IntroductionBranch performance assessment is a major consideration for most banks so as to take decisions related to improvement in terms of bank’s overall growth. This assessment cannot be based on a simple profit / loss metrics as it may provide undue advantage to an urban located branch but disregard a slow, however potentially good branch. Thus branch profitability cannot be the only standard of measuring the branch performance. This is where a new dimension of measuring the service quality of the internal and external customers of branch holds importance.
However, due to the constraint of collecting data from external customers, a measurement of the service quality perceptions of the banks’ internal customers has been the feature of the article ‘An internal customer service quality data envelopment analysis model for bank branches’ by Andreas C. Soteriou and Yiannos Stavrinides. Andreas Soteriou is an eminent author of many other books and journal articles pertaining to service quality in banks such as A Robust Optimization Approach for Improving Service Quality. (July 2000). Manufacturing & Service Operations Management, Volume 2, Issue 3; Benchmarks of the Efficiency of Bank Branches.
(March 1999). Interfaces, Volume 29, Issue 3 etc. The article has articulately described the significance as well as the various nuances of discussion on service quality measurement in bank’s branches. A quantitative approach towards the same, by way of using a mathematical model to form the basis of the paper and then graduating to the integration of this mathematical model towards actual service quality assessments of bank branches makes this article highly valid and well researched. This is further corroborated by the primary data collected with clear description of the variable used supported by graphical explanations of the theories undertaken and the findings extracted.
This article fundamentally focussed not as a basic performance assessment tool, but an overall analysis of the correlation between outputs vis-a-vis inputs administered and to act as a benchmarking technique as already stated. The suggestions and findings of this research article can very well guide the branches towards improvement of service quality and inspire them to aid this with many other such models so as to develop a more comprehensive efficiency management tool. This paper is an attempt to appropriately capture the essence and dynamism of the above article so as to provide a consolidated view on the understanding as derived from the same.
This paper would summarise the contents of the article as put forth by the authors, elaborating their viewpoint and perspective towards the various indicators of branch efficiency. Also an evaluation of the article findings and recommendations would be taken up supported by an assessment of the strengths and weakness or issues pertaining to the finding illustrated in the article.
Critical ReviewThe authors have very articulately depicted the validity of the DEA model to be applied in the context of measuring the service quality of the bank branches. DEA model actually aids benchmarking the performance of the bank against various indicators. These indictors in terms of outputs produced relative to the inputs provided forms the basis of DEA model.