ORGANIZATIONAL BEHAVIOUR OF BANKS EMPLOYEES AND

THEIR IMPACT ON CUSTOMERS

 ABSTRACT

In recent years, behavior of organizations in the banking marketing has become focus of attentions. It is
possible that customers become involved in a citizenship behavior that likes employees, direct organization
in a specific direction. Organizational behavior of banks employees is influenced by various factors.
Regarding the role and importance of customer in the survival of organization, managers necessarily
need to understand the importance of these factors among customers. After literature review and
development of conceptual model, a questionnaire was prepared and delivered to the customers of
businesses in banks and finally, data gathered from. 503 questionnaires were analyzed by structural
equations method (SME). Results of this research confirmed the presented conceptual model and showed
that physical environment of organization has positive and significant effect on behavior of organization of
bank employees. In addition, organizational behavior of banks employees has positive and significant
effect on satisfaction, loyalty and commitment of customers. On the other hand, satisfaction, loyalty and
commitment of customers has positive and significant influence on citizenship behaviors. Perceived justice
has no positive and significant effect on commitment and trust of customers and also trust of managers on
citizenship behavior
 Table of Contents

Executive Summary.........2

List of Contents ...3

Chapter1......................4

1.Introduction.......4

1.6 Problem Statement ..12

1.7 Research Questions .12

1.8 Objectives of the Study....13

Chapter 2.....14

2. Literature Review...,.14

Chapter 3.....21

3. Research Methodology....21

Chapter 4.......23

4. Analysis and Results ..23

Chapter 5.......26

5. Conclusion and recommendations .....26

References..28
 CHAPTER ONE

1.1 INTRODUCTION

Recent studies focus on the development of banks services and organization structure in the way to provide
high service quality and analyses customers needs. Several research studies in the last three decades
focused at the development of new services, restructuring organization dimensions, provision of new
instruments and services to meet customers needs ( storey, 1998).

Service companies are concerned with customers in order to improve and promote their competitive
advantages (Gong&Yi,2008). Because of the importance of customers' role, their behavior as such
importance that some researchers have worked on it. Studies in the production companies show that
customer rarely involve in the production process but in service organizations, customer are present for
services that are presented physically, therefore, both customers and employers are considered as human
resource of organization (Qasemi and Amiri,2010:11).Customers of do the work that employers may do
that with another method and even they may replace employees in service-based organizations.
Regarding these cases, it is suggested that service companies, at least in some cases, look in correct way to
their customers as their employees or members of organization. Based on this definition, it is
possible that service customer present behavior like employees. Therefore, traditional research can be
used in customer scope (Qasemi and Amiri, 2010). In competitive and rapidly changing world,
organizations are seeking new ways in order to increase effectiveness, efficiency and
profitability of organization. Irresponsible behavior of organizations is a way by which service
organizations can achieve competitive advantage without paying cost. Therefore, it is possible that
customers involve in a set of citizenship behavior that they guide organization in a certain direction, like
employees (Abbasiet.al,2011). Citizenship behavior defines as behaviors controlled by individual that this
class of behaviors are not considered explicitly and directly by formal reward systems but it improves
effectiveness of organization functions (GongandYi,2008). Behavior of employees in organizations that
deal with clients and customers due to their activities has high importance and as their positive and
constructive behavior can help organization in achieving the goals, negative and destructive behaviors and
is the activities of organization (Qasemi and Amiri, 2009). Regarding that most services of businesses are
done in the presence of other customers, even when customers interact with each other, their presence
influences the behavior and attitude of other customers to organization. Therefore, this research tries that
by studying different and effective factors on the behavior of customers, to achieve clear understanding
from factors and customers who take these behaviors. Therefore, regarding the importance of customers in
service organizations and quality of behaviors they show, and also lack of a comprehensive model in
enacting effective factors on irresponsible behavior of organizations, them a in problem of this research is"
identifying effective factor on irresponsible behavior of organizations.

Previous researches did not give adequate attention to improve the employees performance and work
environment conditions which form the basis of providing better services which are reflect at the
customer's satisfaction and loyalty and ruling factors (sanden, 2003).

Modern trends are interested in measuring employees reactions by shaping the revolution of the personnel
management as it began to look at employees satisfaction as a key component elements of motivation at
work and addressing the factors that influence job satisfaction as a key positive relationship of work
performance achievements (Zoghbi, 1998).

Hesket outlined that the growth of organizations is achieved through customer loyalty to organization,
satisfied of the value of the service received provided by the staff having good quality of life conditions
offered by the organizations (Heskett, 1997)

The aim of this research is to address how to improve the banking internal work environment which is
considered the basis of providing better services, achieve customer satisfaction and loyalty, analyze the
work environment and the effective factors such as giving attention to marketing, human resources and it is
impact on the performances of banks skillfully staff needed to gain customer satisfaction.

This research focuses also at the role of bank towards employees interests and how to improve their
working conditions physically, socially, administratively and psychologically. It is realized that the
managers must pay attention to employees psychological matters to impress workers as a key element of
banking success.

While some retail consumption may take place at a group level, them a majority of retail consumption episodes are

individual in nature. Most retail service consumption episodes are character is by an individual consumer

interacting with individual employees. Research indicates that an appreciation of how retail consumers evaluate the

service they receive can be highly useful in understanding customer loyalty (Gupta and Zeithaml, 2006). Indeed,

there is along standing tradition of research examining how individual retail customers evaluate the services they

consume. This research has identified a cluster of variables contributing to retail customers service evaluations
(Croninetal.,2000; Bradyet al.,2005;Maxhametal.,2008).Furthermore, certain variables consistently feature:

perceived service quality, perceived value, customer satisfaction, and behavioural intentions. .

However, while research examining retail customers service evaluation is evolving, investigation of the antecedent

role that retail employees play in the overall service evaluation process is less developed (Brady and Cronin, 2001;

Hennig-Thurau, 2004). Given that employees have an important role in the formulation of retail customers service

evaluations (Bitner, 1990), it is worthwhile to investigate the impact of employee inputs into this process. With this

in mind, recent work has highlighted two particular constructs of interest: customer orientation (CO) (Brownetal.,

2002) and service orientation (SO) (Homburgetal., 2002). These variables are hypothesized to play an important

role in determining the quality of retail customers service evaluations (Brady and Cronin, 2001). However, research

has yet to assess the combined role of both of these employee-specific factors. Furthermore, the mechanisms by

which these two individual employee orientations may influence service evaluations have only been tentatively

explored (see, e.g., Brady and Cronin, 2001).

This research seeks to rectify this gap, by developing and testing a comprehensive model of customers service

evaluation in a retail context, with additional investigation of the antecedent role that customer orientation and

service orientation play. As such, this study seeks to evaluate the relationships between the following variables:

customer orientation, service orientation, perceived service encounter quality, perceived service quality, perceived

value, customer satisfaction and customers behavioural intentions. To the authors best knowledge, this represents

the first study to simultaneously examine these constructs as an extended model of service evaluation.

In addition to the first objective, whilst the volume of retailing research is considerable, the majority of work has

concentrated on developed market economies (Bradyetal., 2005). Countries such as India, Russia and China (PRC)

provide unprecedented opportunities to investigate whether. Western models of retail service evaluation are

transferable to non-Western contexts.

Therefore, the studys second objective is to situate the research within the context of one such developing

economy, India, because it represents a significantly different cultural market to that offered by the West (c.f.,

Hofstede,1980).
In conclusion, the satisfaction of employees is reflected on customer satisfaction by providing good service
quality and loyalty. The customer satisfaction is crucially important to keep customers and win their
loyalty as long as possible

Service Quality is an influential determinant of perceived value (And reassen and Lindestad, 1998). According to

Hellieretal. (2003), perceived value is positively influenced by perceived quality. Several scholars have reported

that customers evaluation of perceived service value depends direct on customers evaluation of perceived service

quality (e.g. And reassen and Lindestad, 1998). Furthermore, Sweeneyetal.(1999) have claimed that perceived

quality is a pivotal determinant of perceived value.

Due to its influence on consumers behavioural intentions and customer retention (Bolton and Drew,

1991; Dholakia and Zhao, 2010), customer satisfaction has been the subject of much attention (e.g. Cronin et al.,

2000; Oliver, 1997). A direct positive relationship between perceived value and customer satisfaction has been

indicated by a variety of studies (Fornelletal., 1996). The presence of value in service evaluation models increases

researchers ability to explain variance in customers behavioural intentions (Croninetal., 1997). Customer

satisfaction is a consequence of perceived value (Hallowell, 1996). Fornelletal. (1996) highlight the importance of

the relationship between customer satisfaction and perceived value. In their study, three antecedents of customer

satisfaction are identified: perceived value, perceived quality and customer expectations. They go on to emphasis

that the first determinant of overall customer satisfaction is perceived quality [] the second determinant of

overall customer satisfaction is perceived value (Fornelletal., 1996, p.96). Valued is confirmation literature also

supports the relationship between customers perceived value and customer satisfaction (Hellieretal., 2003).

Perceived value can be considered pre or post purchase (Eggertand Ulaga, 2002) as a customer seeks additional

benefit in comparison to the cost when purchasing a product or service.

If the product is unaffordable and perceived quality is inferior, the customer may not want to buy that productthis

is a case of pre-purchase perceived value. Alternatively, customer satisfaction can be a post purchase phenomenon
(Eggert and Ulaga, 2002) because the perceived value of a product or service is evaluated following customers

experiences with the product or service.

There is little agreement over the relationship between perceived quality and customer satisfaction. Some service

evaluations models (e.g., Bitner, 1990) specify satisfaction as an antecedent to service quality based on the pre mise

that service quality is a general evaluation similar to an attitude, and is super ordinate to satisfaction. For example,

Bolton and Drew (1991) advocate that customer satisfaction is affected by disconfirmation, expectation and actual

performance and customer satisfaction, in turn, becomes an input to customers perceptions of service quality.

However, other service evaluation models (e.g., Anderson and Fornell, 1994) adopt the appraisal- response- coping

sequence (Lazarus, 1991) or the cognitive-emotive causal order (Oliver, 1997), which positions satisfaction as

superordinate to service quality. Parasuraman et al. (1988) argue service quality is a global judgment or attitude of

the superiority of the service, whereas customer satisfaction is transaction-specific. Fornelletal. (1996) found that

overall quality, price and expectations affected customer satisfaction and claimed that customer satisfaction

depended on the anticipated quality of future service. Tounify these diverging views, Croninand Taylor (1992)

tested both causal orderings of satisfaction and service quality (i.e., service quality satisfaction and satisfaction

service quality) and determined that service quality is an antecedent of customer satisfaction, reinforcing earlier

work (e.g. Andreassen and Lindestad, 1998).

According to a report published by the United Nations Educational, Scientific and Cultural Organization,
key factors influencing trends in organizational behavior include job satisfaction, perceptions of leadership,
motivation, individual and group personalities, power and politics. All of these factors help to form the
behavioral norms of current employees, which are informally transmitted to new employees as they
become integrated into departments and teams. A majority of these factors can be affected by quality
management initiatives.

The extent to which you place genuine emphasis on quality-control initiatives, aligning goals and tactics
with company strategy and implementing compelling incentives for employee engagement, can greatly
influence employees' motivation to achieve the goals of the initiatives. It is important to align all of the
elements of a quality management program in a way that positively impacts company culture and
organizational behavior. If employees view new tasks as unessential or too time-consuming, for example,
they may resist or even sabotage the program. If employees see a clear connection between quality
improvements and team incentives, on the other hand, they are more likely to be fully on board.

The theory of reasoned action (Ajzen and Fishbein, 1980) suggests that intentions are the direct outcome of

attitudes (and subjective norms). More recent work in attitude theory (e.g., Bagozzi, 1992) challenges this

perspective arguing that attitude theories trade specificity for parsimony (Bagozzi, 1992, p.201). Hence,

researchers have formulated more complex models of service valuation (e.g., Brady et al., 2005). We follow a

similar approach, with numerous antecedents to behavioural

An Employee that conforms with organization behavior and value is likely to strengthen the connection between the

customer and the firm. Reverse pattern of effects is to be expected when the employee act through his/ her own

behavior. In these cases, a consumer may think that the organization actually does not deliver the symbolic benefits

that s/he had expected for and may evaluate the organization in a negative way. In order words, under circumstance

such as the ones described, an employee will probably exert a strong impact on organization reputation and attitudes

( Coulter 2002 ) . According to the works of Hanley (2008 ) and Coulter ( 2002 ) , the effect of positive employees

behavior could be increasing speed of response to customer and ensure employees are friendly and respectful to

customer which enhance customer satisfaction toward the services provided

intentions. However, since satisfaction is an affective variable and quality and value are cognitive evaluations

(Oliver, 1997) only satisfaction is positioned directly antecedent to behavioural intentions, as per the theory or

reasoned action (Ajzen and Fishbein, 1980). Satisfaction linking directly to behavioural intentions is justified by

theoretical models that specify a cognition-affect causal ordering (e.g., Bagozzi, 1992). That is, satisfaction is

positioned as an affective-oriented mediator that follows from quality and value evaluations.

Every customer is expecting that each bank is taking into consideration the importance of physical

environment which is represented by decorations, aisles, waiting areas. Air conditioning, lightening, and
other facilities that are available for customer convenience. In modern days, especially in the services

industry, customers are looking for supplementary services , where the core service is intangible issue to

attract and convince customers it is necessary to concentrate on physical issues which can satisfy them.

As a result of their facts, physical environment of the bank is a matter of CRM through which customers

can have a positive image about the bank which is caring for these issues and finally affect their

satisfaction positively.

Enterprises product benefits of form, time, place and property that will satisfy the customers demands

through goods and service. Forming and marketing of the goods and services that satisfy the customer

demands is the basis of producing benefit. ( Altitas, 2000:). Whether the customer is satisfied or not

depends on whether the he compares what is offered to him with his own expectations. If what is offered

suits the expectations, the customer is satisfied. If what is offered is above the expectations, the customer

is highly satisfied and pleased. (Kother, 2004: 36) for example, if the real performance of a product or

service in a bank is below the expectations, the result is dissatisfaction, but if it equal or higher,

customers satisfaction is achieved. ( Kocoglu, Duygu ,2012;Gubuz, 2008: )

In recent years, in such fields as banking, where a strong competition, customer satisfaction has gained a

good deal of importance. It may be very easy to let another bank capture a displeased customer. To raise

the customer satisfaction to the highest level and retain customers, the banks are to attach importance to

customer relationship management(CRM).

The advantages provided to the banks by customer relationship management are as followings: (Duygu,

2012; Alagoz, 2003 ;)

Picking out the real customers in a bank in the long run and helping to make the relationships

effective,
 Making the way of bank management customer-based,

Bringing, with technology, in the foreground the human relationships based on gathering and using

information by institutionalizing the personal sale concepts,

Reshaping the selling and marketing campaigns of the bank,

A successful customer relationship management system, providing a permanent advantage

of competition,

Increasing the total productivity of the bank.

Whether the banks gain benefit from the customer relationship management and become successful

depends on whether they follow technologic development closely and make investments to this end.

Also, their ability to determine right strategies for the purposes that they want to attain in

customer relationship management are important factors that enhance the success chance of banks.

There are four important stages of following customer relationship management strategy in the banks.

The first step is the stage of planning, targeting. Its necessary to make a documented strategy stating

how customer relationships are wanted to be directed. The second step. design, allows preparing the

prime designs supporting the bank strategy. A lot of banks ignore this step, but it is important for

coordination and thus success. The third step is building. At this stage, projects for changing are

started. The fourth step is running and developing the programmes . When the first projects for start

to give fruits, it should not be thought that the work is over . it is necessary to place the change in the

enterprise, to develop the activity and make the strategy more certain.(Sendogdu, 2006). Accurately-

directed customer relationship management will be realized thanks to these steps.( Duygu, 2012)

1.2 RESEARCH PROBLEM

It is very important in our intensity changing competitive environment in the banking industry to be in

direct contact with the customers in order to build up good relationship so that satisfaction can be

attained. As a result of this knowing the main factors of organizational behavior of banks which can

achieve customer satisfaction is a critical issue for financial Institutions; especially with the intensive

competition between such institutions

1.3 RESEARCH QUESTION

According to these issues, the main problem of the present is formulated in the following questions:

(i). To what extent do Pakistani banks apply the concept of organizational behavior?

(ii). What is the role of organizational behavior for achieving customer satisfaction in the banking

industry in Pakistan?

(iii). How can we change behavior of organization for achieving the customer satisfaction in the banking

industry in Pakistan?

1.4 RESEARCH IMPORTANCE

The importance of the present study can be viewed from two main aspects:-

a) The academic aspect; as this study represents an attempt to add to the international libraries with an

important issue that can be beneficial for further studies i,e organizational behavior and customer

satisfaction. The importance of research lies in how to contribute to customer loyalty by the provision of

job quality and satisfaction of the employees, and its positive impact on customer loyalty to banks.
b) The practical aspect, as organizational behavior and customer satisfaction topic is considered to be

one of the base stone for success of many financial institutions in particular and other institution in

general. For financial institution it is very important to verify the main factors that affects relationship of

banks employees and their customers which can lead to customer satisfaction with the critical

competition in this industry.

1.5 RESEARCH OBJECTIVES

The main objectives of the present study can be summarized in the following:-

1) To determine the level of organizational behavior importance in achieving customer satisfaction in

banking industry in Pakistan.

2) To determine the main factors of customer and employees relationship applied in the banking industry

in Pakistan.

3) To provide valuable suggestions and recommendations for improvement of relationship and

organizational behavior of banks employees and customers in the banking industry in Pakistan?
 CHAPTER TWO

LITERATURE REVIEW

Jun Cia identifies the importance of the satisfaction of the employees as internal customers in the
organization and their significant influence at the quality of internal services. Workers within any service
provider organization have a major role in the effective and evaluate the quality of internal services.
Employees are considered customers within the organization, which in some researchers work is seen that
the internal customer's in the organization is the final judge of the quality of service provided. (Jun, 2010)
Irresponsible behavior of organizations: organizational citizenship behavior defined in 1988 by

Organizational behavior which is by individual will and does not acknowledged by formal reward
system of organization, explicitly or directly (Daunt, 2012: 58). In 1997, he presented another definition of
citizenship behavior i.e. behaviors that help to preserve and expand the social and mental space of
environment that will lead to better work performance. Initial OCB research emphasizes on inter-
organizational behavior. After that, it was considered in the service field and gradually,
organizational citizenship behavior developed toward service organizations (Harris,2011: 25). He
considered this behavior as meta- role behavior which is useful for organization but not required
formally for organization. Betancourt (1997) used another expression and introduced citizenship
behavior as voluntary performance of customers. He defined voluntary performance of employees
as "voluntary behaviors of customers that improve performance of service organizations."

Cho, et . al . (2013) investigate the impact of customer relationship management on customer satisfaction
and loyalty.The study was performed at a departmental store in Tehran, Iran. the study employed
quantitative approach. And base on 300 respondents. The main findings of the study shows that behavior of
the employees is significantly related and contributed to customer loyalty campared to other elements of
CRM i,e interaction management , relationship management and services quality.
Hisham Solieman, (2011), in his study customer relationship management and its relationship to marketing
performances assured that there is a positive relationship between CRM and marketing performance such
as customer satisfaction and customer loyalty . Three major variables of CRM was tested in this study i,e
focusing on the main customers, organization efficiency and customer knowledge management. The
study concluded that all elements of CRM has positive relationship with customer satisfaction and
customer loyalty.

Kocoglue (2012), in his study titled customer relationship management and customer loyalty in the
banking industry. The study has been conducted on a sample of 350 staff employed in all the branches in
Denizili of T.C. Ziraat Bank.The study concluded that all elements of CRM I,e customer database, learning
customer needs and complaints, and providing solutions peculiar to customers are positively correlated
with customer loyalty.

Khaligh et al. (2012) investigate the impact of CRM on customer loyalty and retention in the telecom
industry in Iran. The data are collected from 200 Iranian telecom services users. Finding shows that
commitment and vision of the management system is highly required for a successful CRM
implementation, the structure of the strategy should be based on flexibility and explicitly of the policies
especially pricing policies. These factors are very importance to increase customer loyalty and benefit of
the firm (Khaligh et al.2012)

According to the research Bhattachacharya(2011)CRM is implemented in an organization to reduce cost

and increase company performance, which means profitability result through customer satisfaction and
loyalty. Indeed in a successful CRM implementation, data are collected from internal and external sources
such as sales department, customer service, marketing, after sales services, and procurement, This is
crucial in obtaining a holistic view of each customer requirement in real times systems. This information
will able to aid employees to make fast accurate decision when dealing with the customers in different
areas and touch points. The finding of this study shows that the customer perception and treatment given to
each customer individual able to assist in solving many customers problems. Thus, customer satisfaction
and loyalty would be achieved through a successful CRM implementation. Therefore, organization
should discover different requirements of the customers and adjust their policies according to their
needs increase the firms competitiveness.

According to the conceptual framework proposed by Faed (2010), customer relationship management
amplifies the relationships of customers and competitors in a firm to increase the share of the organization
in marketplace by integration technology, procedures and people. The aim of CRM is to maintain the
customers and increase their satisfaction and loyalty and organization profit. Customer satisfaction and
pleasing are two main elements in successful CRM implementations for retaining customers loyalty to
firm.

Kim et.al., (2003) stress that each perspective of the CRM framework is evaluated by set of related
metrics. In this regards, a case study has been carried out by Kim et al.( 2003 ) to an online shopping
company in South Korea that sales 30,000 products in 12 categories. This company ranked as 18 online
shopping mall in South Korea. Data collected through expected interview, questionnaires and weblog
analysis. Finding illustrates that, the factor which is very important to increase customer satisfaction,
customer loyalty and benefits of the firm is to clean all vagueness and implicit problems that exist in the
top level of strategic managements. A single and explicit language would be provided for accurate
communication in an organization.

According to study on 1000 firms who are active in different area of industry such as : manufacturing,
communication, financial and others, Bohling et al. (2006) develop a number of criteria to implement
CRM successfully. These criteria are divided to three main groups:
1) Project focused.
2) Internally oriented metrics, employees adoption.
3) Externally oriented metrics, customer satisfaction and loyalty .
According to the findings, the most important externally oriented criteria are as follows
1) Verified customer influence in terms of loyalty and satisfaction
2) Measurable revenue development
3) Enhanced information and perception
4) Measurable cost drop
5) Enhance employee efficiency
6) Practice by employees
7) Compliance to particulars

Wang and Lo ( 2004 ) found that model is based on two perspective. First, measures the factors related to
customer behavior such as: repurchasing, cross and customer acquisition rate, and second, measures the
relationship quality, such as customer satisfaction and customer loyalty ( Wang and Lo, 2004 ) . data were
collected randomly from 400 selected customers of two security companies from China. The finding show
that emotional and functional behavior of customers has positive impact on customer satisfaction and
customer satisfaction has positive effect on customer behavior based on CRM elements. Finally, the result
of this study shows that customer behavior based on CRM have a positive customer and brand loyalty
(Wang and Lo, 2004) Zineldin, (2006) developed a triangle strategy between quality, CRM, and customer
loyalty which is leading to companys competitiveness. This research was designed to measure satisfaction
and loyalty of the customers based on two main conditions where the customer database information and
strategy of CRM should be well structured and the capacity of the system should be enough to produce
data accurate analysis. According to the findings of the research, any changes of the quality of the
services or productions in a firm over time could be used as an indicator to find the level of customer
loyalty a through a well-structured CRM strategy. If the indicators of interaction, infrastructure, and
atmosphere are linked to the product and process quality, it helps the researchers to find what changes are
required in CRM strategy to improve customer satisfaction and loyalty. Izquierdo et al.(2005) developed a
model in which, car repair and maintenance are tested as a case where long- term customer relationship is
frequentative. Path analysis is used to evaluate the association of customers, perception market loyalty and
market position .The hypotheses were evaluated using a path analysis, which examines the relationship
between marketing activities and economic performance.
This model is proposed based on performance of the market and economic. The measures of proposed
model are as follows (lzquierdo el.al. 2005):
1) The position of market
2) Customer loyalty
3) Customer insight
4) Economic and market performance
The findings suggest that CRM implementation include attraction activities which are service quality,
commercial practices and loyalty programs such as bonus, contact, and satisfaction and complain handling.
This result in appropriate perception of customers leading to increasing customer loyalty and therefore.
Economic performance of the firm would be increased.
Feinberg and Kadam(2002) argue that emphasizing to online business rather than traditional way of
business is necessary nowadays. So in this way, the usage of internet provides an opportunity for business
to use it as a tool for CRM. According to their research, there are 42 different e-CRM features used by the
retailers. The finding shows that there is significant relationship between CRM implementation on
websites of the retailers and customer satisfaction which leads to customer loyalty. However all attributes
of implemented CRM are not equal in terms of predicting the customer satisfactions and loyalty (Feinberg
and Kadam, 2002)

Groth (2005) defined irresponsible behavior of organizations as voluntary behaviors of

customers that are not recognized directly and explicitly by formal reward system of organization
but in fact, it helps higher quality services and effectiveness of service organizations (Groth,
2005: 58-62). Regarding theoretical literature, behavior of customers influences by various factors
which we refer to them in following: Reputation and irresponsible behavior of organization: reputation is
the key success factor of organizations. Useful results of good reputation provides higher level of
commitment and support of beneficiaries. Irresponsible behavior of organization can be defined as
general evaluation of individuals in the organization which reflects that how much individuals consider
organization good or bad (Coombs & Laufer, 2006: 12).Concept of organization reputation has been
major problem for researchers since 1950. Organization reputation compares understanding of
customers from previous actions and future perspectives of organization with other competitors (Money
and Alniacik, 2011: 12).

Reputation is a set of perception of beneficiaries toward organization that these beneficiaries can be
customers, suppliers, media and other societies (Alniacik et.al, 2011: 68). Reputation of organization can
be measured by several dimensions "understanding of customers from organization
environment, quality of products and services of organization and organization financial
performance (Money et.al, 2010: 8-9). Fomburn has defined 6 dimensions for irresponsible behavior
of organization including customer- orientation, performance and financial capacity, organization social
responsibility, quality of products and services, perspective and workplace conditions. Previous
research show that reputation of organization has positive effect on the financial performance of
organization. Many researchers state that customers of organizations with good reputation, are more
committed and their trust to organization is higher (Yung & Sung, 996; Fomburn: 2008: 43).

Ahmadi and Tarveh (201) in a study on the customers of businesses in Shiraz concluded that irresponsible
behavior of organization has positive effect on commitment and loyalty of customers (Ahmadi and Taverh,
2011: 10-13). Perception of customer from justice: customer perceive justice from processes for
presenting and receiving services. Opinions related to the justice are evolved along with
expansion of human society and its range is extended from religions and philosophy to empirical research
(Akhvan Kazemi, 2003). Organizational justice was conceptualized by Greenberg in 1990 as a
development theory for describing the role of justice in workplace.

Research showed that justice processes play an important role in the organization and behavior of
individuals can influence beliefs, feelings and attitudes of individuals (De Backer et.al, 2011: 9-11).
Customer perception of justice is a multi-facet construct that encompasses three dimensions distributive,
procedural and communicative justice. Regarding services, distributive justice originates from fairness
and equality theory of Adams (1965) by which people evaluate their position and then decide that whether
result is based on the justice or not. Distributive justice is justice and equality in outputs, results and
consequences. Three main principles of distributive justice are: fairness, equality, need.

Distributive justice refers to the satisfaction of customers relative to results obtained by services
which was evaluated fairly by customers. Procedural justice refers to neutrality and fairness
observed by policies and functions of organization (Gong & Yi, 2008: 55). Procedural justice
refers to the procedures of organization for resisting against problems caused by presenting
incorrect services including access to services, time, and speed of services, delay and flexibility for
conformity with needs of customers. In fact, procedural justice refers to the justice in the policies and
organization procedures (Lanza et.al, 2009: 14). People infer justice from the treatment in mutual personal
relations. This phenomenon was first presented by two Bias and Moag in 1986 as communicative
justice. This dimension of justice refers to the fair treatment between individuals during procedures.
Interactive justice related to the neutrality of treatment between people which is perceived during
implementation of procedures (Kazemi and Barid, 2010: 7). When customers believe that organization has
fair behavior with them, they will probably develop sustainable relations and commitment to organization.

Loyalty: loyalty defines as a construct which measures the probability of customers return and purchase.
Kastro and Armary (1999) argue that loyal customers not only increase the value of business but
they provide possibility to reduce their costs for attracting new customers (Sadraee, 2010; Mosakhani
2012). Different definitions of loyalty are presented that we briefly examine them. Olivier (1991)
defines loyalty as "strong commitment for repurchase of a product or service in the future such that that
product or brand purchased instead of effects and marketing endeavors of competitors (Nadi et.al, 2009;
Mosakhani 2012). Larson ad Solana (2004) believe that loyalty is developing commitment in the customer
for transaction with a certain organization or buying products and services". Asael (1992) defined loyalty
as a behavior about commercialization; therefore, this leads to continuous purchase of that brand
(Mosakhani et.al, 2012).

Kuei found out that there is also evidence confirms the existence link between increased satisfaction
among employees, improving the product quality and increase customer satisfaction. This is due to the
existence of a positive correlation between internal service quality, satisfaction of employees and retain
customers. (H.CH,1999)
Bellou and Adranikids mentioned that to increase the quality of services within the organization it must be
organized to improve the efficiency of its employees by training and rehabilitation, and to improve
their behaviour, and achieve the common cooperation among workers in the organization as a team without
internal conflict that may affect at the service provided. This therefore, can maintain a high level of internal
service and leads to a high level of services provided to customers. (AdroniKids, 2008)
The intense competition between banks confirmed the importance of customer satisfaction to pursue
perfect services and increase profit. This outcome depends on the quality of internal service and on the
behaviour of workers providing service to customers that leads to customer satisfaction. (AdroniKids,
2008)

Malhotra and Mukherj identify that the organizations provide service are looking to be effective and
distinctive. This depends on the degree of satisfaction of its users who are service providers as the main
objective of these organizations. (Mukherjee, 2004)

Summary of Literature Review

Review of literature indicates that research related to Organizational behavior of banks employees have
stated some factors as effective factors on citizenship behavior. Therefore, regarding lack of
comprehensive model in determining effective factor on citizenship behavior, this research tries to study
the indirect effect of reputation and Organizational behavior of banks employees and perceived justice
by customers and also direct effect of satisfaction, loyalty, commitment, trust and physical
environment on Organizational behavior of banks employees
 CHAPTER THREE

RESEARCH METHODOLOGY

This is applied survey. This is a causative research in terms of hypotheses. Business customers
are statistical population of this research. Due to unavailable population, it was considered
unlimited and available sampling was used for selecting statistical sample and Cochrane
formula was used to determine the size of sample: In order to estimate the standard deviation
in Cochrane formula, questionnaire was distributed and standard deviation of main variable i.e.
organizational behavior of banks employees was calculated and substituted in above formula.
Also in this formula, sampling error was 0.05, therefore, number of sample in this research was
423. Based on this, 700 questionnaire distributed among businesses and after eliminating
disturbed questionnaires, sample consisted of 503 customers was analyzed. Reliability of
questionnaire was studied by Cronbach alpha. If alpha coefficient is higher than %70, test
has acceptable reliability (Danaeefard, Mirzaee &Husseini, 2013). Reliability of
questionnaire was studied in terms of content validity and construct validity. For content
validity, questionnaire was given to experts and revisions were done based on their opinions. For
confirmatory factor analysis, structural equation modelling was used. In order to measure
construct validity, factor analysis and SPSS was used. Evaluation indicators in this test is
sampling adequacy statistics and Bartlet significance level.

RESEARCH HYPOTHESIS

Regarding conceptual model, research hypotheses are:

H1: I r r e s p o n s i b l e organizational behavior of banks employees has positive and

significant effect on the customer loyalty.

H2: I r r e s p o n s i b l e organizational behavior of banks employees has positive and

significant effect on the customer commitment.

H3: I r r e s p o n s i b l e organizational behavior of banks employees has positive and

significant effect on the customers' trust.
H4: I r r e s p o n s i b l e organizational behavior of banks employees has positive and
significant effect on customer satisfaction.

H5: I r r e s p o n s i b l e organizational behavior of banks employees has positive and

significant effect on justice among individuals.
 CHAPTER FOUR

RESULTS AND DATA ANALYSIS

4.1 RESULTS

Results of this test are presented in table (2).

Table 1: results of factor analysis for construct validity of research variables

Variable KMO Bartlet significance level

Loyalty 0/930 0/000
Commitment 0/687 0/000
Injustice 0/685 0/000
Trust 0/877 0/000
Satisfaction 0/816 0/000

For construct validity, Bartlet significance level should be less that %5 and for sampling adequacy, 0.50 is
acceptable. These indicators were measured for research variables and construct validity of variables were
confirmed

4.2 DATA ANALYSIS

503 questionnaires were evaluated in this research that %46.3 of respondents were female and %53.7 were
male. In terms of education, %27.6 of respondents have diploma, %20.5 have associate degree, and %
35.2 B.A and % 16.7 have M.A.

Testing research conceptual model

In this research, for testing and studying conceptual model presented by this researcher, SME and Amos
software was used. Structural equations modeling help researchers to test the theoretical model consisted
of different components. Fitness indicators condition for research conceptual model was presented in
table 4.
 Table 2: research conceptual model fitness indicator

Indicators' classification Name of indicator Initial Acceptable

Absolute fitness Chi-square cover level model
0/00 fitnessP>5
indicators Goodness of fit indicator 0/85 %
GFI>90%
Revised goodness of fit 0/756 AGFI>%90
Comparative fitness indicator
Normalized fitness indicator 0/80 NFI>90% As table
indicators Comparative fitness indicator 0/769 CFI>90% shows,
Relative fitness indicator 0/83 RFI>90%
Incremental fitness indicator 0/76 IFI>90% fitness
Economic fitness Normalized economic fitness 0/65 PNFI>50 %
indicators indicator
Estimation error mean square 0/05 RMSEA<10 %
root
Normalized chi-square with 2/41 1-3
degree of
indicators for research model has not suitable condition. Goodness of fit index is 0.85, AGFI is 0.756, NFI
is 0.80, and CFI is 0.769. RFI is 0.83 and IFI is 0.76. since value of indicators should be higher than %90,
we are confident about conforming experimental Table 3: model fitness indicators data with theoretical
model (Abareshi and Husseini, 2013). Because model was not confirmed, part of equations that are not
significant, were eliminated from model. After changes, research model was tested.

Indicators' classification Name of indicator Initial Acceptable

Absolute fitness Chi-square cover level model
0/00 fitnessP>5
indicators Goodness of fit indicator 0/93 %
GFI>90%
Revised goodness of fit 0/91 AGFI>%90
Comparative fitness indicator
Normalized fitness indicator 0/92 NFI>90%
indicators Comparative fitness indicator 0/96 CFI>90%
Relative fitness indicator 0/90 RFI>90%
Incremental fitness indicator 0/96 IFI>90%
Economic fitness Normalized economic fitness 0/75 PNFI>50 %
indicators indicator
Estimation error mean square 0/05 RMSEA<10 %
root
Normalized chi-square with 2/11 3-1
degree of

As table 5 shows, model fitness indicators show suitable condition. GFI is 0.93, AGFI is 0.91. CFI is 0.96,
RFI is 0.90, and IFI is 0.96. Mean square of error is 0.5 and chi-square is 2.1. Acceptable fitness
indicators shows confirmation of research in revised form. Significance of indicators is shown in
table 6.
 Table 4: significance of indicators

Conceptual model relations Path Critical Significan Result

factor ratio ce
Organizational < Loyalty 0/ 0/18 - Rejected
irresponsible 71
behavior
Organizational < Commitment 1/ 0/11 - Rejected
34
irresponsible
behavior
Organizational < Trust 1/ 0/91 - Rejected
03
irresponsible
behavior
Organizational < Satisfaction 1/ 0/99 - Rejected
15
irresponsible
behavior
Organizational < Justice 0/ 0/35 - Rejected
43
irresponsible
behavior

As table 4 shows, effect factor of i r r e s p o n s i b l e organizational behavior of banks employees on

loyalty of customers is 0.71; since its significance value (0.18) is lower than (1.96), first research
hypothesis was rejected. i r r e s p o n s i b l e organizational behavior of banks employees effect factor on
customer commitment is 1.34; since significance value (0.11) is lower than (1.96), second hypothesis
indicating positive and significant effect of i r r i r r e s p o n s i b l e e s p o n s i b l e organizational behavior
of banks employees on customer commitment rejected. Effect factor of Organizational behavior of
banks employees on customer satisfaction is 1.03; since its significance (0.91) is lower than (1.96),
third research hypothesis rejected. Effect factor of i r r e s p o n s i b l e organizational behavior of banks
employees on customer commitment is 1.15; since significance number (0.99) is less than (1.96), fourth
research hypothesis was rejected. Effect factor of i r r e s p o n s i b l e organizational behavior of banks
employees on customer commitment is 0.43; since significance number (0.35) is lower than (1.96),
fifth hypothesis was rejected.
 CHAPTER FIVE

CONCLUSION AND RECOMMENDATIONS

5.1 CONCLUSION

Findings of this research shows that reputation and i r r e s p o n s i b l e Organizational behavior of banks
employees has negative effect on commitment, satisfaction and loyalty of customers. In other words,
organizations that have high i r r e s p o n s i b l e Organizational behavior of banks employees, their
customers have low satisfaction, loyalty and commitment which is not consistent with findings of Walsh
and Batiosky (2011), Abbasi et.al (2011), Ahmadi and Tarveh (2011) and Abbassi et.al (2012).
i r r e s p o n s i b l e Organizational behavior of banks employees has negative effect on the satisfaction of
customers that this result is not consistent with Wing and Yakoval research (2010). Also perceived
justice has effect on customer commitment that this is consistent with Yi and Gung (2006) study. In
addition, customer trust has effect in emergence of responsible behavior of organizations which is
consistent with Baw et.al (2009). Customer commitment has positive and significant effect on responsible
behavior of organization that this finding is consistent with Bettencourt (1997) and Yi and Gung
(2006) but it is against findings of Walsh and Bartiski (2011). Customer satisfaction has positive and
significant effect on the responsible behavior of organizations. This finding is consistent with Bettencourt
(1997),Wing and Yakoval (2010) and Chung (2006). Other results of this research has positive and
significant effect on loyalty of customers which is consistent with findings of Bettencourt (1997), Walsh
and Batiosky (2011), Abbassi et.al (2011), Ahmadi and Tarveh (2011) and Abbassi et.al (2012). Another
result of this research is positive and significant effect of physical environment on irresponsible behavior
of organizations but no research yet studied it.

This study highlights the importance of customer satisfaction from bank services that may strengthen the
decision of customer to keep dealing with the bank and sustain purchases. Therefore it will create
customer loyalty to the services of the bank as well as customer satisfaction. It also represents a sense of
feedback of the services provided by the bank for further development and improvement.

Additionally, the banks administrations must clarify the means between performance, incentives and
rewards. It should also confirms to the employees that good performance will be recorded and followed
by submission of the expected rewards without delay. This policy has to be fair and consistent based on
the effort of the employee to achieve a sense of satisfaction and motivate him to achieve of higher needs.
RECOMMENDATIONS

Finally, some recommendations that may be useful to banks are suggested, such as: the banks must
improve behavior of employees to achieve the customers satisfaction, trust, loyalty and commitment to
achieve its goal; the banks must increase employment training that lead to internal satisfaction and can
be reflected on their performance and customer satisfaction and loyalty. This could achievable by
providing physical and moral incentives and good motivation program; to focus and increase the study of
personal trait and behavior of employment needs such as: locus of control, self-esteem, need for
achievement, need for clarity, need for autonomy, growth need; to serve customers just on time; to show
the spirit of friendship with customers; to keep up-to-date the modern technology and raise it and to
provide employees with appropriate modern and attractive tools.

.
REFERENCES

Abareshi, A., Husseini, S.Y. (2013). Structural equation modelling. Tehran:

sociologists.

Abbassi, A., Mousavi, M,. Bagheri, S.M. (2012). Direct and intermediary effect of firm
face on customer citizenship behavior.

Abbasi, A., Safarnia, H., & Baradaran, M. (2011). A Study of factors effecting customer
citizenship behavior. Interdiscirlinary Journal of Contemporary Research in Business , 3 (1).

Abbasi, A., Safarnia, H., Baradaran, M., & Abbasi, R. (2011). A Study of Factors Effecting
Customer Citizenship Behavior.

Ahmadi, F., & Tavreh, N. (2011). The relationship between corporate reputation and customer
citizenship behaviors. Interdisciplinary Journal of Contemporary Research in Business , 3 (3).

Ahmadi, F., & Tavreh, N. (2011). The Relationship Between Corporate Reputation and
Customer Citizenship Behaviors. Journal of Contemporary Research , 3.

Alniacik, U., Cigerim, E., Akcin, K., & Bayram, O. (2011). Independent and joint effects of
perceived corporate reputation, affective commitment and job satisfaction on turnover
intentions. 24, 11771189.

Angelova, B., & Zekiri, J. (2011). Measuring Customer Satisfaction with Service Quality Using
American Customer Satisfaction Model (ACSI Model). 1(3).

AdroniKids, B. a. (2008). the impact of international service Quality On Customer

Service Behaviour. international journal of quality reliability managment , 943-954.

28
Ahmadi, H. A. (2006). Job satisfaction and organizational loyalty of employees. Arab Journal of
Management Sciences , 308.

Ajarmeh, T. A. (2005). Marketing banking. Amman jordan: Dar Hamid for publication. and
storey, j. a. (1998). new services development. Eropean Jornal.

Babi-Hodovi, V., Mehi, E., & Arslanagi, M. (2011). Influence of Banks Corporate Reputation on
Organizational Buyers Perceived Value. 351-360.

Bartikowski, B., & Walsh, G. (2011). Investigating mediators between corporate

reputation and customer citizenship behaviors. Journal of Business Research , 64 (3),
3944.

Bartikowski, B., & Walsh, G. (2011). Investigating Mediators Between Corporate

Reputation and Customer Citizenship Behaviors. Journal of Business Research ,
64, 3944.

Bove, L., Robertson, N., & Pervan, S. (2003). Customer Citizenship Behaviors: Towards
the Development of a Typology., (p. Conference Proceedings Adelaide).

Chung, t. w. (2006). The Moderating Effects of Involvement on the Realationships

among Perceived Service Quality, Customer Satisfaction, and Customer Citizenship Behavior.

Duffy.d.i. (2003). internal and external factor which effect customer loyality. journal of customer
marketing . H.CH, K. (1999). Internal Service Quality An Empirical Assessment.
international journal of quality management.

Herbert, e. (1980). personal human recourses management. Richard Irwin inc . Heskett, J. S.
(1997). The Service Profit Chain. Free Press.New York

29
Khodayari, M. (2009), measuring job satisfaction and customer satisfaction of
export business and presenting psychological intervention pattern for promoting it.
.

Qasemi, F,. Amiri, Y. (2010). Effect of justice and emotion on irresponsible behavior of
organizations..

Johnson, W. .. (2004). customerretailer loyality in thecontext of motive chanel strategy. Journal

of retailing .

Jun, m. a. (2010). examining the relationship between service quality and its dimensions, and
internal customer satisfaction, . Total quality management.

J. O. (1995). organizational behavior. Jerusalim: Open Education Program Nablus. William.

(1990). cusomer satis faction and profitability. Journal marketing .

Khaleq, N. A. (1982). Job satisfaction and its impact on labor productivity. Journal of Social
Sciences.

Khshab, H. T. (2005). The impact of some measures to marketing performance of employees in

banks. Mosel University .

Mukherjee, M. &. (2004). the relative influnce organisational commitment and job satisfaction
on service quality of customer and employees. journal of services marketing , 162-174.

Murad, S. A. (2007). Activation of bank marketing. Arab Office for Knowledge. rfai,

M. A. (1981). Organization of human behavior. Arab Library renaissance .

30
Salmi, A. A. (1998). Human Resource Management. Cairo: Dar Al Ghareeb for printing and
publishing. Saqer, A. A. (1978). Human Resource Management. Cairo: Book Hous.

Shenwani, S. A. (1976). Personnel management and human relations. Alexandria: Youth

university Foundation . Tai, B. A. (1999). marketing services strategic Entrance. Amman: Dar
Wael for puplishing.

Sharififar, A. (2010). Citizenship behavior of employees and their effect on constructing social
capital. Tadbir. (217). 55-63.

Sadraee, S. A. (2010). Customer loyalty in business companies

University, J. O. (1995). organizational behavior. Jerusalim: Open Education Program Nablus.

William. (1990). cusomer satis faction and profitability. Journal marketing .

Zoghbi, F. A. (1998). Study the level of job satisfaction and morale of the staff of the University
of Moatah.

Zoghbi, F. A. (1998). Study the level of job satisfaction and morale of the staff of the University
of Moatah.Moatah Journal for Studies and Research

31