Performance evaluation of Bank Tejarat branches in Gilan province based on EFQM organizational excellence model indicators

Academic Thesis for Master's Degree

Field: Business Management, Marketing Orientation

Abstract

This research seeks to evaluate the performance of Bank Tejarat branches in Gilan province based on the indicators of the EFQM organizational excellence model. The current research is descriptive in terms of its practical purpose and data collection method and is considered a branch of field studies. The statistical population of this research also includes all the personnel of Tejarat Bank all over Gilan province, about 614 people, and based on Cochran's formula, the sample number was determined to be 237 people. In this research, an attempt has been made to examine the state of Bank Tejarat branches in Gilan province based on the nine areas included in the two groups of results and enablers. Finally, after conducting the final analysis and using the test related to the hypotheses and using the T-Tech test, the sample determined that the community in question for this research, namely the branches of Tejarat Bank in Gilan province, has scored 514 points out of 1000. All the hypotheses have been accepted and finally, suggestions have been made for the continuous improvement of each of the criteria. Keywords: European quality management, enablers-results- Leadership-policy and strategy-employees-partnerships and resources-processes-customer results-employee results-community results-key performance results.

Chapter one:

                                                                          Research Overview

Introduction

Today, the economic enterprises of the country are facing countless challenges in the process of globalization and joining the world trade system, which is not easy to join. Being present in the global markets and even remaining in the domestic markets requires competition with powerful competitors, and considering the expansion and complexity of goals, processes and organizational structure in the competition scene, organizations can continue to survive that are responsive to the demands and expectations of customers and stakeholders, and also pay attention to profitability and wealth creation as key and superior organizational indicators. Organizational excellence models or business excellence as a strong tool for Measuring the degree of deployment of systems is used in different organizations. By using these models, organizations can, on the one hand, evaluate their level of success in implementing improvement programs at different points in time, and on the other hand, compare their performance with other organizations, especially the best ones. What goals and concepts does it pursue and what criteria do they rule over their competitors? In fact, most of the countries in the world, relying on models, have created awards at the national and regional levels, which are the catalyst for organizations and businesses in excellence, growth and wealth creation. The excellence model based on the production quality (goods or services) and the participation of all members of the organization can attract customer satisfaction and provide benefits to the stakeholders, and at the same time encourage and promote individual and organizational learning by relying on creativity and innovation. Organizational excellence models have found increasing applications as a framework for evaluating the performance and measuring the success of organizations in establishing new management systems and comprehensive quality management. These models are used as a common language to compare the performance and success rate of organizations.

The country's industries and economic organizations are concerned about joining the world trade and raising questions whether our country's industrial organizations have the ability to compete in this space? In what criteria are we weak? How should our organizations be in order to be victorious in the field competition? And what is the difference between our organization and a superior organization on a global scale?  It caused the economic institutions of our country to look for models of successful organizations in business matters, organizations that meet the main needs of the society in the best way and in this way are superior to other organizations and know how they should act in a competitive environment for growth, sustainability and excellence.

Regarding the above-mentioned contents and the importance of performance evaluation, the researcher is trying to evaluate the performance of Bank Tejarat branches of Gilan province based on the indicators of the organizational excellence model. EFQM[1].

1-2 statement of the problem

The excellence model is the most extensive self-evaluation tool in the world and is the basis for the design of national awards in different countries, including Iran. Many researches have shown that the use of management evaluation models such as the excellence model has a positive effect on the performance of organizations.(Malki, Izdi, 2019)

Since organizations must continuously evaluate their performance and formulate their future strategies based on these evaluations, among the many models that have been designed to evaluate performance, in this research, the indicators of the organizational excellence model have been used to measure and evaluate the performance of Bank Tejarat of Gilan Province.

Advantages of the organizational excellence model:

•           And pervasive

• Organizational processes -based management

• Special attention to the results obtained by the Organization

• Evaluation Based Evaluation

• Widespread Employee Partnership

• Identifying strengths and improvised areas

Inside and outside the organization by using the optimal tool of mining

•               Using the self-evaluation approach in order to improve the organization

(Melki, Izadi, 2019)

Also, the model that is the basis for evaluating and awarding productivity and organizational excellence awards in Iran's industry and mining sector is in accordance with the EFQM model. The National Award for Organizational Excellence is implemented in the following sectors:

Manufacturing and Production Sector

Service Sector

Health Sector

Education Sector

General Sector

Banks are placed in the service sector. It has been said that the main root of these changes is in the needs and demands of customers. Therefore, manufacturing and service organizations and companies, in order to respond favorably to the many and varied needs of customers as well as to succeed in the market, continuously try to achieve their goals by using appropriate and up-to-date techniques such as Total Quality Management, Malcolm Baldrige Quality Award [2], the model of the European Foundation for Quality Management, etc. The growth of their awareness of the importance of quality and performance excellence has come about under a competitive format. The above model is considered in most European countries as the framework of organizational excellence and the basis of most national or local quality awards. The main reason for the effectiveness of the European model of excellence is its widespread use as a management system and the resulting growth in the field of self-evaluation of organizations. This model is a non-prescriptive framework and it is believed that it has many approaches to achieve sustainable excellence and continuous improvement (Malki, Yazdi, 2019) In executive bodies, performance is the main issue and effective management depends on measuring, evaluating, planning and improving organizational performance. Therefore, during the past few decades, many efforts have been made to define indicators and provide models in this regard. According to experts, the evaluation system creates a suitable platform for improving the quality of services and transparency of performance, with its establishment, it is possible to learn from mistakes, and the storage of experiences and the amount of organizational learning will increase and the percentage of mistakes will decrease. Therefore, in 2013, the country's management and planning organization approved the by-laws for evaluating the performance of the country's executive bodies and communicated it to all the country's executive bodies on 28/10/2013. In order to encourage industrial, agricultural, government and non-government services and in order to improve the level of productivity, the government has been allowed to award the national productivity award using the design organizational excellence model and by the National Productivity Organization of Iran. It is important to mention that in Iran, the model of organizational excellence is known as the National Productivity and Organizational Excellence Award, and the prize is awarded by the Institute of Productivity and Human Resources Studies. The criteria of the organizational excellence model, which are the basis for evaluating an organization, are divided into two categories: enablers and results. (Malki, Izdi, 2009)

The EFQM model was introduced in 1991 as a business excellence model, in which a framework was provided for organizational judgment and self-evaluation and finally receiving the European quality reward, this action was implemented in 1992. This model shows the sustainable advantages that a superior organization should achieve.