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Role of Employee Relationship Management (ERM) for
gaining Competitive Advantage in Indian Banking Sector:
A Comparative Study between SBI and ICICI Bank
1Girish Prasad Das, Research Scholar, Dept. of Business Administration, Berhampur University,
Bhanja Bihar, Berhampur, Odisha. E-mail: [email protected]
2Dr. N.R. Misra, Reader, Dept. of Business Administration, Berhampur University, Bhanja Bihar,
Berhampur, Odisha.
Corresponding author- 3Narayana Maharana, Research Scholar, Dept. of Business Administration, Berhampur
University, Bhanja Bihar, Berhampur. Email: [email protected], Phone: 9493482084.
Abstract:
Increased competition and globalisation in the banking sector necessitated the
commercial banks to develop strategies in order to improve performance. This study sought
to investigate the relationship between employee relations strategies and the customer choice
of the particular bank based on the employees of the bank. It is intended to focus on the
customer retention aspect of competitive advantage across three major banks in India in two
different sectors like the public, and private. The study incorporated SBI in the Public sector
bank and ICICI in the private sector Bank category. A questionnaire is prepared to find out
the Employee relationship management practices in the bank and its impact on the
customers. Though the impact of ERM is not experienced prominently by a layman or a
customer, with a different questionnaire it is attempted to find out the customer’s preference
among the two different banks taken in this study and is compared with the scoring of ERM in
the respective banks for gaining competitive advantage. As different studies claimed a
positive relationship between ERM practices, Employee satisfaction, Employee retention and
Employee Performance that in turn results in CRM and customer retention. T-test is used to
compare the two banks for their ERM strategies. The finding of the study reveals that there is
a significant difference exist between the ERM Strategies adopted by the two banks. Besides,
it is also been found that the ERM practices reflected significantly in gaining competitive
advantage.
Keywords: Competitive Advantage, Employee Relationship Management, Bank, Employee
Retention.
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1. Introduction
For most companies, employee relationship management highly essential for
attracting and retaining employees. Its primary goals are to empower managers to establish
and fruitful productive relationships with employees and to measure and quantify the results
of those relationships in order to ensure whether the organisational objectives are being met.
Employees are the valuable assets of an organization. They are most important
audiences with the potential to be its most effective envoys. It is essential that the employees
perform together to contribute equally towards the realization of a common organisational
goal. Employees show a certain relationship with their colleagues and co-workers at the
workplace. The relationship which the employees have between co-employees, supervisors,
managers and higher management should be a healthy relationship to best performances.
Employees are the focal point of an organization in the journey towards success. If the
employees work together and maintain a good relationship with management then the
organization can achieve its objectives much faster. Management of the employment
relationship is both vital and valuable for the organization in the attainment of the
competitive advantage. It is necessary to have a strong relationship among employees as well
as with the management since it leads to healthier organizational productivity and
performance.
Employee relationship management (ERM) refers to the development of the
relationship between the organizational management and the employees. There are several
issues in ERM which can affect employee satisfaction as well as influences the productivity
and overall corporate culture. It also refers to the relation between the different employees of
an organization. The relationship can be between employee and the management as well as
between employees at the same organisational hierarchy. It is nothing but a technique which
binds the employees and the management together on a common ground and leads them
towards the organizational goal. In a layman’s language, ERM deals with managing
interaction between employees and managed efficiently so that the jobs can be accomplished
smoothly. The human resource department basically plays a vital role in this process, both in
terms of training and coaching the workers and employees as well as management personnel
on how to effectively and efficiently establish and cherish employee relationships.
Relationship implies feelings that can be positive/friendly or negative/unfriendly. A
relationship always exists between the employees who work together. There is no neutral
point. Indifference is not neutral. Relationship influences employee behaviours at work.
Expectations, perceptions, intentions, distributions of assignments, readiness to confirm or to
rebel, and enthusiasm etc., are the outcomes of the employee relationships. Attitude and
motivation influences, and is influenced by the nature of the relationship.
2. Review of Literature
Employee relation refers to the relationship between the employees and management
in regard to the establishment of conditions of employment. In the recent past, ‘industrial
relations’ is the term used to describe employee relationship. Nevertheless, this has been
replaced by a broader concept called ‘employee relations’. Even though the two areas are
more or less similar, industrial relations generally refers to the resolution of a conflict
between the management and employees, whereas employee relations integrates all the issues
relating to the employee-management relationship in the workplace which also includes
recruitment, training and development, equal opportunity and framing organizational
structure. It creates a work environment which satisfies the needs of both the individual
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employees and the management by improving employee morale and building organizational
culture.
From the employee’s perspective, an employee is an asset rather than a cost. An
effective employee relation involves producing and nurturing a self-motivated and productive
workforce. Employees should be motivated from within, since the management help to
nurture the type of environment where employees flourish, enabling the organization to
achieve competitive advantage.
The organization through effective ERM practices are exploring new ways to improve
competitiveness and profitability. The focal point of this exercise lies in the effectiveness and
efficiency of its employees. The organization trying to improve performance uses its
employee relations processes to inspire an effective team of employees to add value to all
areas of its organizational performance, and emphasis on using specific strategies to retain,
reward and motivate efficient and skilled employees. There are four different strategies
practised by the organisations to achieve effective ERM, these are the employee relation
strategy, employee voice, management capability and internal communication. A successful
employee relation begins with the organization’s leadership, but lives and breathes
throughout the fabric of the organization. Management capability ensures that employees
should be motivated on a day-to-day basis by their immediate line manager. Frontline
managers need to be fortified to manage employees equitably, effectively, and consistently in
line with the organization’s expectations and requirements.
Human resources are a prime organizational asset if properly used and managed. The
application of appropriate strategies for the development of human resources can lead to the
optimization of corporate performance both in the short and long term. Tyson (1995) as
quoted in Torrington et al. (2005) stressed human resource management strategy as the
intentions of the corporation both explicit and covert, towards managing the employees,
reflected through philosophies, policies and practices. Effective human capital strategy and
practices are directly related to greater levels of financial and market success. Strategic
human resource management has three theoretical approaches (Torrington et al, 2005;
Armstrong, 2009). “The first is founded on the concept that there is one best way of
managing the human resource in order to improve business performance. The second is based
on the need to align employment policies and practices with the requirements of the business
strategy in order that the later will be achieved and the business will be successful. The third
is derived from the resource-based view of the firm and the perceived value of the human
capital”. This approach is grounded in the nature of the reward–effort exchange and, more
precisely, the degree to which managers perceive their human resources as an asset as
contrasting to a variable cost. Again, the literature on the HRM-performance relationship
raised by Boselie et al. (2005), initiate that the theoretical frameworks which lead this field
are the resource-based view (i.e., “HRM influences performance according to the human and
social capital held by the organization”) (Barney, 1991), the AMO theory (i.e., “HRM
influences performance in relation to employees’ Ability, Motivation and Opportunity to
participate”) (Appelbaum, Bailey et al., 2000; Katou, 2008) and the “contingent framework”
(i.e., HRM influences performance in relation to contingent factors such as business
strategies).
Basically, people try to maximize their benefits and minimize their costs while
exchanging resources with others (Molm, 2001). People involved in an interaction with the
expectation of reciprocity (Gouldner, 1960). These benefits include things such as material or
financial gains, social status, and emotional comforts. Costs generally comprise of sacrifices
of time, money, or lost opportunities.
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Social exchange theory is used as a tool for predicting the effects of management
practice on employee attitudes. Stafford (2008), posited that social exchanges involve a
connection with another person, trust; they are flexible, and rarely involve open bargaining.
Positive social exchanges causes mutual benefits to both the organization and the workforce.
Flynn (2005) said employees with relational identity orientation choose reciprocal
exchange, i.e. these employees may reciprocate an organization when they are in an
interdependent task setting. Organizations assume high-commitment to HR practices making
employees perceive organizational support and feel that they are imperative in the
interdependent organization. As per the social identity theory, employees who feel they are
valued by their organization perceive high status in the organization (Fuller et al., 2003). On
the other hand, Employees who experience mutual reciprocity of resources, information,
respect and power with management perceive higher autonomy therefore, they would be
more satisfied with the resources, information and support offered by the supervisor and they
would be committed to the organization and perform well.
Various studies have defined performance management in different ways, such as,
Armstrong (2006) defines performance management as a “systematic process for improving
organizational performance by developing the performance of individuals and teams”.
According to Bohlander and Snell (2007) “organizational performance comprises the actual
output or results of an organization measured against its intended outputs (organizational
goals and objectives)”. It is a process which contributes to the effective management of
individuals and teams in order to reach high levels of organizational performance. It creates
an understanding of what is to be achieved and an approach to developing people which
ensures the goals to be achieved.
To handle the growing uncertainty and competitiveness what is necessary is
performing employees to create a performing organization (Pattanayak, 2008). Efforts have
been made by different researchers to establish the causal relationship between human
resource management and performance (Cook, 2000). Managers should build a targeted
employee performance training plan that will establish the unique development needs of team
members and make them accountable for their performance. Performance management and
governance is, therefore, an important feature of modern organizational management
(Armstrong, 2006). It aids an organization to constantly monitor and improve its performance
in order to attain its strategic goals (Dessler, 2005). It is also observed that a company
emphasizes performance when a considerable portion of its employees pay, is tied to
individual or group contributions and the amount received can vary meaningfully from one
person or group to another (Gomez-Meija et al, 2008). There is a synergetic relationship
between human resources strategy and performance in the manufacturing sector (Cook, 2000;
Barney, 2000; Paterson et al, 2006). However, we may not categorically generalize this to the
banking sector due to the fragility of banking. HRM strategies can improve productivity by
increasing employee skills and abilities; through promoting positive attitudes and motivation,
and by providing employees with responsibilities in order to use of their skills and abilities to
the fullest extent possible. The purpose of human resource strategy is to develop ways of
managing people to utilise them in the achievement of organizational goals.
Mahoney and Watson (1993) posited that employee involvement has a favourable
impact on the performance of any organisation. The word employee relation has been used
synonymously with industrial relations and employment relations. According to Lewis et al.,
(2003) “Industrial Relations is associated with the declining “Smokestack" industries and
blue-collar workers and the accompanying emphasis upon Collective Bargaining between
employers and Trade Unions.” Employee relations offers a wider employment opus giving
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equal significance to non-union employment and white collar jobs. It is concerned with the
socio-economic relationship that forms a contract between the parties to perform in return for
employment benefits like remuneration (Perkins & Shortland, 2006).
The employee relationship management is a social, economic and political
relationship in which employees provide physical and mental labour in exchange for rewards
in the form of remuneration by employers (Lewis, et al., 2003). Over the last three decades,
increased global competition made the organizations emphasise labour efficiency and cost
control (Perkins & Shortland, 2006). This necessitated effective employee relationship
strategies that allow the employees to put their best on the achievement of organizational
goals.
Lewis et al, 2003) pointed out that the employee relations exhibit the presence of a
psychological bond that is different from any other relationships. There exists a non-
formalized kind of psychological contract which is based on what each party expects from the
other and is different from the normal written and legal expectations of the parties from each
other. Perkins and Shortland (2006) argue that the socio-political relations of employment are
not inert therefore it is essential to consider the impending of the bipartite and/or tripartite
employment systems to determine the employment relations outcomes.
Pearce and Robinson (2009) argue that firms keenly look for good employee
relationship even though they are bound by union contracts. The primary duty of the strategic
mangers is the anticipation of employee needs and expectations. Organizations should
endeavour to content their employees with good pay, good supervision and good stimulating
work. Customer satisfaction is associated with employee satisfaction. It is believed that
productivity is linked to employee loyalty and employee welfare.
Harzing and Ruysseveldt (2004) emphasised on efficient labour management
relationships because it’s a key to make the firm to improve and innovate. According to
Lewis at al. (2003) involvement of employees directly in the decision-making process makes
them go beyond their immediate work tasks. Moreover, employee involvement is based on
the fact that involvement in goal setting has is related to the acceptance and subsequent
commitment of the employees to the established goals, leading to increased performance and
development. (Harzing & Ruysseveldt, 2004).
Lewis et al. (2003) study a managerial policy where employers and employees share
goals and the means to realize them. They found that employee’s commitment resulted in
both better economic performance and superior human development. They suggested that
Managers should give employees a responsible autonomy. Giving employees an opportunity
to have control over their own work conditions in such a manner that benefits the
organization as a whole. Managers give employees status, authority and responsibility. This
is based on McGregor theory Y which purposes that employees are responsible and self-
motivated people who seek responsibility and are resourceful. This helps to win employees
trustworthiness towards management and tries to get along employees to the organizational
goals. Responsible autonomy strategy is highly necessary to achieve greater productivity.
They also emphasized communication in the organisation which withholds the employee and
employer relationship directs the organisation and the employees in the path of organisational
vision and goal. Communication of organisational vision and goal increases employee morale
and accountability. In addition to this Ivancevich et al (1997) says that the higher level
management plays an important role in communicating and sharing the strategy with the
employees and other stakeholders. Effective communication ensures that people have the
right information they need and is the base for any relationship to prosper. Honesty and open-
mindedness with employees are especially imperative while dealing with serious concerns
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outside of the office. Harzing and Ruysseveldt (2004) also stressed the role of communication
of tasks to be performed should be done with extensive employee involvement. As a leader
one has to lower any stress they might be feeling by communicating openly. Effective
communication is undeniably essential to the successful integration of employee by ensuring
employee engagement. Performance expectations, if not properly communicated, are far
more difficult to re-work after the fact. Management’s openness and acceptance of the
employees’ feedback, ideas, inputs and suggestions are the foundation of good
communications and resilient employee relationships. “Everybody wins when they are all
part of a supportive team” goas with the slogan “Saabka Saath… Saabka Vikaas…” by our
honourable Prime Minister Narendra Modi.
3. Objectives
Following are the main objectives of the study
1. To understand the role of ERM strategy in the banking industry.
2. To study how ERM strategy is helpful in gaining a competitive advantage in the
banking sector.
3. To find out how ERM strategies differ from bank to bank.
4. To explore the role of demographic characteristics of employees on the employee
relationship management in banks
4. Hypothesis
Following are the null hypothesis of the study
H01: There is no significant difference between the ERM strategies of the two type of banks
taken in the study.
H02: There is no significant difference between the competitive advantages of the two banks.
H03: There is no significant impact of the ERM Practices on the Competitive Advantage of
the Banks.
5. Methodology
The study is empirical in nature. The rationale behind choosing SBI and ICICI bank is
based on the Market Capitalization. The average market capitalization of SBI for last one
year is 296.30 whereas ICICI bank has 278.38 with close proximity (ref. Table-1). Here both
the bank are of equally popular but belong to different categories i.e. one is a public sector
bank and the other one is a private sector bank. Hence, the comparison between these two
banks seems justified in investigating the Employee Relationship management practices.
There are two parts in this study one based on the employees of the bank and their view about
the ERM strategies adopted by the bank and the other part based on the customers view about
opting for the bank service based on the ERM practices of the particular bank. A closed-
ended questionnaire is prepared for collecting data from the employees of the bank and
another closed-ended questionnaire is prepared in Google form to collect data from those of
customers. Clustered Random sampling technique is used to select samples for the study. A
total of 234 employees of both the banks were interviewed and the data is analysed using z-
test, and ANOVA. On the other hand, a total of 558 number of customer responses were
contacted regarding their view about the bank's competitive advantage based on customer
service, product leadership and price or cost advantage by asking different questions. The
data so obtained is analysed using SPSS software.
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6. Data Analysis and Interpretation
Table-1: Market Capitalization of private and public sector banks as on 25-11-2017
Company
Name
52 week
High
52 week
Low Average
Company
Name
52
week
High
52
week
Low
Average
HDFC
Bank
1,876.95 1,193.45 1,535.20 SBI 351.5 241.1 296.30
ICICI
Bank
332.3 224.45 278.38 Bank of
Baroda
206.6 133.6 170.10
Kotak
Mahindra
1,114.35 710.9 912.63 PNB 231.6 114.6 173.10
Axis Bank 564.6 447.8 506.20 Bank of
India
216.7 102.6 159.65
IndusInd
Bank
1,818.00 1,066.25 1,442.13 Canara
Bank
463.4 250.17 356.79
Yes Bank 1,884.85 296 1,090.43 Indian Bank 428 196.2 312.10
Federal
Bank
127.75 61.85 94.80 IDBI Bank 86.5 50.25 68.38
RBL Bank 600 325.65 462.83 Central
Bank
125 70.6 97.80
IDFC
Bank
71.95 52.7 62.33 Union Bank 205 123.8 164.40
City Union
Bank
182.62 115.76 149.19 Syndicate
Bank
95.35 61.2 78.28
Karur
Vysya
150.19 75.61 112.90 Vijaya Bank 97.4 42.9 70.15
DCB Bank 213 102.5 157.75 IOB 32.25 21.5 26.88
South Ind
Bank
33.3 18.1 25.70 Allahabad
Bank
92.5 59.4 75.95
Karnataka
Bank
181.15 101 141.08 UCO Bank 44.8 28.5 36.65
JK Bank 95.65 54.6 75.13 Andhra
Bank
76.1 47.4 61.75
Lakshmi
Vilas
209.8 133.4 171.60 Corporation
Bk
64.7 38.05 51.38
Dhanlaxmi
Bank
44.7 22 33.35 Oriental
Bank
190.8 105.55 148.18
R ETF
Gold BeES
2,741.95 2,500.05 2,621.00 Bank of
Maharashtra
40.7 24.5 32.60
StanChart
IDR
71.9 51.9 61.90 Dena Bank 50 24.3 37.15
Source: Moneycontrol.com
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7. Findings
Table-2: Demographics of the bank employees
Demographics Category No of Respondents Percentage
Gender Male 130 55.60
Female 104 44.40
Total 234 100.00
Age group up to 30 71 30.30
31-40 63 26.90
41-50 52 22.20
51-60 48 20.50
Total 234 100.00
Designation High level 55 23.50
Middle level 90 38.50
Lower level 89 38.00
Total 234 100.00
Bank Name ICICI 119 50.90
SBI 115 49.10
Total 234 100.00
The above table depicts the demographics of the bank employees. It is evident that
there are a total of 56% male employees compared to 44% female employees out of 234
numbers of total employees contacted. As per the age group categorisation, there are 43%
employees are of the age group above 40 years whereas, around 30% employees are below 30
years group or the youngsters. 23% of employees belong to the high-level category in the
employee hierarchy, 39% belong to middle and 38% belongs to the lower level category.
There are a total of 51% ICICI employees and 49% of SBI employees are taken for the study.
Table-3: Demographics of the Bank Customers
Demographics Category No of Respondents Percentage
Gender Male 306 54.80
Female 252 45.20
Total 558 100.00
Age group Below 20 154 27.60
21 to 40 208 37.30
41 and Above 196 35.10
Total 558 100.00
Account type SB 185 33.20
CA 196 35.10
Both SB &
CA 177 31.70
Total 558 100.00
Bank Name SBI 357 63.97
ICICI 201 36.02
Total 558 100.00
The above table portrays the demographic characteristics of the bank customers.
There are a total of 55% male customers compared to 45% of female customers out of 558
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number of total customers selected for the study. Around 35% of customers fall under the age
group of more than 41 years compared to 28% customers below 20 years of age. 37% of
customers belong 21 to 40 years. 33% of customers are found to have a savings bank account
compared to 35% having a current account only and 32% customers having both savings and
current account. It is also evident that a total of 64% are SBI customers and 36% are ICICI
bank customers.
Table-4: Group Statistics
Bank Name N Mean Std. Deviation
Std. Error
Mean
ERM ICICI 119 3.1664 .55732 .05109
SBI 115 3.0136 .39735 .03705
The above table represents the group statistics of the responses of the bank employees
towards employee relationship management practices collected through a set of eight
questions. It is observed that the mean of the responses of ERM of SBI is 3.013 whereas, the
mean of the responses of ICICI bank employees is 3.166. The mean difference is found to be
0.152 which is very small. This small difference between the employee relationship
management strategies is a representation of the competitive environment that exists in the
market.
The Table-4 represents the t-test to find out whether the existing mean difference
between the responses of the two employees regarding the employee relationship
management practices in the respective banks are significant or not. The two-tailed p-value
0.016 which is less than the standard 0.05 value (5% level of significance) allows us to reject
the null hypothesis saying there is no significant difference between ERM practices of the
two banks.
Table-5: Independent Samples Test
Levene's Test
for Equality of
Variances t-test for Equality of Means
F Sig. t df
Sig. (2-
tailed)
Mean
Differen
ce
Std.
Error
Differen
ce
95%
Confidence
Interval of the
Difference
Lower Upper
ER
M
Equal
variances
assumed
11.46
2 .001 2.408 232 .017 .15282 .06347 .02778 .27786
Equal
variances not
assumed
2.421 213.6
1 .016 .15282 .06311 .02842 .27722
The Table-5 represents the group statistics of the responses of the bank customers
towards competitive advantages of the banks collected through a set of three parameters like
customer services, Product leadership, and cost/price advantages related questions. It is
observed that the mean of the responses of customer services, product leadership and price
advantages of SBI is 2.89, 2.82, and 2.79 respectively, and of ICIC bank is 3.15, 3.06 and
3.13 respectively.
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The Table-6 represents the t-test to find out whether the existing mean difference
between the responses of the two bank customers regarding the competitive advantage in
customer service is found to be 0.007 (less than p-value at 1% confidence level, i.e. 0.01), for
product leadership is 0.020 (less than p-value at 5% confidence level, i.e. 0.05)and cost or
price advantage is 0.001 (less than p-value at 1% confidence level, i.e. 0.01) makes us reject
the null hypothesis saying there is no significant difference between the competitive
advantage parameters of the two banks.
Table-6: Group Statistics
Bank Name N Mean Std. Deviation
Std. Error
Mean
Customer Service ICICI 357 3.1595 1.09599 .05801
SBI 201 2.8993 1.09545 .07727
Product Leadership ICICI 357 3.0624 1.09644 .05803
SBI 201 2.8297 1.19064 .08398
Cost/Price Advantage ICICI 357 3.1301 1.10964 .05873
SBI 201 2.7913 1.17996 .08323
Table-7: Independent Samples Test
Levene's
Test for
Equality of
Variances
t-test for Equality of Means
F Sig. t df Sig. (2-
tailed)
Mean
Differen
ce
Std.
Error
Differen
ce
95%
Confidence
Interval of the
Difference
Lower Upper
Customer
Service
Equal
variances
assumed
.080 .778 2.693 556 .007* .26027 .09663 .07046 .45008
Equal
variances not
assumed
2.694 414.9
2 .007* .26027 .09662 .07035 .45019
Product
Leadershi
p
Equal
variances
assumed
4.91
4 .027 2.333 556 .020** .23273 .09976 .03679 .42867
Equal
variances not
assumed
2.280 387.0
1 .023** .23273 .10208 .03203 .43343
Cost/Price
Advantag
e
Equal
variances
assumed
2.71
0 .100 3.383 556 .001* .33874 .10013 .14207 .53541
Equal
variances not
assumed
3.325 393.8
8 .001* .33874 .10186 .13848 .53900
*p- value significant at 1% level, **p-value significant at 5% level.
The above interpretation of the ERM practices and the Competitive advantages gained
by the respective banks in the form of customer services, product leadership and cost
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advantages reflects the slightest difference in the ERM practices i.e. 0.152 gives a greater
difference (0.26 to 0.33) in the means of the Competitive advantages of the banks. Therefore
it can be inferred that there is a strong relationship between the ERM practices of the Banks
and their competitive advantages in the market. When we look up to the market capitalization
we can see the average market capitalisation of SBI is 296.30 which is higher compared to
the average market capitalisation of ICICI bank 278.38. even though the difference exists in
the market capitalisation ICIC bank being a private sector bank giving a strong competition to
the SBI which is one of the oldest public sector bank having more number of branches,
ATMs, customers etc. we can say that it is only due to employee relationship management
practices, and the competitive advantages gained over time made ICICI bank a leading and
strong competitor to the SBI.
8. Conclusion
Nowadays employee relations is practised in the majority of the organisations.
Organisations recently are understanding the role of employees in improving business
performance, customer satisfaction and Banking industries are of no exception. To gain a
competitive advantage and to ensure customer retention and loyalty an organisation has to
first focus on the employees and their satisfaction through employee relationship
management strategy. We have seen form this study that a small variance in the employee
relationship management reflected in a large variation in the competitive advantage. This
study also explained how the business performance is improved by attaining the desired level
of competitive advantage only thorough employee relationship management. It is
comparatively easy to manage employee relationship management compared to customer
relationship management. Therefore, organisations should focus more on improving and
enhancing their relationship with the employees and staff for attaining the organisational
objecting and goal.
9. Limitations and Scope
Following are the limitations of the study
The first limitation of the study is that the survey is conducted in Odisha and limited
to some randomly chosen branches of SBI and ICICI bank.
Secondly, only two banks are chosen from a private and public sector, foreign banks
are excluded.
The third limitation is we have taken banks according to the market capitalization and
the net profit, return on equity and sundry creditors are ignored.
The comparison is done on the basis of the employee's point of view and that of the
customer's preference for banking service with respect to the ERM practices. This can
also be done by taking the involvement of the customers in ERM as some recent
researches claim that ERM is a new concept in CRM and customer retention.
The same study can be extended to other banks to understand the different methods of
employee relationship management practices and its impact on other parameters like banks
performance, corporate governance, NPA Management etc. as the study incorporated only
around 120 bank employees from the banks located in the major cities of the state of Odisha
it has its own limitations which can be minimised if banks located in the major cities of other
states are also taken and compared among themselves.
Pramana Research Journal
Volume 8, Issue 10, 2018
ISSN NO: 2249-2976
https://pramanaresearch.org/97
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