MOTIVATION AS A WAY OF REDUCING FRAUD IN BANKING INDUSTRY

1.0 Introduction

1.1 Background Of The Study

One of the greatest challenges facing any economy today is the structuring of the bank and other financial industry institution. The banking industry plays an important role in the financial market and very individual in the economy.

It has been noted that some banks face distress syndrome simply because the activities of fraud are found to be on increase and this has resulted to mass space withdraw of the government and public fund firm the banks and other financial institutions that are affected.

In the annual report and statement of account of Nigeria deposit Insurance corporation (NDIC) year 2000 section 2, it was reported that fraud and forgery cases in commercial banks increased significantly by about 119.8% form 182 in 1999 to 400 in 2000. Most employees engage in commercial banks increased frauds because probably they do not enjoy high degree of satisfaction or perhaps they fall what they earn are not commensurate with the kind of effort they put into their work.

If the forgery is true, then a good motivational policy helps workers to attain on satisfaction and invaluably reduce fraud in banking industry. Basically, management involves planning, organizing, coordinating, budgeting and control.

Similarly, management cannot achieve its objectives in the atmosphere of chaos, unfriendliness and lack of motivation. Therefore, motivation can be defined as inner state that energizes, activates more and direct or channel behavior towards achieving organizational objectives. On the other hand fraud can be defined as an act of depriving person dishonesty of something. So which is or might but for the perpetration of fraud entitled?

Generally motivation includes rewards shown in cash and in king. It is not an empty promise but demonstration of reality. It is an acceptable act that management cannot operate in isolation or employees. Employees are human beings and utilize in a reckless manner.

And note management has to be cautious and responsible in dealing with affairs that affect its work in the industry, given the inherent benefit derivable from highly motivated workers. There is need for proper study of motivation and how it can used to reduce the fraudulent practice in banking industry.

1.2 Statement Of The Problem

Until very recently, most Nigeria industries, mostly banks have been treating the moderation which is infact, borders on staff welfare with lending.

This is why most industries are faced with series of fraudulent practices consciously and unconsciously, perpetuated by the employees of the organization.

Investigations revealed that most organizations found it difficult to see motivation as being capable of making a meaningful contribution to their organization. This therefore resulted into the employees becoming frustrated ad easily involved in fraud.

The non-inclusion of denied and focused motivational strategy that will spare employees performance could be fell in the banking industry especially in the areas of efficiency and effectiveness that would have served as barriers to prudence of any kind.

In this way, a lot still need to be done to put the industry on a second footing in the area of motivation. In order to bring about transparency and accountability in the banking sector.

The problem of motivation is not peculiar to the banking industry alone. It is a problem to be curiously addressed by the way majority of the Nigeria industries today other wise the fraudulent practice will continue unchecked.

1.3 Objective Of The Study

The general objective of this is to find out if motivation serves as strategy of reducing fraudulent acts in most Nigeria industries given the high incident of banks fraud of the others as a result of lack of commitment on the part of management to boost the morale of the staff though motivation on welfare packages.

Therefore the general objective of this industry establishes the impact of motivation on employee’s performance and job satisfaction in Nigeria banking industry.

Asides, it ascertains whether motivation as a tool of improving workers performance facilitates transparency and accountability such that frauds in banking industry are minimized. If not completely eradicated.

1.4 Significance Of The Study

The research work will be of importance ad good use to those who are directly in charge of labour in either private or public sector of the economy.

1. Motivation as a spur of the employees’ performance is not new, historically motivational varies and was designed to suit particular purpose of the employees’ vis-avis their status and need in any organization with a new to explore the best out of them.
2. It plays an important role in assisting regulatory authority in the area of motivation essentially when formulating policy and implementing it that could lead to reduction in fraudulent act in Nigeria.
3. This project work is useful to any person undertaking research on motivation.
4. Consequently, the research describes how appropriate motivation improves low performance and reduced, if they completely eliminate frauds.

1.5 Statement Of Hypothesis

1. H1: Monetary motivation can prevent fraud at all levels of workers in banking industry.
2. H2: Motivation packages improves profit of banks

1.6 Scope Of The Study

This research work covered the area of motivation and provides a clear explanation on how employee can be motivated to achieve higher performance and hence reduce fraudulent practice in banking industry.
Researcher can not reach all the banks in the state and the country at large, so the study is restricted to few selected in eastern regions, precisely Onitsha metropolis taking chartered bank plc branch as the case study.

1.7 Definition Of Terms

Motivation:

This is the willingness to extent high-level of effort towards organizational goals. It is also the action or the causes to action that we take to certify a need. It is concerned with low behavior is stated, sustained or stopped and what kind of subjective reaction is present with person. It is also an inner state that energizes, activates or more and direct or channel behavior towards achieving organizational objectives.

Fraud:

It is the crime of deceiving somebody or a company in order to get money or goods, illegally. It is an act of depriving person his dishonesty of something, which he is or might, but perpetration of fraud is entitled.

Motivational Policy:

This is a principle that guides the person why somebody does something or behaves in a particular way. It is also a principle, which a company adopts to see how best its workers or employee could be treated to get the best of their attention to work.

Motivation Theory:

Is a speculative plan or underlying principles of motivation which was theory of need, content theory of motivation etc.

Incentive:

It is something that encourages to do something. It is a stimulus to motive. It could be inform of money, leave allowance, holiday abroad, bonus, wardrobe allowance, housing allowance, children and maids allowance etc.

Forgery:

It is the crime of coping money documents etc in order to deceive people. This could be done by any cadre of management or staff an industry and it usually as a result of improper motivational factors. Example altered signature and counterfeit currency.

Intrinsic Motivation:

means deriving satisfaction of your needs and therefore your motivation factor that influence people to behave in a particular direction. The factors include responsibility i.e. feeling that the work is important and having control over ones resources.

Extrinsic Motivation:

This means using work as means to an end. It is most called instrument approach. It also refers to what is done to or for people to motivate them; it could be rewards such as increase pay, praise or promotion.

Bank Failure:

A bank is said to have failed if it has not succeeded in achieving any of the objective for which it was established. That is when it cannot meet any of its obligations. These obligations are due. First and foremost to its customers as well as its shareholders and even the community where it is established. '

Fraudsters:

This is a person who commits fraud. That is somebody who is involved in the crime of deceiving somebody or companies in order to get money.

Cashiering Fraud:

This is a crime of deceiving to get money or stealing customers money which is received by the person whose job is to receive and pay out money in a bank e.g. in appropriate customer money.

Falsification:

To change a written records or information so that it is no longer there. To falsify data, records or accounts of a company.

Fraud Prevention;

It is the act of stopping the occurrence of an act of Depriving a person dishonesty of something when he is or might but for the perpetration of fraud be entitled

Financial Management:

Is the act of running and controlling the fineness of a company, it must set upon objective plan ad how this may be achieved which is done by the effect of a financial manager.

Remuneration:

It is the amount of work that is paid to somebody for the work they have done, it could be salary, wages and so on.

Public Fund:

It is the money which is deposited in the bank but which belongs to the ordinary people in the society in general. It could also be government fund provided especially for the use of people in general.