INTERNATIONAL CONFERENCE ON DIGITALISATION OF BANKING

OPERATIONS: OUTREACH, CHALLENGES AND IMPACT ON

ECONOMY

“THE IMPACTS OF EMPOWERED WORK FORCE IN

DIGITALIZATION OF BANKING OPERATIONS”

MS.M.NITHIYAA,
RESEARCH SCHOLAR,
PG AND RESEARCH, DEPARTMENT OF COMMERCE
CAUVERY COLLEGE FOR WOMEN – TIRUCHIRAPALLI
TAMILNADU, INDIA

ABSTRACT:
Digitalization is spreading rapidly around every business. It also helps banking by
developing and enhancing its Conversion and Recording of data into digital
process as much easier, faster, safer and accurate with easy access of Internet. The
Main aim of the Researcher is about the Empowerment of work force in digital
operations and their adaptation towards Technology enhancement and how they
face challenges and opportunities. Convenience sampling Method is been adopted.
Sample size of 150 Employees was taken into account. The nature of research is
Exploratory and Analytical. Structured Questionnaire was prepared to collect data.
Statistical Package for the Social Sciences (SPSS) is the tool Utilized.
KEYWORDS: Digitalization, Employees, Empowerment, Technology, Internet.
1. INTRODUCTION:
India is an Independent and Democratic country with almost population of 1.37
Billion Citizen. India has Second thickest population in democratic countries with a Seventh
largest World Nominal GDP and the Third Biggest by its Purchasing parity. The Indian money
market has been classified into the organized sector like private, public and foreign commercial
banks and cooperative banks which together known as scheduled banks and the unorganized
sector which includes individual or bankers or money lenders and non-banking financial
companies. Digitalization has made Banking easier and more Assessable in regard with day to
day aspects and also in development of Economy. Banking has its own significant impact in all
business and Financial Service with its improved logicality in rendering Customer service
adapting and utilizing the Technological advancement opportunities. The promptness growth of
digitalization has allowed banks to improve efficiency and effectiveness with cost-cutting
banking services using Internet. It also helps in rotating the funds internally and across borders.
The adoption of new technology in the workplace can actually be beneficial to overall job
growth and productivity. In this new era, known as the Fourth Industrial Revolution, financial
institutions are now developing chat bots and other smart assets which gather client, economic,
social and other internal data to formulate customized marketing and service recommendations.
Banks are even exploring opportunities to leverage artificial intelligence assets enabled with
natural language processing to provide banking services. Digital work force depends on 5c’s

2. LITERATURE REVIEW:
Empowering employees is the long-term process of providing the tools,
training and motivate the workers to perform at the optimum level. If organization is looking for
a method to speed processes and still create quality materials and services, focus on employee
empowerment. When an employee trusted, and given timely information and the authority to
find solutions. Employee will be able to solve problems and provide solutions more quickly than
someone without that empowerment. Empowerment offers employee with a sense of
sovereignty, which will increase employee job satisfaction. It will be more comfortable at work
because it develops self-confidence and a sense of worth.
Olanipekun et al. (2013) examined the impact of e-banking on human resource
performance and customer satisfaction. The objective of the study was to determine how the
introduction and usage of e-banking products and services has generally impacted on the
effectiveness and efficiency of banks service delivery. Questionnaire administration technique
via a structured questionnaire was used to source for data and information from fifty randomly
selected respondents, which constitutes the sample and Chi-square analysis was used to analyze
the data. The study revealed that the introduction of electronic banking has impacted positively
on the bank's human resource performance, in terms of improved efficiency and effectiveness of
service delivery by their workforce. In a similar manner, it has enhanced customers‟ satisfaction.
The study recommends that critical infrastructures that aid in the usage of e-banking products
should be provided.
In the 21 dictionary, empowerment suggests the different meanings. Empowerment is a
compilation of systems, methods and measures to develop the ability and competence of
individuals to develop and augment productivity, organization progress, growth and prosperity
and human resources according to the organization's goals are used. Empowerment is not only
giving control to employees but cause employees with educating the skills and motivation, could
recover their performance. Empowerment is to afford the essential resources available to
employees and empowerment of growth process. "Important" is also meant to make stronger
impression that cause employees to solve problems and improve the ability of supporting vision
and communal of staff and allow them to identify environmental issues under control Soofali
(2003).
Burke (1986) explain empowerment as “To empower involve the giving way of power-
delegation of power Randolph (1995) defines empowerment as, “by recognizing and discharge
into the organization the power that employees previously have in their wealth and useful
knowledge and internal passion Conger and Kanungo (1988) define empowerment as: A process
of enhancing thoughts of self-efficacy among organizational members during the identification
of conditions that foster powerlessness and during their removal by both formal organizational
practices and informal method of providing efficiency information. Batman and Snell (1999)
defines, “empowerment is the process of allocation power with people”.

3. STATEMENT OF THE PROBLEM:

The study clearly aims at ascertaining level of empowerment towards level of satisfaction
of the employees in banks at Tiruchirappalli city. It also identifies that the events of the banks
and their industry in empowering the employees. The study mainly focuses in studying the
present factors of empowerment. Empowerment outputs of the bank and its incidental impact on
individual level employee satisfaction. This problem is exactly encountered in this paper \ to
throw certain remedies in the relationship between empowerment and satisfaction of employees
in banking sector at Tiruchirappalli city.
4. OBJECTIVE OF THE STUDY:
 To find the most significant factor toward employee empowerment.
 To find the relationship between factors towards employee empowerment.
 To find the relationship between employee empowerment and employee satisfaction.

5. SCOPE OF THE STUDY:

The purpose of the study is to determine the Effectiveness and Impacts of work
force attained through digitalization.
6. HYPOTHESIS:

H0: There is no significant difference between Public Bank and Private Bank with respect to
dimensions of Employee Empowerment of Bank Employees
H1: There is no association between Level of Employee Empowerment and level of Employee
Satisfaction of bank employees

7. METHODOLOGY:
7.1 METHOD OF THE STUDY:
Survey method is adopted to collect data.

7.2 Research Design:

Descriptive research method is used.
7.3 Population:
Random customers of Public bank {SBI,IOB} and private banks Axis and ICICI})
using the facility of internet banking are chosen.
7.4 Sampling Method:
Method of Convenience sampling is used to select the sampling units from which information
are collected.
7.5 Sample Size:
Sample size of 150 customers (75 public bank {SBI,IOB} and 75 private banks {Axis and
ICICI})
7.6 Sampling Technique:
Method of Convenience sampling was used to select the sampling units from which information
was collected.
7.7 Software package:
The statistical package for social science SPSS Version 15.0 was used for processing and
analyzing primary data.
7.8 Tool for Data Collection:
Questionnaire is used for collecting data.

8. DATA ANALYSIS AND RESULTS:

Analysis and interpretation are central steps in the research process. The aim of the
analysis is to organize, classify and then, summarize the collected data so that they can be better
comprehended and interpreted to give answers to the questions that triggered the research.
Interpretation is the search for the broader meaning of findings. Analysis is not fulfilled without
interpretation; and interpretation cannot proceed without analysis. So, both are inter dependent.

HYPOTHESIS I:
Null Hypothesis: It is observed that there is no significant difference between Public Bank and
Private Bank with respect to dimensions of Employee Empowerment of Bank Employees.

Table 8.1 Test for Significant Difference between Public and Private with
Respect to Dimensions of Employee Empowerment

Dimensions of Category of Bank

Employee Public Sector Private Sector

Empowerment t value P value

Mean SD Mean SD

Power 25.93 2.87 25.09 3.04 3.216 0.001**

Rewards 27.11 3.11 26.38 3.83 2.366 0.018*

Information 18.50 2.20 18.13 2.55 1.761 0.079

Knowledge 24.45 3.15 23.15 4.12 4.032 0.001**

Self Esteem 42.67 5.58 41.48 7.03 2.116 0.035*

Leadership 15.84 2.50 14.98 3.14 3.399 0.001**

Overall Employee
154.50 10.99 149.21 16.33 4.293 <0.001**
Empowerment
It is observed that there is no significant difference between public sector and private sector with
respect to information. Since P value is greater than 0.05. Hence the null hypothesis is accepted
at 5 percent level with regard to information.

HYPOTHESIS II:

Null Hypothesis: It is observed that there is no association between Level of

Employee Empowerment and level of Employee Satisfaction of bank employees

Table 8.2 Chi-Square Test for Association between Level of Employee

Empowerment and Level of Employee Satisfaction of Bank Employees

Level of Level of Employee

Chi-square
Employee Satisfaction Total P value
value
Empowerment Low Moderate High
75 54 0
Low (58.1) (41.9) (0.0) 129
[56.0] [22.5] [0.0]
47 150 52
Moderate (18.9) (60.2) (20.9) 249
200.967 <0.001**
[35.1] [62.5] [37.4]
12 36 87
High (8.9) (26.7) (64.4) 135
[9.0] [15.0] [62.6]
Total 134 240 139 513

From this, it is concluded that, more number of employees having low level of empowerment
have low level of employee satisfaction where as more number of employees having moderate
and high level of empowerment have high level of employee satisfaction.
9. FINDINGS:
The t-value for types of banks and power is 3.216 which is significant at one per cent level
showing that there is a significant difference between types of banks and power.
The t-value for types of banks and overall employee empowerment is 4.293 which is significant
at one per cent level showing that there is a significant difference between types of banks and
overall employee empowerment.
The multiple correlation coefficient is 0.814 measures the degree of relationship between the
actual values and the predicted values of the Adjustment.
Because the predicted values are obtained as a linear combination of power (X1), reward (X2),
information (X3), knowledge (X4), self esteem (X5), leadership (X6) the coefficient value 136 of
0.814 indicates that the relationship between employee satisfaction and the six independent
variables is quite strong and positive.
TheCoefficient of DeterminationR-squaremeasures the goodness-of-fit of the estimated Sample
Regression Plane (SRP) in terms of the proportion of the variation in the dependent variables
explained by the fitted sample regression equation.
Thus, the value of R square is0.6630 simply means that about 66.30% of the variation in
adjustment is explained by the estimated SRP that uses power, reward, information, knowledge,
self esteem, leadership as the independent variables and R square value is significant at 1 %
level.
The estimated positive sign implies that such effect is positive that employee satisfaction would
increase by 1.576 for every unit increase in self esteem and this coefficient value is significant at
1% level. The coefficient of X5 is 2.010represents the 137 partial effect of leadership on
employee satisfaction, holding power, information, knowledge, reward, self esteem as constant.
The estimated positive sign implies that such effect is positive that employee satisfaction would
increase by 2.010for every unit increase in leadership and this coefficient value is significant at
1% level. Based on standardized coefficient value, X5 (employee self esteem) is the most
important factor to improve employee satisfaction followed by X6 (employee leadership), X1
(employee power), X2 (employee reward), X3 (information), X4 (knowledge)

10. SUGGESTIONS :
On the basis of findings of the present study, the following suggestions are made to
improve the empowerment of employees in banking sector. The banks have to provide clear
goals, clear lines of authority and clear task responsibilities. While the autonomy is present,
employees are also aware of their decision- making boundaries. Clear lines reduce the disabling
uncertainty and ambiguity that so often accompany empowerment efforts. The information,
which is assumed to be critical to empowerment efforts, is related to mission and the employee’s
performance. Information like vision, mission, goals, financials, performance objectives, quality
and productivity needs to be communicated to employees at all levels.
Such information becomes both a need and result of a participative climate that is so essential to
an empowerment process. In a participative climate high value is placed on trust between
different levels of employees. Those who can achieve results are valued; specialists and experts
are highly trusted. Friendly relations are regarded as valuable. These two attributes require a
clear vision and challenge as well as openness and team work. Banks should remove the barriers
toself esteem and taking chance, letting employeesselect choices for meeting his or her own
needs.This leads to empowerment and job satisfaction as wellas flourish and creativity and
innovation in the banks.

11. CONCLUSION:
Nearly half of the employees have moderate level of empowerment and nearly half of the
employees have moderate level of satisfaction. There is a significant difference between gender
and dimensions of employee empowerment except gender and rewards and gender and
information and there is a significant difference between types of bank and dimensions of
employee empowerment except types of bank and information.

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