The Impact of Privatization On the Performance of Business Organizations: A Case Study of Stanbic Bank (U)

ABSTRACf The study intended to investigate the impact of privatization on the performance of business organizations; case study, of Stanbic Bank (U). With the objectives such as; determine the privatization process in Stanbic Bank (U), establish the relation ship between pre-privatization and the performance of Stanbic Bank (U), and establish the effect of post privatization and the performance ofStanbic Bank (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 Bank (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 ofStanbic Bank (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.