Modeling the influence of EFQM criteria on employees satisfaction and loyalty in transition economy: The study of banking sector in Serbia

Marija Savić,Ivan Mihajlović,Živan Živković,Predrag Đorđević,Đorđe Nikolić

doi:10.5937/sjm9-4972

Abstract

The paper presents the results of empirical research on the effects of some criteria of the EFQM excellence model on satisfaction and loyalty of the employees in the banking sector in Serbia. All but one of the hypotheses in the defined model were proven by statistical evaluation of empirical results. The one which could not be proven is the hypothesis of a positive impact of the organization's relationship toward security and society on the business result, which makes specificity of transitional economic conditions in which the studied banking sector operates. Statistical analysis was performed using V.16 LISREL software package where statistical significances of the studied set were defined together with b and t values of the defined paths in the defined model. Researches have shown that criteria of EFQM excellence model can be used to develop and improve the functioning of the banking system in Serbia and develop the TQM practice.

Highlights

The EFQM excellence model involves nine criterions and the relative importance of each criterion is indicated by the criterion weight structure (EFQM, 2005)
Note: * significance level of p < 0.05; ** significance level of p < 0.01. Their attitude that safety and cooperation with society negatively influences the increase in business results. These results prove general hypotheses of this study and show that the criteria of the EFQM excellence model have positive implications on the satisfaction and loyalty of employees in the banking sector in Serbia
The results indicate that through the defined model the strength of the correlation weakens in the direction of the defined hypotheses

Summary

Introduction

The EFQM excellence model involves nine criterions and the relative importance of each criterion is indicated by the criterion weight structure (EFQM, 2005). M.Savić / SJM 9 (1) (2014) 15 - 30 model criteria provide a framework for the encouragement and development of many elements of TQM practice in organizations. The results of investigations of application of the elements of TQM practice, or excellence model criteria on business results, or satisfaction and loyalty of employees rarely occur in the literature, they should present fundamentals for good performance of each bank (Al-Shobaki et al, 2010; Beikzard et al, 2012; Spasojević-Brkić & Putnik., 2013; Marimon et al, 2012). In this paper, the focus of the research is directed toward defining the model of impact by implementing the criteria of the EFQM excellence model on the loyalty and satisfaction of the employees working in banks in Serbia

Methods

Results

Conclusion