Type: Definition Essays
Sample donated: Charlene Mason
Last updated: October 1, 2019
Employeesare the internal customers and an important resource for banks. It has beenestablished that favorable employee perceptions of service are vital forimproving service performance (Kelley, 1992; Reyierse and Hasker, 1992). Forexample, define the service profit chain as involving direct and strongrelationships between profit, growth, customer loyalty, customer satisfaction,the value of goods and services delivered to customers and employee capability,satisfaction, loyalty and productivity (Heskett et al., 1992). As can be seen from the model reproduced thestarting point is the Human Resource aspect (Ostroff and Bowen, 2000). Theyasserted that employee attributes are influenced by the organization.
The service profit chain demonstrates the linkages ofcreating value for the end customer by emphasizing that providing employeeswith sufficient training and support, apart from other factors leads to highexternal service value. Banking sector has said that positive relationshipsexist between staffing, systems support, functioning equipment, and employeemorale and bank branch administration (Schneider et al.,1980). Robinson (2000)has asserted that most banks adopt technology to improve efficiency andtherefore service quality. Most evidence from the literature revealed that thelevel of user’s acceptance of Electronic processes in banking will be greatlydetermined by their perceptions of its effectiveness and use in term of costs andbenefits (Pavlou, 2003). Whereas IT-based distribution channels reduce personalcontact between the service providers and the customers, which inevitably leadsto a complete transformation of traditional bank-customers relationships(Barnes and Howlett, 1998).
Most studies related to technology in banking(Agboola ,2003;Oluwatolini et al, 2011) have concluded that investments intechnology results in better facilitation for customers as well as employees. There is a divergent view that states that though technologymay not necessarily lead to higher employee morale. If bank employees’primarily considers technology as a convenient channel that decreases costs andif its adoption will not affect their positions, then they will adopt it (Nathet al., 2001). Davis et al. (1989) have argued that any new technology that displacesthe older or familiar method of carrying out work, it is likely to causedisturbance in the organization. He has asserted that the role of employees andmanagers is very critical for its successful implementation. Ahmad andAhmad(2010) say that the traditional drivers of employee morale may not be thesame in the technology-dependent industry.
Employees will always use thetechnology available is also a myth (Lee Yoon and Lee, 2009)as this isinfluenced the kind of training programs conducted, the quality of instruction,perceived ease of use and usefulness. Chun(2003) has posited that ongoingeducation and a learning culture in the organization play an important role.Dauda and Akingbade (2011) have also posited that technology is a key driver oforganizational performance; but very few studies have explored the employeedimension. Thetransition from a manual system to automation requires users to learn newskills and knowledge to compensate changes in job design.
All users will startat a similar or usually zero experience level where the employee’s cognitiveabilities will pay a vital role. Job characteristics will change drasticallysince basic aspects like input methods, utensils used will also changeregardless. Automation is a leap forward in changes in control, hence allaspects of the prevailing work environment is bound to change with varyinglevel individual effect mainly on employees involved in the process. Correspondingchanges in employee behavior can be extracted by a simple evaluation inrelative comparison in a pre-post implementation scenario. Hence, this studyestablishes hypothetical connections between automation and EP through commonfactors affecting performance and evaluate any collaborations immergingtherein. An industry isa group of firms that offer a product or service or class of products orservices that are close substitutes for one another.
Banks provide a wide rangeof financial services to all sectors of the economy and are governed by theCentral Bank of a country. The major functions of banks include acceptingdeposits, money transfers, advancing loans, payment of customers’ bills andother utility functions (Goyal and Joshi, 2011). There are many similarities in nature on products& services render by business entities. In the baking context several offinancial solution provided by the banks & it’s governed by the CentralBank of that country. Accepting deposits, granting advances, transfer of money& utility bill payments are consider major functions of bank (Goyal andJoshi, 2011).
In this study,a platform is defined as the basic hardware (computer) and software (operatingsystem) on which Online Transaction Processing (OLTP) can be run. OLTPapplications are client/server applications that give online users directaccess to services and information (Meerapur, 2014). In a banking environment,OLTP entails requesting and receiving money or data from a class of softwareprograms capable of supporting transaction-oriented applications on theInternet (Gilbert and Hewitt, 2013). Therefore, online transactions arepassword-protected transactions that require a password to authorise thetransfer of funds and banking information between the customer and the retailer(Meerapur, 2014). In this research, Online Transaction Processing (OLTP)runs on a two platforms. All the computerized processes work on basic hardware(computer) & software applications (operating systems).
OLTP given thedirect access to end users, (employees & customers) to handle the service through client/server platform (Meerapur, 2014).However in abanking contextm money is the major item that involved in majority oftransaction & it’s need to be having a highly secured way to deal with.OLTP allow to sending & receiving money through a software programs, byusing a date server that support the online access (Internet). Therefore, thesetransactions need to protect from unauthorized persons access & protected usingon a password (Meerapur, 2014). In this paper,Internet banking is defined as banking done electronically through the bank’swebsite without the intervention of any banking personnel, through one’sPersonal Computer (PC) or other devices that can access the website through theInternet. In other spheres, Internet banking is synonymous to online banking,e–banking and PC banking (Baten & Kamil, 2010; Dube, Chitura, &Runyowa,2009). Internet banking enables bank customers to transfer funds, pay billsin real time and access general information on bank products and servicesthrough the use of the bank’s website (Hadadi, Otaif, Faqihi, & Al- ahmadi,2006). AutomatedTeller Machines (ATM) are defined as electromechanical devices that permitauthorised users to use machine-readable plastic cards (which are magneticallyencoded), and a personal identification number to withdraw cash from theiraccounts and/or access other services, such as balance enquiries and transferof funds in real time (Hossain and Bari, 2006).
In this case, the ATM systemsare connected to the bank’s systems for the retrieval of money and information.Mobile banking is defined as a service that enables customers to access theirbank accounts’ information, transfer funds or pay bills in real time throughtheir cellphones via a mobile network (Rahmani, Tahvildari, Honarmand, Yousefi,, 2012). In this case, the bank and the mobile network company getinto a partnership and work together to enable Mobile banking transactions.
In this research paper, credit approval process isdefined as a web based system that enable to users (employees) to enter thecustomer credit oriented information through a computerized softwareapplication & deciding an eligibility of accepting a credit facility.Further, it’s allowed to approval authorities to taken decision on particularitem that approved or not.Automated Teller Machines (ATM)enable to users that withdraw the cash, deposits the cash & cheques, fundtransfer through different accounts & utility bill payments through anelectronically enable devices. In these situations the banks provide themachine enable plastic card that having a magnetic encoded details of user toaccess the system in real time (Hossain and Bari, 2006).Since the most of the bankbranches are now interconnecting each other & its provide the service ofaccess any information through ATM.Internet banking & Mobilebanking can identify as, to carry out the banking transaction without anyadditional help from another person through the online enable web based systemthat provide by the bank, on his personal computer or any other devices (Mobilephone,Tab etc).And also, Online bank should have the facility of everytransaction happening in real time (Baten & Kamil, 2010; Dube, Chitura, &Runyowa,2009).
This enables that checking account balances, transfer of fundsbetween two accounts & payment of utility bills in real time. Further, it’sproviding the service of customers can gather information about the bankingproducts & services that bank offer (Hadadi, Otaif, Faqihi, & Al-ahmadi, 2006).2.
2 Employee Performance Employee Performance (EP) isundoubtedly one of the most important assessments to any organization. Toevaluate the performance of employees is a most important task in organization.Despite its importance it is a poorlyunderstood subject were researchers are currently establishing definition andconsensus on conceptualization.
However,most of the organization still does not provide the adequate attention on this& researchers try to provide the definition & various concepts tosimply fine this. The typical explanation of employeeperformance focuses on individual behavior or actions and not the outcome ofthis behavior of actions. Rotundo (2000) goes on to say this is an underlyingbasis despite varying conceptualizations devised by other researchers.Thecommon definition of employee performance is an individual behavior or hisaction and not the end results that of coming in due his behavior or action.
Rotundo (2000) define that this is an underlying basis due to various kind ofconcept introduce by other guru’s. According to Smith (1976) directobservation of said behavior is an accurate measurement of EP and leads todiscuss problems with other definitions on a qualitative basis.Smith(1976) describe that above mention behavior is a true way of measure theemployee performance (EP) & this will further having a argument with otherdefinitions as well.Murphy (1989) rejects thebehavior-outcome definition of Smith (1976) stating that job performance shouldbe measured by behavior alone and not by outcome.
He goes on to say aquantitative approach will drive employees to conduct measurable objectivesexampled in retail store if assesses on the volume of sales the employee willdecline his grasp on qualitative measures as customer service qualityeventually not contributing to organizational goals.Accordingto the Murphy (1989), he rejects the Smith (1976) idea about behaviorassessment & describe that the job performance should have measured bybehavior & not the action. Further, he states that measurement of employee’sproductivity defines not only the service quality of individual that alsocontribute to the volume of task set to the overall organization goals.Further, Murphy’s explanation definesthe employee behavior related to organizational objectives are to be consideredas performance.Hence,Murphy’s finding gives the idea about, behavior of works force has arelationship to companies overall objectives that are considered asperformance.Campbell (1990) refines the abovedefinition and describes performance as individual (employee) actions andbehavior that (positively) contribute to the organizational goals andobjectives that can be measured according to the individual’s level ofproficiency.This definition in its consistency withothers is considered as the rule of thumb in modern context.
Upon on carefulinspection of all related concepts the following common features of thedefinitions are apparent and describes employee performance as an understandingof individual behavior and not the outcome (of the behavior) which contributeto the set goals of the organization.According to Campbell (1990) EP need tobe differentiated from other forms of performance measurement which sometimeused interchangeably and mostly of all incorrectly. Campbell goes to state thatindividual effectiveness is a result of an action. His example being of aretail shop salesmen measured on sales volume against the organizational normis a measurement of effectiveness and a system that measures the salesman ofhis work ethics (service) is a measurement of performance. However,effectiveness is sometimes used as an index for employee performance as asecondary mode of assessment but carries no direct connection with performanceitself (Campbell, 1990). Like effectiveness, productivity isalso misunderstood as performance Mahoney (1988) defines productivity as aratio between input and output in a production process which outputs arevolume, quality and sales. Raw material, time and effort are identified asinput.Though productivity is considered as anindicator of organizational performance, Mahoney (1988) notes that productivityis not a component in individual performance measurement since the numeratorsare of a different construct.
2.3 Connection betweenaspects of automation and factors that affecting the employee performance. Research done on the subject isextremely scarce which an inquisitive reason to conduct this survey. Severalresearchers in the likes of Langfred & Moye (2004) had discussedrelationship between task autonomy and employee performance based onmotivational, informational and structural mechanisms with enhancement andimpending performance.
Similar exercises were carried out byParker (1997), Ohly (2006), Parker (2003) who all concluded connections betweenautonomy of job control and EP where some researchers had collaborated the twoaspects through physiological states in likes of control orientation andself-efficacy (Frese, 2007). However, these researchers had failedto estimate the impact of automation against organizational objectives mainlydue to boundless parameters regarding automation in a broader extent.Even though above researchers hadfailed to identify the impact of automation, development of TechnologyAcceptance Model demonstrate the clear idea about this subject matter.2.4 Technology Acceptance Model (TAM) Acceptance ingeneral refers to an agreement to something and it involves both acting andbelieving in the idea or technology in question. It involves taking up as wellas the continued use of a product, service or idea (Myers, 2015). In agreementwith Myers, Hall, & Khan (2002) posit that technology acceptance istherefore the choice to acquire and adopt a new invention or innovation. Inthis study the new inventions were online transaction platforms, namely,Automated Teller Machines (ATM), Internet banking, mobile banking and creditapproval process as they are used in the retail banking industry.
Two research communities, cognitive engineering andinformation systems, have considered how attitudes toward technology influencereliance and use but have done so independently. The CE community hasexaminedthe compatibility between technology, task needs, and context as influencingusers’ acceptance ofautomation. They have shown that attitudes, such as trustin automation, play important roles in user reliance and acceptance (Lee andSee 2004; Muir 1987). Inappropriate levels of trust can lead to automationmisuse and disuse— corresponding to inappropriately high and low levels ofreliance, respectively (Parasuraman and Riley 1997). Operators’ trust andrelationship with technology often progress through several stages as theyadapt to a new system, from initial exposure to the innovation, to the adoptiondecision, and later to decision confirmation(Rogers 1995). As such, automationacceptance changes over time (Davis et al. 1989; Karahanna et al.
1999). Inthis context, the terms adoption and acceptance have similar meanings, butadoption has a slightly broader connotation. Adoption goes beyond acceptance toaddress patterns of reliance and dependence. These insights highlight the needfor a dynamic model of automation adoption that considers short- and long-termuse of automation. The Information System community has developed one ofthe most broadly used models of acceptance: TAM (Davis 1989; Davis et al.
1989).In automation system research, TAM is considered to be the most widelyused and robust model to predict the employees individual adoption &performance of a new technology (Venkatesh and Davis, 1996; Venkatesh andDavis, 2000; Venkatesh andBala, 2008; Yusoff et al., 2009). Using TAM as atheoretical base, this study has hypothesized and tested an integrated model toexplain various factors affecting employee’sperformance and usage of automatedbanking systems in Commercial Bank of Ceylon. TAM posits perceived usefulness (PU) andperceived ease of use (PEOU) as the main determinants of the attitude to use,which,in turn, predicts behavioral intention (BI) to use and actual system use (Daviset al.,1989). PU measures thedegree that operators believe a technology will help perform a job, while PEOUmeasures the perceived utility of the effort to use the automation (Davis etal.
, 1989). As such, TAM has been used toassess user acceptance in a variety of domains, consistently explaining thevariability in usage intentions and use behavior. TAM has demonstrated promisein providing quantitative measures of relationships between the externalvariables determining users’ perceptions and the perceptions influencingattitudes and intentions. As such, many researchers have used this frameworkand have added new constructs and relationships to describe user acceptance. Figure 2.1:Technology Acceptance Model 2.4.
1 Perceived Ease of Use (PEOU) as an Indicatorof Technological Acceptance Davis (1989) defined perceived ease-of-use as the degree towhich a person believes that using a particular system would be free of effort.Venkatesh et al., (2000) further explained that perceived ease of use ordifficulty of using technology is expected to have an important influence overthe users? decisions to adopt or reject a new technology. Users believe that agiven application is useful but they may, at the same time, believe that thetechnology is too difficult to use and that the performance benefits of usageare outweighed by the effort of using the technology.2.4.2 PerceivedUsefulness (PU) as an Indicator of Technological Acceptance Perceived Usefulness was defined as the degree to which a personbelieves that using a particular system would enhance his or her jobperformance (Davis, 1989). People tend to use or not to use a technology to theextent they believe it will help them perform their job better.
Specifically,the link between perceptions of usefulness and attitude toward using a newtechnology has shown strong relationship with performance (Davis et al., 1989).Given these strong results, it could be concluded that an individual’s attitudetoward using a technology in the workplace reflects instrumentality andintrinsic motivation to use technology. This study also aimed to measure the EPof the banking contest with regard to the commercial Bank of Ceylon Plc. Most Banks offices have their own performance evaluationprocedures depending on the job specifications of the employees. Rajkumar(2002) defined employee performanceas the degree of accomplishment of a taskthat makes up an individual’s job. The employee performanceassessment is importantas it provides information for managerial decisions on compensation, promotion,and training as well as a basis for improving performance or recommendingtermination (Rajkumar, 2002). Generally, the organization sets up a list ofobjectives for the employees to complete within a designated time frame andthey become the criteria for effective job performance.
In relation to thestatement, Goldstein (1988) mentioned that the measurement of employeeperformanceplays an important role in information systems research. Awell-constructed performance measure can be used to evaluate effectiveness ofthe personnel using the information technology systems or to measure the impactof changes to the organization. Therefore, in meeting the rapid changes in technology,the independent variables measured in this study used the updated version ofGoldstein (1988). However, the EP of the respondents was measured on theelements of technical skills and communication skills only as they are morerelated to the job title of the respondents.
In this situation researcher use this model to study theemployee’s perceived performance (perceived usefulness & perceived ease ofuse) towards the automated systems & process. However it can be seen thatvery few studies have focused on understanding the factors impacting employeeperception towards technology in banking especially in emerging economies. Evenseveral studies were conducted to measures the employee’s perceived performancetowards automation process; there is a research gap about how this automatedbanking system affect the performance of employees in Sri Lankan bankingindustry.Try to fulfill in this gap, researcher has try to answers thesub objectives by analyzing several variables.