Complaint Handling at United Bank by Mahlet Teshome

ST.
MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
ASSESSMENT OF COMPLAIANT HANDLING PRACTICE

AT UNITED BANK S.C
BY
MAHLET TESHOME HAILE
ID No. SGS/0091/2008A
JUL, 2017
ADDIS ABABA, ETHIOPIA
I
ASSESSMENT OF COMPLAINT HANDLING PRACTICE AT
UNITED BANK S.C
A THESIS SUBMITTED TO ST.MARY’S UNIVERSITY,

SCHOOL OF GRADUATE STUDIES IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF MASTER OF BUSINESS ADMINISTRATION
BY
ID No.SGS/0091/2008A
JUL, 2017
ADDIS ABABA, ETHIOPIA
II
ST.MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
ASSESSMENT OF COMPLAINT HANDLING PRACTICE AT

UNITED BANK S.C
BY
ID No.SGS/0091/2008A
APPROVED BY BOARD OF EXAMINERS
_______________________ __________________
Dean, Graduate Studies Signature& Date
_________________________ _____________________
Advisor Signature & Date
_________________________ _____________________
External Examiner Signature & Date
_________________________ _____________________
Internal Examiner Signature & Date
III
DECLARATION
I, the undersigned, declare that the thesis entitled “ASSESSMENT OF COMPLAINT

HANDLING PRACTICE AT UNITED BANK S.C.” is my original work, prepared under the
guidance of Dr. Elias Nour. All sources of materials used for the thesis have been duly
acknowledged. I further confirm that the thesis has not been submitted either in part or in full
to any other higher learning institution for the purpose of earning any degree.
NAME: MAHLET TESHOME

SIGNATURE: __________________
ST. MARY’S UNIVERSITY
JUL 2017
ADDIS ABABA
ENDORSEMENT
This thesis has been submitted to St. Mary’s University, School of Graduate Studies for
examination with my approval as a University advisor.
Advisor’s Name: Elias Nour (PhD)

Signature: ________________________
St. Mary’s University
JUL 2017
Table of Contents
IV
Content Page No
Acknowledgement………………………………………………………………… Vii
List of Tables………………………………………………………………………..ix
List of figures………………………………………………………………………. ix
Acronyms & abbreviation………………………………………………………….. Viii
Abstract……………………………………………………………………………….x
CHAPTER ONE: INTRODUCTION ……………………………………………………... 1
1.1. Background of the Study……………………………………………………………… 1
1.2. Statement of the Problem……………………………………………………… ……... 2
1.3. Research Questions………………………………………………………………….... 3
1.4. Objectives of the Study……………………………………………………………….. 3
4.1.1 General Objective……………………………………………………………. 3

4.2.2Specific Objective…………………………………………………………….. 3
1.5. Significance of the Study……………………………………………………………… 3
1.6. Scope of the Study……………………………………………………………………. 4
1.7 Limitation of the study………………………………………………………………… 4
1.8. Definition of Terms…………………………………………………………………… 4
CHAPTER TWO:REVIEW OF RELATED LITERATURE……………………………. 5
2.1 Theoretical literature review…………………………………………………………… 5
2.1.1. Definition of Service………………………………………………………… 5
2.1.2. Definition of Complaint handling…………………………………………… 7
2.1.3. Objective of complaining……………………………………………………. 7
2.1.4. Benefit of good complaint handling………………………………………… 7
2.1.5. Complaint handling international standards………………………… 8
2.1.6. Organization as open systems………………………………………..12
V
2.2 Empirical studies……………………………………………………………….. 13
2.3. Conceptual framework………………………………………………………… 13
CHAPTER THREE:RESEARCH METHODOLOGY………………………… 16
3.1. Research Design………………………………………………………………16
3.2. Population and Sampling Techniques………………………………………...16
3.3. Types of Data and Tools/Instruments of Data Collection…………………… 18
3.4. Procedures of Data Collection……………………………………………….. 18
3.5. Methods of Data Analysis…………………………………………………….. 19
CHAPTER FOUR:
DATA PRESENTATION, ANALYSIS AND INTERPRETATION…………….. 20
4.1Introduction…………………………………………………………………….. 20
4.2. Results/Findings and Discussion of the Study………………………………… 20
4.2.1 General information of the respondents of the questionnaires………. 20
4.2.2 Survey information of the respondents of the questionnaires………...20
4.2.2.1 Close ended survey………………………………………… 23
4.2.2.2 Open ended survey…………………………………………. 33
4.3 Data collected through interview………………………………………………. 33
4.4 Summary of the finding………………………………………………………... 35
CHAPTER FIVE: CONCLUSIONS & RECOMMENDATIONS………………... 37
5.1. Conclusions……………………………………………………………………. 37
5.2. Recommendations……………………………………………………………... 38
6. Reference………………………………………………………………………... 39
7. Appendices A……………………………………………………………………. 41
Appendices B……………………………………………………………………. 45
VI
ACKNOWLEDGEMENTS
I would like to extend my sincere gratitude and appreciation to all those who assisted me in
making this research a success. First and foremost I thank GOD almighty for his mercies,
unfailing love, and providence and for giving me strength and seeing me through my entire
life.
It gives me a great pleasure to extend my sincere gratitude for the help I received to complete
this project. My sincere thanks go to my advisor Dr. Elias Nour for his unreserved assistance,
suggestions and guidance.
My thanks also go to the staff and branch managers of the bank for completing the research
survey questionnaire and some of whom have spared their valuable time for personal
interview. Special thanks to Ato Biruk Messele.
Finally I would like to thank for my classmate and my group members for your constant
encouragement and help.
VII
List of ACRONYMS
CBE: Commercial Bank Of Ethiopia

ESLSE: Ethiopian Shipping And Logistic Service Enterprise
ISO: International Standards For Organization
VIII
List of Tables
Table 3.1 Sample size determination………………………………………………. 17
Table 3.2 sample determination by types of customers……………………………. 18
Table 4.1 General information of the respondents………………………………….21
Table 4.2 make it easy to complain survey analysis……………………………….. 23
Table 4.3 Recruit and train necessary staff survey analysis……………………….. 25
Table 4.4 Keep customer informed survey analysis……………………………….. 26
Table 4.5 Keep clear records survey analysis……………………………………… 28
Table 4.6 Deal with complaint quickly and fair survey analysis…………………... 29
Table 4.7 Aim to resolve complaints satisfactorily survey analysis……………….. 30
Table 4.8 Monitor the complaints handling process survey analysis…………........ 32
List of figures
Fig. 2.1 conceptual frame work……………………………………………………. 15
IX
Abstract
The aim of this study was to assess complaint handling practice of United Bank S.C. The
study was conducted among customers of the bank and managers of the department of the
bank at selected three branches in Addis Ababa. The study used mixed research approach. To
achieve the objective of the study research questions were developed based on the practice of
complaint handling by the bank. Questions are for both customers and department managers
of the bank. The study uses simple random sampling technique to select the target population
for questionnaire and purposive sampling technique used for interview. The research
questionnaire was developed by using Likert scale to rate their response, ranging from
strongly disagree to strongly agree. Quantitative data were gathered through questionnaire
from 200 respondents. The questionnaires included open and close ended questions. During
the analysis interrelated procedures are performed in order to sum up and rearrange the
data. The collected data were analysed through descriptive statistics such as percentage,
frequency, means and Standard Deviation were applied. Based on the research results the
data analysis indicates that: the customers’ complaint doesn’t fix on time. On the other hand
there is less concern by management for complaint handling.
KEY WORDS: complaint handling and ISO
X
CHAPTER ONE
INTRODUCTION
This chapter briefly presents the background of the study, statement of the problem, research
questions, research objectives, and definition of terms, significance of the study and the
delimitation of the research.
1.1. Background of the Study

The complaint of customers helps the organizations to improve the level of technology,
skilled manpower and other services better than competitors. “Complaint is not just another
compliance item; rather it is an opportunity for banks to gain a competitive edge"
(AbhikandVenkataramana,(2016).The customer’s complaint directly or indirectly affects the
organizational development, which include the performance, competitiveness and other
activities of the company. However, handling the customer’s complaint needs high
commitment from the employees as well as the decision makers of the bank.
Several studies, as example Mohammad et al. , (2014) and Hummam and Olena, (2014) were
described how much effective complaint handling has a positive effect to customer
satisfaction, loyalty and customer retention and repurchasing behaviour. The studies used
questionnaires to collect data and analysed the data by using SPSS software. The finding of
the studies revealed that there was a positive relation between complain handling and
customer satisfaction, loyalty and customer retention and repurchasing behaviours.
According to Gary (2006), “The goal of organizational development is to improve

organization effectiveness” through handling the complaints of customers. In the current
competitive business market, the important part is proper handling of the customers
depending on their complaints as the company needs their feedback as an input for the
organizational improvement. Brenda and Michael,(2006) said that, “Organization
development refers to a long –range effort to improve an organization`s problem-solving
capabilities and it enables to handle with change in its external environment.” In today’s
business environment the technology, the life style of peoples and other things change
through time. The business organization must review and improve to fit with their customer’s
interest.
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According to the principles and guideline of complaint handing, the bank should be
committed in customer complaints handling by giving high attention. This study focused on
the following problems that affect the organization development. Currently the branch of the
Bank has increased. However, the number of officer who handles the complaint is only at
head office and the other branches just handle and send it to head office as weekly report.
Nobody can follow up the complaint and monitor the process of the complaint. It is indicated
that the Bank didn’t assign dedicated employee for this purpose. Finally, these problems can
create late to respond the complaint quickly and the customer would be switching. This can
effect on the organization development and it needs improvement.
United bank established as a share company on the tenth of September,1998 in accordance

with 1960 commercial code of Ethiopia and under the supervision of Bank Proclamation
No.84/1994. The bank obtained a banking service license from the National bank of Ethiopia
and registered in trade, industry and tourism bureau of the Addis Ababa city administration.
The study assessed the gaps of the complaint handling practice of the United Bank S.C based
on ISO standards.
1.2. Statement of the Problem

The previous studies were state different problems on their thesis. Such as, Mohammad
&Shafig, (2014), due to personal mistakes by employees like, lack of adequate training to
staff, lack of experience and inability to meet customers need the compliant of the customer
should be arise on the service quality. The problem that stated in their study indicated that,
the customer satisfaction was highly affected by the less service quality of the bank.
The other study, Bashir,(2008), stated that problems such as services failures, poor quality in
service and unfair treatment from the employees in the organization make the customer to
dissatisfy. This dissatisfaction was the reason for complaint handling.
The problem of this study is number of closed and dormant or inactive account in each
branch allowed as normal. Off course, the customers who are switched from the bank are due
to their own reasons for the action. When looking closed, inactive or dormant accounts in
some branches as a sample it’s arises questions why it happened. Let take one branch of
united bank, from Megenagna branch around 150 customers within one year closed their
account. (Source: from Internal Report of United Bank S.C). The researcher needs to solve
this problem as a member of employee of the bank.
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The problem indicated handling complaints effectively and need take action to maintain and
increase the number of customers of Bank. The study focused on active account, dormant
account and zero Balance account which the results in inappropriate handling of customer
complaints.
1.3. Research Questions

a) How were the customers informed to use complaining easily?
b) To what extent the bank dedicated to recruit and train necessary staff for
handing complaint?
c) How quick and fair are responses to complaint?
d) How does the bank record kept?
e) How does the bank monitor complaints?
f) To what extent the bank address the compliant requirement of the customers?
1.4. Objectives of the Study
4.1.1 General Objective

The main objective of this study is to asses complaint handling in United bank SC.
4.2.2Specific Objective
a) To describe the customers were informed to use complaining easily.
b) To evaluate how much the bank dedicated to recruit and train necessary staff
for handing complaint.
c) To assess quick and fair responses to complaint.
d) To evaluate the bank record keeping.
e) To evaluate the bank monitor complaints.
f) To assess resolving complaints satisfactorily.
1.5. Significance of the Study

The current business industries are highly competing with each other to be preferred than
other. Many companies use market intelligence system to get information about their
competitors. However, handling the complaint from the customers is less costly to get
feedback and information if the company wants to improve or develop its self. Generally,
Complaints are a back bone to improve the organization culture, process, strategy and
structure and also to achieve the big goal of the company. So, this study is helps to the bank
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to improve the organization performance, compliant handling practice, provide information
to decision makers and for the next research as reference.
1.6. Scope of the Study

The study focused on the assessment of complaint handling of United Bank S.C. due to the
concern on the availability of data, time and budget. It covered united bank S.CMegenagna
branch, Bole branch and Bole Medhanialem branch in Addis Ababa. The branches were
selected by high business transaction and number of customers.
1.7. Limitations of the Study
One of the limitations of this study was collecting data from closed and dormant account. It
took more time to find and collect data from them. However, the study used small number of
sample from these types of customers. Moreover, the researcher suggested that focusing on
dormant and closed account holder is better than active account holders. Although, using
observation and purposive data collection mechanisms minimized wasting time on
investigating wrong response of the respondent.
1.8. Definition of Terms

Bank: is the United Bank, which the study is focused.
Complain: any expression of dissatisfaction about our action or lack of action, or about the
standard of service provided by company or be half.
Complaint: is an expression of dissatisfaction which related to the company’s services,
performers managers and also including compliant handling processes itself, where a
response is not as expected by customers.
Compliant office: is a department, probably located at the head office level and organized
for the purpose of receiving and handling various issues of customer’s dissatisfaction, follow
fairness and set resolutions and comment on issues for final decisions and per the procedures
and directives with rules and regulations.
Complain handling processes: is a continuous service recovery process which involves the
receipt, investigation settlement, reporting and recovery of customers too.
Customers: is any individual who come to get a better service from the bank. It extended to
internal customers or staffs as well.
Dormant account: means when the customer’s account doesn’t show any transaction for six
month.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE

This chapter discusses about the theoretical and empirical studies that related to complaint
handling. Some definitions of complaint handling are stated at the first theoretical part of the
literature that aid to provide a clear understanding about it. Then, the objective, benefit and
standard of compliant handling are discussed. Finally, the empirical literatures and
conceptual frame work were described.
2.1 Theoretical Literature Review
2.1. 1 Definition of Service
Researchers have tried to define service and to explain what service constitutes. There are
many definitions regarding the concepts of service. Services are deeds, processes, and
performances(Parasuraman et al. 1985).Gronroos (2000, p.46) defined service as: “An
activity or series of activities of more or less intangibles nature that normally, but not
necessarily, take place in interactions between the customer and service employees and/or
physical resources or goods and I or systems of service provider, which are provided as
solutions to customer problems". Whereas Kotleret. al. (1999) defined service as any activity
or benefit that one party offers to another which is essentially intangible and does not result in
the ownership of anything, and it may or may not be tied to a physical product.
It is very important to understand the overall characteristics of services and what actually
characterizes services. In general there are some service characteristics which can be
generalized, even though many service industries are heterogeneous. According to
Parasuraman et al. (1985), there are a number of unique characteristics that separate services
from tangible goods.
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Services are not tangible; when you buy a service there is nothing to be shown as tangible.
Services are not things, but they are deeds or efforts. In essence the performances of most
services are supported by tangibles. In general, companies offer a combination of tangible
and intangible elements; the product is in many cases associated with service delivery.
Another characteristic of services is that production is inseparable from consumption.

Inseparability is taken to reflect the simultaneous delivery and consumption of services.
Customers participate in the production process or delivery process; there is an interaction
between the service provider, the service environment and the customer. Goods are first
produced, then sold and then consumed; services are first sold, then produced and consumed
simultaneously. Customer must be present during the production of many services, for
example in haircuts, airplane trips, restaurants etc. Thus, inseparability forces the buyer into
intimate contact with the production process. As a result, other customers are a part of the
service consumption.(Parasuraman et al., 1985)
Services are not homogeneous and are less standardized and uniform. Heterogeneity reflects
the potential for high variability in service delivery. For example: the quality and essence of a
service can vary from producer to producer, from customer to customer, and from day to day,
and people's performance fluctuates up and down. People-based services vary depending to
those that deliver the service whether they are skilled or professional workers as the service
performance is delivered by different people and the performance of people can vary. It also
varies the service delivered that is equipment based depending from the operators
itself.(Parasuraman et al., 1985)
The fourth characteristic of services highlighted in the literature is perish ability. In general,
services cannot be inventoried and carried forward to future time. For example: motel rooms
not occupied, empty tables in a restaurant, airline seats not purchased, and telephone line
capacity not used can be seen a revenue opportunity lost forever. Services depend on time
which makes them very perishable.(Parasuraman et al., 1985)
The perish ability of services is not a problem when the demand is steady, because it is easy
to staff the services in advance, when demand fluctuates, service companies have difficult
problems. Thus, service marketers need to manage the demand but also the supply in order to
obtain a profitable equilibrium.(Parasuraman et al., 1985)
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Because services are performances that cannot be stored, service businesses frequently find it
difficult to synchronize supply and demand. Sometimes too much demand exists, for
example: a popular restaurant on a Saturday night.
2.1.2 Definition of Complaint handling
Different authors defined compliant handling in different ways by using their own words and
expressions. Some of the definitions complaint handling by different writers and authors are
discussed as follows: According to (Ombudsman, 2010), complaint handling defined as
"Complaint handling is an important role in organization and should be recognized as such by
management". Regarding to this, the management of the company must be give attention for
handling the customer’s complaint. Because, it’s have an important role in the management
decision making. An others definition of complaint that stated by (Ombudsman,2016)
"Complaints are an important way for the management of an organisation to be accountable
to the public, as well as providing valuable prompts to review organisational performance and
the conduct of people that work within and for it". Generally, complaint of customers must be
handled as a positive manner.
2.1.3 Objective of complaining
The private business firms are generating their profit by providing better service to the
customers. However, inappropriate treatment of customers, the firms’ operating system and
other different factors are moving to customer satisfaction or dissatisfaction. Every
satisfaction or dissatisfaction of the customers has positive or negative impact on an
organizational development.
The customers are may be for any personal aspect or because they are being emotional at the
time when the case is happened. However, the main reason of receiving complaint by
organizations is to assess the case as per the rule, regulations or directives and also as per
stated in the corporate charter and hence to take immediate correcting actions, improving
policies (CBE, 2012 &ESLSE, 2006E.C). The principal objective is to protect the interests of
customers wherever appropriate by promoting effective competition.
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2.1.4 Benefit of good complaint handling
According to Ombudsman Western Australian, (2010), complaints are important for the
management of the organization to be countable to the public as well as providing valuable
prompts to review organizational performance and conduct of people that work with and for
it. A complaint is an expression of dissatisfactions made to an organization related to its
products and services or the complaint handling process itself, where the response or
resolution is explicitly or implicitly. Some benefits are
- It resolves issues raised by a person who is dissatisfied in a timely and cost
effective way
- It provides information that can lead to improvement in service delivery and other
in the organization structure.
- It can improve the population of an organization and strengthen public confidence
in an organizations administrative process.
2.1.5 Complaint handling international standards
ISO 10002 was developed the international standards. It give advice for organization that can
used by all types of organizations worldwide, including banks, energy suppliers, high street
and online shops, government agencies and public bodies. The standard is voluntary. But
banks or organizations that choose to comply on the following detail.
a) Make it easy to complain
Make it easy to complain have a complaints procedure that is clearly publicised, free and easy
to use. Giving everyone an equal opportunity to submit a complaint by ensuring customer
information is easy to understand and available in alternative formats such as large print,
Braille or audio. Adopt a consumer-focused approach and be open feedback.
According to Ombudsman, (2007), a complaint in terms of accessibility is that service

available to them is free. This means the customers don’t need to worry about whether they
can afford to have their complaints properly considered, in order to get an independent view
of what has happed. To make the general customer aware of its role the organization should
be available promotional materials at places where potential complainants are likely to gather
information. Differing levels of literacy and uneven communication skills may result in some
complainants not understanding the jargon used in complaint forms, or having difficulty in
articulating abstract concepts. It is important to ensure that documentation is written in plain
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language. And also take in to account about socioeconomic differences of potential
complaints from particular backgrounds or communities.
b)Recruit and train necessary staff
It is appointed a management representative to be responsible for complaints-handling

process. The bank or the organizations provide adequate staff and resource to deal with
complaints. And the bank or the organizations are ensure that relevant staff are made aware
of the complaints procedure and trained to deal with complaints appropriately and promptly.
An office/department which is entitled to receive complaints from customers has a duty of

investigating the truth as per the stated written documents what so ever it has and act as
promised to perform accordingly. And also it is responsible to respond quickly as per the
request, expressing clearly its findings of why the differences are happened. Different
managements at different positions have responsibilities for various duties accordingly.
Overall responsibility and accountability for the management of complaints lies with the
Chief Executive and senior management (West Lothian Council, 2013). Same wise the
council express that Deputes & Heads of services also have their own duties &
responsibilities.
Ombudsman Western Australia, (2010) explain about the Complaint Handling Officers in that
they are the most important factor in ensuring that an organization’s compliant handling is
responsive to complainants as compliant handling is an important role in an organization and
should be recognized as such by management. It states again that Complaint Handling
Officers should be empowered to make decisions, or have access to someone who can make
decisions. An effective resolution at the earliest opportunity will enhance the complainant’s
view of the organization and allow prompt improvement to practices. Complaints should be
handled by people who have the appropriate skills and authority to resolve or investigate
complaints and, where appropriate, provide remedies and identify improved practices. Where
possible again, complaints are best handled by people at the point of service delivery. These
people should be able to resolve complaints at first contact and should log complaint
details for further analysis.
According to Ombudsman, (2007), the complaint officer or anyone in the organization is look
into complaints in a proportionate and impartial manner. The officer is must understand
his/her role clearly and make clear communication with customers about its objective and
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service standards. A further purpose of the complaint handling process is to identify the
reason why complaints arose and were not settled by the organization concerned.
c) Keep customer informed
It means contact people who have submitted a complaint (complaints) immediately to

acknowledge receipt of the complaint. Keep complaints informed about the progress of their
complaint and provide updates on request. Track complaints from initial receipt until the
complainant is satisfied or a final decision is made.
It is important to realize that organizations that are customer-focused acknowledge customer

complaints in a positive manner (Allen F. et al, 2015). Accordingly, Wysocki states what
specific activities an organization utilizes to provide customers with easy opportunities to
register their dissatisfaction. Many dissatisfied customers just quietly take their business
elsewhere. Therefore, organizations that are truly committed to delivering superior customer
performance work hard at providing their customers opportunities to complain. No
organization is so perfect in the delivery of superior customer performance that significant
levels of dissatisfaction (the source of complaints) do not exist. No news from customers
regarding your performance is not necessarily good news, according to Wysocki. On the
other side, motivating customers to submit their grievance is important which help to
investigate problems to solve.
d) Keep clear records
Make a record of complaints as soon as they are received, including a description of the
complaint, the product or services complained about, the remedy requested by the
complainant, the due date for a response and any action taken.With regard to recording &
reporting complaints, the Scottish Public Services Ombudsman (SPSO),(2011) stated that
there must a records of all complaints systematically so that the data can be used for analysis
and management reporting. By doing so, it can be identified and tackle what causes
complaints. And also for report purpose there must analyze of complaint details for trend
information to ensure to identify service failures and take appropriate action. And hence, as
per SPSO, by regularly reporting on the analysis, it is possible to inform management where
services need to improve.
One important feature of complain handling is to identify opportunities to improve services.

And hence there should be systematic way of recording so that a compliant data can be
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analysed & reported to the management to take appropriate actions. Complaints provide
valuable customer feedback (West Lothian Council, 2013). Furthermore, it is known that
complaints can be received by an organization in a number of ways. Service providers should
maintain complete and accurate records of all contact regarding complaints and ensure that
this information is easily accessible, preferably in a single location (SPSO, 2011)
e) Deal with complaint quickly and fairly
Its deals with the bank or the companies treat complainants courteously, promptly and
according to their urgency. Address each complaint fairly and in an unbiased manner.
According to (Ombudsman, April 2007), In complaint handling process, there should be

enough flexibility to allow each complainant to feel that they are being treated as an
individual and that the complaint will be dealt with on its own merits. The complaint
handling process is expected to have a policy of openness and transparency in relation to
what it does, how it does it and the results it achieves. This is fundamental to accountability.
It enables to demonstrate fairness of approach, which in turn increases customer’s
confidence. It is an important determinant of a complainant`s perception of how well his or
her complaint was handled. The timeliness of action will be important and the organisation
complained about. To be effective and have credibility in the eyes of its stakeholders, the
process must have a clear remit, demonstrable independence and authority, be evidently
knowledgeable about its work and have adequate powers. Appropriate resources should be
allocated to the examination of each complaint and each complaint should be dealt with in a
reasonable time-frame.
f) Aim to resolve complaints satisfactorily
Make reasonable efforts to investigate the circumstance and information surrounding a

compliant. Once an investigation has been carried out, inform the complainant about the
proposed decision or action. If the complainant accepts the proposal, this should be carried
out and the complaint can then be closed. If the complainant rejects the proposal, inform
them of any available dispute resolution schemes or see alternative dispute resolution
schemes. Keep complaint open until the customer is satisfied or all reasonable forms of
resolution have been tried.
Follow up is important for overall applicability of procedures & improvement of weakness,

which create dissatisfaction on customers. There should be follow up on the action arising
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from a complaint (Medical Protection Society -MPS, 2015).Here the follow up made by the
organization will be investigated using various inputs. The actions exercised by the
management will again be identified. The correcting mechanisms based on the feedback will
also to be seen. Internal policies & procedures of organizations show that they seriously look
on follow up to develop accountability. Organizations which do not have concentration & not
able to transcribe the data collected from customers and do not respond for the request means
that it really losing them by next time.
g)Monitor the complaints handling process
Analyse complaint records to identify serious or recurring problems. Regularly assess

satisfaction with the complaints handling process, for example, by surveying customers who
have complained. Monitor the complaints handling process to ensure the right personnel,
resources and procedure are in place. According to Ombudsman (2007),The organization
complained against must also be heard and its concerns properly considered. A positive
future perception of the organization by the complainant is an important outcome, whether
there will be future dealings between the parties or not. A good complaint handling process
by the scheme with visible and effective mechanisms will impact on wider public reputation
and standing of the organization.
2.1.6 Organization as open systems
The system suggested that organizations and their sub systems are share number of common
features that explain how they are organized and function. The properties are described
below:
Environment: organizational environments are everything beyond the boundaries of the

system that can directly or indirectly affect the performance and outcomes of the
organization. The environmental factors are labour and human capital, raw material, customer
demand, competition and government regulation. Better complaint handling is help to
improve and maintain the effectiveness of the organization.
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Inputs, transformations and outputs: any organizational system is composed of
three related parts: inputs, transformation and outputs. Inputs consist of human resources or
other resources, such as information, energy, and materials, coming into the system. Inputs
are part of and acquired from the organization’s external environment. Transformations are
the processes of converting inputs into outputs. The operations function of the organization is
composed of both social and technological components generally carries out transformations.
The social component consists of people and their work relationships, whereas the
technological component involves tools, techniques and methods of production or service
delivery. Banks, for example, transform deposits into mortgage loans and interest income.
Outputs are the results of what is transformed by the system and sent to the environment.
Thus, inputs that have been transformed represent outputs ready to leave the system.
Feedback: not all information’s are a feedback. But, the information which is used to
control the future functions of the system. The feedback is collected from all department or
employees or customers of the organization. The feedback is playing an important role in the
organization development.
As Thomas and Christopher, (2008) written on their book, the feedback will analysed
according to the goal clarity, task structure, group composition, team functioning and
performance norms.
2.2 Empirical studies
Results of previous studies regarding the compliant handling and its influence, published in
various journals.
Bashir (1969), his title was impact of consumer complaints handling on complainant
satisfaction and behavioural outcomes: a study among the telephone service providers in
Mogadishu, Somaliato examine the relationship between customer satisfaction, loyalty, trust
and positive word of mouth with apology, attentiveness, atonement, facilitation, effort,
explanation and promptness Methodology was using questionnaires` to collect the data and
analysing by SPSS program. Responses to complaints that have significant positive impact on
complainant satisfaction
Hummamand Olena. (2014),the impact of complain management on customer retention to

examine or inspect the aftermath of effective complain management structure in relevance to
- 13 -
customer retention in Banking industry Quantitative approach and distributed questioners for
the selected sample size of the population. Then, analysed the collected data by using SPSS
Complaint management influences customer retention; they were able to exert three formulas
to determine the linear relationships between the variables that stimulate the calculation
process.
Joelet A. (2012), Effects of distributive justice complaints resolution strategies on Customer

satisfaction in Kenya’s banking industry to establish the effect of customer complaint
resolution strategies on customer satisfaction. Customers was selected using systematic
sampling techniques , collect primary data and both descriptive and inferential statistics
were used for data analysis. The results indicates that distributive justice strategies have a
significant positive effect on customer satisfaction
2.3. Conceptual framework
The previous studies were assessed compliant handling related with customer satisfaction.
But, this study was assessed complaint handling at United Bank S.C. based on ISO 10002,
(2008) standards. The study assessed compliant handling on the stated standard. The standard
which was set by the ISO should help the bank to be good in handling of compliant in
business area. The standards were stated in the table below.
These standards are crucial to maintain the customer as well as the bank development, that’s
why the study is needed. The researcher assumed that the increasing of closed and dormant
account numbers were due to poor handling of complaint.
- 14 -
Fig. 2.1 conceptual frame work
Keep
clear Monitor the
Aim to records complaints
handling
resolve
process
complaint
s
ISO 10002
satisfactor Keep
Recruit and STANDARDS FOR
ily customer
train necessary Compliant
informed
staff
handling
Make it Deal with

easy to complaint
complain quickly and fair
Source:ISO 10002, (2008)
- 15 -
CHAPTER THREE
RESEARCH METHODOLOGY
This chapter presents the research design and methodology. This includes the research
design, sample size and sampling technique, data source and collection method and procedure
of data collection. At the end the method of data analysis was presented.
3.1. Research Design

The approach used in this research was a mixed research approach which makes the use of
both quantitative and qualitative descriptive methods. Quantitative method was used to
apply frequency, percentage, mean and standard deviation of respondents' data collected
through questionnaire. The research strategy is a plan of how to answer the research
questions that have been set. The method helps to avoid bias and helps to measure variables
in objective manner. To this end, the data collected was coded into SPSS software and the
frequency and percentage of the data were generated for analysis and interpretation.
Qualitative method was also employed to describe and analyse the information obtained
through interview from department managers of the bank. When used along with
quantitative methods, qualitative research can help to interpret and better understand the
complex reality of a given situation and the implications of quantitative data. Due to these
facts, therefore, a mixed approach of research methods was employed in this study.
3.2. Population and Sampling Techniques

Sampling helps to get information about large populations with less cost, time and more
accuracy. There searcher used dormant, closed and active account holders as a total
population for the study. Because, the researcher believed that this account holders could give
reliable data to final conclusion. According to this, the total population were 6895. Active
account holders are customers with three and above years’ as customers at the branches. The
sample size was selected by simple random sampling techniques which increases accuracy.
This sampling technique helps to reflect the population by more proportional representation.
Which creates equal chance for the population and also the large sample size will give
accurate information to conclude the study.
- 16 -
The researcher used the following Naresh Malhotra, (2007) sample size equation.
Sample size determination

Population Size Target Population
Low Medium High
51-90 5 13 20
91-150 8 20 32
151-280 13 32 50
281-500 20 50 80
501-1,200 32 80 125
1,201-3,200 50 125 200
3,201-10,000 80 200 315
10,001-35,000 125 315 500
35,001-150,000 200 500 800
Table 3.1 Sample size determination
Source: Naresh Malhotra, (2007)
However, the population of the study between the ranges of 3,201- 10,000at medium target
population a sample size of 200would be selected. The selected sample sizes were fair and
easily manageable.
According to Taro Yamane (1967), hence, the total sample size is 200. Number of samples
for each type of customers was calculated by the following formula.
n= N
1+N(a)2
Where n = total number of samples
N = total number of population
a = number of samples in each types of customers
Table 3.2 sample determination by types of customers
- 17 -
NO Type of customers Population Sample
1 Dormant 950 28
2 Closed 1560 45
3 Active (not include dormant account) 4385 127
Total 6895 200
For qualitative approach the researcher used purposive sampling technique. The sample
selected an arbitrary number in the table of random numbers.The structured interview
questions were collected by department managers that were purposely selected. It’s included
Manager of risk management and compliance department, marketing manager, manager,
domestic banking manager, credit manager, finance manager, card payment manager, were
included in the interview. The interview increases the accuracy and reliability of the collected
data.
3.3. Types of Data and Tools/Instruments of Data Collection

According to the study design, data were collected from primary and secondary sources. The
primary data was collected in the form of questionnaire survey and interview. The Questions
in the questionnaire were open and close ended since it is easier to generate statistical
analysis on a larger number of participants. The questionnaire used a 5 point Liker’s scale
ranging strong agree(5), agree (4), neutral (3), disagree (2), and strongly disagree (1). The
secondary data in terms of company information and background history was used in this
study in order to get a deeper understanding about the company.
3.4. Procedures of Data Collection

The questionnaires were distributed to the active account respondents when they were arrived
at the branches. Also, the researcher used phone No of Closed and dormant account holders
from the bank database to find the respondents and to collect survey data. Collection of
responded questionnaire was started after a week from date of administration and continued
for a month. The interview was conducted face to face with the appointed managers. It took
one to two weeks.
3.5. Methods of Data Analysis
- 18 -
The data collected through questionnaire were carefully encoded and interpreted and
the result generated was tabulated. Thus, frequencies, percentages, mean and standard
deviation of the counted responses of the variables were used for descriptive analysis of the
data. Interview responses were also described and combined with the questionnaire response
descriptions. Data analysis methods play an important role for the accuracy of the finding.
The quantitative data that were collected by closed ended questionnaires analysed through
SPSS.
Statistical Package for Social Science used for the descriptive statistical results. Although, the
analysis presented by tables, frequency distribution and percentage. This includes the means,
standard deviations. Values are computed for each variable.
- 19 -
CHAPTER FOUR
DATA ANALYSIS, RESULTS, AND DISCUSSIONS
4.1Introduction
The purpose of this study was to critically assess compliant handling practice of United Bank
S.C. Data were collected from customers and managers of the bank. Two hundred
questionnaires were distributed to the three branches of the bank; all questionnaires were
fully collected by three members of staff additional to the researcher. In this section, the
analysis and interpretation of the collected data through questionnaires and interviews are
resented.
4.2. Findings and Discussion of the Study

4.2.1 General information of the respondents
The general information of the respondents of the questionnaires contains six variables:
gender, age, level of education, account status, number of years as a customer and service
type. As table 4.1 shown, from the total numbers of respondent 98 (49%) were male and 102
51(%)were female.
- 20 -
Table 4.1 General Information of respondents
Valid Cumulative
Frequency Percent (%) Percent Percent
Gender Male 98 49.0 49.0 49.0
female 102 51.0 51.0 100.0
age below 25 54 27.0 27.0 27.0

25-35 78 39.0 39.0 66.0
36-45 39 19.5 19.5 85.5
above 46 29 14.5 14.5 100.0
level of masters
education 10 5.0 5.0 5.0
degree 105 52.5 52.5 57.5

diploma 17 8.5 8.5 66.0
below 12 68 34.0 34.0 100.0
Account closed
status 45 22.5 22.5 22.5
dormant 28 14.0 14.0 36.5

active 127 63.5 63.5 100.0
Number of 3 to 5 years 109 54.5 54.5 54.5

years
6 and above 91 45.5 45.5 100.0
service type ATM users 35 17.5 17.5 17.5
Mobile Banking
9 4.5 4.5 22.0
users
Internet Banking
7 3.5 3.5 25.5
users
Agent Banking users 7 3.5 3.5 29.0
Loan service users 23 11.5 11.5 40.5
Foreign exchange
16 8.0 8.0 48.5
users
All service/product
103 51.5 51.5 100.0
users
Source: Source: Researcher’s Survey Result from Primary Data Sources
- 21 -
As revealed in the table the above, the majority of the customers (39percent) range from 25-
35, while 27%fall below 25 years, 19.5%of the customers age between 36 to 45 and the
remaining 14.5%customers above 46 years. It also shows that the youth populations are
superior users of the bank service. Highest level of education recorded was at degree level
which is 52.5%. About 34%of the respondents have education at or below grade 12. The
remaining 8.5%and 5%of the respondent were diploma and masters, respectively.
The table shows 22.5% of respondents were closed account status, 14%of the respondents
were dormant account status and 63.5%of the respondents were active account status.
According to table 4.5 below, 54.5%and 45.5%of the respondent were 3 to 5 years and 6
years and above respectively.
The bank branches give different types of service to their customers. The table below shows
51.5%of the respondent use all types of the bank service, 17.5%of the respondent uses ATM
service, 11.5%of the respondent uses loan / credit service of the bank, the remaining
4.5percent, 3.5%and 3.5%of the respondent uses mobile banking, internet banking and agent
banking service.
- 22 -
4.2.2 Survey information of the respondents
The survey part of analysis described about the seven ISO standards that filled by the
respondents. The result was analysed through frequency, percentage, mean and standard
deviation.
4.2.2.1 Close ended survey
a)Make it easy to complain
Table 4.2 make it easy to complain survey analysis

Frequency (percentage)
deviation
Standard
disagree
disagree
Strongly
Strongly
neutral
agree
agree
mean
A The customers 23(11.5%)
can complain 82(41%) 49(24.5%) 25(12.5%) 21(10.5%) 2.69 1.15
freely
B The way of
forwarding the 15 (7.5%) 98(49%) 9(4.5%) 56(28%) 22(11%) 2.86 1.2
complaint is
clearly known by
customers
C The complaint 195 (97.5%) 0% 0% 5(2.5%) 0% 2.05 0.31
forms are
available to the
customers
D The complaint 24 (12%) 76(38%) 5(2.5%) 49(24.5%) 46(23%) 3.09 1.42
format have
familiar words
for all type of
customers
E The format is 24 (12%) 53(26.5%) 7(3.5%) 84(42%) 32(16%) 3.24 1.33
clear and easy to
fill down
As indicated in table 4.2item (A) Respondents were asked whether the customers can
complain freely. In that regard, 11.5% of the respondents strongly agreed with the issue while
41% agreed, 12.5% of them disagree,10.5% of them strongly disagree and 24.5% of the
respondents are uncertain. Which implies that, majority of the customers is agreed freely
complaining.
- 23 -
In the same table item (B) respondents were asked the way of forwarding the complaint is
clearly known by customers. In this regard, 7.5% of the respondents strongly agreed and
49% of them also agreed. Oppositely, 28% of the respondent disagree, 11% of them
strongly disagree. The remaining 4.5% were neutral. As it can be seen on item (C) of
table 4.2, 97.5% of respondents strongly agreed the complaint forms are available to the
customers where as 2.7% disagreed. The survey result also shows 2.05 mean and 0.31
Standard Deviation. This means, the complaint form is available in the counter.
On table 4.7 item (D) respondents were asked the complaint format have familiar words for
all type of customers; 12% of the respondents strongly agree at the same time 38% of them
agreed while 2.5% of the respondents were uncertain, 24.5% of them disagree and 23%
strongly disagree. The result also included its 3.09 mean and 1.42 Standard Deviation. This
means, the complaint formats have not familiar words for all type of customers.
Regarding the question presented whether the format is clear and easy to fill down on
table 4.2 item (E) 12% of the respondents strongly agree while 26.5% of them agree and
3.5% of the respondents were uncertain where as 42% of respondents disagree and 16% of
them strongly disagree. 3.24 Mean and 1.33 Standard Deviation were the result for item E.
the mean and the Standard Deviation shows, the item have negative response from the
respondent.
Referring the above table, about more than half of the respondent said that the format
prepared for customer to fill their feeling was not easily understandable and clear.
- 24 -
b) Recruit and train necessary staff
Table 4.3 Recruit and train necessary staff survey analysis
Frequency (percentage) mean
deviation
Standard
disagree
disagree
Strongly
Strongly
neutral
agree
agree
A The customers 27(13.5%) 144(72%) 3(1.5%) 17(8.5%) 9(4.5%) 2.19 0.93
know the
responsible party
for their
complaint
B Customer 36(18%) 50(25%) 4(2%) 91(45.5%) 19(9.5%) 3.04 1.34
complaints are
handled by
trained staff
C The 36(18%) 45(22.5%) 4(2%) 98(49%) 17(8.5%) 3.08 1.33
staffs/employees
whose handled
the complaint are
well known
about how to
handle it
D The 11(5.5%) 58(29%) 4(2%) 122(61%) 5(2.5%) 3.26 1.08
staff/employees
are
knowledgeable
about all the
service of the
bank
As can be seen in table 4.3 item (a) respondents were asked the customers know the
responsible party for their complaint. In this regard, 72% of the respondents agree and
13.5% of them strongly agree where as 8.5% of them disagree, 4.5% strongly disagree and
1.5% of the respondents were uncertain. 2.19 mean with 0.93 Standard Deviation. This
means, the item has positive response.
Item (b) of table 4.3 Assessed whether Customer complaints are handled by trained staff25%
agree, 18% strongly agree, 45.5% disagree, 9.5% of the respondents strongly disagree with
the statement where as 2% of them are uncertain. 3.04 mean with 1.34 Standard Deviation.
The mean and the standard deviation reflect, the item needs high attention.
As it is shown on 4.8 above item (c), respondents were asked about the
staffs/employees whose handled the complaint are well known about how to handle the
- 25 -
compliant. In this regard, 18% of strongly agree, 22.5% of the respondents agreed while 2%
are uncertain and 49% of the respondents confirm their disagreement while 8.5% strongly
disagree, with 3.08 and 1.33 mean and standard deviation, respectively. The mean and the
standard deviation reflect, the item needs high attention.
Item (d) on table 4.3 show, respondents were asked about the staff/employees are
knowledgeable about all the service of the bank. In this regard,5.5% strongly agree, 61%
disagree, 29% of them agree and 2.5% strongly disagree. The remaining 2% were neutral.
3.26 and 1.08 mean and Standard Deviation respectively. The mean and the standard
deviation reflect, the item needs high attention than others item.
As shown in the table, above 61% of respondents said that the bank employees are not
knowledgeable of all the services rendered by the bank. While, 5.5 % of respondents
answered that employees of the bank have knowledge about the services of the bank this
shows that most of employees of the bank are not knowledgeable of the all the bank services.
c)Keep customer informed

Table 4.4 Keep customer informed survey analysis
S. deviation
disagree
disagree
Strongly
Strongly
neutral
agree
agree
mean
A The bank gives

awareness to the 39(19.5%) 95(47.5%) 10(5%) 45(22.5%) 1(5.5%) 2.47 1.19
customers about how to
complain
B Complaints of 20(10%) 124(62%) 5(2.5%) 30(15%) 21(10.5%) 2.54 1.18
customers are accepted
in a positive manner
C The customers feel good 72(36%) 73(36.5%) 5(2.5%) 42(21%) 8(4%) 2.21 1.25
when complaining
D The customers were 35(17.5%) 125(62.5%) 1(0.5%) 16(8%) 23(11.5%) 2.33 1.19
coming back after
complaining
E The customers do not 7(3.5%) 147(73.5%) 5(2.5%) 20(10%) 21(10.5%) 2.51 1.08
feel comfortable after
complaining.
- 26 -
On table 4.4 item (A) respondents were asked whether the bank gives awareness to the
customers about how to complain. In this regard, 19.5% of the respondents strongly agree at the
same time 47.5% of them agreed while 5% of the respondents were uncertain, 22.5% of them
disagree and 5.5% strongly disagree. The result also included its 2.47 mean and 1.19
Standard Deviation. The mean and the standard deviation reflect, the item needs less attention
than item B and E.
Item (B) of table 4.4, Assessed whether Complaints of customers are accepted in a positive
manner. In this regard, 26.5% agree, 16% strongly agree, 34% disagree, 20.5% of the
respondents strongly disagree with the statement where as 3% of them are uncertain. 2.54
mean with 1.18 Standard Deviation. The mean and the standard deviation reflect, the item
needs high attention than others. Regarding the question presented whether the customers feel
good when complaining on table 4.9 item (C) 36% of the respondents strongly agree while
36.5% of them agree and 2.5% of the respondents were uncertain where as 21% of
respondents disagree and 4% of them strongly disagree. 2.21 Mean and 1.25 Standard
Deviation were the result for item C. The mean and standard deviation reflects, the item is
positively acceptable.
On table 4.4 item (D), the respondents were asked whether the customers were coming back
after complaining. In this regard, 22% of the respondents strongly agree at the same time
24% of them agreed while 0.5% of the respondents were uncertain, 35.5% of them disagree
and 22% strongly disagree. The result also included its 2.33 mean and 1.19 Standard
Deviation. The mean and standard deviation reflects, the item is positively acceptable. As
table 4.4 item (E) show, the respondents were asked the customers do not feel comfortable
after complaining. In this regard, 19.5% of the respondents agree and 5.5% of them
strongly agree where as 37% of them disagree, 35.5% strongly disagree and 2.5% of the
respondents were uncertain. 2.51 mean with 1.08 Standard Deviation. The mean and standard
deviation reflects, the item is need attention with item B.
- 27 -
Table 4.5 Keep clear records survey analysis
Frequency /percentage
s. deviation
disagree
disagree
Strongly
Strongly
neutral
agree
agree
mean
A The customers get 46/23% 31/15.5% 0 91/45.5% 32/16% 3.16 1.47
his/her complaint form
for follow-up
B The customers can 52/26% 115/57.5 0 18/9% 15/7.5% 2.15 1.13
communicate their %
complaint orally.
Table 4.5 item (A), the respondents were asked the customers get his/her complaint
form for follow-up. In this regard, 15.5% of the respondents agree and 23% of them
strongly agree where as 45.5% of them disagree and 16% strongly disagree. 3.16 mean with
1.47 Standard Deviation. The mean and standard deviation reflects, the item is need high
attention or negatively acceptable.
On table 4.5 item (B), respondents were asked whether the customers can communicate
their complaint orally. In this regard, 26% of the respondents strongly agree at the same
time 57.5% of them agreed while 9% of them disagree and 7.5% strongly disagree. The result
also included its 2.15 mean and 1.13 Standard Deviation. The mean and standard deviation
reflects, the item is positively acceptable.
- 28 -
e) Deal with complaint quickly and fairly
Table 4.6 Deal with complaint quickly and fair survey analysis
Frequency /percentage
Standard
deviation
Strongly
Strongly
disagree
disagree
neutral
agree
agree
mean
A Customer complaints get quick 14/7% 35/17 0 91/45.5 60/30% 3.74 1.25
responses .5% %
B The compliant of customers are 14/7% 79/39 0 64/32% 43/21.5% 3.22 1.35
treated equally and fairly. .5%
C The customers are satisfied for 52/26% 115/5 0 18/9% 15/7.5% 2.15 1.13
quick improvement of the 7.5%
service
D The customers know the 6/3% 26/13 0 111/55. 57/28.5% 3.93 1.04
complaint process and how 5%
much time it takes
E The customer’s compliant gets 24/12% 51/25 7/3.5% 81/40.5 37/18.5% 3.28 1.35
response within one business .5% %
day

On table 4.6 item (A), respondents were asked whether the Customer complaints get quick
responses. In this regard, 7% of the respondents strongly agree at the same time 17.5% of
them agreed while 45.5% of them disagree and 30% strongly disagree. The result also
included its 3.74 mean and 1.25 Standard Deviation. The mean and standard deviation
reflects, the item is need high attention next to item D.
Item (B) of the same table, assessed whether the compliant of customers are treated equally
and fairly. In this regard, 39.5% agree, 7% strongly agree, 32% disagree, and 21.5% of the
respondents strongly disagree. 3.22 mean with 1.35 Standard Deviation. The mean and
standard deviation reflects, the item is positively acceptable next to item C.
Regarding the question presented on table 4.6 item (C),whether the customers are satisfied
for quick improvement of the service. In this regard, 26% of the respondents strongly agree
while 57.5% of them agree where as 9% of respondents disagree and 7.5% of them strongly
disagree. 2.15 Mean and 1.13 Standard Deviation were the result for item C. The mean and
standard deviation reflects, the item is positively acceptable.
On table 4.6 item (D), respondents were asked whether the customers know the complaint
process and how much time it takes. In this regard,3% of the respondents strongly agree at
- 29 -
the same time 13% of them agreed while 55.5% of them disagree and 28.5% strongly
disagree. The result also included its 3.93 mean and 1.04 Standard Deviation. The mean and
standard deviation reflects, the item is need high attention than others.
As table 4.6 item (E) show, the respondents were asked the customer’s compliant gets
response within one business day. In this regard,25.5% of the respondents agree and 12%
of them strongly agree where as 40.5% of them disagree, 18.5% strongly disagree and 3.5%
of the respondents were uncertain. 3.28 mean with 1.35 Standard Deviation. The mean and
standard deviation reflects, the item is need attention next to item A.
f) Aim to resolve complaints satisfactorily

Table 4.7 Aim to resolve complaints satisfactorily survey analysis
Frequency (percentage) mean
deviation
Standard
agree
agree
neutr
disagr
disagr
gly
gly
Stron
Stron
al
ee
ee
A The customers compliant is 33/16.5 48/24 8/4 99/49.5 12/6 3.05 1.28
investigated and solved
without inflexible procedure
B The bank is dedicated to 12/6 29/14. 0 99/49.5 60/30 3.83 1.18
respond the complaint of the 5
customers
C The customers get response 13/6.5 40/20 0 87/43.5 60/30 3.71 1.27
to their complaints
D The bank follows up the 13/6.5 26/13 0 102/51 59/29.5 3.84 1.18
level of satisfaction of the
customer on the solution of
the complaint.
E The solution or the 14/7 33/16. 93/46.5 60/30 3.76 1.24
improvement made by the bank 5
meets customers request
F The complaint response is 36/18 63/31. 10/5 75/37.5 16/8 2.86 1.31
satisfactory 5
As indicated in table 4.12item (A), Respondents were asked whether the customers compliant
is investigated and solved without inflexible procedure. In this regard, 16.5% of the
respondents strongly agreed with the issue while 24% agreed in the meantime 49.5% of
them disagree, 6% of them strongly disagree and 4% of the respondents are uncertain.
The survey result also shows 3.05 mean and 1.28 Standard Deviation. The mean and
standard deviation reflects, the item is positively acceptable.
- 30 -
In the same table item (B), respondents were asked the bank is dedicated to respond the
complaint of the customers. In this regard, 6% of the respondents strongly agreed and
14.5% of them also agree. Oppositely, 49.5% of the respondents disagree and30% of them
strongly disagree. The survey result also shows 3.83 mean and 1.18 Standard Deviation. The
mean and standard deviation reflects, the item is need attention next to item D and F.
As can be seen on table 4.12 item (C), 6.5% of respondents strongly agreed the customers get
response to their complaints where as 43.5% disagreed. The survey result also shows 3.71
mean and 1.27 Standard Deviation. The mean and standard deviation reflects, the item is
positively acceptable next to item A.
On table 4.12 item (D), respondents were asked the bank follows up the level of satisfaction
of the customer on the solution of the complaint. In this regard, 6.5% of the respondents
strongly agree at the same time 13% of them agreed while 51% of them disagree and 29.5%
strongly disagree. The result also included its 3.84 mean and 1.18 Standard Deviation. The
mean and standard deviation reflects, the item is need attention next to item F.
On table 4.12 item (E), respondents were asked the solution or the improvement made by the
bank meets customer’s request. In this regard, 7% of the respondents strongly agree while
16.5% of them agree and 46.5% of respondents disagree and 30% of them strongly disagree.
3.76 Mean and 1.24 Standard Deviation were the result for item E.
The last item of the standard question presented, the complaint response is satisfactory got
18% strongly agree, 31.5 agree, 5% neutral, 37.5% disagree and 8% strongly disagree. 2.86
Mean and 1.31 Standard Deviation. The mean and standard deviation reflects, the item is
positively acceptable.
- 31 -
g) Monitor the complaints handling process
Table 4.8 Monitor the complaints handling process survey analysis
Standard
deviation
Strongly
Strongly
disagree
disagree
neutral
agree
agree
mean
A The complaint of the 36/18 71/35.5 10/5 60/30 23/11.5 2.86 1.31
customers are processed on
time
B The complaint is handled by 43/21.5 62/31 6/3 58/29 31/15.5 2.82 1.35
the right person/place(box)
C The complaint is handled 14/7 35/17.5 91/45.5 60/30 3.74 1.25
and solved on time
D Complaint handling of the 10/5 26/13 101/50.5 63/31.5 3.91 1.13

bank is effectively
monitored.
On table 4.8 item (A), respondents were asked the complaints of the customers are processed
on time. In this regard, 35.5% of the respondents agree and 18% of them strongly
agree where as 30% of them disagree and 11.5% strongly disagree the remaining 5% neutral.
The 2.86 mean and 1.31 Standard Deviation reflects, the item is positively acceptable next to
item B.
On table 4.13 item (B), respondents were asked whether th e complaint is handled by the right
person/place (box). In this regard, 21.5% of the respondents strongly agree at the same time
31% of them agreed while 29% of them disagree and 15.5% strongly disagree the remaining
3% neutral. The result also included its 2.82 mean and 1.35 Standard Deviation. The mean
and standard deviation reflects, the item is positively acceptable.
Item (C) of the same table assessed, whether complaint is handled and solved on time. In this
regard,17.5% agree, 7% strongly agree, 45.5% disagree, and 30% of the respondents strongly
disagree. 3.74 mean with 1.25 Standard Deviation. The mean and standard deviation reflects,
the item is need high attention next to item D.
- 32 -
Regarding the question presented whether the Complaint handling of the bank is effectively
monitored , on table 4.13 item (D),5% of the respondents strongly agree while 13% of them
agree where as 50.5% of respondents disagree and 31.5% of them strongly disagree. 3.91
Mean and 1.13 Standard Deviation were the result for item D. The mean and standard
deviation reflects, the item is need high attention.
Finally, 50.5% of the respondents answered that customer complaints handling was not
effectively monitored and 5% of them said they were strongly agreed on bank effectiveness
on customer complaints handling, while none of the respondents say no or yes. By this, it can
said that the bank did not handle customer complain effectively so as to improve its service.
4.2.2.2 Open ended survey
In open ended part, there was only one question, which provides a space if the customers
have any comment on complaint handling process of the bank. Majority of the respondent
(86%) suggested that the bank must improve the responding time of their complaint.
4.3Data collected through interview

In order to get deep understanding about complaint handling practice of United Bank,
in-depthinterview was conducted with department managers and division heads.
Accordingly, the interviewees’ responses to the questions are depicted briefly as follows.
a) Summary of ‘‘How are customers forwarding their complaints on the bank service’’
The customers forward their complaint directly to the managers or assistance manager
of the branch orally. Complaining orally has less probability of getting response.
Because, it’s not recorded properly for follow up and monitoring purpose. In the other
way, the customers sent the complaint by using suggestion box and the bank phone
number.
b) Summary of ‘‘How many customer complaints are usually received by the bank in a
week’’
The numbers of the complaints was not specifically known by each department.
Because, oral complain of the customers are missed from recorded. As the managers of
department said, fewer complaints are received from the customers in a week except
card payment department. Due to weak performance of the ATM the customers
complained on its case. In the ATM case, 10 and more complaints of the customers
deliver to the department from one branch per week.
- 33 -
c) Summary of ‘‘Did the bank recruit and train the necessary staff for complaint
handling in each branch’’
The bank didn’t recruit and train compliant handling officer for each branch. Just the
bank received complaint by any members of the staff. The bank has one compliant
officer at head office. This can be creating load of work for the officer. Finally, solving
or responding the customer’s complaints are late in time.
d) Summary of ‘‘How does the bank inform customers about the procedures of
complaint’’
The bank has informed by every staff members at the counter. In addition, suggestion
box and printed format is already available in each branch. And also the bank informs the
customers by sending text message when withdrawal or deposit is made. The text
messages provide additional phone numbers for the customers if any complain or
suggestion they can forward freely.
e) Summary of ‘‘How does the bank handle a complaint that is forwarded orally’’
The manager or other members of the staff could take a note if the complaint that’s easy
to solve, it would be solved on time. If the complaints are difficult to solve on time, it
would be forward to the board of directors on meeting.
f) Summary of ‘‘Is customer’s complaint handled fairly and quickly’’
Yes. The success of the business is depending on their customer. So, the complaints of the
customers are handled fairly and quickly as much as possible. Some complaints are face
with rule and procedure of the bank. At this time, branch managers, assistance branch
managers and other staff members are go to break it. It is difficult and risky for them.
g) Summary of ‘‘Is the process of complaint handling of the bank open and
transparent’’
All the managers of the department responses are agree the open and transparent of
compliant handling practice of the bank.
h) Summary of ‘‘How long it has taken to solve the complaint of the customers’’
The complaints of the customers are solved most of the time within 2 days except Card
payment department. The complaint that related to ATM takes from one week to one
month. Due to a lot of process and procedure the response of complaints would be late in
time.
- 34 -
i) Summary of ‘‘Does the bank follow-up the complaint solution if satisfactory’’
Due to small number of work force on complaint handling the bank couldn’t follow-up
compliant solution satisfactory. But, at a branch level the branch managers or staff
members follow up the complaint solution satisfactory.
j) Summary of ‘‘How does the bank monitor the process of complaint handling’’
The bank monitor the process of complaint handling by using complaint records that sent
from the branches.
4.4 Summary of the finding

a) Make it easy to complain
The highest Mean of the stated items in the first ISO standard was the compliant format
clearness and easiness to fill down. Majority of the respondent didn’t agree regarding to this
item. The item has 3.24 mean and 1.33 Standard Deviation.
b) Recruit and train necessary staff
As the survey collected data result shown, the bank didn’t recruit and train necessary staff
that dedicated to complaint handling in each branch. It has 3.26 Mean with 1.08 Standard
Deviation. The interview data supported this result.
c) Keep customer informed
Regarding with informing how complaint is forwarding to the bank, the managers of the bank
by interview data collection means as well as the survey result shown every customers are
informed by SMS text message and all respondents are agreed the bank is highly working on
it.
The survey results shown that, the complaint of the customers are most of the time forwarded
orally. The highest mean is 3.16 and 1.47 Standard Deviation for the customers complaints
can’t get when the customers follow up their complaint because of oral complaining.
d) Deal with complaint quickly and fair
Depending on the result of survey and interview data, the customer complaints were not responding
quickly. The interview data reflected that, due to low manpower the responding compliant of
customers took more time. The Mean 3.93 and 1.04 Standard Deviation, it has the highest mean from
others items.
- 35 -
f) Aim to resolve complaints satisfactory
The results had shown 3.84 mean and 1.18 Standard Deviation. As stated in the previous
finding, the bank didn’t recruit and assign necessary staff for complaint handling process in
each branch. Due to this, nobody can give attention for follow up of the resolved complaints
satisfactory.
g) Monitor the complaints handling process
Customers are forwarding their complaint looking for quick solution and improvement on the
bank service. Due to this, the respondent disagreed effective monitoring of complaints with
3.91 Mean and 1.13 Standard Deviation.
- 36 -
CHAPTER FIVE:
CONCLUSIONS & RECOMMENDATIONS
In this chapter the conclusions and recommendations were discussed. For clarity purpose, the
conclusions are based on the research objectives of the study. Based on the findings of the
study recommendations are made to the United Bank S.C.
5.1. Conclusions
The following conclusions are drawn based on Mean and Standard deviation of the finding.
a) The complaint format words are not familiar to all kind of customer. Which needs
additional support from the staff members and the customers are not fill down by
them.
b) Majority of the respondents were disagreed the staff/employees knowledgeableness
about all the service of the bank. Employees are knowledgeable about only their
position.
c) The complaint of the customers are forwarded orally rather using the format. The
bank has recorded less number of complaints on their system. The interview data also
supported this conclusion.
d) The customers did not know how much time it takes for getting solution for their complaint.
e) Nobody can give attention for follow up of the resolved complaints satisfactory.
f) Customers are forwarding their complaint looking for quick solution and
improvement on the bank service.
- 37 -
5.2. Recommendation
On the basis of the results and conclusions of the study, the following recommendations were
suggested so as to be considered future intervention strategies which are aimed at
improving the complaint handling practice of the bank.
a) Complaint format of the bank should be enrich with familiar words, it makes easy to
the customer when filling.
b) The bank must give attentions for recruiting and assigning necessary staff for
complaint handling in each branch. Because, it’s may the reason for late respond of
the complaint. This can be the cause for customer dissatisfaction and closing their
accounts.
c) The survey result also recommend to keep going the good performance in customer
informing how forwarding their complaint. Currently the bank is well done on
informing its customers.
d) The bank should solve the problem of lack of record keeping by hiring dedicated
complaint handling officer and the officer record all oral complaint should follow up
on time.
e) The bank managers must improve time of complaint handling process by hiring
additional complaint handling officer, it can minimize load of work on one officer at
head office and also the responses can be faster than before.
f) The bank should follow up and monitor all compliant status and the level of
satisfaction of the customers.
- 38 -
References
AbhikK. and Venkataramana S R (2016).Converting complaints to customer experience: A
framework to redefine the complaint management process in Bank. India: Infosys
limited Bengaluru.
Allen F. Wysocki, Karl W. Kepner, Michelle W. Glasser, Derek Farnsworth, and Jennifer L.
Clark, October (2015).Customer Complaints and Types of Customers
http://edis.ifas.ufi.edu; University of Florida/IFAS Extension.
Bashir A. (2008). Impact of consumer complaints handling on complainant satisfaction and

behavioural out comes. Unpublished Master’s thesis, University of Malaysia.
Brenda B. and Michael B.(2006).The NTL handbook of Organization development and
change. San Francisco: Pfeiffer.
British and Irish Ombudsman Association (April 2007). Guide to Principles of good complaint
Handling, British: Albert Facey House
Com. Reg(2010) Quality Standard Customer Service Complaints Handling, Version 1,pdf;
ISO 10002 (2008).Improving the way that companies deal with complaints. UK:BSI Group.
Gary N. McLean(2006). Organization development principles , processes, performance.

San Francisco: Berrett-Koehler.
Gronroos, C. (2000) Service Management and Marketing: A Customer Relationship

Management Approach. 2nd ed. West Sussex: John Wiley & Sons, Ltd.
HummamW. and OlenaK. (2014). The impact of complain management on customer
retention. Unpublished Master`s thesis, Gavle University.
Joel, Michael, Charles and Hazel (2012).European Journal of Business and Social Sciences,
Vol. 1, No. 6, pp 87-96, October 2012. URL: http://www.ejbss.com/recent.aspx.ISSN
Kotler P, Armstrong G, Saunders J, Wong V. (1999). Principles of Marketing, Second

Edition, Prentice Hall Inc. New York.
Medical Protection Society, (2015), Six steps to successful complaint resolution, pdf,
www.mps.org.uk
Mohammad Z. Shammout & Shafig, (2014). The Impact of Complaints' Handling on
Customers' Satisfaction in Jordan. Journal of international business research:7(11).
- 39 -
Naresh M. (2007). Marketing Research an Applied Approach. Butterworth Heinemann;
Oxford, England.
Ombudsman Western Australia, Revised, (2010). Level 2, Guidelines on Compliant Handling.British:

Albert Facey House.
Ombudsman Western Australia, Revised, (2016). Level 2, Guidelines on Effective handling of
complaints made to your organisation. British: Albert Facey House.
Parasuraman A. , Valarie A., Zeithaml A., Leonard. L., & Berry L. (1985).A conceptual
model of service quality and its implications for future research. Journal of Marketing,
49, 41-50.
Saunders, M.N.K, Thornhill, A.Lewis,P.,(2009). Research methods for business students,
England: print hall.
Stephen P. Robbins Mary Mathew (1990).Organization theory structure. Design and
application.3rd edition. Englewood Cliffs: Prentice Hall.
Scottish Public Services Ombudsman (SPSO),2011, pdf, The Further Education Model
Complaints
Thomas G. Cummings& Christopher G. Worley ,(2008).Organization Development & Change 9th

Edition. Canada: Nelson Education, Ltd.
West Lothian Council, February 2013, Complaints Handling Procedure;
Yamane, T. (1967). Statistics, An Introductory Analysis, (2nd ed.), New York: Harper and Row.
- 40 -
Appendices A
Dear Sir/Madam,
This Questionnaire is designed to be filled by customers of United Bank S.C. It is prepared to

collect information about customers’ complaint handling of the bank. Your response will be
treated confidential and used for only academic purpose. In this regard, your kind and serious
cooperation will have significant effect on the result of the study.
Note:-
 There is no need to write your name

 Please tick the appropriate box for your answers.
 Thank you in advance for your cooperation
 If you need more information don’t hesitate you can contact me through E-mail
[email protected].
General Information
1. Sex  Male  Female
2. Age below 25  25-35  35-45  Above 45
3. Educational level
 Master  Degree  Diploma 12th and below
4. Your account status
 Closed  Dormant  Active
5. Number of years as a customer of United Bank S.C
 1 year – 2 years  3 years- 5 years  6years and above
6. Which service/s of the bank are you using?
 ATM  Mobile Banking  Internet Banking  Agent Banking
 Loan/credit service  Foreign exchange service
Other _______________________ All
._______________________,
- 41 -
Survey information
I-In your opinion, how does the complaint handling of United Bank S.C meet your? Use
these responses from 1 to 5 to answer, where: 1.Strongly Disagree, 2- Disagree, 3- Neither
Agree/nor Disagree, 4-Agree 5-Strongly Agree.
S.No Make it easy to complain Neu
Strongly Agree
. tral
(I
Disagree
Disagree
don
Strongly
’t
Agree
Kno
w)
1 2 3 4 5
1 The customers can complain freely
2 The way of forwarding the complaint
is clearly known by customers
3 The complaint forms are available to
the customers
4 The complaint format have familiar
words for all type of customers
5 The format is clear and easy to fill
down
Recruit and train necessary staff
6 The customers know the responsible party
for their complaint
7 Customer complaints are handled by
trained staff
8 The staffs/employees whose handled
the complaint are well known about
how to handle it
9 The staff/employees are
knowledgeable about all the service
of the bank
Keep customer informed
10 The bank gives awareness to the
customers about how to complain
11 Complaints of customers are
accepted in a positive manner
12 The customers feel good when complaining
13 The customers were coming back after

complaining
- 42 -
14 The customers do not feel comfortable after
complaining.
Keep clear records
15 The customers get his/her complaint

form for follow-up
16 The customers can communicate
their complaint orally.
Deal with complaint quickly and fair
17 Customer complaints get quick
responses
18 The compliant of customers are
treated equally and fairly.
19 The customers are satisfied for quick
improvement of the service
20 The customers know the complaint
process and how much time it takes
21 The customer’s compliant gets
response within one business day
Aim to resolve complaints satisfactorily
22 The customers compliant is investigated and
solved without inflexible procedure.
23 The bank is dedicated to respond the
complaint of the customers
24 The customers get response to their
complaints
25 The bank follows up the level of
satisfaction of the customer on the
solution of the complaint.
26 The solution or the improvement
made by the bank meets customers
request
27 The complaint response is
satisfactory
Monitor the complaints handling process
28 The complaint of the customers are
processed on time
29 The complaint is handled by the
right person/place(box)
30 The complaint is handled and solved
on time
31 Complaint handling of the bank is
effectively monitored.
- 43 -
32. Any comment on complaint handling process of the bank
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_____________________________________________________
Thank you for your time
- 44 -
Appendices B
This interview is prepared to obtain information about complaint handling process at

UNITED Bank managers.
a) How are customers forwarding their complaints on the bank service?

b) How many customer complaints are usually received by the bank in a
week?
c) Did the bank recruit and train the necessary staff for complaint
handling in each branch?
d) How does the bank inform customers about the procedures of
complaint?
e) How does the bank handle a complaint that is forwarded orally?
f) Is customer’s complaint handled fairly and quickly?
g) Is the process of complaint handling of the bank open and
transparent?
h) How much time it taken to solve the complaint of the customers?
i) Does the bank follow-up the complaint solution if satisfactory?
10) How does the bank monitor the process of complaint handling?
- 45 -

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ST.

ASSESSMENT OF COMPLAIANT HANDLING PRACTICE

A THESIS SUBMITTED TO ST.MARY’S UNIVERSITY,

ASSESSMENT OF COMPLAINT HANDLING PRACTICE AT

APPROVED BY BOARD OF EXAMINERS

I, the undersigned, declare that the thesis entitled “ASSESSMENT OF COMPLAINT

NAME: MAHLET TESHOME

Advisor’s Name: Elias Nour (PhD)

Acronyms & abbreviation………………………………………………………….. Viii

CHAPTER ONE: INTRODUCTION ……………………………………………………... 1

1.1. Background of the Study……………………………………………………………… 1

1.2. Statement of the Problem……………………………………………………… ……... 2

1.3. Research Questions………………………………………………………………….... 3

1.4. Objectives of the Study……………………………………………………………….. 3

4.1.1 General Objective……………………………………………………………. 3

1.5. Significance of the Study……………………………………………………………… 3

1.6. Scope of the Study……………………………………………………………………. 4

1.7 Limitation of the study………………………………………………………………… 4

1.8. Definition of Terms…………………………………………………………………… 4

CHAPTER TWO:REVIEW OF RELATED LITERATURE……………………………. 5

2.1 Theoretical literature review…………………………………………………………… 5

2.1.1. Definition of Service………………………………………………………… 5

2.1.2. Definition of Complaint handling…………………………………………… 7

2.1.3. Objective of complaining……………………………………………………. 7

2.1.4. Benefit of good complaint handling………………………………………… 7

2.1.5. Complaint handling international standards………………………… 8

2.1.6. Organization as open systems………………………………………..12

2.3. Conceptual framework………………………………………………………… 13

CHAPTER THREE:RESEARCH METHODOLOGY………………………… 16

3.1. Research Design………………………………………………………………16

3.2. Population and Sampling Techniques………………………………………...16

3.3. Types of Data and Tools/Instruments of Data Collection…………………… 18

3.4. Procedures of Data Collection……………………………………………….. 18

3.5. Methods of Data Analysis…………………………………………………….. 19

DATA PRESENTATION, ANALYSIS AND INTERPRETATION…………….. 20

4.2. Results/Findings and Discussion of the Study………………………………… 20

4.2.1 General information of the respondents of the questionnaires………. 20

4.2.2 Survey information of the respondents of the questionnaires………...20

4.2.2.1 Close ended survey………………………………………… 23

4.2.2.2 Open ended survey…………………………………………. 33

4.3 Data collected through interview………………………………………………. 33

4.4 Summary of the finding………………………………………………………... 35

CHAPTER FIVE: CONCLUSIONS & RECOMMENDATIONS………………... 37

CBE: Commercial Bank Of Ethiopia

Table 3.1 Sample size determination………………………………………………. 17

Table 3.2 sample determination by types of customers……………………………. 18

Table 4.1 General information of the respondents………………………………….21

Table 4.2 make it easy to complain survey analysis……………………………….. 23

Table 4.3 Recruit and train necessary staff survey analysis……………………….. 25

Table 4.4 Keep customer informed survey analysis……………………………….. 26

Table 4.5 Keep clear records survey analysis……………………………………… 28

Table 4.7 Aim to resolve complaints satisfactorily survey analysis……………….. 30

Table 4.8 Monitor the complaints handling process survey analysis…………........ 32

KEY WORDS: complaint handling and ISO

1.1. Background of the Study

According to Gary (2006), “The goal of organizational development is to improve

United bank established as a share company on the tenth of September,1998 in accordance

1.2. Statement of the Problem