ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 7 (7), pp. 001-004, July, 2013. © International Scholars Journals
Full Length Research Paper
Employee empowerment and customer satisfaction: Empirical evidence from the banking sector of Pakistan
Hummayoun Naeem* and Muhammad Iqbal Saif
Institute of Management and Computer Sciences, Foundation University, New Lalazar, Rawalpindi Cantt, Pakistan.
Accepted 15 April, 2013
Abstract
Employee empowerment is a key feature of the modern management style. Empowered employees are expected to perform more effectively as compared to those working in traditional or authoritarian organizational cultures. Keeping in view the significance of the issue, a comparative study was planned to examine the impact of employee empowerment on customer satisfaction. A multistage cluster sample of 644 bank officers was drawn from two banks operating in Pakistan: the first one was a foreign bank (Standard Chartered Ltd.), where employees were empowered, BWEE (Bank with Empowered Employees). The second one was a local public sector bank (The Bank of Punjab) with a traditional management style, where employees were not empowered, BWNEE (Bank with no Empowered Employees). Data collection tools for both variables that is employee empowerment and customer satisfaction were adopted from the body of knowledge and used for data collection. Two independent sets of data were analyzed with the application of regression coefficient. Empirical analysis indicated that there was no relationship between employee empowerment and customer satisfaction in the Pakistani commercial banking sector.
Key words: Employee empowerment, customer satisfaction, Pakistani banking sector.