Impact of HRD practices in creating employee satisfaction and improving customer service

in Banks
Abstracts
In the new millennium, financial resources, technology and human resources are the three
driving forces for the business. Any organization which can marshal and master these three
resources be the leader in the corporate sector. But out of the above three resources, if the
finance is easily available in the market, the technology is purchasable but the human
resource is the core strength of the organization which cannot be replicated. Banks being
service industry primarily dependent upon the human factor. Employee in a service organization
like Banks are the face of the organization as they come into contact with customers and
represent both the Bank and its products and the customer satisfaction is an overall assessment of
the service experience. A satisfied employee portrays a positive picture before the customer
leading to positive customer experience and vice versa. he customers of a service organization
can be categorized into two groups namely, internal customers !employees" and external
customers and a satisfied employee !internal customer" make satisfied customers !external
customer" and satisfied customers can in turn reinforce employees# sense of satisfaction in their
$obs and feels them motivated. Employees are both the service and the brand of the Bank and
works like a mirror of the Bank.
After %ationalization of Banks in India, Banks have gone for massive expansion of branches
resulting into indiscipline and apathy towards customer service. he working culture of these
Banks was poor and the customers# services were $ust like hi$acked. After liberalization of
economy in India, under the pressure of competition, the Bank adopted several strategies
including adoption of latest &'( practices and reformed their approach from bureaucratic to
collaborative to prepare their employees to tune up with the changing re)uirement of competitive
market. In the recent years, the perception of the public towards *+, Bank employee has
improved. his research paper is an attempt to create a link between &'( practices and
employee satisfaction and resultantly improving customer satisfaction level.
ey words! internal customers, external customer, customer satisfaction, service )uality
"ain contents
Banks being service industry primarily dependent upon the human factor. Employee in a service
organization like Banks are the face of the organization as they come into contact with customers
and represent both the Bank and its products. A satisfied employee portrays a positive picture
before the customer leading to positive customer experience and vice versa. he customers of a
service organization can be categorized into two groups namely, internal customers !employees"
and external customers and a satisfied employee !internal customer" make satisfied customers
!external customer" and satisfied customers can in turn reinforce employees# sense of satisfaction
in their $obs and feels them motivated.
-ike &indu mythology, the human body is made five materials namely .hsiti$ !earth", /al
!water", *awak !fire", 0agan !+ky", +ameera !air", an organization is made of three materials1
2" 3an !&uman 'esources"
4" 3oney !5inance"
6" 3achine !echnology"
7In the new millennium, financial resources, I and above all the human element shall be the
driving force for the business. Anybody who can marshal and master these three resources will
be the leader in the corporate sector.8
!2"
If the finance #money$ is easily available in the
market, the technology #machine$ is purchasable. But the human resource is the core
strength of the organization which cannot be replicated. he importance of people can be
best understood by the following sentences of 'obert 3c 9lean and &enry 5ord1
In the words of 'obert 3c9lean, 7A company that lost all of its e)uipment but kept its staff: and
hence maintained its skills and knowhow of the workforce, could be back in business relatively
easily. A company on the other hand that kept its machinery would never recover.8
3r. &enry ford, who said, 7ake away my building, machinery, but leave my people with me, I
will become &enry 5ord again.8
Banks being service sector has typical characteristic in comparison to industries involved in
other sectors which makes importance of the human element. he special character of service
sectors are1
High%tech service with high%touch feeling! he customer expectations are too high and
too diverse which cannot be met without use of the appropriate technology. But
whatever, the level of technology, process cannot be completed without human
intervention. In banking, the customer needs to visit the branch premises for one or other
reason and service cannot be provided unless employees serve the customer
empathetically with their intelligence along with smile. herefore, the technology needs
to be integrated into the service process in a customer;oriented fashion keeping in mind
the critical re)uirement of the customer as any mistake either on the part of the
technology or on the part of human cannot be recovered fully.
&ne time business with continuously rendered services1 ,nlike other service industry
like hair cutting saloon, hotel industry where each transaction is discrete and leads to
profit, most of the banking transactions like opening of an account, granting loan, sale of
insurance policy etc. are one time transaction but it involves the liability on the bank for
continuous flow of interactions. he implication of the continuous flow of transaction
needs to maintain personal relationship with customers and appreciate its values because
banks can#t afford to lose customers. It is the human factor which builds relationship with
customers.
Intangibility! ,nlike goods where consumers can use their sensory organs to make a
choice and evaluate their )uality before committing to purchase, the services provided by
the Bank cannot be seen, felt, tasted or touched through sensory organs. It is the most
significant )uality of service sector. he service )uality evaluation of banking sector can
be made only through perception build by the customer through interaction while
purchasing the service and interaction thereafter.
'imultaneity! his is a typical characteristic of service sector. <hile in manufacturing
sector, goods are manufactured in factory and the customer need not to remain present in
the factory to maintain )uality of the product. In service sector, the customer not only
receives the service but also participates in the service process as well as the production
resource as well. 9ustomers are more than mere consumers of service )uality output:
they are co;producers of the )uality process
!4"
.+ervices are produced and consumed
simultaneously on real time basis. herefore, neither mass production is possible nor the
)uality of service can be measured before sale. he )uality of service is actually
dependent on the interactions between employee and customer and customer satisfaction
is highly dependent upon the art of the employee in managing these interactions.
(erishability! +ince the services need to be produced and consumed simultaneously,
there is no possibility of storing and inventorying them once produced. he implication
of this characteristics is that1;
o (emand for most services is volatile and normally cannot be predicted.
o <hen demand is high there are no accumulations of stock and therefore, difficult
to maintain demand supply gap.
But it is practically not possible for the banks to put more manpower when the load is
high and reduce the manpower when load is low. herefore, the same set of manpower
has to make ad$ustment when the demand is high.
Heterogeneity! hough the characteristic of product and technology is standard, the
)uality of service is based on the attribute generated by the employee and received by
different customers. %o two services can be alike, resultantly, in the eyes of the
customers: the service of the organization becomes the service provided by the employee.
he implication of this characteristics is that1
o Ensuring consistent service )uality is challenging.
o he employee#s behavior also cannot be consistent all the time.
o he )uality of service depends on many factors that cannot be controlled even by
the supplier !employee" himself.
o he employer= manager may not always be able to ensure that service is being
performed in a consistent manner with what was originally planned, and
promoted.
)actors affecting service *uality in Banks
<henever, the customer visits the Bank#s premises, he has certain expectation in respect of
treatment to be received from the employees. +ervice )uality is the degree of actual delivery of
service in comparison to the customers# normative expectations of the service. It means that the
service )uality perceived by the customer may be different from the )uality of service actually
delivered by the Bank. he following factors that could affect the service )uality are1
echnical )uality of the product #+hat , +hether$,
o <hat the customer receives>
o <hen he receives it>
o <hether the product= service performance is consistent>
o <hether the product keeps the promise which customer perceived through
advertisement>
o <hat is the ultimate result of the product>
o <hat is the attitude of other customers consuming the service>
5unctional or process )uality #How$!
o &ow the service provider functions>
o &ow the customer receives the service>
o &ow buyer;seller interactions= atmosphere is created= maintained>
o &ow he experiences the simultaneous production and consumption of the service>
o &ow ably the promised performances are kept>
o &ow willing the employee to assist the customer and provide prompt service>
o &ow ably employees are able to put him=her self in the customer#s shoes by
seeing things through the customer#s eyes>
he physical environment #+here$!
o he place where the service are received.
o he appearance of physical facilities where the services are received.
o he tools or e)uipment which are used to provide the service.
+ervice )uality is a )uite complex issue due to complex nature of services. 9ustomers perceive
service )uality as the customer#s own perception of the service based on different factors
contributing to the service, from the process to the final outcome. <hile in case of goods, the
outcome or end result of the process is transferred to the customer whereas in sale of service in
Banks, the process is transferred. In the above factors, most of the ?what=whether= where# factors
like technical specification, physical environment are mainly constant and out of the hands of
employees but the ?how# factor !functional process" is under the control of employees and
depend upon various factors such as1
<hat employee says>
<hat is the body language>
<hat is the .nowledge, skills and attitudes level shown by employees towards the $ob>
<hat is his moral values and motivational level at the time of providing service>
&ow he does the $ob>
&ow he reacts during interaction with customers>
-he role of the internal customers #employees$ in Banks!
Employees are the mirror of Bank as what they portray is what the customers sees and uses in
their evaluation of the service experience. Employees are both the service and the brand of the
Bank and their importance to the Bank is critical because they are in position to convert
intangible !service" into tangible !product" whose impressions are imbibed in the customer#s
mind and customer feels that he has purchased a product and brought to home though practically,
he doesn#t carry any tangible.
Employee, apart from being active player in service delivery and influencing the buyers
perceptions from the Bank#s point of view, they partially works as marketers too as due to nature
of intangibility, the marketing, production, and consumption are simultaneous and employees
attitudes, behaviors and functionality can directly influence customer satisfaction who will in
turn be the spoke person of the Bank irrespective of the fact that these employees are whether
involved in marketing functions or not. External marketing of the Bank like advertisement, door
step mobilization of the product etc., the Bank is able to create customers# expectations and
make promises regarding what is to be delivered which help the Bank in attracting= bringing the
customer but through the internal marketing, the Bank is able to deliver the promises which shall
bind the customer which can be better understood by the following diagram1
9ompany
Internal 3arketing
7Enabling the promises8 External 3arketing
73aking the promise8
Employees 9ustomer
Interactive 3arketing
7(elivering the promise8
Source: unknown
+ince numbers of services are delivered in real time, the human resource strategies of an
organization are responsible for closing the gap !the difference between the customers#
expectations of the service and the actual experience" in the service performance.
Review of .iterature!
In today#s scenario the business organizations should respect the preferences of the customers
and thus make their experience a memorable and favorable one, because even if the product is
best in )uality but in case the service experience of the customer with the company is
unsatisfactory, it will lead to loss@everyone, from the business owner or manager to the
telephone operator or receptionist or the sales associate, plays an important part in how
customers view a company.
!6"

Banking being a customer oriented services industry, the customer is the focus and service
)uality and customer satisfaction is the differentiating factor.
!A"
In order to compete effectively in
globalized economy, organizations must be customer;focused.
!B"
+atisfaction C*erceived *erception D Expectation
he satisfaction level is a function of the difference between perceived performance and
expectations.
!EF"
5or being in the market for a long run, the time arises for a company to identify,
attract and retain most valuable customers that help business to sustain profitable growth.
!G"
he
workforce is the primary factor in influencing the customer#s behavior
!F"
. Employees who feel
satisfied with their $obs provide higher level of customer satisfaction.
!E"
. According to Rodney ).
/aney there is a high correlation between the overall satisfaction of the customers and handling
the problems efficiently by the management.
!H"

'eich held and .enny !2HHI" observed that there are six factors which are imperative to improve
retention1 senior management commitment: a customer;focused culture in which all employees
and managers focused their full attention on customer satisfaction: retention information systems
that tracked and analyzed the root causes of defections: empowerment of front line employees to
take actions that provided immediate customer satisfaction: continuous training and
development: and incentive systems based on customer retention.
!2I"

5leming and /im Asplund !4IIF" strongly feel that one cannot measure and manage the
employee and customer experiences as separate entities. hey add that one must manage these
human systems in tandem, one may need to reorganize. rue value and profit comes from the
employee;customer encounter in the service sector, and by measuring and managing this
interaction properly
!22"
. his is possible only through effective &'3 processes. Bank can take on
the challenge of )uality of service. <hen the internal customer !employee" is satisfied, they will
make efforts to satisfy the external customers through the service )uality. +atisfaction of internal
customers is the foundation of &'3 in banks. 'ight approach to &'3 will certainly bring about
greater employee satisfaction and organizational performance effectiveness.
!24"

'tatement of the problem and &b0ective of 'tudy!
In banking industry, the products of the Bank are similar. here is no possibility of patenting the
product and even if a Bank comes out with a new product, other Banks are able to copy and
come out with the similar product or slightly modified=improved product with different names.
Even the use of technology is also almost e)ual. 5urther, even if, the Bank engage in different
approaches in achieving a differentiation from the others for gaining more market share and
customers in the industry, it has limitation of copying. hen, what can make the difference with
their rival by which the bank is able to manage to treat customers in a way that they are pleased
with i.e. their )uality of customers# services. +ince, the nature of services are intangible,
heterogeneous, perishable, produced, and consumed at same time, it creates a challenge as well
as opportunity for the Bank to differentiate them with other competitors. (ue to complex
re)uirement of customers, a bank cannot inspect its services and products to weed out
unsatisfactory ones before they are presented to the customer and the employee is the key for
weeding out and providing the right solution for the customer.
A satisfied employee will keep the satisfied customer and satisfied customer in turn reinforces
employees# sense of satisfaction in their $obs. herefore, the Bank should attract the best human
resource, train and motivate them for demonstrating such desirable behaviors which help
customers to differentiate a gratifying service experience from a dissatisfactory one. If
employees are not satisfied with their $obs, achieving customer satisfaction will be impossible.
9ustomer perceptions of service )uality is impacted by customer;oriented behavior of employees
and the organization culture, working climate and the human resource experience that employees
have within the organization are reflected employees behavior. Employee satisfaction and loyalty
precedes customer satisfaction and customer loyalty and resultantly affects the business of the
Bank.
.eeping the above in mind, the AB Bank is a *ublic +ector Bank having branches in all parts of
India which was struggling in the era of competition implemented number of &'( initiatives to
improve the knowledge, skill and attitude of the employees and create an organization culture
climate where the employee feels proud to be part of it and gives its best for the customer
service. It has positive impact upon the Bank and the business developed more than G folds in
last 2I years. he Bank has been able to bring various business and service awards= prizes
including &' Awards in its fold and improve image in the industry. his research is an attempt
to study the following ob$ectives1;
!i" 5actors which determine the customer service with reference to employees.
!ii" <hether &'( practice improves the knowledge, skills and attitude of the employee
resultantly improving the customer service level.
!iii" <hether &'( practices improves the competence and responsiveness of employees
resultantly improving customer service.
Research "ethodology!
he present research )uestion involves 7how8 and 7whether8 )uestion, we have used both
primary data and secondary data. *rimary data are collected through a structured )uestionnaire
and the secondary data were obtained through books, in;house $ournals, website etc. he authors
by collecting information and conducting survey hope to construct a model to verify whether the
findings matches or differs from the theory behind employee behaviour, service )uality and
customer satisfaction.
'ampling (lan!
'ample was decided to be 2I branches of Bihar of the concerned *+, Bank and method of
convenience sampling was adopted so that the research can be managed and at the same time
true information could be obtained easily. he target group was 4II customers of the Bank
selected on convenience basis that were personally contacted and re)uested to provide their
feedback through the )uestionnaire. +ince the sample groups were contacted personally, the
group acceded to the re)uest and wastages were negligible and 2HG responses were received
complete in all respect.

.imitation of the study1
It is very rightly said 7%othing is perfect in this world7, similarly this research study too has
certain limitations, like1
his study is delimited to the activities of branches of one *+, bank at one city: this is
conse)uent to various limitation of the researcher like time constraint and limited
resources etc.
he research is further delimited to the extent of implementation of &' practices adopted
by a Bank to satisfy its internal customers for the purpose for satisfying its external
customers. %o other comparison has been made with other banks in the same area or
industry.
his report is based on the survey done with 4II customers of the Bank which may not
necessarily reveal the exact results looking to large size of population.
1nalysis of 2uestions and interpretation of data !
#I$ )actors affecting customer satisfaction with reference to employees! o understand
factors important which leads to customer satisfaction during interaction between employees and
customer, the author prepared a )uestionnaire of 22 items and obtained reply from 2HG
customers. It was based on convenience sampling. By doing factor analysis through use of +*++,
we observed that following factors are responsible in this regard1;
Rotated 3omponent "atri4 #a$
9omponent
2 4 6
J.2 Employees are friendly and polite. .FBE
Employees of the Bank are willing to help you.
J.4 .FH6
J.6 Employees are disciplined, punctual and provide service as
per time.
.FB4
J.A he employees have product knowledge of various
products= schemes of the Bank.
.FE4
J.B Employees of the branch understand your specific needs. .E2G
J.G <hen things go wrong, the employees show understanding
and help you.
.EIG
J.F he senior officers of the Bank are accessible to you to
whom you can submit your grievances.
.HIA
J.E In case of grievances= complaint, the senior officers of the
Bank promptly intervene in the matter for resolving the
grievance = complaint.
.HIA
J.H 'esponsiveness of the employees towards customer service
has increased in the Bank.
.FAH
J.2I he employees are competent and are able to handle the
customer problem efficiently.
.FBH
J.22 he employees are sincere and dedicated towards customer
service.
.F2H
Extraction 3ethod1 *rincipal 9omponent Analysis.
'otation 3ethod1 Karimax with .aiser %ormalization.
a 'otation converged in B iterations.
5 factors which accounts for a total of 67.85 9 of variations on the :: variables pertains to
relation between employees and customer and have been able to affect the customer
satisfaction !%
)actors J. %o.
!Item %o."
2
st
factor Lverall knowledge, skill and attitude of employees
towards customer service.
2,4,6,A,B,G and 22
4
nd
factor 9ompetence and responsiveness of front line staff. H and 2I
6
rd
factor 0rievance handling ability of supervisor F and E
#II$ Hypothesis testing! o assess the impact of &'( measures upon .nowledge, skill and
attitude and other factors, the respondents were informed that the bank has implemented various
&'( interventions during last 2I years to change the discipline, work culture and organization
climate of the bank. he respondents were asked to assess the improvement level in human
facets of the Bank and following hypothesis were formulated= tested by use of mean value and
chi s)uare test1;
;ull Hypothesis I D &'( activities have no impact upon knowledge, skill and attitude of
employees with reference to customer service.
1lternate Hypothesis I D &'( activities have impact upon knowledge, skill and attitude of
employees with reference to customer service.
2. ;o.
Items
% 3ean
+td.
(eviation
+td. Error
3ean
J 2 Employees are friendly and
polite.
2HG A.BF .E2G .IBE
J.4 Employees of the Bank are
willing to help you.
2HG A.B2 .EEI .IG6
J.6 Employees are disciplined,
punctual and provide service as
per time.
2HG A.B6 .E4B .IBH
J.A he employees have product
knowledge of various products=
schemes of the Bank.
2HG A.26 2.44F .IEE
J.B Employees of the branch
understand your specific needs.
2HG 6.HE 2.I66 .IFA
J.G <hen things go wrong, the
employees show understanding
and help you.
2HG A.2F .HFI .IGH
J..22 he employees are sincere and
dedicated towards customer
service.
2HG A.BI .E4I .IBH
2.: 2..<
Lbserved % Expected % 'esidual Lbserved % Expected % 'esidual
2 4 6H.4 ;6F.4 4 6H.4 ;6F.4
4 G 6H.4 ;66.4 B 6H.4 ;6A.4
6 22 6H.4 ;4E.4 4A 6H.4 ;2B.4
A 6G 6H.4 ;6.4 4B 6H.4 ;2A.4
B 2A2 6H.4 2I2.E 2AI 6H.4 2II.E
otal 2HG 2HG
2.5 2.7
Lbserved % Expected % 'esidual Lbserved % Expected % 'esidual
2 4 6H.4 ;6F.4 H 6H.4 ;6I.4
4 B 6H.4 ;6A.4 44 6H.4 ;2F.4
6 2B 6H.4 ;4A.4 2G 6H.4 ;46.4
A 6H 6H.4 ;.4 6F 6H.4 ;4.4
B 26B 6H.4 HB.E 224 6H.4 F4.E
otal 2HG 2HG
2.= 2.>
Lbserved % Expected % 'esidual Lbserved % Expected % 'esidual
2 A 6H.4 ;6B.4 4 6H.4 ;6F.4
4 2A 6H.4 ;4B.4 22 6H.4 ;4E.4
6 AI 6H.4 .E 66 6H.4 ;G.4
A G4 6H.4 44.E BG 6H.4 2G.E
B FG 6H.4 6G.E HA 6H.4 BA.E
otal 2HG 2HG
2.::
Lbserved % Expected % 'esidual
2 4 6H.4 ;6F.4
4 A 6H.4 ;6B.4
6 6H.4 ;44.4
A AA 6H.4 A.E
B 24H 6H.4 EH.E
otal 2HG
-est 'tatistics
J.2 J.4 J.6 J.A J.B J.G J.22
9hi;
+)uare!a"
6AE.66F 66B.6FE 62A.4IA 2FH.EGF HB.G66 2AI.6FE 4EB.FEG
df A A A A A A A
Asymp. +ig. .III .III .III .III .III .III .III
a I cells !.IM" have expected fre)uencies less than B. he minimum expected cell fre)uency is
6H.4.
he above table shows that in all the items, chi s)uare value is ranging from HB.G66 to 6AE.66F
! df is A and %C 2HG" and pNI.IB in test of all the item is significant at A degree of freedom
shows that there is significant difference in expected and observed fre)uencies. As such we
re$ect %ull hypothesis and accept the alternate hypothesis I, i.e. &'( activities have impact upon
knowledge, skill and attitude of employees which affects customer service. +ince, mean value in
all the cases is 6.HE to A.BF !more than 6.I", it proves that &'( practices improves knowledge,
skill and attitude of employees which affects customer service positively.
;ull Hypothesis II D &'( activities do not influence competence and responsiveness level of
employees towards customer service.
1lternate Hypothesis II D &'( activities do not influence competence and responsiveness level
of employees towards customer service.
2. ;o.
Items
% 3ean
+td.
(eviation
+td. Error
3ean
J..H 'esponsiveness of the employees
towards customer service has
increased in the Bank.
2HG A.AI 2.IBI .IFB
J.2I he employees are competent and
are able to handle the customer
problem efficiently.
2HG A.AF .EEI .IG6
2.6 2.:?
Lbserved % Expected % 'esidual Lbserved % Expected % 'esidual
I A 64.F ;4E.F 2 64.F ;62.F
2 4 64.F ;6I.F 4 64.F ;6I.F
4 B 64.F ;4F.F A 64.F ;4E.F
6 2F 64.F ;2B.F 2F 64.F ;2B.F
A AI 64.F F.6 AA 64.F 22.6
B 24E 64.F HB.6 24E 64.F HB.6
otal 2HG 2HG
-est 'tatistics
a I cells !.IM" have expected fre)uencies less than B. he minimum expected cell fre)uency is
64.F.
J.H J.2I
9hi;
+)uare!a"
6GA.FBB 6FA.6IG
df B B
Asymp.
+ig.
.III .III
he above table shows that chi s)uare value is 6GA.FBB and 6FA.6IG ! df is B and %C 2HG" and
pNI.IB in test of both the item, is significant at B degree of freedom shows that there is
significant difference in expected and observed fre)uencies. As such we re$ect %ull hypothesis
and accept the alternate hypothesis II, i.e. &'( activities influence competence and
responsiveness level of employees towards customer service. +ince, mean value is A.AI and A.AF
!more than 6.I", it proves that &'( activities improves competence and responsiveness level of
employees towards customer service.
;ull Hypothesis III D &'( activities do not develops culture among supervisors to understand
customers# grievance empathetically.
1lternate Hypothesis III D &'( activities develops culture among supervisors to understand
customers# grievance empathetically.
2. ;o.
Items
% 3ean +td. (eviation
+td. Error
3ean
J.F he senior officers of the Bank
are accessible to you to whom
you can submit your grievances.
2HG A.4F 2.44E .IEE
J.E In case of grievances= complaint,
the senior officers of the Bank
promptly intervene in the matter
for resolving the grievance =
complaint.
2HG A.4F 2.44E .IEE
2.8 2.@
Lbserved % Expected % 'esidual Lbserved % Expected % 'esidual
I E 64.F ;4A.F E 64.F ;4A.F
2 4 64.F ;6I.F 4 64.F ;6I.F
4 E 64.F ;4A.F E 64.F ;4A.F
6 24 64.F ;4I.F 24 64.F ;4I.F
A AE 64.F 2B.6 AE 64.F 2B.6
B 22E 64.F EB.6 22E 64.F EB.6
otal 2HG 2HG
-est 'tatistics
J.F J.E
9hi;
+)uare!a"
6IH.44A 6IH.44A
df B B
Asymp. +ig. .III .III
a I cells !.IM" have expected fre)uencies less than B. he minimum expected cell fre)uency is
64.F.
he above table shows that in the above items, chi s)uare value is 6IH.44A ! df is B and %C 2HG"
and pNI.IB in test of both the item is significant at B degree of freedom which shows that there is
significant difference in expected and observed fre)uencies. As such we re$ect %ull hypothesis
and accept the alternate hypothesis III, i.e. &'( activities develops a culture among supervisors
to understand customers grievance empathetically. +ince, mean value in all the cases is A.4F
!more than 6.I" in both the cases, it proves that it improves in positive direction.

;ull Hypothesis IA; &'( activities have no role in changing work culture of the Bank.
1lternate Hypothesis IA; &'( activities have role in changing work culture of the Bank.
;o Item 'trongly
1
g
r
e
e
1gree 'omewhat
agr
ee
Disagree 'trongly
D
is
a
g
r
e
e
:< -here has been a positive change
in the work culture of this
Bank.
:>= :7 @ : <
ST AGR
87%
AGR
7%
SOM AGR
4%
DISAGR
1%
STDISAGR
1%
+ve change
HAM respondents feel that there has been a positive change in the work culture of this Bank,
AM are partially agreed and only 4M disagreed. Ln statistical analysis, the table below shows
that 9hi s)uare value of 4F6.46B ! dfCA, %C2HG", pNI.IB is significant at A degree of freedom,
showing that there is significant difference in expected and observed fre)uencies. As such we
re$ect null hypothesis IK and accept alternate hypothesis IK, that is, &'( activities has created
positive work culture in the Bank.
Lbserved % Expected % 'esidual
2 4 6H.4 ;6F.4
4 A 6H.4 ;6B.4
6 2F 6H.4 ;44.4
A AF 6H.4 F.E
B 24G 6H.4 EG.E
ota
l
2HG
-est 'tatistics

9hange in work
culture
9hi;
+)uare!a"
4F6.46B
(f A
Asymp. +ig. .III
a I cells !.IM" have expected fre)uencies less than B. he minimum expected cell fre)uency is
6H.4.
3onclusion!
9ustomers perceive services in terms of )uality of product and overall experience. Before,
2HFI#s the employees were considered as cost and necessary evil for the organization. But after
the advent of the &uman 9apital theory in 2HEI#s, the organization started realizing that the
employee are the core strength of the organization and only competent and committed personnel
makes an edge over the competitor. <hen it comes to building great organization the most
urgent business challenge is finding and keeping great people employees.
he &'( activities of an organization is directly or indirectly responsible for the satisfaction
level of employees resultantly which affects customer satisfaction level. -ooking to the
importance of the role of employees in the organization, it is necessary to e)uip the employees to
carry out their function successfully. here is necessity to develop their $ob satisfaction. /ob
satisfaction can be caused by1
*ossession of knowledge, skill and attitude of employees.
he treatment given to them by the employer= management.
Authority given by the management to serve the customers.
he culture developed by the organization towards customer service.
<illingness and ability to deliver )uality services, and stay motivated to perform in
customer;oriented and service minded.
he organization can develop several strategies to develop the competence, commitment of the
employees and develop customer oriented organization culture through the following wheel1
Human Resources Strategies Wheel (Wilson et al, 2008) quoted in The Importance of
People on Delivering Service Quality: A study in Svenska Handelsanken of !"vle
26
Effective HR functions

Better HRM

Satisfied Internal customer

Better Service Quality

Delighted External ustomer

Better gro!th " #rofitability

Success of the Ban$

References
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