Evaluate The Efficiency of Public Banks Compare to private Banks in Iran

In this paper, we first compared the efficiency of public banks and private banks in the country. The results obtained showed that the efficiency indicators of public banks are much less than private banks. Then by using grounded theory as a qualitative research method, through interviews with managers in the banking industry of Iran, reasons of lower efficiency of public banks than private banks were analyzed. Data analysis in three stages of open coding, axial coding and selective coding showed that Public banks, according to their public nature and their circumstances are faced with a phenomenon known as "organizational clutter". Organizational clutter result that the consumers of bank resources become “resource waster”. Also the inefficient organizational structure and organizational culture as a context factors, affect resources wasting. As well as, information poverty and organizational prodigality affect resources wasting and intensify it. This situations lead to inefficiency of public banks in the banking industry of Iran.