3.5. BENEFITS OF «PEOPLE» FOR FINA BETTER
BANKING SERVICES
Personnel management is not the sole responsibility of the
personnel department, with in FINABANK. It is the business of all managers. All
levels of management from first line supervisors up to and including the CEO
are in tune with and manage FINABANK's employees in a manner consistent with
published practices, policies and procedures which are in harmony with the
needs of the workforce. All functions related to people management are
co-ordinated, follow a common philosophy and be part of a process that
effectively contributes to the achievement of the goals of FINABANK.
The only competitive advantage FINABANKA has the ability to
improve the performance of its people at all levels. Therefore HR management
always takes on a whole new meaning and is regarded by senior management as a
key component of FINABANK's activities and is given the requisite high profile
in the development of its long term strategies.
In the years ahead, in addition to increasing business
competitiveness there will be increasing competition for a shrinking workforce.
Employees will be attracted to organizations which practice imaginative and
enlightened management and avoid "management by best-seller" which gives rise
to the contradictions discussed earlier.
Within FINABANK, when revising, updating and redefining the
roles of employees and development training plans, particular attention is paid
to the people at the lower levels. It is the customer service reps, drivers,
order clerks and receptionists who frequently are the first interface with the
customers.
No matter how wise the CEO, or how great the product or
service, the battle for customer loyalty is fought by FINABANK front-line
troops - those employees at the lower levels of the organization structure.
Hence it is critical that due care and consideration be given those employees
when developing HR policies and training programs.
To become more productive, employees have to be motivated. In
this context, FINABANK after applying MASLOW's Needs Hierarchy as the
motivation tool, as presented in the second chapter, employees became more
productive as it is illustrated in the following figure:
Figure 23: Impact of people to FINA
performance
Source: FINABANK, Financial Statement, 2004-2008
As it is shown by the above figure, FINABANK has spent, in one
hand, more on its personnel in 2005 (749,804,000Rwf) than the previous year
2004 (562,854,000Rwf) that's to say an increase of 33.21% and the same during
the following years cost on staff has been increased as far as the company
grows: 940,372,000Rwf; 1,193,757,000Rwf and 1,555,544,000Rwf respectively for
years 2006, 2007 and 2008 what determines respectively an increase of 25.42%,
26.95%, 30.31%.
In other hand, FINABANK has gained positively in 2005
(40,418,000Rwf) compared to year 2004 where it loosed (360,505,000Rwf) but the
following year (2006) its profit has decreased to 30,534,000Rwf and it has
recorded an increase in profit of 251,016,000Rwf, 581,249,000Rwf respectively
for years 2007 and 2008 what determines an increase of 722.09% and 131.56%
respectively.
FINABANK has recorded a high difference in profit between 2006
and 2007, as it comes to be presented, from 30,534,000Rwf to 251,016,000Rwf;
because in 2005 and 2006 had to cover first the big losses registered in
previous years.
Statistically, FINABANK roughly spent 1,000,466,200Rwf on its
personnel and gained 108,542,400Rwf, annually. The standard deviation of that
cost is 388,400,562Rwf and the one of profit is 344,413,256Rwf. The more money
spent on staff is 1,555,544,000Rwf and the more money gained is 581,249,000Rwf
while the less amount of money spent on staff is 562,854,000Rwf and the less
profit recorded is the loss equal to -360,505,000; all of this, is in the range
of 2004 to 2008, the interval of this research.
So, as it was well presented on the above graph, as far as the
cost of staff increases, the profit of that year increases also, because the
personnel is motivated and produces more to generate the high profit; what to
say, there is a significant and positive correlation of 0.966120088 between
cost on FINABANK's staff and the profit recorded in the period of 2004 up to
2008.
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