HRM Final Report

Chapter I Introduction 1.1 Employee Satisfaction Job satisfaction or employee satisfaction has been defined in many different ways. Some believe it is simply how content an individual is with his or her job, in other words, whether or not they like the job or individual aspects or facets of jobs, such as nature of work or supervision. Others believe it is not as simplistic as this definition suggests and instead that multidimensional psychological responses to one's job are involved. Researchers have also noted that job satisfaction measures vary in the extent to which they measure feelings about the job (affective job satisfaction) or cognitions about the job (cognitive job satisfaction). Employee satisfaction is closely related to productivity which is then related to firm profitability. Employee satisfaction has a positive persuade on organizational performance. Beside this, firm profitability has a reasonable non-recursive effect on employee satisfaction. Employee satisfaction plays a considerable role in enhancing the firm profitability and improving operational performance of organizations and quality of goods and services. There is no doubt in it that employee satisfaction is critical to attain quality and profitability in organization. Employee satisfaction impacts quality at industry, to achieve quality and profitability at organization, employee satisfaction is fundamental and without it, organization cannot think of being successful. An imperative relationship exists between employee and organization. This employee organization relationship plays an important role in success of any organization. There is a need of developments in it. Managers are believed to develop a role relationship in which actions and decisions should promote the interest of organization. Employee involvement and contributions in organization is outcome of the interest. The quality of employee organization relationship requires fulfillment of needs, quality of interaction, adaptability and identification. Employee empowerment is also an effective way of satisfying them. When employees are given employee empowerment, then it leads to job satisfaction. Employee satisfaction is in fact job satisfaction. Job satisfaction is an important job organization factor. Both of them are significantly related. Therefore, it is necessary to maintain job satisfaction so that employees can be motivated.

1.2 Employee Satisfaction Determinants Employee satisfaction, also referred to as company or staff morale, is an employee’s overall attitude in regards to his or her place of employment. In order to promote a happier work environment and a high retention rate, managers must carefully consider the determinants of job satisfaction to adjust work environments and planning accordingly. In a 2012 Society for Human Resource Management survey, it was revealed that employees deem the following factors of the most importance in determining job satisfaction: Opportunities to Use Skills and Abilities: Employees like to feel that their talents are being appreciated, and working endlessly or performing the same tasks can start to wear on their emotional state. It is important for leaders within organizations to recognize existing talent and engage the employee in making the most of his or her abilities. Job Security: As of January 2013, the unemployment rate was 7.9 percent, only a short drop from the 8.3 percent it was in January of 2012. Since the recession, employees realize the uncertainty of the job market and how easy it is to fall into the unemployment pool. For this reason, job security is the second most critical factor in determining job satisfaction. Compensation/Pay: A nice compensation package can be a wonderful draw when recruiting and hiring, but once an employee has signed on with an organization, they need to feel as though their efforts are being appreciated. Raises and bonuses are powerful incentives for employees to push harder towards success, and rewarding them monetarily shows that their hard work has not gone unnoticed. A healthy compensation plan with room for bonuses and raises when appropriate can boost an employee’s job satisfaction and raise the retention rate of an organization. Communication between Employees and Senior Management: Working in an environment where communication is impossible leads to dissatisfaction and often times results in resentment on the part of the employee. Open lines of communication between management and employees instill a trust and equality that boosts company morale. Regular staff meetings and open-door policies reiterate the importance of each employee and promotes the notion that everyone’s opinion should be heard. Relationship with Immediate Supervisor: The fifth highest reported contribution to an employee’s job satisfaction is the quality of the relationship with an immediate supervisor.

Stressful work conditions and long hours can be manageable if work relationships are friendly and everyone feels respected. Personalities are not always going to mesh harmoniously, but while at work it is critical to keep interactions between employees and supervisors pleasant and respectful. Regular one-on-one meetings and completely open lines of communication can be most effective in establishing a respect between employees and their immediate supervisors. In order to run an organization most efficiently, employees must feel a sense of satisfaction within their jobs. Managers should strive to recognize each employee for the talents and contributions they are able to bring to the job and reward them accordingly. Effective communication and job security play an imperative part in employees knowing they are respected and appreciated, which leads to an overall more successful business.

1.3 Objectives of the study: 

To know the relationship between salary and job satisfaction.



To know the relationship between various variable and employee satisfaction.



To know the loyalty of the employee of citizen bank.



To know the relationship between gender and job satisfaction.

1.4 Methodology Data collection is the process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes. Data Collection is an important aspect of any type of research study. Inaccurate data collection can impact the results of a study and ultimately lead to invalid results. Data collection methods for impact evaluation vary along a continuum. The method used in this survey research for data analysis is the primary source of data. The questionnaire comprising of closed-ended questions was used to collect the data required. There were 23 respondents belonging to different age group and gender for the survey research.

1.5 Data management and analysis The data collected from the survey was entered and analyzed by simple descriptive analysis using Statistical Package for Social Scientists (SPSS) and Excel software. The result obtained were entered in the excel sheet. This software was chosen as it is user friendly and it can also be used to analyze multiple response questions. Cross section and time series analysis and cross tabulation; (i.e. relate two sets of variables) .Various statistical measures can be used for qualitative and quantitative data.

1.6 Limitations of the study This report had been prepared under various limitations. So, while analyzing the data as well as concluding the report, many constraints are seen. The limitations observed were: 

The sample drawn for this research is representative of the population i.e. only respondents were considered which might not be sufficient to make decisions related to



research objective The information provided by the respondents may not be correct since most of them were in a hurry and had lack of information.

Chapter II Introduction to organization 2.1 Introduction to Citizen international Bank Citizens Bank International Limited is a Nepalese bank headquartered in Kathmandu, Nepal. Massive changes and developments have taken place during the past two decades in the financial sector. Amidst all these changes, Liberalization, Privatization and Globalization in this sector have given birth to one of the largest commercial bank, Citizens Bank International Ltd. for economic growth and development of New Nepal. The Bank is located at Sharada Sadan, Kamaladi, Kathmandu, the heart of financial sector of the country. Massive changes and developments have taken place during the past two decades in the financial sector. Amidst all these changes, for economic growth and development of New Nepal, Liberalization, Privatization and Globalization in this sector has given birth to the largest commercial bank, “Citizens Bank International Ltd”. The Bank is located at Sharada Sadan, Kamaladi, Kathmandu, the heart of financial sector of the country. It is promoted by eminent personalities/business and industrial houses and reputed individual having high social standing. It is managed by a team of experienced bankers and professionals.

2.2 Vision To be the leading bank known for its service excellence in the region.

2.3 Mission To be a trustworthy partner for the progress of individuals and institutions by designing, producing and delivering the best financial solutions.

2.4 Corporate Values The Bank will constantly strive to inculcate in its services five corporate values as follows: Customer Focus We are committed to meet the financial needs of our customers and exceed their expectations through innovative solutions.

Service Excellence We promise to deliver customer centered products and services par excellence. Human Resource We employ bright, honest, helpful and pleasant people. We nurture and empower them to achieve their full potential. Corporate Governance We believe in being accountable, conducting business ethically and maintaining transparency. Social Responsibility We are committed to take social initiatives for the development of the nation.

Chapter III Data Analysis Data analysis and interpretation:

Table:1 Distribution by Gender Gender

Frequency

Percent

Male

16

69.6

Female

7

30.4

Total

23

100.0

From the above table, we can find that out of the 23 employee who filled the questionnaire on employee satisfaction survey, 16 were male and rest 7 were female representing 69.6% of male and 30.4% as females. Table: 2 Distribution by position

Position

Frequency

Percent

Non manager

19

82.6

Manager

4

17.4

Total

23

100.0

In the above table, the number of managers is 4 while that of non manager is 19. Despite the questionnaire was distributed to larger no. of managerial position, only 4 participated in the survey. This shows that managers are more reluctant to provide information regarding their satisfaction on the job compared to non managers.

Table: 3 Cross tabulation between & Chi-square Duration of working in this bank * Satisfied working in this bank Crosstabulation Satisfied working in this bank Yes

No

Total

2

0

2

%

100.0%

.0%

100.0%

Count

7

2

9

%

77.8%

22.2%

100.0%

Count

6

5

11

% Count

54.5% 15

45.5% 7

100.0% 22

%

68.2%

31.8%

100.0%

Below 1 years Count 1 - 3 years Duration of working in this bank

3 and above

Total

The above table represents the number of satisfied and unsatisfied customer with respect to the duration of work experience in this bank. Out of the 22 employee who responded regarding the satisfaction with working in the surveyed bank, about 15 replied that they were somewhat satisfied with the bank and the remaining 7 said they are completely unsatisfied in the bank. Of the satisfied employee, 2 out of 2, below one years of experience, claim that they were satisfied with the bank. In the category of employee working 1 to 3 years in the bank 7 employee were satisfied out of the 9 employee who fall under this category. And the employee with the experiences of above 3 years, 6 representing the 54.5% were somewhat satisfied working in this bank.

Chi-square Pearson’s Chi-square: 2.258 P value = 0.323 Alpha () = 0.05

Discussions: From the above table and p value we can see that there is significant relationship between duration of working in the bank and the satisfaction level of the employee. From the table, we can see that the customer percentage of satisfaction has fall with the rise in the duration of work in the bank. This establishes a negative relationship between duration of work in the bank and the satisfaction level. When people work in the same bank for the long duration, they are less satisfied compared to when they had joined the bank.

Position * Satisfied working in this bank Crosstabulation Satisfied working in this bank Position

Non manager Manager

Total

Yes

No

Total

Count

11

7

18

% within Position

61.1%

38.9%

100.0%

Count

4

0

4

% within Position Count

100.0% 15

.0% 7

100.0% 22

% within Position

68.2%

31.8%

100.0%

The above table shows the customer satisfaction with the position of the bank. Of the total of 18 non managers surveyed, 11 are satisfied while 7 are unsatisfied. Of these non managers, 61.1% are satisfied workings in the bank while 38.9% are unsatisfied working with the bank. On the other hand, of the 4 managers surveyed 4 managers representing 100 percent are satisfied. Pearson’s Chi-square value = 2.281 P value = 0.13 Discussions: On the basis of the p value and alpha value, we have a sufficient evidence to conclude that exist a significant relationship between employee satisfaction and the job position. On the basis of above table we can see that the percentage of managers satisfied is higher than that of non – managers. There may be various reason behind higher satisfaction among the managers compared to the non – managers. The higher incentives and benefits, provision of managerial

development to the top level executives, decision making power, and proper channel of communication with top executives may be the reason for the higher satisfaction among the managers. Independent Sample t-test Position and monthly salary

Independent Samples Test Levene's Test for Equality of Variances

F Equal variances assumed .314 Monthly Pay Equal assumed

variances

not

t-test for Equality of Means

Sig.

T

Df

Sig. (2-tailed)

.581

-3.293

21

.003

-3.973

5.500

.009

The above table checks for the significance differences between the monthly pay and the position of the employee. It checks whether there is a significant differences in the pay of employee as per the positions or not. In the above table the p – value (0.581) is greater than the alpha value (0.05). This shows that there is significant differences in employee pay as per the employee positions. Discussions On the basis of the result of analysis between employee monthly pay and the position of the employee, we can see that the employees with higher position are paid more salary compared to the lower level. There exist old based pay system rather than modern pay system to base the monthly pay on the performance basis rather than on the basis of the position of the employee. Even though the management has claimed the performance based pay system is used to remunerate the employee, the survey result shows that the employee pay is based on the position

of the employee. However the bank has used rewards system so as to praise and motivate the employee with the optimal performances. Gender and monthly pay Independent Samples Levene's Test for Equality of Variances

F Monthly Pay Equal variances assumed 1.789 Equal

variances

t-test for Equality of Means

Sig.

T

Df

Sig. (2-tailed)

.195

-.130

21

.898

-.113

8.776

.912

not

assumed

The above table represents the t – test to check the significance differences in the monthly pay and the gender. In the above table p – value is greater than that of the alpha value at 5% level of significance. So, we have sufficient evidence to conclude that there is a significant difference between the pay of male and female employee of the bank. Discussions: On the basis of above table we can see that there is difference in the pay of male and female. Especially the pay scale of female is less compared to male. There are various reasons for such differences. Some of them are: 

The managerial level is hold by the male population. So the pay of the male would be higher than that of females.



Most of the female employees employed are in the entry level especially in the front desk activities which are the lowest level job with lower pay scales.

Monthly pay and satisfaction

Independent Samples Test Levene's

Test

for

Equality of Variances

t-test for Equality of Means Sig.

Monthly Equal Pay

variances

assumed

F

Sig.

t

df

tailed)

1.427

.246

1.909

20

.071

(2-

Equal variances not

2.116 15.360 .051 assumed The above table tries to explain if there is significant difference in the monthly pay and employee satisfaction. It provides a sufficient evidence to conclude the differences in monthly pay and employee satisfaction. It also provides the insights if there is the differences. On the basis of the p value(0.246) which is greater than the alpha (0.05), it is evident there is the significant differences in the monthly pay and satisfaction. Discussions: On the basis of above table, the employees receiving higher remuneration are more satisfied than the one receiving lower salary. This means that the satisfaction is dependent on the salary they receive. It can be proved through the cross tab presented earlier. Of the entire employee, managers are more satisfied. The main reason behind this is that the managerial staff has higher salary compared to that of non managerial staff. Rating of services experienced in bank Descriptive table Service experienced

N

Minimum

Maximum

Mean

Std. Deviation

flexible work time

23

1

5

2.61

1.406

coordination among employee 23

2

6

3.96

1.224

career

1

6

3.55

1.371

opportunity

development 23

better working environment

23

1

6

3.43

1.343

employee morale

22

1

6

3.05

1.253

better salary

23

2

6

4.26

1.054

The above table shows the employee satisfaction level with the different elements of job satisfaction. It is measured from 1 to 5 scale where 1 represent strongly unsatisfied and five represent the strongly satisfied with different elements of employee job satisfaction. The scale 3 is the neutral point. Any score below 3 shows the unsatisfied with that particular element while the score above 3 represents the satisfaction level with that very element. From the above table we can see that employees are satisfied with the pay scale, constructive feedback from top executives and communication channel. However, the stress management by the organization and the opportunity for the growth is not to the mark to satisfy the customer. Employees are neutral regarding the supportive environment to balance the personal and professional lifes. Discussion: In terms of the level of satisfaction, the employees seem to be somehow satisfied working in the bank. They had represented their satisfaction in three elements while the dissatisfaction is represented in two elements and indifference in only one aspect of employee satisfaction. Also the table shows that the management of citizen bank is cooperative and they give more feedback to their subordinates for the job performances. This positive and constructive feedback also represents the highest level of customer satisfaction. To check the validity of responses we try to average the satisfaction in other six aspects and compare it with the mean satisfaction of employee as shown in the above table. The mean of all six aspect of customer satisfaction is 3.09 while the average of satisfaction as represented by the employee is 3.13 which is approximately the same. So this measure gives us the insight that the statement we took to measure employee satisfaction is valid and proved in mathematical expressions as well.

Correlation Matrix

Receive useful

supporting

and

environme proper

construct Rewards nt Paid Satisfied with job Satisfied with the job

the the work i from do 647**(.0 01)

Paid fairly for the work i do

seniors . 298(.167)

. 1

useful

constructive

and

feedback

1

of

communicatio

the work and n between top

performa personal

and low level proper

nces

life

mgmt

.

.

stress

managemet

489*(.01 538**(.00 .618**(.002) .566**(.005) 8)

8)

.

596**(.0 495*(.01 .248(.253) .522*(.011) 03)

Receive

are based balance

fairly for feedback on

. 1

ive

to channel

.577**(.004)

6)

. 340(.113)

.000(1)

.501*(.015)

.536**(.008)

from seniors Reward are based on the

1

.147(.504) .545**(.007) .595**(.003)

performances supporting environment

1

.319(.137)

.372(.080)

1

.695**(.000)

to balance work and personal life proper channel

of

communication between top and low level mgmt proper stress managemet

1

Receive useful

supporting

and

environme proper

construct Rewards nt Paid Satisfied with job Satisfied with the job

the the work i from do 647**(.0 01)

Paid fairly for the work i do

seniors . 298(.167)

. 1

useful

constructive

and

feedback

1

of

communicatio

the work and n between top

performa personal

and low level proper

nces

life

mgmt

.

.

stress

managemet

489*(.01 538**(.00 .618**(.002) .566**(.005) 8)

8)

.

596**(.0 495*(.01 .248(.253) .522*(.011) 03)

Receive

are based balance

fairly for feedback on

. 1

ive

to channel

.577**(.004)

6)

. 340(.113)

.000(1)

.501*(.015)

.536**(.008)

from seniors Reward are based on the

1

.147(.504) .545**(.007) .595**(.003)

performances supporting environment

1

.319(.137)

.372(.080)

1

.695**(.000)

to balance work and personal life proper channel

of

communication between top and low level mgmt proper stress managemet

1

The above table represents the correlation between different variables used for the measurement of customer satisfaction. We try to check whether there exists the relationship between each other. For the purpose of this we only represent the relation with the customer satisfaction and the other variables for the measurement of employee satisfaction. We will discuss the relation in the following points: 

There is a significant relationship between the fair salary and employee satisfaction working in the bank. This explains that if the employee perceives that they are receiving the fair salary from the bank; they are satisfied working in the bank. So the bank should try to meet the expectation of employee regarding the fair salary they consider doing a particular work.



There is no relationship between customer satisfaction and employee receiving constructive feedback from top level management. This means that feedback from top level management does not affect the customer satisfaction. Though we considered that employee satisfaction to be dependent on the constructive feedback from top level management, this survey shows that there exist no relationship between customer satisfaction and feedback from top level.



There is considerable relationship between employee satisfaction and the rewards based on performances. This shows that if the rewards are based on the performances, customer perceive high level of satisfaction and if the rewards are based on nepotism and personal relation basis, employee exhibit high level of dissatisfaction.



The employee satisfaction is the function of environment that balances personal and professional life. If the job balances the relationship between professional life, employee are satisfied working in the job else not.



The employee satisfaction is dependent on the communication channel between top and lower level of management. If there is proper communication channel between these two levels, employees are satisfied working in the present job but if there is not well defined channel, employee show up their dissatisfaction.



The employee satisfaction is also following the stress management in organization. If stress is managed properly, employees are satisfied.

Chapter IV Conclusion and Findings Employee satisfaction plays a considerable role in enhancing the firm profitability and improving operational performance of organizations and quality of goods and services. There is no doubt in it that employee satisfaction is critical to attain quality and profitability in organization. Employee satisfaction impacts quality at industry, to achieve quality and profitability at organization, employee satisfaction is fundamental and without it, organization cannot think of being successful. Employee satisfaction is very important to increase the productivity of the organization. This study attempts to find the satisfaction level of the employee of the citizen bank. Questionnaire was distributed among the employee of the bank to know their perception and satisfaction level. Various were identified form our research.

Major Findings: During the course of the survey and after the detail analysis of data so obtained from the survey, we have found out the following relating to the employee satisfaction of Citizen International Bank Limited:  There are more male employees working in this bank compared to the females. Also of female employee most of them are working in non managerial position especially in front desks like cash deposits and withdrawal, customer services or help desks.  The top executive are usually not interested to fill the questionnaire they are requested to regarding employee satisfaction compared to that of non managerial staff.  There exists a negative relationship between duration of work in the bank and employee satisfaction. The more the employee work in a particular bank, the more dissatisfied he/she is.  Top executives are more satisfied compared to the lower level managers.  The employee pay is based on the gender and the position he/she holds in any organizations.  The employee satisfaction is based on the employee monthly pay.  Employees are more satisfied with the monthly salary offered by the bank and coordination among the employee. However they are unsatisfied with the flexible work time in this bank.  Employees of this bank they are receiving constructive feedback and fair salary from the bank but they believe that the stress management and employee morale is low working in this bank.  Except for the constructive feedback, all other variables have a positive relationship with employee satisfaction working in this bank.