EXPLORING CUSTOMER SERVICE DEPARTMENT OF

SAMABESHI PRERANA MULTIPURPOSE CO-OPERATIVE LIMITED

Basantamarg, Babarmahal-12, Kathmandu

An Internship Report

Bigen Gurung
Symbol No: 270934
P.U. Registration Number: 065-2-2-01155-2018
Kantipur Valley College

Submitted to:
Faculty of Management
Office of Dean
Purbanchal University
Biratnagar, Nepal

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Business Administration (BBA)

Kumaripati, Lalitpur
2022
 i

DECLARATION

I hereby declare that the Internship Report entitled “An Overview on

Customer Service Department and Remittance of Samabeshi Prerana Multipurpose
Co-Operative Limited”, submitted to Office of Dean, Faculty of Management,
Purbanchal University is an original work done by me and the information provided
in the study is authentic to the best of my knowledge and belief in the form of partial
fulfillment of the requirements for the degree of Bachelor of Business Administration
(BBA) under the supervision and guidance of Dr.Chet Nath Panta.

…………………..
Bigen Gurung
BBA 7th Semester
P.U. Reg. No. : 065-2-2-01155-2018
Symbol No. : 270934
Kantipur Valley College
Kumaripati, Lalitpur
 ii

ACKNOWLEDGEMENTS

The internship report has been prepared as a partial fulfillment of the

requirement for the degree of Bachelor of Business Administration (BBA),
Purbanchal University. I would like to thank our academic supervisor Dr. Chet Nath
Panta for providing me with supervision and guidance in preparing this report.
I wish to extend my sincere thanks to Samabeshi Prerana Multipurpose Co-
Operative Limited for providing me the opportunity for an internship at Overview on
Customer Services Department from 2079/07/06 to 2079/10/10, This Program has
been successfully completed with satisfaction and memorable experiences. I also like
to thank my job supervisor Mr. Tilak Raj Pandey CEO and Kaji Bahadur Khatri
DCEO of Samabeshi Prerana Multipurpose Co-Operative Limited for providing me
with guidance and supervision on making my internship Knowledgeable.
Finally, I would like to thank all my family members, friends and colleagues
for their encouragement and support which helped me to complete this report in time.

Sincerely,
Bigen Gurung
 iii

EXEXUTIVE SUMMARY

The report is prepared on the basis of internship. The main objective of the
report is to be familiar with banking service and environment. This internship report is
based on three-month long internship program, I experienced at Samabeshi Prerana
Multipurpose Co-operative Ltd. This report comprises the information regarding the
day-to-day activities and work environment of the co-operative.
This report is mainly divided into three categories. First part includes the
introduction of co-operative, history of co-operative, overview of Samabeshi Prerana
Multipurpose Co-operative Ltd, vision, mission, business volume, methodology,
objectives of the study. With the help of this part, we came to know about Samabeshi
Prerana Multipurpose Co-operative Ltd. and its services. The second part includes
analysis and review, SWOT analysis, collection of data. Conclusion and
recommendation are covered in third part. This internship report is finalized with
some more specific personal opinions about the organization.
Internship at Samabeshi Prerana Multipurpose Co-operative Ltd. has been one
of the significant experiences I have encountered. This intern program has aided in
my personal development as well as helped me to analyze my internal strengths and
weaknesses. I fell extremely honored to have received the opportunity to be involved
in real world co-operative environment through this internship program.
 iv

TABLE OF CONTENTS

DECLARATION..................................................................................................................i
ACKNOWLEDGEMENTS................................................................................................ii
EXEXUTIVE SUMMARY................................................................................................iii
List of Tables......................................................................................................................vi
List of Figures....................................................................................................................vii
ABBREVIATIONS..........................................................................................................viii
CHAPTER ONE..................................................................................................................1
INTRODUCTION...............................................................................................................1
Overview of the Organization..........................................................................................1
History of Co-operative...................................................................................................1
Overview of Samabeshi Prerana Multipurpose Co-Operaive Ltd...................................2
Brief History of the Organization....................................................................................3
Nature of the Organization...............................................................................................3
Vision...............................................................................................................................4
Mission.............................................................................................................................4
Business Volume..............................................................................................................5
Nature and Number of Employees...................................................................................6
Board of Directors........................................................................................................6
Management Team.......................................................................................................7
Product and Services........................................................................................................8
Organizational Structure..................................................................................................8
Overall and Concerned Department.............................................................................8
Cash Department..........................................................................................................8
Marketing Department.................................................................................................9
Remittance Department................................................................................................9
Loan Department..........................................................................................................9
Customer Service Department....................................................................................10
Objectives of the Study..................................................................................................10
Methodology..................................................................................................................10
Functions of the Concerned Department.......................................................................11
 v

Details of the Assigned Work Responsibilities..............................................................12

Problems Encountered during Fulfillment of Work Responsibilities............................12
CHAPTER TWO...............................................................................................................14
ANALYSIS AND REVIEWS...........................................................................................14
Critical Analysis Theoretical Concept Relating to Practical Experiences.....................14
in the Departments.........................................................................................................14
Decision Making Theory............................................................................................14
Herzberg Motivation Theory......................................................................................16
SWOT Analysis.............................................................................................................16
Analysis of collected data..............................................................................................18
Knowledge Gain from the Work Assigned....................................................................23
CHAPTER THREE...........................................................................................................25
CONCLUSION AND RECOMMENDATION................................................................25
Contribution of Internship in Knowledge Gain.............................................................25
General Comments and Recommendations...................................................................25
REFERENCES..................................................................................................................27
APPENDIX-1....................................................................................................................28
APPENDIX-2....................................................................................................................30
JOURNAL.........................................................................................................................31

LIST OF TABLES

Table 1: Balance sheet report of SPMC..............................................................................5

Table 2: Profit and Loss account of SPMCL.......................................................................6
Table 3: Product and Services of SPMCL...........................................................................8

LIST OF FIGURES

Figure 1: Board of Directors..........................................................................................................7

 vi

Figure 2: Structure of Management Team......................................................................................7

Figure 3: Decision Theory............................................................................................................15
Figure 4: Reason for Choosing SPMCL.......................................................................................18
Figure 5: Customer Satisfaction by Service Provided by SPMCL................................................19
Figure 6: Feel Secure to Deposit in SPMCL................................................................................19
Figure 7: Provides Attractive Interest Rate on FD.......................................................................20
Figure 8: Perception on Opening Hour of Co-Operative.............................................................21
Figure 9: Satisfaction on Management System Of Co-Operative.................................................21
Figure 10: Purpose of visiting Co-Operative...............................................................................22
Figure 11: Recommendation to Other People..............................................................................23
 vii

ABBREVIATIONS

ABBS-Any Branch Banking System

B.S.-Bikram Sambat
BOD-Board of Director
CEO-Chief Executive Officer
CSD-Customer Service Department
DCEO-Deputy Chief Executive Officer
KYC-Know Your Customer
Ltd-Limited
NRS-Nepalese Rupees
PU-Purbanchal University
 1

CHAPTER ONE

INTRODUCTION

Overview of the Organization

Generally, co-operative is an association of persons that is owned and
controlled by the people to meet their common economic, social and cultural needs. It
is formed on the basis of self-help, independence and equality but not on the basis of
any rest, religion.
Co-operative is a financial institution that deals with monetary transaction. The main
function of co-operative is accepting deposits and advance loan. The co-operative is
established not only for accepting deposits and granting loans but also for wide
ranging services to the different strata of services to the different society. Co-
operative facilities the growth of trade, commerce and agriculture development and
contributes to national economic. Co-operative is a resource institution for economic
development which maintains the self-confidence of various segments of society and
advances credit to the people.
History of Co-operative
The co-operative movement began in Europe in the 19th century primarily in
Britain and France, although the shore porters Society, claims to be one of the world’s
first co-operative, being established in Aberdeen in 1498. The industrial revolution
and the increasing mechanism of the economy transformed society and threatened the
livelihood of many workers. The concurrent labor and social movements and the
issues they attempted to address the climate at the time.
The first documented consumer co-operative was founded in 1769, in a barely
furnished cottage in Fenwick, East Ayrshire, when local weavers manhandled a sack
of oatmeal into Jhon Walker’s whitewashed front room and began selling the contents
at a discount, forming the Fenwick Weavers Society, founded in 1812.
By 1830 there was several hundred co-operatives. Some were initially
successful, but most co-operatives founded in the early 19th century had failed by
1840. However, Lockhard Lane industrial co-operative society Founded in 1832 and
now heart of England co-operative society, and Galashiels and Hawick co-operative
 2

group still trade today (David Thompson 1994). Co-operative principles then and
now. It was not until 1844 when the capital Rochdale society of equitable pioneers
establish the “Rochadale Principles” on which they ran their co-operative, that the
basis for development and the growth of the modern co-operative movement was
established.
Owen (1771-1858) is considered as the father of the co-operative movement.
A Welshman who made his fortune in the cotton trade, Owen believed in putting his
worker in a good environment with access to the education for themselves and their
children. These ideas were put into effect successfully in the cotton mills of New
Lanark, Scotland. It was here that the first co-operative store was open. Spurred on by
the success of his he had the idea of forming “villages of the co-operative” where
workers would drag themselves out of poverty by growing their own food, making
their own clothes and ultimately becoming self-governing. He tried to form such
communities in Orbison in Scotland and in New Harmony Indiana in the United
States of America but both communities failed.
The co-operative model has a long history in the U.S., including a factory in
the 1790’s, the knights of labor, and the Grange. In Colorado, USA the Meadowlark
co-operative the only private free, land program in the United States, providing many
services to its members who buy and sell together. In New York City, several food
and co-operatives were found at around 2010 According to others, some existing
since the 1970’s.
The U.S. has some diver’s workers co-operative such as a home care agency,
an organic bread factory co-operative and engineering firm. Some have already
incorporated environment and or Fair-trade criteria in to their products, such as the
aforementioned bread marker, organic value foods and equal exchange. Credits
unions were established int the U.S. by 1908. Their members owned, co-operative
structure, so that they were only slightly affected by the 2008 securities crisis.
Overview of Samabeshi Prerana Multipurpose Co-Operaive Ltd.
Samabeshi Prerana Multipurpose Co-operative Ltd. Started its operations on
2074 B.S, under Nepal government, Co-operative act 2048. It is located at
Babarmahal-11, Kathmandu. The concept of Samabeshi Prerana Multipurpose Co-
Operative Ltd. was started its activities formally from 2074 B.S. It was started with 41
members in the initial time. Its main Operations area is Babarmahal-11 area of
Kathmandu. Its PAN number is 606138909 & registered number is 4432/074. It is an
 3

organization of activities of similar interest group for their shake with some
objectives. Its main objective is to unite the co-operative member channelize to
protect their financial interest. It is not capitalist and socialist concept but it is an
equitable concept. Entire profit and loss of co-operative organization is distributed
among all members on the basis of their shares. This organization has well managed
computer based and software-based accounting system. It is using EASY software to
perform its transactions/operations. At present the organization has 7 members. And
beside the co-operative the organization also operate remittance services.
Name of the organization Samabeshi Prerana Multipurpose Co-Operative Ltd.
Industry Financial Service
Establish Date 2074
Chairman Rabindra Kumar Thakur
Legal Status Multipurpose Co-Operative Limited
Pan No. 606138909
Registered No. 4432/074
Ward No. 11

Brief History of the Organization

Samabeshi Prerana Multipurpose Co-Operative Ltd. have no long history of
establishment but have identity in providing quality services to its customers by
maintaining its reputation. Due to these reasons large number of customers are
associated with Samabeshi Prerana Multipurpose Co-Operative Ltd. It was
performing financial activities from 2074 B.S. It is an organization of saving and
credit co-operative and it also perform remittance services. It is using the software
called EASY software.
Nature of the Organization
A co-operative organization is organized activities of similar interest group
with some objectives. The nature of Samabeshi Prerana Multipurpose Co-operative
Ltd. is co-operative saving and credit society. It is established by group of saving and
credit co-operative. The main objectives of the organization are to promote saving and
credit co-operative. The main objectives of this organization are to promote saving
and to provide loan at lowest rate rate for its members. The capital of this co-operative
consists of the contribution made by the the members by purchasing its Shares. It is
established for providing many facilities and services to its members. It is known by
 4

saving and credit co-operative. It is organized by members with limited resources.

The society grants credit to the members for productive purpose. It is established to
motivate member for regular saving and to provide loans to the members at cheaper
rate. Its main objectives are to protect members from the economic exploitation by the
local money lenders. It helps to uplift the socio-economic conditions of the people and
members of that area.
Vision
Vision of the co-operative is defined as image of the future. The vision of
SPMCL is “To Become one of the best Service Provider Financial Institutions, to
become the Leading co-operative and to uplift the level of people through
mobilization of their own saving”
Mission
 To provide the trustworthy and long-term services to its customers through the
help of skilled and renowned shareholders.
 To provide opportunities to its employees.
 5

Business Volume
The capital structure of SPMCL for the fiscal year 2078/79 is as follows:
Particulars This year (Rs.) Previous year (Rs.)
Capital & Liabilities
Saving 83,767,024.87 83,767,024.87
Suspense 2,251,198.25 2,251,198.25
Payable 29,550.00 29,550.00
Other liabilities 949836.31 949836.31
Reserve and Other fund 585,595.00 585,595.00
Tax liabilities 450.00 450.00
Share 6,284,700.00 6,284,700.00
Assets
Receivable 2,251,198.25 2,251,198.25
Loan 83,289,327.37 83,289,327.37
Other assets 2,293,110.89 2,293,110.89
Bank 6,159,720.86 6,159,720.86
Fixed assets 342,995.00 342,995.00
Cash 794,285.00 794,285.00
Accrued Int Business loan 8,316.20 16,632.40
Accrued Int. Housing & Land loan 27,791.76 55,583.52
Accrued Int. Social Loan 750.68 1501.36
Accrued Fine Business Loan 1,335.83 2,671.66
Source: Annual Report 2078/2079
Table 1: Balance sheet report of SPMC
 6

Particulars Amount (Rs.) Particulars Amount (Rs.)

EXPENSES INCOME
1. Interest Expenses 7,898,2512.85 1. Office Income 1,318,937.95
2. Administrative- 2. Interest Income 10,312,248.00
Expenses 1,758,957.26 3. Accrued Int. Business
3. Other Expenses 711,693.90 loan 8,316.20
4. Accrued Int. Housing
& land loan 27,791.76
5. Accrued Int. Social
loan 750.68
6. Accrued fine
Business loan 1,335.83
Source: Annual Report 2078/2079
Table 2: Profit and Loss account of SPMCL

Nature and Number of Employees

Employees are the main assets of an organization. The organization provides a
necessary rules and regulations in order to achieve a higher degree of goal
accomplishment. The various kinds of training and development program with a view
to enhance the skills of its human resources.
Board of Directors
A board of director is a body of appointed members who got a vast experience
in business and the financial sector. They jointly oversee the activities of the
company. The board director’s activities are determined by the power duties and
responsibilities delegated to it or conferred on it by an authority outside itself. These
matters are typically detailed in the organization’s constitution and bylaws. The
structure represents board of director are as follows:
 7

Chairperson

Vice Chairmen Treasurer

Secratery Co-ordinator

Member Member Member

Figure 1: Board of Directors

Management Team
A management team is a collection of top managers who set the strategy and
run the operations of an organization together with its top leader. The management
team can meet anywhere from weekly to monthly or quarterly, depending on the type
pf business and the team setup. It is normally structured around the direct reports of
the top leader. The management team is the the highest senior team of managers and
leaders in an organization, including the top leader. It is not just a collection of top
managers, but also a team whose results are leveraged by increased co-operation and
team work encompassing all the different function of the organization.

Staff

CEO DCEO

Staff

Figure 2: Structure of Management Team

 8

Product and Services

Co-operative is involved in various activities but the major one is to accept the
deposit and grant loan and advances. It provides facilities of Remittance to the
members. Product and service are the major components of the organization. Better
product and services help for long term existence even in competitive market for
every type of financial institutions. Every co-operative has their own product and
services. SPMCL provides a wide range of the product and services which are as
follows:
SN. DEPOSITE TYPE INTEREST RATE MINIMUM
BALANCE(NPR)
1 Niyamit Bachat 5% Rs.200
2 Aawadhik Bachat 14%
3 Monthly Saving 7% Rs.500
4 Special Saving 10% Rs.25000
5 Pewa Bachat 10% Rs.1000
6 Saichik Bachat 5% Rs.200
7 Digo Bachat 5% Rs.1000
8 Uddhyami Saving 5% Rs.1000
Table 3: Product and Services of SPMCL

Organizational Structure
Overall and Concerned Department
Samabeshi Prerana Multipurpose Co-operative Ltd. is established with a view
to provide customer satisfaction providing wide range of product and services. In
order to provide the good services to the customers in daily life, the co-operative has
developed different departments for performing functions of the organization. The
different departments that the co-operative possesses are as follows:
Cash Department
Cash department is the most important part of every organization. Cash
department has direct interaction with customers. The cash should be managed in a
proper way and there should be enough cash in order to provide it to the customers at
time of need. Usually, cash department receives and pays cash directly which work as
a media to communicate with the clients.
 9

A function of cash department is one of the most important functions of the

co-operative. It is extreme necessity that the cashier and officers as well as other staffs
of the organization should understand this very well. Maintenance of vault book,
sorting of notes and coins, security measures etc. are the function of cash departments.
Various functions that the cash department follows are:
 Accepting Deposit
 Cheque payment
 Settlement of bills of exchange
 Facilitating withdrawal of money
Marketing Department
A marketing department promotes the business and the sales of organization
product and services. Marketing department provides the necessary research to
identify the real target, target market, customers and other audiences. The marketing
management holds achieving organization goals knowing the needs and wants of
target market delivering the desired satisfaction better than competitors. It is
important to keep a strong marketing department intact regardless of the economy so
the co-operative remains visible and maintain the popularity strong.
Remittance Department
Samabeshi Prerana Multipurpose C-operative Ltd. has been serving the
Nepalese workforce stationed in various foreign countries well as facilitating local
online payment solution throughout the country through its dedicated remittance
service. Co-operative has an extensive remittance business center, with an energetic
team of competent staffs, that has been providing customer focused services to the co-
operative valued customer groups. In addition to this, there is a dedicated round the
clock help desk for addressing the customer queries and feedbacks in a timely and an
efficient manner.
Loan Department
All the functions that are related to loan are performed by the loan officer in
this department. The loan officer should consider all the rules and regulations
amended by Nepal Rastra Bank. There are various types of loan, such as: business
loan, social loan, land and building loan, housing loan etc. There are various steps to
get loan. Loan department should follow the various steps before providing/granting
loan to the customers. They are:
 10

 Receive the loan application from customers

 Process and evaluate loan applications
 Approval/reject loan
 Plan monthly repayments for loan and intimate the customers
 Receive monthly loan repayment and consolidate them
 Identify potential customer and service them
Customer Service Department
Customer Service Department is the front desk of any organization. It provides
all necessary information to the customers. For any organization, it is the main and the
most important department which needs to deal with customers. It is one of the
busiest departments and also it is the place which makes an early impression to the
customers. The image and reputation of the organization depends upon effective
function of this department. It is the first place where the customers first get services.
CSD performed different functions such as opening new account of the customers,
update KYC form, closing existing account, cheque book issue, providing statements,
balance inquiry, etc.
Objectives of the Study
The following objectives are framed to carry out internship:
 To be familiar with the co-operative product and services.
 To analyze the perception of customers about services of the organization.
 To explore how theories are implemented practically in day-to-day operations.
 To analyze the working system of the organization.
Methodology
An internship program is designed to gain a day-to-day practical knowledge
regarding the day-to-day operation of the various organization whether it is small or
big performing various functions involving in particular sectors i.e. banking,
manufacturing, marketing, teaching, co-operative organization etc. Among this I was
involved in co-operative sector. I acquire my day-to-day knowledge to prepare the
final internship report by performing various tasks. Data for this report were gathered
from both primary and secondary sources of information collected through the period
of internship.
 11

Primary Sources
A primary source is direct evidence concerning a topic under investigation. A
primary source is a first-hand account of a topic. They are the most direct evidence of
a time or event because they were created by people that were there at the event.
Primary sources are the evidence of history, original records created by participants at
the time historical events occurred, as in memoirs and oral histories. I used as primary
sources to obtain data from the customer. The primary sources I used to obtain data
include:
 Personal observation
 Inquiry with staff members
 Questionnaires with the customers
 Interview with the customers
 Notes made during the internship program
Secondary Sources
A secondary source is one that was created later by someone who did not
experience first-hand or participate in the events or conditions you’re searching.
Secondary sources analyze, interpret, and describe the firsthand accounts of other
people to make them more accessible or to give context to an event. The secondary
sources are:
 Annual reports
 Booklets
Functions of the Concerned Department
During by intern program, I was placed in Customer Service Department. I
have learned various functions that are performed in CSD during my daily schedule.
During my intern program, I got to learn about co-operative culture and environment,
working procedure, dealing process with customers in best way.
Customer service department is the front desk and first place where the
customers first get the services. It is the main and the most important department
which initially deals with the customer directly and focuses more on the ideas of
customer feedback and outputs as they are exposed with your product and services.
CSD is one of the busiest departments and it is a place which makes early impression
to the clients. The image and reputation are depending upon effective functioning of
this department. In co-operative organization, the performance is measured by
 12

building trust and good relations with its members. CSD which aims to aid customers
queries, suggestions and complaints.
The function of customer services are as follows:
 Opening new account of the customers
 Closing accounts
 Issuing of the cheque books
 Checking balance and finding account number
 Providing information about products and services to the customers
 Photocopying necessary documents
 Solving and the queries of the customers
 Issuing of account statements
 Review and make changes to accounts
 Help customers pay bills
 Maintain a positive attitude and calmly respond to customers complaints
 Making and receiving calls
 Data entry to company software systems
 Keep records of customers interactions, process customer accounts and file
documents
Details of the Assigned Work Responsibilities
Work responsibility refers to duties that people in certain positions should
claim. Recognizing and fulfilling one’s responsibilities at work is generally regarded
as an essential part of a strong work ethic. During my internship period at SPMCL, I
was placed at customer services department. I was able to learn the working
environment. The tasks I have performed in the internship are dealing with customer,
making payments, recording financial transactions, sorting and filing documents,
handling remittance counter, making copies of documents, provide statements,
delivering required documents to related offices and banks, update KYC form, call
and gather information of loanee and other paper work.
Problems Encountered during Fulfillment of Work Responsibilities
An internship program, there are many problems arises during fulfillment of
our work responsibilities. Those problems often come in any organization. The
problems arise during fulfillment of work responsibilities are:
 While opening the new account, customer usually do not bring complete
documents.
 13

 Customer often forget their authorized signature.

 Due to misplace of file, sometime it is difficult to found file.
 Software system problem
 Due to business, there is communication gap
 14

CHAPTER TWO

ANALYSIS AND REVIEWS

Critical Analysis Theoretical Concept Relating to Practical Experiences

in the Departments
This report has been prepared not only to fulfill the requirements of the
University but also to extend my knowledge about the working culture in co-operative
sector. Both practical and theoretical experiences drive hand in hand and each has its
own importance. The management theories we had earlier learned theoretically are
applied in the daily work of the organization. Also, both practical skills and
theoretical learning gives guidance to the mind and the mind guides us to convert
these theoretical concepts into the practical performances. The analysis I have done in
this report has given me a great knowledge to understand the real picture of the
Samanbeshi Prerana Multipurpose Co-operative Ltd. and helped me to learn about the
method of collecting, presenting and analysis of data.
While working as an intern in Samabeshi Prerana Multipurpose Co-operative
Ltd, I got an opportunity to closely observe the working environment of the various
departments of the co-operative institutions. As from my observation, I came to know
that among various management theories that we have studied in our classes, some of
them are regularly and correctly utilized, whereas, some of those theories are kept
aside leading to growth of the organization. After the analysis and collection of data. I
performed critical analysis of the theoretical concepts relating my practical experience
in the following theories:
Decision Making Theory
Decision theory refers to a range of econometric and statistical tools for
analyzing an individual’s choices. In other words, it lets the entity make the best
logical decision possible when dealing with uncertain and unknown circumstances.
Analysts call it a theory of choice, relying on beliefs, attitudes, and desires.
 15

Figure 3: Decision Theory

Decision-making theory was first introduced by Herbert A. Simon (1947). He is

best known for his work on corporate decision-making, also called behaviorism.
Decision-making theory is a theory of how rational individuals should behave under
risk and uncertainty. The theory suggests that decision-making means the adoption
and application of rational choice for the management of a private, business, or
governmental organization in an efficient manner. The theorist argued that making a
decision is choosing between alternative courses of action. It can even mean choosing
between action and non-action. Simon asserted that decision making is the most
important part of administration and the outcome of decisions depend on the process
that is used in making decisions. He developed the bounded rationality model which
advocates the idea that humans are only partially rational.
Decision making is usually defined as a process of activities involving stages of
problem recognition, search for information, definition of alternatives and the
selection of an actor of one from two or more alternatives consistent with the ranked
preferences. Decision making theory is a theory of how rational individuals should
behave under risk and uncertainty. It uses a set of axioms about how rational
individuals behave which has been widely challenged on both empirical and
theoretical ground.
 16

During my internship, decision making theory is very applicable in daily

activities of the organization. The higher-level management takes a good decision for
the betterment of the organization. There are various activities in the organization and
it involves problem recognition, search for information to the organization, define
alternatives and select the best one for the organization. Decision making theory is
very important for the organization to make plans for the betterment of the
organization in the future and also for the present time.
Herzberg Motivation Theory
Herzberg’s motivation theory which is known as Two-factor or Hygiene theory
(Herzberg 1959), is another one of the more renowned employee motivation theories.
It suggests that individuals have two categories of needs when it comes to work -
Hygiene and Motivators. Hygiene refers to a person’s work environment, including
work conditions, wages, workplace relations while Motivators are the factors that
Motivate people to work harder - job recognition, promotion, achievement.
Herzberg suggests that if people are not happy at work it comes down to the work
environment, and when they are happy at work it’s because they fell fulfilled or
motivated.
During my intern program in SPMCL Herzberg theory is applied. This theory
motivates employees and also employees were happy. In my internship period the
working environment of the organization is very suitable and comfortable. The wages
and salary of the employees are reasonable for their assignments. Also the
organization provides many training to the employee and the organization set the
goals to achieved. If the employees achieved the goals in given time they were praised
by top level management and also get promotion for their work. So in my opinion
Herzberg theory is very important for organizations and the organization where I did
my intern also applied this theory.

SWOT Analysis
SWOT analysis is a frame work for identifying and analyzing an organizations
strengths, weakness, opportunities, and threats. These words make up the SWOT
acronym. “SWOT analysis helps managers to select an appropriate strategy that
matches their firm’s resources and capabilities to the environment in which they
operate (Johnson 2009).” The primary goal of SWOT analysis is to increase
awareness of the factors that go into making a business decision or establishing a
 17

business strategy. The SWOT analysis is a planning process that helps your
organization overcome challenges and determine what new leads to pursue. The
SWOT analysis is the process of identifying and analyzing the main internal and
external factors that will influence the future direction and success of a business. It
comprises strengths and weakness which are internal factors of the organization,
opportunities and threats are the external factors that affect the organization. Analysis
need to examine where the organization is today and where it may be positioned in
the future.
Strengths
When I asked about the strength of the organization to CEO, he said “We are
able to diversify products and services to our member as well as we have strong
relationship with existing customers” and, he said that, “Our organization is
established with having an experienced and well qualified professional management
team, strong customer base, which includes large number of depositors.”
According to my observation, I found that the management teams are
experienced and professional. Everyone was helpful and supportive. SPMCL exists
and operates for the benefits of its patron members.
Weakness
According to CEO, he said that, “There is problems in software system, limited
employees, limited financial capacity and sometime problems in remittance server”
are the weakness of SPMCL.
In my point of view, it provides low interest rate on normal saving account and
the organization is weak in marketing and also the location of the organization is not
suitable.
Opportunity
The CEO of SPMCL said that, “Our organization can take advantage of its good
reputation and further expand its customer base as well as it can come with up new
innovative products and services.”
According to my observations, I found that it is planning to come up with new
innovative products and services. Now SPMCL have given 14% to 15% interest rate
on fixed deposit and also it is planning to expand its remittance services.
Threats
 18

According to CEO of SPMCL, “The co-operative societies are more complex so

they fail in uneducated societies. Also increasing number of competitors, political
problems, new services from other finance.”
My point of view, most of the people take loans for their own needs but mostly
people do not use to pay the loan amount in time. Even though some people do not
pay neither interest nor principal of loan. This reflects the huge amount of loss in the
organization.
Analysis of collected data
The following chart has been prepared according to the responses of the
customers and members of the Samabeshi Prerana Multipurpose Co-operative Ltd:

Other servics
25%
Interest rate
40% Interest rate
Reliable service
Other servics

Reliable service
35%

Figure 4: Reason for Choosing SPMCL

Above figure represents the outcome of the survey conducted on customer which
shows the main reasons for choosing SPMCL. In the survey, about 40% of customer
choose the SPMCL for interest rate of the organization. 35% of customer choose for
the reliable service and remaining 25% of customer are choosing other services of the
organization.
 19

8%
20%
12%
Very satisfied
Satisfied
Normal
Dissatisfied
25% very dissatisfied
35%

Figure 5: Customer Satisfaction by Service Provided by SPMCL

The figures shows that 20% of customers are very satisfied regarding the
services provided by the co-operative, 35% of the customers are satisfied, 25% of the
customers are normal. The further survey and above figure show the 12% customers
are dissatisfied and 8% of them are very dissatisfied with the service provided by
SPMCL.

10% 12%

20%

28%

30%

Strongly agree Agree Neutral Disagree Strongly disagree

Figure 6: Feel Secure to Deposit in SPMCL

 20

The pie chart shows the 10% of the respondents were strongly agree that the co-
operative is secure to deposit, 28% respondents were agree, 30% respondents were
neutral, 20% were disagree to deposit in SPMCL. And the remaining 10%
respondents were strongly disagreeing towards co-operative to deposit in the
organization.
60%

50%
50%

40%

30%

22%
20%

10% 10%
10% 8%

0%
Strongly agree Agree Neither agree nor Disagree Strongly disagree
Disagree

Figure 7: Provides Attractive Interest Rate on FD

The above figure shows the outcome of the survey where respondents are asked
if they were agreed with co-operative provides attractive interest rate on fixed deposit
compare to its competitors. It was found that the 50% of them were strongly agree
regarding the interest rate provided by the co-operative, 22% of them were agree,
10% of them were neither agree nor disagree, 8% of them were disagree and 10%
them are strongly disagree with the interest rate provided by the co-operative on fixed
deposit compare to its competitors
 21

20%

Yes
No

80%

Figure 8: Perception on Opening Hour of Co-Operative

The respondents were asked if the opening hour of the cooperative is convenient
for the clients. Majority of the respondents said that the opening hour is convenient
for the clients while 20 percentage of them shared that the opening hour is not
convenient for them.

4%
16% 12%

Very satisfied
20% Satisfied
Normal
Dissatisfied
48% Very dissatisfied

Figure 9: Satisfaction on Management System of Co-Operative

It was asked to the respondents that if they were satisfied with the management
system of the co-operative. It was revealed that 48 percentage of the respondents were
dissatisfied with the management system of the co-operative followed by 16% of
 22

them who are very dissatisfied. However, 4% of them were very satisfied and 12 % of
them were satisfied with the management system.
Remittance
5%

Saving
45%

Loan
50%

Figure 10: Purpose of visiting Co-Operative

The above figure shows the purpose of visit to cooperative. It was found that
45% of them visit cooperative to deposit their savings or to collect their interest of
savings. Similarly, 50% of them visited for loan purpose. The picture reveals slightly
more respondents who were interviewed had taken loan from the cooperative.
Customers also visit the co-operative for the remittance. The illustration does not
reflect the total number of customers but only to those who were interviewed.
 23

30%

70%

Yes No

Figure 11: Recommendation to Other People

The respondents were asked if they would recommend the cooperative to other
people like family, friends or relatives. Upon this, 70% of them said that they will
recommend the cooperative to other people as well while 30% of them said that they
would not recommend the cooperative to other people. There is high probability that
the information regarding the recommendation would be bias because of the personal
relationships between the customers and the co-operative. Despite of the low
satisfaction level in the previous questions, the positive response when came to the
recommendation is still high.
All the information explained above were the pie charts generated from the
findings from primary data collection. The face-to-face data collection came out to be
effective while examining the level of satisfaction. The reaction of the respondents
during the interview can be studied while conducting face to face interview.
Therefore, face to face data collection can be recommended when carrying out a
survey about customer satisfaction.
Knowledge Gain from the Work Assigned
During my internship period in SPMCL, I was placed in customer service
department. It was a great learning experience. During my internship period I learned
lot of things related to co-operative and being familiar with the environment of the
organization. The most importance lesson that I learned during the internship period
was how to perform various tasks in an organization and working procedure of
 24

financial institution. During intern program what I felt is the importance of the time
management and the need of dedication towards the work. The knowledge I gained
from the work assigned are:
 Developing interpersonal communication skill
 Time management
 Handling sensitive and confidential information with honesty and integrity
 Learned how to socialized with peoples
 Analyzing the situation or problem and to find a correct solution
 Built confidence
 Learned to use of EASY software
 25

CHAPTER THREE

CONCLUSION AND RECOMMENDATION

Contribution of Internship in Knowledge Gain

Internship is an implementation of the theoretical experience knowledge as well
as practical knowledge to analyze the actual situation of the workplace. It assists
student to understand the real working situation being the part of the organization.
This report is based on CSD, where my internship period was spent. It was a great
chance for me to gain valuable knowledge of co-operative sector. The supervisors of
the organization were extremely helpful in guiding on our internship program.
The valuable knowledge that I gain apart from the basic activities of concerned
department are:
Learned about importance of time, personality, and dedication towards work
Learned about procedures of cash deposit and withdrawal
Learned to deal with different people at different situation
Learned to be calm under the difficult conditions and tactfully handle the
complexities
Learned organizational culture
General Comments and Recommendations
Samabeshi Prerana Multipurpose Co-operative Ltd. is a banking service oriented
and leading co-operative of the country. It provides various services to its members
and also provides remittance services to its members as well as customers located at
that area. The organization is good in its performance and had succeeded in providing
standard and satisfied customer expectations.
As per the report requirement and internship period in SPMCL, I would like to
give some recommendations for further improvement of the organization. The
recommendations ares follows:
Better customer services should be provided and take immediate action towards
customer feedback for attract more customers
 26

SPMCL should develop an effective web site so that customers can get necessary
information about the organization as well as product and services of the
organization such as offers, interest rate
Co-operative knowledge related training should be organized for employees
If there will be ATM services in SPMCL, it will be easy for the customer
Upgrade software system or implement new technology for better performance
SPMCL does not give their high attention on marketing, as a competition market
it is too important for any organization to do marketing to increase its
customer
 27

REFERENCES

Herzberg, F. (1959). The motivation to work. Transaction Publishers.

Johnson, D.W., & Johnson, R. T. (2009). Principles of marketing. Prentice Hall.
Owen, R. (1816). Archive for the history of economic thought. McMaster University.
https://doi.org/10.4324/9780429349454-9
Simon, H. (1947). Administrative behavior. Journal of management history, 16 (4),
509-520. https://doi.org/10.1108/17511341011073988
SPMCL (2078/79). Annual general report. Author.
 28

APPENDIX-1

Here are some Likert scale questions, that I have prepared for the customers who visit
the co-operative which will be later include in my internship report.
1) The main reason for choosing SPMCL
 Interest rate
 Reliable service
 Other service
2) Are you satisfied with the service provided by the SPMCL
 Very satisfied
 Satisfied
 Normal
 Dissatisfied
 Very dissatisfied
3) I feel secure to deposit amount at your organization
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
4) SPMCL provides attractive interest rate on FD compare to its competitors
 Strongly agree
 Agree
 Neither agree nor disagree
 Disagree
 Strongly disagree
5) Is the opening hour for this co-operative convenient for you?
 Yes
 No
6) Are you happy with our management system of co-operative?
 Very satisfied
 29

 Satisfied
 Normal
 Dissatisfied
 Very dissatisfied
7) What is the main reason for coming to this co-operative?
 Saving
 Loan
 Remittance
8) Do you recommend this organization to others?
 Yes
 No
 30

APPENDIX-2

Questionnaires

1) Who are the target customers for Samabeshi Prerana Multipuropse Co-
operative Ltd?
2) What is the main purpose for opening the organization?
3) How well the Samabeshi Prerana Multipurpose Co-operative Ltd. takes place
in the market?
4) Can you explain the strengths of the organization?
5) Would you identify weaknesses of the organization?
6) How can you grab the opportunities for the growth of your organization?
7) What are the threats that organization faces?
8) What organizational strategies are using for you organization?
9) How much customers are satisfying with your product and services provided
by the organization?
10) What will be the future plan to grow your organization?
 31

JOURNAL

Day 1
First day at work, I was so excited to do work in the co-operative environment
because it was my first experience to work in the co-operative organization. But 1st
day of by internship, it was so boring. The 1st day of my internship is the last day of
the organization. I just went office and the organization is prepared for the holiday of
Tihar so there was no any work and I was also not given any task to do. I was nervous
and afraid because I was unaware of the organization environment and surrounding by
full of unknown people. The 1st day at office was so awkwardness. That time all the
staff members were already prepared for the holiday so, I just introduced to all the
staff members of the organization then I returned back to home.
Day 2
After the 1 week of holiday, the 2nd day of my internship begin in SPMCL. I
reached office at 10:30 am. I was so afraid because I was late. Our DCEO of the
office asked me why am I late and I just told him that I got some important work to
do. After that I was shifted to CSD where I met Mr. Prakash Bhujel, head of the CSD.
He taught me every thing about the activities that I had to do. But there was so many
things that he taught me but some of the things I didn’t remember but any way I wrote
note for the remembrance. 2nd day I just work with Prakash brother he taught me each
and every single detail about work. I just feel boring, there was a lot of works to do. I
also learn new thing about the working culture of the co-operative. And he also
instructed me to deal and interact with customers. I also had to make journal voucher
at office. At 4:00 pm I left the office.
Day 7
As usual, everything is going same as before days. Day by day I was learning
new things in an organization. I also had to call loanee for the update of their interest.
Being familiar with organization culture, I was able to do all the activities effectively.
I was able to interact, deal and communicate with the customers. Our office has the
remittance service but I did not get permission to perform that service.
Day 15
Every day I experience and learn new things. I started to learn my mistakes
and make sure not to repeat them. Sometimes, I made some mistakes but the DCEO
 32

of the organization didn’t scold me but give advices to me. He is very nice and
motivated person. He also shared information of the organization to me and also guide
me in my given task. After being familiar with office activities, I was given
permission to perform remittance service. I was guided by Mr. Prakash Bhujel. In this
day, I learned something new than before.
Day 22
Day by day, I learned a lot of things. I am more confident to communicate and
deal with the customer. Open accounts of the customer, fulfilling the account opening
form, making journal vouchers, printing statements, maintaining pass books, issuing
cheque book, photocopy of the documents, filling of the documents and many other
bla bla….. I was enjoying to do all the activities.
Day 30
At day 30, one of the staff had to go Chitwan for the office work. The work
was that, loanee’s documents should be submitted to related government office for the
further process of the loan. One of the office staff should go there. Mr. Prakash bhujel
is going from the office and DCEO of the office asked me if I was interested to learn
office work I can.
So, I get the chance to go Chitwan with him. This is my first time at Chitwan
and also first experience. When I went to Chitwan I met with our loanee and required
documents are submitted to related office and our work has done. After finishing our
work, we both returned back to Kathmandu. It was too late.
Last day
Last day at office, I was very excited and also fell very sad. My internship
period has finished. I had learned a lots about co-operative culture and familiar with
its activities. I had gained a lot knowledge and experience in SPMCL. The last day, I
did not do much task but I enjoy fulfilling the task.
At returning time I talked with DCEO of the organization, he fell so good and
thanks me for everything that I had done in the organization. They are very happy
with my work. Before I left the organization, he asked me, if I am interested and also I
want to do further work at co-operative culture, he offered me a job. Now, I get the
job at SPMCL and also I get paid. Now I am no longer work with them as a intern but
as a staff of that organization.