THE ROLE OF MONITORING AND EVALUATION IN PROMOTING STRATEGIC MANAGEMENT: A CASE STUDY OF THE ROYAL BANK LTD, GHANA

ABSTRACT
It is undeniable that every organization is set up with a purpose. For most banks, one of core motives why they are set up is to be profitable. Profitability is important because when a bank is profitable, all of the interests of all the stakeholders are met; shareholders receive dividends, staff members receive bonuses, taxes are paid to the government, investors receive interests on their investments and the communities get amenities through the corporate social responsibility of the bank. Profitability is achieved when the bank is accountable, transparent, promotes learning and has competitive advantage. Strategic management techniques are therefore adopted to guarantee the accomplishments of these profitability parametres. Strategic management is a process and involves various steps. Prominent among these is Monitoring and Evaluation (M&E). This thesis set out to highlight the role played by M&E in the strategic management process while using The Royal Bank as a case study. Information was sought through a questionnaire survey administered to 120 customers in 6 branches of The Royal Bank and 60 staff members in 6 branches of The Royal Bank. It was realized that M&E is given a lot of importance in The Royal Bank. It is a systems approach woven around the notion of compliance to outcome measures. To be effective, M&E deviates from the concept of sole judge in The Royal Bank. It draws expertise from customers and staff members by promoting participatory approaches in decision making. The main challenge of M&E in The Royal Bank is that staff members feel they are subjects of evaluation rather than users. They feel their contributions do not play a role in decision making. To solve this challenge, it is recommended that management should allow certain basic decisions be made at the branch levels.


CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The Monitoring and Evaluation (M&E) field of study has gained ascendency to its present status where there is now an impressive amount of literature and a community of professionals known as “evaluators”. This prominence is as a result of the fact that M&E is an integral aspect of strategic management. An organization must demonstrate its ability to be successful to be able to attract investors. Strategic management techniques when adopted guarantees success. It is “... the process by which the guiding members of an organization envision its future and develop the necessary procedures and operations to achieve that future…” (Goodstein et al, 1992 p.11). The banking industry is one of the prominent areas where strategic management techniques have been predominantly adopted. With increased competition among banks, profitability has not been easy to come by. Banks have therefore resort to strategic management techniques to guarantee success and grant competitive advantage.

In addition, strategic management techniques are being adopted because of accountability issues. The need to be accountable has become a major area of interest during these last few years (Naidoo, 2009 p.12). Public or private banks are increasingly under pressure to demonstrate their effectiveness and document their findings in order to continue to obtain credibility. Accountability has become a management technique to gain competitive advantage. Melinda Tuan described it as the “culture of measuring” (Tuan, 2004 p.23), Joanne Carman also described it as the “accountability movement” (Carman 2009b p.25) and Carol Fitz-Gibbons referred to it as the “age of indicators” (Fitz-Gibbons 2002). M&E as an aspect of strategic management promotes accountability. Therefore, M&E is in line with bank’s evidence-based policy and their strategic management. It is through M&E that banks display their performance results thereby being accountable. The most accountable bank is more unless the most credible bank and M&E is their tool. Also, the current focus on the use of M&E to promote transparency and accountability is needed to instil a performance culture that will ensure growth.

As a result of the competition, one of the key questions for banks is “What works?” To make deliverables more effective, different techniques are developed. Therefore, the question of “what works?” is no longer enough. In the last years, strategic management techniques have been adopted to adjust the question “what works” to the specific circumstance. What is more applicable is the question of “what works for whom in what circumstances” (Pawson & Tilley, 1997 p.41). M&E as a component of strategic management assesses every step of the way to make deliverables more efficient. Through M&E, steps are revised over and over till they yield the specific results needed. The needs of bank customers are different. It is through M&E that banks identify the products and services that best suit customers, M&E has therefore become a necessity for all banks but unique to every one of them in terms of how it is carried out.

As a crucial component of strategic management, this thesis seeks to highlight these roles played by M&E in the strategic management process. The Royal Bank is used as a case study to make this study more practical. The Royal Bank is a fully owned Ghanaian bank established in 2012. It was the first bank in Ghana to record profits in its first year of operations. The bank has been awarded severally on both local and international platforms.

Notable among the awards is the back to back award of best bank in growth won by The Royal Bank in 2013 and 2014 indicating that the strategic management policy of the bank is well equipped and functional thus the results. The Royal Bank is therefore the best case study that could be used to practicalize the important role M&E plays in promoting strategic management. In the Royal Bank’s governance practices, it has adopted its own corporate governance guidelines.

This study is also a source of insight into how the global practice of M&E has been adopted, structured and used in pursuit of global standards of effective management practices.

1.2 Problem Statement
It is only when the bank is profitable that the interests of all stakeholders are met; shareholders receive dividends, staff members receive bonuses, investors receive dividends on their investments, taxes are paid to the government and amenities are provided to the communities through the corporate social responsibility of the bank. However, profitability is achieved when the bank is accountable, transparent, promotes learning and has competitive advantage over its rivals. In a bid to accomplish these profitability parametres, strategic management is adopted to guarantee the achievement of success. It is a “. . . management . . . system . . . that links strategic planning and decision making with the dayto-day business of operational management” (Gluck et al, 1982 p.2). In modern times, it has therefore become imperative for any institution to adopt strategic management techniques.

However, the challenge with the adoption of strategic management is that most organizations equate strategic planning to strategic management. Goodstein et al (1992 p.17) defined strategic planning as “…the process by which the guiding members of an organization envision its future and develop the necessary procedures and operations to achieve that future…” Strategic planning is only one step in the strategic management process. Monitoring and Evaluation (M&E) is another major step in the strategic management process. Monitoring and Evaluation in the strategic management process is begun before the strategic plans are designed. It is used when the strategic plans are deployed and used when results are achieved to gauge performance. M&E has a predictive and accountability tendency. Without it, success is not certain. It is therefore a very integral part of strategic management. It is the identification, development, communication, collection, and assessment of selected outcome measures that are directly linked to the organization’s performance of its mission and attainment of its vision (Wells, 1996, p77). This thesis sets out to highlight these roles played by Monitoring and Evaluation in the strategic management process whiles using The Royal Bank as a case study.

1.3 Objectives of the Study
This study looks at the role of M&E in promoting strategic management in the Royal Bank. It is guided by the theories of M&E and strategic management. Specifically, the research seeks:

To assess the nature of M&E in The Royal Bank.

To examine the effectiveness of M&E in The Royal Bank in promoting strategic management.

To examine the challenges of M&E in The Royal Bank and how it affects strategic management.

1.4 Research Questions
The following are the research questions that are addressed:

What is the nature of M&E in The Royal Bank?

How effective is M&E in The Royal Bank in promoting strategic management?

What are the challenges of M&E in The Royal Bank and how does it affect strategic management?

1.5 Significance of the Study
M&E plays a very important role in the strategic management process. It has a presence before and during the strategic planning stage. It is similarly present in both the implementation and deployment stages of the strategic management process. However, the field of M&E has not had the attention it deserves in the management literature. A lot of institutions are struggling for success because it is difficult for them to be accountable, transparent and promote organizational learning. M&E guarantees success because of its predictive tendency. This study therefore highlights the important role played by M&E in the strategic management process whiles using The Royal Bank as a case study. The study brings to fore the challenges of M&E in the strategic management process that makes it difficult for most organizations to fully adopt.

This study is therefore a source of insight to The Royal Bank and other organizations as a whole on the important role M&E plays in the strategic management process. The challenges of M&E in The Royal Bank identified in this study will give The Royal Bank the direction and insight to channel their attention and effort in making M&E effective thus promoting strategic management. The lessons learned can be of much benefit to other banks and institutions on the best ways approach M&E if strategic management is to be effective.

1.6 Methodology of the Study
Customers as well as staff members of The Royal Bank, formed the population of the study. The study employed primary data as well as secondary data. Secondary data was sought from different published sources and the documents of The Royal Bank. Primary data was collected by structured survey. 180 questionnaires were collected using convenient sampling techniques. Both primary and secondary data were used for the study whereas the data analysis was done using Microsoft Excel and SPSS.

1.7 Scope of the Study
The study focuses on two important fields of study; monitoring and evaluation and strategic management. They are linked by the mission of the organization. A very important question is whether M&E in The Royal Bank is carried out in a way that optimizes strategic management.

The idea advanced is that M&E plays an important role in promoting the core tenets of strategic management. M&E at both the operational and planning level of institutions resonates the concepts of the mission of the organization. At any level of management, M&E plays a critical role in supporting the adoption of results oriented approaches.

This study takes a look at how M&E influences the achievement of the goals of the bank and much more critically how M&E influences the operations of the bank rated against the various standards of strategic management and service delivery. The Royal Bank has a very articulated policy focus related to the promotion of strategic management. As a typical universal bank, The Royal Bank implements policies that are in line with the directives of the Bank of Ghana, and if the various departments of the Bank are well managed and accountable, the goals of the bank will be achieved. M&E plays the role of keeping the various implementing departments of the bank on course towards the achievement of the targets of the bank.

1.8 Limitations of the Study
The inability of the researcher to get funding to support the study resulted in the limitation of the sample size. The findings of the research could have been further enhanced if there was support to include more customers and staff members in the data acquisition. The availability of funding could have made the researcher increase his sample size by visiting more branches to administer questionnaires.

1.9 Organization of the Study
This research consists of five chapters. Chapter One provides the general background to the study and states the problem that is being researched. It also contains the objectives and scope of the. Chapter Two is a presentation of related literature to the study. It focuses on the manner in which the theories of M&E have been incorporated in the practice of strategic management. Chapter Three is a presentation of the methods that is used to conduct the research. Chapter four is a presentation and analysis of data collected and would be illustrated with the use of appropriate Tables and Figures. Chapter five, the final chapter, presents the findings, conclusions and recommendations of the study.

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Item Type: Ghanaian Project Material  |  Attribute: 66 pages  |  Chapters: 1-5
Format: MS Word  |  Price: GH50  |  Delivery: Within 30Mins.
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