University of Nigeria Research Publications

KADIRI, Grace

Aut

hor

PG/EMBA/2000/0656

Title

The Decision Making Process in Development Banking: A study of the

Allstates Trust Bank PLc and Nigerian Agricultural and Co-operative Bank

Facu

lty

Business Administration

Dep

artm

ent

Marketing

Dat

e

January, 2005

Sign

atur

e

THE DECISION MAKING PROCESS IN DEVELOPMENT BANKING:

A STUDY OF THE ALLSTATES TRUST BANK PLC AND NIGERIAN AGRICULTURAL AND

CO-OPERATIVE BANK,

KADIRI GRACE CMD/UNN/PG/EMBA/2000/0656

DEPARTMENT OF MARKETING FACULTY OF BUSINESS ADMINISTRATION.

UNIVERSITY OF NIGERIA, ENUGU CAMPUS,

ENUGU,

JANUARY, 2005

TITLE PAGE

THE DECISION MAKING PROCESS IN DEVELOPMENT BANKING:

A STUDY OF THE ALLSTATES TRUST BANK PLC AND NIGERIAN AGRICULTURAL AND

CO-OPERATIVE BANK.

KADIRI GRACE CMD - UNN/PG/EMBA/2000/0656

BEING A RESEARCH PROJECT SUBMITTEDTO THE DEPARTMENT OF MARKETING, FACULTY OF BUSINESS ADMINISTRATION, UNIVERSITY OF NIGERIA, ENUGU CAMPUS, ENUGU IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION (MBA) MARKETING.

SUPERVISOR: PROF, IKECHUKWU E. NWOSU, Ph.D

JANUARY, 2005

ii

APPROVAL PAGE

KADIRI, Grace, a postgraduate student in the Department of

Marketing, Faculty of Business Administration with

Registration Number CMDNNN/PG/EMBA/2000/0656 has

satisfactorily completed the requirements for the award of the

degree of Master in Business Administration (MBA)

Marketing.

Supervisor ~ e a ' d o f ~ e ~ a r t m e n t

iii

CERTIFICATION

I certified that this research work was carried out by Kadiri, Grace, with

Registration Number CMD/UNN/EMBA/2000/0656, a postgraduate stufent in

the Department of Marketing, Faculty of Business Administration, under my

supervision has satisfactorily completed the requirements for the award of Master

in Business Administration (MBA) Marketing.

PROF. I. E. NWOSU Project Supervisor

DR.(MRS) J. 0 . NNABUKO Head of Department

DATE

DATE

DEDICATION

To my husband, Dr. S. 0. Ahmodu, my children, Ikeoluwa and Ifeoluwa and my

parents, Mr. and Mrs. M. Kadiri.

ACKNOWLEDGEMENTS

First and foremost, I wish to express my gratitude and thanks to God Almighty

whose grace has been sufficient for me in the course of writing this essay.

My profound gratitude and appreciation go to my able supervisor, 6

Prof. Ikechulwu Nwosu of his timeless dedication, constructive criticism and

suggestions he rendered to me in the course of writing this essay. His efforts,

suggestions have been useful.

I also wish to acknowledge all my lecturers whose names I would not mention.

Finally, I express my deep sense of gratitude to my husband, parents, twin sister

and siblings who supported me in diverse ways. I am very grateful to them for all

their support. May God in His infinite love and mercy shall continue to protect

and guide you and reward you in a mighty fold (Amen).

Kadiri, Grace

ABSTRACT

Decision-Malting is an integral part of the Management of any organisation.

More than anything else, competence in this activity differentiates the Manager

from the non-manager and more importantly, the good manager from the

Mediocre Manager.

b

Decision-Making owes not operate in vacuum, but rather, it involves human

beings within an organization or otherwise that would have been faced with a lot

of alternatives. Hence the importance of human element in any organizational

setting cannot be overlooked.

Thus Government is by the day getting more aware of this decision-making

process which in turn dictates and direct the combination as in decision making

to which other factors of production must follow in order to attain the defined

organizational objectives and goals.

The objectives if the study are:

- To study decision-malting process of the case studies as it affects the

operations of the focal organizations.

- To assess the development banks on the Nigeria Economy.

- To evaluate the performances of the focal organisations cum the

plannedltargeted objectives at the beginning of operations.

- To appraise the alternatives decisions so as to make use of the best.

vii

The survey research method using questionnaires and personal interviews was

adopted in generating data from the selected respondents for this study.

The major finding were:

- Decision-makings process as presently obtained in the focal banks is

fundamentally expressed through the basic functions of the managers as

in planning, organising, staffing, directing and controlling.

- lha t the scope of decision-making process is ordinarily extended

beyond the managerial process.

- That the personal values of the decision makers as well ag that of the

banks actually exert an influence on the process of choices.

- That the decision making process of the focal banks are dynamic that

the study revealed environmental factors that always have impact on

decision making process of the focal banks.

Drawing from the conclusion of the study, the decision-making process of an

organisation must be very dynamic, effective, sound and all stakeholders

friendly.

TABLE OF CONTENT

CONTENT

Title Page

Approval Page

Certification

Dedication .

Acknowledgements

Abstract

Table of Contents

CHAPTER ONE

Introduction

Background to the Study

Statement of the Problem

Objective of the Study

Research Questions

Formulation of Hypothesis

LimitationIScope of the Study

Significant of the Study

References

CHAPTER TWO

2,O Introduction

2.1 Literature Review

2.2 Decision Theory

2.3 The Scope of Decision-making

2.4 Basic Characteristics of Decision-making

2.5 The Structure of the Process

2.6 Setting Organisational Objective

PAGE

ii . . . 111

iv

v

v 1

vii - viii

The Search for Alternatives

2.7.1 Undirected Viewing

2.7.2 Conditional viewing

2.7.3 Informal Search

2.7.4 Formal Search

2.7.5 Decision-malting: Environmental Look

The Economic System

2.8.1 The Political System

2.8.2 The Social System

Decision-making: The Psychology Perspectives

2.9.1 Personality as a Determinant of Choice

Decision-making: The Sociology Perspectives

Techniques for Decision-making

2.1 1.1 Probability Theory

2.1 1.2 Utility Theory

2.1 1.3 Expected Value

2.1 1.4 Decision Trees

2.1 1.5 Game Theory

Values of Decision-making

Decision-malting & Creative Problem Solving

2.13.1 IdentiQing the Problem

2.13.2 Generality alternative Solutions

2.13.3 Selecting a Solution

2.13.4 Implementing & Evaluating the Solution

Decision-making: Managerial Perspectives

2.14.1 The Integrative Perspective

2.14.2 The Inter Disciplinary Perspective

2.14.3 The Interloclting perspective

2.14.4 The Inter-relational Perspective

2.15 The Nigerian Agricultural & Co-operative Bank

2.16 Scope of Activities & Lending Policy

References

CHAPTER THREE

Research Methodology

Introduction

Research Design

Source of Data

3.3.1 Primary Source

3.3.2 Secondary Source

The Population

Sample Size Determination

Sampling Plan

Tools for data Analysis

References

CHAPTER FOUR

4.1 Introduction

4.2 Method of data Analysis

CHAPTER FIVE

5.0 Summary and Conclusion

5.1 Summary

Conclusions

Bibliography

APPENDIX 1

Questionnaire

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Decision-making is an integral part of the management of any organization. More

than anything else, competence in this activity differentiates the manager from

the non-manager 'and more importantly, the good manager from the mediocre

manager.

The term decision in the word of Ofstad (1961) means b

(1) that has started a series of behavioural reactions in favour of something, or it

may mean to do a certain action, which he has no doubts that he ought to do. But

perhaps the most common use of the term is this: "to make a decision" means (2)

to make a judgement regarding what one ought to do in a certain situation afier

having deliberated on some alternative courses of action.

Decision-making does not operate in vacuum, but rather, it involves human

beings within an organization or otherwise that would have been faced with a lot

of alternatives. Hence, the importance of human element in any organizational

setting cannot be overlooked.

From military to religion, from business to government, all organizational

endeavours are saturated with the activities of man, who ordinarily in turn

dictates and directs the combination as in decision malting to which other factors

of production must follow in order to attain the defined organisational objectives

and goals.

In line with the above, Shull and his associates (1970) define the decision-making

process as a conscious and human process, involving both individual and social

phenomena, based upon factual and value premises, which includes a choice of

one behavioural activity from among one or more alternatives with the intention

of moving forward some desired state of affairs.

Developing countries in Africa, Nigeria as a case in hand, since her Independence

from colonial tutelage has been desirous of rapid economic development with

emphasis on industrialization.

Aware of the significant contributions, which development banks had ma* in the

industrialization of developed countries, banks appeal to them as necessary

institutions that must be incorporated in the financial system so as to accelerate

the pace of agricultural and industrial development.

Noting that the existing commercial banks would not be able to provide the

needed capital as well as technical and managerial expertise required to stimulate

and sustain rapid economic growth and development, hence, the need to have

development banks on the stream of the financial institutions' cannot be

overemphasised.

As the ownership structure seriously affects the operation of development banks,

by the 1960, the government had recognised the need for direct participation in

order to promote capital formation. To this end, efforts were made to establish

development banks in various region with responsible for investment in industrial

enterprises. Funds for this purpose were provided by the respective regional

government. In addition, regional institution was established and directed to grant

"Soft loans" to private indigenous enterprises from funds provided by the

governments. But these corporations failed to meet adequately the country's

needs for development and finance, partly because of their paltry resources, but

largely because of their conversion into administrative devices "for the

dispensation of party patronage".

1.2 STATEMENT OF PROBLEM

Many organisations have collapsed because of inefficiency and ill management

of their resources. This often arises as a result of bad decision scenarig that would

have prevailed in such organisations.

In the word of John Dewey (1970), a problem well defined is half solved".

Hence, this study will seek to x-ray Decision-Making Process in Development

Banking by looking at the following research problems.

No doubt, the recent proliferation of banks in the country has given birth to

stiff competition for qualified hands to man the operationalization of the banks.

The effectiveness of the banking operations fundamentally depends on the

efficacy of the decisions by the management.

In line with the above, it has always been very difficult to determine the take

off point of decision malting process as well as where it ends.

Following the above scenario, it is therefore necessary for a purposeful

organisation to spell out the Decision malting process policies.

The influence of the focal organisations environment on the decision making

process must equally be x-rayed so as to ensure the attainment of

organisational goals.

1.3 OBJECTIVES OF THE STUDY

The research work will try to adhere the following objectives:

1. To study decision-making process of the case studies as it affects the

operations of the focal organisations

6

2. To assess the impact of development banks on the Nigerian economy.

3. To evaluate the performances of the focal organisations cum the

plannedltargeted objectives at the beginning of operations.

4. To appraise the alternatives decisions so as to make use of the best.

1.4 RESEARCH QUESTIONS

In order to cover the study comprehensively enough so as to derive a valid

conclusion, the following research questions, among others will be answered in

the course of the research work.

1. How does the decision-making process look like in the Allstates Trust

Bank Plc?

2. What makes up decision-making process in the Nigerian Agricultural

and Co-operative Bank?

3. What are the areas that need fbrther improvement for effective and

efficient operations of the focal organisations?

4. What are the attributes that work for or against good decision-making

process?

5. What is the management and workers perception of decision-malting

process as it affects the focal organisations? Does Decision,making

process have a correlation with the level of productivity in the focal

organisations?

1.5 FORMULATION OF HYPOTHESIS

As complimentary too to percentage analysis of data, certain hypothesis were

formed and subsequently subjected to statistical test of "Chi-square" (X2) in

order to determine the validation or otherwise of the respondents to some of the

questions.

1. There is association between effective decision-making process and level

of productivity.

2 . There is association between effective decision-making process and level

of productivity.

3. The focal bank's environments are conducive for effective decision-

making process.

4. The focal banks environments are not conducive for effective decision-

making process.

1.6 LIMITATIONISCOPE OF THE STUDY

Companies do not want dynamic failures; they want individuals who are properly

equipped to make decisions.

b

Premised on the above, decision-making process has a peculiarity with the

organisation in question.

However, based on time, money and other academic and social demand, the

study shall be limited to Allstate Trust Bank Plc as well as Nigerian Agricultural

and Co-operative Bank members of staff.

1.7 SIGNIFICANCE OF THE STUDY

It is a known fact that for any journey, there is apparently a purpose and that the

purpose leads to benefits.

In research, work cannot be in any way over-estimated. The research work when

completed shall be of immense benefits not only to students of UNN, but also to

other institutions, business organisations, the government and the general public.

REFERENCES

OFstad H. (1961): An inquiry into the Freedom of Decision

Oslo: Norwegian Universities Press.

Shull Fremont A (1970): Organisational Decision Making

New York: MCGraw -Hill Publishing.

CHAPTER TWO

2.0 INTRODUCTION

2.1 LITERATURE REVIEW

However, in bid to manage the banking industry effectively, the managerial

decision-making process is becoming a predominating factor, which must be

accomplished with ultimate organizational procedure. The aims and objectives of

the organization may not be filly utilized if the management decision-making

process is not tailored towards the organization objectives. In the word of

Goizueta (1998) "decision-making has never been easy, it is especially

challenging for today's managers. Accordingly, in all era of accelerating change,

the pace of decision making has also accelerated". In line with the above,

decision-malting can be said to be the process of identifling and choosing

alternative course of action in a manner of appropriated to the demand of the

situation. Obviously, the act of choosing implies that alternative courses of action

must be weighed and wadded out.

According to Harrison E.F (1975 : 3) "Decision making is an integral part of the

management of any organization. More than anything else, competence in this

activity differentiates the manager fi-om the mediocre manager". It would be

difficult to find many managers who do not consider themselves good decision

makers. Any suggestion that a given manager might improve his decision-making

techniques almost surely would elicit a highly defensive reaction. There is a lack

of universal agreement as to what constitutes a really good decision, and there is

no generally accepted approach for managers to follow in pursuit of choices most

likely to result in favourable consequences.

Subsequently, in researching the subject of decision making, it is customary to

focus on one or more of three issues:

- The decision malting process,

- The decision maker, or

- The decision itself.

It is interesting to note that the virtual absence of a definition for the tern

DECISION. To illustrate, a statement of alternative definition of this word was

given by Ofstad (1961) : 15). To say that a person has made a decision may

mean: b

- that he has stared a series of behavioural reactions in favour of something, or it

may mean that he has made up his mind to do certain action, which he has no

doubts that he ought to do. But perhaps the most common use of the term is this

"to make a decision" means - to make a judgement regarding what one ought to

do in a certain situation after having deliberated on some alternative course of

action.

Fremont A. S. (1970 : 31) viewed decision making process "as conscious and

human process, involving both individual and social phenomena, based upon

factual and value premises, which includes a choice of one behavioural activity

form among one or more alternatives with the intention of moving towards some

desired state of affairs".

Harbert A. Simon (1960:l) in his classic work on the science of management

decision treats decision making as a process synonymous with the whole process

of management. Eilon Samuel (1969 : 172) accurately observed that most of the

definitions of a decision indicate that "the decision maker has several alternatives

and that his choice involves a comparison between these alternatives and an

evaluation of their outcome", he went hrther to view that in an ongoing process

of evaluating related to a goal at which the expectations of the decision maker

with regard to a particular course of action impel him to make a selection or

commitment toward which he will direct his intellect and energies for the purpose

of attaining his objectives.

The decision-making process in vital issues that must be given a considerable

attention for organization objectives and aims to be attained and for proper

integration of the organization to its economic environment.

b

2.2 DECISION THEORY

Decision theory as an academic discipline is still relatively young. It is only since

the War World I1 that operations research statistical analysis and computer

programming have imparted a "scientific" aura to the process of choice and only

within the last ten or fifteen years that the behavioural sciences-sociology,

psychology and social psychology - have begun to contribute to the body of

knowledge comprising decision theory.

Even today, the bulk of the literature in the field has a strong quantitative

orientation. That is, the decision maker is assumed to have:

- a fixed objective;

- almost unlimited time and money to spend in search and evaluation

activities;

- virtually perfect information regarding the probability of alternative

outcomes, and

- inexhaustible cognitive powers for comprehending, assimilating and

retaining an infinite numbers of variables (while such assumptions may

be necessary to qualify a decision-making situation, they limit the

applicability of quantitative methods in decision malting and dictate

extreme caution in interpreting and using qualified result).

The relative newness of decision theory as an academic discipline doubtless

account for the diversity of approaches to the subject. Still, there exists a need for

a unified, inter-disciplined approach that would combine the behavioural and

quantitative aspects of the field into a cohesive, meaningful process useful to

academicians, consultants, and managers in all forms of organizational

endeavour. This is an ambitious undertaking, one that will doubtless require

much input of work and time. But the effort is worth making, and it is,hoped that

the approach set forth in this research will make a small contribution.

2.3 THE SCOPE OF DECISION-MAKING

Decision-malting can occur at several levels. The first and perhaps, the most

basic level is that of the individual acting to satisfy his basic needs. According to

Maslow .A. (1943 :370) "human beings are motivated by hierarchy of needs, the

highest being the need for self-actualisation or the need to become all that one is

capable of becoming". However, self-actualisation may take many forms and be

pursued with varying degrees of intensity. The satisfaction of a lower-level need

for one individual may for example, represent a kind of ultimate fulfilment for

another individual. Still, the concept of a hierarchy of human needs provides a

useful framework for analysing individuals' decisions.

Much of the decisions making accomplished by an individual relates to the

solution of problems - personal employment, or social problems. As a general

statement on the decision - making or problem - solving approach of individuals,

the following may be said:

- problem solving by individuals entails the use of strategies (plans or

patterns) of searching for relevant alternatives, especially when the

slightest degree of complexity prevails. The greater the cognitive strain

imposed by the problem constraints such as time, information

availability, and recall capability, the simpler the rules of search. The

individual usually tries to minimize cognitive stain in part by his choice

of problem-solving strategies.

- Problem-solving behaviour is adaptive. Individuals start with a tentative

solution, search for information, modifjl the initial solutiqn, and

continue until there is some balance between expected and realised

results.

- Even in the most restricted problem-solving situation, the individual's

personality and his aversion for or preference for risk enter his choice

of strategies, his use of information and his ultimate solution, this

assumption is premised to Alex et., a1 (1971 : 73).

In summary, individuals tend to amply rather simple strategies, even in the

presence of complex problems, to obtain desirable solutions, which are

constrained by imperfect information, time and cost factors, frequent severe

cognitive limitations and manifold psychological forces.

In our complex society, individuals needs find satisfaction as members of groups

that have particular purposes. Often they must compromise their personal desire

if the group is to arrive at a consensus. Therefore, group decisions represent more

than just a collection of the desires of the individual members. Group choices

reflect a special synthesis of compromised desires of individual members.

Presumably, such a synthesis is less volatile and perhaps even more viable than a

similar decision made unilaterally by an individual would be. But it is not

necessary a better decision in terms of need satisfaction at the level of the

individual or group attainment at the level of the organization. It represents most

simply an expansion of the scope of choice, from a single to a multiple decision

maker.

In the view of Wayne M. (1980 : 8), "it is also that a group normally provides a

broader range of knowledge and a variety of critical viewpoints that may

facilitate a more penetrating analysis of a given problem". Still, the need to

obtain a consensus of the members is often time-consuming and frustrating to the

individual who would much prefer the relative freedom of unilateral choice.

Other individuals, of course, prefer to make decisions as members of a group

because the risk of personal criticism is often lessened and the responsibility for

unfavourable result is likely to be diffused.

2.4 BASIC CHARACTERISTICS OF DECISION-MAKING

Wayne .M. (1980: 8) listed the followings as the basic characteristics of decision-

making at the level of the organization.

- Organizations make extensive use of programmed decisions, which

involve reasonably well-structured patterns of search. Naturally, the

more complex and significant the decision, the more extensive the

search process will be.

- Organization often use rather simple rules of thumbs to make decisions

as well as the complex analytical frame works that are so often

attributed to organizational decision making. Again, the complexity,

uniqueness and significance of the decision are determining factors.

Obviously, some don't permit rule - of thumb treatment.

- Organization makes decisions that are bound and based by the local

rationality of the decision unit. That is, given the constraints in the

situation and the uncertainties of the moment, organizations are likely

to make decisions that are optimal in their spheres but sub-optimal

when received in the larger totality.

- Organization engages in directed search for relevant alternatives. His 8

choice of decision rules and decision strategies is constrained by the

desire to minimize uncertainties.

- Organizations learn to the extent that organizations are part of open

systems, there is little doubt that they learn from and adapt to their

environment.

Decision malting at the level of the organization is expressed primarily through

the basic functions of the manager, which include, according to Koontz et., a1

(1972 : 46):

- planning;

- organising;

- staffing;

- directing and

- controlling.

For example, objectives are determined only after decisions have been made

regarding the basic purpose of the organization. Plans are formulated in the light

of decisions made for resource requirements to accomplishing the objectives

within some selected period of time. As Simon (1970 : 1) has stated, "Decision-

making is synonymous with managing". It is dynamic element that activates and

sustains the managerial process.

However, the scope of decision-making extends beyond the managerial process

at the level of the organization. According to Wadia (1976 : 66) "The totality of

organization comprises the system of enterprises, which in the United States is

capitalism". Decision made at the level of the system of enterprise t e ~ d s to be

oriented toward:

- consumer welfare

- allocation of resources and

- production and distribution of goods and services.

Although, the primary focus is on macroeconomics at this level, the decision-

making process is analogous to that employed at the level of the individual, the

group and the organization.

Decisions are also made at the level of the total society. Here, the primary

objective is social welfare with significant corollaries of

- the good life,

- culture,

- civilization,

- order and

- justice.

The principal orientations is not, as at the level of the system of enterprises, of an

economic nature. Bernthal (1962 : 193) cited the basic for decisions at this level

rather well in the following excerpt:

It is necessary to see the importance to a culture and civilization of developing

not only vigour in economic activity, but also of devoting man's energies to he

civilizing process once economic survival is attained. A surplus of

goods.. . . . .makes it possible for man to devote more energy and attention to the

creation of works of literature, architecture, sculpture, music.. . .to the

establishment of orderly societies.. . . . .and just rules.. . . . . 6

Because organizations exist within the economic system that is a part of the total

society. Managers need to be aware of and be responsive to the decisions made

and the rationale for them at super-ordinate levels.

2.5 THE STRUCTURE OF THE PROCESS.

Decision-malting is a dynamic process rather than a fixed procedure or a choice

made at a particular point in time. The entire process is diagrammed in figure 2: 1.

It begins with setting objectives, continues through the search, evaluation, choice

and implementation stages and culminates in the following and control stage,

leading forward a resetting or updating of the original objectives. The decision

making process itself is composed of several sub-processes. For example, if the

search for alternatives reveals that the objectives are too ambitious, they may be

scaled down. On the other hand, if the search indicates that the objectives are not

challenging enough, they may be adjusted upward.

Another sub-process occurs following the choice itself, when unexpected

difficulties or obstacles are encountered at the point of implementation. If the

problems appear insurmountable or too expensive to resolve, the research may be

renewed to identi@ new and practical alternatives. And, of course, if such

alternatives are not forthcoming, it may be necessary to revise the objectives to

more practical alternatives. And also, if such alternatives are not forthcoming, it

may be necessary to revise the objectives to more realistic and attainable levels.

The third and final process occurs following implementation of the decision,

when follow-up and control procedures reveal that implementation has not been

successful in this event; corrective action may result in a modification or

intensification of implementation techniques. B

The dynamics of the decision-making process are fairly straight forward,

although, some complexity may arise in the several sub-processes. Moreover,

decision-making is largely sequential in that it normal progressions follow the

flow depicted in figure 2.1 for example, it is obviously necessary to search for

alternatives before comparing, evaluating or malting choices. It is also necessary

to develop and maintain follow up and control procedures to ensure that the

implemented decision results in an outcome that will attain the original objective.

Set Orgmisational Search for Objectives Alternatives

.:'? : , , -

1 Revise or up date

objectives

Co~npare and Evaluate

Alternatives

4 -+ ;? ldentify I ( new

Alternatives 0

Follow up Implement and. decision

Conlrol I ( actions as I

necessary

Figure 2.1 The Decision-m

r *. . - - Choose among id,

A1 ternatives

ing Process. @

The decision-making process as depicted in fig. 2.1 is especially applicable

to the organizational development.

2.6 SETTING ORGANISATIONAL OBJECTIVES

Objectives are needed in every area where performance and results directly affect

the survival and effectiveness of the organisation. They spell out what results the

organisation must aim for and what is needed to work effectively forward these

targets. Objectives should enable managers to do at least five things.

- To test these statements in actual experience.

- To predict behaviour.

- To appraise the soundness of decisions when they are still being made.

- According to Peter Druclter (1972 : 118) "to analyse their own

experience and, as a result, improve their performances.

Objectives are essential to the successful accomplishment of the managerial

leadership function in any formal organisation. Not only do they indicate the

proper course of action but they also indicate the reasons for that action.

Objectives are also important because they provide the basis for eliminating

action that makes no contribution towards their accomplishment. As Flippo .B.

(1970 : 22) has said, "Instead of the work becoming completely absorbing and an

end in itself, it is viewed in a broader perspective as a means to an end"

Objectives provide a basis for the planning function, which charts the course of

the organisation toward some future time horizon. At the same time, they permit

the establishment of meaningful standards for effective control. ,The result

desired from organised and co-ordinate action are thereby brought into sharper

focus. In fact, the practical and operational fiame work for control is formed by

breaking objectives down into measurable standards, targets, and deadlines. If the

objectives are well defined and thought out, control of operations will be greatly

facilitated.

Peter Druclter (1 972 : 120) observed that "organisation objectives also provide

the basis for co-operation and the development of good morale. Each member of

an organisation has slightly differing, and often conflicting personal goals or

values for joining the organisation. The gathering of these diverse individuals and

groups into one framework presupposes at least one common objective seen as

important by all. Various interests are thereby subsumed by the common

objective and a rationale in developed for co-operation.

When the objectives are abolished or completely accomplished, the need for

organisation disappears. However, the task of setting objectives is exceedingly

complex. Statements of objectives are frequently altered through informal and

formal pressures from influential individuals and powerful groups. Real

objectives often differ from declared objectives. Organisations can be diverted by

pursuing too zealously, the more measurable objectives, often concentrating

attention on short-run values and inverting ends and means.

Still, if decision-making is the dynamic aspect of management, objective

provides the framework within which action can be channelled toward the

accomplishment of meaningfbl results. In the absence of objectives, decision-

malting becomes a lacuons exercise, with outcome more likely than not to be at

cross-purposes with the bac mission of the organisation. As decision-making

pervades the process of management, which is based on objectives, so does the b

setting of objectives underlie the process of choice.

Objectives are the goals arising out of the application of resources. As such, they

ensure commonality of purpose and duty of action throughout an organisation.

Objectives have severe characteristics, among which the following three are

primary:

- MEASURABILITY: Objectives should be measurable, at least by

some order of magnitude.

- SCHEDULABILITY: Objectives should be schedulable, so that

interim points of completion can be determined.

- ACCOUNTABILITY: Objective should be assigned to the

responsibility of some individual manager, so that accountability for

performance can be established.

In addition to having the forgoing characteristics, objectives should be dynamic

rather than fixed or static. If the search yields many alternative, the objectives

should be executed to levels that will require extra effort to attain.

Objectives from the basis for all managerial activities, and the decision-making

process, which is the hallmark of management, epitomises this fundamental

relation. With the objectives defined clearly, the next step is the search for

relevant alternatives.

2.7 THE SEARCH FOR ALTERNATIVES

Search is the stage in the decision-making process in which the internal and

external environments of the organisation are scanned for information that can be

formulated into relevant alternatives that can be identified as likely to fulfil the

objectives. Agudar .F. (1967 : 19) divided the scanning activity into f ~ u r parts.

2.7.1 UNDIRECTED VIEWING: General exposure to information fkom

where the viewer has no specific purpose in mind with the possible

exception of exploration. Although undirected, this mode of viewing

involves a considerable orientation on the part of the scanner by virtue of

his selection of particular and his general experience and interest.

2.7.2 CONDITIONAL VIEWING: Directing exposure, not involving

active search, to a more or less clearly identified area or type of

information. The mode of scanning differs from undirected viewing in that

the scanner is sensitive to particular kinds of data and is ready to assess

their significance as they are encountered.

2.7.3 INFORMAL SEARCH: A relatively limited and unstructured

effort to obtain specific information for a specific purpose. It differs from

conditioned viewing in that the information wanted is actively sought.

Informal search can take many forms, ranging from soliciting, information

to increase the emphasis on relevant sources or acting in a way that will

improve the possibility of encountering the desired information.

2.7.4 FORMAL SEARCH: A deliberate effort usually following a

pre-established plan procedure, or methodology - to secure specific issue.

It differs from informal search principally in that it is programmed or

quasi-programmed in nature.

According to Cyert .R. (1958 : 337) search is not, however, viewed as

simply another use of organisational resources. There are several stages to

motivate search activity on the part of an organisation. If a problem asea is

recognised, there is ordinarily a search for possible alternatives. At this

stage, only rough data are used to screen out obviously inappropriate

actions. This scanning usually yields only a few suitable possibilities,

which are then considered in greater detail.

Peer .S. (1972 :141) opined that during the search phase, the decision

maker seldom view his evaluation of alternatives as final. The ones that do

not possess important attributes of the objectives are rejected immediately,

but acceptable alternatives are put into the decision maker's active roster

until he is ready to make his final decision. In fact, the decision maker may

well continue his search for new alternatives even though he has already

discovered a perfectly acceptable one in terms of his objectives.

In their discussion of the "open" model for decision making Alexi et., a1

(1 962 : 163) described two primary levels of search activity.

The first is the search for a limited number of alternatives in which

the decision maker employs various methods of scanning to delimit

a few selected alternatives relevant to his objectives.

The second is the search for a satisfactory solution which is obtained

by a close comparison and evaluation of the alternatives discovered

at the first level. If the decision maker perceives the world as

providing many good alternatives, only a few will be e x a ~ i n e d to

fine a satisfactory one. Of course, the search actively is further

delimited by the decision maker's subconscious screening

mechanism, which rejects obviously unsuitable alternatives.

DECISION-MAKING: ENVIRONMENTAL LOOK

Organisations do not exist in a vacuum. They are part of larger

aggregates, such as the economic system, the social system and the

political system of the nation state. Therefore, decision makers must

take account of he inputs of the environment in arriving at a decision

and they must consider the effects of that choice on the manifold

forces comprising the environment. In particular, the satisfjring

decision maker in the open decision model must be keenly aware of

the many uncontrollable external variables that shape his objectives

and aspirations, channel his search, limit his range of relevant

alternatives, and thus temper his selection of that one alternative that

is good enough for his intended purpose. To transform an

intellectual state into an operational reality, however, a choice made

must be implemented effectively. The effectiveness of an

implemented decision is conditioned considerably by the

environment. The acceptance of a choice made apart from

environmental forces is most unlikely. Such a choice would be

difficult to the extent that it was made without due consideration of

the areas affected by it. The complete success of the outcome of

such a choice would be most problematical.

2.8 THE ECONOMIC SYSTEM

One of the basic environmental forces affecting decision maker in a formal

organisation is the economic system. The economic system includes: employees, b

customers, competitors, other industries and the operations of the federal

government in regulating business activities to protect the public interest and in

using monetary and fiscal policy to influence the availability of money and the

cost of capital. The economic system may be conceived as a marketplace where

sellers and buyers interact to establish the prevailing price structure for a wide

range of commodities and services.

One primary function of the economic system is the allocation of scarce

resources, that is: land, labour, capital and management. The economic system

provides some value measurement device, such as prices, wages, or quotas, to

apportion these resources among competing users in a content of basic supply-

demand relations.

A second function of the economic system is the maintenance of an effective

aggregate demand for the products and services of that system. There must be an

adequate supply of money and a desire on the part of the general public to spend

that money. Relatively, full employment will ensure the availability of sufficient

funds in the economy. To provide full employment, more jobs must be created

each year to accommodate an increasing population. Failure to create new jobs

contributes to rising unemployment, which inhibits consumers' purchases,

thereby depressing sales and further contributing to unemployment. The

maintenance of relatively full employment is a primary function of the economic

system in a capitalistic country like the United States.

A third function of the economic system is to provide for the timely and efficient

distribution and exchange of its goods and services. The transfer of the goods and

services from the producers and sellers to consumers and buyers is a principal

determinant in the effective functioning of the economic system. "The ar;onomic

system is therefore concerned not only with what and how much of a given good

or service will be produced, but with how, when and where these goods and

services will be exchanged" Bill .J. et., a1 (1970 : 75) viewed.

The economic system is characterised by three basic forms of ownership:

- The single proprietorship;

- The partnership and

- The corporation.

In discussing decision making at the level of the organisation, the corporation,

because of its dominance of ownership of the productive assets of the economic

system, is the principal point of emphasis.

2.8.1 THE POLITICAL SYSTEM

A second ma-jor environmental force with which decision makers in formal

organisations must contend with is the political system. This system is

perhaps even subtler in its effects than the economic system, which is

characterised by definable institutions, processes and markets. According

to Richard E. et., a1 (1969 : 405), "The political system is founded on the

concept of governance which is the exercise of an authority that seeks not

merely the right to direct and to lead, but to control".

The problems of governance has always been the same in all forms of

human association: how to muster both the power and the authority

required by the purpose of association to achieve its end in a practical, fair

and orderly way, and how to limit that power and authority to specified

areas, rather than to permit it to overflow into matters that are not its basic

concern. Quite apart from the initial reasons behind the establishment of

government, its essential objective is the maintenance of order in the

society through responsible leadership. The basic assumption is fiat the

governing body represents the manifested choices of individuals who are

free to show their satisfaction or dissatisfaction with the established order

at specified times.

Therefore, a government conceived on the premise is that it is of the

people, by the people and for the people must be extremely flexible if it is

to effectively meet a situation in which individuals have, through necessity

or circumstances, aligned themselves in large, single, self-seeking groups.

If power resides in the control of property, it also resides in the control of

large number of people. Further, the nature of government appears to alter

in proportion alterations in the nature of the groups it was set up to

represent and administer. Accordingly, if one purpose of public

government is to represent the mood and opinion of its people and to adjust

its policies and procedures concurrently, then another and perhaps, higher

purpose is to lead the people along the part of wise and responsible

political behaviour.

2.8.2 THE SOCIAL SYSTEM

Another of the several environmental forces that exerts a significant impact

on the decision making process in formal organisation is the social system.

Parsons T. et., a1 (1951 : 197) defines the social system in the following

passage: "A social system is a system of the actions of individuals, the

principal unit of which are roles and constellations of roles. It is a system

of differentiated actions organised into a system of differentiated roles.

Internal differentiation, which is a fundamental property of all systems,

requires integration. It is a condition of the existence of the system that the

differentiated roles must be co-ordinated either negatively, in the sense of

the avoidance of disruptive interference with each other, or positively, in b

the sense of contributing to the realisation of certain shared collective goals

through collaborated activity".

A comprehensive way to view a social system is through both its structure

and performance. The structure relates to the matter or mass of the system

that occupies the space. The performance relates to the expenditure of

energy or the action that takes place within the system. At any level,

structure and performance are aspects of the several processes which, when

taken together, comprise the total social system.

Gross M. (1966 : 39) delineates the structure of a social system as including

the following indispensable elements:

- people and

- non-human resources,

- grouped together into subsystems that

- interrelate among themselves and

- with the external environment, and are subject to

- certain values and

- a certain guidance system that may help provide the capacity for future

performance of a social system consists of the following activities.

- Satisfying the interests of the various "interested" by

- Producing various kinds, qualities and quantities of output, - Investing in the systems capacity for future output,

- Using inputs efficiently,

- Acquiring resources, and doing all this in a manner that conforms with,

- Various codes of behaviour and

- Various conceptions of technical and administrative (or guidance)

rationality. b

Change is an integral part of all social system. The organisational decision

maker should seek to identify the social conditions with which he must deal in

the future.

According to Bridges et., a1 (1963 : 31), "The social problems that face

the.. . . . . .decision maker revolve around the discrepancy between what is

socially desirable and what is being achieved in society. A civil right for all

men is socially desirable but destroying a man's properly is not". Greater

productivity is desirable for improving the American economy but not if

waste from that productivity pollutes the air, the streams and vegetation.

Technology is desirable if it will improve the American standard of living but

not if it destroys the human spirit and motives of men.

According to this ethic management takes into account the welfare of all

groups in society affected by the corporation in conducting its affair .....

Thomas A. (1969 : 44) viewed that the modern manager has earned his high

place among the leaders of the nation. But his responsibilities have kept pace

with his social role. People want things besides goods and services from the

modern corporation. More and more it is considered that the job of the

manager is to see that they get them.

2.9 DECISION-MAKING: THE PSYCHOLOGY PERSPECTIVES

The decision-making process is accomplished by individuals acting singly or in

groups to arrive at a satisfjring choice among available alternatives. The

behaviour of an individual as he proceeds toward a rationale decision is governed

by a host of psychological forces that affect him at the consciqus and

subconscious levels. For example, his personality influences the way in which he

reacts to frustration in the search for satisfjring alternatives. His view of a given

alternative as satisfjring is conditioned significantly by the structure and

functioning of his perceptual process. Moreover, the use of his intellectual

facilities to compare, evaluate, and select alternatives seen as satisfying is

affected considerably by his power of cognition and perhaps, to some

immeasurable extent, by forces imbedded deeply in his subconscious mind.

Indeed, the psychological forces within the decision maker influence his

behaviour throughout the entire integrated process of arriving at a satisfying

decision. At the very best, his ability to control these forces is limited. The most

that he can hope for is to gain greater understanding of himself by acquiring

deeper insight into his personality, his perception, and his propensity for

accepting risk in the process of choice. By this means, the psychological forces

within the decision maker are more likely to work for rather than against an

outcome that will meet the original objectives.

2.9.1 PERSONALITY AS A DETERMINANT OF CHOICE

There is a wide range of meanings for the term personality. One definition

is by Blair J. (1969 : 244), "Personality is a holistic concept which is all

inclusive of those integrated qualities, impulses, habits, interests, ideas and

other characteristics that compose the individual as he exists in society.

And according to Joseph .W. (1964 : 195), "personality may be said to

encompass the characteristic traits and patterns of adjustment of the person

in his inter-relationship with others and his environment".

Numerous theories of personality have been advanced by psychologists,

psychiatrists and others concerned with individual behaviour. EacG of the

major theories of personality approaches the subject from a slightly

different viewpoint.

2.10 DECISION-MAKING: THE SOCIOLOGY PERSPECTIVES

Decision making in organisation of all type is accomplished as a matter of course

in groups such as teams, task forces and committees. In fact, in most

organisations of any size at all, it is rather unusual to find decisions made

regularly by one individual.

There are various reasons why group decision-making has become prevalent in

formal organisations. For one thing, the increasing complexity of the managerial

process, which requires more specialised knowledge and expertise than is usually

possessed by one individual, call for a collection approach to decision making.

Further, the need to gain general acceptance of a choice once made and

implemented by those units and individuals directly and indirectly effected by its

consequences requires participation throughout the entire integrated decision

making process.

Group decision making has many ramifications not present in a choice made by

one person. Groups must reach a consensus by fostering, open communication

among the members. It is this process of interaction in which different

personality and divergent view points must somehow blend to produce a

consensual choice, that primarily differentiates a unilateral decision from one

based on the collective judgment and consent of those who must transform the

choice into an operational reality.

However, subjects of particular significance include:

- the profile of a group;

- major theories of group behaviour;

- group norms and conformity;

- group structure;

- group communication and

- the characteristics of effective groups. Comprehension of these key

subjects will facilitate an understanding of the variables involved in

arriving at a consensual choice as well as some of the differences

between individual and group decision making.

2.1 1 ECHNIQUES FOR DECISION MAKING

There are many quantitative techniques available to assist the decision maker in

the integrated process of arriving at a choice that meets his objectives. Such

techniques may, depending upon the training and inclination of the decision

maker, be applied at any point in the process. However, most quantitative tools

are especially applicable in the comparison and evaluation of alternatives. In the

words of Emory .N. et., a1 (198 :115), "The contribution of quantitative

techniques to decision making is largely in the appraisal step, the analysis of

decision possibilities. Quantitative techniques are unable to suggest hypothesis or

to define problems or to suggest alternatives. These abilities remain in the

domain of personality, experience and creativity. But once alternatives have been

defined, these techniques can be powerful tools for malting quite and accurate

appraisal.

The techniques presented in this research can, if used judiciously by the decision

maker, reduce the uncertainty associated with the outcomes of the alternatives

undergoing comparison and evaluation. In this way, the choice is more likely to

result in the attainment of the original objective.

2.1 1.1 PROBABILITY THEORY b

The concept of probability plays an important role in many problems of

everyday life, in business, in science and particularly, in decision malting.

Probability theory according to David .W. et., a1 (1967 : 75) deals with

events of a special kind called random events, whose outcomes are affected

by chance. Frequently, this situation occurs when a large number of causes

contribute to produce the final outcome, the event in question.

Probability theory deals with the conclusions that can be obtained from

reasoning about such events. The basic concept is called a PROBABILITY

OF THE OUTCOME. The probability of the outcome is, most simply, the

percentage of times in which a particular outcome would occur if a given

event were repeated a great many times. For example, we can say that the

probability of the outcome of heads in flipping a coin is 0.5, because a

large number of tosses will produce heads about one half the time.

The role played by probability in decision making is that of a substitute for

certainty. There are few, if any, occasions in which the decision maker has

complete information related to a particular choice. In most cases, he must

generalise from experience and samples using relative frequencies of

occurrence or in the absence of partial information, his own best judgment.

Presumably, the resultant choice will produce an outcome more likely to

meet the objective at hand.

2.1 1.2 UTILITY THEORY:

In this context, utility is defined as want - satisfying power. According to

the principles of utility theory, the rationale decision maker calculates

deliberately and chooses consistently, always with a view toward

maximizing his utility. According to Donald S. (1963 : 45),, "The

Maximization of utility means that the decision maker makes those choices

that will result in his having the greatest possible amount of satisfaction.

The consistency of this choice pattern rules out vacillating and erratic

behaviour".

Given the propensity of the decision maker for maximising his utility, he

simply selects from among the available alternatives the one that will meet

his continuous objective. More especially, in the absence of perfect

information, but with some limited knowledge of likely outcomes, the

decision maker must assume risk, which is made more acceptable by the

assignment of subjective probabilities to the state of nature, any one of

which could prevail with the selection of a given alternative.

2.1 1.3 EXPECTED VALUE

The concept of expected value permits the decision maker to place a

monetary value (or conceivably, some other value) on the positive and

negative consequences likely to result from the selection of a particular

course of actions. If the choice were between only two alternatives, the

decision maker would, if he were guide solely by expected value, choose

the alternative that produces the highest positive value. In short, the

expected value for a particular alternative is obtained by weighing its

possible outcomes by the probability of achieving the alternative and

adding the products derived from the weighing process.

2.1 1.4 DECISION TREES

Decision trees are another useful framework to assist the rational decision

maker in arriving at a satisQing choice. A decision tree is a means of

displaying the anatomy of a given decision. It consists of a series qf nodes

and branches. Alternatives courses of action are represented by main

branch, which in turn have subsidiary branches for related chance events

that occur in chronological sequences.

In short, the tree diagrams, the path that leads to possible consequences. In

addition to the structure of the alternatives, the tree usually displays the

payoffs for each path and the probabilities for the various chances event.

2.11.5 GAME THEORY

Game Theory is a technique for making decisions in situations of conflict.

It is appropriate for problems where the decision maker is not in complete

control of the factors influencing the outcome. A game problem involves

individuals or organisation with different goals or objectives whose fates

are interlocked.

Martin S. (1955 : 40) viewed: "the problem of game theory is more

difficult than that of simple maximization of a given outcome. The

decision maker is very much concerned with how to achieve as much as

possible, but must take into account that there are others whose objectives

are different and whose behaviour has an effect on all active participants.

In essence, a decision maker in a game is confronted with a cross-purposes

maximization problem that is, he must plan for the best possible return

while taking into account the possible actions of his opponent.

2.12 VALUES OF DECISION MAKING

The personal values of the decision maker and the values of the organisation of

which he is a part exert an influence on the process of choices. In the setting of

objectives, the values of the organisation must be considered by the d ~ i s i o n

maker. The search will reflect the personal values of the decision maker as he

attempts to relate the alternatives uncovered to the organisational objectives.

Once the search is completed, the personal values of the maker conditioned by

the values implicit in the organisational objectives influence the comparison and

evaluation of alternatives. And, of course, at the moment of choice, this same

combination of choice, the implementation phase is initiated, and in the process

of executing the decision, the values of the organisation usually take precedence

over those of the decision makers. Finally, in the follow up and control phase of

the decision making process, the organisational values are reflected in the

standards that provide the basis for measurement and corrective action.

At all points, in the integrated process of decision making, the personal values of

the decision maker may conflict with the values of the organisation. In the

presence of such conflict, the decision maker must frequently accommodate or

subordinate his personal values to the organisational objectives. This is the case

because the manager is assumed to personify the organisation, and for him a

satisfying choice, made within the bounds of nationality, should be directed

forward furthering the purpose of the organisation.

2.13 DECISION-MAKING AND CREATIVE PROBLEM SOLVING

Almost all managers are problem solver. But this does not mean that all of them

are good problem solvers or even for that matter, all managers know how to solve

problem systematically. Most daily problem solving is done in a haphazard in

alternative basis. When a difficulty arises, the manager looks around for an

answer, jumps at the first workable solution to come along, and move on to other

things. In a primitive sense, this sequence of event qualifies as a problem-solving

process and it works quite well for informal daily activities. 6

But in the word of management, a more systematic problem-solving process in

required for tackling difficult and unfamiliar non-programmed decision

situations. In the context of management, problem solving is the conscious

process of bringing the actual situation closer to the desired situation. Managerial

problem solving consists of a four-step sequence.

- identifying the problem;

- generating alternatives solutions;

- selecting a solution and

- implementing and evaluating the solution.

2.13.1 IDENTIFYING THE PROBLEM

As strange as it may seem, the most common problem-solving difficulty

lies in the identification of problems. Busy managers have the tendency to

rush into generating and selecting alternative solutions before they have

actually isolated and understood the really problems. According to Peter

Drucker (1972 : 35) a respected management scholar, "the most common

source of mistakes in management decisions is emphasised on finding the

right answers rather than the right questions". As a problem-finders,

managers should probe for the right questions, only then can the right

answers be found.

2.13.2 GENERATING ALTERNATIVE SOLUTIONS

After the problem and its most probable cause have been identified,

attention turns to generating alternative solutions. This is the creative step

in problem-solving. Unfortunately, as the following statement points out,

creativity is often short-changed. The nature according to Robert K. (1988

: 243) "The natural response to a problem seems to try to rid i; of by

finding an answer - often taking the first answer that occurs and pursuing

it because of one's reluctance to spend the time and mental effort needed to

conjure up a rich store house of alternatives from which to choose";

It tales time, patience and practice to become a good generator of

alternative solution: a flexible combination to analysis and intuition is

helpful. A good sense of humour aid the process as well.

2.13.3 SELECTING A SOLUTION

Generally, alternative solutions should be screened for the most appealing

balance of effectiveness and efficiency in view of relevant constraints and

intangibles. Russell Achol, (964: 132) a specialist in managerial problem-

solving, contends that three things can be done about problems: they can

be resolved, solved or dissolved".

2.13.4 IMPLEMENTING AND EVALUATING THE SOLUTION

Time is the true text of any solution. Until a particular solution has had

time to prove its worth, the manager can rely only on his or her judgement

concerning its effectiveness and efficiency. Ideally, the solution selected

will completely eliminate the difference between the actual and the desired

in an efficient and timely manner.

2.14 DECISION MAKING: MANAGERIAL PERSPECTIVES

There are almost as many perspectives on decision making as there are

individuals involved in the process. If in a particular choice happens to differ

greatly from the values and interests of an individual or group affectsd by its

consequences, it is labelled non-rational. In other instances, a decision maker

may proceed on the nayve assumption that he possesses perfect information, in

which case he views alternatives with complete certainty regarding the outcome.

Often this view is conditioned heavily by the propensity of the decision maker for

accepting or avoiding risk as well as ingrained perceptual biases below his

threshold of awareness.

According to Harold Koontz (1972 : 40) "Others view decision making as being

subsumed under the larger process of management, which is characterised mainly

by the functions of planning, organising, staffing, directing and controlling". Few

academicians or practitioners perceive decision making as being integral to the

entire process of management and as comprising a vital link between the several

parts of that process in particular, the planning and control functions.

The new perspectives set forth in this research are intended to remove much of

the mysticism and confusion surrounding the making of decisions and to provide

meaningful frame works within which rational decisions makers can pursue

choices in the open decision model.

2.14.1 THE INTEGRATIVE PERSPECTIVE

Decision making is a process that pervades all of the functions of the

manager. From the formulation of plan, which provides a frame work for

making choices, to the development and activation of controls, which

ensure the relation from among relevant alternatives.

Much of this decision-making behaviour is second nature to the

professional manager. He does it without consciously proceeding frgm one

step to another. His actions are goal oriented; his thought processes are

generally purposeful and rational. Still, as he proceeds towards making

choices and the eventual implementation of that choices, he goes through

an integrated series of actions defined here as the decision making process.

2.14.2 THE INTER DISCIPLINARY PERSPECTIVE

Decision making draws liberally upon the behaviour sciences and the

quantitative disciplines. The integration of these sciences and disciplines

occurs throughout the several stages in the decision-making process. While

it is difficult to assign a weight to the relative significance of each body of

knowledge, the behavioural sciences are more widely applicable

throughout the decision-making process. For example, quantitative

techniques apply mainly to the comparison and evaluation of alternatives.

But the Psychological factors-personality, propensity for risk acceptance or

avoidance, perception, and the subconscious mind influence the behaviour

of the decision maker from the setting of the objective to the attainment of

the final outcome. When combined with the values of the decision maker

and the ethical interest in the situation, these psychological factors make

the process of choice considerably more complex than is customarily

assumed.

2.14.3 THE INTERLOCKING PERSPECTIVE

The term interlock according to Webster's: Dictionary (1969 : 442) means

to unite or engage in a way that motion in any one part of a system will be

constrained by some other part of the system. It describes perfectly the

concept of bounded rationality. In bounded rationality, the decision maker

is constrained from obtaining maximised results by the boundaries of

imperfect information, time and cost constraints, and human cognitive

limitations.

Further constrained by the objectives of the organisation, because as a

manager, he is expected to behave in a way that will result in the

attainment of these objectives, that is to behave rationally. In fulfilling the

purposes of the organisation, the manager is also expected to make

decisions that will not work to the perceived disadvantage of any of the

several exogenous forces that make up the environment within which the

organisation fimctions.

2.14.4 THE INTERRELATIONAL PERSPECTIVE

At the level of the organisation decision making is synonymous with the

process of management. From setting objectives, through their

incorporation unto the plan concurrent with the establishment of the

position requirements in the organisation structure, stating and directing

the organisation toward its objectives within the limits of established

controls, the manager is continuously involved in making decisions.

Although, decision malting occur regularly in all of the functions of the

manager, interrelationship of the total process of management with the

decision-making process is most apparent in the context of planning and

control within the formal organisation.

2.15 THE NIGERIAN AGRICULTURAL AND CO-OPERATIVE BANK

The need for a national agricultural bank to channel credit to the agricultural

sector has been with Nigeria for several year. In 1966, a feasibility study was

carried out by a joint team of World Banlt and USAID experts. But the project

could not be implemented due to the crisis in the country. At the requesf from the

Federal Government, a fresh study was carried out by the World Bank in 1969.

the resulting Stoneham Report recommended the establishment of an agricultural

credit Bank. In 1973, the Nigerian Agricultural Banlt was inaugurated. Its

authorised and paid up capital of Nl million was increased to N2 million in 1975

and wholly subscribed by the Federal Government which also appoints the

members of the Board of Directors.

The primary objective of the bank is to increase the level and quality of

agricultural production, including horticulture, poultry farming, pig breeding,

fisheries, as well as storage and marketing of such production in Nigeria. The

objective is to be attained within the frame work of approved plans of the federal

and state government.

The Banlt pursued its purpose by granting loans to state or state institutions for

on-leading to farmers or corporate bodies guaranteed by a state. It also extends

loans to individual farmers, co-operative societies or other bodies, if it is satisfied

with the viability of the scheme and the adequacy of the security to cover such

loans.

2.16 SCOPE OF ACTIVITIES AND LENDING POLICY

The bank's activities extend to all types of agricultural enterprise. Thus loan

facilities are provided to finance viable farm projects for terms ranging from

under two to fifteen years. Initially, emphasis was placed on production rather

than processing but the Bank now finances integrated ago-based projects.

The basic principle that influences the bank's lending project and consultancy

department and the availability of adequate security. To attract the bank'gfunds,

the project finance must be adjudged commercially viable with significant returns

on investment. The projects must generate adequate hnds to repay the loans

according to an agreed repayment value to the country and relate to planned

national priorities.

The bank is exempted from the Bank's Decree of 1969. Thus it is not required to

observed the provisions relating to minimum holdings of cash and specified

liquid assets, special deposits and stabilisation securities, interest rate structure

and the restrictions to land not more than a third of the sum of paid up capital and

REFERENCES

Billy J. Hodge et. A1 (1970)

Blair J. Kolass (1969)

Charles 2. Wilson (et., al)

David W. Miller et., a1 (1 967)

Donald Stevenson (1 963)

Fremont A. Shull(1970)

Harrison E. Frank (1975)

Harold Koontz et., a1 (1 972)

Joseph W. McGuire (1964)

Martin Shubik,

Peter . F. Druclter (1 972)

Management and Organisatiod Behaviour. New - York: Wiley,

Introduction to Behavioural Science for Business New - York: Wiley .

"Basic Frame works for Decision" Journal of the academy of Management August 1962, Vol. 2, No 1.

The Structure of Human Decisions. B

New Jersey: Prentic Hall Englewood Cliff.

Price theory and its uses Boston: Houghton Mifflin, Company

Organisation Decision Making. New - York: McGraw Hill Publishing Comp

The Managerial Decision malting process New York: Houghton Miffin Company,

Principles of Management: An Analysis of management functions. New York: McGraw-Hill Publishing Company

Theories of business Behaviour New - York: Englewood Cliffs, Prentic - Hall,

"The Uses of Games Theory in Manage- ment Science," Journal of Management. Ext. 1995 Vol.1 No.1.

The Objectives of a Business in Management New Yorlt McGraw-Hill Publishing Company

Robert Kreitiner (1 998) Management: Principles and Practice New - Yorlc: Houghton Miflin Company.

Takott Parsons (1 95 1) Toward a General Theory of Action. New - York: Harper and Row.

Uzoagu, W.O. (1981) Money and banking. Enugu: Fourth Dimension Publishing Co., Ltd.

Wayne Monday .R. (1 980) Mana~ement: Conce and skills, Massachusetts: Allyn and Bacon.

William Emory et., a1 (1 968) Making Management Decisions Boston: Houghton Mifflin Company ,

Williams G. Scott (1967) Organisation Theory: A Behavioural Analysis for Management. Home wood, 111, London.

Wilmar .F. Bernthal, "Value Perspectives in Management -

Decision". Journal of the academy of Management. Dec 1962, Vol. 111, No. 4.

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 INTRODUCTION

This is the background against which the findings, recommendations and

conclusions are based.

This phase of the research consists therefore of the method and approach of

collating information and data for the research purpose. As such much @ttention

shall be given to whom to study, what to observe, when to observe and how to

collect the relevant data.

3.2. RESEARCH DESIGN

The major research instruments used in the conduction of this research work were

questionnaires and interviews. The questionnaires were structured because of the

simple fact that respondents feel more at home with them than with that require

them to indite their responses.

Since the questionnaires were designed to elicit information from its members of

staff randomly selected from each department the questionnaire was thus

categorised into three sections:

1. The demographic: This comprises questions that relate to age, sex and

marital status.

2. The Administrative: This comprises questions that relate to name.

3. The third category consists of questions relating to the problems of the

study aimed at providing answers to some of the research questions.

The questions were unambiguous and easy to answer enough spaces

provided for open-ended questions.

Opportunistic interviews were also conducted usually respondents shy away from

interview sometimes for confidence sake and other times for fear of display of

ignorance.

Nevertheless, these two options have over the years proved most preferable,

especially the questionnaire. Reasons range from convenience, confidence and

availability of option to choose from flexibility in response time. As a result,

much concentration was placed on questionnaires as the main medium of

eliciting information from respondents.

In addition to both questionnaires and interview, the researcher will also use

observation; here the data technique was designed to provide data that fits

carefully pre-determined categories that researcher have desgroted. The

behavioural observation was specific, systematic and relate to important aspect of

the process under study.

The observation was carried out to have a self impression of the way members of

staff were being felt as regards immediate motivation and demonstration. The

observation was carried out in each of the selected departments.

3.3 SOURCES OF DATA

Data are classified as either primary or secondary. This classification is based on

the two possible sources of data which are primary and secondary sources.

However, both primary and secondary sources are explored to adequately gather

data for the study.

3.3.1 PRIMARY SOURCE

Under this Primary source, questionnaires, interviews and observations

were used to obtain information from samples selected from the defined

population. B

3.3.2 SECONDARY SOURCE

Amongst the secondary data, sources are from the researchers work

textbooks, articles, magazines, new bulletin and other publications of the

schools in respect of the research theme.

3.4 THE POPULATION

The population for this study is all the member of staff of all the organisation in

the Nigeria economy that involved in banking industry.

However, the scope is limited to the members of staff of All States Trust Bank

and Nigerian Agricultural and Co-operative Bank.

3.5 SAMPLE & SIZE DETERMINATION

In order to obtain an external validity and to make the study of the problems

which otherwise could not be undertaken due to the limitations of financial

resources, time and other academic and social demand; area sampling techniques

was used to group the population into five settlements or chisters. Each cluster

represents a selected department of the companies in a designed area. The sample

size is two hundred and fifty members of staff.

3.6 SAMPLING PLAN

Having determined the sample size to be two hundred and fifty, the researcher

employed the principle of landowners to actually proportionate the selected

samples in each sub-population represented by each of this department.

This gave room for every member an equal opportunity of being selected. Thus

fifty (50) staff were randomly selected from each of the five departments, hence, b

this confirmed the two hundred and fifty sample size earlier determined.

3.7 TOOLS FOR DATA ANALYSIS

In analysis the data collected so far as regards this research work, the researcher

resolved to amply two statistical methods. These statistical methods are:

- The quote sampling method and

- Chi-square method, respectively. The researcher used the chi-square

method so as to actually determine the degree of reductibility of the

data collected.

Asilta N.M (1 991) Research Methodology in Behavioural science.

Longman (Nig) Plc., Nigeria.

Lindgen, H.C. (1973) j Library of Congress Second edition, 1973.

The above table shows the distribution of the questionnaires administered and

respondents' rate for the study.

The percentage response (82%) is sufficiently high to validate a reasonable

conclusion drawn on the questionnaires.

4.2. METHOD OF DATA ANALYSIS

In this research work, the researcher tried as much as possible to blend analytical

interpretation with descriptive explanations so as to ensure that the result of the

study objective of the study is achieved and in the same vein for the result to be

fully understood. b

In line with the above and for the purpose of clarity and conference, some

questions raised were separately analysed and interpreted, while some were

jointly analysed and interpreted.

TABLE 2: AGE GROUP

Percentage (%) Particulars

18 - 25 years

26 - 3 0 years

3 1 - 40 years

4 1 and above

Total

From the above table 2, 13.17% of the total respondents was between 18 and 25

years of age, 25.85% was between 26 and 30 years of age, 29.27% of the total

respondents accounted for ages between 3 1 and 40 years while 3 1.71 % was 41

years and above.

Respondents

27

53

60

6 5

205

TABLE 3: SEX OF RESPONDENTS

Table 3 above reflected the sex patterns of the respondents. However, in the said

table, it is seen that 72.68% of the respondents were male, while 27.4% were

female. This is clear indication that more males were involved in the operations

of the banks. b

Particulars

Male

Female

Total

TABLE 4. MARITAL STATUS OF RESPONDENTS

Particulars

Respondents

149

56

205

Married

Single

Widow

Percentage (%)

72.68

27.32

100

Respondents Percentage (%)

Total I I

205 100

78.54% of the total respondents were married as reflected in table 4 above,

18.54% of the respondents were yet to marry while 2.92% were widow. What

this meant, going by the age bracket analysed in table 2 above was that more

responsible, matured and careful people accounted for the greater part of the

workforce. It is however generally believed that married people have the traits of

governance as evident in their respective homes.

NCE, OND, ATS

ACA, HND, BSc, BED, BA

TABLE 5: QUALIFICATIONS OF RESPONDENTS

I MSc, MED, MBA I 60 I 29.27

Respondents

10

Percentage (%)

4.88

Table 5 depicted the categories of qualification obtained by the resppndents.

I I

From the table, 4.88% of the respondents were WAECIGCE O'Level holders,

Total

20.98% were holders of NCE, OND and ATS, 43.44% were holders of

professional certificates such as institute of Chartered Accounts of Nigeria, First

degree and Higher National Diploma respectively.

However, 29.29% of the total respondents were holders of Masters Degree in

addition to their first degree, while 2.43% were holders of higher degrees such as

Doctor of Philosophy. This development, no doubt, would be considered to be

beneficial to the focal organisations.

TABLE 6: LENGTH OF SERVICES

205 100

Particulars

1 - 5 years

6 - 10 years

11 - 15 years

16 - 20 years

21 and above

Total

Respondents

0 8

35

103

52

07

205

Percentage (%)

3.90

17.07

50.24

25.37

3.42

100

The above table 6 shows that 3.90% of the total respondents have been in the

services of the focal banks between 1 year to 5 years, 17.07% were in the

services between 6 years and 10 years, between 1 1 years and 15 years, 50.24% of

the total respondents have put in their services, while 25.37% and 3.42%

ordinarily have served the focal banks between 16 years and 20 years and 21

years and above respectively.

From the above, it is obvious that more experienced labour force of the focal

banks formed a higher percentage of the respondents thereby adding more

credence to their positions as regards their responses to the questions put across

to them. b

TABLE 7: PRESENT POSITION OF RESPONDENTS

I Particulars

Clerical Level

Supervisory Level

Middle Mgt Level

Top Mgt Level

Total

Respondents

15

40

90

60

Percentage (%)

Table 7 shown a gradual increase of percentage fiom the clerical level to the

middle management level and a subsequent decrease as in the top management

level. The decrease in the top level management as in the response rate would

have be as a result of the numerical strength of staffers that occupied the position.

Nevertheless, 7.32% of the respondents formed the clerical level, supervisory

level accounted for 19.5 1 %, while the middle management level accounted for

43.90% and the top management level equally accounted for 29.27% of the total

respondents.

This undoubtedly shows a good pattern as the top management level officers

were moving towards the retirement or old age, there are already "well

grounded" middle management level officers that would always step into their

shoes and also the middle management level as they will be moving up via

promotion.

TABLE 8: DECISION-MAKING PROCESS IN THE BANK IS EXPRESSED PRIMARILY THROUGH THE BASIC FUNCTIONS OF THE MANAGER SUCH @

AS PLANNING, ORGANISING, STAFFING, DIRECTING AND CONTROLLING.

Table 8 above reflected the position of the respondents as in the composition of

the focal banks decision-making process. However, fiom the said table, it was

crystal clear that both Nigerian Agricultural and Co-operative Bank as well as All

States Trust Bank Plcys composition of Decision-malting process are premised on

the basic functions of manager. These basic functions are:

Particulars

Human Resources

Marketing

Customers Services

Finance & Accounts

Credit and Loans

Total

Percentage %

Total Number of

Respondents

47

44

4 5

38

31

205

100%

Yes

4 1

39

38

36

30

184

89.76%

No

04

-

0 5

02

0 1

12

5.85%

Neutral

02

05

02

- -

09

4.39%

- Planning

- Staffing

- Directing and

- Controlling.

This position was maintained by 89.76% of the total respondents as reflected in

the table above. However, 5.85% opined contrarily, while 4.39% of the total

respondents remained neutral as regards the issue at stake.

TABLE 9: THE SCOPE OF THE DECISION-MAKING PROCESS EXTENDS BEYOND THE MANAGERIAL PROCESS.

Particulars

Human Resources

Marketing

Customers Services

Finance & Accounts

Credit and Loans

Total Number of

Respondents

Total

Yes

4 3

41

43

34

30

191 205

Percentage %

Table 9 above reflected the position of the respondents on the issue that the scope

of the decision-malting process extends beyond the managerial process. As

reflected above, 93.17% of the total respondents opined that the scope of the

decision-making process ordinarily extends beyond the managerial process,

4.88% however, disagreed with this position, while 1.95% remained neutral

about the case.

100%

TABLE 10: THE BANKS DECISION-MAKING PROCESS IS DYNAMIC RATHER THAN RIGIDITY.

--- Particulars

Respondents

Admin. & Human Resources

Customers' Services

Finance & Accounts

Credit & Loans

Marketing -

Total

Percentage % 100%

Yes Neutral "-

From the table shown above, the respondents reflection on the banks decision-

making process indicates that the decision-making process of the focal banks

were so dynamic as this position was maintained by 91.71% of the total

respondents.

However, 4.39% and 3.90% opined contrarily as well as being neutral

respectively.

TABLE 11: THE FOLLOWING ENVIRONMENTAL FACTORS, ECONOMICAL, TECHNOLOGICAL CULTURALISOCIAL AND POLITICAL INFLUENCE THE DECISION-MAKING PROCESS.

Particulars

Admin. & Human Resources

Marketing

Customers' Services

Finance & Accounts

Credit & Loans

Total

Percentage % / 100% 1 94.63% 1 3.42% 1 1.95%

No

02

0 1

02

01

0 1

07

From table 1 1 above, 94.63% of the respondents agreed that the environmental

factors such as economical, technological, cultural/social and political actually

influence the decision-making process of the focal banks. In contrary to this

agreement however, 3.42% of the total respondents disagreed, while 1.95%

remained neutral about the issue.

Total Number of

Respondents

47

44

45

38

31

205

Neutral

0 1

-

0 1

0 1

0 1

'04

Yes

44

43

42

36

29

194

TABLE 12: DOES MANAGEMENT PERCEPTION AGREE WITH THAT OF WORKERS ON DECISION-MAKING PROCESS OF YOUR BANK?

-- Particulars

Admin. & Human Resources

Marketing

Customers' Services

Finance & Accounts

Credit & Loans

Percentage % I 100% 1 90.73% 1 6.83% ( 2.44%

Total

I I I I I 'able 12 shows the agreement between the management perception and that of

Total Number of

Respondents

47

44

45

38

31

the workers as in decision-making process of the focal banks.

In the said table, a whopping of 90.73% of the total respondents opined that the

management perception agreed with that of the workers on decision-making

process of the focal banks. However, 6.83% maintained a contrary position on

the issue, while 2.44% decided to remain silent about the discussion on hand.

I

205 1 186 I

Yes

46

38

40

36

26

14

No

0 1

04

05

0 1

0 3

05

Neutral

- 02

00

0 1

62

TABLE 13: DOES EFFECTIVE DECISION-MAKING PROCESS HAS A POSITIVE CORRELATION WITH THE LEVEL OF PRODUCTIVITY?

Total 1 205 1 199

Particulars

Admin. & Human Resources

Marketing .

Customers' Services

Finance & Accounts

Credit & Loans

Percentage % 1 100% 1 97.07% 1 1.95% 1 0.98% I

Table 13 above reflected the position of the respondents as in correlation that

would ordinarily exist between effective decision-making process and the

attainment of the focal banks' productivity level.

From the table, it was crystal clear that effective decision-making process have a

positive correlation with the level of the focal banks' productivity as this position

was taken by 97.07% of the total respondents, 1.95% as well as 0.98% however,

maintained an opposite position as well as being neutral respectively.

Total Number of

Respondents

47

44

45

38

3 1

Yes

46

43

43

37

30

TABLE 14: DOES EFFECTIVE DECISION-MAKING PROCESS HAS ANY IMPACT ON THE ATTAINMENT OF THE ORGANISATIONAL GOALS?

.- --- Particulars

Admin. & Human Resources

Marketing -

Customers' Services

Credit & Loans

Finance & Accounts

Total Number of

Respondents

47

44

4 5

31

38

Yes

Percentage % 1 100%

I I I

Neutral

Total

'Table 14 above showed that effective decision-making process has an impact on

the attainment of the focal banks' goals. This position was taken by 91.71% of

the total respondents, 5.85% of the respondents hardly see any impact that

effective decision-making process has on the attainment of the focal banks goals,

hence, this percentage (5.85%) maintained a contrary position, while 2.44%

remained silent on the issue.

205 1 1 8 8 / 12

TABLE 15: DO YOU THINK THAT YOUR ORGANISATION HAS SOUND DECISION-MAKING PROCESS?

Particulars

Admin. & Human Resources

Marketing

Customers' Services

Finance & Accounts

Credit & Loans

Total

Percentage %

Table 15 above reflected the opinion of all the respondents as in whether or not

the focal banks have sound and dynamic decision-making process.

Total Number of

Respondents

Premised on the opinion of the total respondents, it was crystal clear that the ,

focal banks experience sound and dynamic decision-making as this was evident

as in the percentage 97.56% of the respondents that tick yes, while 1.95% tick no,

representing an opposite position and 0.49% of the total respondents remained

silence about the discussion on hand.

Yes No Neutral

TABLE 16: THE PERSONAL VALUES OF THE DECISION MAKERS AS WELL AS THAT OF THE BANK CAN EXERT AN INFLUENCE ON THE PROCESS OF CHOICES.

Table 16 above reflected the views of the respondents as in the personal values of

the decision makers cum that of the bank as regards the exertion of an influence I

on the process of choice.

In the said table, 88.29% of the total respondents opined that the personal values

of the decision makers as well as that of the bank can exert an influence on the

process of choice, while 10.25% said that the personal values of the decision

makers as well as that of the bank cannot exert an influence on the process of

choices, while 1.46% of the total respondents remained silence about the matter.

Particulars 1 Total Number of

Percentage %

Yes

42

40

44

30

2 5

180

Admin. & Human Resources

Marketing

Customers' Services

Finance & Accounts

Credit & Loans

Total

Respondents

47

44

45

38

31

205

100%

No

0 5

0 3

0 1

0 6

06

21

Neutral

- 1

- 02

- I . II

03

88.29% 10.25% 1.46%

TABLE 17: DOES MEMBERS OF STAFF AGREE WITH THE DECISION MAKING PROCESS OF THE FOCAL BANKS?

Particulars

Admin. & Human Resources

Marketing

Customers' Services

Finance & Accounts

Credit & Loans

Total Number of

Respondents

47

44

Percentage % I 100%

1

Yes

4 3

42

41

36

25

Total

Neutral

0 1

1

- 1

02

205

Table 17 above reflected the agreement of members of staff of the focal banks

with whatever decision malting process in operations.

From the said table, 91.22% of the total respondents actually agreed on the fact

that members of staff of the focal banks are in line with the decision-making

process, 6.34% of the respondents however disagreed while 2.44% remain

silence about the issue.

USE OF STATISTICAL FORMULA FOR TESTING HYPOTHESIS

Having analysed the area of bio-data as well as some other questions put forward

to the respondents through simple percentage, the researcher has equally use

statistical formula as in "Chi-square" X2 in analyzing and interpreting responses

that were connected with the main variables of the hypothesis.

At 5% level of significance, X2 was used in ascertaining the validity reliability or

otherwise to test whether or not there is any association between one set of

variable and another.

Chi-square (X2) by definition is:

X2 = (0 - E)2

E

Where 0 = Observed Frequencies

E = Expected Frequencies

The degree of freedom (df) = (r - 1) (c - 1)

Where r = Number of row

C = Number of column

Ho: stands for Null hypothesis

H1: stands for Alternative hypothesis

In order to test.

Null hypothesis (Ho): There is association between the effective decision-making

process and level of productivity. I

Alternative hypothesis (Hl): There is no association between effective decision- I

making process and level of productivity.

Table 18: Observed Frequencies.

Questions

12

13

15

Total

No

14

04

12

30

Yes

186

199

188

573

Neutral

05

02

0 5

12

Total

205

205

205

615

Computing the expected frequencies

Yes No Neutral

Expected Value (e) = 205 x 573 205 x 30 205 x 12

61 5 615 615

e = 191 10 4

Substituting into the formulae

X2 = (0-E)'

Row @ = 3: Column 0 = 3

Degree of Freedom (d.f) = (R- 1) (C- 1)

= (3-1)(3-1)

= 2 x 2 = 4

From the table,

V = 4 at 5% significance level

= 9.49

xt = 9.49

x2 = 7.61

Decision

Since X' is greater than x2, the alternative hypothesis is respected and the Null

hypothesis is accepted. Therefore, there is association between the effective

decision-making process and level of productivity. fi

In order to test another hypothesis; the environment of the focal banks are

conducive for effective decision-making process.

Null hypothesis (Ho): The Focal banks environment are conducive for effective

decision-making process.

Alternative hypothesis (HI): The focal banks environments are not conducive for

effective decision-malting process.

Questions 9,10 and 12 were put into x2 test as follows:

Observed frequencies:

Questions

12

Total

-- Yes

191

188

186

565

Total

205

205

205

615

No

10

09

14

3 3

Neutral

04

0 8

0 5

17

Computing the expected frequencies

Yes No Neutral

Expected value (e) 205 x 565 205 x 33 205 x 17

61 5 61 5 61 5

e 188.33 11 5.67

Substituting into the formulae

X ~ = ~ O - E ) ~

E

(191 - 1 88.33)2 + (188 - 188.33)~ + (186 - 188.33)~

188.33 188.33 188.33

x2 = 0.0378532 + 0.005782 + 0.0288265 + 0.090909

+ 0.3636363 + 0.8181818 + 0.4918694 + 0.9574779 + 0.079171

x2 = 2.8737071

ROW 8 = 3:ColumnO = 3

Degree of Freedom (d. f) (R - 1) (C - 1)

= (3- 1) (3 - 1)

= 2 x 2

= 4

From the table V = 4 at 5%

Significance level = 9.49

x t = 9.49

X2 = 2.8737071

Decision

Since X* is less than x t , the alternative hypothesis (HI) is rejected and Null

hypothesis (Ho) is accepted. Therefore, the focal banks environments are

conducive for effective decision-making process.

b

CHAPTER FIVE

SUMMARY AND CONCLUSIONS

SUMMARY

The Chapter Five of this research work is devoted to the summary, conclusions

and recommendations.

The Chapter One of the research work examined the introductory aspect of the

subject of Decision malting process in development banking.

The study recognizes decision-making process as a conscious and human process

that involves both individual and social phenomena which is ordinarily based

upon factual and value premises that iiicludes a choice of one behavioural activity

from among one or more alternatives within the intention of moving forward

some desired state of affairs.

The Chapter equally highlights the statement of the problem of the research

work, the objectives of the study, the research questions, the research hypotheses,

the limitation as well as the significance of the study and references were

contained in the chapter one of the research work.

The chapter two of the research work examines the comments as in decision

malting process from different scholars.

The chapter examines decision theory, the scope of decision-making as well as

the basic characteristics of decision-making. Chapter two equally look into the

structure of the process setting the organisational objectives as well as looking

into the decision-making environmental work. The chapter equally examines

decision-making process as in the sociology perspectives, techniques for

Decision-making, the probability theory, the utility theory, the values of Decision

making, the Decision making and creative problem solving as well as the

references.

The Chapter three of the research work focussed on the methodological aspect of

the study. The methodological spells out in precise and concise form themethod

for collecting and analysing data for the study.

Questionnaire method of survey research was employed in collecting data. A

total of two hundred and fifty (250) were distributed to the respondents of which

two hundred and five (205) were returned. The two hundred and fifty (250)

however formed the sample size of the data presentation and analysis of the

study. The high response rate of the questionnaire is however attributed to the

level of interest in the research work theme as well as the personal follow-up.

Aside from the above, the research chapter equally highlighted the research

design, the sources of data, the population, the tools for data analysis, the re-

statement of the research hypotheses as well as references.

The chapter four of the project work was devoted to the presentation analysis and

interpretation of the gathered data. The data analysis and interpretation was based

on two hundred and five (205) completed and returned questionnaires.

Below are the findings from the analysis:

1 . The analysis revealed that Decision making process as presently obtained in

the focal banks is fimdamentally expressed through the basic functions of the

manager as in planning, organising, staffing, directing and controlling.

2 . That the scope of the decision-making process is ordinarily extended beyond

the managerial process. This obviously confirms the assertion that for any

organization to survive and grow in the present operating environment, the

need for such organization to ensure that its decision-making process is not

static cannot be overemphasised. Hence, the decision-making process of the

focal banks is so dynamic.

b

3. Premised on the fact that the decision-making process of the focal banks are

so dynamic, the study actually revealed such environmental factors that

always have an impact on the decision making process of the focal banks.

Accordingly, these factors are:

Economic

Technology,

Culture/Social and political.

4. The study equally revealed the fact that the management perception agreed

with that of the workers on decision-making process of the focal banks. This

fact is a confirmation of the fact that the focal banks were able to attain their

planned productivity level at a defined period of time.

5 . The research work revealed that the personal values of the decision makers

as well as that of the banks actually exert an influence on the process of

choices. This assertion no doubt would have influenced the members of staff

of the focal banks to actually agree with the decision making process.

CONCLUSION

The analysis of the questionnaires have raised some important and interesting

issues. It has reinforced the arguments that effective decision-making process

ordinarily enhances organizational effectiveness and at the same time employee

performances.

Over the years, decision-making process has become increasingly popular as a

weapon in the hands of the human capital so as to influence managerial

performance that will simultaneously transcend the organizations in questions.

#

Today, many organizations spend a very high percentage of their revenue on

training and development of their human capital. However, such training should

be channelled more on decision-making process as easy stakeholders of the

organizations need to be put into consideration whenever a decision is about to be

taken.

This position is being supported as the successful and development in some

organization depends upon a systematic approach which ordinarily involves a

careful needs and subsequent evaluation of results.

As greater demands are placed on organization to remain competitive forms must

ensure that the decision-making process must be very dynamic, effective, sound

and all stalteholders friendly and above all, forms ultimate goals achiever's tool.

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APPENDIX 1

QUESTIONNAIRE

ON

THE DECISION MAKING PROCESS IN DEVELOPMENT BANKING; A STUDY OF THE ALL STATES TRUST BANK PLC AND NIGERIAN AGRICULTURAL AND CO-OPERATIVE BANK.

PLEASE ANSWER THE FOLLOWING QUESTION BY TICKING AS APPROPRIATE IN THE SPACE PROVIDED.

Your age group

(a) 18 - 25 years 1 I (b) 26 - 30 years

(c) 31 - 40 years 1-1 (d) 41 - above years

Sex

(a) Male 0 (b) Female 0

Marital Status

(a) Married r l (b) Single

(c) Widow

4. Qualifications

(a) WAEC 1 GCE 0' Level

(b) NEC, OND, ATS 0 u

(c) HND, BSc, BA, BED, ACIT, ACA 11 - (d) MSC, M.ED, M.A, MBA n (e) Ph.D

5. Length of your service with the Bank

(b) 6 - 10 years (-1 (c) 11 - 15 years T I (d) 16 - 20 years 1-1 (e) 2 1 years and above n

6. Present position held

(a) CIerical Level n I

(b) Supervisory Level 0 (c) Middle Level Management / (d) Top Level Management 17

7. Section / Department

(a) Human Resources I3 (b) Marketing

(c) Customers Service I (d) Finance and Accounts

PART 2

JOB RELATED QUESTIONS

(8) Decision-Malting Process at the Level of the Bank is expressed primarily

through the basic functions of the manager which includes, planning,

organising, staffing directing and controlling.

(9) The bank's scope of decision-making process ordinarily, extends

beyond the managerial process.

(10) The Bank's decision-making process is dynamic rather than a fixed

procedure.

(c) Neutral 1 I

(1 1) Does any of the following environmental factors such as Economic,

Technology, Culture/Social and Political in any way influence the

decision-making process of your Bank?

(a) Yes 0

(c) Neutral I I

(12) Does Management perception agree with that of workers on decision-

making process of your Bank?

(c) Neutral 1 1 (13) Does Effective decision-making process has a positive correlation with

the level of productivity?

(c) Neutral fi

(14) In your own view, does effective decision-making process has any

impact on the attainment of the organisational goals?

(c) Neutral

(15) From all indications, do you think that your organisation has sound

decision-making process?

(a) Yes l-7

(c) Neutral

(16) Do you think that the personal values of the decision makers and that

of the Bank can exert an influence on the process of choices?

(c) Neutral

(1.7) Does member of staff agree with the decision-making process of your

bank? n (a) Yes

n

(c) Neutral n