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Impact of Digital Revolution on the Structure of Nigerian Banks

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Author Info
Agboola, A. A.
Yinusa, D.O.
Ologunde, A.O.

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Abstract

The study examined the extent to which digital revolution has affected the organizational structure of Nigerian banks. Twenty-five banks were selected for the study in south-western Nigeria. Interview was conducted for middle and top level managers and questionnaire was developed and administered to the other staff using a five-point Likert scale to determine the attitudes and opinions of the staff on the effects of digital revolution on the organizational structure of the banks. The mean was used as an indicator of central tendency for quantitative variables that have frequency distributions in the study. The study found that standard operating procedures, politics, culture, surrounding environment and management decisions were all affected by digital revolution. It affected the organizational balance of rights, privileges, obligations, responsibilities, and feelings that have been established over a long period of time. The revolution brought structural changes in the line and unit of command, the principles of span of control, unity of command, and scalar principle of graded chain of superiors in the studied banks. It encouraged flat organizations as decision making became more decentralized. It also altered the required skill and increased the perceived advantage of workers with computer engineering background. Authority relied on knowledge and competence and not on mere formal position The study concluded that digital revolution has changed the course of history in the banking industry leaving far reaching effects and implications on both the organizational and industrial structure. It is imperative for banks and their staff to effect proper restructuring that will facilitate optimal utilization of the benefits provided by the revolution.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16705.

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Date of creation: 28 Jul 2009
Date of revision: 08 Aug 2009
Handle: RePEc:pra:mprapa:16705

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Related research
Keywords: Digital Revolution; ICT; e-Commerce; Organizational Structure; Nigerian Banks;

Find related papers by JEL classification:
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
L89 - Industrial Organization - - Industry Studies: Services - - - Other
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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This page was last updated on 2009-12-7.


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