The Impact of Effective Performance Management Practices on Employee Commitment and Quality of Customer Service in the Private Banking Sector of Pakistan

Abstract

Pakistan’s banking industry is robust yet it faces the challenging task of sustaining growth and making profit in times of increased economic instability and stagnant growth. Banks need to make optimal use of the resources available to them in order to sustain competitive advantage. Pakistan’s services industry is lagging quite behind its international counterparts with regard to quality of customer service provided. Being ’customer oriented’ is a phrase commonly quoted yet rarely put to practice. In order to deliver good quality customers care it is necessary for banks to put in place effective performance management practices so employees become committed and motivated. Committed employees deliver good quality of customer service. This study attempts to illustrate how banks can implement performance management practices in an effective manner in order to gain employee commitment and customer loyalty. A sample of 100 customers from various private banks of Islamabad was questioned regarding their level of satisfaction with level of service being provided to them. Also a sample of 60 employees from different banks was surveyed to seek their views about bank’s performance