The Effects of Inflation in an Organization's Performance A Case Study of: Equity Bank

ABSTRACT

The general objective of the study was to find out how inflation affects the performance of the organization. In order to achieve this objective a study was conducted among the employees of equity bank Kabalagala branch. Information was collected through the answers given to the questionnaires, and through face to face interview. The researcher employed a case study method in compiling data. The population of the research considered managers, staff, and supervisors of Equity Bank. The findings of the study revealed that inflation plays an important role in the performance of the bank. This is because the amount of interest charged is a key factor that a client considers when applying a loan and interest rates do increase when inflation occurs thus affects performance of the banks since clients will intend to borrow during inflation. The major recommendation of the study is that government should apply all methods needed in order to control inflation such as monetary policy, fiscal policy, and price control.

TABLE OF CONTENTS:

Page

Declaration 1

Approval ii

Acknowledgement iv

Table of contents V

List of tables Vii

List of figures Viii

Abstract Ix

CHAPTER ONE: Introduction

1.1 Background of the study ............................................................... 1

1.2 Statement of the problem .............................................................. 2

1.3 Purpose of the study ...................................................................... 3

1.4 Specific objectives of the study ...................................................... 3

1.5 Research questions ....................................................................... 3

1.6 Scope of the study ........................................................................ 4

1.7 Significance of the study ............................................................... 4

1.8 Conceptual framework. .................................................................. 5

CHAPTER TWO: Literature Review 2.0 Introduction ·············································································· 5 2.1 Definition of concepts .................................................................. 5

2.2 Relationship between inflation and organizational performance ...... 6

2.3 Causes of inflation ....................................................................... 6

2.4 Effects/impact of inflation ............................................................ 9

2.5 Types of inflation ......................................................................... 12

2.6 Strategies used to control inflation ............................................... 14

V

CHAPTER THREE: Methodology 3.0 Introduction ·············································································· 16 3.1 Research design .......................................................................... 16 3.2 Area of study .............................................................................. 16 3.3 Study population ........................................................................ 16 3.4 Sampling design .......................................................................... 16

3.5 Data collection instruments ......................................................... 17 3.6 Research procedure .................................................................... 17 3.7 Data analysis and presentation .................................................... 18 3.8 Research limitation ...................................................................... 18

CHAPTER FOUR: Data presentation analysis and interpretation 4.0 Introduction .............................................................................. 19 4.1 Background information ............................................................. 19 4.2 Causes of inflation ....................................................................... 22 4.3 Problems of inflation ···································································· 22 4.4 Solutions to the above problem .................................................... 24 4.5 Causes of poor performance ln banks .......................................... 24

CHAPTER FIVE: Summary, Conclusions And Recommendations

5.0 Introduction ........................................................................ 26

5.1 Summary ............................................................................ 26

5.2 Conclusion ........................................................................... 27

5.3 Recommendations .................................................................. 28

REFFERENCES 30 APPENDIX A Questionnaire ......................................... 31

APPENDIX B: Interview Guide ............................................... 35

APPENDIX C: Time frame ........................................................ 36

APPENDIX D: Financial Plan (Budget) 36