The Effectiveness Of Communication Practices With The .

Asian Business Review, Volume 3, Number 3/2013 (Issue 5)ISSN 2304-2613 (Print); ISSN 2305-8730 (Online)0This communication includes all of the organizationendeavors at direct selling, such as salespeople “spiel”,descriptive brochures, leaflet, prospectus, telephonecallback, follow-up service calls, and so on. It alsoincludes advertising for the purpose of attractingcustomers in one hand but in other hand, to befamiliarizing organization and its activities to thecustomers. The authority of the banks can giveadvertisement in radio, television, newspaper,magazine, internet so that the customers may getinformation about the banks and its activities, products,services and so on. Sometimes, the authority of thebanks may participate in various national andinternational trade fairs that will help the bank’s toestablish direct relationship with the customers.III) Personal Communication: All communications arenot operational that occurs in the organization.Indeed, this communication has been occurred mostof the cases in the organization to fulfill the personalsatisfaction. This communication affects employeeattitudes and attitudes affect employee performance.Thus, the authority of an organization should createa very congenial environment where each and everyemployee may freely exchange his or her views withothers. As a result, the employees can provide theirfull concentration to establish the good relationshipwith the customers. Therefore, the organization cansell more products or services to the customers thatwill help the organization to earn more profit.In addition to these three types of communication, thereare other types of communication in banking businesssuch as oral or written communication, formal orinformal communication, upward, downward andparallel communication. The organization is required alltypes of communication for attracting the customerstowards the products and services of the organization.Factors of Effective Communication in Banking BusinessThe following factors are required to make thecommunication more effective in banking business(Rahman, Mia and Hossian, 2005 a). Definite Purpose Study the Customer Good Idea or Thoughts Proper Transmission of Message Personal Touch Mutual Understanding Awareness of the need for effective communication Provision for feedback Selection of a good Channel Active ListeningNecessity of Two-way Communication in Banking BusinessNow -a- days, there are many reasons for which twoway communication is badly of needed in bankingbusiness. These are as follows: To complete the communication process with moreeffectively and efficiently by the active involvementof sender and receiver. To implement the direction. To create good communication environmentbetween employees and customers. To develop good relationship with the customers. To acknowledge information. To know the reaction of customers. To verify the accuracy of information.The process of two-way communication can be shown inthe following figure:MessageBarriersDevelop anIdeaSteps: 1Encode2TransmitBridge of ReceiveMeaning34Decode5AcceptUse67Feedback for two-way communicationFigure-1: Two-Way Communication Process.[Source: Ivanchief et. al. 1993, “Business Communication: Global Perspective”, 3rd edition, IRWIN, P. 40.]Barriers to Effective CommunicationEffective communication is highly essential to convincediversified customers and also to make the businessmore successful. But there are some barriers in bankingbusiness that are creating obstacles to make effectivenessCopyright 2012, Asian Business Consortium ABRcommunication with the customers (Rahman, Mia, andHossain, 2005 b). These are as follows:i) Organizational Barriers: The organizational barriersmay arise in the communication process because ofthe following reasons.33 P a g e

Asian Business Review, Volume 3, Number 3/2013 (Issue 5)ISSN 2304-2613 (Print); ISSN 2305-8730 (Online)Complex organizational structureExcessive layering of administrationLack of effective policiesConservativeness of ibilityIndividual Barriers: The individual barriers mayarise in the communication process because of thefollowing causes: Personality Wrong Explanation Individual Conflict Fear Pre-idea Insincerity and lack of confidenceLanguage/ Semantic Barriers: It arises in thecommunication process because of the followingreasons: Use of vague or ambiguous word Use of local language Use of different languages Use of technical wordsBarriers due to Status: It happens in thecommunication process due to the followingreasons: Status/ Position Mental StateBarriers due to resistance to change: It occurs due tothe following reasons in the communication process: Following the ‘ old one’ Lack of attention Own interpretation or assumptionOther Barriers: It occurs in the communicationprocess because of the following reasons: Geographical Barrier Lack of Harmony Faulty Expression Cultural Difference Absence of Feedback ii)iii)iv)v)vi)5 RESEARCH FINDINGS AND ANALYSISThe researchers have used structured questionnaire tofind out the opinion of bankers and customers regardingthe business communication practices by the EasternBank Limited and Mutual Trust Bank Limited with theircustomers.A. Questionnaire for BankersThe following questions have been asked by theresearchers to the Bankers of the Eastern Bank Limitedand the Mutual Trust Bank Limited for finding thebusiness communication practices with their customers:Copyright 2012, Asian Business Consortium ABR0Table: 1QuestionChoicesScoresEBL MTBL252500PercentageEBL MTBL100% 100%00% 00%Do youYescommunicate withNothe customerseffectively?The above table shows that 100 percent employees inboth the banks have provided positive answer and 0(Zero) percent employees in both the banks haveprovided negative answer. It means that the employeesin both the banks have got the opportunity tocommunicate effectively with the customers.Table: 2QuestionChoicesScoresPercentageEBL MTBL EBL MTBL1510 60% 40%Do you think thatSatisfacthe workingtoryenvironment inFairly1015 40% 60%this Bank isSatisfactoryfavorable whenDissatis0000% 00%you communicate factorywith thecustomers?The above table shows that 60 percent employees inEastern Bank Limited and 40 percent employees inMutual Trust Bank Limited are satisfied with theworking environment of the banks while they arecommunicating with the customers. The table also showsthat 40 percent employees in Eastern Bank Limited and60 percent employees in Mutual Trust Bank Limited arefairly satisfied with the working environment of thebanks while they are communicating with the customers.But 0 (Zero) percent employees are dissatisfied with theworking environment in both the banks while they arecommunicating with the customers. Although anyemployee has not shown any dissatisfaction regardingthe working environment of both the banks but theauthority of both the banks should take necessaryinitiatives to make the working environment morecongenial for the employees while they arecommunicating with the customers because 100 percentemployees of both the banks are not satisfied with theworking environment while they are communicatingwith the customers.Table: 3QuestionChoicesScoresPercentageEBL MTBL EBL MTBLWhat type ofBusiness 1015 40% 60%customers mainlymentransact in this Bank? Service 1010 40% 40%HoldersOthers5020% 00%34 P a g e

Asian Business Review, Volume 3, Number 3/2013 (Issue 5)ISSN 2304-2613 (Print); ISSN 2305-8730 (Online)The above table shows that 40 percent customers arebusinessmen, 40 percent customers are service holders and20 percent customers are other professions in the EasternBank Limited. Whereas, 60 percent customers arebusinessmen, 40 percent customers are service holders and0 (Zero) percent customers are other professions in theMutual Trust Bank Limited. These statistics indicate that theemployees of Eastern Bank Limited are taken morepressures than the employees of the Mutual Trust BankLimited to deal with the customers because the customersof the Eastern Bank Limited are more diversified than thecustomers of the Mutual Trust Bank Limited.Table: 4QuestionChoicesWhen do yourespond to thecustomers’ letter?ScoresPercentageEBL MTBL EBL MTBL2515 100% 60%Within3 daysWithin0000% 00%a weekWithin01000% 40%15 daysMore than 0000% 00%15 daysThe above question is relating to the duration of respondingthe customers’ letter. All of the respondents in the EasternBank Limited answered that they have responded to thecustomers’ letter within 3 days. Whereas, only 60 percent ofthe respondents in the Mutual Trust Bank Limitedanswered that they have responded to the customers’ letterwithin 3 days and rest of the 40 percent respondentsanswered that they have responded to the customers’ letterwithin 15 days. But fortunately, no respondent answeredthat they responded to the customers’ letter more than 15days. It indicates that the employees of both the banks aremore concerned to provide quick response to thecustomers’ letter.Table: 5QuestionChoicesScoresPercentageEBL MTBL EBL MTBL015 00% 60%How do youFace- torespond to thefacecustomers’ letter? conversationPhone call 5020% 00%E-mail5520% 20%Letter10040% 00%Service5520% 20%Quality UnitThe above question is relating to the way of respondingto the customers’ letter. In this regard, zero (0) percentemployees used face to face conversation, 20 percentemployees used phone call, 20 percent employees usede-mail, 40 percent employees used letter and 20 percentemployees used service quality unit to respond to thecustomers’ letter in the Eastern Bank Limited. Whereas,Copyright 2012, Asian Business Consortium ABR0in the Mutual Trust Bank Limited, 60 percent employeesused face to face conversation 0 (zero) percent employeesused phone call, 20 percent employees used e-mail, o(zero) percent employees used letter and 20 percentemployees used service quality unit to respond to thecustomers’ letter in the Mutual Trust Bank Limited.These statistics indicate that the authority of the EasternBank Limited should take necessary initiatives so thatthe employees of this bank can respond to the customers’letter through face-to-face conversation. These statisticsalso indicate that the authority of the Mutual Trust BankLimited should take necessary initiatives so that theemployees of this bank can respond to the customers’letter through phone call and letter.Table: 6QuestionChoicesScoresEBL MTBL15255050PercentageEBL MTBL60% 100%20% 00%20% 00%Do you think thatYesthe Bank followsNoeffectiveNocommunicationideasystems tocommunicate withthe customerssuccessfully?The above table shows that 60 percent employeesanswered yes, 20 percent employees’ answered no, and20 percent employees answered no idea about thecommunication systems which are followed by thebank’s employee to communicate with the customers’successfully. Whereas, in the Mutual Trust Bank Limited,100 percent employees responded that the bank followseffective communication systems to successfullycommunicate with the customers. These statisticsindicate that the employees of the Mutual Trust BankLimited are more satisfied with the bank’scommunication systems.Table: 7QuestionWhat are thelimitations ofthe Bank toeffectivelycommunicatewith thecustomers?ChoicesScoresPercentageEBL MTBL EBL MTBL1510 60% 40%Lack ofeffectiveness& efficiencyLack of5020% 00%organizeddatabaseLack of010 00% 40%moderntechnologyOthers5520% 20%The above table shows that 60 percent employeesresponded that they are suffering from the effectiveness& efficiency problem, 20 employees responded that theyare suffering from organized database problem, 0 (zero)35 P a g e

Asian Business Review, Volume 3, Number 3/2013 (Issue 5)ISSN 2304-2613 (Print); ISSN 2305-8730 (Online)percent employees responded that they are not sufferingfrom modern technology problem and 20 percentemployees responded that they are suffering from otherproblems while they are going to effectivelycommunicate with the customers in the Eastern BankLimited. Whereas, in the Mutual Trust Bank Limited, 40percent employees responded that they are sufferingfrom the effectiveness & efficiency problem, 0 (zero)percent employees responded that they are not sufferingfrom organized database problem, 40 percent employeesresponded that they are suffering from moderntechnology problem, and 20 percent employeesresponded that they are suffering from other problemswhile they are going to effectively communicate with thecustomers. These statistics indicate that the authority ofboth the banks should take necessary initiatives toarrange extensive training & development programs forenhancing the effectiveness & efficiency of the employeesso that the employees would be able to successfullycommunicate with the customers.Table: 8QuestionChoicesScoresPercentageEBL MTBL EBL MTBL1010 40% 40%When theAllow thecustomerscustomer’s toare givenvent his/heranyangercomplaint Apology for the 5020% 00%regarding misunderstandinthe Bank’sgcommunicat Respond to the 10040% 00%ion systems,problemthen how do immediatelyyou handle State the solution 015 00% 60%thepositivelycomplaint?In the Eastern Bank Limited, 40 percent employeesresponded that they allow the customer’s to vent his orher anger, 20 percent employees responded that theyapology to the customers for the misunderstanding, 40percent employees responded that they take immediateaction to solve the complaint and 0 (zero) percentemployees responded that they do not state the solutionto the customers’ positively. Whereas, in the MutualTrust Bank Limited, 40 percent employees respondedthat they allow the customer’s to vent his or her anger, 0( zero) percent employees responded that they do notapology for the misunderstanding they do not take quickaction to solve the problem and 60 percent employeesresponded that they state the solution positively to thecustomers. These statistics indicate that the employees ofEastern Bank Limited are more serious to resolve thecustomer’s complaint than the employees of the MutualTrust Bank Limited.Copyright 2012, Asian Business Consortium ABR0B. Questionnaire for CustomersThe researchers have also used structured questionnaireto find out the customers opinion regarding the businesscommunication practices of the Eastern Bank Limitedand the Mutual Trust Bank Limited with their customers.Table: 9QuestionScoresPercentageEBL MTBL EBL MTBLWhat is the level TK. 15,000 – 1020 40% 80%of your monthly TK. 19,999income?TK. 20,000 – 10540% 20%TK.24,999TK.25,000 –0000% 00%TK. 29,999TK. 30,0005020% 00%and aboveThe above table shows that 40 percent customers income–level is TK. 15,000-TK. 19,999, 40 percent customersincome-level is TK. 20,000-TK. 24, 999, 0 percentcustomers income-level is TK. 25,000-TK. 29,999 and 20percent customers income-level is TK. 30,000 and abovein the Eastern Bank Limited. Whereas, in the MutualTrust Bank Limited, 80 percent customers income-level isTK. 15,000-TK. 19,999, 20 percent customers income-levelis TK. 20,000-TK. 24,999, 0 ( zero) percent customersincome-level is TK. 25,000-TK. 29,999 and TK. 30,000 andabove respectively. These statistics indicate that thecustomers of the Eastern Bank Limited income-level arebetter than the customers of the Mutual Trust BankLimited. Thus, the authority of the Mutual Trust BankLimited should develop a good communication with thecustomers that will help them to attract the customerswhose income-level is more standard.Table: 10QuestionChoicesChoicesScoresPercentageEBL MTBL EBL MTBLHow frequently Everyday5020% 00%do you2 – 5 times 010 00% 40%communicate in a weekwith the Bank?Once in10540% 20%a weekLess than 1010 40% 40%once ina weekThe above table shows that in the Eastern Bank Limited ,only 20 percent customers answered every day, 40percent customers answered once in a week, 40 percentanswered less than once in a week and 0 ( zero) percentanswered 2-5 times in a week to communicate with thebank. Whereas in the Mutual Trust Bank Limited, 40percent customers answered 2-5 times in a week, 20percent answered once in a week, 40 percent answeredless than once in a week and 0 ( zero) percent customersanswered every day to communicate with the bank.36 P a g e

Asian Business Review, Volume 3, Number 3/2013 (Issue 5)ISSN 2304-2613 (Print); ISSN 2305-8730 (Online)Table: 11QuestionScoresPercentageEBL MTBL EBL MTBLAre you satisfied Satisfied 1510 60% 40%with the employees’ Fairly1015 40% 60%behavior in thisSatisfiedBank?Dissa0000% 00%tisfiedThe above table shows that 60 percent customers aresatisfied, 40 percent customers are fairly satisfied, and 0(zero) percent customers are dissatisfied with thebehavior of employees in the Eastern Bank Limited.Whereas, 40 percent customers are satisfied, 60 percentcustomers are fairly satisfied, and 0 percent customersare dissatisfied with the behavior of employees in theMutual Trust Bank Limited. These statistics indicate thatthe customers of the Eastern Bank Limited are moresatisfied than the customers of the Mutual Trust BankLimited. As a result, the authority of the Mutual TrustBank Limited should take necessary initiatives to arrangeextensive training & development programs so that theemployees can change their attitudes and behavior foreffectively communicating with the customers.Table: 12QuestionWhat types ofaccount do youhave in thisBank?ChoicesChoicesScoresPercentageEBL MTBL EBL MTBLSavings FDR5520%20%Others0000%00%The researchers asked to the customers about the types ofaccount that they are maintaining with the banks. In case of theEastern Bank Limited, 40 percent customers answered SavingsAccount, 20 percent customers answered Current Account, 20percent customers answered DPS, 20 percent customersanswered FDR, and 0 ( zero) percent customers answeredOthers Account. Whereas, in the Mutual Trust Bank Limited,40 percent customers answered Savings Account, 20 percentcustomers answered Current Account, 20 percent customersanswered DPS, 20 percent customers answered FDR, and 0(zero) percent customers answered Others Account.Table: 13QuestionChoicesScores PercentageEBL MTBL EBL MTBLWhat is your opinion Satisfied 1010 40% 40%about theFairly510 20% 40%communicationSatisfiedsystem in this Bank? Dissatisfied 10540% 20%In response to the above question, 40 percent customersanswered satisfied, 20 percent answered fairly satisfied,and 40 percent answered dissatisfied in the Eastern BankCopyright 2012, Asian Business Consortium ABR0Limited. On the contrary, in the Mutual Trust BankLimited, 40 percent customers answered satisfied, 40percent answered fairly satisfied, and 20 percentcustomers answered dissatisfied. The above statisticsindicate that the customers are more dissatisfied with thecommunication system of the Eastern Bank Limited thanthe Mutual Trust Bank Limited.Table: 14QuestionChoicesScoresEBL MTBL552020PercentageEBL MTBL20% 20%80% 80%Do you face anyYestrouble in gettingNoservice from theBank?The researchers asked to the customers whether they arefacing any problem to get service from the bank. Inresponse to the above question, 20 percent answered yesand 80 percent answered no in both the banks. Since 20percent customers are replying yes in responding to theabove question so the authority of both the banks shouldtake necessary steps to overcome the problems.6 RECOMMENDATIONSBased on the findings and analysis of the study, thefollowing suggestions are recommended by the researchersto overcoming the problems relating to businesscommunication practices of Eastern Bank Limited andMutual Trust Bank Limited with the customers:i) The authority of Eastern Bank Limited and MutualTrust Bank Limited should ensure quality of worklife for the employees so that the employees canfreely exchange their views and develop their skills,knowledge, attitudes, etc. As a result, they canprovide better service to the customers.ii) The modern sophisticated technology is required toeffectively communicate with the customers. Thus,the manager of both the banks should hire andinstall sufficient modern sophisticated technology invarious branches of the bank so that the employeesof these banks can effectively and efficientlycommunicate with the customers.iii) The extensive training & development is badly ofneeded to develop employees’ skills, knowledge,attitudes, behavior, punctuality, discipline and soon. So, the authority of both the banks shouldarrange extensive training & development programsso that the employees can change their attitudes &behavior and develop their punctuality, discipline,knowledge, etc. As a result, they can behave moresmartly with the customers than past.iv) Th

Business communication is a process of flowing information occurring within the business environment with a specific legal objective. Business communication is not a new concept. But it carries some special value because it is a specialized branch of general communicat