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WORK LIFE BALANCING AND ITS EFFECT ON EMPLOYEE PRODUCTIVITY

WORK LIFE BALANCING AND ITS EFFECT ON
EMPLOYEE PRODUCTIVITY

 

ABSTRACT

Work-Life
Balance is increasing interest in academic literature, legislation and public
sector. It is meaningful daily achievement and enjoyment in life. Organizations
have started introducing various schemes to attract, retain employees and
productivity. Majority employers support the work –life balance concept.
Work-life balance which primarily deals with an employee’s ability to properly
prioritize between work and his or her lifestyle, social life, health, family
etc., is greatly linked with employee productivity, performance and job
satisfaction. Where there is proper balance between work and life, employees
tend to put in their best efforts at work, because their family is happy.

The researcher
used Merchant bank, Koforidua branch as a case study to find out the effects
improper work-life balance has on the performance of employees in an
organization.

Concerning
methodology, data used in compiling this research were gathered from both
primary and secondary sources. The management and employees of Merchant bank
were issued questionnaires. Text Books, Magazines and News Papers on work-life
balance were also used in compiling this research.

Based on the
findings revealed from the data analysis and interpretation, the researcher
came up with some suggestions and recommendations. The major findings in this
study shows that 92% of the total respondents used for the study suffer from
stress related problems brought about by the nature of their work. Majority of
the respondents complained about common stress illness such as headaches,
stomach pains etc, and their inability to balance family responsibilities with
their jobs. However, the study went ahead to reveal that employee productivity is
greatly affected by the individual’s ability to balance work and life, as
employees with better family ties tend to be more happy and highly effective in
their work place. These findings and recommendations, in view of the
researcher, will help improve productivity and employee performance if
implemented by the organizations in Ghana as well as the government of Ghana.

 

 

 

 

 

 

 

 

 

 

CHAPTER
I

INTRODUCTION

 

Today,
work-life balance has become an increasingly pervasive concern to both
employers and employees of most organisations. Work-life balance which
primarily deals with an employee’s ability to properly prioritize between work
and his or her lifestyle, social life, health, family etc., is greatly linked
with employee productivity, performance and job satisfaction. Where there is proper
balance between work and life, employees tend to put in their best efforts at
work, because their family is happy. Most research studies have shown that when
there are happy homes, work places automatically become conflict free and
enjoyable places to be. Increasing attrition rates and increasing demand for
work-life balance have forced organisations to look beyond run of the mill Human
Resources interventions. As a result, initiatives such as flexible working
hours, alternative work arrangements, leave policies and benefits in lieu of
family care responsibilities and employee assistance programmes have become a
significant part of most of the company benefit programmes and compensation
packages.

1.1  BACKGROUND OF STUDY AND
ORGANIZATIONAL PROFILE

The
origins of research on work-life balance can be traced back to studies of women
having multiple roles. Barnett and Baruch (1985) investigated the psychological
distress connected to the balance of rewards and concerns generated by
individual women’s multiple roles as paid worker, wife and mother. They found
that positive role quality – more rewards than concerns experienced in a given
role – was related to low levels of role overload, role conflict and anxiety.
Based on their research, Barnett and Baruch defined role balance as a “rewards
minus concerns” difference score which could range from positive to negative
values.

Over the past two
decades, various studies on work-life balance practices have been conducted and
have been discussed in publications representing a number of different academic
disciplines – economics (e.g., Johnson & Provan, 1995; Whitehouse &
Zetlin, 1999), family studies (e.g., Hill, Hawkins, Ferris, & Weitzman,
2001; Raabe, 1990), gender studies (e.g., Nelson, Quick, Hitt, & Moesel,
1990; Wayne & Cordeiro, 2003), industrial relations (e.g., Batt &
Valcour, 2003; Eaton, 2003), information systems (e.g., Baines & Gelder,
2003; Frolick, Wilkes, & Urwiler, 1993), management (e.g., Konrad &
Mangel, 2000; Perry-Smith & Blum, 2000), social psychology (e.g., Allen
& Russell, 1999; Hegtvedt, Clay-Warner, & Ferrigno, 2002), and
sociology (e.g., Blair-Loy & Wharton, 2002; Glass & Estes, 1997). The
most common approach is to view work-life balance practices through a business
case lens: that is, by offering these practices, organizations attract new
members and reduce levels of work-life conflict among existing ones, and this
improved recruitment and reduced work-life conflict enhance organizational
effectiveness.

A review of the
literature, however, questions this purported link between work-life balance
practices and organizational effectiveness. The majority of studies
investigating the outcomes of work-life practices do not measure work-life
conflict, and thus cannot support this proposed mediated relationship (Eby,
Casper, Lockwood, Bordeaux, & Brinley, 2005). The mechanisms by which the
provision of work-life practices affects both employee behaviour and
organizational performance remain unclear, and under-researched (Allen, 2001;
Schutte & Eaton, 2004). The results of a number of studies reviewed in this
paper appear to suggest that work-life balance practices do not necessarily
influence levels of employee work-life conflict, but instead improve
organizational performance via other routes, such as reduced overheads in the
case of employees working from home, improved productivity Work-Life among
employees working at their peak hours, or social exchange processes arising
from perceptions of organizational support (e.g., Allen, 2001; Apgar, 1998;
Shepard, Clifton, & Kruse, 1996).

This
study examines the literature to identify the various ways in which
organizational work-life practices may influence organizational performance.
Using a wide range of studies from a variety of disciplines, the empirical
support available for the link between work-life practices and organizational
performance at both the individual and organization level of analysis is
reviewed. Integrating the literature in this fashion provides us with important
new insights regarding potential moderators and mediators of the link between
work-life practices and organizational performance, and suggests new research
questions that may further enhance our understanding of how (or if) this link
operates.

 

1.2.1 COMPANY PROFILE

According
to MerchantbankGhana.com, Merchant Bank Ghana Limited (MBG) is a limited
liability company is one of the leading Banks in the country. It was
incorporated in August 1971 and commenced business in March 1972 as the first
merchant bank in Ghana. Merchant Bank Ghana Limited (MBG) provides a
comprehensive range of banking services to its customers and clients, using
its worldwide network of correspondent banks and their agencies. The range of
MBG’s banking services includes:

  • Domestic
    and International Banking Operations for Corporate Customers, Small
    & Medium Enterprises (SMEs)  and, High Net-worth Individuals;
  • Treasury
    Services
  • Money
    and Capital Market Operations
  • Hire
    Purchase and Leasing Services; and
  • Foreign
    Remittances

The
Bank has two wholly owned specialised subsidiaries namely;

  • Merban
    Investment Holdings Limited (MIHL) – dealing in Funds/Portfolio
    Management, Money Market Operations, Investment Advisory Services,
    Trustee Services and Custodial and Nominee Services;
  • Merban
    Stockbrokers Limited (MSL) – dealing in Brokerage Services, Underwriting
    of new Issues, and Investor Search & Joint Venture Arrangement; and

The
MBG group also has the following additional specialist services tailored to
meet its customers’ needs:

  • Registrar
    Services – maintaining records of Shareholders and Creditors,
    facilitating dividend payments to Shareholders; and
  • Corporate
    Finance & Advisory Services (CFAS)- handling Corporate
    restructuring, Joint Venture Arrangement, Company Valuation, Project
    Finance; Funds Sourcing, Issuing House Services and General Financial
    Advisory Services. And also dealing in Hire Purchase transactions and
    Leasing.

The
bank has taken advantage of the opportunities offered by the introduction of
Universal Banking Business in Ghana and MBG has fully developed all three
areas of universal banking namely; Retail, Corporate and Investment. The
branch network of Merchant Bank currently stands at twenty-two (22).

Mission
As a universal Bank in Ghana, Merchant Bank (Ghana) limited is committed to
providing quality financial products and services to our customers across our
chosen market and maintaining our place as a leading and preferred financial
institution in Ghana.

Vision
To
become the leading, the most influential and best performing financial
service provider in Ghana by 2012 and one of the leading banks in West Africa
by 2015

Core
Values

  • Performance-oriented
    organization
  • All
    decisions and actions must be based on Unshakeable Facts.
  • Must
    at all times conduct business with a sense ofCompetitive Urgency.
  • We must maintain High Ethical Standardsin
    all our internal and external relationships.

The bank
has over its 30 years of existence achieved a lot, notable amongst which are:

  • The establishment of
    hire purchase and leasing business in Ghana.
  • The promotion and
    formation of the first Discount House in Ghana.
  • Handled the share issues
    of 8 out of 10 companies when there was no Stock Exchange in Ghana in the
    1970’s.
  • The initiation of the
    preparatory work in the establishment of the Ghana Stock Exchange (GSE).

1.2
PROBLEM STATEMENT

Lack
of work flexibility, high work pressure and longer working hours are stressing
out many Ghanaian workers, reducing their job performance and productivity as
well as causing broken homes. In the community, there is growing concern that
the quality of home and community life is deteriorating.  These have resulted to poor employee input
and performance at his or her job place, because an employee, who finds it
difficult to properly balance his or her family life, tends to also have
difficulties managing tasks at his or her workplace, therefore resulting in
poor employee performance. Sparks, Cooper, Fried and Shirom, (1997) in their
study provide some indication that when people spend too many hours at work,
and spend less with their families, their health and work performance begin to
deteriorate. There are various explanations for this associated with affluence,
the growth of single parent families, the privatization of family life and the
lack of local resources and facilities 
In addition, the pressures and demands of work, reflected both in longer
hours, more exhaustion and the growth of evening and weekend work leave less
scope for “quality” family time.   The
consequences include increases in juvenile crime, more drug abuse, a reduction
in care of the community and in community participation and less willingness to
take responsibility for care of elderly relatives and for the
disadvantaged.  While steps to redress
these concerns transcend work and employment, it is nevertheless argued that
the demands of work contribute to a reduced participation in non-work
activities resulting in an imbalance.

Moreover,
there is a view, widely promoted by some management writers but not strongly
supported by sound empirical evidence, that workers are less willing to display
unlimited commitment to the organization. 
One reason offered for this is the changing nature of the psychological
contract at work; turbulence in organizations has made it less feasible to
offer secure progressive careers and therefore to justify why workers should be
committed. 

1.3  RESEARCH OBJECTIVES

The
objectives of the study are:

1.      To
examine various Work-Life balance practices/programs that exist in Merchant
bank, Koforidua.

2.      To
identify work-Life balance challenges faced by employees of Merchant bank,
Koforidua.

3.      To
identify the influence of imbalance Work-Life practices on organizational
performance of Merchant bank, Koforidua, and the social life of its employees.

4.      To
identify ways of enhancing proper Work-Life balance practices amongst employees
of Merchant bank, Koforidua.

1.4  RESEARCH QUESTIONS

1.      What
Work-Life balance practices exist in Merchant bank, Koforidua?

2.      What
are the Work-Life challenges faced by employees of Merchant bank, Koforidua?

3.      What
are the influences of imbalance work-life practices on organizational
performance and social life of employees?

4.      In
what ways can proper work-life practices be enhanced to boost performance in
Merchant bank, Koforidua?

1.5  SIGNIFICANCE OF THE STUDY

This
study seeks to bring out the various work-life balance practices which Merchant
Bank has undertaken to increase its productivity and contribute its quota in
the economic development of the communities which it operates, and the country
at large. This study will therefore help enlighten management of various
organizations of the various effects of work-life balance practices on the
performance of employees in an organization. The study will also bring out
specifically, the work-life balance practices which the bank has been able to
make available to its employees. It also seeks to bring out the level of
encouragement and motivation the bank has given to its employees to work
effectively, among others. The importance of this study is therefore to
highlight the various employee work-life balance practices and how it affects
the productivity of an organization. This study will go a long way to
illustrate how organizations should treat its employees’ in-order to increase
productivity.

1.6  SCOPE OF THE STUDY

The
scope of the research will be limited to Merchant Bank at the New Juaben
Municipal Assembly in the Eastern Region of Ghana. The research will rely on
the bank for vital information as well as information from secondary source.
The research will take duration of four months to complete.

 

 

 

1.7 LIMITATION OF THE STUDY

The
researcher encountered a limitation in regards to availability of information.
Thus due to the institutions working ethics, the researcher could not get
access to vital information since it was treated as confidential  and the targeted respondent’s number was not
attained since some employees were on leave. Inadequate funds and availability
of time also became a limitation.

1.8 CHAPTER SCHEME

The
project will be organized around following chapters;

Chapter
one gives an introduction to the research work. It gives the basic information
about the company and the research being undertaken. This chapter therefore
consists of the background of the study and organizational profile, statement
of the problem, objectives, research questions, significance of the study,
scope of the study, and limitations encountered by the researcher.

Chapter
Twoconsists of the literature rgeview
and the theoretical framework

Chapter
three gives details of the research methodology. The research methodology
represents the various ways and methods which the researcher used in order to
gain his information.The chapter
consist of the study area, research design, study population, sample size and
technique, data collection methods and limitation.

Chapter
Fourgives the analysis and
interpretation of the information gathered by the researcher.

Chapter
five gives the findings, suggestions and conclusion of the researcher. Here,
conclusions will be drawn based on the findings and their implications will
also be given.