impact of business process reengineering in banks on...

IMPACT OF BUSINESS PROCESSREENGINEERING IN BANKS ON CUSTOMER

SATISFACTIONWITH REFERENCE TO SMALL ENTERPRISES IN COIMBATORE

Thesis submitted to the Bharathiar Universityfor the award of the Degree of

DOCTOR OF PHILOSOPHYIN

MANAGEMENT

By

R. TAMILSELVI

Under the Supervision of

Dr. PONNAMMAL K. PANDIAN, Ph.D (Eco)

RATHNAVEL SUBRAMANIAM COLLEGE OFARTS & SCIENCE

(AUTONOMOUS)(APPROVED BY UGC & AICTE, AFFILIATED TO BHARATHIAR UNIVERSITY)

TRICHY ROAD, SULUR, COIMBATORE – 641 402TAMILNADU, INDIA.

JUNE 2012

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CERTIFICATE

This is to certify that the thesis entitled, “IMPACT OF BUSINESS

PROCESS REENGINEERING IN BANKS ON CUSTOMER

SATISFACTION WITH REFERENCE TO SMALL ENTERPRISES IN

COIMBATORE”, submitted to the Bharathiar University, in partial fulfilment of

the requirements for the award of the Degree of DOCTOR OF PHILOSOPHY

IN MANAGEMENT, is a record of original research work done by

Ms. R. TAMILSELVI, during the period 2007-2012 of her research in the

Department of RVS Institute of Management Studies and Research at Rathnavel

Subramaniam College of Arts & Science, under my supervision and guidance and

the thesis has not formed the basis for the award of any Degree

/Diploma/Associateship/ Fellowship or other similar title to any candidate of any

University.

Signature of the Guide

Countersigned

Principal

Rathnavel Subramaniam College of Arts & Science


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DECLARATION

I, R. TAMILSELVI hereby declare that the thesis, entitled “IMPACT

OF BUSINESS PROCESS REENGINEERING IN BANKS ON CUSTOMER

SATISFACTION WITH REFERENCE TO SMALL ENTERPRISES IN

COIMBATORE”, submitted to the Bharathiar University, in partial fulfilment of

the requirements for the award of the Degree of DOCTOR OF PHILOSOPHY

IN MANAGEMENT, is a record of original and independent research work

done by me during 2007 – 2012 under the supervision and guidance of

Dr. PONNAMMAL K. PANDIAN, Director, RVS Institute of Management

Studies and Research at Rathnavel Subramaniam College of Arts & Science, and

it has not formed the basis for the award of any Degree /Diploma/Associateship/

Fellowship or other similar title to any candidate of any University.

Signature of the Candidate


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ACKNOWLEDGEMENT

If words are considered as symbols of approval and token of

acknowledgement, then let the words play the heralding role of expressing my

gratitude. I thank the Almighty for his abundant blessings showered on me that

sustained and helped me to complete the thesis successfully.

I take this opportunity to thank the Chairman Lion. Vijayashree

Dr. K. V. Kupuswamy, RVS Educational Institutions, Sulur, Coimbatore for

his blessings. I find no precise word to convey my sincere thanks to our Managing

Trustee Mr. K. Senthil Ganesh, RVS Educational Institutions, Sulur,

Coimbatore for his ardent support and noble patronage.

I express my sincere gratitude and heartfelt thanks to the Advisor General

Dr. H. Newman, and Secretary Dr. Mohamed Mubarak, RVS Educational

Institutions for their constant encouragement, magnanimity and support. It gives

me immense pleasure to take this opportunity to express my gratitude and thanks

to Dr. P. Thirunavukarasu, Principal RVS College of Arts & Science, Sulur,

Coimbatore for his continuous encouragement and blessings.

Beyond words is my gratitude and indebtedness to my research guide

Dr. Ponnammal K. Pandian, M.A., MBA., M. Phil., Ph.D (Eco), Director,

RVS Institute of Management Studies and Research, RVS College Arts &

Science, Coimbatore, for her valuable and meritorious research guidance and

supervision. I convey my sincere thanks adequately to her for all the trouble she

has taken since the onset of this research study. I heartily express my thankfulness

to her for the completion of this doctoral thesis.


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I express my sincere gratitude to Dr. P. Anu Valenteena, Director, AJK

College of Arts & Science, Coimbatore, for her forbearance, moral support, and

for generously giving me the benefit of her long experience and expertise.

My gratitude and indebtedness to Mr. Elangovan, Assistant Professor,

RVS Institute of Management Studies and Research, RVS College of Arts &

Science, Coimbatore, for his unstained co-operation, and willing help throughout

this doctoral study. My sincere thanks to Dr. Madhusudhanan, Director,

Department of Tamil for his continuous encouragement throughout my venture.

My sincere thanks to Mr. D. F. X Christopher, Director, School of Computer

Science and Dr. Sheila Jayaraj, Director, Department of English, RVS

College Arts & Science, Coimbatore for their invaluable and helpful

suggestions. I record my hearty gratitude to the faculty members of RVS College

of Arts and Science for their ready assistance and kind cooperation in the course

of my research work.

I express my sincere gratitude and thanks to Mr. M. Thyagarajan for

providing me valuable tips and information regarding banking operations during

the course of this, thesis moreover I thank Mr. A. Kalaiselvan, Lead Bank

Manager, Canara Bank, Coimbatore, for his readily providing me with the

required data.

I would like to extend my indebtedness to my real energizers my husband

M. Sabarinathan, and to my daughter S. Varneka and all other family members

for their abundant love, care and support rendered to me to smoothly ascend the

ladders of success.


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My great felt thanks to all my well-wishers and friends for their assiduous

companionship and support. At the end, I would like to express my sincere thanks

to all those who have directly or indirectly assisted me in my research work.

Finally, it is my foremost duty to thank all my respondents, without whose

help this dissertation would not have been possible.

R. TAMILSELVI


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ABSTRACT

The banking scenario in India is at cross roads and is continuously

evolving, but the progress has been remarkable in recent years with the level of

competition increasing in the banking industry. Over the last decade, the concept

of Business Process Reengineering (BPR) has entered the industry mainstream in

many business houses and services.

BPR implies transforming processes that are part of a larger system in

order to enable organizations to empower themselves with contemporary

technologies, business solutions and innovations to ‘customize’ their business

processes. The entry of new players in India, including new private sector and

foreign banks with the added advantage of their established structure, advanced

technology and relatively strong asset portfolio, has jolted the public sector banks.

This is the root cause for the emergence of BPR in the Indian banking arena.

However, these issues raise the question whether BPR, aimed at customer service,

has really created customer satisfaction and that leads to the research question:

“Will modern banking facilities enabled by Business Process Re-

engineering influence the customer satisfaction among the Small

Enterprises?”

The study is designed to describe the characteristics of the variables of

interest and further to test the hypotheses to explain the nature of relationship of

the variables. A questionnaire-based survey was conducted among the small

enterprises of the selected banks. Percentage and chi-square analysis are used to

describe the variables. Regression and paired t-test are used to explore the

relationship between the variables.


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The objective of this research is to identify the factors of the reengineered

business process of the banks that are responsible for customer satisfaction. An

exploratory factor analysis of these factors reveals three dimensions. They are

transactional quality, procedural quality and customer service. These dimensions

were regressed on the customer satisfaction on the banking services and valid,

model was framed.

The study is proposed to identify the customer satisfaction in the banking

process transformed by the BPR. The survey among small enterprises measured

their perception on both traditional and modern banking facilities. The study

highlights the impact of BPR on banks and customer satisfaction. As the results of

the study are favorable to process changes, public sector banks and private sector

banks should radically transform their business process and pave way to adopt IT

to solve many persistent problems in banking process.


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