Book Review

Title of the Book: Perceptions of Power: A Cognitive Perspective of Nationalised Commercial Banks of Bangladesh.

Author: Nadim Jahangir

Publisher: Centre for Social Studies, Dhaka

Price: Tk. 500.00(For institutions), Tk.300.00 (for Students), US $ 15.00

ISBN:984-513-016-3

Reviewed by: Professor Muhammad Mahboob Ali, School of Business and Economics, Atish Dipankar University of Science and Technology.

THIS book is based on a PhD thesis by Dr Nadim Jahangir who is currently working as a Professor and Director, School of Business, Independent University, Bangladesh. The book entitled “Perceptions of Power: A Cognitive Perspective of Nationalised Commercial Banks” consists of nine chapters in total dealing with different aspects of Nationalised commercial banks in Bangladesh (NCBs) specially managers' efficiency and effectiveness with employees. Each chapter addresses a separate issue and is logically presented.

Chapter-I gives the nature and scope of the study while chapter-II describes the research context. Chapter-III deals with the review of the related literature while chapter-IV gives an analysis of the development of conceptual framework. Chapter-V discusses research Methodology. Chapter VI provides findings from questionnaires while analysis of quantitative data is described in chapter-VII. Findings and analysis of data from interviews are described in chapter-VIII while chapter-IX deals with conclusions and recommendations. References on relevant books, journals, monographs, working papers, conference papers and seminar papers etc. respectively are also given. Index is also given in the book. This book observes role of managers of NCBs of Bangladesh economy as efficiency and effectiveness of the bank management depends on them.

After independence of the country, the then government nationalizes commercial banks (except a few foreign banks) into six distinct banks by Bangladesh Bank nationalization order 1972. As saving and investment is very low, to channelise saving and investment through the formal sector and to expand banking services in the remote areas of the country, nationalization of the banking sector is one of the major objectives at that time. Bank branches have expanded particularly in the rural areas. Expansion of bank branches reduces transaction costs associated with the transfer of funds, savings, demand deposit and also time deposit. The then government takes the supply leading strategy. But due to monopoly in the banking business, massive corruption, managerial inefficiency limits the desired goal of the supply leading strategy. Government of early eighties decides to initiate denationalization and privatization program. The book is a very comprehensive and accommodating book with special reference to management of banks in Bangladesh.

This book covers a lot of ground and does it well. The study is very much to the point, sound, and collect data from primary sources. Chapter Schemes covered in the book are well designed with appropriate data analysis procedure. Treatment of the various hypothesis and models are found to be well appropriate and suitable as a benchmark and model for NCBs of Bangladesh to act upon various economic decisions and prioritization. Basis of his studies and various conclusions drawn chapter wise is rational supported by comprehensive data and appropriate observations.

The author has discussed the nature and scope of the study in Chapter One. Author's beginning statement is a reality for the banking sector of Bangladesh. He stated that in a country's economic development the banking system plays a significant role (Page: 13). Chapter two describes financial history of Bangladesh, role of a banking system in the growth of an economy, the development of the banking sector in Bangladesh. In this chapter a concise discussion is presented. A comprehensive and useful review of relevant literature has been compiled and is also presented in chapter three.

The aim of this compilation is to identify existing literature on mangers' use of powers in relation to enhance productivity and motivation skill of employees' of NCBs. The outcome is widespread and relevant coverage of the significant literatures is given. This has been unquestionably demonstrating constructive to other researchers in this area. Chapter four seeks to development of conceptual framework. Conceptual framework has been based on three components i.e. Managers' use of power, procedural justice and organizational outcomes. Study has been well founded with sound methodology in Chapter: five. The statistical techniques and methodology uses to analyse the primary data is appropriate. Chapter: Seven consists of analysis of quantitative data. Based on statistical analysis, the author tries to find out significance of three hypotheses. Chapter: Eight deals with findings and analysis of data from interviews. Here author tries to observe implications of qualitative data. Policy implications drawn from the analysis of study and the relevant literature are also provided in chapter nine. The author reveals that long-term competitive advantage and superior employees; performance can be achieved by being equipped to respond the employees' needs of efficient managers' use of power and fair treatment (Page:195). He also observed that managers' can encourage the employees to enhance their organizational outcomes by fairly using their reward and legitimated power (Page:199).

Actually extensive research has been conducted by the author on managers' effectiveness and efficiency to manage banks and their consequences to provide a basis for developing a framework for bank management strategies for a country like Bangladesh, which is likely to be followed by the concerned stakeholders to undertake pragmatic steps to emphasis on proper banking norms and regulations. The book is also of value to researchers as it provides empirical findings in a research context that is not yet significantly examined in the bank management literature of Bangladesh. It references and connects very well to the findings of other similar studies.

This book is the culmination of an exhaustive study of the effect of NCBs on the banking arena of Bangladesh. The planning and conduct of the research is appropriate. The output shows evidence of good research methodologies and technical skill ness. The review of literature is ample. The book makes a key involvement to obtainable paradigms and practices in the banking literature.

The language of the book is straightforward and logical. This book wraps up bundles of argument and establishes them very well. The study is very concise, sound, and empirical based. Author has done dedicated and substantial hard work and his profound knowledge in both analytical and quantitative analysis and ability to explain various aspects of NCBs in the developing country like Bangladesh with facts and figures and his literature skill adequately justifies claim for recommending this book as an excellent piece of work. The book should be well recognized, not only in Bangladesh but other parts of the world, for its merit.

The book will be of massive assistance both for the researchers, professionals serving in the banking sector and also policy makers. The author deserves particular appreciation for responsibility this decent attempt. I suggest the book for the policymakers as it presents a constructive and existing view of the conclusion of the performance appraisal of nationalised commercial banks in Bangladesh and suggests ways in which the commercial bank management model might be improved. I expect wide exposure and spread of the book.