Employee commitment in retail banking: identifying and exploring hidden dangers

Through literature review and empirical research conducted with employees of a large retail bank, three different types of employee commitment (internalised commitment, identification commitment and compliance commitment) are defined and explored. It is argued that high levels of internalised commitment are essential for the successful implementation of the emerging relationship banking strategy. The research reveals the worrying finding that employees show unexpectedly low levels of internalised commitment, coupled with higher than expected levels of compliance commitment. Combined with respondents low intention to leave, the case bank seems to have many employees who, while reluctant to leave, seem at best unable, and at worst unwilling to embrace new change initiatives and who consequently show low levels of identification with the values of the organisation. Implications for internal marketing and relationship banking are discussed.

[1]  J. P. Near,et al.  ORGANIZATIONAL CITIZENSHIP BEHAVIOR: ITS NATURE AND ANTECEDENTS , 1983 .

[2]  B. Schneider The service organization: Climate is crucial , 1980 .

[3]  D. Llewellyn Banking in the 21st Century: The Transformation of an Industry , 1996 .

[4]  Roderick D. Iverson,et al.  The role of employee commitment and trust in service relationships , 1996 .

[5]  John Haywood-Farmer,et al.  A Conceptual Model of Service Quality , 1988 .

[6]  P. Butler,et al.  Relationship intermediaries: business advisers in the small firm‐bank relationship , 1998 .

[7]  Bruce Buchanan BUILDING ORGANIZATIONAL COMMITMENT: THE SOCIALIZATION OF MANAGERS IN WORK ORGANIZATIONS , 1974 .

[8]  Relationship Banking: Choice and Control by the Multinational Firm , 1992 .

[9]  S. Fournier,et al.  Preventing the premature death of relationship marketing. , 1998, Harvard business review.

[10]  J. Arndt The Political Economy Paradigm: Foundation for Theory Building in Marketing , 1983 .

[11]  P. Crosby Quality Without Tears , 1984 .

[12]  A. Caruana,et al.  The effect of internal marketing on organisational commitment among retail bank managers , 1998 .

[13]  John A. Czepiel Service encounters and service relationships: Implications for research , 1990 .

[14]  T. S. Bateman,et al.  A longitudinal analysis of the antecedents of organizational commitment. , 1984, Academy of Management journal. Academy of Management.

[15]  Richard M. Steers,et al.  Organizational commitment, job satisfaction, and turnover among psychiatric technicians. , 1974 .

[16]  H. Becker Notes on the Concept of Commitment , 1960, American Journal of Sociology.

[17]  Richard M. Steers,et al.  Major influences on employee attendance: A process model. , 1978 .

[18]  Christian Grönroos,et al.  Relationship marketing: The strategy continuum , 1995 .

[19]  J. Revell,et al.  The British Financial System. , 1974 .

[20]  David A. J. Axson A Return to Managing Customer Relationships , 1992 .

[21]  A. Parasuraman,et al.  Communication and Control Processes in the Delivery of Service Quality , 1988, Journal of Marketing.

[22]  Gardener Edward,et al.  The New Retail Banking Revolution , 1999 .

[23]  G. Prendergast,et al.  Consumer adoption of self-service technologies in retail banking: Is expert opinion supported by consumer research? , 1993 .

[24]  Mary Jo Bitner,et al.  Building service relationships: It’s all about promises , 1995 .

[25]  P. Morrow Concept Redundancy in Organizational Research: The Case of Work Commitment , 1983 .

[26]  C. Grönroos Relationship approach to marketing in service contexts: The marketing and organizational behavior interface , 1990 .

[27]  David Ballantyne,et al.  Internal networks for internal marketing , 1997 .

[28]  Shankar Ganesan Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[29]  N. Goldfield,et al.  Alternative delivery systems , 1987 .

[30]  A. Wilkinson,et al.  Financial Services - Every which Way but Quality? , 1997 .

[31]  M. Baker Bank Marketing – Myth or Reality? , 1993 .

[32]  Nicole Coviello,et al.  Towards a paradigm shift in marketing? An examination of current marketing practices , 1997 .

[33]  A. Parasuraman,et al.  A Conceptual Model of Service Quality and Its Implications for Future Research , 1985 .

[34]  Pervaiz K. Ahmed,et al.  The scope of internal marketing: Defining the boundary between marketing and human resource management , 1993 .

[35]  Amitai Etzioni,et al.  A Comparative Analysis of Complex Organizations. , 1962 .

[36]  Barry Howcroft,et al.  Contemporary Issues in UK Bank Delivery Systems , 1992 .

[37]  Aidan O'driscoll,et al.  Reconsidering the Management of Marketing , 1996 .

[38]  D. Cowell The marketing of services , 1984 .

[39]  C. Grönroos Value‐driven relational marketing: From products to resources and competencies , 1997 .

[40]  L. Berry Relationship marketing of services—growing interest, emerging perspectives , 1995 .

[41]  J. Mathieu,et al.  A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment , 1990 .

[42]  Jennifer A. Chatman,et al.  Organizational commitment and psychological attachment: The effects of compliance, identification, and internalization on prosocial behavior. , 1986 .

[43]  John L. Cotton,et al.  Employee Turnover: A Meta-Analysis and Review with Implications for Research , 1986 .

[44]  H. Kelman Compliance, identification, and internalization three processes of attitude change , 1958 .

[45]  F. Buttle Relationship Marketing: Theory and Practice , 1996 .

[46]  L. Porter,et al.  The Measurement of Organizational Commitment. , 1979 .

[47]  D. Burton Tellers into Sellers , 1991 .

[48]  F. Webster The Changing Role of Marketing in the Corporation , 1992 .

[49]  Chris W. Clegg,et al.  Psychology of employee lateness, absence, and turnover: A methodological critique and an empirical study. , 1983 .