irregularities and violence, Nigeria is currently
experiencing its longest period of civilian rule since independence. The general elections
of April 2007 marked the first civilian-to-civilian transfer of power in the country's

67

history (CIA, n.d.). Table 1 (see Appendix C) provides a list of the developing countries
in Sub-Saharan Africa.
Population
The initially target population for the study was 50 participants consisting of 25
CEOs and 25 heads of human resources management drawn from the 25 banks operating
within the Nigerian banking industry. As of December 2004, there were 89 banks in
Nigeria, and they consisted of indigenous and foreign banks. The number of banks
reduced to 25 on January 3, 2006, due to an industry-wide reform that sought to increase
bank equity capital through multi-level corporate restructures in response to a regulatory
intervention in July 2005. In furtherance of these reforms, the number of banks further
reduced to 24 as of April 2008 following a merger between two pre existing banks.
Sample
Creswell (2002) stated, Non-probability sampling involves collecting data from
available participants who are willing to provide information (p. 167). Cooper and
Schindler (2002) also identified purposive sampling as a non-probability sampling
technique that conforms to certain criteria, and listed two approaches of purposive
sampling as judgment and quota purposive sampling. Creswell (2007) also indicated that
purposive sampling is applicable to qualitative research, and entails the researcher
selecting individuals and sites based on the individuals ability to show understanding of
the research problem and central phenomenon in the study. Thus, the sampling technique
for the study was purposive sampling based on a quota approach, which sought adequate
representativeness (Cooper & Schindler, 2002).

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Given cultural peculiarities of research environment on consent as observed and

reported by Irabor and Omonzejele (2007), CEOs of all the previously existing 25 banks
received a letter requesting for their consent for data collection at their respective bank
premises. Only banks whose CEOs or proxies give their written consent for data
collection on their premises participated in the study. Therefore, the sampling technique
was non-probability sampling, with an initial total population size of 50, consisting of 25
CEOs and 25 heads of human resources of the 25 banks within the Nigerian banking
industry. The population later became a target of 48 that consisted of 24 CEOs and 24
heads of human resources management.
Informed Consent and Confidentiality
Cultural issues regarding consent in the research environment made the process of
obtaining participant consents in developing countries, and especially in Sub-Saharan
Africa, different from what pertains in developed and more individualistic societies. The
cultural perceptions are explainable by the 1991 Hofstede study, (as cited in Bowditch &
Buono, 2001) based on an extensive study of 40 independent nations that suggested that
significant differences exist across the national characters or cultures in four key
dimensions. These dimensions include (a) power distance, the degree to which
hierarchical power places people at a psychological distance from each other, (b)
uncertainty avoidance, the degree to which ambiguity is perceived to be threatening or
anxiety arousing, (c) individualism/collectivism, the extent to which individuals or
groups are regarded as primary resources for work and problems solving, and (d)
masculinity, the extent to which masculine values and behavior traits such as

69

independence and achievement are valued more compared to more stereotypically

feminine values and behaviors such as nurturance and sympathy.
The Nigerian cultural environment is a hybrid between individualism and
collectivism. As such, all initial 25 CEOs of the 25 banks in the research population
received a letter seeking their consent to data collection at their respective bank premises.
The consent seeking permission to collect data at bank premises indicated (a) the purpose
of the study, (b) the amount of time the researcher will spend at the site collecting data,
(c) what participating in the study will entail, (d) the characteristics of the employees who
will be solicited for participation, (e) the time required of the participants, (f) how data or
results will be used, (g) specific activities to be conducted, (h) potential benefits from the
study, and (i) provisions to protect the anonymity of the study participants. Appendix A
provides a sample of the informed consent to collect data at bank premises that was sent
to the CEOs of all the earlier 25 banks, listed in Appendix F. CEOs, and heads of human
resources management of banks whose CEOs consented to data collection at the
respective bank premises, also received letters of consent, as indicated in Appendix B.
The second consent letters indicated (a) the purpose of the study, (b) what
participating in the study will entail, (c) potential risks and benefits from participation in
the study, (d) the option for study participants to withdraw from the study, and (e)
provisions to protect participant anonymity. Cone and Foster (2001) explained the
importance of maintaining strict confidentiality of information collected about research
participants or subjects during research in accordance to the agreements reached with
research participants while obtaining the informed consent (p. 135).

70

The letter of consent guaranteed participants' privacy and confidentiality, while

the data coding process sought to maintain their privacy and confidentiality. For instance,
the subjects names did not reflect in any part of the survey instrument. Participation in
the research study was voluntary. Subjects received written reassurances of
confidentiality and individual identification information from the survey did not reflect in
the research report. Instead, the procedure entailed aggregation of responses from all
participants from a common bank to produce one interview transcript per bank. Then
each common bank received the integrated interview transcript for a final validation at
the level of the first and second interview, before data analysis. No bank or individual
names appeared on the integrated and transcribed interview questionnaires after gathering
the data. In view of such provision in the informed consent, data has been retained and
secured in the following ways: (a) interview data have been given unique codes rather
than participant or bank identity, (b) interview recordings as earlier intended were widely
declined and thus, no longer applicable. All interview scripts and collected data will be
destroyed no later than three years after the completion of the study.
Data Collection
The World Fact Book as maintained by the CIA (n.d.) provided census data on
Nigeria and other sources of data included the various publications of the World Bank,
respective governments with established histories of providing aid to developing
countries, and international donor institutions web pages.
Primary Data Sources
Neuman (2003) stated, Data are numerical or non-numerical forms of
information that can be carefully gathered according to rules or established procedures

71

(p. 533). Raw [primary] data represent facts derived from the research environment
(Cooper & Schindler, 2002, p. 87). The questionnaire for data collection tool in the study
as presented in Appendix C utilized open-ended questions administered at two levels of
one-on-one interviews with applicable officers of the human resources management
department and the heads of human resources management.
Secondary Data Sources
The FITC and the CBN web sites, as well as some seminar papers collected from
the FITC library, provided valuable census data on the Nigerian banking industry. Other
sources of secondary data included the following local libraries in Nigeria: (a) the
Financial Institutions Training Center Library, (b) the library of the former FSB
International Bank Plc, and (c) the National Library in Lagos, Nigeria. Resourceful
internet search engines used include Google and Yahoo.
Review of secondary data entailed a detailed study on the Nigerian banking
industry to establish industry trends dating back to 1892 and journaling of previous
research findings in the Nigerian, African, and international banking industries. Relevant
sources on the historical overview included Nigerian FITCs library, the CBN website
and publications, and the FSB library and internet based research. Online libraries of the
ISPI, the SHRM, Harvard Business Review database, and the University of Phoenix
Online library facilitated Internet-based research on peer reviewed scholarly journals on
the subjects of EPM and employee learning and development. Other sources of secondary
data included reading materials and textbooks of doctoral classes in the business
administration program of the University of Phoenix. Secondary data review
instrumentation included research summaries, books, peer reviewed journal articles,

72

indexed publications, papers posted on the web, professional journals, and conference
papers.
Contextual Factors
The contextual factors for the study are (a) characteristics of developing countries
and the inherent challenges of globalization; (b) the characteristics of Nigeria as a
country located on the West African coast, also classified as a developing country in SubSaharan Africa; (c) the Nigerian banking industry showing its evolution, challenges, and
recent developments; and (d) various perspectives on banking in developing countries.
Nigeria is a unique African country of over 250 ethnic groups and a relatively large
market in view of its population, which despite sociopolitical challenges, remains
attractive to investors of various cultural linings.
Research Questions
The qualitative grounded theory study used a systematic approach, and primary
data collection entailed administration of open-ended questions at two levels of one-onone interviews. There were two sets of one-on-one interviews. The first set of interviews
were with key officers of human resource management department with responsibility for
EPM and employee learning and development, while the second set of interviews were
with respective heads of human resources management of the participating banks, who
were also part of the team that validated the integrated interview transcripts per bank.
Data collection entailed collection of subjects responses to interview questions per
respondent and for each interview (Creswell, 2002).
Creswell (2002) indicated that the most frequently used interview formats are
unstructured interviews, in which the researcher asks open-ended questions that permit

73

the participants to freely construct their responses and at the close of the interview.
Creswell stated, The person collecting data thanks the respondents and reassures them of
the confidentiality of their responses as the final stage of the interview (p. 208). The
proposed study investigated answers to three research questions. The three research
questions and sub-questions aligned with the core categories of the study: EPM and
employee learning and growth. Figure 4 provides an overview on the alignment of the
research design and Appendix C provides information on the open-ended interview
questions.
Pilot Testing Research Instrument
Cooper and Schindler (2002) stated, A pilot test is conducted to detect weakness
in design and instrumentation (p. 86). The authors further indicated, One form of pre
testing may rely on colleagues, respondent surrogates, or actual respondents to refine a
measuring instrument (p. 86), and continued, pre testing the research instrument
permits refinement before the final test (p. 431). Figure 5 presents the findings of the
pilot study that tested the research instrument design. The research instrument underwent
to a pilot testing procedure, which entailed circulation of interview questions to five
selected EPM subject matter experts drawn from banking, consulting, Oil and gas, and
academia. The research population target was 50 participants, consisting of 25 bank
CEOs and 25 bank heads of human resources; as such, the number of people targeted for
pilot testing was 10% of the research population. The pilot target population included one
person each from academia, oil and gas industry, and consulting, as well as two persons
from the banking industry.

74

Findings from the pilot study as indicated in Figure 5 below showed that the oil
and gas sector participant and the second bank participants felt that the interview
questions were logical and exhaustive, while the participant from academic felt the
questions were very professional. The pilot study participant from the oil and gas
industry was concerned about the number of questions asked and advised that study
participants may need a lot of supported in answering all the interview questions during
data collection. The oil and gas participants were also concerned about likely timeline
challenges in completing data collection, given the nature of questions and the
dynamism in the industry that may hamper commitments to interview schedules. Four
persons out of the five people who reviewed the questionnaire requested integration of
the question on benchmarking practices and the question on triggers for review of the
process. These adjustments contributed to the emergence of causal conditions for the
two research categories.

75

Figure 5. Findings from Pilot Study

Data Analysis
Data analysis entails discovering themes from the dataanswering the major
research questions and forming an in-depth understanding of the central phenomenon
(Creswell, 2002, p. 265). The qualitative study used grounded theory design and a
systematic approach to data analysis. Creswell noted, A systematic design in grounded
theory emphasizes the use of steps in data analysis that are open, axial, and selective
coding, the development of a logic paradigm, or a visual depiction of the theory
generated (p. 441). Bringer, Johnston, and Brackenridge (2006) cautioned,

76

The promise of theory and model development makes grounded theory an

attractive methodology to follow. However, it there are opinions that many
researchers fall short and only provide a detailed description of the research area
or simply a quantitative content analysis rather than an explanatory model. The
nonlinear design of the selected computer assisted qualitative data analysis
software (CAQDAS) program, QSR Nvivo7 facilitates such iterative approaches.
[More so as] grounded theory is an iterative process whereby the researcher
moves between data collection and analysis, writing memos, coding, and creating
models. ( 1)
Barry (1998) indicated that a CAQDAS program helps accelerate and speed up
the coding process, provides a better way of looking at the relationships in the data,
provides a formal structure for writing and storing data to develop the analysis, and aids
in thinking about the data. Barry cited Weitzman and Miles review of the newest
category of coding and theory building software that placed Atlas/ti and Nudist at the
head of the field. Barry explained, Nudist tends to win out on sequential structure,
project management and sophisticated searching while Atlas/ti strengths lie in its interconnectedness and creative interface ( 12.1). Barry concluded, Both packages will
help to automate and speed up some analysis tasks, allow more instant access to data
once coded, facilitate more complex questioning of the data, and provide creative aids to
stimulate theoretical development ( 12.1). The Computer Assisted Qualitative Data
Analysis Software (CAQDAS) used for data analysis in the study was QSR Nvivo7

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Open coding categories (A-C)

Category A

Category B

Category C

Axial coding paradigm (a-e)

b) Context

a) Causal
conditions

d) Strategies

e) Consequences

c) Intervening
conditions

Grounded theorists select one open coding category and pass it through the axial
coding paradigm

Figure 6. Grounded theory coding. Adapted from Creswell (2002).

Creswell (2002, p. 444) described the components of the axial coding paradigm as
including (a) causal conditions influence core category, (b) the strategies are specific
actions that are outcomes of the core category, (c) context implies specific conditions that
influence strategy, (d) intervening conditions are contextual conditions which influence
the strategies, and (e) consequences are the outcomes of implementing the strategies. The
three categories that form the open coding categories of the study were (a) EPM, (b)
employee learning and development, and (c) the link between EPM and employee
learning and development. The data analysis process entailed open, axial, and selective

78

coding to derive and propose a theory of EPM. As such, each of the two main categories
of the study passed through the axial coding paradigm as presented in Figure 6.
Validity and Reliability
Salkind (2003) explained, Internal validity is the accuracy with which one can
conclude that the outcome of an experiment is due to the [central phenomenon] (p.
306), and continued, external validity is the extent to which the results of an experiment
can be generalized to other populations (p. 307). Bogdan and Taylor (1998) explained
that triangulation is a way of checking out insights gleaned from different information or
different sources of data. By drawing on other types and sources of data, observers also
gain deeper clearer understanding of the setting and people being studied (p. 8).
Creswell (2007) indicated challenges of a grounded theory study as (a) the need to
set aside a wide variety of theoretical ideas to support emergence of substantive theory,
and (b) determining when categories are saturated or when the new theory is sufficiently
detailed. In view of the likely challenges of grounded theory, the study applied various
steps to mitigate the identified challenges of a grounded theory study. For instance, the
secondary data collection phase of the study entailed an extensive documentary research
that includes transitions in management thought on EPM and employee learning and
development through history. Secondary data collection included a chronology of related
theories leading to modern day concepts and recent theories, thereby providing a wide
variety of theoretical ideas to support emergence of a substantive theory. To address
likely challenges of the grounded theory approach, the three research questions align with
the three categories of the study and each research question has two sub-questions that
also align with the open-ended interview questions.

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The two levels of interviews allowed for triangulation, thereby setting the
boundaries for assessment of saturation status of the proposed categories. Secondary data
on each participating banks in terms of profile on bank, publications, and policies on
EPM and employee learning and development provided additional sources of secondary
data for the proposed study. The one-on-one interviews were to have audio tape recording
as a process of ensuing accuracy of interview transcripts, but participants declined to
have the interviews recorded. As such, the interviewees had to review the integrated
transcripts of the interview notes after the interview to validate the responses provided.
Each participating head of human resources also did one on-one interview and then
validated the integrated interview questionnaire for each bank.
The plan was to interview heads of human resources management and the CEOs.
However, there were delays and administrative challenges in fixing appointments with
the CEOs, as no CEO participated in the study. The development necessitated working
with key responsibility officers for EPM and learning and development in addition to the
heads of human resources management. The next step was integration of the various
individual responses for each institution and then the interviewees re-affirmed the context
of the integrated transcripts, thereby enabling triangulation, which sought to keep threats
to the validity of the findings to a minimum and reduce likelihood of incidences of error
of interpretation. The basic concepts relating to the topic of interest, the research
categories also provide internal validity. Given the variations in culture, social values,
and stages of national development in developing countries, the research findings will
have limited capability for generalization.

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Summary
Given the apparent dearth of empirical research on the research environment,
population, and topic, the qualitative grounded theory study design as explained in
chapter 3 of the study is considered an appropriate method to explore the topic and
provide a viable platform for further research. The study entailed application of a threepronged data analysis procedure involving open, axial, and selective coding.
The research environment was Nigeria, a developing country in Sub-Saharan
Africa and the initially targeted research population was 50 consisting of 25 CEOs and 25
heads of human resource management drawn from the 25 banks within the Nigerian
banking industry as of January 2006. The number of banks reduced to 24 as of April
2008. Only CEOs or proxies that provided written consent for data collection at their
respective bank premises participated in the proposed study. The study used a nonprobability sampling technique. The combined effects of the research question structure,
extensive documentary research on varying perspectives on the research categories, openended interview questions, and a three-pronged systematic approach to deriving a theory
sought to minimize likely challenges to internal and external validity.
Chapter 3 gave insights to the research environment, population, sample, data
collection procedure, and data analysis methods. The chapter also discussed a
justification for the choice of the proposed CAQDAS program, and steps taken to
increase the internal and external validity of the research findings. Chapter 4 explains the
research findings on each of the research categories in terms of the themes and patterns of
EPM observed within the participating banks.

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CHAPTER 4: PRESENTATION AND ANALYSIS OF DATA

The purpose of the qualitative grounded theory study was to investigate the
themes and patterns of EPM systems in practice within the banks in the Nigerian banking
industry and the EPM systems effects on employee learning and development. The
objective was to develop and propose a new theory of EPM leading to a deeper
understanding of the process of EPM for competitive advantage of banks in developing
countries.
The dynamism of the Nigerian banking industry, as earlier indicated, became
more obvious over the course of the study, as there were four developments that impacted
the study: (a) two out of the earlier existing 25 banks in the industry merged, thereby
reducing the research population to 24 banks and 48 participants consisting of 24 CEOs
and 24 heads of human resources as of June 30, 2008; (b) the inability to secure interview
appointments with the respective CEOs as a result of their very tight schedules, which
resulted in the one-on-one interviews being with heads of human resources departments
and key officers of the bank with bank-wide responsibility to the processes being
investigated; (c) changes in roles critical to the research, as the head of human resources
in one of the participating banks was re-assigned over the course of data collection,
which necessitated double interviews with the former and incumbent heads of human
resources; and (d) changes in both CEO and head of human resources in one of the
consenting banks, which necessitated obtaining new consents and re-discussing the
research with the incumbent officers.
In view of the four developments indicated, 12 banks (50% of the industry)
consented to participate. Only 10 banks fully participated (42% of the industry) because

82

one bank was undergoing post-merger integration and could not report any existing
practice, while another bank was undergoing a major restructuring and business
transformation project in order to implement a globalization strategy. In terms of sample
size sufficiency, Creswell (2007) indicated that one of the challenges of a grounded
theory study is in determining when categories are saturated or when the new theory is
sufficiently detailed, and recommended including 20-30 individuals in order to develop
a well saturated theory (p. 126).
The study achieved saturation at 27 individuals from an initial 29, made up of
individuals who were heads of human resources management of the banks and officers
with bank-wide responsibilities for EPM and employee learning and development. Given
that the 29 participants are from 50% of the Nigerian banking industry, the saturation is
therefore sufficient to develop a theory. Chapter 4 contains the following sections: (a)
data collection procedures (b) data analysis procedures, (c) presentation of data, (d)
findings and (e), a summary, which transitions into chapter 5.
Data Collection Procedures
The data collection procedures section of chapter 4 has the following layout: (a)
sampling procedure, (b) research questions, (c) data collection procedure, (d) interview
procedure, and (e) demographic profile of participants. The data collection process
entailed completion of an open-ended questionnaire (Appendix C) at multiple levels of
one-on-one interviews involving officers with bank wide responsibilities for EPM and for
employee learning and development.

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Sampling Procedures
The sampling technique used is a non-probability sampling technique, which
involves collecting data from available participants who are willing to provide data
(Creswell, 2002, p. 167). Cooper and Schindler (2002) identified purposive sampling as a
non-probability sampling technique that conforms to certain criteria, and listed two
approaches of purposive sampling as judgment and quota purposive sampling. The
sampling technique applied in the study is purposive sampling, based on quota approach
as described in sample section of chapter three. Figure 7 represents the sampling
procedure.

84

Non probability
purposeful sampling
from a population of 24
banks, leading
to 12 consents from
50% on industry

Purposeful quota
sampling from the
12 participating
banks, leading to
29 interviews

29
interviews

Figure 7. Sampling procedure.

Each of the 25 banks existing within the Nigerian banking industry as of January
2006 received letters requesting their consent to enable the CEO and head of human
resources management to participate in the study. Two banks within the total bank
population as of January 2006 merged in April 2008, thereby reducing the total
population to 24 banks as of June 2008. Twelve banks consented to participate in the
study, from which 12 CEOs and 12 heads of human resources participated (one each
from each bank), or 50% of the industry as of June 2008. However, only 10 banks fully

85

participated in the study, as two banks could not conclude the process; one bank was
undergoing post-merger integration and the second bank was undergoing a major
business transformation and restructuring exercise in preparation to enhancing its global
presence. The study sample includes 29 participants from a purposeful quota sample of
two to three human resources management staff with bank-wide responsibility for the
processes under investigation from each bank.
Research Questions
The study used the systematic design approach to grounded theory, which
emphasizes the use of the data analysis steps that include open, axial, and selective
coding with the development of logic paradigms or a visual depiction of the theory
generated (Creswell, p. 441). The research questions followed a similar pattern, as three
research questions transitioned from factual inquiries to open-ended questions of
description, composition, causality, and relationship (Meltzoff, 1998). The three research
questions are,
RQ1: Does the bank have an EPM system in place? If yes, in what form does it
exist?
RQ2: Does the bank have an employee learning and development practice in
place? If yes, in what form does it exist?
RQ3: Is there an interface between the existing EPM system and employee
learning and development practices? If yes, what is the effect of the EPM system
on the employee learning and development practice?
Figure 4 provides a broad overview of the research design, and clarifies how the
three research questions complement the research purpose, theoretical framework, and

86

research method and processes to enhance validity. Each of the research questions
provided a category for open coding. The process of transitioning from factual questions
to questions of description, composition, causality, and relationship provided links to the
five steps of axial coding, which included (a) causal conditions, (b) strategies, (c)
intervening conditions, (d) context, and (e) consequences (Creswell 2002, p. 444). Figure
5 provides an overview of the grounded theory approach and the various levels of coding
as described above.
Data Collection Procedure
Figure 7 presents an overview of the data collection procedure for the study. The
banks that had given their written consents received an update on the status of the study
in January 2008 with a request to provide contact information of designated bank
employees for the one-on-one interviews, while secondary data collection on each
participating bank continued over the period from January 2008 to March 2008.
Designated interviewees received orientation on the research process by email and
telephone from January 2008 to June 2008. The orientation entailed providing the
prospective interviewees with information on the research purpose, objectives, and
process. Thereafter, the nominated participants received soft copies of the questionnaire
and consent letters by email. All participants are working adults above 18 years of age, so
they also completed the consent forms required for participants aged 18 years and above.
Follow-up telephone discussions with the 29 participants clarified the data collection
process after the participants had reviewed the interview questionnaire and individual
consent letters.

87

The subsequent phases of primary data collection were; (a) completion of the
interview questionnaire in private by each of the 29 participants; (b) conducting a 30 to
45 minutes one-on-one oral interview with the heads of human resources of the two
banks that could not complete the study; (c) conducting a 60 to 90 minutes one-on-one
interview with each of the 27 participants from the other 10 banks that fully participated
in the study; (d) Recording the 29 interview responses on paper and transcribing the
interview notes; (e) Integrating each interview transcript in order to produce one
transcript for each bank; (f) Returning each of the 10 integrated interview transcripts to
the participants from each bank in order for the participants to validate that the transcripts
as presented confirmed the position if the banks practice; (g) conducting a 20 30
minutes interview with the head of human resources of each of the 10 banks mainly to
validate the earlier confirmed interview transcript, thereby allowing for triangulation
from the two levels of interface and validation.

88

Figure 8. Data collection procedure.

Some developments that affected data collection included (a) slow turnaround of
requests for appointments with CEOs, (b) delegation of the CEO role in data collection to
the head of human resources, (c) resultant adjustment of interview candidate designations
required, and (d) participants refusal to allow tape recording of interview discussions.

89

Demographic Profile of Participants

Table 7
Demographic Profile of Research Participants
Bank

Participants Males

Females

Participant Role in Bank

10

11

Head, human resources management and

Supervisor, manpower planning
Group head, human resources management
and Head, performance management
Head, human resources management and
performance management officer
Former head of human resources,
Incumbent head of human resources &
head, performance and reward management
Head, people management, group head,
training and development and human
resources officer [performance]
Group head, human resources, head,
performance and reward, Payroll
administrator, and Performance
management officer
Head, human resources management,
training manager and senior manager,
manpower planning
Head, training and development, head,
performance management and head,
manpower planning and recruitment
Head, training and development and
Head, human resources management
Head, human resources management, head,
organization learning, and human resources
relationship officer consumer banking
Head, human resources management

12

Head, human resources management

There were two to three interviews conducted for each bank, which resulted in 29
participants who are employees of 12 banks. The 29 participants consisted of 9 existing

90

heads of human resources, one former head of human resources, and 19 officers with
bank-wide responsibilities for EPM and employee learning and development.
Table 8
Profile of Participating Banks
Bank

Age of
Bank
(years)

Merged or
Acquired
2005 till
date

17

Yes

145

4800

2000

70:30

20

Yes

197

2750

477

75:25

24

Yes

220

2386

None

63:37

114

Yes

435

13000

5000

40:60

2.5

Yes

170

5000

2000

60:40

18

Yes

350

14321

9022

80:20

49

Yes

255

4000

400

40:60

2.5

Yes

576

6343

3959

70:30

20

Yes

110

3000

1600

55:45

10

No

None

26

725

320

67:33

11

19

Yes

320

10,500

1200

80:20

12

<1

Yes

60

1500

650

70:30

Code

Number Number
Total
Outsourced Staffing
of banks of service employees employees
ratio
involved locations

Table 8 provides a profile of participating banks, and indicates that (a) 83% of the
sample banks are less than 25 years old, (b) 25% of the banks are new (reformed) as a
result of consolidation, (c) one bank is nearly half a century old, (d) one bank is over a
century old, (e) one out of the 12 banks has not experienced post-merger or acquisition
integration since 2005, (f) 63% of the banks that had post merger or acquisition
integration have experienced integration of three to five banks at a time, (g) 83% of the
banks outsource roles ranging from administrative functions to back office support, and

91

(h) only two banks had less than 100 service points, while three had more than 350
service points, two out of which had 435 and 576 service points each. A review of
staffing ratio of the two older banks in terms of client facing function to back office
support function within the study sample indicated that the two older banks had a 40:60
ratio, indicating that there are more employees in back office functions than in client
facing functions within the sampled population. However, the reverse was the case, as the
other 10 banks had staffing ratios that ranged from 55: 45 to 80:20, implying that there
are more employees in client facing roles than back office support functions.
Table 9
Nature of Participating Banks
Bank
Code

Age of Banking
Bank
Era
(years)

Era Description

Majority
Ownership

Other locations
outside Nigeria

17

7th

Private ownership

Nigerian

1 in West Africa

20

7th

Private ownership

Hybrid

21 in Africa

24

th

Private ownership

Nigerian

None

st

114

Foreign monopoly

Nigerian

2.5

8th

Consolidation

Nigerian

2 in Africa and the

United Kingdom
None

18

7th

Private ownership

Nigerian

None

49

3rd

Regional government

Nigerian

None

2.5

8th

Consolidation

Nigerian

None

20

7th

Private ownership

Nigerian

None

10

7th

Private ownership

Foreign

70 countries

11

19

7th

Private ownership

Nigerian

1 West Africa

12

<1

8th

Consolidation

Hybrid

Part of an
international
banking group

92

Table 9 provides an overview of the nature of the 12 participating banks, and

indicates that (a) one bank is of the 1894 to 1930 era of monopoly of foreign banks, (b)
one bank is of the 1952 to 1960 era of regional government incursion into banking, (c)
58% of the sample banks are of the private ownership era of 1977 to 2004, and (d) 25%
are of the consolidation era of 2005 to date. Only one bank is largely foreign owned,
while two are a hybrid of foreign and Nigerian, while the remaining nine are Nigerian.
Three out of the nine Nigerian banks in the study have locations outside Nigeria. Two of
the three Nigerian banks with location outside Nigerian are only within the West African
region, while one has a South African and a UK location.
Data Analysis Procedures: A Systematic Approach
The study used a grounded theory design and a systematic approach to data
analysis. Strauss and Corbin (cited in Creswell, 2007, p. 160) stated, Grounded theory
provides a procedure for developing categories of information (open coding),
interconnecting categories (axial coding), buildings a story that connects the categories
(selective coding), and ending with a discursive set of theoretical propositions. The data
analysis procedures section provides an explanation of a systematic grounded theory
approach, describes application of the systematic grounded theory approach, and
describes application of the CAQDAS program, NVivo7.
Explanation of Systematic Grounded Theory Approach
Creswell (2002) noted, A systematic design in grounded theory emphasizes the
use of steps in data analysis that are open, axial, and selective coding, the development of
a logic paradigm, or a visual depiction of the theory generated (p. 441). Figure 6
describes grounded theory coding principles using the systematic approach. Grounded

93

theorists select one open coding category and pass it through the axial coding paradigm.
Creswell described the components of the axial coding paradigm as (a) causal conditions,
(b) strategies, (c) context, (d) intervening conditions, and (e) consequences. Strauss and
Corbin (as cited in Creswell, 2007) explained that selective coding entails deriving a
theory that provides an abstract explanation for the process being studied from the
interrelationship of categories in the axial coding model. Selective coding invariably
entails creating a storyline, which examines how certain factors influence the
phenomenon under study and the use of specific strategies with certain outcomes.
Application of Systematic Grounded Theory Approach
This study used a qualitative grounded theory design based on a systematic
approach to derive a theory that emerged from the research data. The study sought to
answer three research questions:
RQ1: Does the bank have an EPMS in place? If yes, in what form does it exist?
RQ2: Does the bank have an EL and D practice in place? If yes, in what form
does it exist?
RQ3: Is there an interface between the existing EPMS and EL and D practice? If
yes, what is the effect of the EPMS on the EL and D practice?
The research questions enabled derivation of the categories to enable open coding,
and the categories are (a) EPM, (b) employee learning and development, and (c) the link
between EPM and employee learning and development. The questionnaire had questions
that transitioned from factual questions to questions of description, composition,
causality, and relationship. The transition in research questions facilitated the process of
subjecting each core category in open coding through an axial coding process. The axial

94

coding process determined the (a) conditions that cause or trigger the process, (b)
strategies involved in the core category process, (c) the context in which the core
category exists, (d) intervening conditions that could influence the core category, and (e)
consequences or outcomes of the core category. Figure 5 shows the grounded theory
coding process.
Creswell (2002) explained, The focus of grounded theory is connecting
categories and emerging theories (p. 445). Therefore, each of the three core categories
were in the general context of the three research questions in order derive general themes
of practice across the Nigerian banking industry. Glaser (as cited in Creswell) indicated
that a good grounded theory must meet four basic criteria that make the emerging theory
(1) fit the context in which the theory is derived, (2) be workable within the environment
as described, (3) be relevant to the study participants and those involved in process
studied, and (4) be modifiable within the context of dynamism in intervening conditions
in the environment (p. 445). As such, the theory should, fit the realities in the eyes of the
participants, practitioners, and researchers. To address the four criteria mentioned, the
emerging theory on EPM was within the context of the research environment in a manner
that recognizes dynamisms of the Nigerian banking industry and the life cycle stage of
the banking industry. The theory also recognized opportunities for advancement within
the finance industry with regard to the (a) FS2020 Strategic Plan, (b) Goldman Sachs
projection for N11 nations, and (c) observable development in the global financial
industry.

95

Application of Qualitative Data Analysis Software

The CAQDAS program used in the study is NVivo7. Bringer et al. (2006), in
support of the software, indicated that the nonlinear design of the software facilitates
iterative approaches as grounded theory is an iterative process whereby the researcher
moves between data collection and analysis, writing memos, coding, and creating
models ( 1). Application of NVivo7 in the research entailed the following several steps
leading to the themes and patterns presented in the presentation of data section. The
stages were (a) project file set up, (b) exploration of linkages, (c) coding, and (d) queries.
The project set-up phase of applying the NVivo7 software entailed four steps.
First, creation of a project file in NVivo7 named University of Phoenix Doctorate
Dissertation. The project file contained folders namely; (a) sources, (b) nodes, (c) sets,
(d) queries, (e) models, (f) links, and (g) classifications. Second, uploading the five pilot
study feedback emails in the sources folder of NVivo7 as pilot study feedback, within the
documents sub-folder. Then, uploading the 10 transcribed, integrated, and validated
interview notes (one per participating bank), as interview transcripts within the
documents sub-folder. Third, 29 key attributes, with defined attribute values as derived
from the interview questionnaire were created as classification attributes within the
classifications folder. A detailed review of the integrated transcripts of each of the 10
banks that fully participated in the study were instrumental to derivation of the 29
attributes and allocation of respective attribute values for each case or participating bank.
Fourth, uploading of each participating banks interview transcript to the documents
folder in order to create a case in the case sub-folder within the nodes folder. Exploration
of linkages entailed a detailed review of overriding contextual factors surrounding each

96

case, establishing memos as links to such cases, and creating annotation linkages to cases
based on insights gained from primary data. Linkages established were few with regard to
(a) the 29 classification attributes created, (b) sub-tree nodes created to derive themes,
and (c) relationships explored between EPM and employee learning and development.
The coding phase entailed creation of study categories as tree nodes, which
included (a) EPM and (b) employee learning and development. Each of the 10 transcribed
interview notes were coded for themes and patterns that led to the emergence of sub-tree
nodes that revealed emerging themes and patterns of practice, the inputs to axial coding.
Queries were run using the five stages of axial coding and various reports were generated
showing nodes, attributes, codes, and relationships, which enhanced the emergence of
themes and patterns for selective coding. The models folder facilitated generation of
models, which are pictorial presentations of the themes for selective coding that
generated the theoretical parameters.
Presentation of Data
Research questions in a qualitative research study are usually open ended and
general (Creswell, 2002). As such, the research questions that provided structure to data
collection and presentation sought to understand (a) the basic issues surrounding
performance management systems in practice from each participating organizations
point of view and (b) the holistic EPM procedures and dynamics involved in each
organization. The study sought to answer three research questions in line with the
categories used for the open coding process, as each research question addressed one
category. The presentation of data section has the following layout: (a) EPM, (b)

97

employee learning and development, and (c) the link between EPM and employee
leaning and development.
EPM
RQ1 sought to investigate each participating banks situation in terms of EPM
system in practice. The first research question had two sub-questions. Each of the subquestions investigated (a) issues surrounding the performance management system in
practice and (b) procedures involved in delivering the EPM process from initiation to
feedback. As such, the research questions on EPM were (a) Does the bank have an EPM
system? (b) If yes, how did the existing EPM system emerge? and (c) What are the
processes involved in delivering the existing EPM system, and who are those responsible
for delivering the EPM system?
RQ1, which investigated the EPM practice within the Nigerian banking industry,
sought to find out if the participating banks had EPM practice in place. Where such
practice existed, the method of inquiry then sought to ascertain the form in which EPM
practice existed in terms of (a) which conditions led to its existence, (b) what processed
are involved, (c) which developments can affect the process in existence, (d) controls
applicable to the process, and (e) how the participating organizations use outcomes the
outcomes of the process.
Employee Learning and Development
RQ2 explored each participating banks situation in terms of employee learning
and development practice and sought to investigate (a) issues surrounding employee
learning and development strategy in practice, and (b) procedures involved in employee
learning and development from planning to delivery and post-learning activities. As such,

98

research questions on employee learning and development were; (a) Does the bank have
an employee learning and development practice? (b) If yes, how was the existing
employee learning and development practice derived? and (c) What are the processes
entailed in delivering the existing employee learning and development practice, and who
are those responsible for delivering the employee learning and development practice?
RQ2 sought to find out if the participating banks had employee learning and
development practice in place. Where such practice exists, the research question sought
to ascertain the form in which it exists in terms of (a) which conditions led to its
existence, (b) what processed are involved, (c) which developments can affect the process
in existence, (d) controls applicable to the process, and (e) how the participating
organizations use outcomes the outcomes of the process.
Link between EPM and Employee Learning and Development
RQ3 explored each participating banks situation in terms of the interface of EPM
with employee learning and development practice, as well as the effects of EPM on the
latter. Components of RQ3 were (a) Is there an interface between the existing EPM
system and employee learning and development practice? (b) If yes, what is the effect of
the EPM system on the employee learning and development practice? (c) Is the employee
learning and development practice linked to the existing EPM system? (d) If yes, what
value does the bank derive from the interface between the existing EPM system and
employee learning and development practice? and (e) What employee learning and
development process depends on the outcomes of the existing EPM system? RQ3 sought
to find out if the participating banks had a practice that consciously integrates employee
performance with employee learning and development. Where such practice existed, the

99

research question then sought to ascertain the effect of the existing EPM practice on the
learning and development of the banks employees.
Findings
The research findings presented in this section are in a sequence synonymous to
RQ1, RQ2 and RQ3 based on the five stages of axial coding presented in Figure 5 as
causal conditions, strategies, intervening conditions, context, and consequences.
EPM
RQ1 asked, Does the bank have an EPM practice? If yes, how did the existing
employee performance learning and development practice emerge? What are the
processes involved in delivering the existing EPM practice, and who are those
responsible for delivering the EPM process? The presentation of research findings on the
EPM core category are in two ways.
The first presentation is in the form of basic coding, using an analysis of the key
attributes of EPM practices within the study sample, as analyzed in NVivo7
classifications folder earlier described in the application of a CAQDAS. These high-level
attributes are in Tables 10 and 11 as patterns of EPM practice within the sample. The
second form of presentation is by axial coding using the models folder of NVivo7 to
generate models from basic coding of interview questionnaire transcripts. As such, data
presented in Figures 8 to 12 follow the requirements for (a) open coding; (b) the five
steps of axial coding as described in Figure 5, (causal conditions, context, intervening
variables, strategy, and consequences); and (c) selective coding.

100

Table 10
Patterns of EPM Practice An Overview
Attribute
Existence of an
employee
performance
management practice
Benchmarking of
practice

Degree of automation

Employee
performance
management software

Frequency of
appraisal exercise

Competitive
benchmarking of
employee
performance results

Observable Patterns of Employee

Performance Management Practice
100% of sample have employee
performance management practices

Participating Banks

70% of sample indicated

benchmarking to derive current
practice

Banks 1, 3, 4, 5, 6, 8, and
9

30% of sample did not benchmark

to derive current practice

Banks 10, 2, and 7

60% of sample had automated

processes

Banks 1, 2, 3, 4, 5, and 9

40% of sample had manual

processes

Banks 10, 6, 7 and 8

All

40% of sample did not use software Banks 10, 6, 7, and 8

30% of sample had in-house
software
10% of sample had off the shelf
software
20% of sample had hybrid software

Banks 1, 4, and 9

60% of sample had appraisals

twice a year
30% of sample conducts yearly
appraisals
10% of sample had monthly
appraisals

Banks 10, 2, 4, 6, 8, and 9

50% of sample benchmarks

employees

Banks 1, 5, 6, 8, and 9

50% of sample did not benchmark

employees

Banks 10, 2, 3, 4, and 7

Bank 5
Banks 2 and 3

Banks 3, 5, and 7
Bank 1

101

Attribute

Observable Patterns of Employee

Performance Management Practice

Participating Banks

Duration of employee
performance
improvement
programs

80% of sample have 6 months

performance improvement
programs

Banks 1, 2, 3, 5, 6, 7, 8,
and 9

20% of sample have one year

performance improvement
programs

Banks 10 and 4

20% of sample had none

Banks 10 and 6

20% of sample had 7-10%

60% of sample had less than 5%

Banks 3 and 9
Banks 1, 2, 4, 5, 8, and 7

70% of sample was pleased with

practice but had concerns

Banks 1, 2, 3, 4, 5, 8, and
9

10% of sample was pleased with

practice
20% of sample was not pleased
with practice

Bank 10

60% of sample had concerns about

effective matrices for performance
management

Banks 2, 5, 6, 8, and 9

Performance related
annual separations

Bank feeling on
Employee
Performance
Management practice

Bank concerns with

Employee
Performance
Management practice

Banks 6 and 7

30% of sample had concerns about Banks 3, 4, and 7

subjectivity of appraisals in support
functions
10% of sample had no concerns
Bank 10
Employee feeling on
Employee
Performance
Management practice

70% of sample were pleased but

had concerns

Banks 2, 3, 4, 5, 7, 8, and
9

30% of sample were pleased with

practice

Banks 1, 10, and 6

102

Table 11
Patterns of EPM Practice Improvement Opportunities
Attribute
Bank feeling on
Employee
Performance
Management practice

Observable Patterns of Employee

Performance Management Practice
10% of sample was pleased with
practice

20% of sample was not pleased

with practice

Bank concerns with

Employee
Performance
Management practice

Participating Banks
Bank 10

Banks 6 and 7

70% of sample was pleased with

practice but had concerns

Banks 1, 2, 3, 4, 5, 8 and 9

10% of sample had no concerns

Bank 10

30% of sample had concerns about Banks 3, 4 and 7

subjectivity of appraisals in support
functions

Employee feeling on
Employee
Performance
Management practice

60% of sample had concerns about

effective matrices for performance
management
30% of sample were pleased with
practice

Banks 2, 5, 6, 8, and 9

70% of sample were pleased but

had concerns

Banks 2, 3, 4, 5, 7, 8 and 9

Banks 1, 10 and 6

High-level findings from open coding of EPM practices within the sampled
population indicate that (a) all banks have EPM practices that were mostly derived by
benchmarking other practices, (b) most practices are automated, (c) employee appraisals
are usually conducted twice a year, (c) competitive benchmarking of employee appraisal
results is not too pervasive, (d) most banks have performance improvement programs for

103

low performing employees that last six months, (e) most banks have less than 5% of
annual performance related staff turnover, (f) most of the banks and bank employees are
pleased with the existing EPM practices but have concerns, which range from the
subjectivity of appraisals in support functions to the applicable performance matrices in
assessing employee performance.
Figures 9 to 13 indicate findings from axial coding of the core category of EPM.
Figure 9 presents causal conditions of EPM, and Figure 10 shows the EPM context.
Figures 11, 12, and 13 represent EPM intervening conditions, strategies, and
consequences, respectively.

104

Figure 9. EPM causal conditions

Findings from the study indicated that two types of causal conditions influence
the core category of EPM within the Nigerian banking industry. The two types of causal
conditions are internal and external. Indications are that bank strategy and budget are the
internal causal conditions, while business environment and industry regulations are the
external causal conditions. Banks 1 and 10, both seventh-era banks that joined the
industry during the private ownership era, identified internal factors alone as causal
conditions that influence their EPM practices. Bank 1 merged with only one bank, while

105

bank 10 did not merge with any bank during the recent industry consolidation. On the
other hand, Bank 2, also a seventh-era bank and had the highest number of international
locations merged with two other banks, and cited external factors alone as causal
conditions.
Banks 4, 6, and 7 cited internal and external factors as causal conditions to their
EPM practice. Bank 4 is a first-era bank that is over a century old and bank 6 is seventhera bank that is less than two decades old. Bank 7 is a third-era bank that is almost 50
years old.

Figure 10. EPM context.

106

The context or specific conditions that influence strategy in core category of EPM
are situations whereby (a) the human capital department coordinated application of EPM
policy, (b) EPM is at line function, and (c) the EPM process entails third party reviews of
the process. The main contextual factor in banks 2, 9, 7, 1, and 10 is third party reviews
of the process. The existence of third party reviews should enhance transparency of
performance reviews. Banks 2, 9, 1, and 10 are seventh-era banks and bank 7 is a thirdera bank.
Only bank 10s employees and organization were completely pleased with the
current EPM process, while the other banks indicated satisfaction and minor concerns
with subjectivity in assessing roles in the support functions to application of relevant
matrices. Bank 8 also indicated only one contextual factor, EPM, at line function. On the
other hand, some banks showed more than one contextual factor. For example, bank 3, a
seventh-era wholly indigenous organization, has performance management as a line
function and third party reviews as contextual factors. Bank 4, a first-era bank, showed
all three factors as contextual factors influencing EPM strategies.

107

Figure 11. EPM intervening conditions.

Intervening conditions are contextual conditions that influence the strategies

applied in EPM (Creswell, 2002). Findings from the study indicated that five intervening
conditions exist, and these include situations where (a) EPM is managed within a unit in
the human resources department, (b) third party review of the EPM process exists, (c) a
unit that monitors corporate performance and reports directly to the CEO exists, (d) the
human capital only coordinates application of the policy and communication to create
awareness, and (e) the EPM process is managed at line function. The existence of the

108

four intervening conditions tended to influence the actions that affect outcomes of the
EPM process, as shown in Figure 11.
Bank 5, an eighth-era bank and bank 6, a seventh-era bank, had EPM processes
managed by a unit within the human resources departments. Bank 8, also an eighth-era
bank, had EPM as a line function. Banks 1, 9, 7, 2, and 10 indicated EPM by a unit in the
human resources department and third party review of the EPM. In contrast to this
popular practice, intervening conditions in bank 3 are (a) a third party review of the EPM
process, (b) a unit in human resources department managing the process, and (c) a standalone corporate performance-monitoring unit that reports directly to the CEO, and EPM
at line function.
In a similar perspective to bank 3, bank 4s intervening conditions are (a) third
party review of the EPM process, (b) a stand-alone unit that monitors corporate
performance and reports to the CEO, (c) the human resources department that coordinates
implementation and communication of the EPM policies, and (d) EPM at line function.
The popular practice within the population sample is the existence of a unit within the
human resources department, and existence of third party review of the EPM process.

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Figure 12. EPM strategies.

Applicable strategies are specific actions that are outcomes of the core category of
EPM. Three broad strategies identified from the study are (a) assessment of leadership
capabilities or potential, (b) defining performance targets, and (c) creating awareness
about the EPM practice. Findings indicated that assessment of employee leadership
capabilities or potential are the main strategies in bank 4, while in banks 10 and 1,
creating awareness of the practice as the main strategy. Bank 2 has assessing leadership

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capabilities or potential and creating awareness of the practice as the focus of the banks
EPM strategy.
On the other hand, bank 9s strategy is defining performance targets and creating
awareness about the practice. Banks 7, 5, 8, and 6 indicated that their EPM strategies
entailed all three strategies: (a) assessment of leadership capabilities or potentials in staff,
(b) determination of performance targets, and (c) creating awareness about the banks
employee performance practice amongst staff. As such, the overriding actions that
influence outcomes of EPM practices within the population sampled are (a) assessment of
leadership capabilities or potentials in staff, (b) determination of performance targets, and
(c) creating awareness about the banks employee performance practice among staff, as
presented in banks 7, 5, 8, and 6 in Figure 12.

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Figure 13. EPM consequences.

Consequences of the EPM process are outcomes of implementing the strategies of

EPM. Observations from the research findings indicated that the strategies of EPM within
the population sampled as presented in Figure 12 are (a) assessment of leadership
capabilities or potentials in staff, (b) determination of performance targets, and (c)
creating awareness about the banks employee performance practice among staff. The
outcomes of these strategies or consequences of the process, as indicated in Figure 13, are
(a) achievement of organizational objectives and (b) recognizing and rewarding employee

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contributions. Observations from the study indicated that the consequences of EPM in
banks 3, 8, and 10 is achievement of organizational objectives, while for banks 5, 1, and
2, the consequences are largely recognizing and rewarding employees. On the other hand,
banks 6, 9, and 4 indicated that the consequences of EPM for them are both achievement
of organizational objective as recognizing and rewarding employees.

Context
Third party review of
Employee Performance
Management

Strategy
Causal Conditions
Internal (corporate
strategy and
budget)
Internal (business
environment and
regulation)

Assessment of employee
on leadership capabilities
or potential
Defining performance
targets
Creating awareness about
the Employee Performance
Management process

Intervening Conditions
Employee Performance Management within
human resources management function
Third party review of Employee Performance
Management process

Figure 14. Findings from axial coding of EPM practices.

Consequences
Achievement of
organizational
objectives
Recognizing and
rewarding
employees

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Findings from axial coding of the core category EPM indicated that conditions
that influence EPM are both internal and external. Internal factors are corporate strategy
and budget, and external conditions are developments in the business environment and
regulation. Strategies or specific actions involved in EPM are assessment of leadership
capabilities or potential in employees, defining performance targets across the bank, and
creating awareness about the employee performance practice. The strategies of EPM are
influenced by a contextual factors and intervening conditions. A major contextual factor
observed is third party review of the EPM process, and intervening conditions include
existence of the EPM function within the human resource department and on the other
hand by line management. Observable outcomes of implementing EPM strategies as
mentioned are achievement of organizational objectives, recognizing and rewarding
employees for contributions made in attainment of established performance goals.
Employee Learning and Development
RQ2 stated, Does the bank have an employee learning and development practice?
If yes, how did the existing employee learning and development practice emerge? What
are the processes involved in delivering the existing employee learning and development
practice, and who are those responsible for delivering the employee learning and
development process? The research findings on the employee learning and development
core category are presented in this section in two ways. The first form of presentation is
in the form of basic coding, using an analysis of the key attributes of employee learning
and development practices within the study sample. These high-level attributes are
presented in Tables 12 and 13 as patterns of employee learning and development practice
within the sample. The second form of presentation is by axial coding. As such, data

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presented in Figures 13 to 17 follow requirements for (a) open coding, (b) the five steps
of axial coding as described in Figure 5 (causal conditions, context, intervening variables,
strategy and consequences), and (c) selective coding.
Table 12
Patterns of EL and D Practice An Overview
Attribute

Observable Patterns of Employee

Learning and Development
Practice

Participating Banks

Existence of an
Employee Learning
and Development
practice

100% of sample have employee

learning and development
practices

All

Benchmarking of
practice

80% of sample indicated

benchmarking to derive current
practice
20% of sample did not benchmark
to derive current practice

Banks 1, 2, 3, 4, 5, 6, 8,
and 9
Banks 10 and 7

Degree of automation 60% of sample had manual

processes
40% of sample had automated
processes

Banks 3, 5, 6, 7, 8, and
10
Banks 1, 2, 4, and 9

Employee Learning
and Development
software

60% of sample did not use

software

Banks 3, 5, 6, 7, 8, and
10

40% of sample had off the shelf

software

Banks 1, 2, 4, and 9

Online competency
mapping

70% of sample did not a

competency mapping software
30% of sample had online
competency mapping software

Banks 3, 4, 5, 6, 7, 8,
and 9
Banks 1, 2, and 10

Frequency of training
needs assessment

90% of sample had annual

assessments
10% of sample had quarterly
assessments

Banks 1, 2, 3, 4, 6, 7, 8,
9, and 10
Bank 5

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High-level findings from open coding of employee learning and development

within the sampled population indicated (a) all banks have employee learning and
development practices that were mostly derived by benchmarking other practices, (b)
most practices are manual, (c) where processes are automated, software applications were
off the shelf software packages, (d) training needs assessments are largely conducted
annually, (e) most banks did not have competency mapping software.
Table 13
Patterns of Employee Learning and Development Practice Improvement Opportunities
Attribute

Observable Patterns of Employee

Learning and Development
Practice

Participating Banks

Bank feeling on
Employee Learning and
Development practice

60% of sample was pleased with

practice but had concerns

Banks 1, 3, 4, 5, 8, and
9

20% of sample was pleased with

practice
20% of sample was not pleased
with practice

Banks 2 and 10

Bank concerns with

Employee Learning and
Development practice

30% of sample had concerns

Banks 4, 5, and 8
timeliness of training interventions
20% of sample had no concerns
20% of sample had concerns about
being reactionary
20% of sample had concerns about
the need to increase engagement of
employees in the process
10% of sample could not state
concerns

Employee feeling on
Employee Learning and
Development practice

Banks 6 and 7

Banks 3 and 7
Banks 6 and 9
Banks 1, 2, 3, 4, 5, and
8

70% of sample were pleased but

had concerns with current practice

Banks 2, 3, 4, 5, 7, 8,
and 9

30% of sample were pleased with

current practice

Banks 1, 6, and 10

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In terms of improvement opportunities within the population sample, findings

indicated that (a) the majority of banks and bank employees were pleased with their
current employee learning and development practices but had concerns, and (b) concerns
expressed ranged from timeliness of training interventions to employee engagement in
designing training interventions for employees and the need for training interventions to
be proactive. Figures 15 to 19 indicate findings from axial coding of the core category of
employee learning and development.

Figure 15. EL and D causal conditions.

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Findings indicated three causal conditions that influenced the core category of
employee learning and development practices, including employee learning and
development processes generated from (a) role competency requirements, (b)
performance feedback, and (c) bank need and regulation. Banks 1, 9, and 2 had their
respected process generated from role competency requirements alone, while bank 3 had
its employee learning and development process generated from performance feedback
alone and bank 8s practice is generated from role competency, as well as bank need and
regulation. On the other hand, bank 6 indicated that its employee learning and
development process has role competency and performance feedback as causal
conditions, while banks 4, 5 and 7 had all three factors as causal conditions.

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Figure 16. Employee learning and development context.

The context or specific conditions that influence strategy in the core category of
employee learning and development are situations whereby (a) there exists a stand-alone
training and development department or function and (b) the training and development
function is within a unit in human resources department. The main contextual factor in
banks 5 and 6 is a stand-alone training and development department, while for banks 8, 2,
7, 10, 9, 4, 1, and 3, the main contextual factor is a training and development function
within the human resources department. The overall indication of a specific condition
that influences employee learning and development practice within the sampled

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population is a training and development function within the human resourced

department.

Figure 17. Employee learning and development intervening conditions.

Findings indicated that four intervening conditions or contextual conditions

which influence the strategies in the employee learning and development process
include situations where; (1) the training and development function resides within the
human resources department, (2) the training and development department is a stand
alone department, (3) employee learning and development is derived from bank need
and regulation, and (4) employee learning and development is derived from employee

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performance feedback. Banks 10, 1, 9 and 2 have training and development functions
within the human resources function, while bank 8 also has training and development
function within human resources, but in addition, derives employee learning and
development process from bank need and regulation.
Banks 4 and 7 have employee learning and development functions within the
human resources department and derive employee learning and development processes
from employee performance feedback, bank need, and regulation. Bank 3 has a training
and development function within the human resourced department and derives
employee learning and development from employee performance feedback. Bank 5 has
a stand-alone training and development function that derives employee learning and
development from EPM, bank need and regulation. The popular practice within the
population sample is the existence of a training unit within the human resources
department, and derivation of the employee learning and development process from
bank need, regulation, and employee performance feedback.

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Figure 18. Employee learning and development strategies.

Applicable strategies or specific actions that are outcomes of the core category,
employee learning and development are training interventions including formal, on the
job and e-learning, on one hand and various media for development interventions
including job rotation, job enrichment, project experience, coaching and posting on the
other hand.. Findings indicated that banks 1 and 3 mainly use employee learning and
development strategies such as classroom training, e-learning, and on the job training.
Banks 5, 6, 2, 10, 7 and 9 use employee learning and development interventions that

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include job rotation, job enrichment, project experience, coaching and posting. Bank 4,
uses both strategies to address employee learning and development gaps. As such, the
overriding actions that influence outcomes of the core category, employee learning and
development within the population sampled include job rotation, job enrichment, project
experience, coaching and posting.

Figure 19. Employee learning and development consequences.

Observed consequences or outcomes of the employee learning and development

process within the population sampled indicated two perspectives, namely achievement

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of both employee and organizational objectives and achievement of only organizational

objectives. Banks 4, 5, 9 and 2 indicated achievement of both employee and
organizational objectives as consequences of the EPM process, while banks 8 and 10
showed achievement of only organizational objectives as consequences of the employee
learning and development process. The overriding consequence or expected outcomes of
employee learning and development within the sampled population, is achievement of
employee and organizational learning objectives.

Context
Training and development
function within the human
resources department

Strategy
Causal Conditions
Role competency
requirements
Performance
feedback
Bank need and
regulation

Various learning
interventions including
formal training, on the job
training, coaching, job
enrichment, job rotation,
project experience

Consequences
Closure of bank
and individual
employee learning
gaps

Intervening Conditions
Training and development function within
the human resources management
department

Figure 20. Findings from axial coding of employee learning and development practices.

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Findings from axial coding of the core category, employee learning and
development indicated that conditions which influence the employee learning and
development process within the sampled population are (a) role competency
requirements, (b) employee performance feedback, and (c) bank need and regulation.
Strategies or specific actions involved in employee learning and development are diverse
and include various interventions including formal training, on the job training, coaching,
job enrichment, job rotation, and project experience. Location of the training and
development function within the human resources department is both a contextual factor
and an intervening condition, in that context implies specific conditions that influence
strategy and intervening conditions are contextual conditions, which influence the
strategies (Creswell, 2002). Closure of employee and organizational learning and
development gaps was the observed consequence or outcome of employee learning and
development practices within the sampled population.
Link EPM and Employee Learning and Development
RQ3 asked, Is there an interface between the existing EPM system and employee
learning and development practice? If yes, what is the effect of the EPM system on the
employee learning and development practice? Is the employee learning and development
practice linked to the existing EPM system? If yes, what value does the bank derive from
the interface between the existing EPM system and employee learning and development
practice? What employee learning and development process depends on the outcomes of
the existing EPM system?
Presentations on the research findings on the core category of the link between
EPM and employee learning and development are as indicated in this section. General

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findings indicated existence of a linkage between EPM and employee learning and
development. The relationship generated is an associated relationship between the two
core categories. Figures 21 and 22 show high-level linkages and relationships observed.

Figure 21. EPM themes.

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Figure 22. Employee learning and development themes.

Further observations from basic coding and modeling on transcribed interview

transcripts indicated that the linkage or associated relationship between EPM and
employee learning and development is in terms of (a) assessment of employee leadership
capabilities or potential in EPM, (b) definition of role competencies in designing
employee learning and development interventions, and (c) creation of learning and

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development interventions using employee performance feedback. Figure 23 further

clarifies the interfaces.

Figure 23. Observed interfaces between EPM and employee learning and development.

The interfaces observed were slightly visible in banks 8 and 2, where the
interfaces were in (a) assessment of leadership capabilities or potential in employees and
(b) definition of role capabilities. Banks 1, 3, and 9 did not show any link between EPM
and employee learning and development. Banks 6, 5, 4, and 7 presented linkages between

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EPM and employee learning and development on all three aspects: (a) assessment of
leadership capabilities or potential in employees, (b) definition of role capabilities, and
(c) closure of observable employee performance gaps.
Creswell (2002) noted that selective coding entails writing a theory from the
inter-relationship of categories in the axial coding model, and continued, it provides
and abstract explanation for the process being studied (p. 444). As such, selective coding
facilitated derivation of the overview of EPM practices within the industry.

Context
Role definition
Employee personal & career aspirations
Organizational competence requirements

Causal Conditions
Corporate bearing:
Corporate life
cycle
Strategy and
budget
Business
environment

Strategy
Deployment of applicable
performance assessment
tools and platforms
Optimal use of information
communication technology
Assessment centers

Intervening Conditions
Responsibility for employee and corporate
performance management

Figure 24. Selective coding of the EPM process.

Consequences
Enhancing
stakeholder value
Recognition and
reward
Implementing
consequent
management to
address gaps

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Outcomes of selective coding of themes of EPM practice within the population

sample indicated causal conditions, intervening conditions, context, strategy, and
consequences. Figure 24 is a refined version of findings as presented in Figure 14, which
presented findings from axial coding of EPM.

Context
Role definition
Employee personal & career aspirations
Organizational competence requirements

Causal Conditions
Corporate bearing:
Corporate life
cycle
Strategy and
budget
Business
environment

Strategy
Coaching
Self learning via e-learning
platforms
Classroom training
On-the-job training
Job rotation
Experiential assignments.

Consequences
Performance
planning
Performance
consequence
management
Closure of
employee learning
gaps

Intervening Conditions
Shared responsibility for employee
learning and development

Figure 25. Selective coding of the employee learning and development process.
Outcomes of selective coding of themes from employee learning and development
practices within the population sample indicated causal conditions, intervening
conditions, context, strategy, and consequences as presented in Figure 25, which is a

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refined version of findings presented in Figure 20, which indicated findings from axial
coding of employee learning and development.
RQ3 asked, Is there an interface between the existing EPM system and employee
learning and development practice? If yes, what is the effect of the EPM system on the
employee learning and development practice? Findings in terms of linkage between EPM
and employee learning and development within the sampled population indicated an
associated relationship. Themes and patterns of the effects of EPM on employee learning
and development also emerged as (a) assessment of employee leadership capabilities or
potential, (b) derivation of required role competencies, and (c) derivation of learning and
development gaps from employee performance feedback. The data tend to support the
Price (2004) view that the combining EPM and employee learning and development in
the human resource management function should enhance an organizations capacity to
effectively translate strategy into results (Price, 2004).

Deployment of
applicable performance
assessment tolls and
platforms
Optimal use of
information
communication
technology

Employee Performance
Management Process Strategies

Coaching
Self learning via elearning platforms
Classroom training
On-the-job training
Job rotation
Experiential
assignments

Employee Learning and

Development Process Strategies

Figure 26. EPM and employee learning and development have mutually exclusive
strategies.

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The mutually exclusive nature of both processes aligns with the Price (2004)
indication that the human resource development concept is widely viewed as a strategic
aspect of the human resource management system, with EPM and employee learning and
development as two subsets. Strategies in the two processes as shown in Figures 24 and
25 are mutually exclusive as shown in Figure 26.

Enhancing
stakeholder
value

Closing
identified skill
gaps
Implementing
consequence
management

Employee Performance
Management Process Outcomes

Performance
planning

Employee Learning and

Development Process Outcomes

Figure 27. EPM and employee learning and development have associated outcomes.
The associated relationship observed between EPM and employee learning and
development is further displayed in how the outcomes of the two processed tend to
support each other as shown in Figure 27.
Broad industry practice of EPM and employee learning and development
observed from findings of the study indicates that EPM and employee learning and
development share commonalities in terms of causal conditions and consequences, in
addition to other commonalities in terms of contextual and intervening conditions as
shown in Figure 28.

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Causal conditions and consequences

Employee Learning & Development

Employee Performance Management

Contextual and intervening conditions

Figure 28. Current EPM Concept in Practice within the Nigerian Banking Industry.
The broad EPM concept observed from primary data within the Nigerian banking
industry presents a situation that indicates an associated relationship between EPM and
employee learning an development in terms of similarities in causal conditions and
consequence factors that include (a) corporate bearing, (b) closure of learning gaps, (c)
employee recognition and reward and (d) implementation of consequence management.
Contextual and intervening conditions in EPM and employee learning and development
also indicated similarities in terms of (a) parties involved in the EPM and employee
learning and development processes, (b) location of the unit with responsibility for EPM
and employee learning and development respectively.
A key feature of the broad concept in practice is that there appears to be
suboptimal interface between the EPM processes and employee learning and

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development processes, as indicated by the situation whereby 60% of the sampled

population indicated link between EPM and employee learning and development. Only
20% of the sampled population indicated complete satisfaction with the current employee
learning and development practice. On the other hand, 70% of the sampled population
indicated satisfaction with the existing practice, but also had concerns about (a) training
interventions being reactionary, (b) training interventions not being timely in addressing
identified skill gaps, (c) employees not being involved in the selection and planning of
training interventions. In a similar perspective, only 10% of the sampled population
indicated complete satisfaction with the current EPM practice, as 70% of the sampled
population indicated satisfaction with the existing practice but also had concerns ranging
from subjectivity of performance assessment of job roles in support function and
derivation of applicable performance matrices.
Key findings are that even though 60% of the study participants indicate linkage
between the EPM and employee learning and development practices, the concerns
indicated with both the EPM and employee learning and development practices tend to
raise concerns about how effective those linkages have been. Whilst some of the practices
appear to leverage on varying proportions of propositions by the general systems theory
with extensions by Khun and some aspects of the adult learning theory with extensions
by Speck, the practices appear to be deficient in structure and synergy. Thus, indications
as expressed in the concerns cited by some of the banks in the study.
Summary
The study was a qualitative grounded theory design study that entailed the use of
qualitative study CAQDAS program, NVivo7. The study had 29 participants drawn from

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12 out of the current 24 banks that make up the Nigerian banking industry. However, two
banks out of the 12 could not participate fully due to on-going integration and corporate
restructure for strategic repositioning, which is indicative of the dynamism in the
industry. The primary data collection period lasted from March 2008 to July 2008.
Chapter 4 described the data collection and data analysis procedures using a
systematic approach to grounded theory. Presentation of the research findings align with
the three research questions and compliment the core categories of the study, for purposes
of clarity. Data analysis entailed open, axial and selective coding using the five steps of
axial coding in a systematic approach to grounded theory. Selective coding was
instrumental to determining the link between EPM and employee learning and
development to generate the final finding on themes and patterns of practice.
The findings with regard to the core category EPM indicated that all participants
had EPM practices that were largely manual and involved annual performance appraisals
with bi-annual performance reviews. Conditions that influence EPM are corporate
strategy and budget as internal factors, and business environment and regulation as
external factors. Specific conditions that influence employee performance strategy
included the existence of third party review of the EPM process, and other conditions that
influence the EPM process are the existence of EPM function within the human resources
department. Observed EPM strategies included assessment of leadership capability or
potential, defining performance targets and creating awareness on the EPM practice.
Consequences or outcomes of EPM practice were achieving organizational
objectives, recognizing and rewarding employee contributions. Findings in terms of the
core category employee learning and development indicated that all participating banks

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had employee learning and development practices which sought to close identified
performance gaps, were largely manual processes and in most times reactionary in
implementation. Conditions that influence core category are role competency
requirements, employee performance feedback, and bank need and regulation. Specific
conditions that influence employee learning and development strategy includes the
existence of employee learning and development function within the human resources
department. Observed employee learning and development strategies were varied and
included formal training, job rotation, job enrichment, coaching and on-the-job training,
and e-learning. Consequences or outcomes of employee learning and development are
closure of employee and organizational learning gaps.
Findings in terms of linkage between EPM and employee learning and
development indicated an associated relationship with regard to outcomes or
consequences of the two processes. Themes and patterns of the effects of EPM on
employee learning and development also emerged as (a) assessment of employee
leadership capabilities or potential, (b) derivation of role competencies required, and (c)
derivation of learning and development gaps from employee performance feedback.
Although the primary data tend to indicate a link between the EMP and employee
learning and development practices, effects of the EPM practices on the employee
learning and development practices appear to be sub optimal given concerns raised by
most participants about the existing EPM and employee learning and development
practice. Chapter 5 will highlight the significance, assumptions, limitations, and
delimitations of study. The chapter will propose an improvement option that should
enhance the positive effects of the EPM practice on the employee learning and

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development process for competitive advantage of banks in the Nigerian banking

industry, highlighting likely implications of the study and recommendations for further
research.

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CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

The rate of bank failure in developing countries is increasingly becoming an issue
of concern (Feltenstein, 2000). Recent studies of the Nigerian banking industry by
Babalola (1989), FITC (2000), Akinniyi (2002), and Ekpe (2005) indicated that the
Nigerian banking industry is competitive and dynamic, with a high rate of corporate
mortality, sporadic regulatory interventions, and human resource skill deficiencies. The
recent research findings listed also indicated that in a bid to remain competitive, banks in
Nigeria have tended to place more emphasis on employee performance indices such as
profits and deposit volumes, which appears to have diminished the importance of other
employee performance indices. For instance, Babalola identified profitability and asset
base as the traditional measures of bank performance in Nigeria, a practice that appears to
have influenced employee performance goal setting within banks.
The Ebhohimen study (as cited in FITC, 2000) confirmed the lack of literature on
human resource management practices and staffing in banks within the Nigerian banking
industry, and how most studies on the industry have shied away from human resource
information despite the history on bank failure and perceived suboptimal human resource
management practices. Recent industry-wide consolidations in 2005 brought about a
reduction in the number of banks within the Nigerian banking industry from 89 to 25 as
of January 2006 through series of mergers, acquisitions, and recapitalizations. The
number of banks further reduced to 24 as of April 2008, following a merger between two
banks in the industry.
According to the CBN, some benefits of the recent consolidation include (a)
emergence of stronger banks from the earlier 89; (b) larger capital base from under US$3

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billion to over US$9 billion; (c) first-time rating of Nigerian banks by international rating
agencies including Standard and Poor, Fitch, and similar agencies; (d) increase in total
branch network of banks from 3,200 in 2004 to 3,866 in April 2007; (e) existence of over
seven banks with over US $1 billion in Tier-1 capital as of the end of 2007; (f) 11 banks
with market capitalization ranging between US $2 billion and US $7 billion; (g) 16 banks
now in the top 1,000 banks in the world, compared to 2003 when there was none; (h) 5
banks now on the list of top 10 banks in Africa; (i) increasing capacity of banks in
Nigeria to create big ticket assets; and (j) banks in Nigeria now being described as fastest
growing banks (Soludo, 2007). This study seeks to derive a new theory on EPM from
existing practice, thereby enhancing a deeper understanding of the subject for competitive
advantage of banks in developing countries.
Chapter 5, the final chapter in the study, builds on the overview provided in
chapter 1 to connect the highlights from the existing body of knowledge on subject within
the research methodology described in chapter 3 to the answered research findings
presented in chapter 4. The chapter contains the following sections: (a) research method,
(b) significance of the study, (c) data analysis (d) assumptions, limitations and
delimitations, (e) discussion of results, (f) implications and recommendations, (g)
recommendations for further research, and (h) summary.
Research Method
The research method entailed application of the qualitative grounded theory
design, using a systematic approach to data analysis that included open, axial, and
selective coding to generate the themes and patterns. The intension was to use the
observed themes and patterns of practice to generate a new theory. The initial research

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population targeted was 50 participants consisting of 25 CEOs and 25 heads of human

resources management drawn from the 25 banks licensed to transact banking business in
Nigeria as of January 2006. However, two banks in the industry merged, thereby
reducing the number of banks to 24, resulting in the reduction of the target population to
48 participants, consisting of 24 CEOs and 24 heads of human resources management
drawn from the 24 banks licensed to transact banking business in Nigeria as of April
2008.
The research instrument needed validation, so five selected EPM practitioners
received the questionnaire for review. Given that the research initially targeted population
was 50, the pilot testing of research instrument had five participants, representing 10% of
the initial target population. Participants for the pilot testing were not employees of the
organizations that participated in the study. The feedback from the pilot study was
analyzed using NVivo7 software, and outcomes used to update the interview
questionnaire for clarity and practicality.
Primary data for the study emerged from two levels of one-on-one interviews. All
25 banks received letters requesting their consent to enable the CEO and head of human
resources management to participate in the study. Twelve banks (50% of the industry as
of June 2008) consented to participate in the study, resulting in a sample size of 24
participants made up of 12 CEOs and 12 heads of human resources. However, only 10
banks fully participated in the study, as two banks could not conclude the process. One
bank was undergoing post-merger integration and the second bank was undergoing a
major business transformation and restructuring exercise in preparation to enhancing
global presence. Fixing interview appointments with the CEOs was impossible; as such,

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officers with bank wide responsibilities for EPM and employee learning and growth had
first-level one-on-one interviews in place of heads of human resources management. The
heads of human resources provided the second-level interviews in place of the CEOs.
Outputs of each interview level were uploaded into NVivo7 for analysis, after
transcribing and validating the paper recordings of the one-on-one interviews.
Even though the research purpose was to generate a new theory from the themes
and patterns that emerged from the study, upon completion of data analysis, it appeared
there was not enough evidence to support a new theory or paradigm. In spite of the
constraint of insufficiency of data to generate a new theory, the qualitative data generated
reflects newly collected, current data, that while still qualitative in nature may suggest
phenomenological findings from the lived experiences of those in the survey population.
Thus, the recommendations are as applicable to findings from a phenomenological study
as the recommendations suggest common findings and categories of data for further
exploration.
Significance of the Study
To ascertain the significance of the study, a review of study deliverables within
the context of global trends in the financial services industry, on-going evolution of the
Nigerian banking industry, historical challenges of the industry, recent achievements,
socio-economic projections for Sub Saharan Africa, and highlights from recent research
findings are foundational. Ezeoha (2007) recognized that banking industry consolidation
in Nigeria is the latest attempt by the CBN to solve the problem of bank distress and
failure, and to reposition the industry for national and global economic challenges.
Ezeoha also cautioned that some of the operational difficulties facing the banks before

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consolidation were and are external to them, so consolidation alone was not the solution
to the problem of the industry. These external factors have shown up as causal conditions
in the study, which listed business environment as examples that affect internal processes
such as EPM and employee learning and development. In terms of internal factors for
consideration, Kaplan (2003) indicated that as a company grows; establishing a system
for managing behavior and ensuring that the results are consistent with the goals and
strategies of the organization become very critical. According to Kaplan, for companies
to gain strategic advantage over competitors based on the strength of employees, leaders
of such organizations need to manage the performance of the companys employees, the
relationship between employee performance, and the organizations strategies and goals.
This qualitative grounded theory study investigated EPM and employee learning
and development practices within the Nigerian banking industry using the systematic
approach to grounded theory. The purpose of the study was to derive themes and patterns
of EPM and employee learning and development practices within the Nigerian banking.
The main objective was to develop and propose a new theory leading to a deeper
understanding of the process of EPM for the competitive advantage of banks in
developing countries. Given the peculiarities of the Nigerian banking industry, possible
opportunities for growth of the industry based on socioeconomic projections, and
strategic focus of the FSS2020 initiative, the significance of the proposed research to
leadership could include (a) an expansion in the body of knowledge about human
resource management practices within the Nigerian banking industry, (b) feedback to
bank human resource practitioners in Nigeria on effective strategies for enhancing
innovation and high performance in the workplace, (c) enhancement of a higher degree of

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consciousness for a balanced view to designing employee performance systems, and (d)
some degree of influence on policy and strategy for EPM in global banks with interests in
developing countries, indigenous banks in developing countries, institutions of learning
with interests in designing, and consulting firms.
Data Analysis
Data analysis involved open, axial, and selective coding to facilitate development
of a new theory. NVivo7 was the data analysis software used in the qualitative grounded
theory research. Stages of data analysis included uploading of integrated, transcribed, and
validated interview transcripts into document folders in NVivo7; microanalysis and
categorization of treated data according to different folders; coding of interview
transcripts for each participating bank; and generation of queries, models, and
relationships to establish themes and patterns of practice. From these evolving thematic
inferences, a set of interrelated concepts concurrently emerged from open, axial, and
selective coding, but the thematic inferences derived in the study appear insufficient to
develop a new theory. The process of thematic construction after axial coding in a
systematic approach to generating a grounded theory infers selective coding (Creswell,
2002).
Assumptions, Limitations, and Delimitations
The study had three assumptions stated in chapter 1: (a) there would be no
research on the same topic, within the proposed research environment and population
during the course of the proposed research, (b) the size of the Nigerian banking industry
will remain at 25 banks given that banking industry is undergoing reforms and the CBNs
present focus is on consolidating on the reforms rather than allowing new entrants into

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the industry, and (c) the study participants will trust the research process and provide
accurate data during data collection in spite of intense competition as the researcher is not
an employee of a competitor bank. A new limitation that has emerged after data analysis
is insufficiency of derived data to generate a new theory.
True to the lack of literature on the subject area of EPM, the study lasted over 18
months from when the first request for consent letters were sent in November 2006 to
July 2008 when data collection was completed and there was not any new study on topic
of EPM within the research population. There were no new entrants into the Nigerian
banking industry during the research period, but the number of banks in the industry
reduced from 25 to 24 because of a merger. 50% of the banks in the industry consented to
participating in the study, with some banks submitting four participants for interview,
resulting an average of two to three participants for each bank and 29 interviews overall.
Two earlier limitations of the research design presented in chapter one were that
(a) given intense competition and on-going reforms in the Nigerian banking industry,
most banks are still undergoing various forms of organizational restructure and
development initiatives, and not all banks will be able to participate in the study; and (b)
the proposed research population is limited to banks in Nigeria, and the research findings
cannot be generalized across all developing countries. Only 50% of banks in the industry
consented to participate, while other banks declined because either they could not afford
the time or were exploring new practices. Two out of the 12 banks that consented could
not complete the process because of internal recapitalization and integration projects. If
the research population included other developing countries in Africa, like Ghana for
example, where the banking industry is still in earlier stages of development, the research

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findings may differ. On the other hand, conducting the study in any of the developed
countries or South Africa will likely show a different result.
The study investigated only banks that consented to data collection at their
premises. As such, the study entailed primary data collection from only a sample of bank
executives involved in bank-wide EPM and employee learning and development
processes across 12 banks. The study only focused on EPM and employee learning and
development practices alone. The study did not investigate other aspects of human
resource management and human resource development such as recruitment, career
management, and successions planning, which all have implications on employee
performance outcomes.
Discussion of Results
Chapter 1 of the study provided a broad overview of the study including the
research problem, purpose, and theoretical framework. The theoretical framework section
as summarized in Figure 2 in chapter one provided an overview of related transitions
from germinal theories and concepts in search of extension of body of knowledge on
EPM. Chapter 2, the literature review, chronicled a historical overview of issues related
to the research study and the three research questions, using a literature map as indicated
in Figure 3. Chapter 3 reviewed the grounded theory methodology of the study. Chapter 4
of the study explained the research findings of each of the research categories in
alignment with the three research questions as summarized in Figures 14, 20, 21, and 22.
Figure 28 presented a broad view of concept currently in practice within the sampled
population.

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The results section of chapter 5 presents a recommendation of a EPM paradigm

within the background of selective coding outcomes discovered in chapter 4, as well as
the three research questions, and in the context of existing knowledge chronicled in
chapter 2 in order to propose areas of further research in search of a new theory of EPM.
The primary outcome of a grounded theory design study is a theory with specific
components: a central phenomenon, causal conditions, strategies, conditions and context,
and consequences (Creswell, 2007, p. 68). The study had sought to establish a link
between a new theory proposition and the findings from selective coding to address the
research problem, purpose, theoretical framework, and significance to leadership
indicated in chapter 1. The results of the study did not yield the outcome planned at the
beginning of the study, even though the study applied grounded theory approach to
primary data analysis, in line with the systematic approach, using the qualitative data
analysis software, NVivo7. Findings indicated that the banks within the sampled
population appeared to be using hybrids of existing theories that resulted in various
models in the EPM and employee learning and development practices. Past research as
presented in the literature review section of the study have developed a number of
theories in both EPM and employee learning and development areas in order to achieve
optimum success in the organization. Nevertheless, is there a theory that stands out by
using a model that integrates a number of these theories? Is there a model that fully
integrates the various theories in EPM and employee learning and development
practices? Has such a model influenced the bottom line financial success of an
organization, as defined by increase of shareholder value? The broad concept in practice
within the sampled population of the Nigerian banking industry appears to lack

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integration and structure as seen in Figure 28, and may be viewed in the light of past
research indications of (a) high mortality rate within the industry, (b) persistence of
human resource practice issues across the eight eras of banking in the Nigerian banking
industry, and (c) the need for the banks in the Nigerian banking industry to acquire global
competitive advantage given positive prospects of the industrys potential as projected by
the Boston Group, the Economic Intelligence Unit, Goldman Sachs and the FSS 2020
Project earlier highlighted in the problem statement section of the study.
For instance, RQ1 asked, Does the participating bank have an EPM system in
place? If yes, in what form does it exist? Research findings indicated that all participants
have EPM systems in place. Causal conditions that influence EPM as observed from open
coding were (a) link to corporate strategy and budget, with (b) business environment and
regulation as indicated in Figure 9. Findings from axial coding as presented in Figure 14
classified the causal conditions observed in Figure 9 as internal and external factors.
Outcomes of selective coding of EPM presented in Figure 24 further presents causal
conditions as (a) corporate life cycle, (b) strategy and budget, (c) business environment
and regulation. In terms of causal conditions, the description of a system as portrayed in
the general systems theory aptly describes the overview of how banks exist within the
Nigerian banking industry (Bertalanffy, 1972). In furtherance of the systemic view, Kuhn
(1974) mentioned the detector, selector, and effector functions of the system. The selector
function derives from the rules that the system uses to make decisions, and the Kuhn's
model stresses that the role of decision is to move a system towards equilibrium.
Research findings indicated business environment and regulation as causal conditions,

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that tend to align with the context of the general systems theory, the Khun Model, the role
of CBN, and recent developments in the Nigerian banking industry.
The absence of linkage to the business context to the entire process is a major gap
in all definitions of EPM reviewed. Only the Balanced Score Card perspective closely
relates to aligning EPM to the internal and external causal conditions identified in the
study. Hickson and Hinings (1971, p. 227) indicated that the concept of work
organizations as interdepartmental systems leads to a strategic contingency theory,
explaining differential subunit power by dependence on contingencies ensuing from
varying combinations of coping with uncertainty, substitutability, and centrality. The
need to recognize internal and external causal conditions becomes even more important
in a dynamic industry given that organizations require consistent levels of high
performance from employees to thrive in a competitive business environment (Newstrom
& Davis, 2002, p. 139). With regard to the observations of the study, EPM practices must
align to factors that contribute to the emerging dynamic business environment. As such,
selective coding of the EPM practices indicated in Figure 24 reflect corporate bearing is a
causal condition that is a mix of (a) corporate life cycle stage, which varies widely and
determines internal causal conditions such as strategy and budget, and (b) business
environment, which includes the industrys growth phase, extent of competition, and
regulatory expectations.
Other contextual and intervening conditions as reflected in Figures 10 and 14 that
influence EPM strategy include the existence of third party review of the process and
situations where the EPM function is within the human resources department. The third
party reviews exist especially to add validity to performance assessment results, as

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decisions on matters such as recognition, reward, career progression, and exits are
outcomes and consequences of the process. Ramsey (as cited in Gliddon, 2004) asserted
that entire lives and careers are shaped or shattered by a single written evaluation because
written evaluations commonly determine wage increases, bonuses, promotion
possibilities, and job security. EPM is an aspect of management within the human
resource management domain that includes directing human behavior in a collaborative
and non-coercive manner. Thus, there is a need for collaborative management of the
process between the human resources department, respective units and departments,
organizational leadership, and the internal audit function. According to Wren (1994), as
humans have evolved, so have organizations. Stoner (1995) further explained that
management is the process of planning, organizing, leading, and controlling the work of
organization members, as well as using all available organizational resources to reach
stated organizational goals. The aspect of EPM as a shared responsibility reflects as an
intervening condition in Figures 11 and 24. If the EPM process seen as a leadership
responsibility and a complement to coaching or mentoring, then the concerns about
where EPM should be located should not be a source of anxiety. Most especially, if
leadership is seen within the context of transformational leadership, which entails the use
of non-coercive mean to influence members of a team and thereby motivate individuals
within the team, to accomplish some goal (Gibson, Ivancevich, & Donnelly, 1997). The
performance component is even more important, as leaders are expected to have a vision
of what can be done, what should be done, and be able to communicate such information
clearly (Kirby & Goodpaster, 2002 ). Thus, the process of EPM is a component of
organizational performance management and a cross functional process which should

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involve the entire organization in a way that management, as a function, is a component

of leadership.
In the light of the transformational leadership and need for collaboration,
intervening conditions to EPM are EPM as a shared responsibility between (a) the human
resource function which is the custodian of the work culture, policies, and facilitator in
the process, (b) line function which has the corporate performance planning and coaching
responsibility, (c) strategy and financial control functions should have the corporate
performance and alignment tracking responsibility, (d) individual employees career
aspirations, and (e) internal audit and enterprise risk management, which has a
responsibility of ensuring equity and compliance to policy provisions to mitigate
reputational risk to the organization in case of litigation.
Contextual issues or conditions that could influence the process of EPM are
indicated in Figure 24 are (a) employees job role definition and specifications in terms of
responsibilities, competencies, reporting relationships, and key performance indicators;
(b) employees personal and career aspirations as derivable from coaching and career
plans; and (c) organizational competence factors such as work tools, enabling platforms,
and compliance to stated policies. Boysen et al. (1999) mentioned employee
accountability for EPM outcomes, performance measurement as a business management
model for decision-making, and a customer-focusing tool. The need for shared
responsibility for employee and corporate performance management also tend to align
with the requirements of transparency and effective corporate governance requirements.
The Knowles (1970) Theory of Andragogy (adult learning theory) (as cited by
Weisenseel, 1991) indicated that (a) adult learners should be involved in planning and

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evaluating their learning, (b) adults appreciate past experience, and even mistakes
provide basis for learning activities, (c) adult learning materials should have immediate
relevance to their job or personal life, and (d) adult learners prefer problem-centered
rather than content-oriented learning. Speck (1996) leveraged on these propositions and
listed critical factors for effective adult learning as (a) the need to structure the learning in
a way that allows support from peers; (b) the importance of eliminating any feeling of
fear of being judged in adult learners during learning; (c) the need to allow adult learners
to demonstrate learning and receive regular constructive feedback; (d) the importance of
creating opportunities for small-group activities to enable adult learners share, reflect,
internalize experiences; and (e) the need to accommodate diversity, facilitate learning,
and providing coaching opportunities.
Strategies applied in EPM within sampled population as shown in Figures 12 and
24 include defining performance targets, assessing leadership capabilities or potentials in
employees, and creating awareness about the EPM process amongst stakeholders. In
terms of the process, 70% of the sampled EPM practices were derived from some form of
benchmarking and 90% of the sampled population had annual performance appraisals
with mid year reviews. Sixty percent of the sampled practices are manual, and of the 40%
that have automated processes, most were off-the-shelf EPM software programs.
Woodford & Maes (as cited in Gliddon, 2004) maintained that the EPM process is too
costly in terms of information technology infrastructure, loss of work time, loss of
employee motivation and morale.
Huber (1990) (as cited in Scott, 2003) stated that technologies support the more
rapid and accurate identification of problems and opportunities, increase the availability

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of timely information, and in other ways improve both speed and quality of decision
making. Zuboff (1985) (as cited in Scott), clarified that technology also increases ability
to record, store, analyze, and transmit information in ways that permit greater flexibility,
timeliness, and overcoming distance barriers. The term technology integration means
viewing technology as an instructional tool for delivering subject matter in curriculum
already in place (Woolbridge, 2004). Implementation of technology integration entails
incorporating technology and technology-based practices into daily routines, work, and
management of organization based on predefined standards with minimal human
interference.
With regard to the need for real-time, Online, decision making tools, as well as
empowerment of employees, transparency of the EPM process, and strategies of the
EPM, (all of which are specific actions that are entailed in the core category), EPM will
include (a) deployment of applicable performance assessment tools and platforms that
integrate with the core management information system for effective decision making
and (b) optimal use of information and communication technology using self-service and
e-learning opportunities. Outcomes of EPM practice within the sampled population as
presented in Figures 13, 14 and 24 were two fold, and included (a) achieving
organizational objectives and (b) recognizing and rewarding employee contributions. In
view of high mortality rate in the Nigerian banking industry, sighted human capital
management deficiencies in resent research findings on the research environment,
transformational aspirations for the financial services sector, and socio-economic
projections for the country, outcomes of the EPM process should present a more holistic
perspective.

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Aspirations of a bank in Nigeria in the light of contextual issues indicated above

should leverage on provisions of the Baldrige Model for Performance Excellence
(Baldridge, 2007) which include (a) leadership; (b) strategic planning; (c) customer and
market focus; (d) measurement, analysis, and knowledge management; (e) human
resource focus; (f) process management; and (g) business results. A bank that currently
operates or plans to operate within the Nigerian banking industry in the consolidation and
post-consolidation era aspires to operate based on a defined business principle with an
orientation that (a) employees are the heart of the organization, (b) all stakeholders will
pursue excellence, (c) the bank would manage risk prudently and professionally, (d) the
bank would build business on confidentiality, (e) the bank will assess business partners
on ethical standards and principles, (f) the bank would be a responsible institution and a
good corporate citizen, (g) the bank would respect human rights and the environment,
and (h) the bank would be accountable for its actions and will be open about them.
As a result of the necessary institutional reorientation and focus required to
competitively position banks, aspired outcomes of the EPM should be the business
principle, sense of purpose, and corporate vision as presented in Figure 24, which include
(a) enhancing stakeholder value which includes customer engagement, enhancing
shareholder value, enhancing employee engagement, and achieving optimal corporate
social responsibility; and (b) consequence management to address areas of misalignment
in (a).
RQ2 asked, does the participating bank have an employee learning and
development practice in place? If yes, in what form does it exist? Research findings from
open coding of the core category employee learning and development indicated that

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causal conditions that influence core category are (a) role competency requirements, (b)
employee performance feedback, and (c) bank need and regulation. The causal conditions
for employee learning and development should be appear to be similar to the causal
conditions for employee performance management and they must align to factors that
contribute to the emerging dynamic business environment as seen in Figure 15. As such,
corporate bearing is a causal condition that is a mix of (a) corporate life-cycle stage,
which varies widely and determines internal causal conditions such as strategy and
budget; and (b) business environment, that includes the industrys growth phase, extent of
competition and regulatory expectations. Findings from axial coding of employee
learning and development as presented in Figure 20 and selective coding of the employee
learning and development practices presented in Figures 25 tend to confirm these
findings.
Contextual issues or conditions that could influence the process of employee
learning and development indicated in Figure 15 and 25 are similar to contextual
conditions applicable to EPM, and these include (a) employees job role definition and
specifications in terms of responsibilities, competencies, reporting relationships, and key
performance indicators; (b) employees personal and career aspirations as derivable from
coaching and career plans; and (c) organizational competence factors such as work tools,
enabling platforms, and compliance to stated policies. A specific condition that
influences employee learning and development strategy within sampled population was
the existence of an employee learning and development function within the human
resources department.

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A high-level overview of banks within the population sample indicates that 60%
of the sampled banks were seventh-era private ownership banks, with 25% being eighthera consolidation banks. The remaining 17% of banks sampled consist of a first-era bank
and a third-era bank. Ninety percent of the sampled banks had gone through a merger or
acquisition from 2005 to date, with 67% of the sampled banks having integrated 2-3
banks within the period. The implication of such a finding is that majority of the sampled
banks are in their growth or introductory phases of their business life cycle stages. In
terms of number of employees, 30% of the sampled banks had less than 4,000 employees
and another 30% had more than 10,000 employees. In terms of outsourcing, 90% of
sampled population practiced outsourcing, with 50% of sampled population outsourcing
between 31% and 50% of its total staff roles, which were usually back office related
roles. Twenty percent of the sampled population outsources 61% to 70% of its total staff
roles. Employee learning for permanent employees could be high skill competencies
relevant to banking and soft skills training to feed cultural values and customer service
focus of the respective bank.
Gupta and Govindarajan (2004) explained that as we witness growing economic
interdependence among countries, several levels of aggregation of the organization would
tend to result in the following areas: (a) market presence, (b) supply chain, (c) capital
base, and (d) corporate mindset or human capital. Globalization of the workforce brings
new organizational challenges such as attraction, and deployment of employees,
knowledge and innovation dissemination, and identifying and developing talents (Robert,
Kossek, & Ozeki, 1998). An implication of these situations for a bank that either operates
or aspires to operate in the post-consolidation era is the need for high specialist technical

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and soft skills in permanent employees. For reasons of efficiency, employee learning and
development function should be a shared responsibility as indicated in Figures 17 and 24.
Observed employee learning and development strategies in Figures 18 and 25
were varied and included formal training, job rotation, job enrichment, coaching and on
the job training, and e-learning. Knowles (1970) Theory of Andragogy (adult learning
theory) and the Speck (1996) position on adult learning and preferred strategies, as
indicated for EPM as contextual conditions, are applicable to employee learning and
development as strategies. The results of the study supported this, as the core values and
concepts that are foundational to the seven Baldrige criteria include visionary leadership,
customer-driven excellence, valuing employees and partners, management by fact, and a
focus on results while creating value. As such, applicable employee learning and
development strategies should be holistic with a structured curriculum and should be
based on effective competency mapping by role and grade that includes (a) coaching, (b)
self-learning via e-learning platforms, (c) classroom training, (d) on-the-job training, (e)
job rotation, and (f) experiential assignments. Presentations in Figure 25 further clarify
the interventions.
Consequences or outcomes of employee learning and development within
population sample as seen in Figures 19 and 20 were (a) closure of employee and (b)
organizational learning gaps. Employee learning and development could facilitate
effective determination of employee developmental needs from a performance
management feedback, even as one of the main objectives of performance management is
to obtain feedback for employee development and performance enhancement. According
to Armstrong (cited by Alo, 1999), the objectives for training employees are (a) to

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shorten learning curve for new employees, (b) to improve performance of existing
employees, and (c) to enable employees to acquire competencies needed in the near
future. Three broad objectives of employee development are (a) to improve employee
performance, (b) to identify future leaders and provide required support to enable them
realize their optimal potentials as well as prepare them for higher challenges, and (c) to
provide smooth management succession within the organization (Alo). In view of these
expectations, outcomes of employee learning and development should be (a) performance
planning and (b) performance consequences management.
RQ3 asked, is there an interface between the existing EPM system and employee
learning and development practice? If yes, what is the effect of the EPM system on the
employee learning and development practice? Findings in terms of linkage between EPM
and employee learning and development within the sampled population as reflected in
Figures 21, 22 and 23 indicated an associated relationship. Themes and patterns of the
effects of EPM on employee learning and development also emerged as (a) assessment of
employee leadership capabilities or potential, (b) derivation of role competencies
required, and (c) derivation of learning and development gaps from employee
performance feedback. The data tend to support the view that the combination of EPM
and employee learning and development in the human resource management function
should enhance an organizations capacity to translate strategy into results (Price, 2004).
Selective coding of EPM and employee learning and development as presented in
Figures 24 and 25 indicated that both processes share common causal conditions in a fastgrowing and dynamic but intensely regulated business environment such as the Nigerian
banking industry. EPM and employee learning and development also share the same

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contextual conditions with an almost similar set of intervening conditions, except for the
distinct roles of the internal audit in EPM and the training institution in employee
learning and development. This conclusion aligns with the Price (2004) indication that
the human resource development concept is widely viewed as a strategic aspect of the
human resource management system, with EPM and employee learning and development
as two subsets. Strategies in the two processes as shown in Figures 24 and 25 are
mutually exclusive as shown in Figure 26. The associated relationship observed between
EPM and employee learning and development is further displayed in how the outcomes
of the two processed tend to support each other as shown in Figure 27.
According to Creswell (2002), A systematic design in grounded theory
emphasizes the use of data analysis steps of open, axial, and selective coding and
development of a logic paradigm or a visual picture of the theory generated (p. 441).
Although no new theory has emerged from the study as earlier intended, the findings
have shown that current practices within the Nigerian banking industry indicate varying
degrees of implementation of existing theories in both the EPM and employee learning
and development practices. So, since the findings clearly show different stages of
implementation of these theories, thus giving indications of findings that are more a
representative of a phenomenological studys findings than a grounded theory study,
there is perhaps an optimum model that could integrate these existing theories in EPM
and employee learning and development to produce an optimum model or paradigm.
The Integrated EPM model as presented in Figure 29 below therefore, recognizes
the mutually exclusive nature of EPM and employee learning and development strategies.
For instance, employee learning and development interventions could leverage on

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propositions of the adult learning theory with extensions by Speck. Optimal EPM could
leverage on the systems theory, the Khun concept, adult learning theory, the Speck
concept and the seven criteria of Malcolm Baldrige model in deriving a more integrated
EPM practice. The integration of the EPM process could enhance the positive effects of
EPM on employee learning and development for competitive competition of banks with
the Nigerian banking industry, as a developing financial services industry. The model as
presented in Figure 29 identified the apparent shortcomings of the current concept
observed in Figure 28 to create a structure and integration of various theories and models
that could enhance positive effects of EPM on employee learning and development
within the fast growing Nigerian banking industry.

Causal conditions

Employee performance assessment

Performance planning
Employee learning & development

Enhancing Stakeholder value

Consequence management

Contextual Conditions

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Figure 29. The Integrated EPM Model.

In view of this, the Integrated EPM Concept recommends that actual
implementation of EPM and employee learning and development should reside in
mutually exclusive functional roles as seen in Figure 26, but with both roles being all
embracing and affiliated to the human resources management function as recommended
by Price (2004). The integrated EPM model recommends that both processes be shared
responsibilities across various stakeholder roles as identified in intervening conditions in
Figures 11, 17, 20, 24 and 25.
In view of the common causal and contextual conditions as seen in Figures 9, 14,
15 and 20, the human resources function should maintain custody of the policy
formulation and facilitation roles as aspects of the strategic human resource development
reasons. The integrated EPM concept also recommends that the human resource
management function should not have implementation responsibility for either the EPM
or the employee learning and development practices. With regard to the associated
relationship between outcomes of EPM and employee learning and development
processes as seen in Figures 21, 22 and 23 that also have an iterative relationship with
causal conditions as seen in Figure 27, the human resources development function should
only play a facilitation role.
The Integrated EPM Model recognizes that human resources management is the
functional role accountable for obtaining and maintaining qualified employees, but
organizations have changed in the past few decades. Technology, new work

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arrangements, outsourcing, and rapid growth are redefining the scope of the human
resources management function. The combination of human resources professionalism
and business orientation, the trend towards globalization, more mergers and acquisitions,
recognized importance of employees in achievement of strategic objectives, more
knowledgeable employees, whistle blowing and diversity issues, and the need for faster
decision making processes tend to challenge existing human resources management
paradigms (McConnell, 2001).
Previous researchers like David McCallum (as cited in Wren, 1994), Frederick
Taylor (as cited in Stoner, 1995), the Hawthorne Studies (as cited in Wren), Elton Mayo
(as cited in Wren), and Gilbreth (as cited in Chyung, 2005), have recognized performance
management as a source of leadership concern in organizations. Romanoff (1989)
recommended how to evaluate employees. Mailliard (1997) identified the need to relate
EPM to the bottom line. Gliddon (2004) drew attention to concepts and authors in
opposition to the concept of employee performance evaluation. In a similar perspective,
Pitskurich (2006) identified improper goal alignment as a major factor capable of
rendering an otherwise robust performance management system ineffective. The General
Systems Theory (1956) called for a systemic view to issues, while extensions to recent
perspectives by Khun (1974) showed how regulation seeks to influence equilibrium. The
Adult Learning Theory (1970), with recent extension by Speck (1996), indicated the need
to engage the adult learner in conceptualization and delivery of learning interventions.
However, study findings indicate that some of the concerns with existing employee
learning and development practices entails non involvement of employee is planning
learning and development interventions. Stiffler (2006) emphasized the importance of an

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alignment between the objectives of the business, the units and individuals, and the
integration of functional roles with performance indices, which tends to align with the
seven criteria of the Baldrige Model for Performance Excellence (2007) and propositions
by Grosse (2000). The Baldrige Model for Performance Excellence (2007) brought a
systemic dimension to performance excellence.
The components of the Integrated EPM Model are; (a) causal conditions, (b)
contextual conditions, (c) performance planning, (d) performance assessment, (e)
consequence management, (f) enhancing stakeholder value, and (g) employee learning
and development. The model adds alignment of causal and contextual conditions, and the
associated relationship of the outcomes of EPM and employee learning and development,
to propose an iterative process for the effects of EPM on employee learning and
development. Causal conditions in the integrated EPM model are corporate-bearing
factors, which include internal factors, such as strategy and budget, and external factors,
which include stage of growth of industry, competition, and regulation. Contextual
conditions include job role specification and expectations, employee personal and career
aspirations, and organizational competence requirements.
Psychometric assessment tools and job evaluation processes could support a
dispassionate process of defining roles and determining competency ratings. Performance
planning may entail cascading corporate qualitative, quantitative, and competitive
objectives from corporate strategy and budget to departments, units, and individual roles
across the bank. Organizations may explore performance assessment tools that link
strategy to performance with a holistic view of the organization. Performance assessment
on a real-time Online basis, using performance measurement and reporting platforms may

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be explored, while strategies such as assessment centers may be investigated for

millstone leadership assessments to specific cadres or roles. Consequence management
will include specific actions based on commendable and unacceptable levels of
performance, and may include actions such as job rotation, job enrichment, coaching,
counseling, and recognition.
Enhancing stakeholder value will entail linking performance management
practices in pursuit of stakeholder variables on the organizational level to include
customer engagement, employee engagement, shareholder engagement, and corporate
social responsibility. Employee learning and development includes learning interventions
aimed at optimizing performance levels in staff, addressing performance gaps as
identified in consequence management, enhancing understanding and acceptance of the
EPM policy across all stakeholders, and facilitating performance planning.
Implications and Recommendations
A major implication of the study findings is that no new theory was proposed, as
earlier intended. The results from data analysis are more representative of a
phenomenological studys findings than a grounded theory finding. Thus the
recommendations are as applicable to such data, though within the perspective of a
grounded theory study, as recommendations appear grounded in existing germinal and
modern theories, concepts and primary data as presented in chapter 4. The study offers
insights and data for further research in search of a new theory. The study findings tend
to show that the banks in the Nigerian banking industry have differing programs for the
implementation of various existing theories, and perhaps a model that fully integrates a

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number of these theories is the most desirable at this stage of development of the
industry, given projections for its future and recent confirmations of earlier predictions.
The EIU (2007) reported that the period growth of the global financial services
industry witnessed from 2002 to 2007 would start declining in 2008. However, financial
service organizations in emerging economies will be isolated from the developments in
the American and European markets, and will make rapid strides in 2008 (EIU, 2007).
The history of modern banking in Nigeria is traceable to 1892. A high-level review of the
industrys history from inception in 1892 to 2007, indicated eight eras: (a) monopoly of
foreign banks era, (b) indigenous attempt at modern banking era, (c) regional
governments incursion era, (d) post-independence era, (e) federal government dominance
era, (f) state government ownership era, (g) private ownership era, and (h) consolidation
era. The consolidation era, from 2006 to date, is a sub-set of a broad strategy termed
FSS2020, a program expected to reposition the Nigerian financial services sector and,
invariably, the banking industry.
The CBN leadership has indicated that for Nigeria to achieve the Goldman Sachs
2001 projection and the countrys objective of being part of being one of the 20 largest
economies by 2020, Nigeria must have an annual average growth of 12.4% over the next
15 years. Nigeria will need a robust, vibrant, and integrated financial system that will
power new economy in order to achieve the Goldman Sachs prediction for the N11s, as
underpinned in the logic that birthed the FSS2020 Project. The consolidation era and
related developments continue to impact the competitive landscape within the industry in
terms of nature of ownership structure, product and service offerings, market locations,
banking service channels, service standards, transaction volume, and war for prime talent.

164

More so, the Nigerian banking industry, a fast growing industry is becoming very
attractive to foreign financial institutions. The industry has seen entrants though equity
participation in existing Nigerian banks, as well as various forms of alliances and
partnerships, but low rates of new entry into the various sub sectors of the Nigerian
financial industry.
Implications of implementing the integrated EPM model for the human resource
management practices within the Nigerian banking industry are (a) the need for the
human resources management function to rethink the extent of its involvement in EPM
and employee learning and development functions; (b) expanded responsibilities for the
EPM and employee learning and development processes, which may tend to demand
more involvement of the line function, the employee, corporate audit and third party
independent training institutions as applicable; (c) the need for the human resource
management function to demonstrate deeper appreciation of corporate bearing and relate
such to stakeholder value definitions in pursuit of the outcomes of EPM and employee
learning and development; (d) the need for banks to optimize opportunities for
automation of the EPM and employee learning and development processes; (e) likely
implications of the recommendations of the theory for enhancing high performance work
cultures; (f) likely higher employee involvement in performance planning and self
learning; and (g) likely change management implication for effective deployment of
information communication technologies. The overriding implication for human resource
management is a likely adjustment in paradigm about the human resource functions role
as depicted in Figure 30.

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Employee
values, goals
and aspirations
(a)

Area of optimal
performance and
learning
(c)

Banks
values, goals
and
aspirations

Figure 30. Implications of the Integrated EPM Model to the HR practice.

Each employee has the area a represented by personal values, goals and
aspirations, and every bank or organization has the area b represented by corporate
values, goals, and aspirations. Banks or organizations could, (through recruitment, EPM,
and related policies), enhance their chances of finding and retaining employees whose

166

personal and professional values and aspirations align with those of the bank or
organization. These are contextual inputs to EPM, especially performance planning as
well as employee learning and development, because such alignment could employee
engagement, a key requirement for adult learning as indicated in both the adult learning
theory and the Speck concept earlier discussed.
The bank or organization then provides the work environment, policies and
platforms, or intervening and contextual conditions that enhance this congruence, which
invariably produces the area of performance and learning as represented by area c in
Figure 30. The implication of the proposed concept for the human resources function is
that the core function of human resources will now need to focus primarily, on expanding
the area represented by area c in Figure 30. Therefore, policies, processes, procedures,
and platforms related to human resources will concentrate on this direction. The
performance objectives, performance measures, and improvement opportunities of the
human resources function should also focused in this area.
Recommendations for Improved EPM Practice
Recommendations for improved EPM practice include (a) taking a systemic view
to industry and organization, (b) integrating strategy and role with qualitative and
quantitative performance indices, (c) incorporation of a corrective action or an iterative
process, (d) stakeholder engagement, (e) taking a transformational leadership perspective,
(f) applicable deployment of technology, (g) derivation of effective performance
matrices, and (h) proactive feedback and collaboration.
Taking a systemic view of the organization will entail deriving employee performance
measurement matrices within the context of the organizations broad direction. 70% of

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the sampled population indicated satisfaction with current practice with concerns on
issues ranging from subjectivity in assessment of staff in support functions and
application of effective matrices. Factors for consideration may include corporate vision,
mission, core values, and strategic objectives. A systemic view of the organization also
requires considerations for external and internal dynamics, including the business
environment, degree of dynamism and competition, target and existing customer
expectations, and strategic and operational or tactical processes of the respective
functional parts of the organization. The systemic view of organizations aligns with
propositions of the General Systems Theory (1956) and extensions by Khun (1974).
Integrating strategy and functional roles with qualitative and quantitative performance
indices requires establishing strategic objectives in a more holistic manner to entail
setting quantitative, qualitative, and competitive objectives for the short, medium, and
long term. Respective functional roles should then dimension roles within the
organization to derive individual employee roles with applicable proportions of the broad
corporate strategic objectives. Integration of strategy with functional roles and
application of improved matrices should lead to cascading of corporate quantitative,
qualitative, and competitive objectives into group and individual roles across the
organization, thereby addressing most of the concerns expressed by the 70% of the
sampled population.
Incorporation of a corrective action or an iterative process into the EPM process
creates opportunities for learning from current performance outcomes and for planning
improved performance for the next cycle. The associated relationship between EPM and
employee learning and development as described in Figure 27 is applicable in this

168

recommendation, as the corrective action is in line with the concept of Adult Learning
Theory (1970) with extensions by Speck (1996). The iterative process should also
enhance the various employee performance improvement initiatives as observed in 80%
of the sampled population, whilst also addressing the concerns expressed about nonparticipation of staff in designing learning and development interventions, and learning
interventions not being timely. Stakeholder engagement, in terms of communicating key
characteristics of EPM policy, performance planning, using performance measurement
tools, providing performance feedback, designing learning interventions to close
identified performance gaps, justifying rewards, and implementing consequence actions
as outcomes of the EPM process require end-to-end stakeholder engagement. This is
particularly true because transparency is a critical success factor for effective EPM. In
view of apparent display of enhanced emotions on the subject of EPM, human resource
practitioners and organizations should also perceive it as it is also an area that could
degenerate into legal suits.
Taking a transformational leadership perspective to EPM entails soliciting and
facilitating performance improvement and change by influence and motivation rather
than coercion. Effective EPM will require knowledgeable leadership that can clearly set
broad directions, explain, and clarify vision, mission, and performance objectives in a
way that motivates passionate pursuit of established goals. The focus is on performance
improvement, change management and engagement of the leader and the led. The need
for a transformational leadership perspective is in terms of shared responsibility for the
EPM and employee learning and development practices as observed in the common
intervening conditions observed in Figures 24, 25 and 28.

169

Applicable deployment of technology minimizes human interference in the

process from performance planning to performance measurement and implementation of
iterative processes. The integration of technology into EPM facilitates real-time
performance measurement, rather than historic review of past performance. Technology
also enables derivation of applicable matrices and effective cascading of corporate goals
to group and individual and vice versa. Only 60% of the sampled population use
automated EPM processes and 70% of the sampled population did not have a competency
mapping software, even as employee learning and development processes are largely
manual.
Derivation of effective performance matrices can use appropriate performance
measures for both core and support functions in a way that recognizes all perspectives of
performances such as financial and non-financial measures. Findings from the study
showed that that 70% of sampled population indicated challenges with derivation of
applicable matrices in support roles as an issue. Earlier studies on EPM in Nigerian
banks, including research by Akinniyi (2002), indicated focus on profits and deposit
volumes as performance indicators, to the detriment of other performance variables. As
such, deriving matrices with alignment to quantitative, qualitative, and competitive
objectives cascaded for strategy should improve the existing matrices.
Proactively dealing with employee performance feedback and collaborating with
the employee and supervisor to derive performance plans aligns with suggestions by
Speck (1996) in conceptualizing and delivering adult learning. This recommendation also
seems to compliment propositions of transformational leadership and the concept of the
Baldrige Model for Performance Excellence. Collaborating with the employee tends to

170

align with implications of the new integrated EPM model as suggested in Figure 29, as an
enabler of performance and learning, in section c of Figure 30. It is worth noting that
30% of the sampled population indicated that learning and development interventions are
often not timely in addressing identified learning and development gaps, whilst 20% of
the sampled population indicated non-involvement of employees in planning learning and
development interventions as an aspect of performance improvement initiative.
Recommendations for Further Research
The study did not generate a new theory, but proposed an Integrated EPM model
to enhance effects of the EPM process on employee learning and development within the
Nigerian banking industry. The integrated model proposed, leveraged the General
Systems Theory (1956) and Adult Learning Theory (1970), with extensions to recent
perspectives of the general systems theory by Khun (1974) and recent extensions of the
adult learning theory by Speck (1996), respectively. The study incorporated germinal
theories and recent extensions into a more recent concept, the Baldrige Model for
Performance Excellence (2007). A recent study on the industry and sampled populations,
the Ekpe (2005) study was also critical to the study, because the Ekpe reviewed aspects
of the human resource function in the Nigerian banking industry involving recruitment,
induction, training and development, appraisal, and remuneration relative to overall bank
performance.
The Ekpe (2005) did not investigate the details of the EPM process. Rather, the
author concluded that appraisals should clarify employees job objectives, objectively
assess performance, and provide developmental feedback and training needs in order to
improve employee performance. This study explored the themes and patterns of practices

171

of EPM within the Nigerian banking industry and the effects of EPM on employee
learning and development. The objective of the study was to develop a new theory from
the observed themes and patterns in order to enhance a deeper understanding of the
process of EPM. Nevertheless, study findings did not achieve the saturation required to
generate a theory but instead, proposed an integrated EPM model to enhance the effects
of the EPM process on employee learning and development within the context of
common causal conditions and context, mutually exclusive strategies, and associated
outcomes or consequences. The observed effects of EPM on employee learning and
development include provision of the corporate bearing, stakeholder values, and
performance gaps that various learning and development interventions seek to address in
order to meet consequence management, performance planning, and performance
assessment needs of the organization and employees.
In view of (a) recent studies within the Nigerian banking industry, (b) the findings
of this study, (c) implications of the proposed integrated EPM model (d) growth
projections of the sub-Saharan region, (e) projections for Nigeria as an N11 country by
Goldman Sachs, this study has generated some recommendations for further research. For
instance, because the timing of this study was early in the consolidation era of the
consolidation phase and more than 50% of the banks could not participate; one
recommendation is to repeat the study within the next two to three years. This should
help show the trend and implications of the on-going consolidation on EPM and
employee learning and development practices. Because this study did not investigate the
specific EPM platforms and tools in practice within the Nigerian banking industry,
further research may include investigating EPM platforms and tools in practice within the

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perspective of employee feelings about the process. This study focused on the Nigerian
banking industry as a developing country; as such, the results is not applicable other
developing countries until the study is repeated in other developing countries in West,
North, East, and South Africa. Most importantly, because the study did not generate a
new theory of employee performance management as earlier intended but proposed an
integrated model to enhance effects of EPM on employee learning and development
within the Nigerian banking industry, further exploration of this topic could help enhance
the saturation required to generate a new theory of employee performance management.
Summary
The importance of people as necessary contributors to the accomplishment of
organizational objectives appears to have remained critical throughout management
history. As general management and organizational leadership seem to be drawing
attention to human resource management practice and organizational behavior, there has
been a renewed emphasis on the human resource management function within
organizations from the early 1890s through to the 21st century. Gliddon (2004)
concluded, Given the current challenges of the economic climate and high rates of
unemployment, performance management and employee evaluation is likely to remain a
hot topic (p. 32).
The study investigated themes and patterns of EPM and employee learning and
development practice within the Nigerian banking industry, with an aspiration to generate
a new theory on employee performance management, but due to sub-optimal saturation
of findings, proposed an integrated EPM model to enhance the effects of EPM on
employee learning and development within the research population. The study was a

173

grounded theory research design based on a systematic approach, using CAQDAS

program NVivo7. The findings indicated associated relations between EPM and
employee learning and development in terms of causal conditions and consequences on
one hand and contextual and intervening conditions on the other hand. Although
strategies are mutually exclusive and outcomes have associated relationship, broadly
speaking, the findings pose a major challenge to existing likely human resources
management and human resources development paradigms and raise further questions
necessitating saturation of the findings to substantiate a new theory. In summary, the
findings were not as anticipated but, nonetheless, significant.

174

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186

APPENDIX A: INFORMED CONSENT-PERMISION TO USE PREMISES

August 31, 2006
The Managing Director/CEO
XYZ Bank Plc
ABC Town, Nigeria
Dear
Informed Consent: Permission To Use Premises
I am a student of University of Phoenix, Arizona United States of America
undergoing a Doctor of Business Administration (DBA) program. I will be conducting a
research study entitled Effects of employee performance management system on employee
learning and development within banks in Nigeria. The purpose of the research project is
to systematically explore the phenomenon employee performance management within a
total population of 25 banks in Nigeria, in order to systematically derive a theory leading
to a deeper understanding of the phenomenon for competitive advantage of banks in
developing countries.
This letter is a request for your consent enabling your banks participation in the
study. The banks participation will involve two series of one-on-one interviews first with
your Head of Human Resource Management (HRM) lasting about an hour and will
require provision of basic information regarding your banks employee performance
management process. I will transcribe responses obtained from the first interview, and
then review these with you in the second one-on-one interview expected to last not more
than thirty minutes, thereby concluding the data collection process. Your banks
participation is voluntary, and if you choose not to participate, or to withdraw from the
study at any time, you can do so without penalty or loss of benefit to your organization.

187

The results of the study may be published, but your banks name or that of any
participating employee (s) will not be used and your results will be maintained in
confidence. There are no foreseeable risks to any of your nominated staff, you or your
organization in this research.
Although there may be no direct benefit to your bank other than access to the
executive summary of the findings of the research, the possible benefit of your
participation in this research is that the findings of this study will provide valuable
feedback to human resource management practitioners on effective strategies for
enhancing high performance in the work place while attracting, developing, and retaining
highly skilled and performing employees. The findings may also influence policy
formation and strategy for Employee Performance Management in global banks with
interests in developing countries, indigenous banks in developing countries, Institutions
of learning with interests in designing Employee Performance Management Systems, and
consulting firms.
If you need further clarification on this study, please call me on 08023060969. As
an indication of your consent to having your bank participate in this study, kindly endorse
the section below and return a copy of the letter to me at the address:
Lucy Surhyel Newman
14B Hannat Balogun Close
Dolphin Estate Extension (Behind Federal Secretariat)
Ikoyi. Lagos.

188

Sincerely,

Lucy Surhyel Newman

Consent:
I hereby authorize Lucy Surhyel Newman, student of the University of Phoenix,
Arizona, United States Of America to use the facilities requested to conduct a study
entitled Effects of Employee Performance Management Systems on Employee Learning
and Development within banks in Nigeria.

--------------------------------------Name

-----------------------------------------Title

------------------------------------------Name of Organization

----------------------------------------Signature

189

APPENDIX B: INFORMED CONSENT-PARTICIPANTS ABOVE 18

August 31, 2006

Mr/Mrs/Ms. .
XYZ Bank Plc
ABC Town, Nigeria
Dear

Mr/Mrs/Ms. .
I am a student at the University of Phoenix working on a Doctorate in Business

Administration program. I am conducting a research study entitled Effects of employee

performance management system on employee learning and development within banks in
Nigeria. The purpose of the research project is to systematically explore the phenomenon
employee performance management within a total population of 25 banks in Nigeria, in
order to systematically derive a theory leading to a deeper understanding of the
phenomenon for competitive advantage of banks in developing countries.
Your participation in the proposed study will involve (a) providing information on
the profile of your bank and (b) granting an interview lasting not more than two hours
that will entail responding to some open ended questions regarding your banks employee
performance management and employee learning and development practices. Your
participation in this study is voluntary. If you choose not to participate or to withdraw
from the study at any time, you can do so without penalty or loss of benefit to yourself.
The results of the research study may be published but your name will not be used and
your results will be maintained in confidence.

190

There are no foreseeable risks or benefits to you as an individual in the proposed

study. The possible benefit of your participation in this research is that the findings of this
study will provide valuable feedback to human resource management practitioners on
effective strategies for enhancing high performance in the work place. The findings may
also influence policy formation and strategy for Employee Performance Management in
global banks with interests in developing countries, indigenous banks in developing
countries, Institutions of learning with interests in designing Employee Performance
Management Systems, and consulting firms.
If you need further clarification on the proposed study, please call me on
08023060969. As an indication of your consent to participating, kindly endorse the
section below and confirm a suitable appointment date for the interview.
Sincerely,

Lucy Surhyel Newman

Consent:
By signing this form I acknowledge that I understand the nature of the study, the
potential risks to me as a participant, and the means by which my identity will be kept
confidential. My signature on this form also indicates that I am 18 years old or older and
that I give my permission to voluntarily serve as a participant in the study described.

Mr/Mrs/Ms..

191

APPENDIX C: SURVEY INSTRUMENT - INTERVIEW QUESTIONS

1. The Bank - Broad Profile

How old is the bank?

Did the existing bank merge or acquire other bank(s) during the industry
wide consolidation of 2005/2006?

If yes, how many other banks or organizations joined the group that now
exists?

How many people are currently employed by the bank?

Out of the people employed by the bank, how many are outsourced or
contract employees?

What proportion of total employees of the bank are in support and client
facing functions respectively?

What services does the bank offer? Mortgage? Investment services? Credit
or debit cards? Checking? Savings? Commercial? ATMs?

How many physical locations? How many non physical locations? In what
form?

Online banking services? On which products and services?

Days and hours of operation?

2. Employee Performance Management

Description

What is the banks definition of employee performance management?

192

Does the bank have an employee performance management policy? If yes,

what are the features of the employee performance management policy?

How does the bank create awareness of the employee performance

management policy amongst the bank employees?

What categories of banks employees are assessed by the provisions of the

existing employee performance management practice?

Which department, division, or group in the bank has the primary

responsibility for bank wide employee performance management?

Causality

How did the existing employee performance management practice

emerge? Is the existing performance management practice an entirely new
framework or was it practiced by any of the merging partner bank(s)? If
yes, is this the exact replica of the former or an adaptation?

Did the bank benchmark any organization to derive the existing employee
performance management practice? If yes, which organizations did the
bank benchmark and why? What developments can trigger a review of the
banks existing employee performance management policy and practice?

History

Is the bank pleased with the current employee performance management

practice?

How have the employees reacted to the existing employee performance

management practice?

193

How does the bank obtain feedback about how employees feel about the
employee performance management practice?

The Employee Performance Management Process

Does the existing process entail the use of computer software? If yes, what
is the performance evaluation software in use? Was it developed in house
or purchased off the shelf? When was it developed or acquired? Has there
been a change of software or is there a plan for a change in the near
future?

Does the process of using IT entail a system driven way of getting

information on employee performance on an on-going basis?

How often does the bank establish employee performance criteria or

objectives? How is the process initiated?

How are the employees and direct supervisors involved in setting

employee performance criteria and objectives?

Is the performance evaluation feedback of a preceding period

communicated to the employee before setting the performance criteria and
objectives of a subsequent performance evaluation period?

What are the current performance criteria or objectives derived from?

How are they linked to the overall corporate strategy and budget?

How often does the bank conduct employee performance evaluation?

What determines frequency of employee performance evaluation?

What are the processes entailed?

194

Are there levels of auditing such performance feedback? Who are those
involved in the auditing process?

Who administers the audit process?

3. Employee Learning and Development

Description

What is the banks definition of employee learning and development?

Does the bank have an employee learning and development policy? If yes,
what are the features of the employee learning and development policy?

How does the bank create awareness of the employee learning and
development management policy within the bank?

Which department, division, or group in the bank has responsibility for

employee learning and development?

Causality

How did the existing employee learning and development practice

emerge? Did the bank benchmark any organization in deriving the existing
practice? If yes, what informed the choice these benchmarks? When was
the last time the bank did this?

What development can trigger a review of the banks existing employee

learning and development policy and practice?

History

Is the existing employee learning and development practice an entirely

new framework or was it practiced by any of the merging partner bank(s)?
If yes, is this the exact replica of the former or an adaptation?

195

Is the bank pleased with the system? How have the employees reacted to
the system? How does the bank obtain feedback about how employees feel
about the employee learning and development practice?

Does the bank conduct employee surveys to find out employee concerns
about the employee learning and development practice? If yes, how often
and when was the last time the bank conducted such a survey? If no, is the
bank planning to conduct a survey within the next 6 months?

The Employee Learning and Development Process

Does the existing process entail the use of computer software? If yes, what
employee learning and development software does the bank use? Was it
developed in house or purchased off the shelf? When was it developed or
acquired?

Has there been a change of software or is there a plan for a change in the
near future? Does the process of using IT entail a system driven way of
getting information on employee learning and development on an ongoing basis?

How often does the bank assess employee training needs? How is the
process initiated? Who are those with responsibility of conducting the
training needs assessment?

How are the employees and direct supervisors involved in the training
needs assessment process?

Is the outcome of the training needs assessment communicated to the

employee before deployment of identified training programs?

196

What are the current employee training needs indexed to? How are the
training needs designed to accommodate emerging market situations and
overall corporate strategy?

How is the training need assessment process audited, and who are those
involved in the auditing process?

4. Link between employee performance management and employee learning

and development

What career decisions are derived from the outcomes of the employee
performance feedback process?

What role does employee learning and development play in the employee
performance management process?

What aspect of the employee performance evaluation process assesses the

employees leadership abilities and or potentials?

What weight or percentage does leadership abilities or potentials carry

relative to overall assessment of the bank employee?

Does the employee performance evaluation system entail a form of

competitive assessment amongst peer groups across the bank? How does
the process of peer evaluation work?

What is the level of employee performance assessment feedback result

that the bank defines as unacceptable levels of performance? How are
these determined?

Where such applies, how are the least performing employees informed of
their dismal performance?

197

What is the treatment given to employees with unacceptable levels of

performance, and how does the bank communicate such outcomes to the
affected employees and their supervisors?

What is the percentage of employees that leave the organization annually

on grounds of poor performance? How is it implemented and monitored
over time?

How is employee performance feedback rating linked to employee

rewards and other benefits?

How has the bank benefited from the current employee performance
management and employee learning and development practice? Are there
areas of concern? If yes, what are these areas of concern? If no, why do
you think so?

How do the bank employees benefit from the current employee

performance management and employee learning and development
practice? Are there areas of concern? If yes, what are these areas of
concern? If no, why do you think so?

198

APPENDIX D: LIST OF DEVELOPING COUNTRIES

Table 1
Developing Countries of Africa, Middle East, and Asia
Africa North
of Sahara

Sub Saharan Africa

Asia

Middle East

Algeria

Angola

Afghanistan

Bahrain

Egypt

Benin, Botswana

Bangladesh

Iran, Iraq, Jordan

Morocco

Burkina Faso

Bhutan, Burma

Lebanon, Oman

Tunisia

Burundi, Cameroon

Cambodia

Cape Verde

China, (excl.
H.K.)

Territories
Administered by the
Palestinian
Authority, Saudi
Arabia

Central African Rep

East Timor,
Chad, Comoros, Congo, Rep.
India
Congo, Dem. Rep.
Indonesia,
Cote dIvoire, Djibouti
Kazakhstan
Equatorial Guinea
Korea, Dem.
Eritrea, Ethiopia
Rep.
Gabon, Gambia, Ghana,
Guinea, Guinea-Bissau,
Kenya, Lesotho
Liberia, Madagascar
Malawi, Mali, Mauritania
Mauritius, Mayotte,
Mozambique
Namibia, Niger, Nigeria
Rwanda, St. Helena
Sao tome & Principe
Senegal, Seychelles
Sierra Leone, Somalia
South Africa, Sudan,
Swaziland, Tanzania, Togo,
Uganda, Zambia, Zimbabwe

Kyrgyz Rep.,
Laos
Malaysia,
Maldives
Mongolia,
Nepal
Pakistan,
Philippines
Sri Lanka,
Tajikistan
Thailand,
Turkmenistan
Uzbekistan,
Vietnam

Syria, Yemen

199

Table 2
Developing Countries of Europe, America, and the Pacific
Europe

North & Central

America

South America

The Pacific

Albania

Anguilla

Argentina

Cook Islands

Armenia

Antigua & Barbuda

Bolivia

Micronesia,

Azerbaijan

Barbados, Belize

Brazil

Federated States

Bosnia and
Herzegovina

Costa Rica

Chile

Fiji

Cuba

Colombia

Kiribati

Croatia

Dominica

Ecuador

Marshall Islands

Georgia

Dominican Rep.

GPPyana

Nauru

Macedonia
(former
Yugoslav Rep.

El Salvador

Paraguay

Niue

Grenada

Peru

Palau Islands

Moldova

Guatemala

Suriname

Papua New Guinea

Turkey

Haiti

Uruguay

Samoa

Yugoslavia, Fed.
Rep.

Honduras

Venezuela

Solomon Is.

Jamaica

Tokelau

Mexico

Tonga

Montserrat

Tuvalu

Nicaragua

Vanuatu

Panama

Wallis & Futuna

St. Kitts and Nevis

St. Lucia
St. Vincent &
Grenadines
Trinidad and Tobago
Turks & Caicos Island

200

APPENDIX E: THE EIGHT ERAS OF BANKING IN NIGERIA

Table 3
The First Two Eras of the Nigerian Banking Industry
Eras
Monopoly of
foreign banks
(1894-1930)

Indigenous attempt
at modern banking
(1929-1959)

Name of bank
Bank of British West
Africa (BBWA) now First
Bank of Nigeria Plc

Year of
establishment

Present status

1894

Existing to
consolidation era

Barclays Bank now Union 1917

Bank Of Nigeria Plc

Existing to
consolidation era

The Industrial &

Commercial Bank

1929

1930

The Nigerian Mercantile

Bank

1931

1936

The National Bank of

Nigeria

1933

2005

Agbonmagbe Bank
(Now Wema Bank)

1945

Existing to
consolidation era

African Continental Bank

1947

2005

The Nigerian Farmers &

Community Bank

1947

1953

PAN Nigerian Bank

1951

1954

Standard Bank of Nigeria

1951

1954

Premier Bank

1951

1954

Nigerian Trust Bank

1951

1954

Afro Seas Credit Bank

1951

1954

Onward Bank of Nigeria

1951

1954

201

Table 3 (Continued)
Central Bank of
Nigeria*- Not the
present CBN

1951

1960

Merchant Bank

1952

1954

Metropolitan Bank of
Nigeria

1952

1954

Provincial Bank of
Nigeria

1952

1954

Union Bank of British

Africa

1952

1954

United Commercial
Credit

1952

1954

Cosmopolitan Credit
Bank

1952

1954

Mainland Bank

1952

1954

Group Credit & Agric

Bank

1952

1954

Industrial Bank

1952

1954

Muslim Bank (West

Africa)

1952

Not available

West African Bank

1958

1954

Bank of Lagos

1952

1968

Bank if the North

1959

2005

202

Table 4
The Third and Fourth Eras of the Nigerian Banking Industry
Era
Post-Independence
Era (1960-1972)

Name of bank

Year of
establishment

Present status

Local Banks:

Co-operative Bank
of Western Nigeria

1961

Later became Cooperative Bank

Limited

Co-operative Bank
of Eastern Nigeria

1961

Later became Cooperative &

Commerce Bank
Ltd.

Mercantile Bank of
Nigeria Ltd.

1971

Later became
Mercantile Bank of
Nigeria Plc

New Nigeria Bank

Ltd.

1971

Later became
Nigeria Bank Ltd.

Pan African Bank

Ltd.

1971

Later became Pan

African Bank Ltd.

North Central Cooperative Bank Ltd.

1972

Later became
Nigeria Universal
Bank Ltd.

Kano Co-operative
Bank Ltd.

1975

Later became
Tropical
Commercial Bank
Ltd.

203

Table 4 (Continued)
Foreign Banks:
Bank of America
(Nig.) Ltd.

1960

Later became
Savannah Bank of
Nigeria Plc

Nigerian
Acceptances

1960

Later became NAL

Merchant Bank
Ltd.

The First National

Bank of Chicago
(Nig) Ltd.

1960

Later became
International
Merchant Bank
(Nig) Ltd.

United Bank for

Africa Plc

1961

Still known as
United Bank for
Africa Plc

Arab Bank (Nig)

Ltd.

1962

Later became
Nigeria-Afrab Bank
Ltd.

The Bank of India

(Nigeria) Ltd.

1969

Later became
Allied Bank of
Nigeria Ltd.

Nigeria Merchant
Bank Ltd.

1973

Later became
Nigeria Merchant
Bank Ltd.

Chase Merchant
Bank Nig. Ltd.

1975

Later became
Continental
Merchant Bank
Nig. Ltd.

Icon Limited
(Merchant Bankers)

1975

Later became Icon

Limited (Merchant
Bankers)

204

Table 5
The Fifth to Eighth Eras of the Nigerian Banking Industry
Eras

Name Of Bank

Year Of
Establishment

Present Status

Federal
government
dominance of
banking
(1973-1975)

23 banks operated
during the era

Made up of 18
commercial
banks, 5
merchant banks

11 were wholly
indigenous owned by
state governments and
cooperative institutions,
12 were fully owned
subsidiaries of foreign
banks

State Government
ownership (1976)

Anambra State

1987

Orient Bank Ltd

Bauchi State

1988

Inland Bank Ltd

Bendel State

1971

New Nigeria Bank Ltd

Benue State

1983

Lobi Bank Ltd

Borno State

1987

Premier Commercial
Bank Ltd

Cross River State

1986

Co-operative
Development Bank

Gongola State

1971

Highland Bank of Nigeria

Ltd

Imo State

1988

Mercantile Bank Nigeria

Ltd

Kaduna State

1982

Progress Bank of Nigeria

Ltd

Kano State

1972

Nigeria Universal Bank

Ltd

Kwara State

1975

Trade Bank (Nigeria) Ltd

Niger State

1987

Tropical Commercial
Bank Ltd

Ogun State

1988

Eko International Bank

Ltd

Ondo State

1987

Owena Bank Plc

Oyo State

1990

Gateway Bank Nigeria

Ltd

Plateau State

1981

Lion Bank of Nigeria Ltd

205

Table 5 Continued)
Rivers State

1989

Trans International Bank

Ltd

Sokoto State

1987

Gamji Bank of Nigeria

Ltd

Former Western
Region

1971

National Bank of Nigeria

Former Western
region

1981

Wema Bank Plc

Western
Cooperative
Movements

1933

Co-operative Bank Plc

Former Eastern
Region

1945

African Continental Bank

Ltd

Former Eastern
Region

1961

Co-operative &
Commerce Bank Ltd

Former Northern
Region

1959

Bank of The North Ltd

Private
Ownership
(1977 2004)

Pre SAP (1977

1986) and Post
SAP (1987 2004)

87 banks
became
operational
during the post
SAP period,
thereby
swelling the
number of
banks in
operation
during that
period to an all
time high of
120

By the end of the era, 34

bank licenses were
ceased in the early 1990s
and 25 banks were
sanctioned for various
offences relating to
inappropriate foreign
exchange dealings

Consolidation
(2005 to date)

2005 to date

89 banks
Meeting
minimum paid
up capital
criteria of N25
billion ($188
million)

Industry wide mergers

and acquisitions by
policy and moral suasion
ending an industry with
only 25 players as at
January 1, 2006

206

APPENDIX F: LIST OF CONSOLIDATED BANKS IN NIGERIA

Table 6
The Consolidated Banks as of January 1, 2006
S/N Current Bank

Former Banks now in Group Post Consolidation

Access Bank

Access Bank, Marina International Bank, Capital Bank,

Midas Bank

Afribank

Afribank, New Nigeria Bank, Afribank Merchant Bank,

IMB International Bank

Diamond Bank

Diamond Bank, Lion Bank

Equatorial Bank

Equatorial Trust Bank, DEVCOM

First City Monument

Bank (FCMB)

FCMB, Cooperative Development Bank, Nigerian

American Merchant Bank (NAMBL)

Fidelity Bank

Fidelity Bank, FSB International Bank, Manny Bank

FinBank

First Atlantic Bank, Inland Bank

Ecobank

Ecobank Nigeria, MBC International Bank

GTBank

GTBank

10

Intercontinental Bank

Intercontinental Bank, Gateway Bank, Global Bank,

Equity Bank

11

Nigeria International
Bank

Nigeria International Bank, Citibank

12

Oceanic Bank

Oceanic Bank, International Trust Bank, Stanbic Bank

207

Table 6 (Continued)
13

Platinum Bank

Platinum Bank, Habib Bank

14

Standard Chartered Bank

Standard Chartered Bank

15

Skye Bank

Prudent Bank, EIB, Bond Bank, Reliance bank,

Cooperative Bank

16

Citizen Bank

ACB International Bank Plc, Citizens

International Bank Plc, Fountain Trust Bank Plc,
Guardian Express Bank Plc, Omega Bank Plc,
and Trans International Bank Plc

17

StanbicIBTC Bank

Standbic Bank, Investment Banking Trust

Company (IBTC) , Chartered Bank, Regent Bank

18

Standard Chartered Bank

Standard Chartered Bank

19

Sterling Bank

Trust Bank of Africa, Magnum Trust Bank, NBM

Bank, NAL Bank, Indo Nigeria Bank

20

United Bank for Africa

(UBA)

UBA, Continental Trust Bank, Standard Trust

Bank

21

Union Bank of Nigeria

(UBN)

UBN, Broad Bank, Universal Trust Bank, UBN

Merchant Bankers

22

Unity Bank

First Interstate, Intercity, Pacific, Bank of the

North, Tropical Commercial, Centrepoint, Societe
Bancaire and NNB International Bank, New
Africa Bank

23

Wema Bank

Wema Bank, National Bank

24

Zenith Bank

Zenith Bank Plc