The Impact of Privatization on the Performance of Business Organizations: A Case Study of Stanbic Bank (U)
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Date
2008-06
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study intended to investigate the impact of privatization on the performance of business
organizations; case study, of Stanbic Bank (U). With the objectives such as; determine the
privatization process in Stanbic Bank (U), establish the relation ship between pre-privatization
and the performance of Stanbic Bank (U), and establish the effect of post privatization and the
performance ofStanbic Bank (U).
The purpose of this study was to investigate the impact of privatization on the performance of
business organizations; a case study of Stanbic Bank (U).
In data collection process, the researcher used instruments such as administered questionnaire
and interviewing for primary data, and extensive library research, which data was analyzed and
presented in form of tables, percentage distribution and frequency distribution.
Therefore the study found out that, privatization benefited the organization in terms of improved
productivity, profitability, and efficiency, however, the employees were not adequately
sensitized about the privatization process in Stanbic Bank (U), in addition, the privatization
method applied in Stanbic Bank not appropriate enough, and the government had attained the
both the economic and fiscal objectives like the increase in volume of goods and services and
increase in tax revenue. It was therefore concluded that; privatization seem to have brought good
impact on the organization in terms of improved performance and the economy in general in
terms of increased investments and improved productivity. Although the doubt is still seen in
terms of the method applied in Stanbic Bank (U) (out right sale of 49% shares to the public).
Hence this has left the government still in big influence of some valuable decisions to the
organization which could impact on its performance.
Thus recommendations to the government and the management ofStanbic Bank (U) that there is
a need for a fair and efficient tax regimes, in addition an improvement in the judicial system is
necessary so that the legal system is quicker and supports the rights of borrowers and lenders,
research also recommends on the improvement on the transparency of privatization so as to solve
the problems of privatization, one of the authors recommended that another option for
privatization could be decentralizing the enterprises to local governments. There fore more
research has to be gathered to test the validity of this option as it could be a tool to solve the
problems associated with privatization.
Description
A Research Report Submitted to the School Of Business and Management In Partial Fulfillment For The Award of the Degree Of Bachelor Of Business Administration At Kampala International University.
Keywords
Privatization, Business Organizations, Stanbic Bank (U)