08. Practical Applications of Motivation in the Sri Lanka Banking Sector

The latest management trends emphasize the integration of employee and organizational demands. This blog focuses on identifying the motivational perceptions held by employees in Sri Lanka's banking sector. Profit maximization through growth and higher share value should not be the exclusive motivation for businesses (Bruno & Osterloh, 2002). One of the most important aspects of HR management is employee motivation. An organization will not be able to establish a long-term workforce without employee motivation. People should be at the forefront of corporate strategy and human resource development, as it invariably helps the relevant firms. The importance of human resources and their effective use and management in improving organizational performance cannot be overstated (Srivastava & Bhatia, 2013).

Employee motivation is a hot topic among business owners and corporations, and it's a burning issue in today's corporate world because motivation is one of the most significant factors affecting productivity (Srivastava & Bhatia, 2013). Every company strives to succeed in the business world by developing some type of core competency. Human resources, without a question, are one of the most significant resources that a company can acquire and grow. This type of core expertise is difficult to copy or replace, and as a result, it can be a source of long-term competitive advantage (Bruno & Osterloh, 2002).

8.1. Focus on Banking

Banking and finance institutions are at the forefront of any country's services industry. Banking is the oldest of all financial service (Badiu & Susanu, 2010).  After a long history that included a totalitarian regime, banking regulations in most countries have been largely deregulated, allowing private sector domestic and foreign entities to enter the local industry. The instance of large commercial banks in Japan in the 1980s and Sri Lanka today, deregulation has resulted in severe rivalry in the industry. As a result, in the banking industry, having well-managed, knowledgeable, and motivated personnel has become a critical component. It is not capital that becomes a bottleneck for organizational growth, but rather human resources, and that the classic organizational structure will no longer apply to customers today (Kariyawasam, 2010).

8.2. Focus on Banking in Sri Lanka

In Sri Lanka, the banking sector, which includes Licenced Specialised Banks (LSBs) and Licensed Commercial Banks (LCBs) leads the financial system and accounts for the majority of total assets. Banks play an important role in the Sri Lankan financial system since they provide liquidity to the entire economy while also transforming asset risk characteristics. Banks also provide payment services, making it easier for all companies to conduct their financial operations. Banks, on the other hand, can develop systemic vulnerabilities as a result of asset and liability maturity mismatches and interconnectedness. As a result, bank soundness is crucial since it helps to preserve confidence in the financial system, and any failure could have an impact on the activities of all other financial and non-financial businesses, as well as the economy. The LCBs are the single most important type of financial institution within the banking sector in terms of asset base and amount of services supplied. With the largest market share of the financial sector's assets, LCBs dominate the financial system. As a result, the soundness of the LCBs, particularly the performance and financial strength of the six largest LCBs, also referred to as the Systemically Important Banks, is critical to the health of the Sri Lankan financial system (SIBs).

The banking sector is bolstered by a significant pool of human capital utilized by the Sri Lankan banking industry, which employs a large number of people. The banking sector in Sri Lanka has a diverse human capital base with the best blend of gender balancing and empowering workers recruited from around the country (NATIONAL DEVELOPMENT BANK PLC, 2020). The HR staff in the banking sector strives to develop and maintain a highly motivated, productive, and empowered workforce that contributes to business greatness. All bank team members are allowed to develop their full potential, and they are recognized and rewarded for being the greatest team of achievers in service excellence. A streamlined professional development strategy is guaranteed for the Bank's team. Through the bank's abroad branch network, correspondent agents, and international training and development programs, the banking sector also provides worldwide experience to its employees in line with their career advancement and objectives (BOC, 2020). The banking sector in Sri Lanka is unusual in that it values and nurtures people. In this context, through a variety of welfare initiatives, bank HR encourages all of its workers to embrace a healthy work-life balance. People's social, intellectual, and physical well-being is prioritized.

 

List of References       

Badiu, D. Susanu M., (2010), Performance and changes evaluation & management: ways of developement in banking institutions, The Annals of “ Dunaea de Jos” – University of Galati, 2010 (I), p.p 317-324

BANK OF CEYLON.2020, Annual report. Available at: https://web.boc.lk/assets/reports/annual/BOC_AR2019.pdf  

Bruno, S.F. Osterloh M ., (2002). “Successful Management by Motivation – Balancing Intrinsic and Extrinsic Incentives”. Heidelberg : Swiss Association for Organization and Management in association with Springer

Central Bank of Sri Lanka, 2018. Available at:  https://www.cbsl.gov.lk/en/financial-system/financial-system-stability/banking-sector

Kariyawasam, U.G.D.C., 2010, Empirical investigation and assessment of service quality dimensions of commercial banks and development banks, MBA, Manipal University – India.

NATIONAL DEVELOPMENT BANK PLC. 2020, ANNUAL REPORT. Available at: https://cdn.cse.lk/cmt/upload_report_file/386_1615778524285.pdf

Srivastava, N. & Bhatia, P. (2013). A Qualitative Study of Employee Motivation Factors in National Banking Sector Of India. International Journal of Business and Management Invention, 2(2), 8-22.