CHAPTER ONE

1.1   PREAMBLE

This section examine the background of the study for the subject matter under investigation; the evolution of the research problem; how the researcher became fascinated with the problem

1.2 BACKGROUND OF THE STUDY

The framework that its founding fathers set through succession planning and administration has resulted in the majority of enterprises that are making waves today. Deposit money banks in Nigeria are not exempt from this rule. Due to the obvious industry's unpredictability, most banks prepare appropriate succession arrangements.

As a result, most deposit money institutions' management planned for leadership succession by providing on-the-job training and mentorship. The rationale for this is that deposit money institutions often aim to earn a profit but avoid making any decisions that will not result in a positive outcome. As a result, rather than hiring training consultants, they prefer to train their staff in-house through on-the-job training and mentorship. The application of these strategies has resulted in significant improvements in profitability, productivity, dedication, efficiency, and usefulness.

In contrast to other service businesses, however, succession planning is critical to the growth and expansion of deposit money institutions. It is an essential component of every functioning organisation that has a road map for potential leaders to follow in order to attain predetermined objectives with scarce resources (Dessler, 2013).

The succession planning programme aids in the identification of the proper human resource to lead the institution's affairs in the next years (Swanson and Holton, 2001). Barnett and Davis (2008) argued that succession planning has been a useful technique utilised by corporations and sectors to handle leadership difficulties in organisations for many years. Employees who have the existing talents or the ability to gain skills that can help individuals move forward in an organisation or to other roles can benefit from succession planning (Leigh, 2015).

Additionally, Peet (2012) succession planning, according to him, is a method of creating information in order to improve cost and operational efficiencies in businesses.

Rothwell (2001) emphasises that succession planning has four major advantages for businesses. First, succession planning is a technique that businesses must use to ensure that the appropriate people are in the right roles at the right time. Second, succession planning mitigates the negative effects of reduction on the company's growth. Finally, succession planning fosters workplace variety in a way that multiculturalism does not. Finally, succession planning lays up the groundwork for future career opportunities, training, and staff advancement.

For Sharma, Chrisman, Pablo, and Chua (2000) Succession planning increases the likelihood of a smooth leadership transition. Byars and Rue (2006) argued that Goods produced will not be disrupted with succession planning in place.

 In the perspective of Griffiths (2012), In a dynamic and unstable political economy caused by competition in the worldwide business environment, succession planning is essential to sustain and grow knowledge and skills. In addition, Robbins, Judge and Sanghi (2009) emphasises that succession planning based on improving employee abilities is the bedrock on which development thrives.

However, one major problem that Nigerian banks faced today is succession planning. Akani (2015) According to reports, most Nigerian banks lack the competence to plan and manage succession since bank executives are wary of teaching their employees who will be replacing them in the coming years. Due to the lack of succession planning policies in Nigerian banking, most directors have kept their positions to themselves year after year, resulting in the demise of most Nigerian banks.

 Supporting this argument Akani (2015) The central bank of Nigeria (CBN) allegedly rescued eight banks in 2012 by injecting cash and removing the erring banks' leadership. Nonetheless, teaching the subordinates who will take over the tasks in the future is typically the driving force behind succession planning.

As a result of technology advancements, political dynamism, product variances, and customer cultural behaviours, on-the-job training has become increasingly important. Product development is aided through training, which draws buyers' attention to brands. New entrant training encourages individuals to engage in discretionary conduct that they would not normally engage in.

 Redmond (2006) When employees' competence are improved, their normative commitment is usually much higher than when they receive training..

Martocchio (2015) emphasises that service businesses normally optimise profits through training, but that when training programmes are discontinued, they experience significant losses.

 Millmore, Lewis, Saunders, Thornhill and Morrow (2007) They asserted, on the other hand, that training is a tool that businesses utilise to open doors to new prospects. On the job Training, in other words, predicts leadership succession planning in both service and manufacturing firms (Klikauer, 2014).

Thus, this study becomes imperative as it x-rays the role of on job training of employees so as take over responsibilities from those retiring from active services in Zenith bank Apapa Lagos.

1.3 STATEMENT OF THE PROBLEM

Any endeavor to assure the continuous effective operation of an organization, division, unit, or work group by making provisions for the development, replacement, and strategic application of key personnel throughout time is referred to as succession planning.

As a result of proper succession planning, on-the-job training can lead to an increase in performance. Despite the fact that businesses are increasingly recognizing the need of on-the-job training, few public limited firms have strategies in place to assist them through the process, and as a result, poor succession planning has resulted in a drop in performance.

Zenith Bank  Apapa is thought to have lagged behind in instituting succession plans such as job training as part of its strategy to deal with the aforementioned shift, risking losing expertise, information, and identity in the long term. Over the last year, the number of high-performing workers who left Zenith Bank Limited has more than doubled. This has been connected to a lack of suitable job training and succession planning in the workplace, resulting in poor performance. The company's well-trained and experts are now moving on to other competitors, with some even starting their own businesses, which has had a significant impact on the company's performance because the remaining employees are not well-trained. It is on this the study centers on the role of on the job training on succession planning initiative in zenith bank

1.4 OBJECTIVES OF THE STUDY

The purpose of this study is to examine the role of on the job training on succession planning initiative in zenith bank. Other specific objectives include:

1 To outline the approaches to an effective succession planning initiative in Banks

2 To examine the role of on the job training on succession planning initiative in Zenith Bank

3 To examine the relationship between on the job training and succession planning initiative in zenith bank

4 To outline the challenges of succession planning initiative in Banks

5 To recommend ways of encouraging succession planning and job training in other to enhance performance of Zenith Bank Apapa

1.5 SIGNIFICANCE OF THE STUDY

This research study will help the management and staff of Zenith bank in the implementation of policies such as the on the job training through succession planning initiative in other to enhance performance. This research can also be used by students and lecturers to serve as a medium for further research

1.6 RESEARCH QUESTIONS

1 What are the approaches to an effective succession planning initiative in Banks?

2 what is the role of on the job training on succession planning initiative in Zenith Bank?

3 What is the relationship between on the job training and succession planning initiative in zenith bank?

4 What are the challenges of succession planning initiative in Banks?

5 what are the ways of encouraging succession planning and job training in other to enhance performance of Zenith Bank Apapa?

1.7     RESEARCH HYPOTHESIS

The research following hypothesis were tested:

Hypothesis

H0: There is no significant role of on the job training on succession planning initiative in Zenith Bank

H1: There is a significant role of on the job training on succession planning initiative in Zenith Bank

1.8 SCOPE AND LIMITATION OF THE STUDY 

The Study would cover the role of on the job training on succession planning initiative in zenith bank

The researcher was faced with the following constraints in carrying out this study:

Time: The time within the researcher is too short to carry on the detail study on this topic.

Resources: Another constraint of the researcher is financial resources to carry on the detail study of this topic. Data: Another limitation to this study will be lack of data to make valid study on the research problem.

1.9 OPERATIONAL DEFINITION OF TERMS

ON THE JOB TRAINING: On-the-job training is an important topic of human resource management. It helps develop the career of the individual and the prosperous growth of the organization. On the job training is a form of training provided at the workplace

SUCESSION PLANING: Succession planning is a process and strategy for replacement planning or passing on leadership roles. It is used to identify and develop new, potential leaders who can move into leadership roles when they become vacant.

ROLE: A role is a set of connected behaviors, rights, obligations, beliefs, and norms as conceptualized by people in a social situation. It is an expected or free or continuously changing behavior and may have a given individual social status or social position