EMPLOYEES PERCEPTION TOWARDS NEW PRIVATE BANKS IN NAGAPATTINAM DISTRICT

Transcription

1 EMPLOYEES PERCEPTION TOWARDS NEW PRIVATE BANKS IN NAGAPATTINAM DISTRICT N.MANJULA Assistant Professor, PG and Research Department of Commerce, Poompuhar College (Autonomous), Melaiyur , Nagapattinam, Tamilnadu ABSTRACT The major factors of dissatisfaction for public banks are enquiry counter; while parking space for and satisfaction of private banks. However, both the banks are not lagging far behind to match the customer s expectations. The service organization creates an awareness of the importance of the minds of employees. They developed and implemented support system to teach employees behaviours, which are regarded by the customers as exemplifying excellent service. This article highlights the employees perception towards new private banks in Nagapattinam district. KEY WORDS Employees, New Private Banks, Customers Expectations, Employees Behaviours, Banker Customer Relationship INTRODUCTION There is a strong link between the employees and customers towards satisfaction of the banks quality of service and internal climate for service. A positive climate for service is essential for banks to pursue CRM strategies less bureaucratic more customers oriented, more supportive to personal initiatives. When employees have a positive view of the banks policies and practices, then customers will have a positive view of the service quality they have received. Employee satisfaction drives customer satisfaction and in a competitive market place where customers can switch suppliers, customer satisfaction is the sine qua of customer retention. The service organizations recognize the employees relation mirrors customers relations and that they are to be superior in service and the customer to be superior in their relationships with employees as well. The service organization creates an awareness of the importance of the minds of employees. They developed and implemented support system to teach employees behaviours, which are regarded by the customers as exemplifying excellent service. They set standards, which are precise and measurable and train managers, superiors and employees to perform to those standards. PROBLEMS OF THE STUDY The banking industry was chosen, because its daily routine involves interactions between customers and employees, creating various service experiences, both negative and positive. These interactions occur frequently due to the importance of banking services in daily life which relate to the financial situation of each one of the potential respondent customers. In the light of this development, it seems pertinent to focus on the study of the quality of banking service, and the banker customer relationship. Impact Factor ( GIF) 5.42 Page 54

2 OBJECTIVES OF THE STUDY 1. To analyse employees perception towards new private banks in Nagapattinam district. 2. To suggest suitable measures for improving the new private banks based on the findings of the study. HYPOTHESIS Ho1: There is a significant relationship between the new private banks and Bank Benefited through Customer Services. Ho2: There is no significant difference between different employees in the marketing, administration and human resource with respect to customer relationship management. METHODOLOGY The study is based on only primary data. Primary data have been collected through Questionnaire to the employees of new private banks. Above mentioned objectives are taken in to account to study the employees perception towards CRM practices in new private banks. SAMPLING DESIGN A total number of 80 respondents were drawn from selected new private banks in Nagapattinam District. This study is applied for quota sampling. The following table shows the sampling distribution. Sampling Distribution of the Employees in New Private Sector Banks S. No. Name of the Bank Branches in Nagapattinam district. Sample Branches (100%) II Employees (Sample Size) Administration HR Marketing Total Samples 1. AXIS HDFC ICICI KOTAK MAHINDRA INDUSIND Total STATISTICAL TOOLS USED The data collected from various sources were analyzed by applying appropriate statistical techniques. The statistical tests used were percentage analysis, descriptive analysis, rank correlation, chi- square, reliability testing, student s t test, analysis of variance (ANOVA) and Cronbatch Alpha Coefficient and factor analysis. The data have been analyzed with the help of SPSS Package. ANALYSIS AND INTERPRETATION The data gathered regarding demographic characteristics of respondents constituted age, sex, marital status, education, income and department wise. Age wise Respondents Age is employed in the study with an understanding that different age groups among the new generation private bank employees could exhibit different levels of perceptions towards customer relationship management. Age wise percentage distribution of the respondents is shown in Table 1. Table 1: Age wise Respondents S. No. Age Frequency Percentage 1 Less than age age More than The age of the respondents of the employee categorized into groups with an interval of less than 25 years, 10 years intervals and more than 46 years. In the distribution of respondents according to Table 1, age group of year was more (60 per cent) compared to other age categories. The second highest category was found to be in the age group of less than 25 years with 22 per cent. Fewer respondents were from the age group of more than 46 years and above (6 per cent). Gender wise Respondents It has been established in the study that the perception of employee has dependence on the respondents gender. Table 2 shows male and female representations of the respondents. Impact Factor ( GIF) 5.42 Page 55

3 Table 2: Gender wise Respondents S. No. Sex Frequency Percentage 1 Male Female The gender wise analysis of CRM in the employee perception is 77 per cent male and followed by female 23 per cent. Marital Status wise Respondents In this study the employees are categorized as married and unmarried as given in the Table 3. Table 3: Marital Status wise Respondents S. No. Marital Status Frequency Percentage 1 Married Unmarried The analysis of marital status reflects 60 per cent are unmarried as against 40 per cent of married employees. Education wise Respondents The educational background of the respondents was recorded initially and later the same was categorized into three groups as diploma, graduates and post graduates. Table 4: Education wise Respondents S. No. Education Frequency Percentage 1 Diploma Level Graduate Level Post Graduate Level 8 10 From the Table 4 show the educational status of the respondents under the study shows that a higher per cent (61 per cent) of respondents were graduate level. The next highest category was that of the diploma level with 29 per cent. And the least category of education was postgraduate level shows (10 per cent). Income wise Respondents The income of the respondents was collected and grouped into intervals of income as given Table 5. Table 5: Income wise Respondents S. No. Income (Per Annum) Frequency Percentage 1 Less than 1 Lakh Lakhs Lakhs More than 3 Lakhs It is noted from the Table 5 depicts that the respondents who had income brackets of more than Rs. 3 lakh were higher (47 per cent) and income between Rs. 2 and 3 lakh were 35 per cent. Respondents with income between Rs.1 and 2 lakh are 14 per cent and less than 1 lakh per year are just 4 per cent. Impact Factor ( GIF) 5.42 Page 56

4 Department wise Respondents The Department wise of the respondents were recorded initially and later the same was categorized into three groups as marketing, administration and human resources. Table 6: Department wise Respondents S. No. Departments Frequency Percentage 1 Marketing Administration Human Resources 4 5 From the Table 6 analysis on departments wise respondents reveals, respondents in administration with 57 per cent, marketing is 38 per cent and human resources is 5 per cent. CUSTOMER RELATIONSHIP OF THE BANK Today, more than ever before, the ability to maximize customer loyalty through close and durable relationships is critical to banks ability to grow their businesses. As banks strive to create and manage customer relationships, several emerging trends affect the approach and tools banks employ to achieve sustainable growth. These trends reflect a fundamental change in the way banks interact with the customers they have and those they want to acquire. In this study the following variables are used to study the perception of employees. Table 7: Bank Benefited Through Customer Services Parameters Mean Score Correlation t-value Perception Expectation Gap (P-E) Term Loan Cash Credit ** Overdraft * Discounting of Bills Letter of Credit * Loans to Farmers Loans to Small Scale Industry and self ** employed persons Housing Loans / Car Loans ** Educational Loan * Personal Loan ** *1% Level of significance, **5% Level of Significance The behaviors of customers for private banks are presented in above table. The range of mean values for perception and expectation of Private bank customers are 3.86 to 4.75 and 4.05 to 4.73 respectively indicating higher perception and lower expectations. High scores in both the parameters indicate that all the factors are quite important for the respondents. In table -7 out of the fifteen gaps only no one factor is positive all are negative, it indicate lower satisfaction for customers. This trend is also conferred by t - values hence, the stated hypothesis is accepted. Table 8: Customer Benefited Through Bank Services Parameters Mean Score Correlation t-value Perception Expectation Gap (P-E) Deposit Schemes Collection of Negotiable instrument ** Safe Deposit Values Carrying outstanding instructions of Depositors ** Portfolio Management to Customers Electronic Fund Transfer Credit Card * Demand Draft * Automatic Teller Machine (ATM) * Providing Services as Merchant Bankers Acting as Executors, trustees and administrators *1% Level of significance **5% Level of Significance Impact Factor ( GIF) 5.42 Page 57

5 The quality gap is measured and the significance of results is tested through t- tests. In Table 8 out of eleven gapes only eight factors is positive the rest is negative, positive indicate higher satisfaction for customers negative indicate lower satisfaction for customer. This trend is also conferred by t-values hence, the stated hypothesis is accepted. REGRESSION ANALYSIS OF EMPLOYEE CATEGORY (Marketing, Administration and Human Resource Management) and CUSTOMER RELATIONSHIP MANAGEMENT Regression analysis is used to analyze the variables of attracting, acquiring, retaining, CRM maintenance, strategies for CRM, CRM and technology, and impact of CRM. The following null hypothesis has been formulated Ho2: There is no significant difference between different employees in the marketing, administration and human resource with respect to customer relationship management Table: 9a. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a a. Predictors: (Constant), Impact of CRM, CRM maintenance, Attracting the Customers, Acquiring of Customers, CRM In Technology, Strategies For CRM Table: 9b. ANOVA a Model Sum of Squares Df Mean Square F Sig. Regression b 1 Residual Total a. Dependent Variable: Q8.Department b. Predictors: (Constant), Impact of CRM, CRM maintenance, Attracting the Customers, Acquiring of Customers, CRM in Technology, Strategies for CRM 1 Model Table: 9c Coefficients a Unstandardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta (Constant) Attracting the Customers Acquiring of Customers CRM maintenance Strategies for CRM CRM in Technology Impact of CRM a. Dependent Variable: Department Source: Computed from primary data * significant ant five per cent level The calculated t value of attracting the customers (t = 2.143) is significant at five per cent level. Hence, the stated hypothesis of there is no significant difference between different employees in the marketing, administration and human resource with respect to customer relationship management is rejected. However, the Acquiring the customers (t = 1.037), CRM maintenance (t =0.336), Strategies for CRM (t = 0.246), CRM through technology (t = ) and Impact of CRM (t = 0.966) is not significant at five per cent level. Hence, the stated hypothesis of there is no significant difference between different employees in the marketing, administration and human resource with respect to customer relationship management is accepted. SUMMARY OF FINDINGS The majority of employees, who strongly agree that they trust the bank, commit themselves to the acquisition of customer. Hence, majority of employees maintain good relationship with other banks which deliver service to the expectations of the customers. The respondents who had income brackets of more than Rs. 3 lakh were higher (47 per cent) and income between Rs. 2 and 3 lakh were 35 per cent. Respondents with income between Rs.1 and 2 lakh are 14 per cent and less than 1 lakh per year are just 4 per cent. Employees are trained to act with respect to the customers which got per cent and the least goes to bank ready to spend the money for customer satisfaction with the percentage of High technology with minimum cost is introduced has highest percentage score of percent and modern technology is used to identify the different customers immediately which have least percentage score of percent relatively between strongly agree and agree. Impact Factor ( GIF) 5.42 Page 58

6 The study shows that a higher per cent (61 per cent) of respondents were graduate level. The next highest category was that of the diploma level with 29 per cent. And the least category of education was postgraduate level shows (10 per cent). The behaviors of customers for private banks are presented in above table. The range of mean values for perception and expectation of Private bank customers are 3.86 to 4.75 and 4.05 to 4.73 respectively indicating higher perception and lower expectations. The eleven factors, only eight factors are positive and the rest is negative. The positive factors are indicates to supporting of New Private Banks. It is inferred that most of the customers complaint their grievances to the concerned department of new generation bank daily. While the bank employees sort out the customer problem by concerned department immediately. SUGGESTIONS Processing time of opening an account should be reduced. The bank should come up with more branches in other major cities of Tamilnadu. The bank should open more ATM networks in various places of Nagapattinam District. It is essential that the bank staff is oriented in customer relationship so as to treat the customers with dignity. In this regard, staff could be subjected to training in customer relationship management skills. In order to maintain cordial relationship between the bank and the public especially, the customer, the bank can establish a separate public relations section headed by a public relations officer. Bank should avoid malpractices such us unfair competition and concentration of credit. Banks should interact or communicate with the customers consistently and take their feedback with regard to their problems and complaints. Bank employees have to be friendly with customers without diluting the rules and regulations of the bank. Banks must introduce new ways and means that makes its customer highly delighted with its quality of services. CONCLUSION The present article concludes that, it is evident from the data, private banks are better off than the public sector banks regarding premises and administrations. The major factors of dissatisfaction for public banks are enquiry counter; while parking space for private banks. However, both the banks are not lagging far behind to match the customer s expectations. The roles of the front office people are quite important in attracting and retaining the customers as reported by the bankers of private banks and large-sized than public sector banks. Face-to-face interaction is another strategy adopted by few bankers, more particularly by rural branches and middle-sized banks. ACKNOWLEDGEMENT The corresponding author N.Manjula, would like to express his thanks to the University Grant Commission, India for sanctioning the financial assistance (F-N0. /15 dated :) to carry out the present research work. REFERENCES 1. Arun kumar, Deepali Singh, and Acharya, P. CRM in Banking: Perspectives and Insights from Indian Rural Customers, International Journal of Research in Commerce, Eco. & Management, Vol. NO: 1 (2011), Issue No.2 (June), pp Das Kallol et al,(2009), Customer Relationship Management (CRM) Best Practices and Customer Loyalty: A Study of Indian Retail Banking Sector European Journal of Social Sciences Volume 11, Number, 1, pp Dharmendra Singh, Service Failure in India and Banking Industry: A Customer s Perspective, Vininmaya, Vol. XXXII, No.2, , pp Maksud Madraswale, P.Palanivelu, and N.M.Makandar, Importance of CRM in Banking Industry Implementation of CRM among RRBs in India: A Case Study of Karnataka Vikas Grameen Bank, Southern Economist, Vol. 50, No. 3, June-1, pp Maksud Madraswale, P.Palanivelu, and N.M.Makandar, Importance of CRM in Banking Industry Implementation of CRM among RRBs in India: A Case Study of Karnataka Vikas Grameen Bank, Southern Economist, Vol. 50, No. 3, June-1, pp Mehdi Rouholamini, and Venkatesh, S. The Role of it on CRM in Banking Industry, IJBEMR- International Journal of Business Economics and Management Research, Vol. 2, Issue-12,(Dec.2011) pp Mehdi Rouholamini, and Venkatesh, S. The Role of it on CRM in Banking Industry, IJBEMR- International Journal of Business Economics and Management Research, Vol. 2, Issue-12,(Dec.2011) pp Subodh Kumar and Raj pal Sigh Rawat, Customer Relations in Banks: a Study, Southern Economist, Vol. 50, No. 9, September-1, 2011, pp Subodh Kumar, and Raj pal Sigh Rawat, Customer Relations in Banks: a Study, Southern Economist, Vol. 50, No. 9, September-1, 2011, pp Uma Sankar Mishra, and Bibhuti Bhusan Mishra, CRM in Banks: A Comparative Study of Public and Private Sectors in India, European Journal of Social Sciences, Volume 24, Number 2 (2011) pp Impact Factor ( GIF) 5.42 Page 59

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