Critically Analyzing the Impact of Wages on Employee Productivity Within an Organization-Management Assignment Sample

QUESTION

 

Assessment Task

In the current international economic environment, entrepreneurs and managers are frequently required to undertake business planning, project and consultancy work in addition to their core responsibilities. Frequently, these projects are focused upon investigating new business opportunities or potential strategic changes in order to create, retain and extend competitive position.

The assessment task is to produce a 7000 words  research project report based on an independent research, which investigates a business/organisational or management problem, issue or challenge, applies appropriate research techniques and analysis, and consequently informs the development of a business plan and/ or results in recommendations for change.

Topic : Critically Analyzing the impact of wages on employee productivity within an organization : A case study of United Overseas Bank Limited

 

 

ANSWER

CRITICALLY   ANALYSING THE IMPACT OF WAGES ON EMPLOYEE PRODUCTIVITY WITHIN AN   ORGANISATION: A CASE STUDY OF UNITED OVERSEAS BANK LIMITED

 

Abstract

The research study discusses importance of wages of employees and its relationship with the quality of service provided by the employees and customer satisfaction level. Wages reflect employee productivity and performance within an organization. It is essential for a company to keep employees motivated by giving satisfactory wages and rewards. Determination of an employee’s salary is decided by several factors such as duration of duty, position of the company, working environment, growth of employee along position of employees within a company. Salary of company increases at a better rate if growth of his company has been stable. Employees of banking sectors enjoys of having better pay scale than other private sector employees. Private sector employees get more salary than employee of banking sectors. Positivism philosophy as well as deductive approach has been followed in this research. Moreover high wage structure makes the employees motivated to put their best performance which leads to a better quality of service provided by the employees. This enhanced service quality ultimately generates customer satisfaction and develops a strong customer base. In order to continue this study, 50 customers of the United Overseas Bank, Singapore were been chosen out of which 45 respondents have taken part in this research. By asking them various questions regarding the topic, it has been understood that how much wages affect employee performance and the quality of service provided by them to the customers of United Overseas Bank Limited.

 

ACKNOWLEDGEMENT

It provides me immense pleasure to present my dissertation entitled as “CRITICALLY ANALYSING THE IMPACT OF WAGES ON EMPLOYEE PRODUCTIVITY WITHIN AN ORGANISATION: A CASE STUDY OF UNITED OVERSEAS BANK LIMITED”. This topic of research has helped me to gather immense knowledge about wage strategies as well as its role employee productivity.

I wish to extend most sincere gratitude for those who have helped me to lead this research work towards a reality. Firstly, I thank those who have helped me to gather data throughout the research. I would like to like to present heartiest thanks towards my professors who have helped me to understand this topic and have also helped me to land into a conclusion in this study. I would also like to thank my fellow mates as well as friends who provided me with enough assistance to reach a definite goal. I acknowledge support of batch mates, supervisors as well as professors for this study and I declare to be solely responsible for shortcomings of this research.

Table of Contents

Section One – INTRODUCTION

1.1 Introduction

1.2 Research background 

1.3 Rationale 

1.4 Aim and Objectives 

1.5 Research questions 

1.6 Significance of the research 

Section Two- Literature review 

2.1 Introduction 

2.2 Critically Discussing importance of wages 

2.3 Critically discussing importance of employee productivity within an organization

2.4 Critically discussing impact of wages on employee performance on employee productivity within an organization 

2.5 Theory Related to employee productivity 

2.6 Conceptual Framework 

2.7Gap in literature 

2.8 Summary 

Section Three- METHODOLOGY 

3.1 Introduction 

3.2 Research approach 

3.3 Research philosophy 

3.4 Research design 

3.5 Data Collection method 

3.6 Sample size and Sampling Technique 

3.7 Process of data analysis 

3.8 Ethical issues 

3.9 Research limitations 

3.10 Summary 

Section five: Findings 

4.1 Introduction 

4.2 Quantitative data 

4.3 Qualitative data 

4.4 Summary 

Section five: Discussion and analysis 

5.1 Introduction 

5.2 Analysis of the quantitative finding 

5.3 Analysis of the qualitative finding 

5.4 Discussion 

5.5 Summary 

Section Six: Conclusion and Recommendation 

6.1 Conclusion 

6.2 Recommendation 

Reference List 

Appendices 

Appendix 1: Survey questionnaire 

Appendix 2: Survey response 

List of figures

Figure 2: Hertzberg’s two factor theory 

Figure 2.1: Theory Related to employee productivity 

Figure 2.2: conceptual framework 

Figure 4.1: Graphical representation on gender division of respondents 

Figure 4.2: Graphical representation on gender division of respondents 

Figure 4.3: Graphical representation on working tenure of respondent respondents 

List of tables

Table 4.1: Gender division of respondents 

Table 4.2: Age group of respondent respondents 

Table 4.3: Customer ship tenure of the respondents 

Table 4.4: descriptive analysis table 

Table 4.5: Bivariate correlation table 

Table 4.6: Model summary 

Table 4.7: ANOVA table 

Table 4.8: Coefficient table 

Table 6.1: Smart recommendation 1 

Table 6.2: Smart recommendation 2 

Table 6.3: Smart recommendation 3 

Section One – INTRODUCTION

1.1Introduction

Globalization has its impacts in every sector starting from trade, manufacturing industry and other services. There is no doubt that wages of the employees have its impacts upon the productivity rate of the organisation. Every company needs to set the wage of employees in a certain parameter so that it can result into an enhanced employee performance and service quality which can satisfy the service users and the customers.

1.2 Research background

The main context for this research is to find out how the employees’ wages in Singapore are affecting productivity. The calculation of employees wages increase the necessities of living, economic growth, inflation rate and productivity. It has its impacts upon the employees’ lives, company and country as a whole. National Wage Council of Singapore has extended the Wage Credit Scheme. The basic wage of employees has increased from $1,200 to $1,300 (mom.gov.sg, 2019). SkillsFuture, under the scheme of government is helping in providing training to the employees in order to upgrade skills who are working at a low wage (todayonline.com, 2019). Under this NWC, Annual Wage Supplement has increased from low wage working.

The current project is about the different wages of employees in Singapore affecting productivity of the companies. It has been reported that women in Singapore are paid 13% less than men, including that it is noticed that women workforce have been doubled up from 7.5% to 15.2% in few years (asiaone.com, 2019). In the context of United Overseas Bank, it has been noticed that how the wages of the bank employees affect the productivity. The salary of the employees in UOB in Singapore is higher than other banks that affect the productivity (simplywall.st, 2019). Last year there has been a large change in the salary of the CEO. In this context, this wage is differing from the other companies in the same field by considering the performance of the employees. This bank is increasing its earnings in an average of 8.9% as well as its revenue has increased to 9.5% (simplywall.st, 2019). With the increasing earning in the bank, it has not only increased the salary of the CEO but also increased the productivity.

Additionally, this can also be mentioned that United Overseas Bank of Singapore has topped in the field of customer satisfaction in the region, by attaining a score of 1.7 on the scale of 1 for “satisfied” and 5 for “dissatisfied” (Lam, 2019).

1.3 Rationale

The main issue with this increment of the wage of the CEO is how it increases the productivity of the bank. In this context, it is required to delve deep into exploring the wages and remuneration of base level employees of the organization in terms of finding out the impact on the overall growth of the bank.

This is an issue because this is related to the productivity of a company. In this case, the minimum wage of other employees of UOB needs to meet the basic needs of employees. Higher wages help the firms to retain and attract better employees as well as paying above other banks or casual market rates motivates employees in performing better. By hiking the minimum wage, a firm can spur productivity. Efficiency wages is important for motivating the existing forces in employees. Under the national wage council of Singapore employees can join WorkPro for redesigning their jobs to be safer, smarter and easier in their working environment. In this context, how increment in CEO’s salary will affect the productivity of UOB or how this will have its impact in increasing the workability of the organization.

At present, this is an issue as in the last three years the productivity of UOB has increased. The revenue and earnings per share have increased over the years that are why this bank is paying more to its CEO than other banks. The compensation of the CEO was $6.1 million but at present this is $11 million (simplywall.st, 2019). The remuneration is higher that can affect the productivity of the bank in the same market. In order to keep balance in the market, the company needs to change the wages policy of the company. The system in wages in corporate sectors, banks have its impact upon the productivity of the company.

This research also emphasises on the fact that the increased and appropriate wage structure motivates the employees to put their best performance. This results into an enhanced quality service given by the employees of the organisation to the customers. Fulfilment of customer’s demand and need can benefit the company in a great way by developing a strong customer base.

The current study sheds light in the area of productivity that is correlated with the system of wages in special reference with the United Overseas Banks Limited in Singapore. This has also discussed the difference between the salaries of the employees in UOB affect the productivity of the bank.

1.4 Aim and Objectives

The main aim and objectives of the study is to find out the impact of wages on employees productivity within an organization in special reference with United Overseas Banks Limited.

This study targets to cover the areas such as,

  • To understand the impact of wages on organisational productivity

  • To evaluate the concept of employee productivity

  • To figure out the dependency of the employee performance and service quality on the wage structure

  • To assess the relation between the customer satisfaction due to better service given by the employees and the organisational productivity

  • To recommend certain strategies to resolve the identified issues

1.5 Research questions

  • What are the impacts of wages on organisational productivity?

  • How does employee productivity impact the part of organisational productivity?

  • How the employee performance and service quality is dependent on wage structure in the context of United Overseas Bank limited?

  • What is the relation between the customer satisfaction due to better service given by the employees and the organisational productivity?

  • What can be the possible strategies to resolve the identified issues?

1.6 Significance of the research

The study is significant as this has discussed how an organization’s wage system has its impacts in the productivity of an organization. On this special note, UOB can be benefited with this study. In this context, it has discussed how this is related to the economic situation of the company, inflation rate of the market.

1.7 Summary

This study is important because this will help other banks in terms of increasing productivity by making changes in the wage system. By following the study, UOB can improve the company’s productivity and wage structure in order to provide a better service to their customers.

Section Two- Literature review

2.1 Introduction

All employees work for an organization because employees are paid for their work and efforts. For wages is important for employees as well as organizations. Employees need their jobs just as companies need employees to maintain health position in the market.

2.2 Critically Discussing importance of wages

As opined by Haider et al. (2015, p.343), fair salary keep employees satisfied significantly. It is essential for a company to keep employees motivated by giving satisfactory wages, rewards as well as incentives. Salary is determined by number factors such as working hours. As mentioned by Ng and Feldman (2014, p.157), if an employee is working for nearly 9 to 10 hour in an organization then salary of that employee must be higher with respect to other organizational employees performing for 7 to 8 hrs. Salary factor is also decided by nature, size and growth of a company including its location.

When a company is located in emerging economic market, it can get a lot of options for growth and opportunity. As opined by Masakure (2016, p.275), nature of the company can be suitable for having considerable amount of opportunity in a regional and local market. Large companies have a stable position in market and because of this reason employees of large companies enjoy the advantage of getting paid more than employees of other SMEs. On the other hand Haider et al. (2015, p.343) commented that employee salary increases at a better rate if growth of the organization is stable along with increase in sales volume of organizational products. Employee salary also depend on the nature of the company because employees of IT companies, banking industry along with retail organization and public sectors get much higher salaries than staff belongs to other industries.

2.3 Critically discussing importance of employee productivity within an organization

Productive employees help an organization for utilizing available resources within an organization. Successful business firms give importance to productivity of employees for better growth. Productive and experienced employees help an organization to grow for producing better sales volume of their products. It can help better annual revenue along with more annual profit income for company. As mentioned by Ouimet and Zarutskie (2014, p.403), better productivity always results in better customer service and interaction between customer and organizational employees can increase. Customer get positive experience from product and service of a company and demand of product will increase. It can help the company to stabilize their position in competitive market over their competitors. On contrary Bova et al. (2015, p.641) argued that productive employees helps a business firm to achieve their goals much more quickly and easily than expected deadline. As mentioned by Barattieri (2014, p.71), productive staff create a positive and healthy environment within the organization. When employees are doing their works effective, their motivation is at a high level and employees enjoy their work. It is import to foster an energetic work environment to keep employees motivated and productive. As stated by Cloutier et al. (2015, p.49), productive employees also attract higher authority member to recognize their special talent and productive employees also get promotion more quickly than other non productive staff.

2.4 Critically discussing impact of wages on employee performance on employee productivity within an organization

Wages reflect employee productivity and performance within an organization. Wages of employees also reflects current position of the industry in ongoing market. Amount of wages represents value of efforts put by an employee in the organization. As mentioned by Bogenschutz et al. (2014, p.319), workers themselves get motivation by if they are given considerable amount of salary to support their efforts and hard work. All workers have high expectations from an organization about their salaries and wages. As mentioned by Ajmal et al. (2015, p.463), increasing wages can help employees to enhance their performance in order to keep a stable position within company. Employees get opportunity to enhance their employability skills and knowledge by gaining experience in a company. As asserted by Onkelinx et al. (2016, p.355), sometimes workers don’t get the motivation even if the given duty is easy because their salary is not enough to support their daily basis life progress. Fair employee wages help to reduce employee turnover because employees stay loyal to the organization. Therefore, workplace environment get stable and employee observe their opportunity to have future growth within the company. As mentioned by Ghaly et al. (2015, p.55), quality of work life can be improved employees can be able to interact with customers with strategic approach which will result in improved customers service. Therefore, overall productivity of employees can be increased if employees are given fair wages for their efforts and hard work.

2.5 Theory Related to employee productivity

McGregor’s theory of X and Y

Theory developed by Douglas McGregor suggest two factors including X and Y. As per principle of this theory, organizational employees are directly linked to one of these factors within the organization. As opined by Lawter et al. (2015, p.89), theory of X and Y discusses issue faced by managers to increase productivity, steps should be taken by authority for enhancing employee performance and importance of increasing employee productivity within an organization. As opined by Gürbüz et al. (2014, p.1093), factor X assume that an employee does not like his work. Employee avoids his responsibility, duty and role given to him hierarchy members. Because of this reason, that employee is controlled and supervised in every step of his job. As the employee is not motivated, he should be incited from time to time and threatened to penalize him by severe consequences. As opined by Aithal and Kumar (2016, p.2461), this course of action could produce effective results in case of close supervision and tough management process is imposed on such employee.

Second theory of Y believes that employees within an organization are self dependent, motivated, proactive as well as creative; employees are willing to take responsibility by solving their problems without taking any help from, other hierarchy members. Management styles in such case are decentralized. Although close supervision are given on such employees, they are allowed to take part in company’s decision making process by allowing employers to give suggestions. As asserted by Hattangadi et al. (2015, p.21), it could encourage employees to more responsibilities. Employee gets opportunities to enhance their skills by putting innovative ideas in their creativity. On the contrary, Lawter et al. (2015, p.89) commented that without fulfilling requirement of employees such as daily wages and their demand related to work time, employees of an organization cannot be satisfied significantly.

As opined by Gürbüz et al. (2014, p.1093), both theory X and Y working towards increasing employee productivity. In case of theory X, managers have imposed close supervision to allow employees take up more responsibility by giving opportunity to get mature. On the other hand, Aithal and Kumar (2016, p.2461) argued that theory Y suggests mangers for giving direction to experienced employees who already know their role and responsibility. Therefore it is clear that both close supervision and giving strategic direction to employees are important for enhancing employee productivity.

Hertzberg’s two factor theory

As per principle of Herzberg’s two factor theories the employees need motivation to enhance their performance in a healthy workplace. As opined by Alshmemri et al. (2017, p.15), two factors are mainly responsible for employee motivation which later will result in improved productivity. First factor is motivating factor which encourages an employee to work with more responsibility by giving job satisfaction. This factor is naturally present in a job. On the other hand Ozguner and Ozguner (2014, p.113) argued that lack of presence of hygiene factors will cause dissatisfaction to an employee. Although hygiene factor cannot be found in actual job, hygiene factors are surrounded by a job. As opined by Alfayad and Arif (2017, p.155), motivating factors include achievement, responsibility, advancement, and recognition. Employees must have a little sense of achievement in their job. Employees feel proud when they are able to overcome something difficult. This will give them motivation to achieve further difficult works in future. As mentioned by Alshmemri et al. (2017, p.15), achievement will make the employees capable to be well recognized by their higher authority members as well as their juniors. Employees can get promotional opportunity and getting more wages. When employers observe an opportunity for growth in an organization, they autonomously take responsibility in their hand to improve their performance. All of discussed factors will help organization to enhance employee productivity.

As stated by Ozguner and Ozguner (2014, p.113), the factors related to hygiene include company principles, employee relations, working conditions and salary. Company principles help employees to be disciplined. Healthy workplace environment is an important aspect and it can be achieved by maintaining good relation with organization employees. It will help employees to motivate each other. Employee productivity will increase when employee are working as team having a common goal.

Vroom Expectancy theory

As per principle of this theory, expectancy is a belief which helps to increase employee effort by leading to increase job performance and productivity. Expectancy is affected by the available resources, skills of employees and support of an organization for achieving expected outcome. This theory also gave a valuable understanding about instrumentality and valance. Instrumentality refers to a valued outcome which is only achieved by giving good performance. As mentioned by Parijat and Bagga (2014, p.3), first level outcome will result in achievement of second level outcome. For an example, employee will get salary increment if they are able to achieve desirable outcome on without taking help from others. As mentioned by Miner (2015, p.121), salary increment will give employees further motivation for increasing productivity to get promotion. On the other hand, valance defines the importance that is placed by employees on their productive work performance. For an example, when employee seek for easy jobs they might not get desirable wage.

Figure 2.1: Theory Related to employee productivity

2.6 Conceptual Framework

Figure 2.2: conceptual framework

2.7Gap in literature

Importance of employee wages and their productivity for organization have been discussed thoroughly in literature review portion of this research project. Major factors such as nature, size and growth of a company including its location have described clearly for critically analyzing impact of these factors on employee wages. Better productivity always results in better customer service and interaction between customer and organizational employees can increase. Importance of employee productivity for improvement of overall organizational performance have been defined and discussed. McGregor’s theory of X and Y, Herzberg’s two factor theory along with vroom expectancy theory was included in order to provide support on this research project.

2.8 Summary

Except salary there are some other major factors including location, commission, bonus, incentives, rewards, work timings and employee training which help to increase motivation and performance of employees. These major factors have not been touched in this project. Thus, it creates little gap in this literature.

Section Three- METHODOLOGY

3.1 Introduction

The methodology of primary research methodology has been chosen for conducting the research. This study has followed the primary data collection method including 45 customers who are the customers of United Overseas Bank, Singapore. The Quantitative information and data are collected for this research. This research has followed deductive approach, post-positivism philosophy, and descriptive research design.

3.2 Research approach

In order to pursue the research, deductive reasoning or approach has been chosen as this is incorporated with the hypothesis that is mainly focused on existing theory. This approach is mainly concerned with expected patterns which are tested properly by observing the things. In order to justify the main matter of the paper, this research has explained the causal relationships that are in between variables and concepts. Saunders et al. (2007, p.143), has commented in this context that in order to get the perfect result it starts with social theory that ends with understanding of implications with data. Within a short time, deductive approaches provide an abundance of resources that help in conducting the research (Nassaji, 2015, p.131). By following the research, it has found out the impact of wages on employees productivity. With applying the research approach, this study has collected various important data and information that helps in research.

3.3 Research philosophy

Post positivism philosophy supports the way scientists work and think is different from general people. Jackson (2015, p.52), has provided his views in this context that in order to conduct the research, post positivism philosophy is the proper way as this thinks that every observation has some error and only for that reason all theory can be revisable. In order to get the right result about the truthfulness of the impacts of wages on employees’ productivity through the research, this study has concerned with post positivism. By following the scientific inquiry model, this study understands the thoughts of customers of UOB in Singapore. In order to assess the reality of the topic, this philosophy helps most.

3.4 Research design

Descriptive research design goes with research as this support the scientific method that helps the study in taking the particular and appropriate data and information. This design is involved in describing and observing the behavior about a particular topic. By understanding the limitations of the research, it can be taken as the true fact. Harriss et al. (2017, p.1128), opined that this design allows observation that never affect the normal behavior. Kothari (2004, p.52), has stated that this descriptive research supports quantitative experimentation of research. In order to get quantifiable information that can be used for statistical analysis, this research design helps to get those information. By measuring data trends, the study gets proper data. By applying this design in research, it can describe and understand the nature of demographic sections. As this supports observational methods for conducting research, variables are not affected in this research.

3.5 Data Collection method

Primary data collection method has been chosen for continuing the research. This data collection method helps in making the study more appropriate that assists especially in answering the questions as well as test the hypothesis. Through this field research, the data about a topic is current and directly questions the issue (Walliman, 2017, p.29). For this research, a survey with 45 customers of UOB has been conducted for understanding the impacts of customer satisfaction, service quality and employee performance. Kumar (2019, p.63), has opined that in order to get descriptive information about the particular topic survey is most significant. Mackey and Gass (2015, p.36), have commented that primary data collection method helps the study in many ways by querying various factors about their personal attitudes, experience, knowledge, and preference. Via survey one can easily calculate what and how many people are supporting the factors (Teherani et al. 2015, p.668). The response of the customers helps in conducting the research. By collecting data and information about the impacts of the customer satisfaction, service quality and employee performance, this primary data collection method helps the study to a greater extent.

3.6 Sample size and Sampling Technique

In order to continue this study, total 50 customers who are the customers of United Overseas Bank, Singapore. Out of these 50, only 45 have responded in this research. By asking them various questions regarding the topic, it has been understood that to which extent the quality of service provided by employees of organization affects the satisfaction level of the customers. For gathering quantitative data from the reliable resources, this study has followed this pattern. Various questions are asked by using these methods directly to the customers for collecting the materials and data (Sekaran and Bougie, 2016, p.33). Quantitative data is important in this case. Groeneveld et al. (2015, p.67), has provided their views in this context that in order to have quantitative data from a group of people, this will help the study in its progression.

Random sampling technique has been taken as it fits with the research. In order to give equal chance to all the selected people in the group, random sampling helps a lot. By doing this, each of the customers from UOB has a fair chance of taking part in this research. This particular sampling technique is mostly used when there is no prior idea about the target mass. Bishop and Kuula-Luumi (2017, p.235), have correctly opined that each of the people can be selected as subject. In order to conduct the research with those 45 people different questions were asked to them to know their views in this matter of customer satisfaction level and quality of service provided by employees. In order to draw a fair conclusion through this research, this random sampling technique can be most important as this is reasonable for making generalizations from results of different samples back to population.

3.7 Process of data analysis

In order to analyze data, SPSS software has been applied in this research process. Particularly, for better understanding of the data from the selected customers, SPSS has been used in descriptive method. SPSS software helps in data analysis and research. Larson-Hall (2015, p.22), has commented in this context that in order to give statistical analysis, SPSS software helps a lot in research. Text analytics program of SPSS software helps this survey for uncovering the powerful insights of the information. Case selection, data management is easier with the help of using SPSS in research. Visualization designer program of SPSS allows using the collected data for creating a wide range of visual like box plots, and charts with ease.

3.8 Ethical issues

The main area to be concerned about is the protection of data and raw information which are collected from various authentic sources. As the data used particularly in this research are from some open source hence this can be predicted that these will not generate ethical issues.

For the purpose of pursuing the job with ease the research has to be aware of the requirements and has to inform the authorities timely. They also inform about the purpose and every progress of the project. These factors are effective to maintain the legal issues as well as the work transparency.

Roberts (2015, p.320) stated that, as per the guidelines and principles, the researcher needs to keep the confidentiality of every data and information collected. The Personal Data Protection Act, No. 26, 2012 of Singapore also not allows any type of leak in data and personal information (Iclg.com, 2019).This research deals with several data related to the overseas bank and a strict secrecy is maintained to keep all the data confidential.

According to Silverman (2016, p.413) the researcher must provide the data from genuine and authentic resources. Additionally the alteration of data is strictly not allowed in the field of research. Hence in this research all type of corrupted data is avoided and only the verified resources are utilized.

3.9 Research limitations

Various types of limitations are found while conducting the process of research. Such limitations act as the hindrances in the path of research process.

The most profound limitation which was recognized during the research is the shortage of sufficient time required to pursue the work smoothly. The allocated time for this project was not enough to conduct the entire process of research appropriately.

Other than this time factor there are several issues present. Hughes (2019, p.121) opined that the finding of appropriate group of respondent is a hard thing. In this case the researchers paid extra attention in order to get genuine responses from the respondents of the survey without any biases.

Another issue related to the research is the small size of the sample. The entire survey is conducted on basis of 45 respondents, who are the customers of United Overseas Bank, Singapore. The ethical issues and the limitations of this research are also discussed in this chapter.

3.10 Summary

The above chapter is about the details of the methodologies used in the research process. This sampling technique is random, and the research design is descriptive. The deductive approach is followed in this research.

Section five: Findings

4.1 Introduction

In this fourth chapter the analysis is done on basis of the responses of 45 customers who are the customers of United Overseas Bank, Singapore (UOB). There are 8 questions on which the survey is conducted. The given responses of the employees are recorded and on basis of these quantitative data further evaluation is done using the IBM SPSS v20 software.

4.2 Quantitative data

A survey was arranged with 45 customers who are the customers of United Overseas Bank, Singapore. Close ended questions are given in this survey session. They were only given 5 options and they had to choose one options only.

4.2.1 Demographic data

Three demographic questions are framed in order to get the idea of demographic aspects of those 45 UOB customers.

  1. Gender

gender

no. of respondents

percentage

male

23

51.11

female

19

42.22

other

3

6.66

total

45

100

Table 4.1: Gender division of respondents

The above table represents number of male, female and other gender of 45 customers who are the customers of United Overseas Bank, Singapore from different places, industry, and neighborhood.

Figure 4.1: Graphical representation on gender division of respondents

  1. Age group

AGE GROUP

no. of respondents

percentage

25-35

18

40

36-45

15

33.33

above 45

12

26.66

total

45

100

Table 4.2: Age group of respondent respondents

The respondents are divided and placed in this table as per their age group. Such age groups are 25-35, 36-45, and above 45 years.

Figure 4.2: Graphical presentation of gender division of respondents

Time period of association with UOB

no. of respondents

percentage

less than 6 months

5

11.11

6-12 months

7

15.55

1-3 years

9

20

3-5 years

12

26.66

5-10 years

10

22.22

more than 10 years

7

15.55

total

45

100

Table 4.3: Customer ship tenure of the respondents

The selected 45 customers are divided into subgroups and placed in the table on basis of their association with United Overseas Bank, Singapore.

Figure 4.3: Graphical representation on working tenure of respondent respondents

4.2.2 Descriptive data

Descriptive Statistics

N

Minimum

Maximum

Mean

Std. Deviation

customer_satisfaction

45

1

5

3.64

1.264

employee_service_quality

45

1

5

3.71

1.160

customer_demand_fulfil

45

1

5

3.93

1.031

employee_attention_to_customer_need

45

1

5

4.16

.999

Valid N (listwise)

45

Table 4.4: descriptive analysis table

Out of the respondents who have been the customer of United Overseas Bank, Singapore, most of the respondents agreed to the statements that customer satisfaction depending on employee performances and service quality results in organizational development. The deterioration in the quality of the service provided to the customers can generate customer dissatisfaction.

4.2.3 Bivariate Correlation

The main objective of conducting the bivariate correlation analysis is to evaluate the correlation among the customer satisfaction and the employee service quality of the overseas bank of Singapore. In order to meet the objective the following hypothesises are framed.

H01: there is no relation or any association between customer satisfaction level and quality of service provided by the employees in the company Overseas Bank, Singapore.

H11: there is a strong relation between customer satisfaction and quality of services provided by the employees in the Overseas Bank, Singapore.

H02: there is no relation and association between the fulfilment of demands and needs of the customer and the behaviour of the responsible employee.

H12: there is an association and relation between fulfilment of demands and needs of the customer and the behaviour of the responsible employee.

H03: there is no relation between the designation of the employees and the attention paid to the problem of the customers.

H13: there is a relation between the employees’ designation and the attention paid by them to the mitigate customer’s problem.

Correlations

customer_satisfaction

employee_service_quality

customer_demand_fulfil

behavioural_approach_of_employees_to_customers

employee_designation_service_quality

employee_attention_to_customer_need

customer_satisfaction Pearson Correlation

1

.951**

.940**

.880**

.952**

.873**

Sig. (2-tailed)

.000

.000

.000

.000

.000

N

45

45

45

45

44

45

employee_service_quality Pearson Correlation

.951**

1

.933**

.883**

.945**

.883**

Sig. (2-tailed)

.000

.000

.000

.000

.000

N

45

45

45

45

44

45

customer_demand_fulfil Pearson Correlation

.940**

.933**

1

.896**

.964**

.915**

Sig. (2-tailed)

.000

.000

.000

.000

.000

N

45

45

45

45

44

45

behavioural_approach_of_employees_to_customers Pearson Correlation

.880**

.883**

.896**

1

.867**

.968**

Sig. (2-tailed)

.000

.000

.000

.000

.000

N

45

45

45

45

44

45

employee_designation_service_quality Pearson Correlation

.952**

.945**

.964**

.867**

1

.876**

Sig. (2-tailed)

.000

.000

.000

.000

.000

N

44

44

44

44

44

44

employee_attention_to_customer_need Pearson Correlation

.873**

.883**

.915**

.968**

.876**

1

Sig. (2-tailed)

.000

.000

.000

.000

.000

N

45

45

45

45

44

45

**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.5: Bivariate correlation table

4.2.4 Linear regression

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.951a

.904

.895

.410

a. Predictors: (Constant), behavioural_approach_of_employees_to_customers, customer_demand_fulfil, service_quality_company_reputation, employee_attention_to_customer_need

Table 4.6: Model summary

In the above table the R value and the R square value are shown. Simple correlation value is represented by R which is 0.951 in this case. Hence the degree of correlation observed here is high. The R square value represents the total amount of variation which is dependent and the R square value in this case is 0.904.

ANOVAa

Model

Sum of Squares

df

Mean Square

F

Sig.

1 Regression

63.571

4

15.893

94.315

.000b

Residual

6.740

40

.169

Total

70.311

44

a. Dependent Variable: customer_satisfaction
b. Predictors: (Constant), behavioural_approach_of_employees_to_customers, customer_demand_fulfil, service_quality_company_reputation, employee_attention_to_customer_need

Table 4.7: ANOVA table

The above ANOVA table along with the regression model profoundly indicates that the dependent variable is significant. The significance value is 0.000 which shows that p<0.005.

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1 (Constant)

-1.043

.292

-3.569

.001

customer_demand_fulfil

.784

.201

.640

3.911

.000

employee_attention_to_customer_need

-.541

.285

-.427

-1.899

.005

service_quality_company_reputation

.424

.230

.364

1.846

.007

behavioural_approach_of_employees_to_customers

.510

.261

.384

1.955

.005

a. Dependent Variable: customer_satisfaction

Table 4.8: Coefficient table

In this coefficient table this is observed that the significant value is 0.001, 0.000, 0.005, 0.007 and 0.005 which are less than 0.05. The beta value in the first case is 0.640, -0.427 in the second case 0.364 in the third case and 0.384 in the fourth case.

Hence as the p value is less than 0.05, the null hypothesis is rejected and the correlation between the customer satisfaction and employee service quality is established.

4.3 Qualitative data

For the qualitative data analysis interview was conducted with a questionnaire consisting two relevant questions. Two loyal card holder customers of overseas bank of Singapore are interviewed.

Question 1: Do you think that the wage structure can improve the employee service quality?

The first customer interviewed stated that the increased wage structure can definitely improve the employee performances. High wage structure motivates the employees to put their best for the development of the organisation. The overseas bank also follows this strategy of high wage structure in order to improve employee performances.

According to another customer the high wage structure increases the employee involvement and work dedication. Hence this can also result into efficient productivity of the employees.

Question 2: Do you think that quality of employee service and customer satisfaction level ultimately benefits the organisation?

According to one customer of the overseas bank, Singapore the service quality provided by the employees is the major field to generate customer satisfaction. Customers are the base of any organisation. Hence customer satisfaction will build a good reputation of the organisation in the market which will ultimately benefit the company itself.

According to the second customer, the employee satisfaction motivates the bank employees to improve their service quality. The service quality and employees’ performance increase the rate of productivity of the organisation.

4.4 Summary

The chapter of finding and analysis includes survey of 45 respondent, who have been the customer of UOB,Singapore and an interview of 2 LOYAL CARD holder customers involving two questions. All the result of the finding indicates that there is strong relation between the quality of service provided by the employee and the level of customer satisfaction.

Section five: Discussion and analysis

5.1 Introduction

This chapter is all about discussing and analysing the information and data found in the chapter 4. The analysis is done in order to determine whether the wage structure has an impact on the employee performance or not. Both the qualitative and quantitative data are analysed and discussed in detail.

5.2 Analysis of the quantitative finding

5.2.1 Demographic analysis

The demographic question based on the gender division was the first one where it was found that out of 45 of the respondents participating in the survey, 23 are male, 19 are female and other are 3. 51.11% is male where 42.22% is female and 6.66% is of other gender. Hence this can be said that majority part of the respondents is male but number of female workers is just a little less.

The second question related to the demographic aspect was related to the age group range of the respondents. It was found that out of 45 respondents’ 18 respondents are from the age group of 25-35, 15 are from 36-45 age groups, and 12 are of age above 45. Hence, it can be said that 40% of respondents are from the young age group range, 33.33% of the respondents are middle aged where 26.66% are above the age of 45. Hence the most of the respondents are from young and middle age group.

The final survey question was about determining the number of years the person is being the customer of United Overseas Bank, Singapore. Thus the maximum percentage of employees that is 26.66% is being the customer of this bank for 3-5 years. Moreover the maximum customers have been the customer here for more than a year.

5.2.2 Descriptive analysis

Out of 45 respondents related to the banking sector, Singapore, most of the respondents agreed to the statement that the level of customer satisfaction is dependent on the service quality provided by the employees. The mean value of 3.64 and 3.71 represents that the majority of the respondents have almost supported the statement.

The maximum respondent also agreed to the statement that the employee performance influence the demand fulfillment of the customers of United Overseas Bank. The mean value of 3.93 in the above analytical chart represents so.

The mean value of 4.16 again represents that most of the respondent, agrees to the fact that employee attention paid to the customer problem influences the reputation of the organization.

5.2.3 Bivariate Correlation analysis

From the above table this can be said that the value of P in all the above three cases are less than 0.05 hence the strong relation between the wage structure and the employee productivity of the employees can be established.

In case of first hypothesis the coefficient value is 0.951 which is a nearby value of 1, represents a positive and reasonably strong relation between the customer satisfaction and employee service quality hence the null hypothesis is rejected.

In case of second hypothesis the coefficient value is 0.896 which is close to 1, represents a positive and reasonably strong relation between the fulfilment of the customer demand and the behavioural approach of employees.

In case of third hypothesis the coefficient value 0.867 represents a positive and reasonably strong correlation between the designation of the employee and the high wage structure for the qualified employees having high designation in the organisation.

5.2.4 Linear regression analysis

The model summary report of linear regression represents that the dependency of the customer satisfaction level on the quality of service given by the employees is quite high. This can be claimed that the regression model is representing the relation between the dependent and independent variables in a significant manner.

5.3 Analysis of the qualitative finding

According to Hughes et al. (2019, p.118) the wage structure has a strong relation with the employee performances which ultimately results into organisation productivity. Both the Loyal Card holder of the organisation of overseas bank, Singapore agreed to this fact. According to them the wage structure plays a great role in improving the company performances as this motivates the employees to put their best. Konings and Vanormelingen (2015, p.490) stated that the wage structure must depend on the skill and performance of the employees. Hence the employee with good level of performance will get higher salary. The customers of the overseas bank also support this fact and said that this high payment structure for the better performance is a process to encourage the employees to increase their service efficiency which is capable to lead to customer satisfaction. Carlsson et al. (2015, p.1743) opined that wage structure of the employees has a great influence on the quality of service they provide to their customers.

5.4 Discussion

From the above data analysis this can be said that, there is a strong dependency the employee performance and service quality on the wage structure. Additionally this can also be concluded that, organisational productivity and reputation is highly dependent on the customer satisfaction level.

High wage structure makes the employees motivated to put their best performance which leads to a better quality of service provided by the employees. This enhanced service quality ultimately generates customer satisfaction and develops a strong customer base. Thus, following the trend of United Overseas Bank, Singapore, every company needs to set the wage of employees in a certain parameter so that it can result into an enhanced employee performance and service quality which can satisfy the service users and the customers. The fulfilment of customer’s demand and need can benefit the company in a great way by developing a strong customer base. Thus there is a strong relation between the wage structure, employee performance and customer satisfaction.

5.5 Summary

The above finding also supports this fact that the level of customer satisfaction is completely dependent on the service quality which the employees used to provide. On the other hand the wage structure is a factor which keeps the employees motivated to put their best in their job which can ultimately enhance the customer satisfaction level. Moreover the wage structure and the designation of the employee are also considered to be the factors which influence the customer satisfaction and results into better reputation and productivity.

Section Six: Conclusion and Recommendation

6.1 Conclusion

Thus, this can be concluded from the above research that productive and experienced employees of an organization will give it opportunity of growing along with producing better sales volume for existing products. Employees get the motivation which increases their performance if they are given fair wages and selective promotion of improving employee performance and productivity. It is essential for a company to keep employees motivated by giving satisfactory wages and rewards. Determination of an employee’s salary is decided by several factors such as duration of duty, position of the company, working environment, growth of employee along position of employees within a company. Salary of company increases at a better rate if growth of his company has been stable. Employees of banking sectors enjoys of having better pay scale than other private sector employees. Private sector employees get more salary than employee of banking sectors.

Productive employees help an organization for utilizing available resources within an organization. Better productivity always results in better customer service and interaction between customer and organizational employees can increase. Customer get positive experience from product and service of a company and demand of product will increase. When organizational employees are working effectively in an organization, authority notices their efforts and hard work. Time to time promotion is inevitable with employees having high productivity. Amount of wages represents value of efforts put by an employee in the organization.

Increasing wages help employees to enhance their performance in order to keep a stable position within company. This motivates the employees to put their best performance and enhance the quality of service provided by them. Thus the quality enhancement of the service fulfils the customers need and demand and satisfies them. This satisfaction of the customers develops a good PR of United Overseas Bank, Singapore and develops a strong customer base. Employees get opportunity to enhance their employability skills and knowledge by gaining experience in a company. McGregor’s theory of X and Y, Herzberg’s two factor theory along with Vroom expectancy theory was included in order to provide support on this research project. Theory of X and Y discusses issue faced by managers to increase productivity, steps should be taken by authority for enhancing employee performance and importance of increasing employee productivity within an organization By getting conclusive concept from three theories discussed above, it is clear that fair employee wages help to reduce employee turnover because employees stay loyal to the organization. Workplace environment get stable and employee observe their opportunity to have future growth within the company. Quality of work life can be improved employees can be able to interact with customers with strategic approach which will result in improved customer service. Therefore, overall productivity of employees can be increased if employees are given fair wages for their efforts and hard work.

6.2 Recommendation

SMART Recommendation 1

Specific

To focus on delivering a good quality service to the customers by building an efficient customer help desk

Measurable Process

Utilization organizational resources can be observed by measuring employee productivity increase by 5% and customer satisfaction

Attainable Process

Employees should be trained specifically for handling customers in such a way that their need and demand gets fulfilled

Realistic

This process is very realistic as customer satisfaction can develop a strong customer base which can be beneficial for the company.

Time

Training of employees should 1 to 2 months.

Table 6.1: Smart recommendation 1

SMART Recommendation 2

Specific

To pay attention on delegation of work by giving same opportunity for growth to every employee

Measurable Process

Delegation can be measured by observing daily basis pressure on every employee within an organization

Attainable Process

Main process for delegation of work is to give same allocation of job pressure on every employee. However, this method is difficult to achieve. Therefore, employees should be given an easy job on a day if he was given difficult tasks on previous day.

Realistic

It is very realistic as it depends on pressure handling capability of employees and job delegation power of hierarchy members.

Time

Within 1 month of time, authority should get success using discussed process for work delegation.

Table 6.2: Smart recommendation 2

SMART Recommendation 3

Specific

To pay attention on demand of employees on a regular basis

Measurable Process

The measurements can be done by observing performance level and their efficiency on regular basis

Attainable Process

This can be attained through providing close observation and communicating with them on a regular basis as well as conducting meeting

Realistic

It is quite realistic as it is dependent upon productivity of employees and growth and progress of the organization

Time

3 months

Table 6.3: Smart recommendation 3

 

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Appendices

Appendix 1: Survey questionnaire

Sample Size

45

Sample

Customers of the United Overseas bank of Singapore.

Variables

Dependent

Independent

Operational independent variables

Employee productivity

Wage structure

Employee performance

Work experience

Educational qualification

Block 1: Demographic Block

  1. Gender

  1. Male

  2. Female

  1. Age group

  1. 25– 35

  2. 36 – 45

  3. Above 45

  1. How long have you been the customer of United Overseas Bank

  1. Less than six months

  2. Six months to one year

  3. One to three year

  4. Three to five year

  5. Five to ten years

  6. More than 10 years

Block 2: measuring the service quality

(Please rate your opinion against the following statements as per the following scale

1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, 5 = strongly agree)

Variable

Dimension

Statements

1

2

3

4

5

Customer satisfaction

Fulfilment of needs and demands

  1. the customers of the Overseas bank, Singapore are satisfied

  1. all demands and needs of the customers are fulfilled by the bank employees

  1. employees pay proper attention to the customers need and problem

Quality of service

  1. The quality of service provided by the employees of overseas bank, Singapore is good.

  1. the behavioural approach of the employees to the customers is good in Overseas bank, Singapore

  1. the quality of the service provided by the employees influence company reputation

  1. the quality of the service provided by the overseas bank, Singapore employees depends on their designation

  1. the provided service quality and customer satisfaction has an influence of the productivity rate of the organisation

 

Appendix 2: Survey response

Q.1 Do you think that the customers of the Overseas bank, Singapore are satisfied?

option Number of Respondent Percentage

Strongly agree

15

33.33333333

Agree

17

37.77777778

Neutral

3

6.666666667

Disagree

5

11.11111111

Strongly Disagree

5

11.11111111

Total

45

100

Q.2 Do you think that the demands and needs of the customers are fulfilled by the employees?

option Number of Respondent Percentage

Strongly agree

13

28.88889

Agree

18

40

Neutral

8

17.77778

Disagree

2

4.444444

Strongly Disagree

4

8.888889

Total

45

100

Q.3 How far do you agree that employees pay proper attention to the customers need and problem?

option Number of Respondent Percentage

Strongly agree

15

33.33333333

Agree

15

33.33333333

Neutral

0

0

Disagree

10

22.22222222

Strongly Disagree

5

11.11111111

Total

45

100

Q.4 How far do you believe that the quality of service provided by the employees of Overseas bank, Singapore is good?

option Number of Respondent Percentage

Strongly agree

20

44.4444444

Agree

6

13.3333333

Neutral

10

22.2222222

Disagree

5

11.1111111

Strongly Disagree

4

8.88888889

Total

45

100

Q.5 Do you agree that the behavioural approach of the employees to the customers is good in Overseas bank, Singapore?

option Number of Respondent Percentage

Strongly agree

5

11.1111111

Agree

8

17.7777778

Neutral

2

4.44444444

Disagree

18

40

Strongly Disagree

12

26.6666667

Total

45

100

Q.6 How far do you think that the quality of the service provided by the employees influence company reputation?

option Number of Respondent Percentage

Strongly agree

18

40

Agree

20

44.4444444

Neutral

0

0

Disagree

2

4.44444444

Strongly Disagree

5

11.1111111

Total

45

100

Q.7 How far do you agree that the quality of the service provided by the employees influence company reputation?

option Number of Respondent Percentage

Strongly agree

10

22.2222222

Agree

5

11.1111111

Neutral

5

11.1111111

Disagree

10

22.2222222

Strongly Disagree

15

33.3333333

Total

45

100

Q.8 How far do you believe that the provided service quality and customer satisfaction has an influence of the productivity rate of the organisation?

option Number of Respondent Percentage

Strongly agree

12

26.6666667

Agree

13

28.8888889

Neutral

0

0

Disagree

10

22.2222222

Strongly Disagree

10

22.2222222

Total

45

100

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