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Factors That Affect Quality of Customer Service in the Banking Industry in
Kenya: A Case Study of Postbank Head Office Nairobi
Lawrence N. Kimando
(Corresponding Author)
Jomo Kenyatta University of Agriculture and Technology
P.O Box 62000-00200, Nairobi, Kenya
School Of Human Resource Development
Entrepreneurship and Procurement Department
Phone: +254-710288415
E- mail: [email protected]
Mrs. Grace Wachera Njogu
Kimathi University College
P.O Box 375, Mweiga, Kenya
Faculty of Commerce
Phone: +254-722-686720
E- mail: [email protected]
Abstract
Customer service is an integral factor in the success of any firm and therefore a great
deal of professionalism is required of the provider with an ever-increasing competition. It
is no longer enough to satisfy customers. You must delight them. A lot has been done to
build a stronger customer focused culture through training programs which have been
tailored to meet every customers need and ensure satisfaction. However there is still
much that has to be done hence the reasons why the study sought to find out the factors
that affect quality customer service in financial institutions in Kenya. Investigation was
done to establish whether human resource factors such as training, staff motivation and
job satisfaction, and product range affect the quality of customer service. The study
recommendation was that Post bank need to continuously endeavor maintaining a
motivated workforce.
Keywords: customer service, satisfaction, quality and excellent
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1. Introduction
1.1 Background of The Study
In today increasingly competitive environment, quality service and customer satisfaction are critical to
corporate organizations. Delivering high quality service is linked to increased profits, cost savings and
corporate image. Customer satisfaction is the route to sustained high performance. Organizations should
be aware of the fact that customer dissatisfaction leads to defection and long term losses. Ensuring quality
customer service is everybody’s business in the organization. However, it is the top management
responsibility of creating an environment that fosters customer driven services in a customer oriented
organization (Lovelock1984).
Many companies have realized that profits can be made by satisfying customers. In many instances, this
has meant a complete reorganization of the company from research and development and manufacturing
to marketing and distribution, aimed at giving customers what they want, when they want it and how hey
want it. Behind the approach is a customer-focused philosophy aimed at delivering the services that
customer seek, market share and profits are derived by keeping close remote customers (Bradley
1995).To be successful, a customer focus must start with a forceful commitment from senior executives.
At the same time, it must be acknowledged that employees who deal directly with customers are in the
key position to ensure that a marketing plan works. Innovative companies ensure high motivation among
such employees by empowering them to solve customer problems on the spot. The performance of the
company’s products and services from the consumer’s point of view is evaluated and a level of
satisfaction determined. The greater the levels of satisfaction, the more consumers are expected to reward
the company with their long-term loyalty, which should result in healthy profits ever a long period of time
(Bradley, 1995).
Customer service is responding to customer needs and expectations in a way that will make them have a
memorable experience and motivate them to come back and to tell pothers. In this, competitive world,
business organizations must understand the importance of customer as its future or growth is concerned. It
must understand that its existence lies in the hands of the customer and therefore the company should
make many efforts at all costs to attract, maintain and capture customer’s loyalty. It should seek first the
needs and wants of the target market and deliver them in an efficient and effective way that satisfies the
target market (Maxhand & plowman 1992).
1.1.1 Profile of Post bank
Postbank as a service industry was founded in 1970 under the management and control of East African
Post and Telecommunication. In 1978 the Kenya Government established its own Post Office Savings
Bank by an act of parliament (KPOSB ACT CAP 493B of the Laws of Kenya). The mandate of the bank
is to encourage thrift and inculcate savings habits among Kenyans, provide affordable saving facilities
and instruments and pool personal; savings for National development. In 1990, the act was amended to
allow the bank establish and operate a company for the purpose of undertaking business and other related
financial services in Kenya. The amendment also allowed the bank to in consultation with relevant
regulatory authorities offer payment services i.e. credit card and money transfer services. The bank has
adopted a regional and branch strategy. Currently the services are offered through a network consisting of
6 regions, 91 branches, agents and post office (Postbank Bulletin 2009).
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1.2 Statement of the Problem.
Due to the changing technologies, pressure to achieve corporate objectives, need to improved productivity
and profitability, need to control operation costs and curb wastage, there is need to improve on customer
service in banking industry. Previously, service providers hardly acknowledged the importance of
customer service. Currently the modern customer expects to be treated as an equal partner with courtesy
and efficiency thus need of organization to make the customer feel the value of using its products or
services is greater that the price the customer if paying (Bradlley,1995).
Many financial institutions have registered in Kenya since the time of independence. This has led to
increased competition in the industry. Every financial institution is competing in order to get that one
customer. It therefore calls for extemporary service in order to attract and retain the current customers
thus the need for the institutions to be innovative and creative to win the customer’s trust and loyalty.
Postbank is not exceptional in the field and thus it is facing challenges in an attempt to attract and retain
customers. Therefore this study intends to investigate the factors that affect quality of service in Post
bank.
1.3 Purpose of the study
The purpose of the study was to investigate the factors that affect quality of service in Post bank.
1.4 Objective of the study
To find out the human resource factors that affect quality of customer service at Postbank
1.5 Research Question
This study intends to answer the following question
To what extend has the human resource factors affected the quality of customer service at Postbank?
Significance of the Study
This study will help the management of Postbank in identifying areas which they need to improve in
order to improve quality of service to its customers. It will assist them to know how, when and where to
put more resources in order to improve on the services. It will also help customer care department to point
out areas of weakness and improve on them so as to offer quality customer service. The study also
exposes the researcher to a wider knowledge on how to carry out other similar studies in the future.
1.6 Conceptual Framework
The conceptual framework of factors affecting quality of customer service will be examined as illustrated
below. The independent variable is human resource factors and the other variables that affect the quality
of customer service. The dependent variable is quality of customer service.
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Independent Variables
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Dependent variables
Human resource
Factors
Quality of customer service
Other factors
Figure 1.1: Conceptual framework
Figure1.1 Above shows that the dependent variable is quality of customer service. The independent
variable is the human resource factors and the other variables that affect the quality of customer service.
2. Literature Review
2.1 Introduction
Customer service is a concept-taking root in Kenya. The banking technologies have seen immense
changes making the industry a leading showpiece of technology expertise in service delivery to customer
and the general public as whole. Quality customer service is crucial in service delivery. It maintains that
by understanding and meeting clients needs, Postbank can improve the quality of its services. Businesses,
which provide excellent service to their customers, yield many benefits to both business and to customers.
Companies which concentrate on giving excellent customer service can often rely on word of mouth to
boost the number of customers rather than advertising. Dissatisfied customers can seriously damage the
reputation of a business and keep new customers away (Caryforth, Rawlison & Weld, 1993). A customer
is the only one key focal point for business in the world. A customer is anybody who buys goods and
services for his or her own use or for selling (Lesley & Faure, 1992).
2.2 Customer Service
Customer involves task oriented activities other than proactive selling that involves interactions with
customer in person be telecommunications or by mail. This function should be designed, performed and
communicated with two goals in mind. That is customer satisfaction and operational efficiency. Services
are given face to face, interactions and behavior of the service provider is reflection of what happens in
the firm within (Lovelock, 1984). Marketing of financial services is much broader and more complex
with a lot of interaction between the organization and also between the service made, sold and consumed.
The customer perception of the service is drawn from the personality and behavior of the person. Quality
customer service is associated with attitude, a way of thinking and philosophy of doing business that
emphasizes a strong commitment and a sincere dedication to satisfying customers. It advocates making
satisfaction the first priority of the company (Lovelock 1984).
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It is important to know your customer’s demographic characteristics that are age, sex, education levels
and occupation. Also their personal characteristics like beliefs, attitudes, preferences, expectations and
social habits. Know how a customer is handled because we learn from complaints therefore we have to
respect and treat our customers well. The way we solve their problems has crucial long-term
ramifications, top customer loyalty and success of our organization. When employees communicate well
with customers and provide the high quality service they want, there is rarely a need to redo procedures to
please customers. Organizations that make specific efforts to meet customers needs retain the old
customers and gain new customers (Martin 1989).
2.2.1 Who is responsible for customer service?
Ensuring quality service is everybody’s business in the organization. However, it is mostly a top
management responsibility of creating an environment that fosters customer driven services in a
customer-oriented company. Top management consistently
evaluates the importance of being a
customer-focused enterprise and putting interest of the customer a head of all other clients of the
company’s resources. Achieving incredibly good customer service is a direct result of having incredibly
good managers (Saleem, 1997)
The interrelationship between customer service and management is so important that organizations which
do not embrace it are their own peril. Many firms have attempted to improve customer service without
addressing fundamental issues requiring management change. The value of incredible customer service
should be deeply embedded within the culture of the organizations and within the personal benefits of
every serving member of the organization. The firm’s culture should incorporate honesty and openness,
flexibility and an environment where full potential can be reached and desire to listen to customer and
staff (Mantle, 1993).
2.2.2 Importance of customer Service
The success of any business organization is determined by customer service. Proximity to customers is
crucial since they are often the best source of information. A customer’s perception of service quality is
important as the actual quality, which can be measured against specifications for the product or service.
Quality customer service will make the customer much delighted. Customer’s loyalty will turn lead to
more repeat business. Delighted customers are company’s best salesman and happy customers continue
proclaiming about the quality service they receive to other customers (Maxhand & Plowaman, 1992)
The typical customer satisfaction index is directly related to perceived ability of individual service
organization to meet the service time requirement. Customers leave dissatisfied when they feel have spent
too much time on something which would take less long. Quality is perceived objectively and
subjectively (Blummberg, 1991).
2.3 Training
Training is the process of increasing knowledge and skills of an employee for doing particular jobs. It is
an organized activity designed to create a change in thinking and behavior of people and to enable them
do their jobs in more efficient manner. It is also imparting technical knowledge, manipulative skills,
problem solving ability and positive attitudes (Salem, 1997). The purpose of training is to improve
knowledge and skills and to change attitudes. It is one of the most important motivator and is the key to
improved organizational performance. It helps to reconcile the gaps between what should happen and
what is happening. New skills and aptitudes are required to operate effectively top the new techniques and
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equipment. Workers have to be trained for new jobs and for handling the present jobs more effectively.
New employees must be trained properly so that they may become efficient. Existing employees must be
trained for taking up high level jobs. Training is useful not only for the organization but also for
employees. Effective training enhances knowledge, skill and behaviors of the people their performance.
Improved performance will lead to increased productivity, increased profits for the organization and
therefore good results of investing in training (Mullins, 2002).
Any organization that wants to succeed and continue to succeed has to recruit and maintain a workforce
consisting of people who are willing to accept change and to learn and develop continuously (Munyiri,
1996). A properly designed and conducted training course can bring about increased executive
management skills, development in each executive of a broad background and appreciation of the
company’s overall operations and objectives. Greater delegation of authority because executive down the
line are better qualified and able to ensure increased responsibilities. Training can be undertaken
internally by using special structure or externally through courses (Leisley, 1974).
The smooth and efficient running of an organization depends directly on how well its employees almost
invariably need some form of training before they can keep up their work while the older employees will
require training to keep them abreast with technological development. They must from time to time be
assisted to perform better in their present positions through some form of training and also be prepared for
possible promotions and transfers (Waweru, 1998). Though training has different models and
frameworks, each covers broadly the same cycle but there is no single best approach to training since the
most suitable method depends on the purpose of the training, its subject matter, and size of audience and
fiancés available (Marchington & Wilkson, 1997).
According to Cole, the benefits of training are minimize learning costs, improve individual team and
corporate performance in terms of output quality, speed and overall productivity. Improve operational
flexibility through multi skilling. Attracting high quality employees by offering learning and development
opportunities, increasing their level of competence, enhance their skills, enabling them to obtain more job
satisfaction, to gain higher rewards and to progress. Increase employee commitment by encouraging them
to identify with the mission and objectives of the organization, provide knowledge and skills that help
employees manage change. Helps develop positive culture in the organization; provide higher levels of
service to customers (Cole, 1997).
Training requires logical systematic approach otherwise, it can be wasteful. After every training program
there should be an evaluation to measure its cost benefits
Training policy
Establishing training organization
Evaluating training
identify training needs
Plan training
Carryout training
Source (Cole, 1997).
Figure 2.1 Training cycle
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2.4 Motivation
Employee’s motivation to work consists of all drivers, forces and influences, conscious or unconscious
that causes the employee want to achieve certain aims. Employees should be induced to work harder,
faster, and more efficient and with greater enthusiasm. Organizations reward systems may be applied to
the first motive and job design to the later. A person’s motivation could be greatly influenced by his or
her unconscious mind. (Sigmund 4.5) Skinners’ theory (5.3) implied that motivation emerges from the
interplay of stimulus and response. For example poverty causes the search for work and once the
individual obtains employment, works hard so as to maximize income.
Handy developed another of the process theories of motivation. He suggested that for individual decision
there is a conscious assessment of three factors, which he terms the motivational calculus. The factors are;
the individual’s needs the desires results and the E factor. He suggested motivation in organization be
increased when intended results are made clear and when there is feedback on performance. Also he
suggested that individuals are more committed to specific goals which have helped to set themselves
(Handly, 1991).
The equity theory attempts to explain satisfaction with outcomes and predict resulting changes in
behavior, this theory defines motivation in terms of perceived equity between the efforts a person puts
into a job and what he received in return compared to other persons similar position. The equity theory
holds that: - perceived inequity create tension within a person. This tension motivates a person to restore
equity. The strength of the resulting behavior will vary directly with the magnitude of the perceived
inequity.
Perceived inequity
Tension Oriented
Motivation to
restore equity
Behavior carried
out.
Source: (Adams, 1971)
Figure 2.2 Adams theories on perceived inequity
People are motivated to satisfy five categories of needs and these are: Physiological needs, the need for
food, water, shelter, clothing and air. Safety needs the need for security and protection. Social needs, need
for friendship, affection, acceptance and love. Esteem –once social needs are met, they develop esteem
needs like recognition, status. Self-actualization these are the feeling of self-fulfillment and realization of
ones potential (Adams, 1971).
Maslow sought to explain why different people are driven by particular needs at particular times. His
answer was that human needs arranged in hierarchy from the most pressing to the least. People will try to
satisfy their most important needs first, after which they cease to be current motivator and so the person
moves on to satisfy the next important need. Maslow suggested that individuals are motivated by five
levels of needs. Physiological needs- The need for food, water, air shelter. Security: These include the
need for security and protection. Social needs- Most people desire affection. They want to belong to a
community and feel wanted e.g. they seek groups, religion and culture. Esteem needs- They are needs for
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recognition, authority and influence over others. Self actualization- These are feelings of self fulfillment
and realization of ones potential (Maslow, 1967).
2.5 Job satisfaction
Job satisfaction is the key to a happy work life. It leads the way to advancement in career. Job satisfaction
is a subjective indicator that indicates how content an individual feels while performing his/her duties. It
is subjective in the sense that it cannot be defined by a single measurement alone. Job satisfaction is a
derivative of a multitude of factors involving opportunity, stress, leadership, work standards, fair rewards
and adequate authority (Onstroff, 1992).
Job satisfaction is a positive, emotional reaction to one’s work that results from the meeting or exceeding
of individual worker wants and needs. It is the alignment between the person and circumstance that
achieves this positive regard. A work situation that is experienced as satisfying to one-person will not
necessarily be experienced as satisfying to another person. Not only are the psychology and goals of
individuals unique, but work situations entail a multitude of factors that impact satisfaction such as norms
goals, values, rewards, involvement and effort (Locke, 1976)
Job satisfaction is defined as the difference between the amount of rewards workers receive and the
amount they believe they should receive. It results when there is a fit between job requirements and the
wants expectations of employees. Job satisfaction emerges as an employee gains more and more
information about the work place (Applebaum, 2003). Job satisfaction is a general attitude of the workers
constituted by their approach towards the wages, working conditions, control, promotions related with the
job, social relations in the work, recognition of talents and some similar variables, personal
characteristics and group relations apart from the work life. (Blum & Naylor ,1968).
Robbins defines job satisfaction as an individual’s general attitude towards his or her job. He further
elaborates that it represents an attitude rather than a behavior. Robbins disposes the belief that satisfied
employees are more productive than the dissatisfied employees. He states although much evidence
questions that assumed casual relationship, it can be argued that advanced societies should be concerned
not only with the quality of life that is concerns such as higher productivity and material acquisitions but
also with its quality. According to him researcher with strong humanistic value argues that satisfaction is
a legitimate objective of an organization (Robbins, 2008).
Job satisfaction is one part of life satisfaction. The nature of coworker’s environment off the job indirectly
influences his or her feelings on the job. Similarly, since a job is an important part of life for many
workers, job satisfaction influences general life satisfaction. The result is that is a spill over effect that
occurs in both directions between job and life satisfaction. To the worker job, satisfaction brings a
pleasurable emotional state that often leads to appositive work attitude. Attitude is generally acquired,
innovative and loyal. For the organization, job satisfaction of its workers means a work force that is
motivated and committed to high quality performance. Increased productivity – the quantity and quality
of output per hour worked seems to be a byproduct of improved quality of working life (Lall & Zaidi,
2008)
Job satisfaction is a self-reported positive emotional state resulting from the appraisal of one job or from
job experience (Locke, 1976). This attitude towards work is thus necessarily within the context of the
work environment, which includes not only the job and organizational characteristics but also the
interaction of the two with worker characteristics (Rousseau, 1978).
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3.0 Research Design and Methodology
3.1 Introduction
This chapter discusses research methodology which was used by the researcher. It covers the research
design, target population, sample and sampling procedure, instrumentation, data collection and data
analysis and presentation.
3.1 Research Design
The research methodology used in this research is descriptive approach. Descriptive research involves
field survey where the researcher goes to the population of interest ask certain issues about the problem
under the study. Descriptive research aims to gather data without any manipulation of the research context
and deals with naturally occurring phenomena where the researcher has got no control over the variables
(Mugenda & Mugenda, 1999)
3.2 Target Population
The study targeted Postbank employees who are stationed head office and Nairobi branches. The target
population was one hundred and forty (140) employees comprising of the management employees and
unionisable employees who work in the above-mentioned areas.
3.3 Sample and sampling Procedure
The total target population was one hundred and forty (140) and a sample size of ninety eight (98)
respondents was drawn representing seventy percent (70%). Of these, thirty eight (38) were from the
management staff and sixty (60) from the unionisable staff. The researcher adopted stratified random
sampling, which aimed at achieving desired representation of the population. Stratified random sampling
is a method of sampling that involves the division of a population into smaller groups known as strata.
The strata are formed based on members shared attributes or characteristics. A random sample from each
stratum is taken in a number proportional to the to the stratum’s size when compared to the population.
Table 3.1 Sample size
Classification
Target population
Percentage
Management staff
38
39%
Unionisable staff
60
61%
Total
98
100%
3.4 Instrumentation
Primary data information for the study was obtained through a structured questionnaire administered by
dropping the questionnaire and picking them after a period of one week.
3.5 Data Collection
The data was collected using questionnaires because it was the most practical and easiest tool for
collecting the data under the prevailed circumstances. The questionnaires were dropped to the respondents
and a time frame of one week was given to allow the respondents’ time to read, understand and give
accurate answers. Secondary data was collected from the books and journals
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3.6 Data Analysis
Data collected was checked for completeness and consistency. The result was analyzed by descriptive
statics. Microsoft excel was used to represent the data in graphs, pie charts and tables.
4. Data Analysis, Presentation of Findings
4.1 Introduction
This chapter deals with presentation of the findings of the responses. The main purpose of the study, its
objectives and the formulated research question was to investigate factors affecting the quality of
customer service in Postbank.
4.2 Response Rate
A sample size of 98 employees was selected and questionnaires were distributed to them.
Table 4.1 Response Rate
Questionnaires Distributed
Returned
Percentage
98
82
84%
Source: Author (2011)
Although 100% response was expected, only 84% was received. This was considered a representative of
the target population as the opinion of employees regarding factors affecting quality of customers services
industry in Kenya was captured from the sample size.
4.3 Respondents on Gender
Table 4.2 Gender
Gender
Frequency
Percentage
Male
43
43%
Female
47
57%
Total
82
100%
Figure 4.1 Gender
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Statistics from the researcher revealed that most respondents were female constituting 57% and 43%
representing male.
4.3.1 Length of Service
Table 4.3 Length of Service
Length of service
Frequency
Percentage
1-8 years
25
30%
9-16 years
31
38%
17-24 years
18
22%
8
10%
82
100%
Above 24 years
Total
Figure 4.2 Length of service
Most of the respondents have service in the bank for between 9-16 years constituting 38%. Those who
have served for 1-8 years 30% , 17-24 years, 22% and above 24 years, 10%.
4.4 Position in the organization
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Table 4.4 Position in the organization
Management
No. of
Questionnaires
Response
Non-Management
Percentage
No. of
Questionnaires
Response
Percentage
5
Response
38
28
74%
60
4
90%
-
10
26%
-
6
10%
38
38
100%
60
60
100%
Nonresponse
Totals
Statistics from the above table shows that most of the respondents were from the non managerial position
while those from the management constituted 34%. The targeted sample from the management was 38
and the ones were 28 and the ones responded were 28 which represented 74%.
4.5 Response on staff motivation
Table 4.5 Staff motivation
Responsiveness
Frequency
Strongly Disagree
Percentage
7
8%
Disagree
18
22%
Agree
40
49%
Strongly Agree
17
21%
Total
82
100%
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Figure 4.3 Staff motivation
70% of the respondents indicated that they are motivated to work for the bank. This is evident the 49%
who were in agreement and 21% who strongly agree. 30% of the respondents are not motivated.
4.6 Response on Employment of Staff That Are Well Trained For the Job
Table 4.6 Employment of staff that are well trained for the job
Responsiveness
Frequency
Percentage
5
6%
28
34%
46
56%
3
4%
82
100%
Strongly Disagree
Disagree
Agree
Strongly Agree
Total
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Figure 4.4 Employment of staff that is well trained for the job
Most of the respondents agreed that Postbank employs staffs who are well trained for the job representing
60%. Only 40% were of the opinion that Postbank does not employ staffs that is well trained for the job.
4.6.1 Response on whether post bank conducts continuous in-service training for its staff members as
expected.
Table 4.7 Continuous in-service training for members of staff
Responsiveness
Frequency
Strongly Disagree
Percentage
9
11%
Disagree
15
18%
Agree
53
65%
5
6%
82
100%
Strongly Agree
Total
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Figure 4.5 Continuous In-service training
71% of the respondents were of the opinion that Postbank conducts continuous in-service training for its
staff members as expected while 29% of the respondent disagreed with the opinion.
4.7 Response on job satisfaction
Table 4.8 Job satisfaction
Responsiveness
Frequency
Strongly Disagree
Percentage
9
11%
Disagree
11
13%
Agree
48
59%
Strongly Agree
14
17%
Total
82
100%
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Figure 4.6 Job satisfaction
From the data above, 76% of the respondents were satisfied with their job. It was evident that 24% of the
respondents were not satisfied with their job.
The findings of objective one are that most employees are well motivate, well trained staff are employed,
there is continuous service training for employees and there is job satisfaction.
4.8 Post Bank Offers Good Products to Its Customers
Most of the respondents representing 60% agree that Postbank offers good products to its customers. 40%
of the respondents disagreed. To them Postbank does not offer good products to its customers.
4.8.1 Customer satisfaction with the products
Table 4.7 Customer satisfaction with the products
Attributes
Frequency
Percentage
Strongly Disagree
10
12%
Disagree
59
72%
Agree
16
16%
Strongly Agree
Nil
Nil
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Total
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82
100%
Figure 4.7 Customers Satisfaction with the products
It is evident from the above statistics that Postbank customers are not satisfied with the products that are
being offered. 84% of the respondents showed that Postbank customers were not satisfied with the
products. 16% of the respondents felt that customers were satisfied with the products.
Attributes
Frequency
Strongly Disagree
Percentage
6
7%
Disagree
27
33%
Agree
49
60%
Strongly Agree
Nil
Nil
Total
82
100%
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Vol. 1, No.10: Jun 2012[82-105]
Figure 4.8 Customer satisfactions with service
60% of the respondents agree that Postbank customers are a satisfied with the service they get in
Postbank. 40% felt that customers were not satisfied with the service.
Attributes
Frequency
Percentage
Nil
Nil
Disagree
38
46%
Agree
44
54%
Strongly Agree
Nil
Nil%
Total
82
100%
Strongly Disagree
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Figure 4.9 Customer Handling
From the statistics above 46% of the respondents were not happy with the way Postbank handles its
customers. 54% who were the majority were happy with the way Postbank handles its customers.
The respondents felt that the customers were not satisfied with the products offered but they were
satisfied with the services. The respondents were happy with the way Postbank handles its customers.
4.8.1 Response on Customer Service Delivery
Table 4.8 Need for Post bank to improve on the customer service delivery
Attributes
Frequency
Percentage
Strongly Disagree
Nil
Nil
Disagree
Nil
Nil
Agree
33
40%
Strongly Agree
49
60%
Total
82
100%
Table 4.9 Need for Post bank to improve on the customer service delivery
All the respondents agreed that Postbank need to improve on the customer service. This is a strong
indication that Postbank need to do something on its service delivery to the customers.
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International Journal of Business and Commerce
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Vol. 1, No.10: Jun 2012[82-105]
5.0 Findings, Conclusion and Recommendation
5.1 Summary of Findings
5.1.1 Response
The aim of this study was to investigate factors that affect quality of customer’s service in banking
industry a case study of Post bank. From the findings the following was established.
The overall response rate was 84% which is considered a good representative of the target population. On
gender analysis, most of the respondents were female representing a total of 57% and men 43%. Further
findings reveal that the highest number of respondent have worked for Postbank for a period of 9-16
years. The statistics also showed that the highest number of respondents were the non-management staff
whose response rate was 90% compared with the management whose response rate was 74%.
5.2 Answers to Research Questions
5.2.1 To what extent has the human resource factors affected the quality of customer service in Postbank.
According to the findings, most of the respondents who are employees of Postbank are motivate to work
for the bank. This is a positive sign because motivation can lead to high standards of self esteem among
the employees, it promotes corporate image and even markets the products more aggressively. Motivated
staffs are capable of giving the customers personalized service and attention and that leads to customer
satisfaction.
The research findings were that Post Bank employees are well trained for the job and that Post bank
conducts continuous in service training for its staff members. This is a positive indicator towards
customer satisfaction. The fundamental aim of training is to help the organization achieve its purpose by
adding value to its key resource (employees) Training helps employees develop a positive attitude work
and that leads to better quality of customer service.
It was evident from the research findings that the majority of the employees are satisfied with their job.
This job satisfaction leads to a happy work life of an employee who in turn translates it to the services to
customers.
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5.2.2 How has the products offered in Postbank affected the quality of customer service?
The study found out that Postbank offers good products to its customers but is was evident that they were
not satisfied with the range of products which were offered. This is an indication that Postbank needs to
diversify on its product rand and offer more varieties to the customers. Customers’ needs and wants on
changing everyday and any company that wants to stay relevant in the market to change with respects to
changes in customer’s taste and preference.
5.3 Conclusion
Quality customer service leads to customer satisfaction. Customer satisfaction plays a vital role for any
organization in today’s competitive environment. Customers’ satisfaction leads to customer loyalty and
retention thus it is important that Postbank ensures that customer’s needs are taken care of to their
satisfaction. They should try and maintain a relationship with the customers who will lead to a long term
relationship and mutual benefits to the bank.
The research concludes that the human resource factors were positively influencing the quality of
customer service in the bank through the performance of the employees. Training was done as expected,
staffs were motivated and there was job satisfaction among the employees.
It was evident that there was a gap in technology. What the bank is using is not the best technology in the
market given that there is lot of competition. Customers were satisfied with the services they get but were
not satisfied with the products.
5.4 Recommendation
5.4.1 Human Resource Factors
This study recommends that Postbank need to continuously endeavor to have and maintain a motivate
workforce. The management should ensure that there is a positive reaction to one’s work. They should
ensure that they meet employee’s expectations towards wages, working conditions, control, promotion
and recognition of talents. Postbank should ensure that they are consistent with the in-service training and
that they employ staffs who are well trained on the job.
5.4.2 Products Range
Since customer’s tests and preferences keep on changing, there is need for Postbank to study the market
to understand what the customers want and change with the changing times. It should offer products that
are competitive and that attract customers.
5.5 Suggestions for Further Studies
The research was about the factors that affect quality of customer service in the banking industry. The
research concentrated on human resource factors. A further research should be done on the other factors
that affect quality of customer service. Also a research should be done on how to establish, attain and
maintain long-term relationship with customers.
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APPENDICES
APPENDIX 1
Research Questionnaires
Section A
1. Gender:
 Male…………………………
 Female………………………
2. Length Of Service
 1-8 years ……………………
 9-16 years …………………..
 17-24 years …………………
3. Position in the Organization
 Managerial ……………………………………….
 Non-managerial (unionsable) ………………….
Section B
Items
1.
I am highly motivated to work for Postbank
2.
Postbank employs staff who are well trained for the job
3.
Postbank conducts continuous in-service training for its staff
members as expected
4.
I am satisfied with my job
5.
Postbank uses best technology banking services
6.
Postbank has the best expertise in the field of technology
7.
Postbank should improve its technology for banking services
8.
Postbank provides the best tools and equipment to its employees.
9.
Postbank offers good products to its customers
SD
D
A
SA
10. Customers are satisfied with the products that Postbank offers
11. Customers are satisfied with the services of Postbank
12. Am happy the way Postbank handles its customers
13. Postbank needs to improve on the customers service delivery
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Key:
SD ……… Strongly Disagree
D ……….. Disagree
A……….. Agree
SA ……... Strongly Agree
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