CAUSES AND EFFECT OF INEFFECTIVE COMMUNICATION IN THE BANKING INDUSTRY OF NIGERIA

CAUSES AND EFFECT OF INEFFECTIVE COMMUNICATION IN THE BANKING INDUSTRY OF NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study 

Without communication, banking industries (organisations) would not be able to function. Because every industry relies on human interaction, communication is essential to all of them. Communication is the key of human interaction. If people couldn’t talk to each other, progress would be glacial.

The transmission of ideas from one individual to another is what communication is all about, say James et’al (2009). Communication is also the act of conveying ideas and information from one entity to another in a way that both parties can understand.

The act of conveying or receiving information regarding another person’s wants, needs, perceptions, knowledge, or effective states is viewed by Velenguela (2002) as communication.

Communication can take many forms, both linguistic and non-linguistic, be deliberate or accidental, use traditional or non-traditional signals, and take place through spoken or non-spoken means.

Communication is defined as the exchange of ideas and information from one party to another (Wikipedia, 2009). Signs and semiotic norms are the building blocks of any communication process involving two or more agents. “The term ‘communication’ is often used to describe the process of sharing ideas, views, or information through verbal, written, or nonverbal means of expression.”

A common definition of communication is the two-way flow of information from one person to another with the purpose of reaching a common objective.

He elaborates by saying that communication is the act of conveying ideas from one person or group to another along a predetermined route, with the help of some sort of intermediary.

After then, the recipient provides feedback to the sender by deciphering the message. In order for there to be communication, there must be a community of communicators among all parties.

One definition of communication offered by Webster (2009) is the process of exchanging ideas, information, and context in an effort to build and maintain mutual comprehension. Interpersonal processing, observation, listening, speaking, questioning, analysing, and cooperation are all part of this process.

The exchange of information from one person to another is fundamental to all forms of communication. For information transmission to be considered a communication, the receiver’s comprehension of the transmitted meaning is crucial. There has been no communication if the receiver takes away any significance from the message.

Without knowing the industry’s goals, banking employees won’t fight to attain them, and without knowing their precise responsibilities, they won’t be able to do their tasks or keep others informed of any changes. Without communication, the industry would be in the dark about what its competitors are up to and much more.

It is nearly impossible to overstate the significance of communication as one of the fundamental managerial functions in the banking business. Various segments of the industry transmit information, thoughts, opinions, and plans through this process.

Human relations cannot exist in the absence of dialogue. Good and successful businesses aren’t the only ones that need clear and concise communication.

There are several facets of the business that necessitate effective communication, including manager-employee relations. An important part of management is getting his or her message across to staff members.

This includes not only making sure they understand what the boss wants, but also knowing how to communicate effectively and what kind of outcomes to anticipate.

Most of management difficulties develop due of lack of efficient communication. Chances of misunderstanding and misrepresentation can be minimized with proper communication system.

Ineffective communication can be caused by incomplete messages, individual difference. As human beings, each person is uniquely different from any other person. Therefore, people may interpret want differently, perceive realities differently, have variable opinions, attitudes and emotions towards people, things and events differently they may have different developmental experiences, intelligence, cultural and political beliefs, all of which may tend to affect the way they conceive or perceive a message.

An Industry: Is a group of productive organizations that produce or supply goods, service or sources of income.

Among the many ways in which Wikipedia (2009) views the business world are:

– The manufacturing and retail sale of things for profit

— as a distinct subset of the manufacturing and retail industries.

Financial Services

In Answer Bag (2009), the banking industry is defined as a large economic sector that encompasses all types of financial transactions. To be more precise, sector of the economy is comprised of:

Collecting resources that occur naturally, such as coal and seafood, is known as primary industry.

Secondary Industry – The manufacturing of goods, tertiary industry which serves the public as well as primary and secondary industry includes distribution, transport, warehousing and retailing.

1.2 The statement Of The Problem

Disruptions in communication are common in many fields, particularly those with a lot of moving parts.The banking industry has revealed a communication gap between managers and their subordinates. Most subordinates in the Banking Industry do not seem to understand the messages delivered to them by their bosses.

The managers in the banking industry always employ confusing terms in talking with their subordinates. There appears to be no friendly interplay between managers and subordinates, and the big size of banks makes it hard for information to circulate.

1.3 Objectives of the Study

The overarching goal of this research is to learn more about the banking industry’s poor communication practices and what factors contribute to them. More specifically, the project aims to:

– We need to identify the root reasons of the communication gap that exists between supervisors and their subordinates.

– To determine the reasons behind employees’ inability to comprehend communications conveyed by both superiors and peers.

– To learn the rationale behind managers’ use of unclear language or terms when interacting with their employees.

– To learn the most efficient means of communicating with bank employees.

– To foster a friendly working relationship between supervisors and employees.

1.4 Research Questions

1) In the banking sector, why do subordinates and managers fail to communicate with one another?

2) What causes employees to misunderstand the messages conveyed by their superiors?

3. What happens when people in the financial sector fail to communicate effectively?

4) How can one most effectively communicate with others in the financial sector?

5) What are some ways for managers and subordinates to develop a friendly relationship?

1.5 The significance Of The Study

The study’s findings will be helpful for bank executives since effective internal communication is a key factor in raising output. On top of that, it unifies all of a company’s managerial duties.

Employees in the Banking Sector

Because it will aid them in contributing to the accomplishment of their organization’s aims and objectives, the research effort will be beneficial to banking staffs.

Financial Sector

Since the project promotes the use, enhancement, and retention of the diverse organisational workforce, it will be advantageous to the banking business.

Those enrolled

Students will gain understanding of good communication from the study, which will help them in their academic pursuits and in their future careers.

In the Future, Academics

The findings of this study will serve as secondary data for scholars in the future who do literature reviews.

1.6 The Scope of the Study

With an eye towards reducing the frequency with which communication fails in the banking sector, this study will examine the following topics: the concept of communication in industry, the function of communication, the various forms of communication, the reasons why communication fails, and the obstacles to effective communication in this sector.

1.7 Limitations of the Study

Primary sources, such as surveys, personal observation, interviews, etc., are typically used to obtain information in research projects. A lot of obstacles will prevent you from reaching your goals. Consequently, covering the entire scope of the problem becomes extremely challenging for the following reason:

1) Inadequate funding prevents conducting thorough study.

2) Some crucial materials that might aid in the study process are not freely available due to their sensitive classified status.

Time is a constraint on the study. There will be a conflict between the lecturer’s hours and the period set up for gathering industry data.

4) Asking questions of the powerful people in charge will be an incredibly challenging task.

1.8 Definition of Terms

Communication is the act of conveying ideas or information from one party to another in a way that may be understood and used to achieve a common goal. Communication, in a different sense, is the conveyance of ideas and information through spoken or written word.

Information consists of processed data or the end product of logical data processing that enables decision making.

The term “data” refers to raw, unprocessed information on things like people, machines, locations, and goals.

A bank is a safe haven for people’s money and other valuables.

When businesses work together to make comparable products and services, they form an industry.

A superior is someone at the very top of an organization’s management chain, sometimes known as a head.

Subordinates are the lower-level employees in a company.

A “sender” is someone who starts a conversation by suggesting a topic to others.

The receiver is the entity that actually gets the message and deciphers it.

A message can be “encoded” when it is first spoken, written, or otherwise transformed into a symbolic form.

A performer’s or company’s repertoire consists of their well-known or legally performed pieces.