Impact of HRD practices in creating employee satisfaction and improving customer service in Banks

In the new millennium, financial resources, technology and human resources are the three driving forces for the business. Any organization which can marshal and master these three resources be the leader in the corporate sector. But out of the above three resources, if the finance is easily available in the market, the technology is purchasable but the human resource is the core strength of the organization which cannot be replicated. Banks being service industry primarily dependent upon the human factor. Employee in a service organization like Banks are the face of the organization as they come into contact with customers and represent both the Bank and its products and the customer satisfaction is an overall assessment of the service experience. A satisfied employee portrays a positive picture before the customer leading to positive customer experience and vice versa. The customers of a service organization can be categorized into two groups namely, internal customers (employees) and external customers and a satisfied employee (internal customer) make satisfied customers (external customer) and satisfied customers can in turn reinforce employees’ sense of satisfaction in their jobs and feels them motivated. Employees are both the service and the brand of the Bank and works like a mirror of the Bank.

After Nationalization of Banks in India, Banks have gone for massive expansion of branches resulting into indiscipline and apathy towards customer service. The working culture of these Banks was poor and the customers’ services were just like hijacked. After liberalization of economy in India, under the pressure of competition, the Bank adopted several strategies including adoption of latest HRD practices and reformed their approach from bureaucratic to collaborative to prepare their employees to tune up with the changing requirement of competitive market. In the recent years, the perception of the public towards PSU Bank employee has improved. This research paper is an attempt to create a link between HRD practices and employee satisfaction and resultantly improving customer satisfaction level.