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A study of the relationship between cultural norms and service quality in five financial institutions

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A study of the relationship between cultural norms and service quality in five financial institutions
Creator:
Kendall, Margaret G
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Language:
English
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viii, 104 leaves : ; 29 cm

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Banks and banking -- Customer services ( lcsh )
Bank employees -- Attitudes ( lcsh )
Bank employees -- Attitudes ( fast )
Banks and banking -- Customer services ( fast )
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bibliography ( marcgt )
theses ( marcgt )
non-fiction ( marcgt )

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Bibliography:
Includes bibliographical references (leaves 93-104).
General Note:
Submitted in partial fulfillment of the requirements for the degree, Master of Arts, Communication.
Statement of Responsibility:
by Margaret G. Kendall.

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University of Colorado Denver
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Auraria Library
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All applicable rights reserved by the source institution and holding location.
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30834673 ( OCLC )
ocm30834673
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LD1190.L48 1993m .K46 ( lcc )

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A STUDY OF THE RELATIONSHIP BETWEEN CULTURAL NORMS AND SERVICE QUALITY IN FIVE FINANCIAL INSTITUTIONS by Margaret G. Kendall B.A., University of Colorado, 1969 M.A.T., Colorado College, 1972 A thesis submitted to the Faculty of the Graduate School of the University of Colorado at Denver in partial fnlfiJJment of the requirements for the degree of Master of Arts Communication 1993

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This thesis for the Master of Arts degree by Margaret G. Kendall has been approved for the Department of Communication by Michael Z. Hackman

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Kendall, Margaret G. (M.A., Communication) A Study of the Relationship between Cultural Norms and Service Quality in Five Financial Institutions Thesis directed by Associate Professor Michael Z. Hackman ABSTRACT This study examined 1) the cultural norms as perceived by the employees in five financial institutions and 2) the relationship of these cultural norms to the service quality as perceived by the customers of these same five financial service organizations. The study was based on an assumption that certain types of normative behavior of the employees may influence organizational outcomes, specifically, the perception of service quality by the customers. Research findings indicated a significant relationship between norms related to personal freedom and service quality, specifically related to reliability-a subscale of service quality. However, the study did not identify a relationship between nonns related to task support, task innovation or social relationships and service quality ... m

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Additionally, supplementary findings revealed significant differences between norms related to personal freedom and human concerns and on the reliability dimension of service quality when comparing small and large financial institutions. This abstract accurately represents the content of the candidate's thesis. I recommend its publication. Signed lV "Chaei Z. Hackman

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CONTENTS CHAPTER I. INTRODUCTION . . . . . . . . . 1 The Importance of Service in Our Economy . . . 1 Service Quality and Organizational Success . . . 2 Problems with Service Quality . . . . . . 4 The Distinction between Goods and Services . . . 4 Service Quality and Internal Marketing. . . . . 6 Cw'ture . . . . . . . . . . 7 Rationale and Support for the Study . . . . . 9 sllmmaey . . . . . . . . . . 10 IT. REVIEW OF THE LITERATURE . . . . . 12 Cul.'ture . . . . . . . . . . 13 Cul.ture as an Organizational Variable . . . 16 Clim.ate . . . . . . . . . 19 Distinctions between Climate and Cul.ture . . . 20 Norm.s . . . . . . . . . . 23 v

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The Kilmann-Saxton Culture-Gap Survey . . . 25 Organizational Climate/Culture and Service Quality . 26 Service Quality . . . . . . . . 28 Unique Characteristics of the Service Sector . . 30 The Service Quality Construct . . . . . 31 Research Questions . . . . . . . . 36 Summary ................... . . . . . 37 III. METHODOLOGY . . . . . . . . 39 Description of the Research Population . . . . 40 Employee Sample . . . . . . . 40 Customer Sample 41 Prologue and Explication of the Research Questions . 42 General Explication of Methodology . . . . . 44 Overall Procedure and Research Design . . . . 45 Research Questions 1, 2, 3 and 4 . . . . . 45 Research Plan and Data Collection . . . . 4 7 Instrumentation and Measurement . . . . . 48 Data Analysis . . . . . . . . . 50 S11mmacy . . . . . . . . . . 50 Vl

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RESULTS . . . . . . . . . . . 52 Primary Analyses . . . . . . . . 54 Research Question 1 54 Research Question 2 55 Research Question 3 . . . . . . . 57 Research Question 4 . . . . . . . 58 Supplemental Analyses . . . . . . . 60 Long-term Norms and Service Quality................ 60 Small versus Large Financial Organizations . . 61 A Gender Comparison of Perceptions . . . . 63 s11mmacy . . . . . . 64 V. DISCUSSIONS, INTERPRETATIONS AND CONCLUSIONS 66 Discussion of Results . . . . . . . 68 Prim.ary" Results . . . . . . . . 68 Supplemental Results . . . . . . . 71 Implications of the Study . . . . . . . 73 Limitations of the Study . . . . . . . 76 Suggestions for Future Research ...... . . . 77 Summary . . . . . . . . . . 78 .. Vll

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APPENDIX A. Complete Cultural Norms Questionnaire . . . . 80 B. Complete Service Quality Questionnaire ....... : . . 89 REFERENCES . . . .. . . . . . . 93 Vll1

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CHAPI'ERI INTRODUCTION The primary purpose of this study was to examine 1) the cultural norms in five financial organizations as perceived by the employees and 2) the relationship of these cultural norms to the service quality as perceived by the customers of these same five service organizations. The study was basec:I on an assumption that certain types of normative behavior of the employees may influence organizational outcomes, specifically the perception of service quality by the customers. The Importance of Service in Our Economy The service sector of our economy is .in a period of revolutionary change. This process of change began in 1956 when the num ber of workers employed in the service sector of the United States exceeded those in the industrial area. "Industrial America" became "Service America" for the first time in history (Albrecht & Zemke, 1985). This trend toward service has continued and will continue into the twenty-first century (Albrecht & Zemke, 1985; Berry & 1

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Parasuraman, 1991). The service sector of the economy encompass es a broad array of different industries as well as government and non-profit organizations. In fact, services account for approximate ly three-fourths of the gross national product in the United States and other industrial nations, and for nine out of ten jobs our econo my creates (Zeithaml, Parasuraman & Berry, 1990). Service Quality and Organizational Success With this shift away from an industrial economy to a service economy, service quality becomes a central issue in determining business success. Several studies have found that perceived quality is positively correlated to profitability, productivity and market share (Parasuraman, Berry & Zeithaml, 1990; Wasmer & Bruner, 1991; Bell & Zemke, 1992). In addition to these studies, data from Profit Impact of Market Strategy (PIMS) supports the relationship between service quality and business success (Buzzell & Gale, 1987). The single most important factor affecting an organization's performance is the quality of its products and services relative to the competition. 2

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Service quality has both short-tenn and long-term results. In the short term, quality yields increased profits because of the ability to charge premium prices. PIMS reported that organiza tions which ranked in the top third on relative quality sold their products or services, on the average, at prices 5-6% higher (relative to the competition) than those in the bottom third. In the long term, superior or improved relative quality is reported as the more effective way for an organization to grow. Quality leads to both market expansion and gains in market share. As a result of the growth in volume, a superior quality organization gains scale advantage over rivals. Evidence to support this fact is that, on the average, organizations with superior quality service and products will have costs equal to those of their leading competitors (Buzzell & Gale, 1987). In addition to this evidence, studies by business economists demonstrate that organizations rated high on quality service: 1) keep customers longer-50% longer, 2) have lower sales and marketing costs-20-40% lower, 3) experience higher return on sales-7-12% higher, and 4) have better net profits-7-17% better (Bell & Zemke, 1992). 3

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Problems with Service Quality Yet, it is often reported that, in service organizations, service quality is more the exception than the rule (Zeithaml et al., 1990; Lovelock, 1991). Many service organizations struggle to maintain and improve service quality. In a Gallup survey, executives rated the importance of service and tangible product quality as the most critical challenge facing United States business organizations (Zeithaml et al., 1990). In 1987, in response to growing concerns about the quality of goods and services produced in the United States, Congress enacted the National Quality Awards Law creat ing the Malcolm Baldridge Awards to be given every year to two companies in manufacturing and small business. In 1988 and 1989, the first two years the Baldridge Awards were given, the board of judges ruled that none of the nine service companies which submitted applications rated high enough on quality to deserve an award (Heskett, Sasser & Hart, 1990). The Distinction between Goods and Services Why, at a time when services are growing more impressively than most other sectors in the economy, does service quality seem 4

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to be so difficult to achieve and is perceived as declining? At least part of the problem with achieving and maintaining service quality may be explained by the conceptual distinction between the quality of goods/product versus the quality of the service. Satisfaction with the durable good is solely determined by the performance of that durable good (Churchill & Suprenant, 1982). By contrast, services are concerned with performances, rather than objects, and service quality is more difficult to evaluate objectively than the quality of goods. In services, the core product is a performance. In most services, the employee or frontline personnel cannot be separated from the service (Berry & Parasuraman, 1991). Services have been differentiated from goods by four distinct features. These features include: 1) intangibility-the inability of services to be seen, felt, tasted or touched, 2) perishability-the inability to store services, 3) inseparability of production and consumption-services are often produced and consumed simultaneously, and 4) heterogeneity-the inability of a producer to provide consistent performance and quality with a service (Shostock, 1977; Berry, 1980; Lovelock, 1981, 1991; Webster, 1992). The unique features of services result in managerial problems for service organizations. 5

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Managers who have made the transition from manufacturing to service organizations invariably cite greater difficulty controlling quality in services as the biggest difference in managing the two sectors (Knisely, 1984). The factors these managers cite include: 1) the variability in attitude and behavior of employees, 2) the challenge of supervising many frontline employees at many differ ent service facilities, and 3) the challenge of measuring service quality. Service Quality and Internal Marketing It is generally accepted in service organizations that, since service is evaluated as a performance, it is critically important to manage the relationships between individual employees and cus tomers (Heskett, 1987). There are, however, differing views as to the most effective means to encourage people to deliver high quality service. Research suggests that there is a clear relationship be tween what happens inside the organization and how the external world perceives the organization (Jones, Steffy, & Bray, 1991). Schneider and Bowen (1985), as well as Berry (1983) and Heskett (1986), stress that employee involvement and internal marketing to 6

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employees are important factors in securing successful service operations. The research of Bowen and Schneider (1988) provides more specific data related to organizational behavior and services. They point out that task complexity and interdependence (because of customer involvement) make it difficult to specify a priori how employees will behave in the unpredictable range of circwnstances that may arise during a service encounter. Consequently, they suggest that core cultural values are particularly important sources for guiding and, perhaps, thereby controlling service employee behavior. Culture It was not until the late 1970s that the construct of organizational culture began to attract explicit and sustained research. Since that time, organizational or corporate culture has gained popularity in both the academic and managerial writings in the United States and Europe (Barney, 1986; Sackmann, 1990). Deal and Kennedy's Corporate Culture (1982) and Peters & Waterman's In Search of Excellence (1982) are examples of the commercial success of organizational culture research. 7

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The construct of culture was borrowed from cultural anthro pology that has been investigating the concept since the eighteenth century. The focus of traditional cultural anthropology was to study culture qualitatively from an ernie perspective. There is a significant debate among researchers regarding the definitions of, and the relationship between, the constructs of culture and climate, as well as the degree to which either construct can be changed or mariipulated. As a construct, culture is difficult to define, analyze and measure, and hard to manage (Schein, 1992). The culture construct does have great potential for aiding researchers, academ ics and managers to better understand organizational behavior, outcomes and organizational effectiveness (Saxton, 1987; Schneider & Gunnarson, 1990). By understanding the dynamics of culture, both researchers and practitioners can learn how to manage its potential impact on organizational processes and outcomes. In the past, academic researchers have focused on the as sumptions, values and language of culture without considering the more practical and overt manifestations that appear as the structures and strategies of a business organization (Denison, 1990). Recent findings in services marketing literature and organizational 8

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culture literature suggest that an appropriate culture/climate is key to service excellence (Schneider & Bowen, 1985; Parasuraman, 1987; Schneider, 1990; Webster, 1992). Schneider (1985) asserts that if service employees are to provide a quality experience for their customers, then the organization must first create the right climate and culture to shape employee behavior. Webster (1992), Shostock (1977), Berry (1980) and Lovelock (1981, 1991) define culture as a pattern of shared values, beliefs, the norms of behav ior, and a form of control of employees. Rationale and Support for the Study In our competitive, service-oriented society, organizations recognize that service quality is paramount to maintaining a competitive edge. Because of the importance of service quality, customer perception of frontline employees who represent the organization through. their performance must be monitored and evaluated. However, constant management is not possible because most service encounters are 1) intangible, 2) perishable, 3) inseparable from production and consumption, and 4) heterogeneous in nature (Webster, 1992). Therefore, the climate/culture of an organization 9

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becomes an important variable to help guide and support employ ees. Norms developed out ofthe culture/climateofthe organization may guide the behavior, and directly or indirectly impact the service quality. While the relationship between culture and service quality has been discussed theoretically, there is very limited empirical research which has investigated either construct individ ually or in relationship one to the other. A stronger link needs to be established between theory relative to culture and actual out comes in organizational behavior. The research objective of this study was to examine the relationship between the cultural norms in five financial organizations as perceived by employees, and the service quality as perceived by the customers of the same organizations. The literature review which follows further explicates the present study and concludes with a statement of the specific re search questions that were empirically tested in this study. Summary This first chapter has provided some general background to the research problem under investigation. It has explicated the 10

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importance of service and how service quality relates to organiza tional success. Additionally, this chapter presented how goods and services differ, why service quality is difficult to manage, how service quality relates to internal marketing, and the construct of culture/climate. Rationale for the present study and research objec tives have also been outlined. Next, Chapter II will reView the literature relevant to the research problem in greater depth and will present the four specific research questions which have been tested. Chapter III addresses the research procedure and design, sampling, instrumentation, data collection and analysis. Chapter N contains the results of the study and analyses of the data with regard to the research ques tions. Chapter V is concerned with interpretation of the results of the study and the implications of these results. Also included in Chapter V is a discussion of the problems and limitations of the study with some suggestions for future research. 11

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CHAPI'ERII REVIEW OF THE LITERATURE The primary purpose of this study was to examine the cultural norms as perceived by employees of five financial organiza tions and the relationship of these norms to the service quality as perceived by the customers of these same five financial organiza tions. In the preceding chapter, the background and rationale for the study were provided. This chapter will review relevant literature related to the research objective and will conclude with a statement of the specific research questions. The review will include literature related to the constructs of culture/climate of organizations and marketing literature related to service quality. The literature related to the construct of culture includes the definition of culture, how the culture construct relates to the elimate construct, how culture/climate relate to organizational perfor mance/outcomes, how to measure culture, specifically cultural norms. The literature related to service quality will include how 12

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services differ from goods, how to measure service quality, and the development of SERVQUAL. Culture The culture construct was adapted from cultural anthro pology by organizational researchers. Anthropology made a major contribution to the construct by recording detailed accounts of cultural phenomena, such as rites, rituals, customs, habits, cere moriies and patterns of behavior and thinking (Sackmann, 1991). The culture construct has also received attention from other disci plines, such as sociology and social psychology (Saclrmann, 1991). In the past decade, the construct has been extensively researched by academics and management practitioners. The culture construct has been rapidly incorporated into their literature. While the cultural construct offers much potential theoretically and pragmati cally, it also presents many definitional, conceptual, and method ological problems as well (Kilmann, Saxton, & Serpa, 1985; Morey & Luthans, 1985; Schein, 1985, 1992; Saxton, 1987). In the early stages of the adaptation of the culture construct into organizational literature, the concern was to describe the 13

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construct and determine a place for it in organizational research (Morey & Luthans, 1985). Cultural research has primarily focused on a desire to describe, interpret and account for difficult or different cultures rather than to explore utilitarian implications or practical benefits (Denison, 1990). From a pragmatic perspective, the culture construct provides a tool for better understanding and managing organizations and managerial processes and outcomes. Researchers and practitioners are interested in understanding the relationship between the culture construct and other organizational constructs, especially organizational performance (Wilkins & Ouchi, 1983; Denison, 1984, 1990). By better understanding the dynamics of culture, researchers and practitioners can learn how to manage its impact on orga nizational processes and outcomes. There is, however, growing evidence that studies utilizing the culture construct are problematic and inconsistent (Saxton, 1987). Organizational researchers, though conceptionalizing culture similarly, have assessed widely different elements. The elements vary in their subjectivity or objectivity, as well as their observability and availability to both researchers and organization members. 14

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Examples include behavioral norms (Kilm.ann & Saxton, 1983; Cooke & Rousseau, 1988), corporate ideologies (Martin & Siehl, 1983), unconscious assumptions (Schein, 1985), and rites and rituals (Deal & Kennedy, 1982). Despite some similarity in the conceptualization and defini tion of culture, inconsistency and confusion prevail in much of the writing on culture in organizations. Schein (1985) treats culture as unconscious assumptions and regards conscious expectations as artifacts. Cooke and Rousseau (1988), in contrast, treat culture as normative beliefs shared by members of a social unit, defining physical manifestations as artifacts. Scholars focus essentially on a preferred set of elements: unconscious assumptions (Schein, 1985), stories (Martin & Siehl, 1983), and behavioral norms (Kilm.ann et al., 1985; Cooke & Rousseau, 1988). Moreover, writers often use the term culture simultaneously to mean different things, as to define a particular social unit and to describe a specific social process (Rousseau, 1990a). In a review of organizational literature, Smircich (1983) identified three themes of research used by most organizational and management researchers. The three themes emerged from the 15

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intersection of organization theory with cultural theory. These themes are: culture and comparative management, corporate culture; and culture as a metaphor for organizations. The first two themes view culture as a variable. Researchers who pursue these items are primarily concerned with issues of control and generali zation across organizational internal or external boundaries. In the third theme, organizations are viewed as an expressive phenomena, with culture being something an organization is versus has or does (Sathe, 1985). Organizations are viewed as systems of shared knowledge (cognitive perspective), as systems of shared meaning and understandings (symbolic perspective), or as the manifestation of the mind's unconscious processes (structural and psychodynamic perspectives)(Saxton, 1987). Culture as an Organizational Variable The second research theme of corporate culture as an organi zational variable is the focus of this study. Organizations are viewed as culture-producing phenomena (Deal & Kennedy, 1982; Peters & Waterman, 1982). The focus of culture as an organiza tional variable research is on the socio-cultural qualities that 16

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develop within an organization. Smircich (1983) observes that the intent of this focus is learning how to mold, shape and change culture in ways that are consistent with managerial purposes. Schein (1989) defines corporate culture as being either official or unofficial. He suggests that an organization's official culture consists of the ideas and values expressed in such documents as mission statements and ethical codes; the unofficial culture is exhibited through actual behavior. A growing number of publications suggest that corporate culture influences an organization's performance (Sackmann, 1991). Denison (1990) showed that organizational culture has a close relationship to the effectiveness of organizations. Qualitative results from survey of behavioral measures can be a strong predictor of future financial performance of organizations. These findings concur with the results of Barney's research (1986) relating organi zational culture and sustained superior financial performance. In the literature related to corporate culture and perfor mance, performance or effectiveness has been established as an important variable (Cameron, 1986). An internal corporate culture is a possession that gives an organization a competitive edge (Bar-17

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ney, 1986). Denison (1984), in a survey comparison of thirty-four large American firms, found that companies with a culture which encourages participation and the development of adaptable work methods which link individuals to the goals of an organization have a clear competitive advantage. Kanter (1983) found that more innovations came from organizations characterized by cultures of pride and climates of success. Individuals were found to be more innovative and, therefore, more successful. Posner, Kouzes and Schmidt (1985) found, in a survey of American managers, that the strength of congruence between the values of an organization and its employees affects the quality and character of managerial commitment and the direction of energy and effort on behalf of the organization. Gordon (1985) found four factors that differentiate financially successful from less successful electric utilities organizations. The more successful had greater horizontal communication, possessed more effective internal communication, encouraged employees to air conflict and criticisms more openly, and showed greater concern for developing people. 18

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In Corporate Cultures (Deal & Kennedy, 1982) and In Search of Excellence (Peters & Waterman, 1982), a new picture of manage ment was presented. It concentrated on the behavioral side of management and organizations. There was a difference noted between successful and not-so-successful organizations; the differ ence could be accounted for by the values, norms and principles which underlay the internal organization (Denison,1990). Climate Climate has a long history in the fields of industrial and organizational psychology and organizational behavior (Reichers & Schneider, 1990). The first studies were conducted in the late 1930s by Lewin and his colleagues (Lewin, Lippitt, & White, 1939). These studies concerned the role of the leader in creating different kinds of social climates, such as authoritarian, democratic and laissez-faire. In the 1960s, climate researchers began gathering data and assessing the validity of the concept from the beginning. They did not devote time and articles to discussing definitions or elaborating all the possible nuances of climate. Early studies considered climate to be a correlate of work motivation and produc-19

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tivity (Litwin & Stringer, 1968) or salesperson success (Schneider & Bartlett, 1968, 1970). Climate is a molar concept that is indicative of the organiza tion's appropriate means to goal attainment. It is also a more specific construct that has a particular.referent, as in the climates for services, for innovation, and/or for quality (Schneider & Rent sch, 1988; Schneider & Gunnarson, 1990). Distinctions between Climate and Culture Culture and climate are monolithic and multidimensional constructs that attempt to identify the environment which affects the behavior of individuals and groups in an organization (Reichers & Schneider, 1990). Both are learned largely through the socializa tion process and the symbolic interaction with other organizational members. While culture and climate are interrelated concepts and have been used interchangeably, there are distinct and significant con ceptual differences between them. The construct of culture seems to be more inclusive and at a macro, organizational system level, while climate is a manifestation or outgrowth of an organizational 20

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culture as determined by individual perceptions (Schneider & Rentsch, 1988; Schneider, 1990). The orientation of climate is micro, individual or phenomenological (James, James, & Ashe, 1990). Culture/climate researchers also tend to emphasize different orientations in their research. Academic scholars of c\llture seek to interpret norms and value systems that give rise to policies, activi ties, norms and values (Schall, 1983; Sathe, 1985). Culture re search lacks a strong empirical background. Culture. researchers have preferred qualitative research (e.g., case studies). Research on climate, by contrast, is more quantitative. Climate researchers have preferred the use of survey techniques to case study. While the research traditions of climate and culture have taken a different approach to solving problems, some writers believe, in fact, that they address the same problem (Denison, 1990). What is currently defined as culture has been previously investigated under other labels of climate, character or ideology (Saxton, 1987). The constructs of climate/culture have overlapped in their evolution, but their development has been parallel. 21

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Glick (1985) discussed the differences between organizational climate and culture constructs and observed, ... the minor substan tive differences between culture and climate may prove to be more apparent than real" (p. 612). The distinction between culture and climate is more a matter of emphasis or degree than a true qualita tive difference in this frame of reference (James et al., 1990). In 1985, Schneider commented that, with few exceptions, researchers in organizational culture have ignored the past research on related topics, such as organizational climate. Schneider (1985, 1987) emphasized the similarity between the two constructs, and treated them jointly. Denison (1990) further expanded the assumption of similarity of the two constructs in three ways. First, both concepts focus on organizations at the level of behavioral characteristics. Second, both concepts cover a wide range from deeply-held assumptions that form the basis of a culture to actual practices and patterns of behavior rooted in those assumptions. Third, both climate/culture have a similar problem in explaining the way in which behavior characteristics of a system affect the behavior of individuals, while at the same time explaining the way in which the behavior of 22

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individuals, over time, creates the characteristics of an organiza tional system. Norms There is some convergence of opinion among many research ers that corporate culture is a shared set of key values, meanings and beliefs. A key issue in the discussion of corporate culture is how deeply embedded these shared qualities may be. The view of Kilmann et al. (1985) is that culture is manifest at three different levels of depth: 1) behavioral norms, 2) hidden assumptions, and 3) human nature. A similar view is shared by other researchers, although the levels do not correspond exactly (Dyer, 1985; Sathe, 1985; Schein, 1985, 1992). Katz and Kahn (1966, 1978) labelled these normative beliefs as "system norms." For the purpose of this study, behavioral norms were selected as the level of research. Kilmann (1984) asserts that the way to control the culture is by managing the norms. Because of its pragmatic and empirical testability, the Kilmann-Saxton Culture Gap Survey model was chosen for investigating the cultural norms of organizations in this study. While there is a lack of clarity in 23

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research about the various components of culture/climate and their dimensions, the meaning of norms as rules of behavior are relative ly clear (Sackmann, 1991). Normative beliefs are elements of culture postulated to be closely related to organizational performance and member attitude and perception (Rousseau, 1990b). Norms describe the expectations of the group for its members' behavior, verbal and non-verbal (Saxton, 1987). Members of an organizational group pressure one another to follow. the norms. If norms are violated, there is strong and immediate pressure on the offending individual to change their behavior (Kilmann et al., 1985). Norms are just below the surface of experience and are often described as the informal, unwritten rules of the game (Kilmann et al., 1985; Brightman & Sayeed, 1990). Cooke and Rousseau (1988) identified a set of normative beliefs that executives posited to be characteris tic of effective or high-performing organizations. These beliefs include norms for self-expression, achievement, cooperation and affiliation. 24

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The Kilrnann-Saxton Culture-Gap Survey The Kilmann-Saxton Culture-Gap Survey is a measurement instrument that can be used to detect the gap between what the current culture is and what it should be (Kilmann & Saxton, 1983). The instrument was developed by collecting more than 400 norms from employees in more than 25 different types of organizations. The final set of 28 norms was derived from statistical analysis of the norms that were most frequently cited in the organization studied (Kilmann et al., 1985). The Kilmann-Saxton Culture-Gap Survey (1983) assesses cultural norms in four dimensions or subscales: 1) task support, 2) task innovation, 3) social relationships, and 4) personal freedom. Task support norms relate to sharing information, helping other groups and being concerned with efficiency. Task innovation norms relate to being creative, being rewarded for creativity and doing new things. Social relationship norms relate to socializing with others in the work group and mixing friendship with business. Personal freedom norms relate to expressing oneself, exercising discretion and pleasing oneself. 25

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In addition to these four dimensions of cultural norms, the Kilmann-Saxton Culture-Gap Survey (1983) defines two indepen dent distinctions. These distinctions relate to human versus tech nical concerns and a time distinction, ranging from short term to long term. The technical/human distinction contrasts norms that guide the technical aspects of work (task support and task innova tion) with norms that guide the social and personal aspects (social relationships and personal freedom). The short-term/long-term distinction contrasts norms that fnnction on a day-to-day basis (task support and social relationships) versus norms that focus on the future of the organization (task innovation and personal free dom). Organizational Climate/Culture and Service Quality '.fhe current literature in both services marketing and organi zational culture/climate leads to the argument that an appropriate culture is one of the most important ingredients for successfully marketing services (Webster, 1992). A customer-oriented organiza tional culture is a prerequisite to excel in the increasingly competi tive marketplace (Parasuraman, 1987). 26

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The literature emphasizes the importance of service person nel in creating the service reality, in defining service quality and, ulti:rnately, contributing to customer satisfaction. Customer satis faction depends directly and most immediately on the management and monitoring of customer-personnel interactions which take place during the service encounter (Parasuraman, Zeithaml, & BetTY, 1985; Solomon, Suprenant, & Czepiel, 1985; Suprenant & Solomon, 1987). Several researchers have noted that, when considering the climate of an organization, only the dimensions of organizational climate are likely to influence, or be associated with, the constructs which should be considered (Schneider & Reichers, 1983; Glick, 1985). This framework includes the organizational climate for service, which can be defined as a set of descriptive characteristics concerning service delivery and service quality that differentiate an organization from others, and influence the service-related behav iors of the individuals in the organization. Individuals in the organization learn to understand the norms, policies and procedures through the process of organizational socialization (Schneider & Reichers, 1983). A climate for service emphasizes the i.m.por-27

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tance of a positive experience for consumers through the entire service delivery process (Schneider, 1990). This climate serves as a guide to employee norms of behavior such that management inter vention into the service sequence is unnecessary (Bowen & Schnei der, 1988; Webster, 1992). Several studies have considered the relationship between organizational climate for service and service quality (Schneider, Parkington, & Buxton, 1980; Schneider & Bowen, 1985; Bowen & Schneider, 1988). The results of these studies generally indicate a strong positive relationship between employee perception of organi zational climate and customer perception of service quality. Service Quality Service quality is a highly subjective construct that is defined primarily by the consumer of a particular individual service (Heskett et al., 1990). Service quality is the foundation for services marketing because the core product being marketed is a perfor mance. The performance of the service employee/s is the product; the performance is what the customer buys. When the product is a performance, nothing is more important than performance quality. 28

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From the customer's perspective, the proof of service is a flawless performance. The performance includes how service personnel conduct themselves, how they act, what they say, what they don't say, and their overall appearance. All these factors influence the customer's perception (Berry & Parasuraman, 1991). Service quality and consumer satisfaction became a research concern in the 1980s. In service marketing literature, the service encounter is described most broadly by Shostock (1985). This model for the service encounter is defined as "a period of time during which a consumer directly interacts with a service." This definition includes all aspects of the service organization including the personnel, physical facilities and other visible elements. The service encounter has been more narrowly defined as the moment of interaction between the customer and the service provider (Cze piel, Solomon, & Suprenant, 1985; Solomon, Suprenant, & Czepiel, 1985). Jan Carlson, president of Scandinavia Airline Systems, writes in business literature of the "moment of truth" (Albrecht, 1988). A moment of truth is an episode, a. specific event in time, in which the customer comes in contact with some aspect of the organization 29

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and gets an impression of its service. To the consumer, the organi zation exists only during that incident of direct contact with a specific aspect of its operation. The moment of truth is not positive or negative by itself. The outcome of the moment of truth is what counts. Moments of truth can vary depending upon the nature of the business, the nature ofthe product and the nature of the service that is being provided to the customer. But, in all cases, the com mon theme is that, if the encounter is left unmanaged, it invariably affects service quality, customer confidence, and satisfaction (Al brecht & Bradford, 1990). U nigue Characteristics of the Service Sector A growing literature on how goods & services differ exists in the two fields of marketing (Zeithaml, Parasuraman, & Berry, 1990) and organizational behavior (Bowen & Schneider, 1988). A review of this literature reveals that scholars and practitioners have been concerned most with identifying the differences between goods and services. Satisfaction with durable goods is often solely determined by the performance of that specific product (Churchill & 30

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Suprenant, 1982). Intangibility, inseparability of production and consumption, heterogeneity, and perishability are consistently cited in the literature as the unique characteristics of service (Shostock, 1977; Berry, 1980; Lovelock, 1981, 1991). Services are intangible because they are performances; they cannot be seen, felt, tasted or touched in the same way goods can be sensed. Services are sold and then produced and consumed simultaneously. Because of this inseparability, the customer participates in providing the service, thereby affecting the performance and quality of the ser vice. Services are heterogenous because the quality and essence of service can vary from producer to producer, from customer to customer, and from day to day. Services are perishable because services cannot be stored (e.g., unoccupied motel rooms and unused telephone capacity cannot be reclaimed)(Parasuraman, 1987). These unique characteristics of services make them more difficult to evaluate than goods (Zeithaml, 1981). The Service Quality Construct In response to the growing importance of services to our global economy and the recognition by goods organizations of the 31

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need to compete on the service dimension, service researchers have the problem of measuring and managing service quality (Parasurarnan, 1985, 1990; Parasuraman, Zeithaml, & Berry, 1988; Parasuraman, Berry, & Zeithaml, 1991). However, the problem inherent in implementing these strategies has been identified by several researchers. Service quality is an elusive and abstract construct that is difficult to define and measure (Parasuraman et al., 1985, 1988; Carman, 1990; Cronin & Taylor, 1992). While quality in tangible goods has been described and measured by marketers, quality in services is largely undefined and unresearch ed (Parasuraman et al., 1985). Gronroos (1982) developed the first conceptual model of service quality. This model enhances understanding of consumers' service quality perception and the factors that influence those perceptions. According to the model, consumers' perceptions of service quality result from an evaluation process in which their expectations are compared with their perceptions of the service actually delivered. Perceptions of service quality are seen as a function of the outcome (technical quality) of the service delivery, 32

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the service delivery process itself (functional quality) and corporate image. This framework provided the basis for a more comprehensive model developed by Parasuralilan et al. (1985, 1988). Their explor atory research supported the idea that service quality is an overall evaluation, similar to attitude. In a series of focus groups with consumers and interviews with executives from a cross-section of service industries including retail banking, credit cards, securities brokerage, and product repair and maintenance, commonalities among these industries prevailed. Consumers used basically similar criteria in evaluating service quality. Initially, Parasuraman et al. (1985) identified ten dimensions of service quality. These ten key categories were identified as service quality determi nants: 1) reliability, 2) responsiveness, 3) competence, 4) access, 5) courtesy, 6) communication, 7) credibility, 8) security, 9) under standing and knowing the customer, and 10) tangibles. Later (1988), the researchers reduced these ten dimensions to five dis tinct dimensions of service qualities: tangibles (the physical facili ties, equipment and appearance of personnel), reliability (the ability to perform the desired service dependably, accurately and 33

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consistently), responsiveness (the willingness to provide prompt service and to help customers), assurance (employee's knowledge, courtesy and ability to convey trust and confidence), empathy (the provision of caring, individualized attention to the customers). Of these five dimensions, reliability primarily concerns the service outcome, while the other dimensions are more concenied with the service process (Parasuraman, Berry, & Zeithaml, 1991). These five dimensions of service quality are measured by the instrument SERVQUAL (Parasuraman et al., 1988; Zeithaml et al., 1990). According to the Parasuraman et al. (1988) model, service quality is seen as an attitudinal construct resulting from the dis crepancy between consumers' expectations and their perceptions of the quality of service actually delivered. If expectations exceed perceptions, service quality is considered to be low. If consumers perceive the service delivered as having met or exceeded their expectations, then service quality is considered to be satisfactory or superior. Perceived service quality is therefore viewed as the degree and the direction of discrepancy between consumers' percep tions and expectations (Parasuraman et al., 1988). 34

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Since the development of SERVQUAL as a measure of service quality, several researchers have used the instrument in empirical studies (Carman, 1990; Mangold & Babakus, 1990; Schneider, Wheeler, & Cox, 1992; Boulding, Kalra, Staelin & Zeithaml, 1993). Carman's replication (1990) of the SERVQUAL results expresses concern over the operationalization of the difference score construct between expectation and perception. Boulding et al. (1993) assert that individual overall quality assessments are affected only by their current perception of service quality and not their current expectation. Cronin & Taylor (1992) assert that a performance based-only measure of service quality may be a better means of measuring the service quality construct than the measure of differ ence between expectation and perceptions. Based on these studies, only the actual performance perceptions were measured in this study. In sum, the literature on culture/climate suggests that norms of behavior may influence organizational outcomes .. For the pur poses of this study, the relationship between cultural norms and service quality will be examined in five financial organizations. 35

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Research Questions In order to examine the relationship between cultural norms and service quality, the present study specifically asks: 1. What is the relationship between employee-perceived cultural norms related to task support and customerperceived service quality? 2. What is the relationship between employee-perceived cultural norms related to task innovation and customer-perceived service quality? 3. What is the relationship between employee-perceived cultural norms related to social relationships and customer-perceived service quality? 4. What is the relationship between employee-perceived cultural norms related to personal freedom and customer-perceived service quality? Chapter III, which follows, will further explicate these four research questions, including specific operational definitions. 36

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Summary This chapter has included a review of academe, managerial and services marketing literature relevant to the present study. The review was based primarily on writings in the disciplines of organizational communications, human resource management, group and organizational studies, organizational psychology, busi ness research, and services marketing. The on-line computer search was limited to literature published since 1980. When relevant to the study, earlier research has been included. The first section of the review presented literature related to six aspects of the research objective: 1) description of the culture construct, 2) culture as an organizational variable, 3) the climate construct, 4) distinctions between climate and culture constructs, 5) norms, and 6) The Kilmann-Saxton Culture-Gap Survey. The second section reviewed literature related to service quality, and discussed: 1) the relationship of climate/culture and service quality, 2) the unique characteristics of the service sector, and 3) the service quality construct, SERVQUAL. The third section outlined the four specific research questions empirically tested in the present study. 37

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Chapter III, which follows, describes the methodology and research procedures employed in this study. A description of the instruments that were used in the study, including their reliability and validity, is also provided. 38

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CHAPTER III METHODOLOGY The purpose of this study was to examine the relationship between the cultural norms as perceived by employees of five financial institutions, and the service quality as perceived by customers of those same institutions. Chapter I provided general background to the present study and rationale for its pursuit. Chapter II provided a review of academic literature relevant to the research questions that have been empirically tested. The present chapter describes the research methodology utilized to investigate the research questions. Specifical(y, this chapter includes a de scription of the research population, the overall research procedure and design, a description of how the sample and the research questions were operationalized, sampling plans and procedure, the measurement instruments and their reliability and validity, and statistical analyses and treatment of the data. 39

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Description of the Research Population Employee Sample Ninety-five employees from five financial organizations responded to the cultural norms questionnaire. Of the 95 respon dents to this questionnaire, 78 percent of the sample was female, while 22 percent of the sample was male. Twenty-four percent reported their title or department as a "teller"; 14 percent were '1oan officers"; 9 percent were "personal bankers"; 8 percent repre sented "vice-presidents," "bookkeepers" or operations officers, respectively, and the remaining 31 percent were reported as "cus tomer service representatives," "receptionists" and "other." Seventy-five percent of the respondents reported that the amount of customer contact they experienced in a work day was above average, while 16 percent reported average customer contact and 9 percent reported below average customer contact. The range of experience in banking for the respondents was three months to 30 years. The amount of time with the present employer ranged from two weeks to 25 years. Eighty percent of the respondents had been with the employer for ten years. 40

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Customer Sample One hundred :fi.fteen customers from five financial organiza tions responded to the SERVQUAL questionnaire. At Bank #1, 39 customers were asked to complete the questionnaire; 23 question naires were completed, resulting in .a 59 percent response rate. At Bank #2, 40 customers were asked to complete the questionnaire; 22 questionnaires were completed, resulting in a 55 percent re sponse rate. At Bank #3, 42 customers were asked to complete the questionnaire; 20 questionnaires were completed, resulting in a 4 7 percent response rate. At Bank #4, 4 7 customers were asked to complete the questionnaire; 21 questionnaires were completed, resulting in a 45 percent response rate. At Bank #5, 68 customers were asked to complete the questionnaire; 29 questionnaires were completed, resulting in a 43 percent response rate. Of the 115 respondents to this questionnaire, 35 percent were female, while 65 percent were male. The range of years as a customer at the bank was reported from one month to 39 years. Ninety percent of the sample had been customers for at least ten years. Forty-four percent reported using the bank services several times per week, 25 percent reported once-a-week use and 30 per-41

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cent reported use several times per month. Seventy-four percent reported most frequently using the lobby for bank services, 22 percent the drive-up window and 4 percent the automatic teller machines. Most (91 percent) of the respondents had a checking account at the bank. Forty-nine percent reported having savings accounts, 15 percent had debit/credit cards, 14 percent had safe deposit boxes, 22 percent had a bank loan and 6 percent had other bank products Prologue and Explication of the Research Questions Methodologically, the present study represents an empirical investigation of the relationship between organizational cultural norms as perceived by the employees of five financial institutions, and the service quality as perceived by the customers of those same institutions. This study built upon empirical research conducted by Kilmann and Saxton (1983) which focused on cultural norms, and Parasuraman et al. (1985) which focused on dimensions of service quality. Employee responses were measured by a modified form of the Culture-Gap Survey (Kilmann and Saxton, 1983), developed to 42

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assess the cUITent culture of an organization. It examined norms in four areas: task support, task innovation, social relationships and personal freedom. This present study focused only on an assessment of the CUITent culture and, therefore, the survey was altered from a norm-pairs format to a Likert scale (1 through 7). Customer responses were measured by SERVQUAL (Parasuraman et al., 1988) developed to appraise customer perceptions of service quality in five dimensions or subscales: tangibles, reliability, re sponsiveness, assurance and empathy. The original instrument compared expectations and perception of the respondents. Cronin & Taylor (1992) assert that a performance.:.based-only measure of service quality may be a better means of measuring the service quality construct than the measure of difference between expecta tion and perceptions. Carman (1990) and Boulding et al. (1993) concur with this perceptions-only viewpoint. For the present study, only the perception (performance) section of the SERVQUAL instrument was used. 43

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General Explication of Methodology The present study examined cultural norms in five financial institutions. As defined for this study, cultural norms serve to guide and, to a certain extent, may influence the behavior and productivity of organizational members (Kil.mann and Saxton, 1983; Parasuraman, 1987). The four subscales in this study that comprised cultural norms were: 1) task support, 2) task innovation, 3) social relationships and 4) personal freedom. This study investi gated any differences between these four norms as perceived by employees in five separate banks. This study also questions whether a relationship exists between these cultural norms as perceived by the employees and customers' perceptions of service quality. As defined for this study, service quality is determined by customer perception in five dimen sions. The five dimensions or subscales in this study that com prised service quality were: 1) tangibles, 2) reliability, 3) respon siveness, 4) assurance and 5) empathy (Parasuraman et al., 1988). 44

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Overall Procedure and Research Design In order to investigate these research questions, the following procedures were followed: Research Questions 1. 2. 3 and 4: To test for any differences between the cultural norms of the five organizations as perceived by the employees, a 28-item Likert type questionnaire was developed, based on the Kilmann-Saxton Culture-Gap Survey, and administered to employees in five distinct population groups. The sample and questionnaire will be further described in the sampling plan and instrumentation sections to follow. To operationalize research questions 1, 2, 3 and 4, cultural norms in the four subscales of task support, task innovation, per sonal freedom and social relationships were measured as composite scores. Items i, 5, 9, 13, 17, 21, and 25 measured task support. Items 2, 6, 10, 14, 18, 22, and 26 measured task innovation. Items 3, 7, 11, 15, 19, 23, and 27 measured social relationships. Items 4, 8, 12, 16, 20, 24, and 28 measured personal freedom (See Appendix A). Examples of these items are: 1) "Share information to help others" versus "Share Information with. others only when it benefits 45

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them" (task support); 2) "Keep things the same" versus "Make changes" (task innovation); 3) "Don't socialize with others" versus "Socialize with others" (social relationships); and 4) "Dress as they like" versus "Dress in an accepted manner" (personal freedom). To test the relationship of the cultural norms in the financial institutions to the service quality, a 22-item Likert-scale questionnaire was employed. Service quality was operationalized by com posite scores of tangibles, reliability, responsiveness, assurance and empathy. Items 1-4 measured tangibles; items 5-9 measured reliability; items 10-13 measured responsiveness; items 14-17 measured assurance; and items measured empathy (See Appendix B). Examples of these items are: 1) ''X Bank's employees are neat-appearing" (tangibles); 2) ''X Bank performs the service right the first time" (reliability); 3) "Employees in X Bank give you prompt service" (responsiveness); 4) "Employees at X Bank have the knowledge to answer your questions" (assurance); 5) ''X Bank has employees who give you personal attention" (empathy). 46

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Research Plan and Data Collection Cultural norms. Questionnaires were distributed to employ ees during a monthly staff meeting at the five financial institu tions. The participants represented, in three organizations, 90-100 percent of the employees. In the other two organizations, the participants represented over 50 percent of the employees at one particular site. All of these population groups were located in metropolitan Colorado Springs, Colorado. The 28-item questionnaire was administered.and returned to the researcher at the organizational site. SERVQUAL. Questionnaires were distributed to customers during multiple two-hour sampling sequences on random days of the week. Participants were systematically sampled using the kth element (Babbie, 1992). The sampling interval was every third case (individual). Only those who agreed to participate were given a questionnaire to complete. Upon completion of the questionnaire, participants returned the form to the researcher. If the participant agreed to participate but did not have time to complete the form on the site, the questionnaire was subsequently returned to the re-47

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searcher in self-addressed, stamped envelopes (see Appendix B for complete questionnaire). Instrumentation and Measurement The instruments utilized in this study were 1) an adapted Kilmann-Saxton Culture-Gap Survey and 2) an adapted SERVQUAL Survey. The Kilmann-Saxton Culture-Gap questionnaire was adapted to measure only the actual norms in an organization, rather than comparing the actual norm with the desired norms. Also, it was recommended that the 28-item norm pairs be converted to a Likert scale to improve statistical analysis. Previous reliability testing on the Kilmann-Saxton Survey reported KR-20 internal consistency reliabilities of .57 (task support), .23 (task innovation), 72 (social relationships) to .26 (personal freedom) for the four scales. Testretest reliabilities (one month) ranged from .83 to .94. Construct validity testing reported stable four-factor solution across samples. In this study, alpha coefficients for the Kilmann-Saxton Survey were .77 (task support), .45 (task innovation), .25 (personal free-48

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dom) and .69 (social relationships) for the four scales. The overall alpha was .47. The SERVQUAL instrument was adapted to measure only the customer perceptions in an organization rather than comparing the expectations with perceptions. SERVQUAL, as used in this study, is a 22-item Likert-scale questionnaire. For the SERVQUAL, total score reliability (i.e., reliability of linear combination) was reported as .90 in each of four samples (Parasuraman et al., 1988). It was reported that SERVQUAL has content validity based on the thoroughness with which the con struct was scaled and its domain explicated, as well as the extent to which the scale items represent the construct's domain. There was also strong support reported for SERVQUAL's convergent validity in a comparison acrossfour independent samples, linking overall quality categories and SERVQUAL scores. In this study, alpha coefficients for the SERVQUAL were .84 (tangibles), .92 (reliability), .91 (responsiveness), .91 (assurance) and .92 (empa thy). The overall alpha was .95. 49

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Data Analysis Pearson correlation coefficients were calculated for research questions 1, 2, 3 and 4: the composite scores on each of the sub scales of the Kilmann-Saxton instrument (task support, task inno vation, social relationships and personal freedom) were correlated with the subscales of the SERVQUAL instrument (tangibles, reli ability, responsiveness, assurance and empathy) for each financial institution. Overall scores on the Kilmann-Saxton and SERVQUAL were also correlated. Additionally, the sub scale scores of the Kilmann-Saxton instniment were combined into long/short-term and technica1Jhuman items and correlated with SERVQUAL. To test for differences between genders and between small and large financial institutions, t-tests were utilized. Summarv This chapter has described the methodology and research procedures employed in this study. The first two sections provided an introduction to the overall procedure and discussed the research design. The next three sections discussed the sampling plan and outlined the instrumentation that was utilized and the procedures 50

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used in collecting raw data were outlined for each questionnaire. The final section described the statistical treatment of that data. Chapter IV, which follows, presents the results of the research procedures described in Chapter III. 51

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CHAPTER IV RESULTS The general purpose of this study was to examine the con struct of culture/climate in relation to the construct of service quality. The specific purpose was to determine if there was any relationship between the cultural norms as perceived by employees and the service quality as perceived by customers in five financial organizations. First, Chapter I provided general background to the study of the culture/climate and service quality construct. Chapter II reviewed the managerial and academic literature relevant to the background of this study with additional sections related to distinc tions between goods and services, and how to measure service quality. At the end of the review of the literature, four research questions were set forth: 1. What is the relationship between employee-perceived cultural norms related to task support and customer-perceived service quality? 52

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2. What is the relationship between employee-perceived cultural norms related to task innovation and customer-perceived service quality? 3. What is the relationship between employee-perceived cultural norms related to social relationships and customer-:perceived service quality? 4. What is the relationship between employee-perceived cultural norms related to personal freedom and customer-perceived service quality? Chapter III, the methodology section of this study, first described the research population. Second was an explication of the research questions. Next, the research design, the data collection, instrumentation and measurement were described. The present chapter describes the results of the data collection and the analysis. The data generated by this investigation were analyzed using Pearson correlatjons and t-tests. The results of the data analysis are presented without interpretation in this chapter. Description, interpretations and conclusions are presented in ChapterV. 53

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Primary Analyses Research Question 1 Research question 1 asks: What is the relationship between employee-perceived cultural norms related to task support and customer-perceived service quality? AI; described in the methodology chapter, data from two separate Likert-type questionnaires were used to investigate re search question 1. The cultural norm labeled task support was measured by a composite score of behaviors comprised of items 1, 5, 9, 13, 17, 21 and 25 on the cultural norm instrument. Service quality was measured by the SERVQUAL instrument. SERV QUAL has five subscales for tangibles (items 1-4), reliability (items 5-9), responsiveness (items 10-13), assurance (items 14-17), and empathy (items 18-22). Pearson correlation coefficients were calculated on the com posite score and subscales for task support and the composite score for service quality. The statistical analysis of the data regarding research ques tion 1 is presented in Table 4.1. 54

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Table 4.1 Correlation Coefficients: Task Support and Service Quality (tangibles, reliability, responsiveness, assurance and empathy). N=5 Task Support SERVQUAL -.374 Tangibles -.753 Reliability -.565 Responsiveness -.231 Assurance .101 Empathy -.188 Results in Table 4.1 indicate there was no significant relationship between task support and service quality (r = -.37 4). However, there was a high negative correlation between task support and tangibles (r = -. 753). Research Question 2 Research question 2 asks: What is the relationship between employee-perceived cultural norms related to task innovation and customer-perceived service quality? Data from two separate questionnaires were again used to investigate research question 2. The cultural norm labeled task innovation was measured by a composite score of the behaviors 55

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comprised of items 2, 6, 10, 14, 18, 22 and 26. Service quality was measured by the SERVQUAL instrument. Pearson correlation coefficients were calculated on the composite score for task innovation and the composite score for service quality. The statistical analysis of the data regarding research question 2 is presented in Table 4.2. Table 4.2 Correlation Coefficients: Task Innovation and Service Quality (tangibles, reliability, responsiveness. assurance and empathy). N=5 Task Innovation SERVQUAL .340 Tangibles -.548 Reliability -.592 Responsiveness -.226 Assurance .108 Empathy -.285 Results in Table 4.2 indicate there was no significant rela tionship between task innovation and service quality (r = -.340). 56

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Research Question 3 Research question 3 asks: What is the relationship between employee-perceived cultural norms related to social relationships and customer-perceived service quality? Data from two separate questionnaires were again used to investigate research question 3. The cultural norm labeled social relationships was measured by a composite score of the behaviors comprised of items 3, 7, 11, 15, 19, 23, and 27 on the cultUral norm instrument. Service quality was again measured by the SERVQUAL instrument. Pearson correlation coefficients were calculated on the composite score for social relationships and the composite score for service quality. The statistical analysis of the data regarding research ques tion 3 is presented in Table 4.3. 57

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Table 4.3 Correlation Coefficients: Social Relationships and Service Quality (tangibles. reliability, responsiveness. assurance and empathy). SERVQUAL Tangibles Reliability Responsiveness Assurance Empathy Social Relationships .041 .299 .006 .097 .014 .342 Results in Table 4.3 indicate there was no significant relationship between social relationships and service quality (r = .041). Research Question 4 Research question 4 asks: What is the relationship between employee-perceived cultural norms related to personal freedom and customer-perceived service quality? Data from two separate questionnaires were again used to investigate research question 4. The cultural norm labeled person-al freedom was measured by a composite score of the behaviors comprised of items 4, 8, 12, 16, 20, 24, and 28 on the cultural 58

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norms survey. Service quality was measured again by the SERV-QUAL instrument. Pearson correlation coefficients were calculated on the composite score for personal freedom and the composite score for. service quality. The statistical analysis of the data regarding research question 4 is presented in Table 4.4. Table 4.4 Correlation Coefficients: Personal Freedom and Service Quality (tangibles. reliability. responsiveness, assurance and empathy). SERVQUAL Tangibles Reliability Responsiveness Assurance Empathy p < .05 Personal Freedom .712 .698 .905* .638 .394 .652 Results in Table 4.4 indicate there was high correlation, but no significant relationship, between personal freedom and service quality (r = .712). However, there was a significant correlation 59

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between personal freedom and reliabijity-a subscale of the SERV QUAL instrument (r = .905, p < .05). Supplemental Analyses Several significant findings not directly investigated by the four research questions are reported in this section. Long-term Norms and Service Quality The cultural norm instrument subscales of task support, task personal freedom and social relationship can be bined to measure: technical concerns (a composite score of task support. and task innovation), human concerns (a composite score of personal freedom and socialrelationships) or, alternatively, short term (a composite score of task support arid social relationships) and long-term (a composite score of task innovation and personal freedom). Pearson correlation coefficients were calculated on the com posite scores for short-term and long-term norms and the composite score for service quality. This additional statistical analysis is presented in Table 4.5. 60

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Table 4.5 CoiTelation Coefficients: Technical, Hulilan. Short-term. Long-term Norms and Service Quality. Norms SERVQUAL Technical Human Short SERVQUAL .558 Technical .274 .389 Human .337 .718 .813 Short-term .536 .292 .805 -.467 Long-term .541 .896* -.490 .811 .419 p < .05 Results in Table 4.5 indicate a significant relationship between long-term norms and service quality (r = .896, p < .05). Small versus Large Financial Organizations Since the financial institutions ranged in size from 11 employees to over thirty employees, t-tests were performed to analyze whether the size of the financial institution impacted the employees' perceptions of cultural norms and the customers' perceptions of service quality. The statistical analysis of the data comparing small versus large organizations on cultural norms and service quality is presented in Tables 4.6 and 4.7. 61

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Table 4.6 Cultural Norms Differences by Small and Large Financial Institutions. Norm Group (N} Mean so t Task Support 1 {40} 36.00 7.73 2 {53} 36.73 6.62 .48 Task Innovation 1 (40} 31.40 4.93 2 {52} 33.12 5.17 -1.62 Social Relationships 1 {38} 37.16 5.26 2 {54} 35.91 5.23 1.13 Personal Freedom 1 {38} 28.60 4.86 2 {54} 24.87 3.72 3.99 Human 1 (36} 65.94 6.62 2 (54} 60.78 6.n 3.60 Technical 1 (40} 67.40 11.67 2 (51} 69.84 11.16 1".01 Long-term 1 {38} 59.86 .52 2 (52} 57.86 5.54 1.70 Short-term 1 (38} 73.58 10.97 2 (53) 72.66 10.52 .40 alpha = .001, 2 tails Group 1 = small (fewer than 20 employees} Group 2 = large (more than 20 employees) p .631 .109 .264 .001'*** .001*** .315 .093 .690 Results in Table 4.6 indicate that there was a significant difference between norms related to personal freedom (t = 3.99, p < .001) and human norms (t = 3.60, p < .001) in small and large banks. 62

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Table 4.7 Service Quality Differences by Small and Large Financial Institutions. Variable Group (N) Mean SD t Tangibles 1 {65) 24.02 3.48 2 (48) 23.94 3.80 .11 Reliability 1 (62) 30.66 5.37 2 {49) 28.55 5.25 2.08 Responsiveness 1 {64) 24.61 4.35 2 (50) 23.70 4.33 1.11 Assurance 1 (65) 24.92 4.57 2 {50) 24.08 4.19 1.03 Empathy 1 (64) 30.58 5.21 2 {50) 29.28 5.17 1.33 alpha = .05, 2 tails Group 1 = small (fewer than 20 employees) Group 2 =large (more than 20 employees) p .911 .05* .269 .307 .188 Results in Table 4. 7 indicate that there is a difference in the subscale (reliability) on the service quality instrument (t = 2.08, p < .05) between smali and large banks. A Gender Comparison of Perceptions Because there was a discrepancy in the representation of males I females in the two separate samples, t-tests were performed to analyze any significant differences between the responses of the employees on the cultural norms instrument (78% female, 22% male) and responses of the customers on the service quality instru-63

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ment (35% female, 65% male). Results of the t-tests on the four subscales of the cultural norms instrument and the five subscales of the service quality instrument found no significant differences between the responses, except on the tangibles subscale where t = 2.50, p < .01. Summary This chapter presented the results of this study. The re search findings were organized into two sections. The first section included primary analyses related directly to the investigation of the four research questions. The findings of the study suggest a relationship between personal freedom and reliability-a subscale of SERVQUAL, but failed to identify a significant relationship between task support, task innovation, social relationships and service quality. The second section included supplementary statis tical analyses deemed necessary to clarify the results of the primary investigation. These findings are consistent with the primary analyses and provide an interesting comparison between small and large financial organizations related to cultural norms and service quality. 64

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The following chapter, Chapter V, provides interpretation of the findings and discusses the results of the study. Finally, prob lems and limitations of the present study are outlined along with suggestions for future research. 65

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CHAPTERV DISCUSSIONS, INTERPRETATIONS AND CONCLUSIONS The purpose of this study was to examine empirically the relationship between 1) the cultural norms of five financial institu tions as perceived by the employees and 2) the service quality as perceived by the customers of those five financial institutions. There were 95 subjects in the employee sample pool who completed the 28-item Likert-scale Cultural Norms questionnaire. There were 115 subjects in the customer sample pool who completed the 22item Likert-scale SERVQUAL questionnaire. The study identified a significant relationship between personal freedom and reliability-a subscale of service quality, but failed to identify a significant relationship between task support, task innovation, social relation ships and service quality. Supplemental statistical analyses aug mented the significant relationships identified in the primary analyses. 66

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Chapter I provided background and rationale for the present study. Chapter II reviewed the managerial and academic literature relevant to the background of this study. Four research questions were presented at the conclusion of Chapter II. Empirical method ology, procedures and instrumentation for the investigation of these research questions were outlined in Chapter III. Chapter IV presented results of the investigation of the four research questions including findings of supplemental analysis. This final chapter, Chapter V, provides a summary of the findings primary and supplemental analyses and inter pretation and conclusions regarding the results. Problems and limitations of the study are presented and suggestions for future research are offered. 67

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Discussion of Results Four research questions were tested. In addition, supplementary data were examined for significance. Primary Results Research question 1 specifically stated: What is the relation ship between employee-perceived cultural norms related to task support and customer-perceived service quality? Results failed to identify a relationship between task support and service quality. The primary assumption of this study was that there may be a relationship between cultural norms as perceived by employees and service quality as perceived by cu8tomers. The Kilmann Saxton Culture-Gap Survey (1983) assesses cultural norms in four dimensions or subscales: 1) task support, 2) task innovation, 3) social relationships, and 4) personal freedom. Task support norms relate to sharing information, helping other groups and being concerned with efficiency. According to Kilmann-Saxton (1983), task support norms emphasize more technical concerns than human concerns and, therefore, might explain the lack of statistical relationships for research question 1. Although there is a lack of a 68

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statistical relationship, all the correlations between task support and service quality were negative. In particular, the high negative correlation between task support and tangibles should be noted. This trend perhaps indicates that technical concerns (task support) are not related positively to service quality, especially tangibles (the physical facilities, equipment and appearance of personnel). Research question 2 specifically stated: What is the relation ship between employee-perceived cultural norms related to task innovation and customer-perceived service quality? Results failed to identify a relationship between task innovation and service quality. Task innovation norms relate to being creative, being reward ed for creativity, and doing new things on the job. In financial institutions, it is unlikely that this norm or behavior would be valued. Again, this norm emphasizes more technical concerns than human concerns and, therefore, might explain the lack of a statisti cal relationship. It should be noted, however, all correlations with the exception of assurance are negatively associated with service quality. Again, this trend perhaps indicates that technical concerns (task innovation) are not related positively to service quality. 69

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Research question 3 specifically stated: What is the relation ship between employee-perceived cultural norms related to social relationships and customer-perceived service quality? Results failed to identify a relationship between social relationships and service quality. Social relationship norms relate to socializing within the work group and the ability to mix friendship with business. Although this norm emphasizes more human concerns than concern with technical behavior, there was no significant statistical rela tionship. However, it should be noted that no correlations except tangibles are negative on the SERVQUAL scale. This trend might indicate that social relationships and human concerns are more positively related to service quality than those norms concerned with task support and task innovation which are more technically oriented. Research question 4 specifically stated: What is the relation ship between employee-perceived cultural norms related to personal freedom and customer-perceived service quality? Results identified a significant relationship between personal freedom and reliabili70

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ty-a subscale of service quality. Results also identified a high correlation between personal freedom and SERVQUAL. Personal freedom nonn.s relate to expressing oneself, exercising discretion and pleasing oneself. This norm correlated with reliability as a subscale of SERVQUAL (r=.905, p < .05). Reliabili-ty refers to the ability of employees to perform the desired service dependably, accurately and consistently. Personal freedom may be equated with empowenn.ent of employees as described in marketing literature. Empowerment means pushing authority, responsibility and ownership to the lowest level that can handle the task, thereby tapping into the discretionary effort and knowledge of people who are close to customers (Keiser, 1988). While personal freedom and reliability are the only subscales significantly correlated, all the remaining subscales indicate positive correlations and notably .'-,) higher correlations than task support, task innovation or social relationships. Supplemental Results In addition to the research question findings, three signi.ficant supplemental effects were identified. 71

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The first supplemental effect was a significant correlation found between long-term norms and service quality (r = .896, p < .05). Long-term norms are a composite score of task innovation and personal freedom norms. Long-term norms focils on the future of the organization, emphasize work improvements and define the relationship between the individual and the organization (Kilmann Saxton, 1983). This result perhaps indicates a stronger relation ship between personal freedom and service quality, but contradicts the results on research question 2, regarding task innovation. This contradiction may be explained by the strength of personal freedom overpowering task innovation in the composite score of the longterm norms. In addition, technical concerns and short-term norms are negatively correlated with SERVQUAL, while human concerns and long-term norms are positively and highly correlated with SERVQUAL. This trend augments earlier findings. Second, a comparison between small and large financial organizations found significant differences between employees' perceptions of cultural norms related to personal freedom (t = 3.99, p < .001) and human concerns (t = 3.60, p < .001). There was also a significant difference between customers' perceptions of the 72

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sub scale (reliability) on the service quality instrument between small and large banks (t = 2.08, p < .05). Employees in smaller financial organizations perceived personal freedom norms and h1nnan concerns as being stronger norms than employees in larger financial organizations. In addition, customers of smaller financial .. organizations perceived reliability on the SERVQUAL scale to be higher than customers of larger institutions. Third, in a gender comparison of responses on the cultural norms and SERVQUAL instruments, a significant difference between perceptions of service quality on the tangibles subscale was found. Tangibles relate to the physical facilities, the condition of equipment and the appearance of personnel. This difference could be accounted for by the tendency for females to attend more to tangibles cues (non-verbal) than males (Pearson, 1985). Implications of the Study The implications of the present study are theoretical as well as practical. The study suggests that employees' perceptions regarding norms related to personal freedom may relate to customers' perceptions of service quality, particularly related to the dimen-73

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sion of reliability. Given this association between culture and service quality, the effects of culture, particularly related to personal freedom, should not be left to chance. Managers and leaders need to be aware of the culture in their organizations. How effec tively an organization conveys its values and expected behavior to its employees impacts the satisfaction of its customers (Kelley, 1992). Empowerment involves getting employees, especially front line employees, to take care of the customers (Matza, 1990). Em powerment involves delegation to employees the authority to make decisions, to determine priorities and to improve the way work is done. When implemented correctly, empowerment can heighten productivity, reduce costs, encourage innovation and improve customer service (Dennis, 1993). General Electric Co. and Chaparral Steel are examples of manufacturing organizations that learned the significance of em powering their employees. With a commitment to empowerment, General Electric consolidated turbine manufacturing from nine plants to four and increased productivity by 70% (Bossidy, 1991). Chaparral Steel produces steel with a record low 1.6 hours of labor 74

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per ton as a result of including customer service, empowerment and quality, working in concert in their management practices (Du maine, 1992). The economic significance of empowerment has been demonstrated in service organizations as well. Patient-focused care, a technique used in health-care services, creates an environment for greater employee empowerment. Patient-focused care results in substantial decreases in labor costs (Troup, 1992). Part of the solution to empowering customer service may be employee empowerment; part is an interested and supportive managemeJ;l.t team to provide leadership (Matza, 1991). Management should not empower employees if it cannot support and recognize them. Second, the results of this study reaffirm the need for administration of instruments to measure culture and service quality in service organizations. Getting this feedback will lead to a better understanding of the possible interrelationship between the construct of culture and service quality, and how these variables might interact within service organizations. 75

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Limitations of the Study There are several problems and limitations to this study. First, the representation of the sample population was limited. The results represent employee and customer perceptions from only five financial institutions. These perceptions could easily vary in different financial organizations. With such a limited sample size, it was difficult to identify relationships between vari ables even though some correlations were high. In addition, while the sample on the cultural norms survey was representative, the sample on the SERVQUAL questionnaire was limited. In three out of five of the financial organizations, the population represented only those customers using the lobby of one site (branch) of a multiple-site organization. Second, there were problems with the instrumentation. Although the Kilmann-Saxton instrument is widely used for organi zational evaluation, it has not been extensively used in empirical research. Another behavioral norm measure might yield different findings. In addition, one administration of either the Kilmann Saxton Culture Survey or SERVQUAL may not be sufficient to identify adequately norms and service quality. 76

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Third, both culture/climate and service quality are elusive and complex concepts. There are multiple dimensions of these constructs. While generic surveys such as the Kilmann-Saxton Culture Survey and SERVQUAL are pragmatic, there is a problem with postulating dimensions a priori. A major limitation to previ ously constructed instruments is their lack of specificity in under standing a particular organization (Wasmer & Bruner, 1991). Suggestions for Future Research Although this was an exploratory study and any conclusions are tentative, the results indicate trends that merit further investi gation. In particular, it would be interesting to further investigate areas where high, but not significant, correlations were identified. Future researchers interested in the relationship between cultural norms and service quality could broaden the sample pool or group financial organizations by size. For example, a study could investigate ten small financial organizations. Furthermore, different types of service organizations could be represented to increase the level of generalizability concerning findings in this 77

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Further study concerning cultural norms and service quality needs to explore alternative methods of instrumentation. Webster (1992) suggests a marketing culture audit that integrates the two constructs of culture and service quality into one assessment tool. Additional research concerning the relationship between cultural norms and service quality could enrich the quality and quantity of data by collecting qualitative data to support and complement quantitative data. Employees and customers could be interviewed regarding their perceptions of culture and service quality in the financial organizations. In addition, employees could be surveyed with the SERVQUAL instrument to indicate their perceptions of service quality in the organization. Furthermore, longitudinal research in organizations regarding culture and service quality could provide valuable insights due to the complexity and dynamism of these constructs. Summary This present study examined: 1) cultural norms in five financial organizations as perceived by the employees and 2) the relationship of these cultural norms to the service quality as per-78

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ceived by the customers of these five organizations. The study was based on an assumption that certain types of normative behavior of the employees may influence organizational outcomes, specifically the perception of service quality by the customers. Research find ings indicated a relationship between norms related to personal freedom and service quality, specifically related to reliability. However, the study was not able to identify a relationship between norms related to task support, task innovation or social relation ship and service quality. Additionally, the supplementary findings provided trends consistent with primary analyses of the study and revealed significant differences. between small ail.d large financial institutions, both in terms of cultural norms and service quality. 79

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APPENDIX A 80

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QD ..... Culture Survey Bank#: __ Years in Banking: ____ Years with Present Employer: -----------------------Gender: Male Female Your Title/Department is: -------------------------Your Amount of Customer Contact is: Below Avernge Average Above Avernge

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CULTURE SURVEY A. INmODUCTION The culture of a work group or org:utization is the invisible force that guides behavior. h is not what the formal policies, rules, procedures, and job descriptions mandate. Rather. culture is the unwritten-often unconscious-message that fills in the gaps between what is formally decreed and what acrually takes place. Cullure, therefore. determines how formal statements gel interpreted and provides what the wriuen documents leave out As a result. culture affects lhe qualiry of decision making and action taking, which in 1urn may affect work group morale and performance. B. THE SURVEY This survey assesses the acrual cultural norms (unwritten rules) that are operating in your work group or organization. On the following pages. there are 28 statements of norms. For each statement. choose the number closest to lhe statement which best describes the acrual norm, as you perceive it. in ) 'Our work group or organization. C. EXAMPLE People i11 this orgauizarion: -2--34 -5--6--7Om '1 llllt abolll lbcir problems ShaR lbeir problems openly Ratio!! the above statements as ao example. the seveo positions should be interpreted' as rollows: I. U you feel thai. in your organization. you always keep your problems ro yourself or always share problems with others, mark the end positions: _x_ -2--3--5--6Den 't 1.111: about thdr problems OR 2 3 -5-6 Don :..:Uk obow their Froblc:ns :!. U you feel thai. in your orgmization. you often keep problems 10 younelf. or often share problems with others, mark the scale as foUows: Don, ull; bout their problems DI'Nl.l ulk >boul their problenu _x_ 2 -2-3 -3-4 -5OR -5-6 _x_ 6 -7-Sbarc thdr problems openly _X_ 7 S"n>r" their prci>lems openly -7Share their problems openly i Share their prcblrm> r:nNT1WUJ:n rlN

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00 3. If you feel !bar. in your organiution. you sometimes keep your problems to yoursell or sometimes problems wilh olhers. marie !he as CoUows: 2 _x_ 3 4 -5-6 7 Don't talk lboul lheir problems Sban: lheir ploblems gpenly OR 1 -2-3 .. _x_ 5 -6--7Om '1 talk aboullheir problems Sbare !heir problems openly 4 H you feel !hal !he statement is neutral in regard to keeping your problems to yourself. mark !he scale as foUows: 2 3 _x_ -.-5-6 7 Don '1 L:!..lk aboul !heir problems Share lbeir problems opcnly

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People in this organization: 1. -,-2--3-4 -5--6--7-Put down the work of others Suppon the work of others 2 -2--3-1 4 -5--6--7-Encourage creativity Discourage creativity ..., -' -,-2--3-4 -5-6 -7-Don t socialize with others Socialize with olhers (X) 4. 1 2 -3-4 -5-6 -7-Dress as they like Dress in an accepted manner 5. 1 -2--34 -5-6 -7Share infonnation to help others Share information with others only when il beneli1s them 6 1 -2--3-4 -5-6 -7-Keep things the same Make changes CUl n:;:,E SUfi\' E)' PAGE I

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OD en reopte u1 tnt:; 7. Mix friendships with business 8 -,Don't go outside the regular lines of communication 9 1 Don't divide and assign work fairly 10. 1 Try new ways of doing things 11. 1 Don't develop friendships with co-workers 12. Use their own judgment in following rules and regulations CUL ru;;E 2 3 2 -3-2 -3--2--3-2 -3-2 -3-4 5 -6-4 -5--6--4-5 -6-4 -5--6-4 -5--6-4 -5--6--7-Don't mix friendships with business -7-Feel free to communicate with anyone -7-Divide and assign work fairly -7-Don't rock the boat -7-Develop friendships with their co-workers -7Comply with all rules and regulations PAGE 2

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QD en People in this organization: 13. 1 Complete all la.Sks in !he best possible way 14. -,-. Don't try ro change 15. 1 Encourage socializing on lhe job 16. 1 Please the organization 17. 1 Share information only when it benefits them 18. Help others put nc" ideas inltl practice CUL1\JF;E SURVEY 2 -3-2 -3-2 -3-2 -3-2 -3-2 -3-4 -5--6-4 -5--6-4 -5--64 -5--6-5-6 4 -5--6-7 Do as little as necessary to get by 7 Always try lo improve -7-Discourage socializing on !he job -7-Do what pleases them -7Share information to hcip the organization make better decisions -7Resist putting new ideas imo practice PAGE J

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CD .. ., "' -o---.. -19. -.-Don't bother getting to know lhe people in your organization 20. Express personal preferences on lhe job 21. 1 Help others complere their tasks 22. Resist taking on new tasks 23. Participate in social activities with others in the organization 24. Live for their job or c:ueer CL.:l rune 2 -3-2 3 2 -3-2 3 2 :; 2 3 4 -5-6 4 5 6 4 -5-6 4 5 6 4 -5-6 4 -5--6--7-Gel 10 know lhe people in lhe organization 7 Keep personal preferences 10 themselves -7-Concentrate only on their own tasks 7 Are willing to take on new tasks 7 Don't panicipate in social activities with others in the organization 7 Live for rhemselves or their families PAGE'

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reopte zn IlllS orgamzwwn; 25. ---2--7-3 4 5 6 Compete with others in the Cooperate with others in the organization organization 26. 1 -2--3-4 -5-6 -7-Encourage new ideas Discourage new ideas 27. 1 -2--3--4--5-6 -7-Don't socialize with those in Socialize with those in other other work groups work groups 00 00 28. 1 -2-3 4 -5-6 -7-Believe in their O\vn values Believe in the organization's values CUL T\JRE Su;;vEY

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APPENDIXB 89

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CUSTOMER SURVEY Bank # --------Years you have banked here: ______ How often do you use the bank services? Several times per week -----Once a week --------Several times per month --------Where do you most frequently go for your banking services? Bank lobby ____ Automated teller machine ______ Drive -up ------What products do you use at the bank? Checking account -----Savings account -----Debit/Credit card ------Safe Deposit Box ------Loan _____ Other------Gender: Male ____ Female ___ 90

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SERVQUAL Directions: The following set of statements relate to your feelings about X Bank. For each statement, please show the extent to which you believe X Bank has the feature described by the statement. Once again, circling a 1 means that you strong disagree that X Bank has that feature, and circling a 7 means that you strongly agree. You may circle any of the numbers in the middle that show how strong your feelings are. There are no right or wrong answers--all we are interested in is a number that best shows your perceptions about X Bank. Strongly Strongly Disagree Agree 1. X Bank has modem-looking equipment. 1 2 3 4 5 6 7 2. X Bank's physical facilities are visually appealing. 1 2 3 4 5 6 7 3. X Bank's employees are neat-appearing. 1 2 3 4 5 6 7 4. Materials associated with the service (such as pamphlets or statements) are visually appealing 8t X Bank. 1 2 3 4 5 6 7 5. When X Bank promises to do something by a certain time, it does so. 1 2 3 4 5 6 7 6. When you have a problem, X Bank shows a sincere interest in solving it 1 2 3 4 5 6 7 7. X Bank performs the service right the first time. 1 2 3 4 5 6 7 8. X Bank provides its services at the time it promises to do so. 1 2 3 4 5 6 7 9. X Bank insists on error-free records. 1 2 3 4 5 6 7 10. Employees in X Bank tell you exactly when services will be performed. 1 2 3 4 5 6 7 91

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. Employees in X Bank give you prompt service. 1 2 3 4 5 6 7 Employees in X Bank are always willing to help you. 1 2 3 4 5 6 7 Employees in X Bank are never too busy to respond to your requests 1 2 3 4 5 6 7 The behavior of employees at X Bank instills confidence in you. 1 2 3 4 5 6 7 Y au feel safe in your transactions with X Bank 1 2 3 4 5 6 7 i. Employees at X Bank are consistently courteous with you. 1 2 3 4 5 6 7 r. Employees at X Bank have the knowledge to answer your questions. 1 2 3 4 5 6 7 Bank gives you individual attention. 1 2 3 4 5 6 7 X Bank has operating hours convenient to all its customers. 1 2 3 4 5 6 7 ). X Bank has employees who give you personal attention. 1 2 3 4 5 6 7 l. X Bank has your best interest at heart. 1 2 3 4 5 6 7 X Bank employees understand your specific needs. 1 2 3 4 5 6 7 92

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