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Working report of employee satisfaction and customer

satisfaction on service quality at Pubali Bank Ltd.

Submitted by:

MD.AL-AMIN
ID: M140203509

An Internship Report Presented in Partial Fulfillment of the Requirement for the Degree Masters
of Business Administration

Jagannath University, Bangladesh


April 2016
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Working report of employee satisfaction and customer


satisfaction on service quality at Pubali Bank Ltd.

Submitted by:

Md. Al-amin
ID: M140203509

Has been approved


April 2016

Md. Sogir Hossain


Khandoker
Associate professor

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LETTER OF TRANSMITTAL

Md. Sogir Hossain Khandoker


Associate professor
Jagannath university
Sub: Submission of the Internship Report
Dear Sir
In this advance working report of employee satisfaction and customer satisfaction on service
quality at Pubali Bank, I have tried to implement my academic experiences in the practical field
with due sincerity and would like to thank you for your cooperation. Despite many limitation I
have tried and address the major and in depth issue in making this paper accurate and reliable. If
you have any future inquiry concerning any additional information I would be very pleased to
clarify that.

I, therefore, hope that you will be kind enough to accept this report as fulfillment of the
requirement of the course MBA.

Thanking you,
Sincerely yours ,
Md. Al-amin
ID: M140203509

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ACKNOWLEDGEMENT

At the very beginning, I would like to express my deep gratitude to almighty Allah for giving me
the strength to finish the project within the schedule time. Preparing an internship report is
copious task. I required enormous time and attention in every step of it. However, it gives me a
true feeling of creation and helps me to understand my ability of work. For fear of sounding like
a vote of thanks speech, I would like to take the opportunity, to thank all of those marvelous
people who have contributed to this report. Of course, some very special people cannot go
without mentioning. At first, I express thank my heartiest gratitude to my Supervisor Md. Sogir
Hossain Khandoker, Associate professor, Jagannath university, for his kind cooperation in
preparing this report. I would like to thank Md. Aman Ullah, General Manager of Pubali Bank
Limited, for giving me opportunity to work as an intern. I am grateful to Principal office Mr.
ASM shoyab for his supervision and continuous support to do my internship. It would be
injustice if I do not express my gratitude to Md. Huzzatul Islam and Mr Mozzaffor Ali without
their support it was impossible for me make such report. I am also indebted to all of officers and
staffs of PBL and for giving time and advice to know and learn all activities of the bank and
prepare this report. During the preparation of the report I have came to the very supportive touch
of different individuals (respondents & seniors from PBL) and friends, who lend their ideas, time
and caring guidance to amplify the reports contents. To be honest to myself I must say that
without their help it would be very hard for me to prepare such report. I am thankful to them with
all of my feelings.

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EXECUTIVE SUMMARY
PBL survive and thrive in such a competitive banking world, one important requirements to
develop loyal employee who are able to satisfy the customer need by providing the quality
service. Professionalism in the sense of developing an appropriate manpower structure and its
expertise and experience.PBL has contributed in the economy of the country through their
dedicated services, business partnership and customer care over the last fifty years. They have
seen enormous changes over the period and have continued to keep on adopting to changes their
journey ahead. They has been widely acclaimed by the business communicate from small
entrepreneurs to large traders and industrial conglomerates. PBL conducts all types of
commercial banking activities. The bank involve in most of the areas of commercial banking
operation. They also providing personal credit, service related to local and foreign remittances
and several other products.PBL entered the market at a time when economic policy environment
of the country is poised for higher levels of business activities and growth. But since 2008 to
2015 Pubali Bank found that there are several problem which may responsible for employee
turnover which mostly happen in general Banking and others department as well. Employee is
the heart for any organization and satisfied employee is the asset for the organization.

PBL is trying to reduce employee turnover and also try to satisfy the customer by providing the
better service quality. In which sector Pubali Bank need to give more attention to ensure
customer satisfaction is my research study.

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Contents
Part A:......................................................................................................................... 7
Organizational overview............................................................................................. 7
Introduction............................................................................................................. 7
Banks Mission :.................................................................................................... 9
Vision :................................................................................................................. 9
Principal Objectives:........................................................................................... 10
Origin of the Report............................................................................................... 10
Objective of the Study........................................................................................... 10
Pubali bank performance appraisal:......................................................................11
Promotion policy of Pubali Bank:...........................................................................12
Factor affecting performance of a bank:................................................................14
Work experience:.................................................................................................. 15
Part: B....................................................................................................................... 16
Research................................................................................................................... 16
Abstract................................................................................................................. 16
Objective of the Study........................................................................................... 16
Limitations of the study......................................................................................... 17
Statement of the problem:.................................................................................... 17
Scope of the research:........................................................................................... 17
Literature review:.................................................................................................. 18
Employee Satisfaction........................................................................................ 18
Customer satisfaction........................................................................................ 19
Service quality................................................................................................... 20
Relationship between employee satisfaction, service quality and customer
satisfaction:........................................................................................................... 21
Conceptual framework:......................................................................................... 22
Research hypothesis:............................................................................................ 23
For analysis of employee satisfaction:...............................................................23
For analysis of customer satisfaction:................................................................23
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RESEARCH METHODOLOGY................................................................................... 23
Methods of Research.......................................................................................... 23
Respondents and Sampling Procedure...............................................................24
Population:......................................................................................................... 24
Collection of data:.............................................................................................. 24
Statistical Tools Used.......................................................................................... 24
Method of Data processing and analysis............................................................24
Data analysis procedure:....................................................................................... 24
Findings:................................................................................................................ 25
Assessment of the Research Hypotheses from employee satisfaction:..............26
Findings on the Hypotheses Analysis from employee perspective:....................33
assesment of research hypothesis from customer satisfaction:.........................34
Findings on the Hypotheses Analysis:................................................................39
Recommendation:................................................................................................. 40
Conclusion:............................................................................................................ 41
Reference.............................................................................................................. 42

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Part A:
Organizational overview
Introduction
Pubali Bank Limited is a reputed private commercial bank established on May 20.1984.
Licensing no Bl/DA/1/84. In exercise of the powers conferred on the Bangladesh Bank under
section 28(1) of the banking companies ordinance 1962 as adopted in Bangladesh Pubali Bank
Limited; Bank authorized to open the branch at 26 Dilkusha commercial area (Local Office) P.S
Motijheel district Dhaka. Condition mention in this office letter no. BCD (D) 200/42(a)/145. The
bank has been widely acclaimed by the business community from small entrepreneurs to large
traders and industrial conglomerates. Within very short period of time it has been able to create
an image for itself and has earned significant reputation in the countrys Banking sector as a bank
of vision. Presently it has 406 branches, in terms of operations the Principal branch is one of the
big and important branches of PBL. This intended to ensure the trust and confidence of the
customers through trying to focus on customer orientation qualities of services and state of art
technology. The company philosophy-A Bank for the 21st century has been precisely the essence
of the legend of the Bank success.
Banks Mission :

High quality financial services with the help of latest technology.


Fast & accurate customer service.
Balanced growth strategy.
High standard business ethics.
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Steady return on shareholders' equity.


Innovative banking at a competitive price.
Deep commitment to the society and the growth of national economy.
Attract and retain quality human resource
Vision :

To stand out as a pioneer banking institution in Bangladesh and contribute significantly to the
national economy. By assuring customer satisfaction for its customers and through proper
training of its most selected group of employees its mission. Also through constant innovation of
its product line and establishing constant networking with prospective corporate clients it plans
to accomplish its mission.
Principal Objectives:

Pubali Bank Ltd. main objective is to maximize profit through customer satisfaction. Pubali
Bank Limited has been ensuring maximum profit by providing best and improved customer
service along with other corporate objectives mentioned below.
o Profit maximization
o To provide standard financial services.
o To provide excellent customer services to its clients.
o Ensuring high return on investment and services with different service product.

Origin of the Report


The Internship program, itself is an attempt to provide the graduates an orientation to a real life
situation, in which they can observe and evaluate the use and applicability of their theoretical
concepts, taught in the classroom. As per the norm, this report is the requirement to fulfill the
internship program as well as the MBA program which is assigned as the course for the students
to help them out, to have a practical knowledge of the work in a real official environment for a
semester in order to gain practical experience. My university supervisor Md. Sogir Hossain
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Khandoker suggested me the topic of my report. This report examines the relationship between
employee satisfaction and customer satisfaction on service quality in the context of Pubali Bank
LTD. It also covers overview of the performance appraisal and promotion policy of The Pubali
Bank Ltd.

Objective of the Study


1.
2.
3.
4.
5.

To present the performance appraisal of employees of Pubali Bank.


To identify the relationship between service quality and employee satisfaction.
To evaluate the factors affecting performance of the Bank.
To suggest the better ways of enhancing the performance of the Bank.
It has also a goal to explain the learning of my performance during internship period.

Pubali bank performance appraisal:


The aim of this report is to present the performance appraisal because performance appraisal is
related to promotion practice and Employee satisfaction is related to promotion. Although there
have some other factor which has direct influence on employee satisfaction, later we discuss
these factors hypothetically. Pubali Bank performance appraisal is presented below.
Performance appraisals play a key role in several administrative areas such as promotions, job
transfers, and legal protection. With the data generated from employee appraisals, an
organization can better able to make good decisions about a wide range of matters that directly
affect employees, department, and the company at large. Most of the organizations in Bangladesh
specially banking sector do not use such type of methods for employee appraisal rather they use
ACR (annual confidential report) for promotional decision.

Alike other organizations, Pubali bank also undertakes 4 steps including:


1.
2.
3.
4.

Setting performance standard,


Pertaining actual performance
Comparing the actual performance with the standard
Taking corrective action if there is any variance between actual and standard performance
to complete employee ratings.
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Promotional decision usually a time and money consuming matter. Each and every year on
December the ACR reports are collected and sent to the top management. Management and other
experts verify the report and call for interview of the prospected candidates. Pubali bank
develops a panel of candidates who are the most suitable for promotion. Number of candidates
are determined by the past retirement rate, or exit rate or a sudden expire. Generally the panel
identifies more than half candidates in case of 20% vacancy rate. Duration of each panel is six
month to one year based on company policy. After that period the previous panel as well as the
candidates of that panel (who are not served promotion) loss their validity and for the new year
new panel is developed. Fig. 1. Shows six steps of promotion starting from ACR (annual
confidential report) submission to selecting best candidates for promotion. The time period of the
whole process is maximum one year.

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Fig. six steps of promotion

Promotion policy of Pubali Bank:

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Promotion may prove to be source of satisfaction it should be handled very carefully if, handled
well or it may attract lot of criticism from employees in case of mishandling. It is a duty of HR
manager to design a sound promotion policy and also ensure its full implementation to improve
service quality and customer satisfaction. A sound promotion policy means a policy which is fair,
impartial and enjoys consistency .Pubali Bank also follows a guideline for their promotion policy
which is already considered as a sound policy of promotion by the employees. No employee can
claim for promotion only the basis of seniority and until their performance is not satisfactory.
Pubali bank considers promotion based on some factors like, educational qualification, merits,
seniority and availability of vacant positions. In case of extra-ordinary performance of an
employee the criteria of promotion will be relaxed and considered for accelerated promotion.
Promotion must be merit based and different exams, like, Annual Confidential Report (ACR),
length of service, educational qualification and interview determine ones merit. The total mark of
the exam is 100. The marks distribution of ACR and other subject for promotion grade of
AGM( assistant general manager) to DGM (deputy general manager) and SPO(senior principal
officer) to AGM(assistant general manager)are given below:

No.

Grade
AGM- DGM
And

SPO-AGM

Marks distribution

Marks

ACR (5 years)
Length of job
Educational qualification
Banking diploma Part-1 & Part-2

45
15
15
5

Interview taken by promotion committee


Total

part-2=3)
20
100

(part-1=2 &

Table 1: Marks distribution for promotion


Although, promotion has great impact on satisfaction, there have some other factors which
influence employee satisfaction these are as follows:
1. Supervision style
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2.
3.
4.
5.
6.

Working environment
Job responsibility
Recognition
Advancement
Salary and others.

Factor affecting performance of a bank:

Variables

Measurement

Internal variables
Bank liquidity

Total loans to Total Assets

Capital adequacy

Equity capital to Total Assets

Credit Risk/Loan Quality

Loan loss provisions to Total Loans

Market profit opportunity

Deposits to total Assets

Cost efficiency

Interest expenses to Equity

Interest income

Net interest margin to Total Assets

Cost inefficiency

Interest expenses to Total Assets

Bank Diversification

Non-interest income to Total income

Financial leverage

Debt capital to equity capital

Management inefficiency

Operating costs to Total Assets

Management inefficiency

Operating costs to Total Income

External variables
Annual Inflation rate

Consumer price index

Financial development

Stock market to Equity Capital


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Work experience:

1. Account opening.
2. Taking Chequebook Requisition.
3. Receiving Cheque.
4. Inward outward Clearing registers writing.
5. Maintain chequebook Register
6. Update Account opening Form
7. Check the client loan account.
8. I saw there is an advocate which hired by bank to maintain govt. regulation.
9. I saw bank officer how to maintain promissory note.

Part: B
Research
Abstract
While customer satisfaction is vital for services organization so the role of employee is a driver
of customer satisfaction. Drawing on an experimental study and a field study, this research shows
that employee satisfaction is an important determinant of customer satisfaction, which in turn
increases customer loyalty to the service organization. Thus, for services firms like bank, the
logic in relationship marketing that employee satisfaction affects customer satisfaction can
observed by this research. These findings have two major managerial implications: First,
investments into employee satisfaction might pay off double by enhancing revenues and profit on
one hand, and enhancing customer satisfaction, on the other hand. Second, positive employee
feedback has positive effects on customer satisfaction. Thus, service firms should encourage
ample communication and collaboration between these functions to ensure better service quality.
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Objective of the Study


This study has been designed to find out theanswer of what are the factors that determines the
service quality of Pubali Bank.
Broad Objective
The main objective of this study is to analyze critically the Employee & customer satisfaction
level to know about the service quality of Pubali bank Ltd.
Specific Objective
To find out the specific areas of satisfaction and dissatisfaction of Pubali bank employee and
customers.

Limitations of the study


Although this research report have prepared carefully, but still I know about its limitations and
shortcomings.
1. Sampling size not sufficient.
2. Such a short time period was not sufficient to understand the insights of employee
satisfaction level.
3. The research was limited only in Pubali bank agri. Complex branch. The research
findings could be different if it is carried out with the other regions of the unit.
4. Lack of practical knowledge.
5. People are not interested to share their personal information.

Statement of the problem:


In the current situation of increased competition with rapid new service style and concept, the
employee & customer satisfaction is a big competition. Pubali bank is worried about their market
share because of their service quality, which is also other bank offered. So I will try to find the
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factors, that the Pubali bank would to look at or do further research on related to customer
satisfaction on service quality.

Scope of the research:


The study is doing in Pubali bank employee, who have direct involvement in Pubali bank to
ensure the better service quality and customer satisfaction. The competition employee have not
been considered since the bank at this point of time feels they still need to improve further to be
more competitive. So improving more is only possible to satisfy the existing employee and new
coming employee to stay with Pubali bank.

Literature review:

Employee Satisfaction

Employee satisfaction or lack of it hinges on a productive, fulfilling relationship between staff


and management; indeed, the success of any organization depends on staff members who enjoy
their jobs and feel rewarded by their efforts. It is an obvious statement but high employee
satisfaction levels can reduce employee turnover (Hurley and Estelami, 2007). Dissatisfied
employees tend to perform below their capabilities, result in high turnover of staff and leave their
jobs relatively quickly and are not very likely to recommend the company as an employer to
anyone else. On the other hand, satisfied employees are the ones who go the extra mile to be
helpful to customers (Robbins, 2003). When employees are unhappy, a pervasive atmosphere and
ill will spread throughout the workplace; customers/visitors feel its sting and everything suffers.
Sadly, these employees often direct their unhappiness to their customers.
Too often, attracting and keeping quality employees in order to achieve that goal is swept under
the rug. Creating an environment where employees who are real jewels, are admired, polished,
and appreciated will result in an organizations enhanced performance. In
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addition, weeding out the employees who are fake gems is necessary to
maintain morale of the good performers (Landy, 1989).
The costs associated with low employee morale are expenses associated with decreased
productivity, unresolved conflict, and unproductive time spent gossiping and complaining to coworkers or employee turnovers. Employee retention and turnover are the most objective
measures of employee satisfaction/dissatisfaction in organizations. The Harvard Business
Review reports that a 5% increase in retention results in a 10% decrease in cost and productivity
increases ranging from 25% to 65% (Robbins, 2003).
Many organizations feel that employee compensation is the dominant factor in employee
satisfaction. Consequently, employers attempt to buy employee satisfaction with increased pay
and benefits. In todays competitive business environment, this approach can only be taken so
far (Appelbaum, 2005). Fortunately, there is a much less expensive way to create greater
employee satisfaction. It is virtually cost free and it increases productivity that significantly
improves the bottom line.
Customer satisfaction

Customer satisfaction refers to an affective state that is the emotional reaction to an experience or
a sequence of experiences with a seller. It is produced by the customer's assessment of the degree
to which a sellers performance is perceived to have met or exceeded some comparison standard.
This conceptualization of customer satisfaction is consistent with previous research (e.g.,
Cadotte, Woodruff, and Jenkins 1987; Spreng, MacKenzie, and Olshavsky 1996). Although it has
frequently been argued that the job satisfaction of a company's employees is an important driver
of customer satisfaction, systematic research exploring this link is scarce. Results indicate the
presence of a positive relationship between salespeople's job satisfaction and customer
satisfaction, and this relationship is found to be particularly strong in the case of high frequency
of customer interaction, high intensity of customer integration into the value-creating process,
and high product/service innovativeness (Brown & Peterson 1993, 1994). In recent years, many
companies have invested considerable resources into programs for measuring and increasing
employees' job satisfaction (e.g., Heskett, Sasser, and Schlesinger 1997). Numerous empirical
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studies show a strong positive relationship between employee satisfaction and customer
satisfaction (e.g., Band, 1988; George, 1990; Reynierse & Harker, 1992; Schmitt & Allscheid,
1995; Schneider & Bowen, 1985; Schneider, White, & Paul, 1998; Schneider, Ashworth, Higgs,
& Carr, 1996 Johnson, 1996; Ulrich, Halbrook, Meder, Stuchlik, & Thorpe, 1991; Wiley, 1991).
As suggested by this wealth of findings, positive changes in employee attitudes lead to positive
changes in customer satisfaction. The main assumption underlying these activities is that
increased employee satisfaction ultimately leads to increased customer satisfaction, and this
central element of conceptual framework is referred to as the service-profit chain (Heskett et al,
1997). This mode suggests a causal chain linking employee satisfaction to financial performance
through the mediating constructs of employee loyalty, customer satisfaction, and customer
loyalty. However, the suggested link between employee satisfaction and customer satisfaction is
based on limited and anecdotal evidence. Academically speaking, customer satisfaction (e.g.,
Fomell, Johnson, Anderson, Cha, and Bryant 1996; Oliver 1997) and employees' job satisfaction
(e.g.. Brown and Peterson 1993; Churchill, Ford, Hartley, and Walker 1985) are two of the most
widely studied constructs in marketing research. However, there is little systematic research
relating the two constructs to each other. The existing studies mostly provide support for a
positive link between employee and customer satisfaction in several industries such as fast-food
restaurants (Bernhardt, Donthu, and Kennett2000), software industries (Tornow and Wiley 1991)
and retailing {Wiley 1991), Lovemans (1998) study within the banking sector, does not provide
empirical support for the suggested positive impact of employee satisfaction on customer
satisfaction. The authors explore the direct relationship between job satisfaction and customer
satisfaction. The link between job satisfaction and customer satisfaction is perhaps stronger when
innovative products are involved due to the need to track and understand product changes. All
employees are seen as ambassadors of their company by any average customer .So if a customer
sees that an employee does not have a positive attitude, a customer may make the wrong
assumptions leading the customer to question the trustworthiness of the company and resulting in
decreased sales for the company. It is necessary for an organizational manager to focus on
increasing employee job satisfaction as an integral part of creating a positive work environment.
Employees with positive attitudes should be encouraged to make contact with customers at every
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opportunity to create the best customer relations to generate the best experience a customer can
attain. They should also be encouraged to take responsibility for customer satisfaction that pays
off in increased customer retention and higher profits for the company.
Service quality

Jarmo Lehtinen views service quality in terms of process quality and output quality
(Ramaswamy, 1996). The customer judges process quality during the service. Output quality is
judged by the customer after the service is performed. The definition of quality as adopted by the
American Society is The totality of features and characteristics of a product or service that bears
on its ability to satisfy stated or implied needs. (Ramaswamy, 1996).
If the experienced service equals the expected service, service quality will be good. On the other
hand if the experiences are below the expectations, the customer will probably be unsatisfied and
service quality will be lower. Customer perceptions of service quality result from comparing
expectations prior to receiving the service and actual experiences with the service. If
expectations are met, service quality is perceived to be satisfactory; if unmet, less than
satisfactory; if exceeded, more than satisfactory (Chowdhary and Prakash, 2007).

The expectations/experiences connection is consistent with Gronrooss


conclusions based on research he performed in Europe.
Quality evaluations derive from the service process as well as the service outcome. The manner
in which the service is performed can be a crucial component of the service from the customer s
point of view. Service quality is of two types. First, there at which the regular service is
delivered. Second, there is the quality level at which exceptions or problems are handled.
Delivering good service quality requires strength at both levels. When a problem occurs, the low
contact service firm becomes a high contact firm. Credit card service is a good illustration.
Usually, the credit card user has no personal contact with the credit card company. There is
contact with the merchant at checkout but not with the credit card company unless there is a
problem. The problem may be noticed by the company or by the user, but in either case personal
contact between company and customer may result (Parasuraman, 2002).

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Service quality assessment is made during the service delivery process, which usually takes place
with an encounter between a customer and a service contact person. Customers will compare
their perceptions of service received with expectations of service desired. When expectations are
exceeded, service is perceived to be of exceptional quality and also to be a pleasant surprise
(Edvardsson, 1998).

Conceptual framework:
In this framework, firstly, I want to say that satisfied employee can ensure the better service
quality. If the service quality improved ultimately customer will be satisfied. Secondly, employee
satisfaction depends on salary, Promotion, job responsibility, supervision style, working
environment and work pressure. On the other hand customer satisfaction also depends on deposit
rate, loan rate, service knowledge of employee, service quality and personal relationship with
employee.

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Figure 2: research conceptual framework

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Research hypothesis:
For analysis of employee satisfaction:

Hyp 1: Employee job responsibility of PBL has positive influence on employee satisfaction.
Hyp 2: working environment of PBL has positive influence on employee satisfaction.
Hyp 3: supervision style of PBL has positive influence on employee satisfaction.
Hyp 4: Promotion system of PBLhave positive impact on employee satisfaction.
Hyp 5: Salary and other benefit has positive influence on employee satisfaction.
Hyp 6: ability to meet customer needs has positive impact on employee satisfaction.
Hyp 7: overall job satisfaction has positive influence on employee satisfaction
For analysis of customer satisfaction:

Hyp 1: Deposit rate of PBL has positive influence on customer satisfaction.


Hyp 2: Loan rate of PBL has positive influence on customer satisfaction.
Hyp 3: Service knowledge of the employee has positive influence on customer satisfaction.
Hyp 4: Service quality of PBL have positive impact on customer satisfaction.
Hyp 5: personal relationship with the employee has positive influence on customer satisfaction.

RESEARCH METHODOLOGY
Methods of Research
This study will follow Surveys method through questionnaire. In this study I have used Secondary data.
We used the quantitative research method, which fall under the category of exploratory research.

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Respondents and Sampling Procedure

The sample is selected on the basis of personal judgment, employee of PBL and unknown
population, so it is non probability sample.
Population: Employee & costumers is the population in this research
Collection of data:

Data has been collected through close ended questionnaire and from sample focus group.
Statistical Tools Used

This study has followed Simple Five point Likert scale with mean average and standard
deviation. A Likert Scale has been used for the measurement and scaling. A Likert scale is a
psychometric scale commonly used in questionnaires, and is the most widely used scale in
survey research. To conduct the analysis, each statement is assigned a numerical score ranging
from 1 to 5. Here, the point of strongly agree is 5, and strongly disagree is 1.
Method of Data processing and analysis

Collected information was processed with the aid of MS Excel computer Software through mean,
standard deviation and mode. Detailed analysis, working variables, variables and working
definitions are incorporated in the report

Data analysis procedure:


After completing the research survey, we started the data preparation for the project. As soon as
we received the questionnaires from the bank we kept all the information in Microsoft Excel
program. Since, this is a descriptive research and the data analysis should be done quantitatively.
For this reason, we used MS Excel software because we have enough insights of using this
program. In the beginning portion of the questionnaire, there were some general questions to
aware of the some information about the respondents. This information is analyzed individually
rather than collectively.
The next section of the questionnaire contains 08 statements. Each of the statements has been
arranged in such a way which is directly related to the employee and customers satisfaction
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factors. To measure the degree of agreement, each statement is assigned a numerical score
ranging from 1 to 5. So the point of strongly agree is 5, and strongly disagree is 1.
Firstly, we have analyzed the total scores that stand for of the each statement. By analyzing each
statement this way, the specific areas of satisfaction and specific areas of dissatisfaction could be
identified. As a result, it was feasible for us to figure out the factors that make the employees feel
satisfied and the factors responsible for dissatisfaction. However, the highest point for each
question is 100 (20 respondents * 5) and the lowest point is 20 (20 respondents * 1). Here, we
calculated total point of each question and also calculated the mean average of the each
statement to figure out the central limit tendency and standard deviation of the mean to measure
the dispersion of values. A low standard deviation means the data points tend to be very close to
the mean, and high standard deviation indicates the data are spread out over a large range of
values. If all the standard deviations of the 08 questions are less than 1, which means the data in
every series are very close to their means. If all the standard deviations of the 08 questions are
more than 1, which means the data in every series are dispersed to their means. Secondly, we
analyzed the total scores of each respondent to get the general overview about the employee
satisfaction distinctively. So the highest point for each respondent is 40 (08 statements * 5) and
the lowest point is 08 (8 *1). Here, the same statistical tools have been followed that were used
in analyzing the each statement. From average point we divided into three categories of
employees; satisfied employees and moderate employees and dissatisfied employees. If the
average point is more than 4, then it is highly satisfied employees. If the average point is more
than 3, then it is moderate satisfied employees and finally, if the average point is less than 3,
then it is dissatisfied employees.
Same procedure is followed to analyze the customer satisfaction of pubali bank ltd.

Findings:
The main objective is to determine the service quality based on the employee satisfaction and
customer satisfaction. The general analysis of the 20 samples is presented in this section. There is
no statistical tool used to analysis the respondents overview because this information will not
affect directly to the employee satisfaction factors.
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Assessment of the ResearchHypotheses from employee satisfaction:

Findings of the statements are analyzed by summing up total scores of each statement of 20
respondents. Then we calculate the arithmetic mean of the each statement to figure out the
central limit tendency and also compute the standard deviation to get the dispersion of the values.
Hypotheses 1: job responsibility of PBL has positive influence on employee satisfaction.
The mean average of this statement is 3.75. The job responsibility of Pubali bank has been rated
strongly by the employee the standard deviation of this statement is 1.164. That means data are
dispersed to their means. Since, most of the employee are experiencing satisfied in their
respective areas, some of the respondents are not satisfied about their job responsibility.
Percentage and graphical presentation of respondent are given below:
Valid percentage table
Strongly satisfied
Satisfied
Neutral
Dissatisfied
strongly dissatisfied
Total

30%
40%
5%
25%
0%
100%

35
30
25
20
15
10
5
0

Page | 26

Hypotheses 2: working environment of PBL has positive influence on employee


satisfaction.
The mean average of this statement is 2.65. The job responsibility of Pubali bank has been rated
poor by the respondents. The standard deviation of this statement is 1.268. That means data are
dispersed to their means. Since, most of the respondents are experiencing dissatisfied in their
working environment, some of the respondents are satisfied about working environment.
Percentage and graphical presentation of respondent are given below:
Valid percentage table
Strongly satisfied
Satisfied
Neutral
Dissatisfied
strongly dissatisfied
Total

10%
20%
10%
45%
15%
100%

30
25
20
15
10
5
0

Hypotheses 3: supervision style of PBL has positive influence on employee satisfaction.


The mean average of this statement is 2.95. The job responsibility of Pubali bank has been rated
poor by the respondents. The standard deviation of this statement is 1.19. That means data are
dispersed to their means. Since, most of the respondents are experiencing dissatisfied in their
Page | 27

Supervision style, some of the respondents are also satisfied about their job responsibility.
Percentage and graphical presentation of respondent are given below:
Valid percentage table
Strongly satisfied
Satisfied
Neutral
Dissatisfied
strongly dissatisfied
Total

10%
30%
10%
45%
05%
100%

35
30
25
20
15
10
5
0

Hypotheses 4: Promotion system of PBLhave positive impact on employee satisfaction.


The mean average of this statement is 3.7. The Promotion system of Pubali bank has been rated
strongly by the respondents. The standard deviation of this statement is 1.08. That means data are
dispersed to their means. Percentage and graphical presentation of respondent are given below:
Valid percentage table

Page | 28

Strongly satisfied
Satisfied
Neutral
Dissatisfied
strongly dissatisfied
Total

25%
40%
15%
20%
0%
100%

35
30
25
20
15
10
5
0

Hypotheses 5: Salary and other benefit has positive influence on employee satisfaction.
The mean average of this statement is 3.5. The Salary and other benefit of Pubali bank has been
rated strong by the respondents. The standard deviation of this statement is 1.192. That means
data are dispersed to their means. Since, most of the respondents are experiencing satisfied in
their Salary and other benefit, some of the respondents are dissatisfied about Salary and other
benefit. Percentage and graphical presentation of respondent are given below:
Value percentage table
Strongly satisfied
Satisfied
Neutral
Dissatisfied
strongly dissatisfied
Total

20%
40%
15%
20%
05%
100%

Page | 29

35
30
25
20
15
10
5
0

Hypotheses 6: ability to meet customer needs has positive impact on employee satisfaction.
The mean average of this statement is 4.2. The ability to meet customer need of Pubali bank has
been rated strong by the respondents. The standard deviation of this statement is 0.89. That
means data are close to their means. Since, most of the respondents are experiencing satisfied in
ability to meet customer needs, some of the respondents are dissatisfied about ability to meet
customer needs. Percentage and graphical presentation of respondent are given below:
Value percentage table
Strongly satisfied
Satisfied
Neutral
Dissatisfied
strongly dissatisfied
Total

45%
35%
15%
05%
0%
100%

Page | 30

35
30
25
20
15
10
5
0

Hypotheses 7: overall job satisfaction has positive influence on employee satisfaction


The mean average of this statement is 3.35. The Salary and other benefit of Pubali bank has been
rated strong by the respondents. The standard deviation of this statement is 1.3869. That means
data are dispersed to their means. Since, most of the respondents are experiencing satisfied in
their job, some of the respondents are dissatisfied about their job Percentage and graphical
presentation of respondent are given below:
Value percentage table
Strongly satisfied
Satisfied
Neutral
Dissatisfied
strongly dissatisfied
Total

25%
30%
10%
25%
10%
100%

Page | 31

35
30
25
20
15
10
5
0

Assesment of research hypothesis from customer


satisfaction:
Hypotheses 1: Deposit rate of PBL has positive influence on customer satisfaction.
The mean average of this statement is 2.8. The deposit rate of Pubali bank has been rated
strongly by the respondents. The standard deviation of this statement is 1.2 which is more than
one that means data are dispersed to their means. Since, most of the respondents are experiencing
disagree in their respective areas. Percentage and graphical presentation of respondent are given
below:
Valid percentage table
Strongly agree
Agree
Neutral
Disagree
strongly disagree
Total

7%
27%
20%
33.33%
13.33%
100%
Page | 32

20
18
16
14
12
10
8
6
4
2
0

Hypotheses 2: Loan rate of PBL has positive influence on customer satisfaction.


The mean average of this statement is 2.8.The standard deviation of this statement is 1.2 which is
more than one that means data are dispersed to their means. Since, most of the respondents are
experiencing disagree in their respective areas. Percentage and graphical presentation of
respondent are given below:
Valid percentage table
Strongly agree
Agree
Neutral
Disagree
strongly disagree
Total

7%
20%
27%
40%
6.67%
100%

Page | 33

8
7
6
5
4
3
2
1
0
Strongly disagree

Disagree

Neutral

Agree

Strongly agree

Total

Hyp 3: Service knowledge of the employee has positive influence on customer satisfaction.

The mean average of this statement is 3.06.The standard deviation of this statement is 1.09 which
is more than one that means data are dispersed to their means. Since, most of the respondents are
experiencing agree in their respective areas. Percentage and graphical presentation of respondent
are given below:
Valid percentage table
Strongly agree
agree
Neutral
Disagree
strongly disagree
Total

7%
33%
27%
26.67%
6.67%
100%

Page | 34

8
7
6
5
4
3
2
1
0

Hyp 4: Service quality of PBL have positive impact on customer satisfaction.


The mean average of this statement is 3.13.The standard deviation of this statement is 1.18 which
is more than one that means data are dispersed to their means. Since, most of the respondents are
experiencing agree in their respective areas. Percentage and graphical presentation of respondent
are given below
Valid percentage table
Strongly agree
agree
Neutral
Disagree
strongly disagree
Total

7%
47%
7%
33.33%
6.67%
100%

Page | 35

8
6
4
2
0
Strongly disagree

Disagree

Neutral

Agree

Strongly agree

Total

Hyp 5: personal relationship with the employee has positive influence on customer
satisfaction.
The mean average of this statement is 3.6.The standard deviation of this statement is 1.18 which
is more than one that means data are dispersed to their means. Since, most of the respondents are
experiencing neutral in their respective areas. Percentage and graphical presentation of
respondent are given below
Valid percentage table
Strongly agree
agree
Neutral
Disagree
strongly disagree
Total

27%
27%
33%
6.67%
6.67%
100%

8
6
4
2
0
Strongly disagree Disagree

Neutral

Agree

Strongly agree

Total

Page | 36

Findings on the Hypotheses Analysis from employee perspective:

Here, from the average point we divided into two categories of employees; satisfied employees
and dissatisfied employees. If the average point is more than 3, then it is satisfied employees
and we then accept the hypothesis. Finally, if the average point is less than 3, then it is
dissatisfied employees and we rejected the hypothesis.

Hypotheses
Hyp 1: Employee job responsibility of

mean
3.75

PBL has positive influence on employee


satisfaction.
Hyp 2: working environment of PBL has

Decision
Hypothesis accepted

(satisfied)
2.65

positive influence on employee


satisfaction.
Hyp 3: supervision style of PBL has

Valid (%)
40% employee

45% employee

Hypothesis rejected

(dissatisfied)
2.95

positive influence on employee

45% employee

Hypothesis rejected

(dissatisfied)

satisfaction.
Hyp 4: Promotion system of PBL have

3.7

40% employee

Hypothesis accepted

positive impact on employee satisfaction.


Hyp 5: Salary and other benefit has

3.5

(satisfied)
40% employee

Hypothesis accepted

positive influence on employee


satisfaction.
Hyp 6: ability to meet customer needs has

(satisfied)
4.2

positive impact on employee satisfaction.


Hyp 7: overall job satisfaction has positive 3.35
influence on employee satisfaction

45% employee

Hypothesis accepted

(satisfied)
30% employee

Hypothesis accepted

(satisfied)

Page | 37

Findings on the Hypotheses Analysis from customer perspective:

Here, from the average point we divided into two categories of customer; satisfied and
dissatisfied customer. If the average point is more than 3, then it is satisfied customer and we
then accept the hypothesis. Finally, if the average point is less than 3, then it is dissatisfied
customer and we rejected the hypothesis.
Hypotheses
mean
Hyp 1: Deposit rate of PBL has positive 2.8

Valid (%)
33.33%

influence on customer satisfaction.

customer

Decision
Hypothesis rejected

Hyp 2: Loan rate of PBL has positive 2.8

(disagree)
40% customer

Hypothesis rejected

influence on customer satisfaction.


Hyp 3: Service knowledge of

the 3.06

(disagree)
33% customer

Hypothesis accepted

employee

on

has

positive

influence

(agree)

customer satisfaction.
Hyp 4: Service quality of PBL have 3.13

47% customer

Hypothesis accepted

positive impact on customer satisfaction.


Hyp 5: personal relationship with the 3.6

(agree)
33% customer

Hypothesis accepted

employee

has

positive

influence

on

(agree)

customer satisfaction.

Page | 38

Recommendation:
Pubali bank Ltd seems to have received good level of satisfaction from its employee. Employee
job responsibility is satisfactory, promotional system, salary and other benefits, employee ability
to meet the customer need and overall satisfaction are good at Pubali Bank ltd. Although in
working environment and supervision style area employee have some dissatisfaction, by taking
necessary steps it can be reduce to some extent.
Pubali Bank Ltd also achieves good level of satisfaction from its customer, from their points of
view service knowledge of employee and service quality of pubali bank is satisfactory. It can be
assumed that the deposit rate and interest rate of PBL is higher than another bank so that
customer has some dissatisfaction in this following section. Bank should give proper attention on
this issue but, a very good sigh is the interpersonal relationship with employee and customer are
seen which is very vital on every sector in the PBL

In order to get competitive advantage & to deliver quality service, top management of PBL
should try to modify some of their services. For the improvement of the services, the following
measures should be taken:

Improvement of the official Web Site


Improvement of the existing ATM service
Assuring comfortable working environment:
Establishment of separate customer care unit
Implication of a proper performance evaluation
Development of the Internet & mobile phone banking services
Increasing participation of research and development unit more actively

Page | 39

Conclusion:
This report is conducted through Personal observation and talking responsive with the Bank's
Personnel and customers. As it is not a professional hand, there may be some lacking in every
stage of the report. The findings of the report may not be reliable because it has not been tested.
Pubali bank Ltd,seems to have acceptable level of satisfaction with its customers. But Pubali
bank should do something more for customer because competitive market. They can improve
internet banking, so they could make all work much faster, easier, and hassle free. I hope in
future Pubali bank ltd will enhance more in all departments.

Reference

Anik Bin Sayeed,s 2012 ADVANCE WORKING REPORT OF CUSTOMER SATISFACTION


ON BANK LOAN IN CONTEXT OF PUBALI BANK LTD
Appelbaum, S 2005, A case study analysis of the impact of satisfaction and organizational
citizenship on productivity, Management Research News, Vol 28, No 5, pp. 1-26
Bank Ltd. Asian Business Review, Volume 1, Issue 1, September 2012
Bank Ltd., Asian Business Review, Volume 1, Issue 1, 2012
Commercial Bank in Bangladesh: A Case Study from Pubali
Dorothea Wahyu Ariani, 2015, Employee Satisfaction and Service Quality: Is There Relations?
World Journal of Management Vol. 4. No. 1. March 2012 Pp. 82 92
Hurley, R and Estelami H 2007, An exploratory study of employee turnover indicators as
predictor of customer satisfaction, Journal of Services Marketing, Vol. 21, No. 3, pp.
186-199
International Journal of Business Research and Management (IJBRM), Volume (6) : Issue (3) :
2015
Page | 40

Landy, F 1989, Psychology of Work Behavior, Brooks/Cole Publishing Company, California


Maksuda Hossain1, Abu Md. Abdullah2, Shila Farhana3 Performance Appraisal & Promotion
Practices on Private
Maksuda Hossain1, Abu Md. Abdullah2, Shila Farhana3, 2012 Performance Appraisal &
Promotion Practices on PrivateCommercial Bank in Bangladesh: A Case Study from
Pubali
Nsambu Kijjambu Frederick*, 1998, Factors Affecting Performance of Commercial Banks in
Uganda -A Case for Domestic Commercial Banks International Review of Business
Research Papers Vol. 11. No. 1. March 2015 Issue. Pp. 95 113
Padmakumar Ram,2011, Work Environment, Service Climate, and Customer Satisfaction:
Examining Theoretical and Empirical Connections International Journal of Business and
Social Science Vol. 2 No. 20; November 2011
Robbins, S 2003, Organizational Behavior, international edition, Pearson Education, New Jersey
Wimonphan Piriyathanalai and Nuttawuth Muenjohn* , Is there a link? Employee satisfaction
and service quality World Journal of Management Vol. 4. No. 1. March 2012 Pp. 82 - 92

Appendix:
Page | 41

Questionnaire:
Survey to Determine the Satisfaction Level of the Employee on the basis of service quality:
A case study of Pubali Bank Ltd.
Dear Respondent I am the student of Jagannath University (JnU). I am conducting a survey to
measure the employee satisfaction level on the Basis of service quality of Pubali Bank Limited.
This is the partial fulfillment of my MBA degree. This note is to inform you that your
information will be kept confidential and will be used for academic purpose only and no
individuals information will be given out to any 3rd party. I heartily thank you for your
cooperation.
Screening questions:
Statements

1.
2.
3.
4.
5.
6.
7.
8.

Strongly
dissatisfi
ed

Dissatisf
ied

Neutra Satisfi
l
ed

Strongl
y
satisfie
d
5

Your job responsibility is satisfactory at Pubali


Bank Ltd.?
Working environment of Pubali Bank ltd is
satisfactory?
Supervision style of your supervisor is
satisfactory?
Promotion system of PBL is satisfactory?
Salary and overall benefit are satisfactory in your
job?
Are you satisfied with your working load?
Overall, you are satisfied with your ability to meet
your customers need?
Overall, you are satisfied with your job?

Page | 42

Questionnaire:
Survey on Determine The Satisfaction Level of the Customer on the Basis of service
quality: A case Study of Pubali Bank Ltd.
Dear Respondent I am the student of Jagannath University (JnU). I am conducting a survey to
measure the customer satisfaction level on the Basis of service quality of Pubali Bank Limited.
This is the partial fulfillment of my MBA degree. This note is to inform you that your
information will be kept confidential and will be used for academic purpose only and no
individuals information will be given out to any 3rd party. I heartily thank you for your
cooperation.
Part one: Demographic data of respondents
1. Age
:
20-25
26-30
30-35
2. Sex
:
Male
Female
3. Profession :
Student
Service Holder

35-40
Business

Other

Part Two: Screening questions:


Statements

1.

Deposit rate in Pubali bank is satisfactory

2.

Loan rate in Pubali bank is satisfactory

3.

Service knowledge of the employee is satisfactory

4.
5.

Service quality of the PBL is satisfactory


Personal relationship with the employees is
satisfactory

Strongly
Disagree

Disagree

Neutral

Agre
e

Strongl
y Agree

Page | 43