Privatization and Performance of Business Organisations: A Case Study of Stanbic Bank

TABLE OF CONTENTS

DECLARATION ........................................................................................................................ i

DEDICATION .......................................................................................................................... iii

ACKNOWLEDGEMENT ......................................................................................................... .iv

TABLE OF CONTENTS ............................................................................................................ v

LIST OF TABLES ................................................................................................................... vii

LIST OF FIGURES ................................................................................................................ viii

ABSTRACT ............................................................................................................................. .ix

LIST OF ACRONYMS ............................................................................................................... X

CHAPTER ONE ......................................................................................................................... 1

INTRODUCTIO,N ...................................................................................................................... 1

1. 0 Back ground to the study .............................................................................................. 1

1.1 Statement of the Problem ........................................................................................ .3

1.2 Purpose of the Study .................................................................................................... .4

1.3 Research Objectives ................................................................................................... .4

1.4 Research Questions .................................................................................................... 4

1.5 Scope of the Study ...................................................................................................... 4

1.6 Significance of the Study .............................................................................................. 5

1.7 Conceptual Framework ................................................................................................. 5

CHAPTER TWO ........................................................................................................................ 8

LITERATURE REVIEW ............................................................................................................ 8

2.0 Introduction .................................................................................................................. 8

2.1 Privatization Process ..................................................................................................... 8

2.2 Performance before Privatization ................................................................................ 11

2.3 Perfonnance after Privatization ................................................................................... 11

CHAPTER THREE ................................................................................................................... 14

RESEARCH METHODOLOGY. .............................................................................................. 14

3. 0 Introduction ................................................................................................................ 14

3.1 Research Design ......................................................................................................... 14

3.2 Area of the study ........................................................................................................ 14

3 .3 Sample and Sampling Procedures ............................................................................... 14

3 .3 .1 Population and Sample ............................................................................................. 14

3 .3 .2 Sampling Procedures ................................................................................................ 15

3 .4 Data Collection Methods ............................................................................................ 15

3.4.1 Data Collection lnstruments ...................................................................................... 15

3.5 Data Analysis Methods ............................................................................................... 16

3. 6 Limitation of the Study ............................................................................................... 16

CHAPTER FOUR ..................................................................................................................... 17

PRESENTATION AND ANALYSIS OF DATA ...................................................................... 17

4.0 Introduction ................................................................................................................ 17

4.1 To Determine the Privatization Process in Stanbic Bank (U) ....................................... 17

4.1.1 Focused on the Awareness ofEmployees Towards the Privatization Process ............ 18

4 .1.2 Would this Policy Benefit the Organization? ............................................................. 19

4.1.3 Has the Govermnent Attained the Following Economic Objectives? ......................... 20

4.1.4 Has the Government Achieved its Fiscal Objectives? ................................................ 21

 ABSTRACT The study intended to investigate the impact of privatization on the performance of business organizations; case study, of Stanbic Banlc (U). With the objectives such as; determine the privatization process in Stanbic Banlc (U), establish the relation ship between pre-privatization and the performance of Stanbic Banlc (U), and establish the effect of post privatization and the performance of Stanbic Banlc (U). The purpose of this study was to investigate the impact of privatization on the performance of business organizations; a case study of Stanbic Bank (U). In data collection process, the researcher used instruments such as administered questionnaire and interviewing for primary data, and extensive library research, which data was analyzed and presented in form of tables, percentage distribution and frequency distribution. Therefore the study found out that, privatization benefited the organization in terms of improved productivity, profitability, and efficiency, however, the employees were not adequately sensitized about the privatization process in Stanbic Banlc (U), in addition, the privatization method applied in Stanbic Bank not appropriate enough, and the government had attained the both the economic and fiscal objectives like the increase in volume of goods and services and increase in tax revenue. It was therefore concluded that; privatization seem to have brought good impact on the organization in terms of improved performance and the economy in general in terms of increased investments and improved productivity. Although the doubt is still seen in terms of the method applied in Stanbic Bank (U) (out right sale of 49% shares to the public). Hence this has left the government still in big influence of some valuable decisions to the organization which could impact on its performance. Thus recommendations to the government and the management of Stanbic Banlc (U) that there is a need for a fair and efficient tax regimes, in addition an improvement in the judicial system is necessary so that the legal system is quicker and supports the rights of borrowers and lenders, research also recommends on the improvement on the transparency of privatization so as to solve the problems of privatization, one of the authors recommended that another option for privatization could be decentralizing the enterprises to local governments. There fore more research has to be gathered to test the validity of this option as it could be a tool to solve the problems associated with privatization.