Chapter One 1.1 Background To The Study

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Public Relations cut across every sphere of life and its role cannot be under
estimated. The role of Public Relations especially in a service rendering
organization like that of a bank cannot be overemphasized. It is in realization of
this that many organizations now set up Public Relations department because of its
indispensability.
The term Public Relation may not be fully understood by many people who are not
in Public Relations practice. However, it should be noted that many people had for
a long time been in Public Relations without knowing that they were in the
discipline. If anybody’s job or activities involve in communicating with other
human beings (Publics, Consumers and Customers) definitely that person is
directly or indirectly involved in Public Relations.
Public Relations is defined as relations to the general public through publicity,
which is further the functions of a corporate organization that is concerned with
informing the public of its activities in an attempt to create favourable opinions.
Public Relations can also be referred to as a social management philosophy which
recognizes and accords premium place to the interest of the people in all affairs
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relating to the organization’s existence in life. As always stated by many Public
Relations practitioners, Public Relation is not merely a publicity stunt nor a smoke
screen to cover or protect the organization that one is serving.
Public Relations is a deliberate, planned and sustained effort to establish and
maintain mutual understanding between an organization and its public (BIPR).
Public Relations is not an accidental affair because it consist of a planned and
conscious effort.
Public Relations is the effort to motivate and influence people primarily through
communication to think well of an organization’s to respect, support and stick with
it through trial and trouble (Byron Christian).
Public Relations is defined as the management function which evaluates public
attitudes, identifies the policies and procedures of an individual or an organization
with the public interest, plans and executes a programme of action to earn public
understanding and acceptance.
The purpose of Public Relations practice is to establish two-way communication
seeking common ground or areas of mutual interest and to establish understanding
based on truth, knowledge and full information.
A typical Public Relations activity has four separate but related parts.
1. Analysis, research and defining problems
2. Drawing up a programme of action and budget
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3. Communicating and implementing the programme
4. Monitoring the results, evaluation and possible modification
This is sometimes referred to as RACE system
Research, Action, Communication and Evaluation.
Public Relations as a managerial function in an organization is an all encompassing
activity that involves all aspects of the behavior of all individuals and groups
within the organization.
A bank can be defined as an institution for keeping, lending and exchanging of
money. Anybody can set up a bank provided he is registered under the provision of
a banking company.
In banking industry, the need for effective Public Relations is more pronounced
especially when they are faced with inter-bank competition, which at time leads to
decline in profit of some banks. Banks have recognized that effective Public
Relations has become the integrating force which assists them in achieving their
goals and objectives and it is geared towards building good corporate image for
them.
Public Relations in banking industry has a responsibility of articulating and
disseminating positive and factual information about the bank’s objectives and
operations. This project work is set out to look at how Public Relations has been
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able to perform these roles in the success story of First bank, Union bank, Guaraty
Trust Bank and Zenith Bank.
1.2 ORIGIN OF BANKING IN NIGERIA
The earliest banking activities in Nigeria were carried out by Elder Dempster and
the African Banking Corporation. In the year 1894, the bank of British West Africa
took over the banking business from them and remained the sole bank in the
Country until 1917 when the Colonia bank opened offices in Jos, Kano, Lagos and
Portharcourt. The Bank of British West Africa is what is now known as the First
Bank of Nigeria Plc, it was formally known as Standard Bank of Nigeria Limited
and the Colonial bank is the present day Union Bank of Nigeria Plc.
The United Bank for Africa (UBA), a French parented bank came to Nigeria
through London as the British and French Bank for Commerce and Industry in
1948, Nigeria incorporation with the present name, United Bank for Africa, was
taken in 1961. In the banking industry in Nigeria, the above three major banks are
usually referred to as the “Big Three”.
Indigenous banking only started in Nigeria in 1929, when the Industrial and
Commercial Bank was established but the bank collapsed in 1930. The Nigeria
Merchantile Bank was established in 1931, it later went out of business.
In 1936, the National Bank of Nigeria was opened. 1945 saw the birth of
Agbomagbe (now Wema Bank). In 1946, the Tinubu Bank later known as Africa
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Continental Bank was established. Apart from these major ones, several smaller
banks also came to being but fizzled out as soon as they were established.
“The 1958 ordinance established the Central Bank of Nigeria, which took over the
issue of the Country’s notes and also responsibility for ensuring monetary stability
and a sound Financial Structure throughout the economy” The Central Bank of
Nigeria was established in 1958 and it is the only body responsible for issuing the
Country’s currency.
1.3 EVOLUTION OF PUBLIC RELATIONS IN NIGERIA
The Second World War triggered the practice of Public Relations in Nigeria.
During the war, the colonial government saw the need to disseminate information
concerning the war and thus established an information office. This information
office became a sort of checking house of information for editors and reporters
where they could confirm or verify information. By 1944, the information office
metamorphosed into Public Relations office with greater responsibilities.
In Nigeria’s private sector, the then United Africa Company of Nigeria limited
pioneered the growth of Public Relations practice in this sector of the economy.
The Public Relations outfit in UAC was established in 1949 as information
department it later graduated into Public Relations department in 1960.
After that of UAC, the next private sector organization to embrace Public
Relations was Shell-BP Nigeria limited when Public Relations was first established
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in the company, the officer responsible for Public Relations operated under the
administration department of the company. A full pledged Public Relations
department of the company was established in 1969.
The history of Public Relations in Nigeria cannot be complete without mentioning
the role of Dr Sam Epelle, who can be proudly described as the father of Public
Relations in Nigeria. He founded the Public Relations Association of Nigeria
which later change to the present Nigeria Institute of Public Relations (NIPR).
This study will bring to focus how a Public Relation practitioner can help to
coordinate the organization and its various customers.
If the customers’ perception towards the four banks under study when determined
is bad, then the researcher could be in a position to advise and make necessary
recommendations in the organization to enhance the image of the banks.
1.3 HISTORICAL BACKGROUND OF BANKS UNDER STUDY
FIRST BANK OF NIGERIA PLC
First Bank Plc was founded in 1894 by Sir Alfred Jones, a shipping magnate from
Liverpool, the bank started out as a small operation in the office of Elder Dempster
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and Company in Lagos. The bank was incorporated as a limited liability company
on 31st March, 1894, with a head office in Liverpool, United Kingdom.
It began trading under the corporate name of the Bank for British West Africa
(BBWA) with a paid-up capital of $12,000 after absorbing its Predecessor, the
African Banking Corporation, which had been established earlier in 1882. BBWA
went on to establish a leading position in the banking industry in West Africa
recording impressive growth and working closely with the Colonial Government in
its role as a Central Bank.
In order to expand its operation, a branch was opened in Accra, Gold Coast (now
Ghana) in 1896 and another in Freetown, Sierra Leone in 1898. A second Nigeria
branch was opened in the old Calabar in 1900 and two years later services were
extended to Northern Nigeria.
In 1957, it changed its name from Bank for British West Africa to Bank of West
Africa and in 1969 it was incorporated locally as the standard Bank of Nigeria
Limited in line with the companies Decree of 1968. In March, 1971, the bank
obtained a listing on the Nigerian Stock Exchange.
In 1979, the bank changed its name to First Bank of Nigeria Ltd, in 1991, it
became First Bank Plc, in 1985, the bank introduced a decentralized structure with
regional offices and this was reconfigured in 1992 to enhance operational
efficiency.
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Figure 1: First Bank branch
UNION BANK PLC
Union Bank of Nigeria was established in 1917 as Colonial Bank. In 1925 the bank
became known as Barclays Bank DCO (Dominion Colonial and Overseas) as a
result of its acquisition by Barclays Bank. Following Nigeria’s independence and
the enactment of the Companies Act of 1968, the bank was incorporated as
Barclays Bank of Nigeria Limited,
Between 1971 and 1979, the bank went through a series of changes including its
listing on the Nigeria Stock exchange and share acquisitions/transfers driven by the
Nigerian Enterprises Promotion Acts (1972 and 1977); this resulted in its evolution
into a new wholly Nigeria –Owned entity. To reflect the new ownership structure,
and in compliance with the companies and Allied Matters Act of 1990, it assumed
the name Union Bank of Nigeria Plc.
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In 1993, in line with its Privatization/Commercialization drive, the Federal
Government dis-invested by selling it controlling shares (51.67%) to private
investors. Thus Union Bank became fully owned by Nigerian citizens and
organizations all within the private sector.
Figure 2: Union Bank Branch
ZENITH BANK PLC
Zenith Bank Plc was established in May 1990 and started operations in July of the
same year as a commercial bank. The bank which was founded by Chief Jim Ovia,
has grown to become one of the leading financial institutions in Africa. The bank
currently ranks as the 6th biggest bank in Africa.
The bank has its Headquarters in Lagos with over 500 branches and business
offices in Prime Commercial Centres in all States of the Federation and the Federal
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Capital Territory. Zenith Bank became a Public Limited Company on June 17,
2004 and was listed on the Nigerian Stock Exchange on October 21 st 2004
following a very successful limited public offering (100).
Zenith Bank Plc currently has a shareholder base of about one million. The bank’s
customer base comprises mainly corporate entities many of which are subsidiaries
of multinational corporations and large indigenous companies.
Figure 3: Zenith Bank branch
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GUARANTY TRUST BANK PLC
Guaranty Trust Bank was incorporated as a Limited Liability Company Licensed
to provide commercial and other banking services to the Nigerian Public in 1990.
The bank commenced operations in February 1991, and has grown to become one
of the respected banks in Nigeria.
In September 1996, Guaranty Trust Bank became a publicly quoted company and
won the Nigerian Stock Exchange president’s merit award that same year and
subsequently in the years 2000, 2003, 2005, 2006, 2008 and 2009. In February
2002, the bank was granted a Universal Banking License and later appointed a
settlement bank by the Central Bank of Nigeria (CBN) in 2003.
Figure 4: GT Bank branch
1.4 STATEMENT OF THE PROBLEM
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Banks have been undergoing image problem and in-efficient customer service
delivery after the consolidation exercise in 2005 with the Central Bank’
announcement of key reforms aimed at promoting growth and sustainability within
the sector. As result of this, most of these banks suffered hostile take –over and
acquisitions as they are still trying to adapt to the merge-up. Banks are more
concerned about their bottom –line performance leaving out the importance of
being customer –centric sector as reported by Abdullahi (20,2010).
Regarding this, First Bank, Union Bank, Zenith Bank and GTBank to maintain the
trust of its customers, they must engage in Public Relation as part of their overall
marketing strategy in realizing their organizational goals and objectives.
1.5 OBJECTIVES OF THE STUDY
1. To explain how Fist Bank, Union Bank, Zenith Bank and GTBank utilizes
Public Relations in customer relations.
2. To find out the impact of Public Relations on the four banks under study.
3. To examine Public Relations as a tool used to accomplish image making
functions in the selected banks.
4. To find out the customers level of awareness of Public Relations
departments in the banks under study.
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5. To examine the role of Public Relations in sustaining the image of the
selected banks.
6. To evaluate how Public Relations have driven the four banks objectives of
the customers.
1.6 RESEARCH QUESTIONS
1. How has First Bank, Union Bank, Zenith Bank and GTBank utilized Public
Relations in customers’ relations?
2. What are the impacts of Public Relations on the banks under study?.
3. How can Public Relations be used to accomplish image-making functions in
the four banks?
4. What is the level of customers’ awareness of Public Relations department in
the selected banks?
5. What are the roles of Public Relations in sustaining the banks under study’s
image?
6. How has Public Relations driven the four banks objectives to the customers.
1.7 SIGNIFICANCE OF THE STUDY
The significance of Public Relations has not yet been well recognized in Nigeria as
it is in the developed countries for example, in America, the success recorded by
most establishments have been attributed to effective roles played by Public
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Relations. Against this background there is every need to show the Public, the
impact and role of Public Relations in enhancing the customer satisfaction.
Another significance of this study is that it will review the role Public Relations
play in enhancing customer satisfaction in the four selected banks and the impact
Public Relations has made on the relationship between the four banks and their
customers. It will also recommend ways to improve it. The study will help to show
the effectiveness of Public Relations and the need for it in public corporations or
business enterprise to promote good will with its Publics and enhance customers’
satisfaction and retention.
This study will be beneficial to the four banks and their customers as a whole and
it will also serve as a reference point to other researchers. Finally, this study would
also show positive ways to correct the negative perceptions the customers hold in
perceiving the banks under study.
1.8 RATIONALE FOR THE STUDY
The late 80s and early 90s saw an economic downturn in Nigeria, this biting
economic situation has affected most banks in the country and this has led Central
Bank of Nigeria (CBN) to tag some banks “distress banks” or even revoked the
License of some others because of their inability to meet the financial
commitments of their customers.
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Despite the hash economic situation in the country, the four banks under study
have been waxing stronger and stronger. The purposes of this study are: to find out
the roles which Public Relations played in yielding these positive results for the
banks, to find out why the four banks under study find it necessary to set up a
Public Relations department and finally, to find out the place of Public Relations in
the organizational structure of the four selected banks.
1.9 OPERATIONAL DEFINITIONS
For the purpose of this study, the following words are defined thus:
BANK: A place where money is lent or exchange, it is a service rendering
organization, its products is the services that it renders to its
customers.
PUBLIC: The people that have various dealing with the bank, such as its staff,
shareholders, customers and government.
SHAREHOLDERS: Group of investors who invested their money in the bank.
CBN: Central Bank of Nigeria. It is responsible for issuing currency and
regulating monetary policies in Nigeria.
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REFERENCES
1. Charles, Okigbo. Advertising and public Relations. Enugu
Snap press Ltd 1990.
2. The origin of money/banking, a seminar paper delivered by Demola Segun
of Union Bank of Nigeria Plc.
3. Mike, Okereke: The role of Public Relations in Nigeria published in Public
Relations review April, 1993.
4. Our history-Union Bank:http://www.unionbank.com
5. About us-Zenith Bank:http://www.zenithbank.com
6. History-Guaranty Trust Bank Plc: http://www.gtbank.com
7. History of First Bank:http://www.fbnbank.co.uk
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CHAPTER TWO
2.0 LITERATURE REVIEW
For some time now people have developed wrong misconceptions about what
Public Relations is all about? To some, Public Relations is about spreading false
propaganda in an attempt to promote a good image for an organization. To some
others, it is about arranging parties and programmes for the comfort of
Management. Some even see it as the messenger of the organization’s responsible
for spreading the organization’s message to the publics. But Public Relations is not
all these, what then is Public Relations?.
Public Relations has many definitions just as they are many authors on the subject.
One of these definitions most accepted internationally is that given by the British
Institute of Public Relations. It defines it thus, “Public Relations practice is the
deliberate, planned and sustained effort to establish and maintain mutual
understanding between an organization and its publics”.
The two most important aspects of this definition are Public Relations is planned,
is not something that should be done haphazardly. It is maintaining mutual
understanding between an organization and its publics. Mutual understanding
means being understood by other people and understanding other people. It also
requires that an organization must be receptive to the needs of groups having
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interest in it, there must be feedback mechanism in the organization’s
communication to its publics.
Sam Black, defines Public Relations as “The establishment of two-ways
communication to resolve conflicts of interests, seeking common grounds or areas
of mutual understanding, interest and the establishment of understanding based on
truth, knowledge and full information”. His definition emphasizes the need for
feedback and that Public Relations must be based on truth and full information”.
The editors of Public Relations news of New York in its definition states that
“Public Relations is the Management function which evaluates public attitude’s
identifies the policies and procedures of an individual or an organization with the
public interest and plans and executes a programme of action to earn public
understanding and acceptance”. From this definition it can be seen that Public
Relations has four basic characteristics. It is a social philosophy and function of
Management, it studies and evaluates Public attitudes, identifies the policies and
procedures of the organization or individual with the public interest and finally, it
executes a programme of action to earn public understanding and acceptance.
Deflur Denies defines Public Relations as “A communication process whereby an
individual or unit of society attempts in an organized fashion to relate with its
various constituent groups or publics for particular purposes usually centering on
positive public image”.
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R. S. Davar, in his own definition see Public Relations as activities by which a
business house attempt to secure the goodwill of the public by having in a manner
as to please those with whom the business through its representatives come into
contact.
The new Encyclopedia Britanical defines Public Relations as “Policies and
activities designed to convey information about and improve the public attitude
towards an individual, corporation, government agency or other organizations”.
One important definition of Public Relations is that given by the Mexican
statement which was as the result of international conference of Public Relations
practitioners held in Mexico in 1978. It says “Public Relations practice is the art
and social science of analyzing trends, predicting their consequences, counseling
organizations leaders and implementing planned programme of action which will
serve both the organization and Public interest”. This definition emphases some
important aspects of Public Relations, firstly, it stresses the need to conduct
research so as to be able to assess situations and come up with its results. Secondly,
it points out the advisory role of Public Relations and its services to Management,
finally, Public Relations actions must not only be beneficial to the sponsors, it
must be socially responsible.
As earlier stated in chapter one of this work, banking industry is a service- oriented
one. Apart from the traditional functions of banks such as accepting deposits,
granting loans, making payments etc, commercial banks in a developing economy

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such as that of Nigeria are expected to perform other certain functions. According
to the 1976, financial system review committee a set of five objectives expected of
banks are:-
1. The banks should actively facilitates the transformation of the rural
environment by promoting the rapid expansion of banking facilities, services
and banking habit in rural and near-rural communities. Most importantly,
they will serve as vehicles for the creation of credit in the rural areas in the
form of equity and loans to the small scale farmers and entrepreneurs.
2. The banks should, to the extend consistent with banking prudence,
increasingly undertake more medium and long term lending, designated as
such. The designation is important as it enables the borrower to undertake
long term investment planning for the application of the loan’s proceeds.
3. They should conform to avowed national objectives and identify fully with
Nigeria aspirations by taking a more active part in the financing of the
economic programmes of national priority. Consequently, their sensitive
position in the financial system necessitates that they be brought under
Nigerian control both in ownership and Manangement.
4. Decision-making in the commercial banking sector must be localized. This
would remove the possibility of our major banking institutions being
manipulated to the disadvantages of the Nigerian economy.
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5. The banks should use a significant part of their profit to improve the quality
of services they offer.
The banking service is a service rendering one. For any service to be desired,
there must be a conscious need for it, such a need must be generated by the
knowledge of its ability to satisfy customer requirements. This is where the
role of Public Relations in banking becomes important. Public Relations role
in the banking industry is to disseminate information on what the banks does
and how it does it. It is to monitor public opinion concerning the industry.
As a way of life and sound human relations, no industry, institution and even
individual can afford to overlook the important role which Public Relations
can play for it.
According to the Nigerian Institute of Publics Relations, whether in banking
or any other organization, Public Relations suppose to perform the following
functions:-
1. Counseling, based on the understanding of human behavior.
2. Projecting a corporate identity.
3. Establishing and maintaining two ways communication based on
truth and full information.
4. Promoting goodwill with staff, suppliers and customers.
5. Research into public opinion, attitude and expectations.
6. Supporting the marketing effort of the company.
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7. Analyzing future trends and predicting their consequences.
8. Preventing conflicts and misunderstandings.
9. Harmonizing the private and public interests.
10.Promoting mutual respect and social responsibility.
11.Maximizing profitability.
12.Promoting products and services.
13.Promoting good financial and shareholder relations.
14.Promoting good employee relations.
According to Bowun, Paul and Ellish, Publics Relations perform the
following functions:-
1. Measures, interprets and evaluate the attitude of various publics.
2. Assists Management in defining objectives and increasing public
understanding and acceptance of the organization’s products, plans,
policies and personnel.
3. Develops, execute and evaluates programmes to earn public
understanding and acceptance.
The basic tool that Public Relations use in performing its functions is
communication. public relations has the function of communicating to the public
what the Management plans to do or is doing and also to communicate to
management what public opinion is and the way to effects it. Thus to perform its
functions very well Public Relations must be part of management.

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Public Relations does not simply means communicating good images of an
organization. The most important thing is ensuring that such images exist before
making them known.
According to Victor Ogundipe in his article Public Relations in banking “many of
the images held of banks, are results of misconceptions which could have been
easily dispelled by effective and better Public Relations”. To Ogundipe, Public
Relations in banking is expected to fulfill the following functions:-
1. Serving as a central information source about the organization and the
official channel or communication between it and the public.
2. Bringing to the public attention, through corporate media, significant facts,
opinions and interpretation which will serve to keep them aware of its
policies and actions.
3. Co-ordinating the activities which affects its relations with the general
public as well as with special public groups.
4. Collecting and analyzing information on the changing attitudes of key public
groups towards it.
5. Planning and administering informational programmes designed to fulfill
most of the responsibilities outlined above.
As a result of these important functions which Public Relations perform, it is
thus becoming more appreciated as an important factor in the success of any
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organization more so, a bank which depends on people’s goodwill and
patronage to succeed.
As earlier stated in this study, no individual or organization can exist without
Public Relations more significantly its relevance to banking can be further
illustrated by the fundamental nature of banking which has been and continues
to be taking risks, borrowing short and lending long. The foundation for doing
this, is the probability that the bank will not be called upon at any one time to
redeem all its obligations provided it manages its affairs very well. This
depends on public confidence in the soundness of the bank and its ability to do
so. Confidence is the cornerstone on which banking is built, if it breaks down
the whole edifice of banking collapses. Public Relation is a veritable instrument
that assists banks in quickly dispelling rumours and suspicious and in the
process sustaining public confidence.
In Nigeria, both the government and the individuals have some unfavourable
image about the banks. The government accuses the banks of not being
interested in the economic development of the country particularly the rural or
uneconomic areas; this is reflected in the establishment of branches only in the
viable urban areas. The government is also not happy with the banks for
channeling loans to commercial ventures instead of agriculture and industries.
The customers on the other hand complained that banks waste too much time on
their transactions.
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Whether the above criticisms against banks are completely groundless is in
materials, what matters is that people have their opinions about banks.
Accordingly, bank – customer Public Relation must not emphasize offering
efficient services alone, it must also focus on improving bank images to the
customers. Banks therefore, need Public Relations to inform and educate the
public and help to counter the adverse impact of the above criticisms on their
operations.
In a very competitive industry like that of the banks, Public Relations is very
relevant. Banks in many countries often operate with little or no difference
either in terms of their services or interest rates, so much so that potential
customers and the public in general often wonder if there is any need to prefer
one bank to the other. Given these similarities in their operations, competition is
often very keen among banks. This competition has even now become keener as
a result of the increase in the number and branches of banks and because of the
fact that other financial institutions also offer banking services while banks
themselves have also venture into offering other financial services that are
special preserve of other financial institutions. Good and effective Public
Relations is one of the strategies banks employ to contend with the very keen
competition both among themselves and between them and other financial
institutions that offer banking services.
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Public Relations is always relevant to banking because the banks publics want
it. This was clearly shown in a keynote address delivered by the former Ondo
State Military Governor, Colonel Ekundayo Opaleye, in a seminar organized by
the Nigerian Institute of Bankers in 1987. He said “Public Relations goes far
beyond publicity and press relations. It is the shine on a salesman’s shoes the
smile on his face and the vigour of his handshake. It is reflected in the
receptionist who gives you a warm and friendly welcome when you visit the
establishment. Similarly it is reflected in the telephone operator, who puts your
call through promptly and efficiently. The cordial letters you receive from the
company’s chief executive, the dealers who think well and speak well of the
establishment and above all, its satisfied customers are reflective of effective
Public Relations”. Every staff of the bank therefore, has a duty to project a good
image for his/her bank.
Banks differ from other establishments in the sense that it does not sell tangible
commodity but mainly act as keepers and managers of securities. Their source
of income is the commission or interest they charge for different services
rendered to its customers. Like every industry, banks need Public Relations to
succeed. Apart from the routine Public Relations expected of all industries,
banks should also endeavour to create goodwill generally, especially in this era
of growing radicalism where banks are regarded by some people as exploiters.
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This goodwill can be regenerated by sponsoring special events, sports,
exhibitions and even granting scholarship.
Banks have many publics such as customers, shareholders, mass media, staff
and government which it come into contact with. It is necessary to see the role
which Public Relations play in bank relations with these various publics.
Bank-customer relations- while the government provide the legislative and
regulatory environment, customers provide the market. As suppliers of the
stock-in-trade, deposits and customers of the services, customer constitute the
pillar and lifeline for banking. They therefore, make the greatest demand on
banks, the most important being getting their money back when they want it
and some of the bank’s money when they need it. This will give customer
satisfaction and confidence in the bank. If the customer is not satisfied with the
bank’s services, particularly with the respect to the deposit, loan and payment
functions, he may loss confidence in the bank. Once this happens the bank may
loss its image and this may lead to chain reaction that may result ultimately in
the demise of the bank.
According to Green Nwankwo, “Bank- customer relations should also
emphasizes rendering services conveniently and at minimum cost to the
customer. This should address such things as convenient outlets and points of
sale for bank service prompt, speedy and courteous attention and replies to
customers queries, prompt and regular rendition of bank statements,

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minimization of delays at bank counters, bank marketing strategy that identifies
and renders the right service at the right time at the right place and the right
price of course profitability”. Bank – customer Public Relations should be
educative, willing and ready to offer explanation of the rudiments and
requirements of banking to customers.
Bank – Shareholders Relations – The shareholders provide the equity capital
which the bank use in its operations. Banks Pubic Relations should be able to
provide information to the shareholders on the happenings in the bank. Such
communication can be through Annual Report, Annual General Meetings and
personal letter to the shareholders.
Bank – Mass Media Relations. In designing their Public Relations programmes,
banks should recognize and appreciate the potentialities of the mass media. It is
through the mass media that they can enlighten their customers about their
operations. Good bank- mass media relations will bring good publicity to the
bank which will in turn lead to good patronage.
Bank- staff relations- Human resources are the most important and critical asset
of any organization. It is they who make the organization to be what it is.
Effective Public Relations is the product of its staff, accordingly staff Public
Relations in banking should aim at staff satisfaction, understanding and co-
operation. It should focus on fostering good and effective human resources
management that positions the right people for the right job. Bank- staff Public
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Relations should also emphasize effective communication with employees and
optional feedback mechanism, to ensure mutual understanding and co-operation
throughout the organization. It should also evolve good leadership that
motivates and inspires staff to maximum performance for themselves and the
organization.
Bank-Government Relations- Government provides the legislative and
regulatory environment for the bank to operate. Bank- Government Relations
should be co-operative, advocative, advisory, informative and responsive. The
overall objective is to create a harmonious relationship that enables the bank to
be capable of anticipating, responding to and implementing as well as
influencing government policies to mutual advantage of the banks, government
and the economy generally.
To maintain cordial relationship with all the above mentioned publics of the
bank, there must be efficient services on the part of the banks because there is
no better Public Relations instrument than efficient services.
2.1 THEORETICAL FRAMEWORK
2.1.1 THE EXCELLENCE THEORY: The excellence theory is a general theory
of public relations that resulted from a 15-year study of best practices in
communication management funded by the International Association of Business
Communication (IABC) Research foundation. Three books were published from
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the research (J.E Grunig 1992, Dozier et. al 1995, L. A Grunig et al.2002). This
general theory incorporates a number of middle-range theories of public relations,
including theories of publics, public relations and strategic management, models of
public relations, evaluation of public relations, employee communication, public
relations roles, gender, diversity, power, activism, ethics and social responsibility
and global public relations.
The theory was tested through survey research of heads of public relations, CEOs
and employees in 327 organizations ( corporations, nonprofit organizations,
government agencies and associations) in the United States, Canada and the United
Kingdom (survey, interview). The survey research was followed by qualitative
interview with heads of public relations, other public relations practitioners and
CEOs in 25 organizations with the highest and lowest scores on a scale of
excellence produced by statistical analysis of the survey data (interview,
qualitative).
The excellence theory first explained the value of public relations to organizations
and society based on the social responsibility of managerial decisions and the
quality of relationships with stakeholder publics. For an organization to be
effective, according to the theory, it must behave in ways that solve the problems
and satisfy the goals of stakeholders as well as that of the management
(stakeholder theory). If it does not, stakeholders will either pressure the
organization to change or oppose it in ways that add cost and risk to organizational
30
policies and decisions. To behave in socially acceptable ways, organizations must
scan their environment to identify publics who are affected by potential
organizational decision or who want organization to make decisions to solve
problems that are important to them. Then, organization must communicate
symmetrically with publics (taking the interest of both the organization and publics
into account) to cultivate high-quality, long term relationship with them. The
interviews with CEOs and senior public relations officers revealed that good
relationship were of great value to organizations because they reduced the cost of
litigation, regulation, legislation and negative publicity caused by poor
relationship, reduced the risk of making decisions that affect different stakeholders,
or increased revenue by providing products and services needed by stakeholders.
Based on this theoretical premise about the value of public relations, the excellence
theory derived principles of how the function should be organized to maximize this
value.
First, the research showed that involvement in strategic management was the
critical characteristics of excellent public relations. Public relations executives
played a strategic managerial role as well as administrative managerial role. Public
relations also were empowered by having access to key organizational decision
makers (the dominant coalition).
Second, the study showed that public relations loses its unique role in strategic
management if it is sublimated to marketing or other management functions.
31
Sublimation to another function resulted in attention only to the stakeholder
category of interest to that function, such as consumers for marketing. An excellent
public relations function was integrated, however; programmes for different
stakeholders were gathered into a single department or coordinated through a
senior vice president of corporate communication. An excellent public relations
function did work with other management functions to help them build relationship
with relevant stakeholders.
Third, the excellence theory showed that a symmetrical system of internal
communication increased employees’ satisfaction with their jobs and with the
organization. However, internal communication generally was not practice unless
organization had a participative rather than authoritarian culture and a
decentralized, less stratified (organic) structure rather than a centralized stratified
(mechanical) structure.
Fourth the excellence study examined the effect of the growing number of women
in public relations and evidence that women had difficulty entering managerial
roles. The research showed that organizations with excellent public relations
valued women as much as men for the strategic role and developed programmes to
empower women throughout the organization. The emphasis on gender also led to
inclusion of diversity of race and ethnicity as a fifth part of the excellence theory.
This focus, along with the international nature of the project, expanded the theory
to make it appropriate for use outside the United States-in diverse cultural, political
32
and economic contexts. Replication of the study in Slovenia ( L.A Grunig et.al
1998) showed that the excellence theory is generic to many context as long as the
theory is applied differently when contextual variable are different. The research in
Slovenia also resulted in the addition of ethics to the excellence theory-a sixth
component (Public Relation Ethics). Since the completion of the excellence study,
Scholars in this research tradition have continued to improve and enlarge the
theory by conducting research to help public relations. Professional participates in
strategic decision processes. This research has been on environmental scanning and
publics, scenario building, empowerment of public relations, ethics, relationship,
the return-on-investment of public relations, evaluation, relationship cultivation
strategies, conflict resolution, and complexity theory, specialized areas of public
relations and global strategy (J.E Grunig 2006, Toth 2007).
2.2 CONTEMPORARY THEORIES OF MANAGEMENT
2.2.1 CONTINGENCY THEORY: Basically, contingency theory asserts that
when managers make a decision they must take into account all aspects of the
current situation and act on those aspects that are key to the situation at hand.
Basically, it’s the approach that “it depends” for example, the continuing effort to
identify the best leadership or management style might now conclude that the best
style depends on the situation. If one is leading troops in the Persian Gulf, an
33
authocratic style is probably the best. If one is leading a hospital or university, a
more participative and facilitative leadership style is probably the best.
2.2.2 SYSTEM THEORY: Systems theory has had a significant effect on
management science and understanding organizations. First, let’s look at “what is a
system?” A system is a collection of part unified to accomplish an overall goal. If
one part of the system is removed, the nature of the system is changed as well. For
example, a pile of sand is not a system. If one removes a sand particle, you’ve still
got a pile of sand. However, a functioning car is a system. Remove the carburator
and you’ve no longer got a working car. A system can be looked at as having
inputs, processes outputs and outcomes. Systems share feedback among each of
these four aspects of the systems.
Let’s work out on organization. Inputs would include resources such as raw
materials, money, technologies and people. These inputs go through a process
where they’re planned, organized and controlled, ultimately to meet the
organizations’ goals. Outputs would be product or services to a market. Outcomes
would e.g. enhanced quality of life or productivity for customers/clients. Feedback
would be information from human resources carrying out the process,
customer/clients using the products etc feedback also comes from the larger
environment of the organizations, e.g. influence from government, society,
economics and technologies. This overall system framework applies to any system
including sub-systems (departments, programmes etc) in the overall organization.
34
System theory may seem quite basic yet decades of management training and
practices in the workplace have not followed this theory. Only recently with
tremendous changes facing organizations and how they operate, have educators
and managers come to face this new way of looking at things. The interpretation
has brought about a significant change (or paradigm shift) in the management
studies and approaches organizations.
The effect of systems theory in management is that writers, educators, consultants,
etc are helping managers to look at the organization from a broader perspective.
System theory has brought a new perspective for managers to interpret pattern and
events in the workplace. They recognize the various parts of the organization and
in particular the interrelations of the parts e.g. the coordination of central
administration with its programmes, engineering with manufacturing, supervisor
with workers etc This is a major development, in the past managers typically took
one part and focused on that. Then they moved all attention to another part. The
problem was that an organization could e.g. have a wonderful central
administration and wonderful set of the teachers but the departments didn’t
synchronized at all.
2.2.3 CHAOS THEORY: As chaotic and random as world events seem today,
they seem as chaotic in organizations too. Yet for decades, managers have acted on
the basis that organization events can always be controlled. A new theory (or some
say “science”), chaos theory recognizes that events indeed are rarely controlled.
35
Many chaos theorists (as do systems theorist) refer to biological systems when
explaining their theory. They suggest that systems naturally go to more complexity
and as they do so, these systems become Volatile (or susceptible to cataclysmic
events) and must expand more energy to maintain that complexity. As they expand
energy, they seek more structure to maintain stability. This trend continues until
the system splits, combines with another complex system or falls apart entirely.
Sound familiar? This trend is what many see as the trend in life, in organizations
and the world in general.
2.3 PUBLIC RELATIONS COMMUNICATION STRATEGIES
Ifedayo Daramola (2003) identified some basic public relations strategies to
include:
PUBLICITY: This refers to any attempt designed to expose an organization, its
services or product to the public through any public media. It includes advertising,
sales promotion and personal selling.
PRESS AGENCY: Unlike a news agency, a press agency deals with staging
newsworthy events that are designed to attract the attention of the public by
publicizing them in the media. Such events include press conferences, trade
exhibition and fashion shows. These must be distinguished from events that
happen daily.
36
LOBBYING: This is one of the most abused expressions in common usage. In a
technical sense, lobbying is a professional attempt designed to influence the
government or any authority to change a public programmed or policy in favor of
an organization.
1. MERCHANDISING: This deals with blending an acceptable
appearance. It is part of promotion. You blend the product or person with
the real it or him, so as to win acceptance and patronage from public for a
group, a product, service or an idea.
2. PROMOTION: This involves moulding or mobilizing opinion favorably
to an organization to get it to support a worthy cause.
3. PERSONAL SELLING: These talks about a personal effort involving a
person who is attempting to woe other people on behalf of a product, a
group and an idea.
There are two types of personal sellers namely: order-takers and order-
getters.
4. EVENT: An organization can host or participate in various events for
public relations purposes such as conferences and other social events. A
company opening a new factory may decide to hold a party on the
premises for key shareholders, employees, customers and suppliers. Such
events can create media interest.
37
5. PUBLICATIONS: An organization can commission a wide range of
print and audiovisual materials to support its public relations effort to be
sent to shareholders, potential customers or clients to give them a flavor
of how the organization operates.
6. SPONSORSHIP: An organization may resort to sponsorship of several
events by providing financial or material support for some independent
activity not necessary linked to the organization normal business but
which the sponsoring organization would hope to benefit and thereby
generate public relations and enhance both image and their marketing
communications activities.
7. EXHIBITION AND TRADE SHOW: An organization may introduce
exhibition and trade shows into their promotional mix to generate public
relations and boost their image. Generally, exhibition and trade shows
vary from small local event to major national or international shows.
They can generate create many potential sales leads. The main
importance of appearing in such exhibition and event is to generate sales
leads and to reinforce the organization’s present and image in the market.
2.4 PUBLIC RELATIONS TOOLS
Ojomo et.al (2006) citing wells et.al (2003) describes three categories
that divide the tools of public relations, depending on the amount of
38
control the company has in its communication. Since the tools which can
be utilized in public relations are well known tactics in organization, they
are not described in further terms.
CONTROL PUBLIC RELATIONS
When a company can control the used and placement of their public
relations tools they are utilizing controlled channels. Examples of tools in
this category are: 1.
Publications: Brochures, flyers and newsmagazines
2. Annual report
3. Displays, exhibits
4. Product placements
5. Speakers
6. Photographs
7. Stage events (Open houses, anniversary celebration)
UNCONTROLLED PUBLIC RELATIONS
When companies rely on the use and placement of their public relations
to media, they are using uncontrolled channels. Examples of tools in this
category are:
1. Publicity (Radio, TV and Print media)
39
2. News releases (Print, Audio, Video, e-mail) press corporate and media
advisory (media kits, facts sheets, background information
3. By-lined articles.
4. Talk and interview shows.
SEMI-CONTROLLED PUBLIC RELATIONS
When some aspects of the public relations activities are controlled and initiated by
the company, but other aspects remain uncontrolled they are utilizing semi-
controlled channels. Examples of tools in this category are:
1. Special events and sponsorship
2. Interpersonal communication
3. Electronic communication (websites, chat rooms)
4. Word of mouth
2.5 PUBLIC RELATIONS AS A MANGEMENT FUNCTION IN AN
ORANIZATION
Public relations is defined as a management function that creates, develops and
carry out policies and programmes to influence public opinion or public relations
about an idea, a product or an organization.
Public relations has also been defined as a management function which evaluates
public attitudes, identities policies and procedures of an organization or an

40
individual with the public interest and executes the programme of action to gain
public understanding and acceptance. Public relations is a philosophy of
management owing to the fact that it is the bed rock of all the activities and
operations of an organization. It is a defined way by which an organization’s
operation are projected.
The field of public relation has become an important part of the economic, social
and political pattern of life in many nations. That field includes advertising,
publicity, promotional activities and press conduct. The work involves various
functions including the following:
1. Programming: that is analyzing problems and opportunities, defining goals,
determining to be reached and recommending and planning activities.
2. Writing and editing materials such as press releases, speeches, product
information and employee publications.
3. Placing information in the most advantageous way.
4. Organizing special events such as press functions, award programmes exhibition
and displays.
5. Setting up face-to-face communication, including the preparation and delivery of
speeches.
6. Providing research and evaluation using interviews reference materials and
various survey techniques.
41
7. Managing resources by planning, budgeting and recruiting and training staff to
attain these objectives, specialized skills are required to handle public
opinion research, media relations, direct mail activities, institutional
advertising, films and video productions and special event.
Public relations are most effective if it is represented in the boardroom, at
the highest management level where corporate decisions are made. It
involves advising or counseling management or corporate leaders so that the
policies and programmes of the organization would be compatible with the
needs and views of the public. It is not just releasing information after
important corporate decisions have been made, it is part of the management
decision making.
The public relations department in any organization is an expression of
management efficiency in integrating, initiating and directing the total
communication and relation efforts. The public relations officer (PRO) has
access to all information as pertaining to the organization and its members.
2.6 TENETS OF PUBLIC RELATIONS
The principles behind public relations is attracting more customers and
building bigger business for a business organization and helping it to meet
with competitions as well as winning and sustaining acceptance for an
organization’s publics.
42
Daramola (2003), explained that most business organizations if not all exist
to make profits and in order to remain in the good books of the consumers or
costumers, the organization must strive at all times to establish and maintain
a mutual support between her and her customers. He further said, such
mutual understanding cannot be without the organization making efforts. It
therefore depends on the public relations department of the organization to
see to it that there exist a mutual understanding between the organization
and its consumers or customers.
Asemah (2010), says mention need be made of the fact that attempts or
effort at establishing mutual understanding between the organization and its
publics is what constitute public relations practice. Public relation will make
quite an impact in the organization when the public relations manager
always have at the back of his mind public relations objectives and its
principles.
2.7 WHY THE FOUR BANKS UNDER STUDY SHOULD ENGAGE
IN PUBLIC RELATIONS
Public relations is an essential tool in enhancing customer satisfaction in the
banking industry, hence it must be applied by banks to ensure their
customers level of satisfaction and also to persuade the customers that they
are an essential part of the business industry. Some services rendered by the
four selected banks as its part of its public relations effort are; showing of
43
hand bills, E-banking, periodic messages on important information and
advertisement, customers forum, sponsorship of events, customers electronic
feedback and many more.
It must be known that banking is a service sector and it solely depends on
gaining and retaining its customers for success and existence. For this to be
realized such customers must be treated like the stakeholders of the industry
in order to gain their loyalty and retention while thriving for new drives and
strategies to satisfying them and maintaining their leadership position in the
industry.
2.8 CUSTOMER SATISAFCTION
According to Ec-council (2012), the link between the customer’s satisfaction
and cooperation success is indisputable. Customer’s satisfaction results from
the creation of value for the customers. Customer satisfaction is directly
proportional to the value a corporate body creates for the customers. The
value created can be perceived as functional value and emotional values.
Khondaker et. al (2011) established that customer’s satisfaction has become
an important aspect of measuring performances. As most banks and finances
organizations offer similar products and services, they further asserted that
improving customer satisfaction and loyalty is the most important fact in
maintaining as well as increasing market share for the organization.
44
Customer satisfaction represents an important feedback mechanism for these
four banks to determine how they have been received and perceived by their
customers.
Ec-council (2012) further states that customers satisfaction measurement
system must be built around a framework for understanding customer
experience.
2.9 PUBLIC RELATIONS AND ITS PUBLICS
According to Daramola (2003), a public is a homogeneous group of people, which
may directly or indirectly impact on the ability of an organization to achieve its
objectives and goals.
The public of public relations are many and varied. For this reason it becomes
crucial that we define which public we need for a particular programme or
problem. There is the need to decide on which public can be reached effectively
within the limit of the available time and budget.
We have two major types of publics and they are internal and external publics. The
internal publics are the employee and shareholders. The external publics are the
suppliers, distributors, competitor and community neighbors.
The most popular specialize areas of public relations procession are the employee
relations, community relations, financial relation, industrial public relations,
45
customer relations, press relations, government relations, and international public
relations.
The information that is relayed and the choice of media is easier determined with a
definite public in mind. In other words when we know our public we will know
how best to reach them and where to reach them.
All departments and units of an organization should be equipped with
communication facilities that will be closely monitored by the public relations
units which will also ensure that the various in-house magazines, bulletins and
brochures which are giving information about the organization are made available
for all concerned.
2.10 THE IMPORTANCE OF FEEDBACK IN PUBLIC RELATIONS
Feedback is the creation of communication process. For communication to be
complete, the decoder must react (if given a feedback). The feedback is to test how
well the messages have been received. It could be negative or positive feedback.
Feedback in communication process could be immediate or delayed.
Public relations activities are usually carried out to gain understanding, providing
information and obtain feedback or reaction from the public. There can never be
mutual understanding if the communication is “one-way” instead of it being a
“two-way” communication.
46
According to Charles Cooley, communication is defined as a mechanism through
which human relations exist and develop… all the symbols of the mind, together
with the means of conveying them through space and preserving them.
Communication which is simply defined as the exchange of information between
the sender and the receiver cannot achieve any useful purpose unless there is
response from the receiver to convince the sender that the message is not only
received but also understood exactly the way it should be. Without feedbacks, the
communication process can neither be complete nor effective.
It is therefore necessary and important to have a feedback mechanism put in place
for the public relations process to be complete and effective. Thus, for every
channel of information there should be a channel for response.
Also, because an organization operates in an environment which is shaped by the
force of public opinion, the right of people to ask questions and respond or react
should be recognized and guaranteed. Consequently, every organization’s
publications, particularly the house journal should arouse a reaction and response
via feedback network like opinion poll, referendum, suggestion boxes, letters to the
editor or phone calls etc can help public relations practitioner find out what people
are thinking about the organization, whether the public relations activities are
achieving any useful function or having any effect on the audience. Feedback is an
indispensable variable in public relations because it is very important in the
process of communication.
47
MISCONCEPTIONS OF PUBLIC RELATIONS
Public relations is a much misunderstood and under-valued management tool. To
many people, public relations is another form of advertising while others dismiss it
as dealing with journalist and sending out press releases (Daramola, 2003).
There have been basic misconceptions of what public relations truly entails and
what its basic functions are in an organization, below are some of the
misconceptions of public relations as cited by Ojomo (2006) citing Nwosu (1997)
1. Public relation is not about lying and selling falsehood about your
product and organizations. It is not about denying every statement that
does not favor your organization. It is not about prevarication. Public
relation is about telling the truth all the time.
2. Public relations is not about bribery
3. Public relations is based on moral principles and as such is not about
arranging pretty ladies for international visitors to government houses or
to chief executives of companies, clients and board members. If there is
any profession where morality should be held in high regards, it is in
public relations because it enhances public confidence in the profession.
4. Public relations is not magic, enchantment or paranormal. For this reason
all its activities are based on scientifically provable and empirical
methods. Public relations are based on high performance, quality
48
performance, quality and credibility in terms of products, service,
policies and practice.
2. 11 GOALS OF PUBLIC RELATIONS
To understand public relations you also need to understand its goals. Public
relations goals can be divided into four group:
1. Create and maintain reputation
2. Enhance status
3. Present a positive image
4. Create goodwill
REFERENCES
1. Franck Jefkins, Introduction to Marketing, Advertising and
Public Relations.
2. Black Sam, Practical Public Relations.
3. Charles Okigbo, advertising and Public Relations Enugu, Snaap Press
Ltd.
4. Mike Okereke, the Role of Public Relations in Nigeria Published in
Public Relations Review April 1993
5. I Bid
6. I Bid
49
7. Bowon, Paul and Ellis, Manual of Public Relations London, Heinmann
8. Green O. Nwankwo Bank Management, Principles and Practice
9. I Bid
10.An address delivered by the former Ondo State Military Governor, Col
Ekundayo Opaleye, on the occasion of the opening ceremony of the seminar
organized by the Nigeria institute of Bankers.
11.http://www.zenithbank.com/about-us/
12.http://www.gtbank.com/abank-gtbank/our-company/history
13.https://www.unionbankng.com/who-we-are/ourhistory
14.http://www.fbnbank.co.uk/aboutus/ourhistory.php
15.Daramola C. A. (2003), Fundamentals of professional public relations
Lagos: molalek Printing enterprise.
16.McNamara carter, Historical and contemporary theories of management.
17.Raufu G (2005), public relations principles meek associates.
18.Grunig J.E (2008), Excellence Theory in public relations.
50
CHAPTER THREE
3.0 METHODOLOGY
The research method used for this study was the personal interview technique. This
makes the researcher to have direct interview with selected sample of population
that are concern with the study. Direct interview is a conversation that required to
gather valid and reliable information through the responses of the interviewee.
The interview method is used for the study because of the following advantages
which it has: it is the most flexible means of getting information because the face-
to-face situation lends itself easily to questioning in greater details. In interview
method, some information can be observed by the interviewer during the interview
without adding to the length of the questionnaire. Finally, interview method
allowed the researcher to ask a follow-up question, thereby getting more
information than originally intended.
51
There are two basic types of interviews-structure and unstructured. In structure
interview, standardized questions are asked in a pre- determined order, it gives
little freedom to the interviewers. In an unstructured interview, broad questions are
asked to allow interviewers freedom to determine further question that will enable
them obtain the required information. Structures interview is used for this
interview because it is easy to tabulate and analyze.
3.2 SAMPLING PLAN
The sampling plan used for this study is purposive sample. Purposive sample
involves selecting subjects on the basis of certain characteristics or qualities and
eliminating those who do not meet the require criteria.
The rationale for using this method is to know the real people that have
transactions with the four banks under study. Any person without any dealing with
the four selected banks does not meet the criteria require for the study.
3.3 POPULATION OF THE STUDY
The population used for the study was drawn from the customers of the four banks.
These people were chosen because they are the people who have day-to-day
transactions with the four banks under study. As a result of this, they will be in a
better position to answer some relevant questions concerning the operations of the
banks.
52
The customers were interviewed randomly in the banking halls of the four banks
where they were waiting to transact business. The interview was conducted on fifty
(50) customers, - thirty five (35) men and fifteen (15) women.
3.4 TOOLS FOR COLLECTING DATA
The data were collected through face-to-face interview with the selected customers
of the banks. The interviews were conducted in the banking halls in order to
identify the real customers of the selected banks.
3.5 RATIONALE FOR THE QUESTIONS ASKED
The following questions were asked from the customers. The reasons for asking
the questions are also stated here:-
1. What is your occupation? This is to find out the category of occupation that
patronizes any of the four banks.
2. Why do you bank with First Bank, Union Bank, GTBank or Zenith Bank?
To know the reason why the customers chose to bank with any of the
selected banks.
53
3. Are you aware of the existence of Public Relations Department of the bank?
To find out whether the customers have come into contact with the Public
Relations activities of the banks.
4. Do you consider it necessary for the bank to have Public Relations
Department? This is to find out from the customers whether the department
is relevant or not.
5. How do you receive communication from the banks? To find out how they
receive information from their banks.
6. How cordial has the bank/customers relations been? To find out how the
bank has been treating its customers.
7. How regular do you receive statement of account from the bank? To know
whether the bank has been sending statement of account to its customers on
regular basis.
3.6 LIMITATIONS OF THE STUDY
In carrying out a work of this nature there are bounds to be some limitations. One
major problem encountered in this study is that of cost, this is due to the fact that
the personal interview method used for the study is a very expensive one.
Another major limitation is that of materials, as the researchers had to visit
different Libraries and the four selected banks to source for information.
54
REFERENCES
1. ROGER D. Wimmer and Joseph R. Dominick, Mass Media Research: An
Introduction, second edition, Wad Sworth Publishing Inc, Belmont
California, 1987.
2. I Bid p72.
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CHAPTER FOUR
4.0 FINDINGS AND DISCUSSION
In the four banks under study, the duties of public relations affairs are carried out
by the department of public relations. The public relations department of the four
banks which is located at the headquarters and the zonal offices has the following
staff strength, GT bank 24, zenith bank 22, union bank 15 and first bank 13.
The minimum qualification for an applicant to be employed as an officer in the
department is first degree or its equivalent with emphasis on three key disciplines:
- mass communication, communication art and public relations.
One major objective of public relations of the four selected banks is to help derive
a lot of good will for the banks, this is done by involving in various activities that
will help project a good image for the banks.
In the four banks, the head of public relations department report directly to the
managing director. The department is under the office of the managing director.
The department is headed by a senior manager or above. He attends management
meetings.
In the banks under study, public relations are an integral part of management. The
management attaches high importance to public relations that in the event of
rationalization of departments, they will not want the public relations department
to be affected.
56
Public relations in the four selected banks under study are two-fold; internal and
external. These publics include: the customers, staff, shareholders, government
organizations, Central Bank of Nigeria, Nigeria Stock Exchange and the
environment where the banks operate. The banks have various ways of
communicating with the above publics.
Shareholders: - the bankes publish annual report at the end of every year, they put
notice for meeting in the mass media and they also publish their statement of
accounts in the national dailies, all these get to the shareholders.
For other publics, internally they have notice board where important notices are
displayed, newsletters and news update are also used. They also make use of the
mass media such as radio, television, newspapers, direct mail, exhibition and trade
fair to get across to all these publics.
The public relations of the four banks is centralized. All the public relations works
are done from the public relations department located at the bank’s headquarters in
Lagos, the regional offices also have public relations unit which work hands in
hands with the main department in the head office.
All the advertising works of the banks are handled by the public relations
department. Although they have advertising agency that handled their adverts, all
the basic works are done by the public relations department.
57
It can also be seen from the study that the two new generation banks i.e. GT bank
and Zenith bank that uses aggressive marketing in wooing customers strongly
believe in the use of public relations than their old generation counterparts i.e. First
bank and Union bank.
For instance on the relevance of public relations department to a bank, 80% of GT
bank customers said it is relevant while 70% of customers of Zenith bank said it is
relevant. In the case of old generation bank, 60% of first bank customers said it is
relevant, while 56% of the union bank said it is relevant.
4.1 ANALYSIS OF THE TABLES
The following tables illustrate the findings from the interview conducted among 50
customers of the four banks under study.
TABLE 1A
OCCUPATION OF THE CUSTOMERS
F(Frequency) % (Percentage)
Civil Servant 20 40
Company Employees 10 20
Business Men/Women 15 30
Others 5 10
Total 50 100
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Out of the 50 selected customers of the four banks interviewed, 40% are civil
servants, 20% are company employees, businessmen/women constituted 30% of
the population while the remaining 10% belongs to other occupations. The high
number of civil servants and company employees was due to the fact that this
study was conducted at the end of the month when workers usually go to the banks
for their salary and also the fact that Kogi State is predominantly a civil service
state.
TABLE 2A (GT BANK)
RELEVANCE OF PR DEPARTMENT
Relevance 40 80
Not Relevance 8 16
Undecided 2 4
Total 50 100
On the relevance of Public Relations department to the bank 80% of the customers
said it is relevant, 16% said it is not relevant while 4% were undecided.
59
TABLE 2B (FIRST BANK)
Relevance 30 60
Not Relevance 9 18
Undecided 11 22
Total 50 100
In First bank, 60% of the customers said the Public Relations department is
relevant, while 18% said it is not relevant while 22% were undecided.
TABLE 2C (ZENITH BANK)
Relevance 35 70
Not Relevance 10 20
Undecided 5 10
Total 50 100
70% of Zenith bank customers said the Public Relation department is relevant,
20% said is not relevant and 10% were undecided.
60
TABLE 2D (UNION BANK)
Relevance 28 56
Not Relevance 18 36
Undecided 4 8
Total 50 100
In union bank, 56% of the respondents said Public Relations department is
relevant, 36% said it is not relevant while 8% were undecided.
TABLE 3A (GT BANK)
CORDIALITY BETWEEN THE BANK AND ITS CUSTOMERS
Very Cordial 20 40
Cordial 24 48
Not Cordial 4 8
Undecided 2 4
Total 50 100
61
On how cordial the bank/customers relations has been, 40% of the customers said
that the relationship is very cordial, 48% said its cordial, 8% said it is not cordial
while 2% were undecided.
Very Cordial 15 30
Cordial 19 38
Not Cordial 9 18
Undecided 7 14
Total 50 100
On the relationship between the bank and its customer, 30% said it is very cordial,
38% said it is cordial, 18% said it is not cordial while the remaining 14% were
undecided.
Very Cordial 18 36
Cordial 22 44
Not Cordial 6 12
62
Undecided 4 8
Total 50 100
On the cordiality between the bank and its customers, 36% said it is very cordial,
44% said it is cordial, 12% said it is not cordial while 8% were undecided.
Very Cordial 13 26
Cordial 15 30
Not Cordial 13 26
Undecided 9 18
Total 50 100
On the relationship between the bank and its customers, 26% of the respondents
said it is very cordial, 30% said it is cordial, 26% said it is not cordial and 18%
were undecided.
TABLE 4A (GT BANK)
HOW REGULAR DOES THE BANK SEND STATEMENT OF
ACCOUNT TO THE CUSTOMERS?
63
Very Regular 7 14
Regular 12 24
Not Regular 27 54
Undecided 4 8
Total 50 100
On how regular the bank sends statement of account to its customer s, 14% said it
is very regular, 24% said it is regular, 54% said it is not regular while 8% were
undecided.
Very Regular 5 10
Regular 7 14
Not Regular 35 70
Undecided 3 6
Total 50 100
In First bank, 10% of the respondent said it is very regular, 14% said it is regular,
75% said it is not regular and 3% were undecided.
64
Very Regular 6 12
Regular 10 20
Not Regular 30 60
Undecided 4 8
Total 50 100
12% of zenith bank’s customers said they receive statement of account very
regular, 20% said it is regular 60% said it is not regular while 4% of the respondent
were undecided.
Very Regular 4 8
Regular 6 12
Not Regular 37 74
Undecided 3 6
Total 50 100
65
8% of the customers said that the bank is very regular in sending statement of a
account, 12% said is regular 74% said it is not regular while 3% were undecided.
TABLE 5A (GTBANK)
IS THERE ANYTHING UNIQUE IN THE SERVICES OF THE BANK?
Yes 40 80
No 7 14
Undecided 3 6
Total 50 100
80% of the customers said they do business with the bank because of their unique
services to them, 14% does not see anything unique in the services of the banks
while 6% were undecided.
Yes 30 60
No 15 30
Undecided 5 10
Total 50 100
66
60% of the respondents said yes, 30% said no while 10% were undecided.
TABLE 5C (Zenith Bank)
Yes 35 70
No 10 20
Undecided 5 10
Total 50 100
70% of the bank’s customers said they patronize the bank because of its unique
services, 20% said no while 5% were undecided.
Yes 25 50
No 20 40
Undecided 5 10
Total 50 100
50% of the customers said Yes, 40% said No, 10% were undecided.
67
ARE YOU AWARE OF THE EXISTENCE OF PUBLIC RELATIONS
DEPARTMENT OF THE BANK?
TABLE 6A (FIRST BANK)
Yes 20 40
No 25 50
Undecided 5 10
Total 50 100
40% of the customers said yes, 50% said No, while the remaining 10% were
undecided.
TABLE 6B (UNION BANK)
Yes 15 30
No 30 60
Undecided 5 10
Total 50 100
30% of the customers said they are aware of the existence of Public Relations
department, 60% said they are not aware and 10% were undecided.
68
TABLE 6C (GT BANK)
Yes 35 70
No 10 20
Undecided 5 10
Total 50 100
70% of the customers said they are aware, 20% said they are not aware while 10%
were undecided.
TABLE 6D (ZENITH BANK)
Yes 40 80
No 7 14
Undecided 3 6
Total 50 100
80% of the customers of Zenith bank said they are aware of the existence of the
public relations department of the bank, 14% said they are not aware and 6% were
undecided.
69
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 SUMMARY
This study analyzed the effectiveness of public relations as a tool for enhancing
customer’s satisfaction in four selected banks within Lokoja metropolis. The study
took a look at how First Bank, Union Bank, GT bank, Zenith Bank and banking in
general started operation in Nigeria.
Chapter two of the study which dealt with the literature review talked about
various definitions of public relations as given by some authors and organizations.
Out of all the definitions given, the one that is most acceptable internationally is
that one given by the British Institute of Public Relations which defines it as
“Public Relations practice is the deliberate, planned and sustained effort to
established and maintain mutual understanding between organization and its
publics”.
The chapter talked about the functions which Public Relations performs in an
organization. It went further to discuss the roles which Public Relations perform in
the banking industry. The product that the bank has to sell is its services. Being a
service rendering organization, banks have to embrace the practice of Public
Relations so as to get a good image before its publics.
70
Chapter three of the study which is the methodology talked about the method that
was used for the study. The interview methods was used. The interview was in two
parts, the first was conducted with the branch managers of the four selected banks
while the second one was conducted among 50 selected customers of the banks.
Chapter four is the finding and discussion. This chapter discussed the relevant
things that were found in the course of this work. It used tables to analyze the
responses of the fifty customers who were interviewed on certain issues.
Chapter five which is the last but not the least discussed the summary,
recommendations and conclusion of the work.
5.1 CONCLUSION
The study has shown that public relations is an important tool in enhancing
customer satisfaction in the four selected banks. The study has also examined the
strategies used by the banks in their public relations department. Public relations is
most effective tool to manage and monitor this opinion and one of the important
parts when considering customers satisfaction and organization customers
relationship which is an exercise in identifying mutual interest, values and benefit
between the four banks and their customers in belief that public support, consent
and relations are vital to achieving the organization’s long term objectives.
To enhance customer satisfaction in the four banks under study, it is necessary for
the public relations department to utilize public relations strategies. Organizations
71
especially service rendering ones like banks should carefully study and investigate
their public and community in order to understand their target audience so as to
satisfy them better.
Khondaker et al (2011) stated that customer satisfaction has become an important
aspect of measuring performance particularly for the banking and finance industry
as most banks and finance organizations offer similar products and services.
Improving customer satisfaction and loyalty is the most important factor in
maintaining as well as increasing market share for these organizations. It has also
been established by this study that better customers experience with the four
selected banks has to a large extent sustained their image because satisfied
customers are more likely to give positive remarks about them to other bank users.
5.2 RECOMMENDATIONS
Based on the findings from this work, this researcher would like to make some
recommendations which if judiciously implemented will further help to project
good image for the four bank under study.
One finding made from this study is that public relations department of the four
banks under study is centralized. All the Public Relations activities and programs
of the banks are concentrated in the headquarters, where the department has its
office. Because of this centralization, it takes a long time for Public Relations
message from the headquarters to get to other branches especially those that are
72
outside Lagos. Public Relations activities should be decentralized. This will help to
spread Public Relations activities to all branches of the banks nationwide.
Most of the customers interviewed complained of the fact that the banks have not
been sending their statement of accounts to them. I will like to recommend that the
banks should send statements of accounts at least once in a year to every customer.
The banks should try to improve on its means of communication with its
customers. Some customers complained that when there is network problem or any
other challenge leading to delay in depositing or withdrawing money, there is no
officer to explain the reason for the delay to the customers. An avenue should be
created in which customers can be informed of major issues that concern them.
Public Relations is very important in the banking industry because it sells services
rather than a physical product, it should be carried out on a regular basis to
advertise their services and promote corporate image.
It was discovered in the course of this work that the two new generation banks,
Zenith bank and GT bank used more public relations than the two old generation
banks under study i.e. Union bank and First bank. It is therefore recommended that
the two old generation banks should use more of public relations in order for their
customers to be more aware of their activities.
73
REFERENCE
1. Interview conducted among 50 selected customers of the banks under study
2. Interview with managers of the selected banks in Lokoja Metropolis
74
BIBLOGRAPHY
1. Charles Okigbo. Advertising and public relations. Enugu snap press Ltd. 1990.
2. The Origin of money/banking, a seminar paper delivered by Demola Segun of Union

Bank of Nig. Plc.
3. Mike Okereke: The role of public relations in Nigeria Published in Public relations
review 1993.
4. Our history, Union Bank: http://www. Unionbank.com
5. About us- Zenith bank: http://www. Zenithbank.com
6. History- Guaranty Trust Bank plc: http://www. Gtbank.com
7. History of first bank: http://www. Fbnbank.com
8. Frank Jefkins; Introduction to Advertising, Marketing and Public relations
9. Black Sam, Practical Public relations
10. Bowon, Paul and Ellis, Manual of Public Relations, London Heimann
11. Green O. Nwankwo, Bank Management, Principles and Practices
12. An address delivered by the former Ondo State Military Governor, Col. Ekundayo
Opaleye, on the Occasion of the opening ceremony of the seminar organized by the
Nigeria Institute of bankers.
13. Asemah S.E (2010), Perspective in Advertising and Public relations. Jos LIZBORN Press
Ltd.
14. Daramola C.A (2008), Fundamentals of professional Public Relations. Molalek Printing
enterprises.
15. Mcnamra Carter, Historical and Contemporary theories of management.

16. Raufu G (2005) Public relations Principles, meek associates.
75
17. Grung J.E (2008) Excellent Theory in Public Relations.
18. Roger D, Wimmer and Joseph R. Dominick, Mass media Research: An Introduction,
second edition wad sworth publishing Inc.
19. Interview conduct among 50 selected customers of the banks under study.
20. Interview with managers of the selected banks in Lokoja branches.
21. Ojomo, O. (2006); Principles and practice of Public Relations.
76

Chapter One 1.1 Background To The Study

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Chapter One 1.1 Background To The Study

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CHAPTER ONE

1.1 BACKGROUND TO THE STUDY

estimated. The role of Public Relations especially in a service rendering

organization like that of a bank cannot be overemphasized. It is in realization of

discipline. If anybody’s job or activities involve in communicating with other

human beings (Publics, Consumers and Customers) definitely that person is

directly or indirectly involved in Public Relations.

Public Relations is defined as relations to the general public through publicity,

which is further the functions of a corporate organization that is concerned with

informing the public of its activities in an attempt to create favourable opinions.

Public Relations can also be referred to as a social management philosophy which

screen to cover or protect the organization that one is serving.

Public Relations is a deliberate, planned and sustained effort to establish and

maintain mutual understanding between an organization and its public (BIPR).

Public Relations is not an accidental affair because it consist of a planned and

communication to think well of an organization’s to respect, support and stick with

it through trial and trouble (Byron Christian).

Public Relations is defined as the management function which evaluates public

attitudes, identifies the policies and procedures of an individual or an organization

understanding and acceptance.

The purpose of Public Relations practice is to establish two-way communication

seeking common ground or areas of mutual interest and to establish understanding

based on truth, knowledge and full information.

1. Analysis, research and defining problems

2. Drawing up a programme of action and budget

4. Monitoring the results, evaluation and possible modification

This is sometimes referred to as RACE system

Research, Action, Communication and Evaluation.

Public Relations as a managerial function in an organization is an all encompassing

within the organization.

A bank can be defined as an institution for keeping, lending and exchanging of

Public Relations in banking industry has a responsibility of articulating and

Trust Bank and Zenith Bank.

1.2 ORIGIN OF BANKING IN NIGERIA

usually referred to as the “Big Three”.

Merchantile Bank was established in 1931, it later went out of business.

1.3 EVOLUTION OF PUBLIC RELATIONS IN NIGERIA

metamorphosed into Public Relations office with greater responsibilities.

The Public Relations outfit in UAC was established in 1949 as information

department it later graduated into Public Relations department in 1960.

administration department of the company. A full pledged Public Relations

department of the company was established in 1969.

The history of Public Relations in Nigeria cannot be complete without mentioning

Relations in Nigeria. He founded the Public Relations Association of Nigeria

coordinate the organization and its various customers.

recommendations in the organization to enhance the image of the banks.

1.3 HISTORICAL BACKGROUND OF BANKS UNDER STUDY

FIRST BANK OF NIGERIA PLC

on 31st March, 1894, with a head office in Liverpool, United Kingdom.

went on to establish a leading position in the banking industry in West Africa

its role as a Central Bank.

extended to Northern Nigeria.

obtained a listing on the Nigerian Stock Exchange.

regional offices and this was reconfigured in 1992 to enhance operational

UNION BANK PLC

became known as Barclays Bank DCO (Dominion Colonial and Overseas) as a

result of its acquisition by Barclays Bank. Following Nigeria’s independence and

Barclays Bank of Nigeria Limited,

the name Union Bank of Nigeria Plc.

Government dis-invested by selling it controlling shares (51.67%) to private

organizations all within the private sector.

Figure 2: Union Bank Branch

ZENITH BANK PLC