Comparing total productivity through effiency and effectiveness in two Iranian banks
The objective of this study is to compare the productivity level of both private and government banks in Iran based on their effectiveness and efficiency as well as their total productivity and partial productivity. The subjects used in this research were Mellat Bank (private) and Melli Bank (govern...
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| Format: | Thesis |
| Language: | English |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://eprints.utm.my/id/eprint/101554/1/ParastooRoghanianGhazviniPFM2014.pdf http://eprints.utm.my/id/eprint/101554/ http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:80638 |
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| Summary: | The objective of this study is to compare the productivity level of both private and government banks in Iran based on their effectiveness and efficiency as well as their total productivity and partial productivity. The subjects used in this research were Mellat Bank (private) and Melli Bank (government). In order to obtain substantial findings, a sequential mixed method was applied for this research. Firstly, the Modified Delphi Method; a qualitative approach was conducted upon 20 top managers from each bank. In this phase, the determinants of productivity consist of input, output and outcome as the main criteria. This is further divided into: labour, capital, and deposit as the sub-criteria of input; investment and partnership, as well as loans and advances as the sub-criteria of output; and customer satisfaction, job satisfaction and profits as the sub-criteria of outcome. On a micro level, labour is further sub-categorised into the number of employees, education level, experience and personnel cost; capital is further divided into IT capital and Non IT capital; and deposit is further sub-categorised into several accounts namely current, saving, and investment. As such, a three-stage Productivity Estimation Model for Mellat Bank and Melli Bank was formed. The second phase of the research is the quantitative approach in which the Fuzzy AHP method was used. In order to obtain the weights from Fuzzy AHP method, questionnaires were distributed to the same 20 top managers from each bank. Furthermore, the secondary data from annual reports were used to derive these determinants: effectiveness, efficiency, total productivity and partial productivity. Finally, it appears that both banks (Melli Bank and Mellat Bank) are located in the Golden Quadrant where the efficiency level of Mellat Bank is more than that of Melli Bank (1.17 as compared to 1.02) but the effectiveness level of Mellat Bank (0.77) is less than that of Melli Bank (0.84). In addition, total productivity level of Mellat Bank has been computed to be 0.9 while for Melli Bank it is 0.86. With regards to the partial productivity level the capital productivity of Melli Bank is slightly more thant that of Mellat Bank (0.77 as compared to 0.74) but the labor and deposit productivity of Mellat Bank are higher than that of Melli Bank with1.17 and 0.77 respectively. Suggestions have been made for managers and also academic researchers to further this study. |
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