ADMAS UNIVERSITY

COLLEGE OF DISTANCES

Department of EDPM

Center: Axum

ASSESSMENT OF SERIVES DELIVERY SYSTEM IN COMMERCAL BANK OF

ETHIOPIA (IN CASE OF REHAMY BERACH)

Prepared by: Girmay weldu Gebremariam

Idno: BAEDPM 100412

Term: two Year: three

Program: Degree

A student Research paper submitted in partial

fulfillment of requirement for Bachelor of .Art (B.A)
degree in department of education planning and
management.

Axum, Tigray, Ethiopia

 July, 2023

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ACKNOWLEDGEMENT
First and most, I would like to praise God for his great support and for helping me to finish this paper.

Secondly, to extend my hurtful thanks to employees of commercial bank of Ethiopia for allowing me to
conduct my research and providing me with all necessary information and their friendly cooperation. Last
but not least, I want to thank my family, friends and all those who have contributed with their valuable
ideas for the successful completion of this paper.

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ABSTRACT
This study would aim to assess the service delivering system of commercial bank of Ethiopia in Remhay
branch,.

The main objective of the study would also to assess the service provision of commercial bank and to
come up with the possible solution to be applied for the existing problems. During these assessments the
researcher had used both sources of data collected from primary and secondary by considering different
relevant variables. In addition to obtain relevant information some methods of data collection were
through questionnaire also census method were be used. Finally, this study would expect to create
awareness towards the service delivery system of commercial bank of Ethiopia in Remhay branch.

The target populations of the study were employees of the organization. Therefore, to accurate
information the researcher used censes survey in order to get relevant data of the organization.

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Table of Contents Page
ACKNOWLEDGEMENT ......................................................................................................................................... i

ABSTRACT................................................................................................................................................................ ii

CHAPTER ONE .......................................................................................................................................................1

1. INTRODUCTION ................................................................................................................................................1

1.1 Background of the study .....................................................................................................................................1

1.2. Statement of the problem ...................................................................................................................................1

1.3. Objectives of the study.......................................................................................................................................2

1.3.1 General objectives ............................................................................................................................................2

1.3.2. Specific objectives ..........................................................................................................................................2

1.4. Significance of the study ....................................................................................................................................2

1.5. Scope of the study ..............................................................................................................................................3

1.6. Limitation of the study .......................................................................................................................................3

1.7 organization of paper ..........................................................................................................................................4

CHAPTER TWO ......................................................................................................................................................5

2. REVIEW OF RELATED LITERATURE ............................................................................................................5

2.1. Definitions and concepts of service ...................................................................................................................5

2.2 Types of service ..................................................................................................................................................5

2.3. Retail banking services ......................................................................................................................................6

2.4. The characteristics of service .............................................................................................................................6

2.5. Service design and development ........................................................................................................................7

2.6. The role of technology in banking industry .......................................................................................................8

2.7. Standardization of service ..................................................................................................................................8

2.8. Assessing service quality ...................................................................................................................................9

2.9 Improvement of value delivery system ...............................................................................................................9

2.10 Service quality in service organization .............................................................................................................9

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2.11 The customer perceived service quality ..........................................................................................................10

2.12. Other factors that could affect the service......................................................................................................10

2.13. Customer satisfaction .....................................................................................................................................11

2.14. Determination of customer satisfaction .........................................................................................................11

2.15.Service delivery system ..................................................................................................................................11

2.16 The relationship between service organizations with its customer .................................................................11

2.17. Duration of service delivery ...........................................................................................................................11

2.18 Culture diversification and service delivery ...................................................................................................11

CHAPTER THREE ................................................................................................................................................12

3.1 RESEARCH DESIGN ......................................................................................................................................12

3.2. Population of the study ....................................................................................................................................12

3.3 Sampling Technique .........................................................................................................................................12

3.4. Data type and source ........................................................................................................................................12

3.5 Data collection tools .........................................................................................................................................12

3.6. Data Analysis and Interpretation......................................................................................................................12

CHAPTER FOUR...................................................................................................................................................13

4. DATA ANALYSIS AND INTERPRETATION ................................................................................................13

4.1 Interpretation and analysis of employee’s response..........................................................................................13

4.2 INTERPRETATION AND ANALYSIS OF CUSTOMER RESPONSE.........................................................18

CHAPTER FIVE ....................................................................................................................................................23

5 .CONCULUTION AND RECOMMENDATION ...............................................................................................23

5.1. Summary ..........................................................................................................................................................23

5.2. Conclusion .......................................................................................................................................................23

5.3. Recommendation .............................................................................................................................................23

REFERENCE..........................................................................................................................................................25

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 LIST OF TABLE

Table 4.1 Biographical data of employees

Table 4.2 Factor that affect your organization in terms of speedy delivery of the service

Table 4.3 What measurement the bank takes to alleviate (reduce) waiting time.

4.5. What type of equipment observed in the bank?

Table 4.6 The reason makes commercial bank of Ethiopia unique from other banks

Table 4.7 the overall performance of banks service delivery

Table 4.8 Measuring service quality in the organization

Table 4.9: - Factor that influence the service of commercial bank of Ethiopia

Table 4.2 The kind of service usually used by the customer

Table 4.3 Reason that makes customers to use commercial bank of Ethiopia

4.4. Satisfaction level of customer about clarity of information

Table 4.5.Interest of staff on individually” treating” customers

Table 4.6 common problem of the company

Table 4.7. Does the bank service are quick

Table 4.8.The reason why commercial bank of Ethiopia not serves its customer quickly

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 CHAPTER ONE
1. INTRODUCTION
1.1 Background of the study
Now a day’s one of the big issues in recent year has been a growth of phenomenal at a service in the
world. Service is growing even faster in the world economy making up quarter of the value of
international trade (kotler, 2006).

The service sectors contribute the major portion of a domestic market in developed nation. In developing
countries too, the contribution of service sector (which comprises like trading, banking, insurance and
other financial service) has been growing rapidly marketing.

According to Philip kotler (2003), among those industries who are engaged in service delivering activity,
the banking.

Industries are playing a major role. The bank industry gets new client who opens a checking and saving
account. Ethiopia which is one of developing country has been shown tremendous improvement in service
sector to change the features of economy among other banking sector on selected size of country due to
political problem, government bureaucracy.

Bank service delivery system in Ethiopian case like other nation the activity of service delivery system
occur by providing different service to other customer such as loan, checking account ,saving account and
transfer. In recent year by modifying some past problem by using different instant delivery the service,
that means using code the branch(security number) to reduce the waiting time of the customer. But other
system would be their own drawback such as lack of skilled manager, lack of enough amount of capital to
loan and some lack of technological advancement.

1.2. Statement of the problem

According to Sharma (2003), today’s service delivery system is important for all organizations whether
small or big sector. But most organization today do not understand how to manage service delivery
system, particularly in banking sector is difficult than measuring in quality of manufacturing goods.

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Service delivery system is challenging and depends on many factors that cannot be controlled by the
service provider on careful inspection and dimensions of service delivery system.

A major focus rests in component of human interaction in service delivery system especially, in
commercial bank of Ethiopia on service delivery practice may face some problem that affect the
successful of service delivery system. The problem may, include lack of commitment, and lack of
relationship between employees and their employer. This problem can be hinder the effective way of the
delivery system of the bank therefore this problem can be alleviated or reduced by committing the
employees in their working areas and creating good relationship with their bosses.

Based on the above problem statement.

 What factor influence the service delivery system of commercial bank of Ethiopia in Remhay
branch?
 What criteria do the bank uses to measure service quality?
 What is the average waiting time the service in the bank?
 What is the competitive advantage of the bank regarding the service delivery system (when we
compare with other banks)?
1.3. Objectives of the study
1.3.1 General objectives
 To assess the service delivery system of commercial bank of Ethiopia in Remhay branch
1.3.2. Specific objectives
 To identify the different technological advancement that were the company to deliver the service
 To identify the factor that were the banks delivery system
 To identify the criteria that the bank would use to measure service quality
 To assess the average waiting time of the bank
 To identify the service of commercial bank what makes a unique

1.4. Significance of the study

While one researcher would have significance improvement for the service delivery system of the
country, it must have information to alleviate the shortage and drawback of the organization, the

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 reason why this study would be assessed the service delivery system in commercial bank of
Ethiopia in Remhay branch.
Generally, this study would have the following significance:-
 It would gave insight for further study
 It would present relevant suggestion on gap observed
 It would gave active service delivery system to customer
 To minimize average waiting time to customer when they use the service delivery system.
 To encourage commitment of employees by providing good relationship with their bosses

1.5. Scope of the study

This study would delimitate on the activity of one bank which consequent to time constraint on the
duration of investigation. Therefore, the study would focus on service delivery in commercial bank of
Ethiopia in Remhay branch. Accordingly; the study would try to convert the number of customer service
time, customer handling method and technological advancement.

The scope would undertake in terms of customer satisfaction based on:-

 Quality
 Waiting time
 Treatment of customer
 The number of customer

In terms of technological advantage

 Custodial service
 Credit control

1.6. Limitation of the study

The researcher expects different constraints that would influence the accuracy and reliability of the
outcomes. The following are some information where presented below:-

 It is difficult to make generalize the banks delivery system due to subjective assessments and
responses

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  The study would use probability sampling techniques, especially simple random sampling and
censes survey were used. Because individuals are randomly drawn from the homogenous type of
population so, the study includes some selected employees and customers.

Some constraints or limitations when I conduct a research data or information, the following listed
below:-

 Lack of access to data

 Shortage of time
 Lack of support(Money, Moral and the community)

1.7 organization of paper

This research paper comprises of five chapters. The first chapter deals about introduction such as
background of the study, statement of the problem , research question, objective of the study , scope of the
study , significance of the study, limitation of the study and organization of the study. Chapter two deal
with related review literature. Chapter three deal with

Research methodology. Chapter four deal data analysis and interpretation while the last chapter deals
about conclusion and recommendations.

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 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

According to Kotler (2003), Service as an activity that has a very long history, however, it’s only within
30 years that it has been marked out for special attention .All organizations offer service in some degree or
other, however, a growing number can accurately be described as service organizations for such
organization.

A service is a result of applying human or mechanical effort to people or objects. Service involves a deed,
a performance or an effort that cannot be physically possessed (Maketing, 2001, p: 345)

Service requires an operating and delivery system in order to function that system should be designed in
such a way as to offer effective customer service through an efficiently operated process.
2.1. Definitions and concepts of service
According to Charles W. Lamb and Carl Mc Daniel (2001, p: 344), It is a marketing process described in
some for all types of products, whether they are goods and services.
According to them service have some unique characteristics that distinguish them from goods and
marketing strategies need to be adjusted for these characteristics.

Service is deeds, processes and performance. These definitions give a clue about the nature of service as
processed rather than product. (Zeithmal, 2006).

According to zenithal defines service to include all economic activities whose output is not physical
products or constructions is generally consumed at the time it is produced and provides added value in
terms of connivance, amusement ,timeless, comfort ,or healthy that are essentially intangible concerns of
its first purchaser.

Generally, an organization that delivers the service of a key important to both the customer it serves and
employer it represents to customer.

2.2 Types of service

According to Locke (2002), Service divided in to four distinct groups:-

 Service industries and companies

 Service product
 Customer service
 Delivered service

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 Service industries and companies:-Those industries and companies typically classified within sector
whose core product is a service.
 Service as a product:-wide ranges of Intangible product offering that customer value and pay for in a
market place.
 Customer service:-Service that is provided in support of companies core product.
 Delivered Service:-The value of a service provides the benefit and customers receive from using a
service.
2.3. Retail banking services
According to Bingham JR (1998), retail banking refers to the types of banking operation in which banks
undergo transaction directly with customers rather than corporation or other banks. The service offered
include saving account, checking account and Mortgage.
 Saving account:-Accounts maintained by retail financial institutions that pay interest but cannot
be used directly as money(e.g. checking account)
 Checking account:-refers to transactional account where by a customer can withdraw money or
pay money using check
 Mortgage:-is the pledging of property to a lender as a security for a mortgage loan while a
mortgage lender, other conditions that interest will be returned to the owner of the asset. When
the terms of mortgage have been satisfied or performed.

2.4. The characteristics of service

The qualities of service can be divided in to two major parts and two implied parts; the major parts are:-

A. Intangibility
B. Simultaneity

The two implied qualities are:-

i. Perishables
ii. Heterogeneity
A.Intangibility:-The characteristic of service that it cannot be seen, felt, tested or touched in the same
manner that you can sense tangible goods. It is most significance quality of the service.
Service quality evaluation cannot be made before and sometimes after purchasing a service unlike
goods, customers can make a choice and evaluate their quality before committing to purchasing it.

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B.Simultaneously:-Described as characteristics of service where by a customer does not only receive the
service but participants in service process as well as in production process. Goods are produced and
consumed at the same time. So, simultaneity means that, because consumer must present during the
production (delivery of the service).
The two implied qualities are:-
i. Perishable: -This characteristics of the service means that it cannot be stored, inventoried.
Once produced it has to be consumed. This implication of characteristics it is demand for most
service. (Sharma Bs international marketing, 1975).
ii. Heterogeneity:-Means that services tend to be less standard and uniform than goods.(CarelMc
Daniel,2001,p:346).Employees delivering the service becomes the service in the eyes of the
customer, the implication is that insuring consistent service quality challenging and depend on
many factor that cannot be controlled by the supplier.

2.5. Service design and development

According to kotler (2003), defines that products that are designed and introduced through the steps in
structured planning framework have a greater like hood of ultimate success than those not developed
within a framework. The fact that services are intangible makes it even more imperative for new service
development system to have four basic characteristics.

It must be objective not subjective

 It must be precise not vague

 It must be fact driven not opinion driven
 It must be methodological not philosophical

Often new service are introduced on bases of managers and employees subjective opinion about what the
service should be and whether they will succeed rather than an objective design incorporating data about
customer perception. New market design process may be imprecise in defining the nature of service
concept. Because service are produced and consumed simultaneously and often involve interaction
between employees and customers. Employees are frequently the service provider or at least they perform
or deliver the service and their involvement in choosing which new service to develop and how these
service should be designed and implemented can be very beneficial because customer often actively
participate in service delivery they too should be involved in new service development process.

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2.6. The role of technology in banking industry

According to William Stevenson (2005, OM, 8th edition) Technology will continues to be a focus but it
will gradually become embedded in banking business. In future the business model will be technology and
marketing applied to finance. According to him technology has tremendously stimulated expansion of
banking network and range of offered service. Online electronics banking, mobile banking and internet
banking are few.

Technology has been one of stepping stone of recent financial sector reforms aimed at increasing the
speed and reliability of financial operation and initiatives to strengthen the banking sector. Technology has
facilitated the introduction of new delivery channel in the form of net banking, mobile banking and others.
Banks are increasingly interconnecting their computer system not only across branches in their cities but
also to other geographic location with high speed network infrastructure and setting up local area network
and wide area network and connecting them to the internet.

Furthermore, banking institutions should adopt the relevant technology to enhance their delivery capacity
to improve speed and seamless customer access to banking service through the wide range of delivery
channel aimed at reducing operating cost and providing convenience to customer. But, now the banking
service in recent embraced a gesture of goodwill and open for the way for the way for current business
sector.

2.7. Standardization of service

Service companies often experiences difficulty in setting standards to match or exceed customer
expectation partly doing the marketing operation department with co- work together.

According to Philip kotler (2003),”Creating service stands that address customer expectations is not
common, not practice in service organizations”. The translation of customer expectation in to specific
service quality standards depend on degree to which tasks and behaviors to be performed can be
standardized on routine. Some executives and managers believe that service cannot be standardized that
customization is essential for providing high quality service.

Standardization of service can be taking whether accomplished by technology or by improvements in

work process. It is important to recognize that standardization does not mean that service is performed in
rigid mechanically(IBAM).Generally, companies that have been successful in delivering consistently high
service quality are noted for establishing formal standard in providing service. Service such as accounting
and consulting professionals, provide customized and individualized service. Standardizing of the task is
perceived as being impersonal, inadequate and in the customer interest.

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2.8. Assessing service quality
According to Lamb and hair Mc(2002,marketing),determining what makes a quality service is not easy
and the different between service organization ,means that there is no set of factors which can be classified
to produce recognized standard leisure service, financial service ,educational and medical service will all
be judge on vastly different grounds. Service cover such a broad spectrum of activities ranking from the
highly tangible to the highly intangible, that makes universal regulation of quality whatever the service is
quality based on customer perception.

2.9 Improvement of value delivery system

Value delivery system consists of the entire process right from the time a customer has expressed a need
to the time that customer receive the requires service or products.

According to Philip kotler (2003),

The value delivery system should be constructed efficiently so as to exceed the expectation of customers
the amount of information employees receive about how well or poorly performed. The advantage of
feedback is that helps employees to understand less of their performance and contribute their overall
knowledge about the work.

2.10 Service quality in service organization

An acceptable outcome is an excellent service process creates distinct and sustainable competitive edge .

 Measurements of service quality in organization

 Fast delivery service
 Use updated technological advancement
 Meet customer expectation
 Commitment of employees

According to Lamb and Hair Mc Daniel (2002), defines service quality as a form of attitude representing a
long run overall evaluation of the service received. Rising from the perspectives that the service quality
perceived by the customer may be different from the quality of service actually delivered by service
provider as studies says.

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According to Gronroos (2000) because of complexity of characteristics most service, their quality has to
be complex too, as compared to quality of the goods. Customer satisfaction on the other hand is a broader
concept and is made up of other traditional factor including the perceived service quality.

Service quality as outcomes quality, interaction, and physical environment quality according to Locke
(1996).

 Outcome quality:-it is based on the result of service delivered

 Interaction quality:-based on the process involved
 Physical environment quality:-depend on the place or the environment of the service on
countered

2.11 The customer perceived service quality

Customer perceived service quality is the customer own perception of service based on different factors
contributing to service from the process to the final outcomes.

According to Philip kotler (2003),”Quality is what customer perceives”. Customer buying service
considers everything that contributes to the process and the final outcomes in making their assessment of
actual service experience it the customer perceived service quality. Customer is not one dimensional in
judgment, because a lot of factors influence service quality. In case of goods, the outcomes of the result of
the process is transferred to customer while in which the service whether ranging from high touch to
discretely used continuous service (IBAM).

2.12. Other factors that could affect the service

 The attitude of other customer consuming the service can positively or negatively affect a
customer.
 The way customer receive the service also influence his/her view of quality of service. The way
he/her experiences the simultaneous production and consumption of service is quality dimension.
 The quality of service classified in to two parts based on how customer receive the service
and what customer satisfied about the quality of service :-
i. Technical quality:-what customer receive and how he/she receive the outcome of the
process
ii. Functional quality:-how the encounter is taken care of and how the service provider
functions(Philip Kotler, marketingmgmt. ,2003,11thed)

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2.13. Customer satisfaction
Customer satisfaction defies whether the buyer is satisfied after purchase depend on the offers
performance in relation to the buyer expectation .Satisfaction and dissatisfaction is a measure often
evaluation of product or service ability to meet customer need or expectation.

2.14. Determination of customer satisfaction

Customer satisfaction is a measure of many factors from the customer expectations to the actual
experiences (Lamb, Hair, mc Daniel, marketing 2002, 7th ed).

2.15.Service delivery system

Service delivery answer the question like how is the service currently deliver and number of distribution
sites, the nature of the service both influence and shaped by distribution strategy. A key question does a
firm currently requires customer to be indirect physical contact with its person, equipment and facility to
answer the nature of the service(Hutt, Michael D. Business mgmt,2006,4thed) edition).

2.16 The relationship between service organizations with its customer

In service both household and institutional purchaser may receive on a counting basis. This offer a way of
categorizing service based on the nature of the relationship and the delivery. The service organization
enter into membership with its customer with telephone subscription banking and other service deliverable
to customer is continuous (Philip kottler marketing mgmt., 2003, 11th edition).

2.17. Duration of service delivery

The amount of time it takes to receive ranges from just few minutes for simple financial transaction. The
service delivery depends on not the customer must be presents throughout the service delivery.

2.18 Culture diversification and service delivery

Culture defined as a behavior peculiar to homosapians together with motional objects used as integral part
of its behavior, specifically culture consists of language, ideas, customs, belief, code and etc. The concept
of culture is not really whether the culture not really weather the culture is real or observation. Varieties of
cultural diversification tends are relevant to increasing.(Sharma B.s ,International marketing,1995).

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 CHAPTER THREE
3.1 RESEARCH DESIGN
The researcher were used descriptive type of research, such as tabulation and percentage to obtain the intended
information ,Because of this type of research helps the researcher to collect the necessary data and detail
description about the situation of risk management at the target commercial bank of Ethiopia Remhay branch.

3.2. Population of the study

The target populations of the study were all employees of the organization. The total employee of the
organization is 29.

3.3 Sampling Technique

To conduct the study the researcher were used census sampling technique, because it removes personal
judgments and provides unbiased sample, besides this each element have equal chance of being selected
as a sample.

3.4. Data type and source

The methodologies of data collection constitute both primary and secondary data collection method.
Primary data include questionnaire to get accurate data and secondary source of data collection include
internet, journals and other written materials of the organization.

3.5 Data collection tools

To collect the necessary data, the researcher were used both primary and secondary sources. The primary
source was employees of the bank with and secondary sources of data are books magazines and different
review literature.

3.6. Data Analysis and Interpretation

Data analysis is a process of to look for the pattern and relation among the group, which conducted by
using table, because of clearly to interpret the analysis. The collected data were used processed, analyzed
and interpreted by using some statically measures.

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 CHAPTER FOUR
4. DATA ANALYSIS AND INTERPRETATION
4.1 Interpretation and analysis of employee’s response
In this chapter the presentation or analysis and interpretation of data are collected from respondents
through questionnaires, employees were selected out of 29 questionnaires distributed to employees of the
bank 29 questionnaires were collected.

Table 4.1 Biographical data of employees

Respondents

No Item In no In %

Gender Male 16 55.17%

Female 13 4 4 . 8 3 %

Total 29 100%
Educational level
Certificate - -

Diploma 2 6.9%

First degree 27 93.1%

Second degree and - -

above

Total 29 100%

Year of experience Less than 2 years - -

2-8 years 29 100%

9-15 years -

16-21 years _ -

Above 25 years _ -

Total 29 100%

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Source own survey.2020

 According to information presented in the above table, the data analysis shows that majority
16(55.17%) are male employees work in the organization and 13(44.83%) are female are work in
the organization. This deviation shows since male and female employees work in the organization
but the organization give more attention or emphasis to male employees.
 Since the organization employees educational level is good most of employees of organization
that means 2(6.9%) of employees of organization has diploma and the remaining 27(93.1%) of
employees of organization has BA degree this shows the educational background of employees is
better to serve the customer of the organization in good manner.
 As mentioned in the above table most of employees in the organization 29 (100%), are 2-8 year of
experience and working in the organization. This shows that most of bank employees in the
organization were experienced and knowledgeable for their activities
Table 4.2 Factor that affect your organization in terms of speedy delivery of the service

No Item In No In%

A. Largeness of customer 10 34.48

B. poor management 6 20.69

C. Lack of commitment 12 41.38

D. Lack of unit y between worker s 1 3.45

E.other - -

Total: 29 100%

Source own survey 2020

According to table 4.2, most employees agree that 12 (41.38%) believe that lack of commitment and
around 10(34.48%) of largeness of customer affect the speedy delivery of the service. The concept is that
commitment is a very essential to an organization to deliver the service (especially in banking
sector).Since service is the core element of any service user therefore in banking sector not only
commitment is affect the speedy delivery system but also different constraints like lack of providing

14
satisfaction or the waiting time of customer are also the main effect of an organization to reduce this the
organization must good relationship with their managers or bosses.

Table 4.3 What measurement the bank takes to alleviate (reduce) waiting time.

No Item In No In %

A. By expanding good communication between the 4 13.8%

employees

B. Committing the employees in their work environment 5 17.24%

C. By strengthen good management in the organization 20 68.96%

D. Other... - -

Total 29 100%

Source own survey 2020

According to table 4.3, 4(13.8%), of respondents respond by expanding good communication between
employees, 5(17.24%) respondents answer committing the employees in their work environment and the
remaining 20(68.96%) of employees in the organization responds by strengthen good management in the
organization. This leads to conclude that the employee of commercial bank of Ethiopia used to alleviate
(reduce) the waiting time, they believe that strengthen good management in the to organization.

4.4 Commercial bank of Ethiopia working better technological equipment

No Item In No I n %

A. Yes 18 62.07%

B. No 11 37.93%

Total 29 100%

Source own survey 2020

In the first table i.e. (4.4), indicate18 (62.07%) of respondents answer commercial bank of Ethiopia works
on better technological equipment and 11(37.93%) of respondents that commercial bank of Ethiopia does
not work with better technological equipment. In our country different banks sector available either
government or private sectors as we compare the technological usage commercial bank of Ethiopia has a
better improvement to use technology. However, in terms of availability the CBE has many different

15
branches. When I come to the concept technology is one of the center points of an organization especially
in banking sectors. If CBE use the technology while having many different branches CBE can be better
than other banks sector.

4.5. What type of equipment observed in the bank?

In No Item In No In %

A. Storing customer data properly using high technological software 3 10.34

B.Better connection network between in all branches 18 62.07%

A. H i gh s p e e d c o m m u ni c a t i o n o f t h e b a n k s i n a l l 8 27.59%

branches

D.Other - -

Total 29 100%

Source own survey 2020

In the above table 4.5 18(62.07%) of respondents who agrees that the bank work on better connection of
network between in all branches.8(27.59%)of them indicate the bank use high speed communication of
the banks in all branches. Therefore, majority of employees of the organization agrees better connection
facilities are observed in the bank.

Table 4.6 The reason makes commercial bank of Ethiopia unique from other banks

No Item In No In%

A. Deliver the service quality 15 51.72%

B. Employee are committed for their job 7 24.14%

C. The bank use satisfactory technological advancement 7 24.14%

D. Other - -

Total 29 100%

Source own survey 2020

According to table 4.6 shows that 15(51.72%) of respondents respond commercial bank of Ethiopia is
unique due to its quick delivery service than other banks industry. And 7(24.14%) of respondents answer
that the factor that makes commercial bank of Ethiopia unique is employees are committed for their job

16
and the bank use satisfactory technological advancement. As indicated in literature review service is
produced and consumed simultaneously and often involves interaction between employees and customers.
In general commercial banks of Ethiopia are applicable on the above mentioned in literature review.

Table 4.7 the overall performance of banks service delivery

No Item In No In %

A. Very good 8 27.59%

B.Good 21 72.41%

C.Fair - -

D.Poor - -

E.Other - -

- -

Total 29 100%

Source own survey 2020

As indicated in the above table 4.7 8(27.59%) of respondents answer very good the overall performance of
the bank 21(72.41%) respondents respond the service system is good. Therefore from the above data I can
conclude the overall performance of the bank delivery is good. As indicated in literature review any
service render organizations have responsibility to deliver the service quality to a level that will enable it
to retain and develops customer.

Table 4.8 Measuring service quality in the organization

No Item In No In %

A. Fast delivery service 8 28%

B. Using updated technology - -

C. To meet the expectation of customers 21 72%

D. Other - -

Total 29 100%

Source own survey 2020

Regarding in the above table 8(28%) of respondents respond the banks strength is fast delivery service and
the remaining 21(72%) of respondents respond the strength is to meet the expectation of customer. This

17
 leads to employees of commercial bank of Ethiopia measure to meet the expectation of customers. So they
render better customer service.

Table 4.9: - Factor that influence the service of commercial bank of Ethiopia

No Item In No In %

A. Ethiopian telecommunication corporation network problem 19 66%

B Interruption of electric light 8 28%

C. Awareness problem of customer about the technology of the bank 2 6%

D. Other -

Total 29 100%

Source own survey 2020

According table 4.9 mentioned 19(66%) of employees respond Ethiopian telecommunication corporation
network problem affect the service of the bank. 8(28%) of respondents respond interruption of electric
power affect the service delivery system. And the remaining 2(6%) of employees respond awareness
problem of customer about the technology of the bank may affect the bank delivery system. Therefore,
most respondents agree the bank network directly affect the service sector as an agreement forming good
relationship with EELPA and ETC to achieve the customer expectation or need.

4.2 INTERPRETATION AND ANALYSIS OF CUSTOMER RESPONSE

Table 4.2 The kind of service usually used by the customer

No Item In No I n %

A. transferring 10 34.48%

B. Saving 8 27.59%

C. Withdrawal 11 37.93%

D. Other - -

Total 29 100%

Source own survey 2020

18
On the above table 4.2 8(27.59%), of respondents using saving service while, 11(37.93%) respondents use
withdrawal for the banks service. In general most customers of the bank use saving and withdrawal
service of the bank.

Table 4.3 Reason that makes customers to use commercial bank of Ethiopia

No Item In No In %

A. It is near to your work place 5 17.24%

B.The bank serves faster than other banks 14 48.28%

C.It uses better technological advancement related to other banks 10 34.48

D. Other - -

Total 29 100%

Source own survey 2020

Table 4.3 shows that the reason for 5(17.24%) ,respondents to use commercial bank is its near to their
work place while ,others 14(48.28%) respondents respond the reason is the bank serves faster than other
banks and the remaining 10(34.48%) of respondent respond the reason is better technological
advancement related to other bank. As indicated in literature review banking industries deal with the
challenges the new economy passes. Accessing the bank industry to customer may strengthen the
customer satisfaction.

4.4. Satisfaction level of customer about clarity of information

No Item In No In %

A. Very satisfied 5 17.24%

B. Satisfied 17 58.62%

C . N e u t r a l 3 10.35%

D. Dissatisfied 4 13.79%

E. Other - -

Total 29 100%

Source own survey 2020

19
Based on the above table the majority of the customer 22(75.86%) respond that they are satisfied the
clearly of information provided by the bank and 3(10.35%) neutral for the clearly of information and the
remaining 4(13.79%) of respondents dissatisfied by clearly of information of the bank. According to the
literature review satisfaction and dissatisfaction is measure or evaluation of products or service ability to
meet customer need or expectation. I n general, in commercial bank of Ethiopia as indicated in the above
review applicable to customer.

Table 4.5.Interest of staff on individually” treating” customers

No Item In No In%

A. Yes 20 68.96%

B. No 9 31.04%

Total 29 100%

Source own survey 2020

In the above table 4.5 stated that 9(31.04%) of respondents respond the staff did not treated individually
them as a valued customer of the bank and the remaining 20(68.96%) of them says they got individualized
attention/treatment from the staff. This indicates most of respondents get individual treatment or
customized service from the staff except few respondents.

Table 4.6 common problem of the company

No Item In No In %

If your answer is “Yes “for question” 6 “What do you think is the most
common problem of the bank

A. Speed of the service delivery 6 20.69%

B. Courtesy of performance of the employee that affect 15 51.72%

the service

C. Lack of punctuality 8 27.59%

D.Other - -

Total 29 100 %

Source own survey 2020

According to table 4.6 ,6(20.69%) of respondents says the most problem lies on the speed of service
delivery and the most common problem of the bank 15(51.72%) lies on courtesy of performance of

20
employees that affect the service ,and the remaining 8(27.59) of respondents agreed on lack of punctuality
of employees .

This shows that the bank does not adopt the relevant technology to enhance their delivery capacity and
ensure speed of delivery .Since there is a problem in the courtesy of performance of employees which
arises not giving clear information ,not treating customers as a valued customers and not actively perform
in serving the customers. Generally, In any banking industry the problem may happen during service
delivering time , the problem may, speedy delivery of the bank .lack of punctuality of employees ,and
employees commitment to serve its customer therefore , to alleviate or reduce this problem by posting or
introducing the company(banks) mission and vision statement to its employees is better way of reducing
this problem.

Table 4.7. Does the bank service are quick

No Item In No In %

A. Yes 25 86.2 1%

B. No 4 13.79%

Total 29 100%

Source own survey 2020

According to table 4.7 25(86.21%) of respondents says commercial bank of Ethiopia serve them quickly
and the remaining 4(13.79%) of respondents answered they did not get any quick service from the bank.
Generally, since customer need quick service delivery system the bank therefore, in CBE this type of
service not as much better than other similar banking sector so, the CBE must use to render this better
service delivery system one of the most effective way is punctuality of employee in their working areas
and their commitment the main thing to improve the quick service quality.

Table 4.8.The reason why commercial bank of Ethiopia not serves its customer quickly

N o Item In No In %

A. Negligence of employees 17 58.62

%

B. Lack of technological advancement 5 17.24%

C. Lack of ability of overall management in serving customers 7 24.14%

D. Other - -

Total 29 100%

Source own survey 2020

21
In table 4.8 shows that 17(58.62%) of respondents respond negligence of employees affect the bank
service delivery system and 7(17.24%) of respondents respond lack of ability of management in serving
its customers. Generally, in CBE the most constraints and alleviated reason that the bank is not serving its
customer is negligence of employees in their working areas. This negligence can be proved by using better
management orientation and controlling mechanism is the way CBE serve its customer satisfaction or
expectation

22
 CHAPTER FIVE
5 .CONCULUTION AND RECOMMENDATION
5.1. Summary
 Majority 55.17 % of the respondents were male and the remaining 44.83% were female.
 Majority 93.1% of the respondents were degree holders.
 Most of the respondents 68.96% said the bank used strength good management in the bank.
 Majority 62.07% said the bank working better technological equipment.
 Majority 72.41% of the respondents said the bank service delivery is good.

5.2. Conclusion

The study conclude the following points

 The result of the study shows, the bank is making a different make to develop its service quality
technologically but this movement is not enough to make the bank unique and competitive with
other banks.
 Power interruption and connection is a major problem raised from (EELPA &ETC) affect the
effectiveness of delivery system
 Fast delivery of the bank is also problem which rised from lack of technologically advancement,
management and treatment of employees to the customer.
 Lack employees and management the ability in adapting and applying in practical manner.
 The main and important thing is lack of commitment that the employees of the organization affect
the delivery system of the bank.
 The result of the study shows, even if the bank is trying to introduce different technology
advancement to improve its delivery system is not satisfying because of technologically
improvement are not satisfy customer perception.

5.3. Recommendation
Based on the data collected and analyzed, the research forwards the following recommendations:-

 In order to improve the quality of service, the organization or the bank have to introduce better
technologically advanced method of service delivery system which would make the customer satisfied
and cope with their perception of service quality.

23
 The organization or the bank should adapt relevant working method to improve its delivery system fast
and reliable.
 To deliver the service on time EELPA &ETC adjust its working system.
 In order to deliver service timely to alleviate the waiting time the organization must use generator to
avoid power interruption.
To sustain the delivery system of the bank, the organization must hire professional employees and
to adopt what the bank use technologically advanced machine to deliver the service system to the
customer.
 To deliver the service timely the management of the organization plays a major role because by
assigning the employee what they specializing job, this is one of the important thing to deliver the
service on time.

24
REFERENCE
 Backhaus klous,(2005),International marketing,11th edition
 Bhatmushaq ,(2005),service marketing ,4th edition
 Christian Gronroos ,(2005), service marketing and marketing ,3rd edition
 Hamdy A. Taha ,(1997) ,service marketing ,8th edition and Hatt Michael D.,(1987) Business
marketing management 4th edition
 Frank G. Bingaam JR (1998) ,Business marketing management 4th edition
 Jain sub hash C. (2001) ,International marketing , 8th edition
 Lamb ,Hair Mc Daniel ,(2002) ,Marketing, 7th edition
 Philip kotler ,(2003) Marketing management ,11th edition
 Sharma B.S ,(1995) ,International marketing , 2th edition
 Zeithamalvalarie ,(2008) ,service marketing , 4th edition

25
 APPENDIX

ADMAS UNIVERSITY
COLLEGE OF DISTANCES

Department: EDPM
This questionnaire to be filled by employee of commercial bank of Ethiopia in rehamy branch.

Dear respondents,

The questionnaire is prepared to undertake a research on assessment of service delivery system of

commercial bank of Ethiopia. You are kindly requested to fill the questionnaire, your response are kept
confidential and there used only for this research purpose.

We are grateful to your cooperation.

NOTE: - No need to write your name.

: - Please make a circle for a given alternatives

BIOGRAPHICAL DATA OF EMPLOYEES

1. Gender A. male B. female

2. Educational level A. grade 8th complete

B .Grade com10th complete

C. grade 12th complete

D. Certificate

E. Diploma

F. 1st degree

G. 2nd degree & above

3.Year of experience: - A. Less than 2 years

B. 2-8years

C. 9-15 years

D. 16-21 Years

26
E. above 25 years

4. What factor affect the speed delivery of the service?

A. Largeness of customers B. Poor management C. Lack of commitment

D. Lack of unity between workers E. Other…………………………………………….

5. What measurement the bank take to alleviate or reduce waiting time?

A. By expanding good communication between employees

B.Commiting the employees in their work environment

C. By strengthen good management in the organization

D. Other…………………………………………………………………………………….

6.Do you think commercial bank of Ethiopia working better technological equipment?

A. Yes B. No

7. If your answer is Yes for question number 6what type of equipment observed in the bank?

A. Storing customer data properly using high technological software

B. Better connection of network between all branches

C. High speed communication of the banks in all branches

D. Other……………………………………………………………………………………

8. What is your reason makes commercial bank of Ethiopia unique from other banks?

A. Deliver the service quickly B. Employees are committed for their job

C. The bank use satisfactory technological advancement

D. Other……………………………………………………………………………….

9. How do you evaluate the overall performance of the banks service delivery?

A. Very good B. Good C. Fair D. Poor

E. Other…………………………………………………………………………….

10.How do you evaluate the overall performance of the banks service delivery when compared other
similar banks industry as employee of an organization?

27
A. Better B. Similar C. Less D. Other……………………………….

11. Usually what kind of service do you use in the bank?

A. Transferring B. Saving C. Withdrawal D. Other…………………...

12.What is the reason that makes customers to use commercial bank of Ethiopia?

A. It is near to your work place B. The bank serves faster than other banks

C. It uses better technological advanced related to other banks

D. Other……………………………………………………………………………….

13. How satisfied are you with the clarity of information provided by the staff of the organization?

A. Very satisfied B. Satisfied C. Neutral D. Dissatisfied

D. E. Other……………………………………………………………………………

14. Did the staff show interest in you as a valued customer?

A. Yes B. No

15. Do you face any problem regarding the service delivery of the bank when you visit the bank?

A. Yes B. No

16. If your answer is Yes for question number 5 what do you think the common problem of the bank?

A. Speedy of delivery system B. Courtesy of performance of employees that affect the service
C. Lack of punctuality

D. Other………………………………………………………………………………………….

17. Do you think commercial bank of Ethiopia serve you quickly?

A. Yes B. No

18. I f your answer is No for question number 7 what do you think is the reason?

A. Negligence of employees B. Lack of technology advancement

C. Lack of ability of overall management in serving its customer

D. Other……………………………………………………………………………………….

28