The Effect of Customer Service Strategies on Corporate Performance in Ghanaian Banks

The Effect of Customer Service Strategies on Corporate Performance in Ghanaian Banks

CHAPTER ONE

Objectives of the Study

The general objective of the study was to establish customer service strategies effect on bank performance in Ghana, a survey of selected commercial banks in Bantama town.

Specific Objectives

To determine the effects of human resource management strategies on performance of commercial
To evaluate the effects of technological strategies on performance of commercial
To examine the effects of service delivery environment strategies on performance of commercial banks.

CHAPTER TWO

LITERATURE REVIEW

Introduction

This chapter reviewed literature in support of customer service strategies effect on bank performance. It entails theoretical review; Resource-based view theory, Information Technology alignment model and Attribute quality service model. Also, the chapter tackled empirical review and conceptual framework.

CHAPTER THREE

RESEARCH METHODOLOGY

Introduction

This chapter presents the methodology used in carrying out the research. The chapter outlined philosophical paradigm adopted for the study, research design, target population, sample size and sampling technique and data collection instruments, validity and reliability and procedures. In addition, it explained the operationalization of the study variables as well as methods of analyzing the data.

Research Design

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The study employed a descriptive survey research design where the researcher sought to collect information from parents. This design accommodates valuable and unique argument different from using other approaches as it studies things in detail and discover what would be impossible to find if other designs was used. The descriptive design adopted because descriptive studies are not only useful for fact finding but often result in the formulation of important principles of knowledge and solution to significant problems (Yin, 2004). A descriptive survey design provided available source of information for gaining knowledge and insight into the customer service strategies and corporate performance in Ghana at selected commercial banks in Bantama Town, Kumasi County, Ghana.

CHAPTER FOUR

DATA ANALYSIS, INTERPRETATION AND DISCUSSION

Response Rate

The study targeted 61 respondents being top management level consisting of retail banking managers; branch managers; corporate managers; ICT managers and customer experience managers. From the total sample size of 65 members, 89% positively responded. Furthermore, Babbie (2007) suggested that any return rate over 50% can be reported, that over 60% is good, and that over 70% is excellent which was exceeded by the survey as indicated by the survey’s response rate. This therefore indicated that the study had more than sufficient response rate.

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Introduction

This chapter focuses on summary of the findings, conclusion and policy implications based on the objectives findings and area of further study.

Summary of the Findings

From the results majority of employees working at commercial banks are between 26 years and 35 years while the least were aged above 56 years implying that the banks were keen on attracting young employees who were vibrant and energetic crucial for the growth of the bank. The findings showed that majority of the employees had degree while the least had diplomas. These findings showed that the institutions had employees with high literacy level which plays a great role in improving the performance of the bank. The findings on the position held by the respondents indicate that a majority were customer experience managers. It also indicated that the respondents were drawn from each of the sector of the bank allowing the research to gain a clear perspective of the bank. The findings length served in the bank indicated that a majority had served between6-10 years while the least had served for over 21 years. These findings implied that the respondent had adequate experience in their area of work and were therefore in a position to provide relevant information for the study.

Human Resource Management Strategies and Performance of Commercial BanksH0_1: There is no significant relationship between human resource management strategies and performance of commercial banks From the results, the study rejected the null hypothesis (β = 0.226, p = 0.153). The regression results indicated that human resource management strategies did not have a direct effect on performance of commercial banks with a beta coefficient of 0.226 and significance of (p=0.153). These results implied that for a unit increase in human resource strategies, there were 0.226 increases in performance.

Technological Strategies and Performance of Commercial Banks

H0_2: There is no significant relationship between technological strategies and the performance of commercial banks

From the results, the study rejected the null hypothesis (β = 0.586, p = 0.000). The regression results indicated that technological strategies had a direct effect on the performance of commercial banks with a beta coefficient of 0.586 and significance of (p=0.000). These findings indicated that the adoption of ICT in the commercial affects the performance of banks.

Service Delivery Environment Strategies and Performance of Commercial Banks.

H0₃ There is no significant relationship between service delivery environment strategies and performance of commercial banks

The study rejected the hypothesis (β = 0.206, p = 0.016). The regression results indicated that service delivery environment strategies had a direct effect on performance of commercial banks with a beta coefficient of 0.206 and significance of (p=0.016). These findings showed that the service delivery environment strategies in commercial banks affect the performance of financial institutions.

Conclusions

The study found out that human resource management strategies positively affects performance of commercial banks since proper communication channel within the organization enhances communication effectiveness between management and employees in commercial banks. This therefore improves the performance of banks. It can therefore be concluded that every organizations especially the commercial banks need to strengthen reward system, improve internal and external communication and last but not least enhance job satisfaction.

The results also revealed that technological strategies enhances banks performances since internet banking has low maintenance costs leading to high levels of returns in the bank whereby customers can withdraw or deposit money through the phone than the customer walking into the bank. It can therefore be concluded that commercial banks should put up ATMs, promote internet banking and last but not least enhance branch networking.

In addition the study found out that service delivery environmental strategies positively affects performance of commercial banks, this is due to the quality of service the bank offers since every section is designed to serve every customer depending on his or her request such as inquiries, account opening and many others. In conclusion, commercial banks should ensure proper physical aspects, improve interior design of the place and last but not least promote ambience.

Recommendations

From the findings, the following recommendations were made: the study recommends that the management needs to implement proper human resource management strategies; reward system, communication and job satisfaction which enhance employee productivity hence increase firm performance; the study also recommends that management should adopt technological strategies; ATMs, internet banking and branch networking, since technology is a global phenomena that is widely used and accepted by many, Commercial banks should therefore improve and adopt technology in their day to day business. Last but not least, commercial banks should incorporate service delivery strategies since it increases customer satisfaction and improves bank performance. In a nutshell, top level managers should review the vision and mission of their institutions to strategically fit with changing customer needs in the dynamic market.

Suggestions for Further Studies

From the study the following research studies were proposed, so as to improve the findings of this study. The same study should also be carried out in other counties so as to avoid biasness of the results.

Effects of customer satisfaction on performance of commercial banks in Accra
Impacts of adoption of ICT on customer satisfaction in commercial banks in
Customer service strategies and performance of public organizations

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