MODIFICATION OF ISM TO RISM (RATIONAL INTERPRETIVE STRUCTURAL MODELLING) IN THE CONTEXT OF EMPLOYEE RETENTION THROUGH CRM AND PERFORMANCE

Abstract

The paper explores the potential of CRM as a strategic element (along with performance, customer and bank perspectives, and demographic changes) for employee retention (using the Indian banking system as an example). The banking industry was chosen for this study because it is a service sector where transactions involving sensitive products (financial instruments) attract maximum attention from both employees and customers in the long run. To achieve this goal, the authors identified the main factors of customer relationship management that make it effective. The study investigated the relationship between CRM practices, the efficiency of banking operations, and the retention of bank employees. The analysis showed that bank employees have a much greater potential to influence the effectiveness of its activities than clients. Therefore, banks’ management should pay more attention to the recruitment of personnel, not only to the CRM system. The article specifically investigated the rationality of the relationship between CRM, bank branch efficiency, employee retention, and demographic variables. This allowed for several options for banks’ strategies in forming a stable staff of employees to be proposed. An important result of the study was the justification of the modification and addition of the ISM (Interpretive Structural Modelling) mechanism, which received a new name - RISM (Rational Interpretive Structural Modelling). Without violating the basic rules of ISM, the new mechanism allows to achieve better results, as it enables the development of a strategy for independent variables with a more accurate prediction of results.