Engineering in Cooperative Banks and Its Impact on Clients

Home , Business process

© 2020 IJRAR February 2020, Volume 7, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138) A STUDY ON STRATEGIC ISSUES AND CHALLENGES OF BUSINESS PROCESS RE- ENGINEERING IN COOPERATIVE BANKS AND ITS IMPACT ON CLIENTS

Mr.Sunil Kumar M.N* & Dr.Binoy Mathew** *.Mr. Sunil Kumar, Research Scholar-VTU, Assistant Professor, Department of Commerce, Government Home Science College for Women, Holenarsipura-573211, Karnataka State, India **Dr.Mathew. Professor, Department of Post Graduate Research Centre, RRC, Visvesvaraya Technological University Muddenahalli, Chikkaballapura-562101, Karnataka, India,

Abstract

The dynamic changes in technology have lead each and every industry to computerization and use of technology for effective utilization of resources, cost effectiveness and profit maximization, for this Cooperative banking is also not an exception. Business Process Reengineering is fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance. The stiff competition in banking services is a pushing factor for Cooperative banks to improve its service provision. In today’s business environment, customers expect to receive services that satisfy them regardless of the price they are willing to pay (AGI, 2001). In this regard, organizations have been working hard to reduce Operational Costs while offering what is required by customers. Organizations work hard to reduce Operational Costs which results in setting service prices which are afforded by majority of customers. Amongst the performance improvement techniques, BPR is a radical technique proven to be the most effective means of enhancing organizational effectiveness and efficiency through improved business processes in cooperative banks. To achieve the desired goal, improving service quality and satisfying its customers, the bank implemented BPR. This study explains the different methods of BPR, key factors for the successful BPR and how BPR implemented in SBI as an example. To understand the impact of BPR questionnaires were distributed to customers and bankers and analysed findings from it. The outcome of this study provides interest insight to researchers for understanding on the effects of Business Process Reengineering and knowledge stocks on organizational performance. Keywords used: Business Process Reengineering, BPR, cooperative Banks 1. INTRODUCTION Business Process Re-engineering is the ’fundamental rethinking' and ’radical redesign’ of business processes to bring about 'dramatic improvement’ in performance. Business Process Re-engineering (BPR) is the strategic analysis of business processes and the planning and implementation of improved business processes. The analysis is often customer centred and holistic in approach. The movement of cooperative banking came into existence with the main motto of meeting the credit needs of weaker sections in rural and urban areas of the country that have hitherto neglected by the commercial banking sector and to promote their economic position through self-reliance on the principle of equity being governed by the democratic system which is a unique in Indian banking sector. The services of cooperative banks in deploying credit and rendering other services are indispensable and important for qualitative improvement in the economic conditions of poor people in areas and thereupon social status. A business process is a group of logically related tasks carried out using a firm’s resources to provide customer oriented results in the support of the Cooperative Banks’s objectives.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 733

2. Key targets of BPR: 1. Customer friendliness: One of the main goals of introducing BPR is to get a competitive edge, and that can only be gained by providing the customer more than what the others in the market asking for. 2. Effectiveness: How effective is the product or service that the business or manufacturing company providing the customer? If whatever product or service the business might be providing for the customer is successful, then the customers would automatically want to buy that service again. 3. Efficiency: How efficient is the company that is manufacturing the product in minimizing costs before introducing it to the market? This is one of the questions that are believed to be very important. If a manufacturing company can master the skill of being efficient, they can automatically customer friendly and effective. 3. HOW CAN BPR BE APPLIED TO COOPERATIVE BANKS? When British Telecom had announced their Business Plan, all competitors were eager to find out who would be the new CEO of the Cooperative Banks. To the surprise of all the new CEO it was the customer. The company had decided to transform all the operations of the Cooperative Banks the way customers wanted them to operate. The most important action in applying BPR is the company's strategic goal to provide customer oriented services. BPR is a technique used to implement this type of organizational structure. Having the management commitment for change, another very important factor for implementing BPR, is the enabling role of Information Technology. The way that businesses are organized around departments is very logical since, for instance, there were physical barriers in the communication of the accounting department with production department. So it wasn't possible for a cross functional team to communicate efficiently. In the 90s when telecommunication technologies were becoming abundant and low costing BPR was becoming a world-wide applicable managing technique for business upgrade, enabled by the technology. Employees can easily operate as a team using intranets/extranets, workflow and groupware applications, eliminating distances. We can work together even though we are located in different places.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 734

a) Empowering people: Empowerments means giving people the ability to do their work the right information, the right tools, the right training, the right environment, and the authority they need. Information systems help empower people by providing information, tools and training. Providing Information: Providing information to help people perform their work is a primary purpose of most information systems although they provide information in many different ways. b) Providing Tools: In addition to providing the right information, empowering people means giving them the right tools. Consider the way planning analysts produce consolidated corporate plans based on plans of individual divisions and departments. c) Providing Training: Since information systems are designed to provide the information needed to support desired work practices, they are often used for training and learning. As shown by an expert system and a decision simulator, they sometimes provide new and unique training methods. IBM developed an expert system for fixing computer disk drives. The expert system was an organized collection of the best knowledge about fixing these disk drives, and it fostered rapid and efficient training. Before the system was developed, technicians typically took between 1 and 16 months to become certified, but with the expert system, training time dropped 3 to 5 months. d) Eliminating Unproductive Uses of Time: Information systems can reduce the amount of time people waste doing unproductive work. A study of how professionals and managers at 15 leading U.S. corporations spent their time concluded that many professionals spent less than half of their work time on activities directly related to their functions. Although the primary function of salespeople is selling, the time breakdown for salespeople averaged 36 percent spent on prospecting and selling, 39 percent spent on prospecting an selling, 3 percent on servicing accounts, 19 percent on doing administrative chores, and 6 percent on training. Better use of information systems could save much of their unproductive time performing chores such as collecting product or pricing information, determining order status for a customer, resolving invoice discrepancies, and reporting of time and expenses. e) Eliminating Unnecessary Paper: One common way to improve data processing is to eliminate unnecessary paper. Although paper is familiar and convenient for many purposes, it has major disadvantages. It is bulky, difficult to move from place to place, and extremely difficult to use for analysing large amounts of data. Storing data in computerized form takes much less physical space and destroys fewer forests, but that is only the beginning. It makes data easier to analyse, easier to copy or transmit, and easier to display in a flexible format. Compare paper telephone bills with computerized bills for a large company. The paper bills identify calls but are virtually impossible to analyse for patterns of inefficient or excessive usage.

f) Eliminating Unnecessary Variations in the Procedures and Systems: In many companies, separate departments use different systems and procedures to perform essentially similar repetitive processes, such as paying employees, purchasing supplies, and keeping track of inventories. Although these procedures may seem adequate from a totally local viewpoint, doing the same work in different ways is often inefficient in a global sense. Whenever the systems must change with new technology, new regulations, or new business issues, each separate system must be analysed separately, often by someone starting from scratch.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 735

4.OBJECTIVES OF BPR: When applying the BPR management technique to a business organization the implementation team effort is focused on the following objectives: 1. Customer focus: Customer service oriented processes aiming to eliminate customer complaints. In service sector and production department customer is the main source of revenue. 2. Speed: Dramatic compression of the time it takes to complete a task for key business processes. For instance, if process before BPR had an average cycle time 5 hours, after BPR the average cycle time should be cut down to half an hour. 3. Compression: Cutting major tasks of cost and capital, throughout the value chain. Organizing the processes a company develops transparency throughout the operational level reducing cost. For instance the decision to buy a large amount of raw material at 50% discount is connected to eleven cross checking in the organizational structure from cash flow, inventory, to production planning and marketing. These checking become easily implemented within the cross-functional teams, optimizing the decision making and cutting operational cost. 4. Flexibility: Adaptive processes and structures to changing conditions and competition. Being closer to the customer the company can develop the awareness mechanisms to rapidly spot the weak points and adapt to new requirements of the market. 5. Quality: Obsession with the superior service and value to the customers. The level of quality is always the same controlled and monitored by the processes, and does not depend mainly on the person, who servicing the customer. 6. Innovation: Leadership through imaginative change providing to organization competitive advantage. 7. Productivity: Improve drastically effectiveness and efficiency.

5.BACKGROUND OF THE STUDY The banking scenario in India is at cross roads and is continuously evolving, but the progress has been remarkable in recent years with the level of competition increasing in the banking industry. Banks are trying with each other to entice customers with more and more personalized service. Over the last decade, the concept of Business Process Reengineering (BPR) has entered the industry mainstream in many business houses and services. Leading organisations in almost every industry have discovered that by harnessing, managing, and redesigning the organizations’ business processes can induce spectacular improvements in business performance and customer service. The use of Information and Communication Technology in Cooperative banking industry has led to the BPR and a shift from the traditional way of banking. However, do these changes in the business process really attract customers and provide satisfaction is in question. This study tries to investigate this phenomenon in the context of Cooperative banks in Bengaluru. BPR implies transforming processes that are part of a larger system in order to enable organizations to empower themselves with contemporary technologies, business solutions and innovations to customize their business processes. In India, the banking sector has a major share in the economy and financial system. Significant developments in the Cooperative banking sector in the post reforms phase has transformed the face of Indian banking in a manner as never before. The entry of new players in India, including new private sector and foreign banks with the added advantage of their established structure, advanced technology and relatively strong asset portfolio, has jolted the public sector banks. This incident is the root cause for the emergence of BPR in the Indian banking arena.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 736

The globalization of the economy and the liberalization of the trade markets have formulated new conditions in the market place which are characterized by instability and intensive competition in the business environment. Competition is continuously increasing with respect to price, quality and selection, service and promptness of delivery. Removal of barriers, international cooperation, technological innovations cause competition to intensify. All these changes impose the need for organizational transformation, where the entire processes and Cooperative Banks climate and Cooperative Banks structure are changed.

6.STATEMENT OF THE PROBLEM The basic problem of this study is to analyse Strategic Issues and Challenges of Business Process Re-Engineering in Cooperative Banks and Its Impact on Clients. The study was carried out to answer the following questions; 1. Whether the system has been operationalized in a way it is conceived; 2. Whether it is in consonance with the Indian conditions; 3. Whether it has achieved its set goals and objectives; 4. What have been bottle necks? And 5. How far it can be improved to serve its set objectives and goals. Reengineering enables processes to be quick, shorter and speedy; products are as per customer’s expectations; there is the change in the mind-set of the people Working within the organization i.e., to create a feeling that they are working ultimately to give out the best to the customer. Therefore the research aims at evaluating the reengineering issues and opportunities utilized by the Cooperative Banks in India with special reference to Bengaluru and hence the title “A study on strategic issues and challenges of business process re-engineering in cooperative banks and its impact on clients.” The study would help the banks to enhance their revenues and cut down the cost. BPR has been super imposed on an existing age old system of banks in India. Despite of being an efficient system, duly accepted worldwide, due to the fact that it was superimposed on the existing system, it has met certain resistance both at structural and implementation stage, and therefore, it is needed to analyse the efficiency of this system at the ground level and to suggest ways by which it would become more compatible and user friendly, for both the employees and customers. This study opens new avenues for economic development and growth of Cooperative banks in study area.

The Cooperative banks can be benefited by increased volume of business and higher productivity, reduced operational cost leading to higher profits, improved employee loyalty and sense of belongingness and establishment of bank within a branch concept. Employees benefit through empowerment leading to higher job satisfaction, effective job rotation as an additional incentive and effective interface with customers as work load is evenly distributed.

7.REVIEW OF LITERATURE: In service organizations, BPR is principally a transforming technique that enables service organizations to perfect business processes, operations and structures, but many unsuccessful BPR attempts have been due to the confusion surrounding BPR, and how it should be performed. Review of earlier research work done on the issue of urban cooperative banks would throw light on the need for the present and policy prescription as well. The contribution of urban cooperative banks in promoting the socio- economic status of the weaker sections and the nation’s economic development has been recognized as a progressive key factor. The urban cooperative banking sector has been attracted the attention of many researchers, academicians and planners. A humble attempt has been made to review the earlier research studies on the study of subject. Some of

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 737

© 2020 IJRAR February 2020, Volume 7, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138) the related studies on the subject taken up by the researchers as well as institutions are reviewed to know and to felt need of the present study. Wienclaw, R. A. (2018). Operations managers are increasingly concerned with the management of business processes in organizations. These processes are any of a number of linked activities that transform an input into the organization into an output that is delivered to the customer or other member of the supply chain. Emphasizing business processes enables the organization to be more flexible, optimize the responsiveness of the organization to the demands of the marketplace, reduce costs, and address issues of quality, consistency, and capability. Some of the most well-known approaches to business process management include business process reengineering, Total Quality Management, and Six Sigma programs. When applied correctly, these tools can be invaluable for optimizing the effectiveness of the organization. Bhasin, J., & Parrey, A. (2018). Business process management strives to induce a radical change rather than an incremental change. An analytical approach has been adopted for the study and the case of J&K Bank, which is a leading private sector bank operating in the state, has been taken for consideration. A sample of 200 customers was selected randomly from Baramulla, Shopian and Pulwama districts. For policy framework, corporate headquarters were consulted. A self-designed research instrument, seeking information from the customers on parameters like cost, quality, services and performance, was used. The study tried to take a critical account of existent business process management in J&K Bank and to study the relationship between business process management and organizational performance. The data has been subjected to correlation analysis. The findings of the study revealed that business process management exists in the J&K Bank and it is having a significant relationship with organizational performance. Darmani, A., & Hanafizadeh, P. (2015 & 2013). In today's societies, work environment and customers' expectations change on a daily manner. Consequently, it is crucial for companies to find a way for adapting themselves to new requirements. For this purpose, reengineering projects have been introduced and evolved in different companies with different responsibilities over the past decades. However, the risk associated with these projects is inevitable and is a huge obstacle on the way of their implementation. This study, in line with previous studies, contributed in this context by proposing a new methodology for selecting suitable processes and adopted best practices candidate for business process reengineering (BPR). The proposed methodology aims to achieve lower risk and higher probability of success for BPR projects. This objective is achieved by integration of the concept of portfolio selection problems (PSP) into the organizational decision making concerning BPR project. A model for selection of most appropriate reengineering scenarios, which is a combination of processes and best practices, is adopted and proposed. This, model by putting additional constraints on risks associated with a BPR project and increasing its return identifies the most prosperous portfolio of scenarios for a reengineering project. The proposed model is tested step-by-step through a case study in order to validate its outcome and justify its practicality. The finding of the study was a new methodology proposed containing a model as a managerial tool for conducting more successful reengineering projects. The applicability of the methodology is tested in one of the largest metallurgical laboratory and research centres of Iran. Four strategic processes were selected and several best practices customized, after screening all processes of the case study. Accordingly, in total, 15 different scenarios were explored for the reengineering project in which four of them identified by the model as the processes with the highest possibility of success through the BPR project. This methodology suggests a novel way to benefit from PSP for process selection problems by putting additional control on implementation risk of reengineering project. While the urge of using reengineering project exists within the current companies, the high level of risk of these projects is considered as a huge obstacle in conducting this project. This study, by proposing a new method, aims to address this issue as well as point to the practicality of integrating PSP model in organizational contexts. Bansal (2015) has thoroughly examined the working of urban cooperative movement and observed thus: “The urban cooperative movement has growing stronger day-by-day and become self-reliant.” Rajendra Singh the then

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 738

Honourable Minister for Agriculture and Cooperation has pointed out that “the urban credit sector had made strides in the recent years. 8.OBJECTIVES OF THE STUDY The nature of the present research is descriptive in nature, and has been undertaken with a view to achieving following objectives: 1. To know the present structure and performance of Cooperative Banks and to Study implementation of the BPR in cooperative Banks in Bengaluru; 2. To analyse the linkages of various processes and the bottlenecks; and to analyse the operational issues and problems of implementation of BPR in Cooperative Banks in the study area. 3. To suggest reforms and implement in the system to make it efficiency oriented, compatible to the Indian conditions and its impact on performance of the cooperative banks and aspirations of customers 9.HYPOTHESES OF THE PROPOSED STUDY: The basic hypotheses of the proposed study are: (a) Any improvised system, like BPR which is imposed on traditional banking system in India will cause certain problems both at structural and implementation level. (b) Post implementation modification, if made based on the ground reality will make the system more effective, result oriented and user friendly.

1. There is no significant impact of BPR on the financial performance in terms of Net Worth, Return on Assets. NPA. Capital Adequacy. ROE, N1M and Market Share in selected Cooperative banks 2. There is a significant impact of BPR on the financial performance in terms of Net Worth, Return on Assets. NPA. Capital Adequacy. ROE, N1M and Market Share in Cooperative banks. 10.MATERIALS & METHODS USED IN THE THESIS Methodology This research work is an analytical study to find out the correlation between BPR and financial performance and customer satisfaction in banking sector. Hence, an attempt is made in the present study to evaluate the process reengineering implementation by taking selected cooperative banks as a sample to understand its impact, problems and prospects. In Banks, changing or redesigning of business process involves reducing complications, cost, variation, and making it faster in speed and time, and thereby achieving markedly higher levels of speed and efficiency of work operations toward meeting customers’ needs and expectations. Business process reengineering in cooperative banks involves vigorous examination and analyses of the existing workflow structure involved in a process, and then reconstructs it again in a logical manner by using the capabilities of IT systems wherever necessary. However before evaluation of BPR, it is essential to know what is meant by BPR, its principles, need, central thrust and structure as well as research methodology to be adopted for study purpose.

11.SAMPLING The study was planned to be carried out in nationalized banks based on the secondary data to determine the impact of BPR on the financial performance and customer satisfaction in selected cooperative Banks in Bengaluru. This was done following the concept of random sampling method. It was finally decided to study five Branches of National Cooperative banks in Bengaluru. All these analyses were based on Primary and secondary data. The researcher has measured the efficiency in the implementation of BPR in terms of flexibility in bank staffs. Dealing with them, IT enabled services such as banking hours, innovative service delivery, service quality, minimum balance criteria and availability of wide range of banking products/services etc., customer care and quality improvement.

The major source of data analysed and interpreted in this study related to all those selected cooperative banks in Bengaluru. The database provides financial statements, ratio analysis, funds flow and cash flows etc. Besides the prowess IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 739

© 2020 IJRAR February 2020, Volume 7, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138) database, relevant secondary data have been collected from various publications of RBI - Banking Statistics Research’s (BSR’s), Banking Statistics, Statistical tables relating to banking in India and Report on trends and progress of banking in India, Reports on Currency and Finance, Economic Survey, Libraries of various research Institutions, Indian Banks Association bulletin, Indian Institute of Bankers Report and various Internet resources.

12.DATA ANALYSIS AND DISCUSSIONS

Table No: 1 Descriptive Statistics

Std. Std.

Sum

Mean

Range

Kurtosis

Variance

Deviation Skewness

Minimum Maximum

Statistic Statistic Statistic Statistic Statistic Statistic Statistic Statistic Statistic Statistic

Std. ErrorStd. ErrorStd. ErrorStd. convenience banking 1000 4 1 5 4313 4.31 .029 .902 .814 -1.715 .077 3.436 .155 strong lasting 1000 4 1 5 3846 3.85 .036 1.143 1.306 -.644 .077 -.861 .155 relationship understand the changes 1000 4 1 5 3458 3.46 .042 1.337 1.788 -.442 .077 -1.084 .155 introduced Employees are well 1000 4 1 5 3691 3.69 .042 1.320 1.743 -.754 .077 -.647 .155 qualified Employees readily respond to customer 1000 4 1 5 3885 3.89 .040 1.265 1.601 -1.048 .077 .019 .155 complains supporting the changes 1000 4 1 5 3834 3.83 .040 1.261 1.590 -.934 .077 -.239 .155 introduced Employees are responsive to customer 1000 4 1 5 3817 3.82 .040 1.276 1.629 -.922 .077 -.284 .155 demands Employees are empathetic to customer 1000 4 1 5 3535 3.54 .042 1.314 1.727 -.511 .077 -1.018 .155 demands Use of internet banking has increased my 1000 4 1 5 3761 3.76 .038 1.209 1.461 -.682 .077 -.735 .155 banking experience. Telephone banking 1000 4 1 5 3810 3.81 .037 1.177 1.385 -.683 .077 -.749 .155 experience. Electronic funds transfer 1000 4 1 5 3779 3.78 .038 1.202 1.444 -.689 .077 -.724 .155 Interbank clearing 1000 4 1 5 3616 3.62 .041 1.292 1.670 -.608 .077 -.874 .155 services Valid N (list wise) 1000

It shows means and standard deviations values of the 12 dimensions of organizational performance. The mean and standard deviations results the Sudanese service firms emphasized more on efficiency of performance (Mean=4.31, Standard Deviation=1.337) followed by flexibility of performance in the Use of internet banking has increased my banking experience (mean=3.76, Standard Deviation=1.209). Given that the scale (Likert scale) used a 5- point scale it can be concluded that BPR services to cooperative banks (sampled firms) in during the last three years achieved low organizational performance in term efficiency of performance compare with the average mean.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 740

Table No: 1A There has been convenience banking even when the banks close Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 8 7 4 5 5 29 There has been Disagree 3 4 1 3 2 13 convenience banking Neutral 25 22 12 14 13 86 even when the banks Agree 82 73 41 66 98 360 close Strongly Agree 133 113 70 83 113 512 Total 251 219 128 171 231 1000

Graph No:1 There has been convenience banking even when the banks close

113 JAYANAGAR BRANCH 13 98 2 5 83 NAGARBHAVI BRANCH 14 66 35 70 JP NAGAR BRANCH 12 41 1 4 113 INDIRA NAGAR BRANCH 22 73 4 7 133 RAJAJI NAGAR BRANCH 25 82 3 8 0 20 40 60 80 100 120 140

Strongly Agree Agree Neutral Disagree Strongly Disagree

The above table reveals that majority of the respondents, n=512 said that there has been convenience banking even when the bank is closed, most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that they received convenient services from the bank

Table No:2 My bank has built a strong lasting relationship in their service delivery Branches of Cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 2 2 3 1 3 11 My bank has built a Disagree 43 49 23 39 37 191 strong lasting Neutral 32 23 11 9 27 102 relationship in service Agree 77 73 44 64 75 333 delivery Strongly Agree 97 72 47 58 89 363 Total 251 219 128 171 231 1000

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 741

Graph No: 2 My bank has built a strong lasting relationship in their service delivery

97 100 89 77 73 72 75 80 64 58 60 49 43 44 47 39 37 40 32 23 23 27 20 11 9 2 2 3 1 3 0 Rajaji Nagar Indira Nagar JP Nagar Branch Nagarbhavi Jayanagar Branch Branch Branch Branch

Strongly Disagree Disagree Neutral Agree Strongly Agree

The above table reveals that, Most of the respondent’s n=363 felt that their bank is having nice relationship, The above table reveals that majority (n=273) of the respondents expressed that the bank employees are very well understand about the changes in the banking, most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that they received convenient services from the bank.

Table No: 3 Employees understand the changes introduced at the bank well Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 22 18 11 21 28 100 Employees understand Disagree 47 46 25 38 40 196 the changes introduced at Neutral 26 30 25 15 27 123 the bank well. Agree 75 70 35 54 74 308 Strongly Agree 81 55 32 43 62 273 Total 251 219 128 171 231 1000

Garph No 3 Employees understand the changes introduced at the bank well

JAYANAGAR BRANCH 28 40 27 74 62

NAGARBHAVI BRANCH 21 38 15 54 43

JP NAGAR BRANCH 11 25 25 35 32

INDIRA NAGAR BRANCH 18 46 30 70 55

RAJAJI NAGAR BRANCH 22 47 26 75 81

Strongly Disagree Disagree Neutral Agree Strongly Agree

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 742

The above table reveals that majority (n=273) of the respondents expressed that the bank employees are very well understand about the changes in the banking, most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that they received convenient services from the bank.

Table No 4 Employees are well qualified for the job they undertake at the banks Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 24 16 9 19 28 96 Employees are well Disagree 39 25 21 18 24 127 qualified for the job Neutral 30 25 18 20 23 116 they undertake at the Agree 75 75 40 54 68 312 banks. Strongly Agree 83 78 40 60 88 349 Total 251 219 128 171 231 1000

Graph No: 4 Employees are well qualified for the job they undertake at the banks

100% 83 78 40 60 88 80%

60% 40 75 75 54 68 40% 30 18 25 20 23 20% 39 25 21 18 24 24 16 9 19 28 0% Rajaji Nagar Indira Nagar JP Nagar Nagarbhavi Jayanagar Branch Branch Branch Branch Branch

Strongly Disagree Disagree Neutral Agree Strongly Agree

The above table reveals that majority (n=349) respondents said that the employees are well qualified. Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that Employees are well qualified for the job they undertake at the banks

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 743

Table No : 5 Employees readily respond to customer complains as reported to them Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 22 21 12 17 15 87 Employees readily Disagree 21 17 8 14 18 78 respond to customer Neutral 23 33 15 20 17 108 complains as Agree 89 69 42 47 70 317 reported to them. Strongly Agree 96 79 51 73 111 410 Total 251 219 128 171 231 1000

GRAPH NO 5 EMPLOYEES READILY RESPOND TO CUSTOMER COMPLAINS AS REPORTED TO THEM

Strongly Disagree Disagree Neutral Agree Strongly Agree

JAYANAGAR BRANCH 15 18 17 70 111

NAGARBHAVI BRANCH 17 14 20 47 73

JP NAGAR BRANCH 12 8 15 42 51

INDIRA NAGAR BRANCH 21 17 33 69 79

RAJAJI NAGAR BRANCH 22 21 23 89 96

The above table reveals that majority (n=410) of the respondents strongly said that the complains are taken immediately in the banks, Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that Employees readily respond to customer complains as reported to them.

Table No 6 Employees at the bank look ready to supporting the changes introduced Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 18 21 8 11 19 77 Employees at the bank Disagree 31 19 13 16 29 108 look ready to Neutral 25 25 14 18 23 105 supporting the changes Agree 86 78 45 50 65 324 introduced Strongly Agree 91 76 48 76 95 386 Total 251 219 128 171 231 1000 .

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 744

GRAPH NO 6. EMPLOYEES AT THE BANK LOOK READY TO SUPPORTING THE CHANGES INTRODUCED

Strongly Disagree Disagree Neutral Agree Strongly Agree

91 76 48 76 95

86 78 45 65 50

25 23 25 14 18 29 31 19 13 16 18 21 8 11 19 RAJAJI NAGAR INDIRA NAGAR JP NAGAR BRANCH NAGARBHAVI J A Y A N A G A R BRANCH BRANCH BRANCH BRANCH

The above table reveals that majority of the respondents ( n=386) strongly said that employees at the bank look ready to supporting the changes introduced. Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that Employees at the bank look ready to supporting the changes introduced.

Table No: 7 Employees are responsive to customer demands Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 20 24 13 11 15 83 Employees are Disagree 26 24 16 22 18 106 responsive to Neutral 22 28 16 18 22 106 customer demands Agree 91 60 33 57 80 321 Strongly Agree 92 83 50 63 96 384 Total 251 219 128 171 231 1000

GRAPH NO 7 EMPLOYEES ARE RESPONSIVE TO CUSTOMER DEMANDS

Strongly Disagree Disagree Neutral Agree Strongly Agree

Jayanagar Branch 15 18 22 80 96

Nagarbhavi Branch 11 22 18 57 63

JP Nagar Branch 13 16 16 33 50

Indira Nagar Branch 24 24 28 60 83

Rajaji Nagar Branch 20 26 22 91 92

0 50 100 150 200 250 300

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 745

The above table reveals that majority of the respondents ( n=384) strongly said that employees are responsive to customer demands Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said Employees are responsive to customer demands .

Table No 8. Employees are empathetic to customer demands Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 26 14 8 19 16 83 Employees are Disagree 43 45 28 34 51 201 empathetic to Neutral 26 20 8 18 30 102 customer demands Agree 90 78 42 51 65 326 Strongly Agree 66 62 42 49 69 288 Total 251 219 128 171 231 1000

Graph No 8 Employees are empathetic to customer demands 100 90 78 80 69 65 66 62 60 51 51 49 43 45 42 42 40 34 26 28 26 30 19 20 14 16 18 20 8 8 0 Strongly Disagree Disagree Neutral Agree Strongly Agree

Rajaji Nagar Branch Indira Nagar Branch JP Nagar Branch Nagarbhavi Branch Jayanagar Branch

The above table reveals that majority of the respondents (n=326) agreed and said that employees are empathetic to customer demands. Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that Employees are empathetic to customer demands.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 746

Table No : 9 The use of internet banking has increased my banking experience Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 12 11 4 3 8 38 The use of internet Disagree 40 45 24 33 43 185 banking has increased Neutral 20 25 14 19 17 95 my banking experience. Agree 101 69 42 51 79 342 Strongly Agree 78 69 44 65 84 340 Total 251 219 128 171 231 1000

Grapbh No 9 The use of internet banking has increased my banking experience

84 Jayanagar Branch 17 79 8 43 65 Nagarbhavi Branch 19 51 3 33 44 JP Nagar Branch 14 42 4 24 69 Indira Nagar Branch 25 69 11 45 78 Rajaji Nagar Branch 20 101 12 40 0 20 40 60 80 100 120

Strongly Agree Agree Neutral Disagree Strongly Disagree

The above table reveals that majority of the respondents ( n=342) agreed and said that the use of internet banking has increased their banking experience. Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that the use of internet banking has increased my banking experience.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 747

Table No 10 The introduction of telephone banking has improved my banking experience Branches of cooperative Bank

Total

Nagar

Branch Branch Branch Branch Branch

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 6 3 2 5 9 25 The introduction of Disagree 44 42 20 37 43 186 telephone banking has Neutral 21 26 13 14 23 97 improved my banking Agree 100 71 43 55 69 338 experience. Strongly Agree 80 77 50 60 87 354 Total 251 219 128 171 231 1000

TABLE NO: 10 THE INTRODUCTION OF TELEPHONE BANKING HAS IMPROVED MY BANKING EXPERIENCE

100 100 87 80 77 80 71 69 60 55 60 50 44 42 43 43 37 40 26 21 20 23 14 20 13 9 6 3 2 5 0 Rajaji Nagar Indira Nagar JP Nagar Branch Nagarbhavi Jayanagar Branch Branch Branch Branch

Strongly Disagree Disagree Neutral Agree Strongly Agree

The above table reveals that majority of the respondents ( n=354) strongly agreed and said that the introduction of telephone banking has improved their banking experience. Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that the introduction of telephone banking has improved my banking experience

Table No : 11 Electronic funds transfer introduced in the banking sector has increased my ability to use the banks services Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 8 7 9 6 5 35 Disagree 34 45 29 29 46 183 Electronic funds Neutral 16 28 12 20 21 97 transfer Agree 103 78 29 54 74 338 Strongly Agree 90 61 49 62 85 347 Total 251 219 128 171 231 1000

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 748

GRAPH NO: 11 ELECTRONIC FUNDS TRANSFER INTRODUCED IN THE BANKING SECTOR HAS INCREASED MY ABILITY TO USE THE BANKS SERVICES

Strongly Disagree Disagree Neutral Agree Strongly Agree

JAYANAGAR BRANCH 5 46 21 74 85

NAGARBHAVI BRANCH 6 29 20 54 62

JP NAGAR BRANCH 9 29 12 29 49

INDIRA NAGAR BRANCH 7 45 28 78 61

RAJAJI NAGAR BRANCH 8 34 16 103 90

The above table reveals that majority of the respondents (n=347) strongly agreed and said that the electronic funds transfer introduced in the banking sector has increased their ability to use the banks services. Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that the Electronic funds transfer introduced in the banking sector has increased my ability to use the banks services.

Table No: 12 Interbank clearing services introduced has reduced time spent in clearing my cheques Branches of cooperative Bank

Nagar Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira

Strongly Disagree 24 18 5 10 18 75 Interbank clearing Disagree 45 36 27 32 44 184 services introduced has Neutral 23 24 10 16 25 98 reduced time spent in Agree 80 83 44 51 78 336 clearing my cheques. Strongly Agree 79 58 42 62 66 307 Total 251 219 128 171 231 1000

Graph No : 12 Interbank clearing services introduced has reduced time spent in clearing my cheques

Jayanagar Branch 18 44 25 78 66

Nagarbhavi Branch 10 32 16 51 62

JP Nagar Branch 5 27 10 44 42

Indira Nagar Branch 18 36 24 83 58

Rajaji Nagar Branch 24 45 23 80 79

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Strongly Disagree Disagree Neutral Agree Strongly Agree

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 749

The above table reveals that majority of the respondents (n=336) agreed and said that Interbank clearing services introduced has reduced time spent in clearing their cheques. Most of the respondents received the services Commented [A1]: from the Rajaji nagar, Indiranagar and jayanagar branch said that the Interbank clearing services introduced has reduced time spent in clearing my cheques.

Table No : 13 Technology being used in the banks have allowed everywhere banking Branches of cooperative Bank

Total

Branch Branch Branch Branch Branch

JP Nagar

Jayanagar

Nagarbhavi Nagarbhavi

Rajaji Nagar Indira Nagar

Strongly Disagree 23 18 13 12 11 77 Technology being used Disagree 47 46 24 33 43 193 in the banks have Neutral 18 21 19 15 26 99 allowed everywhere Agree 86 69 33 58 83 329 banking Strongly Agree 77 65 39 53 68 302 Total 251 219 128 171 231 1000

Graph No : 13 Technology being used in the banks have allowed everywhere banking

100 86 83 77 80 69 65 68 58 53 60 47 46 39 43 33 33 40 23 24 26 18 18 21 19 13 15 20 12 11 0 Rajaji Nagar Indira Nagar JP Nagar Branch Nagarbhavi Jayanagar Branch Branch Branch Branch

Strongly Disagree Disagree Neutral Agree Strongly Agree

The above table reveals that majority of the respondents (n=329) agreed and said that the technology being used in the banks have allowed everywhere banking. Most of the respondents received the services from the Rajaji nagar, Indiranagar and jayanagar branch said that the Technology being used in the banks have allowed everywhere banking.

13. FINDINGS FROM THE SURVEY: 1. Most of the bankers think that introduction of alternate channels has decreased customer density in the branch, thus allowing them to give superior customer service. 2. BPR initiatives taken in the bank have impacted bankers a lot among them bank working hours, work life balance and product cross sell are three main aspects. 3. Most of the bankers feel that BPR increased their working hours and they are not happy with that but surprisingly most of them are feeling neutral about work life balance. 4. According to bankers how BPR impacted following parameters like customer satisfaction, Business improvement, transparency, Security and product mix IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 750

14. AREAS FOR THE FURTHER RESEARCH This study provides some suggestions for future research. The sample from the study is limited to Cooperative Banks in Bengaluru. Future research should consider replicating this study in other cultures especially on the moderating effect of issues and challenges of BPR in Cooperative banks and knowledge capabilities dimensions. In addition, further research is also, needed to be conducted in other sector or industry besides service sector such as manufacturing, Insurance sectors. This research would help to generalize the findings of this study in a broader context. Alternatively, a cross-cultural comparative analysis would further enhance the understanding of BPR and learning capabilities of different cultures. 15. CUSTOMER’S FEEDBACK ON BPR IN COOPERATIVE BANKING: 1. Technological change is an ongoing process. 2. It is around global market where results near to real time to serve business purpose 3. It has increased the expense on technology to great extent due to introduction of technology in unwanted and less needed areas, which in turn has reduced the profitability. 4. Surely it has reduced the wastage of man power on unproductive activities like interest calculation, jotting and tallying etc. 5. New jobs have come up with technology 6. Communication has become easy

16. CONCLUSION Cooperative Bank which is one of the profitable segment in banking sector had changed because of BPR. Customers are satisfied with the number of products available with the bank they are even using non-banking services like insurance and mutual funds through banks only. Most of the customers have migrated to other alternate channels; ATMs and Internet banking are of top priority and they are happy with these services. Access to Mobile banking and call centers need to be improved as they are emerging services especially in countries like India. Most of the bankers are accepting the changes that are happening in the industry but they feel that these advancements increased their work timings which effected work life balance. BPR improved their product mix with which they can cross sell their products. Migration to other alternate channels decreased customer density increased transparency, security which increases customer satisfaction and helped to improve business. Migration to other alternate channels reduces cost by 90% thus profits of the banks can be improved. To cater customer needs banks tied up with other players to provide customized products. Cross selling these products has given a chance to gain fee based income.

17. REFERENCES: 1. ADEYEMI, S.; AREMU, M. A. (2008). Impact assessment of business Process re-engineering on organizational performance. European Journal of Social Sciences, v. 7, n. 1, p. 115-125. 2. CHEN, Y. (2001). Empirical Modelling for Participative Business Process Reengineering. Thesis. University of Warwick. 3. COVERT, M., (1997), Successfully Performing Business Process Re-engineering, Visible Systems Corporation. 4. DAVENPORT, T.H. (1993). Process innovation. Boston: Harvard Business School Press. 5. DEBELA, T.; HAGOS, A. (2011). The design and implementation of business process reengineering in the Ethiopian public sector: n assessment of four organizations. African Books Collective Limited. 6. DODARO, G. L.; CRWLEY, B. P. (1997). Business process reengineering assessment guide. United States General Accounting Office-Accounting and Information management Division, 3rd Version. 7. GUNASEKARAN, A.; CHUNG, W. W. C.; KAN, K. (2000). Business process reengineering in British company: A case study. Logistics Information Management, v. 13, n. 5, p. 271-285.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 751

8. HAIR, J. F.; BUSH, R. P.; ORTINAU, D. J. (2003). Marketing research: Within a changing information environment (2nd Ed), New York: McGraw-Hill/Irwin. 9. HALL, G.; ROSENTHAL, J.; WADE, J. (1993). How to make reengineering really work. Harvard Business Review, p. 119–131. 10. HAMMER, M., (1990). Reengineering Work: Don't Automate, Obliterate, Harvard Business Review, p. 104–11 11. HAMMER, M.; CHAMPY, J. (1993). Reengineering the Corporation: A Manifesto for Business Revolution. New York: Harper Business. 12. HE, X. J. (2005). A comparative study of Business Process Reengineering in China. Communication of the IIMA, v. 5, n. 2, p. 25- 30. 13. HEIZER, J.; RENDER, B. (2011). Operations Management (10th Ed). New Jersey: Prentice Hall. 14. HESSON, M. (2007). Business process reengineering in UAE public sector: A naturalization and residency case study. Business Process management Journal, v. 13, n. 5, p. 707-727. 15. HESSON, M.; AL-AMEED, H.; SAMAKA, M. (2007). Business process reengineering in UAE public sector: A town planning case study. Business Process Management Journal, v. 3, n. 3, p. 348-378. 16. KASSAHUN, A. E. (2012). The effect of Business Process Reengineering on public sector organization performance (A developing economy context). PhD Thesis. RMIT University, Ethiopia. 17. MANGANELLI, R. L.; KLEIN, M.M. (1994). The re-engineering Handbook: A step-by-step guide to business transformation. New York: American Management Association. 18. MINYAN, Y.; TONGJAN, Z. (2009). The empirical analysis on the structural model of business process reengineering of National Commercial Banks. Journal of Reformation and Strategy, n. 3, p. 69-72. 19. MOTHOBI, M. (2002). Business process re-engineering: Improving business operations. Dissertation. The University of Wales. 20. RINGIM, K. J.; RAZALLI, M. R. (2011). Effect of business process reengineering factors on organizational performance of Nigerian banks: Information technology capacity as the moderating factor. International Journal of Business and Social Science, v. 2, n. 13, p. 198-201. 21. RINGIM, K. J.; RAZALLI, M. R.; HASNAN, N. (2012). Moderating effect of information technology (IT) capability on the relationship between business process reengineering factors and organizational performance of Bank. African Journal of Business Management, v. 6, n. 16, p. 555-5567 22. SHIN, N.; JEMELLA, D. (2002). Business process re-engineering and performance improvement: The Case of Chase Manhattan Bank. Business Process Management Journal, v. 8, n. 4, p. 351-363. 23. SELLADURAI, R. (2002). An organizational profitability, productivity, performance (PPP) model: Going beyond TQM and BPR. The journal of total quality management, v. 13, n. 5, p. 613-619. 24. STODDARD D. B.; JARVENPEA S. L. (1995). Business process redesign tactics for managing radical change. Journal of Management Information System, v. 12, n. 1, p. 61-107. 25. TENG, J. T.; KETTINGER, W, J. (1995). Business process redesign and information architecture: Exploring the relationship. ACM SIGMIS, v. 26, n. 1, p. 30-42. 26. TERZIOVSKI, M.; TITZPATRICK, P.; O’NEIL, P. (2003). Successful predictors of business process reengineering (BPR) in financial services. Int. J. Production Economics, n. 84, p. 35-50. 27. YAHYA, B. N. (2002). Business process re-engineering: concepts, causes and effects. Journal of Technical Industries, v. 4, n. 2, p. 102-110. 28. VENKATRAMAN, N. (1994). IT enabled transformation: From automation to business scope redefinition. Sloan Management Review, v. 35, n. 2, p. 73-87. 29. XIAOLI, L. (2011). Correlation between business Process reengineering and operation performance of National Commercial Banks. Journal of Innovation and Management, n. 7, p. 981-985. 30. ZAHEER, A.; MUSHTAQ, K.; ISHAQ, H. M. (2008). Reengineering the procurement process in public sector organization: A case study. International Bulletin of Business Administration, 1451-143X (3). Retrieved on April 10th, 2012 from the World Wide Web: http://www.eurojournals.com/IBBA_3_04.pdf.

IJRAR2001107 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 752