The International Journal of Professional Management - ISSN 20422341
An Exploratory Study Between Collection and Recovery Team Discretionary Effort and Performance: A Case Study on Regional Credit Control Centre of a Malaysian Bank in Johor
Volume 14, Issue 4, November 2019
David Raj Arumugam
DBA (VU School of Management) (Mantissa College)
davidraj.arumugam@gmail.com
William CHUA
PhD (Management) (MMU), MBA (Henley), BSc (Maths/Ed) (USM), MMIM, MIIKM,
Honorary Fellow (IPMA, UK), Professor and DBA examiner, IPE Management School, Paris
Abstract
The aim of this case study is to explore the relationship between the discretionary effort of the Collection and Recovery Team (CRT) and causes of inconsistency in achieving high performance at a regional credit control centre. This study was driven by inconsistent and poor performance of the CRT, which caused an increase in impaired loan and financing. This may be caused by poor team discretionary effort from the CRT.
Black (2015), states that the literature focusing solely on discretionary effort is limited and has yet to be effectively measured and studied. Barrick et al (1998), argue that little is known about the influence of team performance and suggest that contemporary organisation has yet to achieve the maximum benefit from work teams.
This research combines the Ability-Motivation-Opportunity (AMO) model for higher performance and Entrepreneurial Cognitive Theory as the litmus test for CRT discretionary effort during collection and recovery operations towards high productivity and performance.
In order to uncover the respondents experience, thinking and feeling, this single case study is guided by the “worldview” of epistemological interpretivist philosophies approach to data collection. The qualitative research design is to collect primary data from the respondents and adopt the pattern matching approach to shape the conclusion.
Positive discretionary effort can make the difference between excellent and mediocre performance. The AMO model advocates that high ability, motivation and participation promote high discretionary effort towards high productivity and performance. However, high ability, motivation, and participation can reach saturation point, after which there is no discretionary effort. This research uses entrepreneurial mindset as conduit towards consistent high discretionary effort.
The study found no literature that defined discretionary cognition. The observable evidence of discretionary cognition is to observe performance behaviour. By relating the discretionary effort behaviour pattern to entrepreneurial behaviour, similarities between behaviours can be identified. Therefore, the entrepreneurial discretionary effort is the entrepreneurial mindset of alertness to opportunity, heuristic-based reasoning, and self-efficacy, which together promote high performance. Existing researches has found that a small shift in mindset can produce a big systemic change. This validate the concept of influencing the mindset to produce consistent discretionary effort, especially when the AMO model has reached saturation point.
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