Chapter-I

Introduction

1.1 Context Information

Banking has become a very important component in the business mix of banks. Bank is a
financial institution which deals with the monetary activities by accepting deposits, lending to
the various parties against securities and performing agency services. Commercial bank
occupies an important place in the development of the economy. Bank provides various
services to fulfill the demand of customers like saving accounts, loan facilities and remittance
facilities. The banking industry needs to adopt new strategies and technologies to deliver
better services to customers and to move ahead of the competition.

An organization’s success is the essence of hard work of the human resource working in it.
Employees are the essential means of realizing the organizational objectives and working
efficiently to achieve it in every manufacturing and financial sector. The satisfied employees
are the organization's most important assets who not only determine the performance of
organization but also affect its profitability and continuous growth. The employees with low
level of job satisfaction become the reason for negative turnover, slow progress in work, high
absenteeism, and conflict. Managing the human capital and focusing on employee satisfaction
in bank is important to determine its long term success.Employee satisfaction has been widely
studied in the various literatures. Banks have become indispensable so for regulation of banks,
employees are an imperative resource. It is crucial for banks to know what factors affect
employees in order to revise the strategies that can make employees satisfied at work, hence
increase the turnover of the bank.

Job satisfaction is considered to have great significance for the effective functioning of all
organization, employee retention, and increment in workers’ productivity, effect on employee

1
relation, attendance and stability. Employees who are highly satisfied with their jobs are more
productive, committed to their job, less absent more participative and less likely to leave
(Nazir, 1998). Job Satisfaction is an indicator of how employees feel about their jobs and a
predictor of work behaviors such as absenteeism and turnover. It is common that employees
who are satisfied with their jobs are more likely to stay with their employers. Keeping a cadre
of happy and motivatedemployees, however, is often elusive as the expectations of employees
shift. As life becomes more challenging, employees may become more stressed. Therefore, the
factors long thought to satisfy employees may be shifting, depending on attributes such as
thegender and age of employees.

Job satisfaction means an employee’s emotional reaction to job. It is the positive emotional
state that results from appraisal of one’s job. According to Smith et al (1969), job satisfaction
is a combination of cognitive and affective reactions to the differential perceptions of what he
actually receives from the job. It is a crucial factor that engage employee to work for long
term. Job satisfaction is the people general attitude towards job. Different intrinsic
andextrinsic job elements can influence the level of job satisfaction. Pay, benefits, work
environment, relation with managers and peers, participation, communication and fair
treatment in organization are the common factors which influence the job satisfaction of
employees. It is widely believed that employee participation can be the factor to enhance the
employee job satisfaction in workplace.

Employee job satisfaction is linked with various factors like supervision nature of job,
performance appraisal, promotion and relationship with other employees (Devi and Suneja,
2013). Poor compensation and benefits, lack of recognition, negative working environment
and limited opportunity for career development are the main cause of employees’
dissatisfaction (Khadka, 2011). Organization must address and improve these factors in order
to ensure positive turnover and its performance. Employee dissatisfaction will gradually
reduce the performance and lead to customer dissatisfaction.

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1.2 Purpose of the study

Job dissatisfaction determines the reduced performance of every organization. In the pace of
competition banking sector is most competitive sector as every bank is trying to offer quality
service to the customer which is only possible because of employee’s performance. Moving
with competition the banks are trying to get high turnover and provide customer satisfaction in
which most of the banks fail to consider their employee’s interest which leads to failure of
organization. So it is necessary to find the level of employee satisfaction and factors affecting
it.

In Nepalese banking sector the factors for employees satisfaction are obtained as salary and
remuneration, nature of work, training and development, promotion opportunities,
performance appraisal and most important factor was ranked as salary and remuneration
(Gautam,2016).

There is significant difference in private and public bank’s job satisfaction level in terms of
nature of work freedom. Employees of private banks are more satisfied with pay increments
and revision than that of public banks(Devi and Suneja, 2013). Many researchers found
different variables significantly related to job satisfaction. In Lebanese banks, employees were
more satisfied with co-workers and quality of supervision (Crossman and Zaki, 2003). Job
security was most significant factor affecting employees' satisfaction for overall performance
(Pathak, 2015). Employee satisfaction is necessary for effective functioning of organizations;
their interest should be taken in care. The variations in outcomes of studies of other
researchers regarding the employee satisfaction factors give rise to following queries:
1. What are the factors determining employee satisfaction in Everest Bank?
2. How these determinants affect on employees' job satisfaction?

3
The main objective of this study is:
1. To identify the factors that will lead employee towards job satisfaction in Everest
Bank.
2. To find extent to which each factors contribute towards improving employee
satisfaction level.

1.3 Significance of the study

In recent scenario of intense competition, the banks have been working rapidly in order to
increase the bank's profitability and performance. During this course, the employees have to
give their full time in the bank and there occurs various problems regarding managing
employee problems. This study helps the managers of banking sector to develop a new insight
regarding how the determinants of job satisfaction influence employee toward satisfaction.

This research will contribute to the banking sector in Nepal as employee satisfaction will lead
to the increased productivity and turnover. Today's society depends upon banks and the bank's
success is ultimately the benefit for an individual. The management level of an organization
must be aware of their employees' needs and satisfaction. The study will focus on various
factors affecting employee's satisfaction such as salary, job security, promotion, co-workers
and leadership style. So, this attempt helps the manager to understand their employees and
make the favorable condition in the bank to work properly to make them satisfied. Employee
Satisfaction is the benefit to the employees. The employees should feel free to work in the
organization and treated well where they feel secure. An employee should be able to perform
their skills and talents in the organizations so as to feel happy with the rewards they get which
will directly lead to job satisfaction. The rewards will motivate the employees towards
challenging and creative jobs and thus, the

4
1.4 Literature Review

Job satisfaction is a set of favorable or unfavorable feeling and emotions with which
employees view their work. It is pleasurable feelings that result from the perception that a job
fulfills or allows for the fulfillment of its holder’s important job values. Job satisfaction is an
attitude rather than a behavior, it’s an outcome that concerns many managers because satisfied
employees are more likely to show up for work and stay with an organization (Newstrom,
2009).

Crossman & Zaki(2003) studied about the relationship between job satisfaction, individual job
facets, socio-demographic variables and job performance. Quarstein et al. (1992) described
overall satisfaction as the combination of situational characteristics and situational
occurrences. The data were collected using questionnaire; job satisfaction was based on Job
Descriptive Index (JDI) (Smith et al 1969). The result show that respondents were most
satisfied with co-workers and quality of supervision but less satisfied with work itself,
promotion and pay.

Maslow (1954) suggested that human needs form a five levelhierarchy ranging from
physiological needs, safety, belongingness and love, esteem to self actualization. Based on
Maslow’s theory, job satisfaction has been approached by some researchers. Kapoor (1967)
analyzed some important determinants of job satisfaction and concluded that wages, housing
andadvancement opportunity may be considered workers primaryneeds and placed into a
hierarchy or prepotency which if it remained unfulfilled would cause dissatisfaction.

Nazir (1998) describes the overall job satisfaction of bank employees, some determinants of
job satisfaction and evaluate the perceived importance of some job as well as background
factors on their overall job satisfaction. According to Kemelgor, 1982; Locke 1976; Mobley
and Locke 1970, Job Satisfaction is important for the effective functioning of any organization

5
and often a factor in worker productivity. The result reveals that employee perceive various
factors for satisfaction and dissatisfaction. Duration of work has been considered most
important factor whereas management policy the least important factor. He has reviewed the
most popular jobsatisfaction instruments and summarized the followingfacets of job
satisfaction: appreciation, communication,co-workers, fringe benefits, job conditions, nature
of thework itself, the nature of the organization itself, anorganization’s policies and
procedures, pay, personal growth, promo promotion opportunities, recognition,security and
supervision, Job satisfaction and its relatingfactors. He also felt that, the above approach
hasbecome less popular with increasing emphasis oncognitive processes rather than on
underlying needs sothat the attitudinal perspective has become predominantin the study of job
satisfaction.
Gautam (2016) studied about the factors affecting job satisfaction and their impact in overall
performance. In this research salary and remuneration, nature of work, training and
development, promotion opportunities, performance appraisal are obtained factors for
satisfaction and the most important factor ranked by employees is increment in salary and
remuneration. The study reveals not significant but positive impact of job satisfaction on
organizational performance.

Probst & Brubaker (2001) carried out a study which analyzed the effect of job insecurity on
safety outcomes ofemployees. The sample consisted of 237 employees from two different food
processing companies in America. Regression analysis was applied. The results from the study
supported that perceived job security had strong relationship with job satisfaction. It also
showed that job security among employees was directly related to knowledge of safety, safety
motivation and actions on safety policies. Employees having job insecurity did not give
importance to safety policies, making workplace prone to more accidents.

Chapagain (2011) examines the relationship between employee participation and job
satisfaction in Nepalese banking sector. The study undertook in four banks with 200

6
employees. The demographic variables such as age, gender and service period were taken as
intervening variables of job satisfaction. The data were collected through questionnaire using
convenient sample technique. The result reveals that employee participation is positively
related with job satisfaction and demographic variables have no significant relation with job
satisfaction.

Waqas et al. (2014) examined the job satisfaction level and efficient management system in
developing countries. The study was done on 148 employees by using convenience sampling.
The research tries to study the relationship between job satisfaction and job loyalty. The data
were collected through questionnaire. The study found that participation in decision making,
empowerment, reward and recognition, work place environment as the job satisfaction factors
and there is strong relationship between job satisfaction and job loyalty.

Maslow’s hierarchy of human needs, ranging from lower orders to higher order of needs,is an
important theory that assumes the fact that individuals may belong to the same occupational
group, but may differ remarkably in their need range or levels on which these needs are
satisfied. In his study, he indicated that most people seem to have higher order needs, such as
those involving self-actualization. It follows that only individuals who have high needs for
fulfillment on the job are satisfied by having a job which provides the opportunities for such
needs to be fulfilled (Hackman & Lawler, 1971). Job satisfaction is a result of employees’
perception of how well their job provides thosethings that are viewed as important.

Hom and Griffeth (1995) state satisfied employees have lower level of turnover while
dissatisfied employees have higher levels of turnover. Nadeem Malik conducted a research on
Job Satisfaction Factors of Faculty Members at University of Balochistan and reveals:

● Demographic factors such as age, academic rank, and degree no significant impact on

7
 job satisfaction.

● “Work Itself’’ was the most motivating aspect.

● “Working condition’’ was the least motivating aspect.

● Job motivators and hygiene characteristics were moderately or substantially related to

overall job satisfaction.

● The factors work itself and advancement explained the variability among faculty
member’s overall job satisfaction. (pp. 4-5).

1.5 Conceptual Framework

}

A conceptual framework can be defined as a theoretical structure of assumptions, principles,

and rules that holds together the ideas comprising a broad concept. It presents the relationship
between dependent and independent variables that helps to develop hypothesis.Guided by the
literature survey and the requirement of the study, the following Conceptual Model was
developed. In this study the dependent variable is employee satisfaction and independent
variable are salary, job security, promotion, leadership and co workers.

Independent Variables Dependent Variable

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 Figure 1.1: Conceptual Framework
1.6Operational Definitions of Variables

1.6.1 Employee Satisfaction

Employee Satisfaction is the extent to which an individual is happy with their job i.e. with the
management, the staffs, working environment and the resources available. The satisfied
employees are happy in the workplace which results in increased productivity, loyal to the
organization. An employee's job satisfaction is affected by various factors such as salary, job
security, promotion, co-workers, and leadership style. Employee Satisfaction can be measured
mainly through employee satisfaction survey addressing topics related to their tasks, available

9
resources, working condition, compensation, necessary support and benefits.

1.6.2 Salary

Salary is the sum received by an employee from the employer for performing task in an
organization. Salary is the basic need and people do their job mostly to earn money. Salary not
only helps people to fulfill their basic needs but also motivate them in satisfying higher level
needs of people. It is the important factor for job satisfaction. There is positive relationship
between salary and job satisfaction.

1.6.3 Job security

Job security is an employee's confidence that they will keep their current job. It makes
employee secure about their job due to which they work to fullest in the organization which
leads to job satisfaction. Employees who have high level of job security have the lowest
probability to leave the job in the near future. Job security is also affected by success of the
business, a worker's performance and the working environment in the organization.

1.6.4 Promotion

Promotion simply denotes upgrade from the existing position. Promotion can be defined as the
significant achievement in life. It provides an employee with more pay along with more
authority, responsibilities and status. When an employee gets promotion they will be more
motivated to work and achieve higher job satisfaction. So, the promotion opportunities
determine the level of satisfaction of the employees.

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1.6.5 Leadership

In an organization the level of employee's job satisfaction is determined by the leadership

style. Democratic leadership style is generally preferred and liked by employees in the
organization. If there is democratic leadership style employees feel free to work and express
their ideas and opinion in decision making and this leads to greater satisfaction in job and
increase performance. It also enhances friendship, respect and warm relationship among
employees.

1.6.6 Co-workers

Co-workers are individuals who work in the same organization. Mutual understandings,
co-operation among the co-workers have significant influence in the job satisfaction level. A
good working environment with the co-workers is important as it is natural for human being to
interact with others. So, in an organization employees create their work group, take feedback
from their co-workers, and discuss work with them which enhances the satisfaction level of
employees.

1.7 Research Methods

Research methodology is important to carry out a research, which describes the entire
methodological approaches employed in the study. It provides a basic framework on which the
study is based. Research methodology is the analysis of specific topic by using proper method.
Research methodology is a way to systematically solve the research problem. Mostly, in the

11
case of the empirical studies, the consistencies of the findings are solely based on empirical
methodologies it has employed. Research methodology sets overall plan associated with the
study which may include publications research, interview, survey and other research
techniques and could include both present and historical information. It provides a basic
framework on which the study is based. Before presenting the analysis and interpretation of
data, it is necessary to describe the research methodology first. Therefore, this chapter focuses
on research design, nature and sources of data, selection of samples, method of analysis.

1.7.1 Research Design

A research design is the roadmap that is prepared to constitute the elements of the study area
in such a way that it will address your problem. It is simply the structure of the research and it
gives direction to the subject area. This study focuses on identifying the factors affecting job
satisfaction and understanding the relationship between the independent and dependent
variables. This study adopts descriptive research design to find the adequate information about
the factors affecting employee satisfaction.

This study focuses to find out the characteristics of the Everest bank employees and their
satisfaction level towards their job. Under this research design, a set of questionnaire related to
salary and remuneration, job security, promotion, leadership and co workers was prepared and
distributed among the different groups of the employee of Everest Bank to collect their
characteristics, opinions, and perception regarding their job and employee satisfaction.

1.7.2 Sources of Data

This study is based on primary data. The primary data and information is collected and
analyzed to determine the relationship between employee satisfaction and Everest Bank

12
Limited. This study collect data from structured questionnaire survey which contains the
respondent related information through tick mark questions, multiple choice questions, rank
questions and 5-scale likert scale questions and data are analyzed in descriptive nature. The
relationship between dependent and independent variable are analyzed in Kendal tau
correlation.

1.7.3 Description of the sample

Population is the collection of people having similar characteristics. In this study, the entire
employees of Everest Bank are taken as the research population. The targeted population is
taken as the Everest Bank of Kathmandu valley. Sampling is the process of selecting units
from the population of the study area that represents the entire group as a whole. This research
was carried out among 60 employees from 10 branches of Everest Banks within Kathmandu
valley.

Table 1.1 Description of sample of Everest Bank Limited

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 Branch Location No. of Respondents
S.N.

1 Lazimpat Branch 10
2 New Baneshwor Branch 10
3 Gwarko Branch 7
4 Lagankhel Branch 7
5 Kalimati Branch 3
6 Bagdol Branch 4
7 Teku Branch 4
8 Maitidevi Branch 6
9 Thamel Branch 4
10 Gongabu Branch 5

1.7.4 Data Instrumentation and Analysis

Data were collected using the self-administered questionnaires. Questionnaires included a set
of written questions used in order to obtain and store necessary information during research.
Questions were designed to examine the important variables for the study and were answered
by respondents. After collecting data, measurement scale was used to test the qualities of data.
The questionnaire that was used for this study was developed through identification of
demographic characteristics, dependent and independent variables from related literature
review.
Questionnaire was divided into two parts. The first part included respondent’s personal detail
including gender, age, occupation and academic qualification. Second part includes the
questions to measure dependent and independent variables. The questionnaires were
distributed to respondents through hard (printed) copies. The purpose was properly defined to

14
the respondents on the questionnaire page. The questionnaires were self-adjusted, validated
and pre-tested. During the survey, discussions with respondents and interviews along with
questionnaire as instrument in the appendix. The respondents represents employee of 10
different branches of Everest Bank Limited of Kathmandu valley. This research is based on
the descriptive nature and the data will describe the factors leading to employee satisfaction
and their impact. Various statistical tools such as mean, percentage analysis and correlation
was adopted to analyze the data in a proper way.

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 CHAPTER II
DATA PRESENTATION AND ANALYSIS

This chapter presents the analysis of the study result and their interpretations. Basically, this
chapter presents respondent's profile, data presentation, data analysis, and finding and
discussion of the study. This chapter provides systematic presentation and analysis of primary
data.

This study is based on primary data analysis, which mainly deals with the aspects of salary,
job security, promotion, leadership and coworkers. This section reports the result of
questionnaire survey conducted among different groups of customers. A set of questionnaire
including multiple choices and likert scale questions are provided. The respondents profile
along with their personal characteristics and result of the survey are presented in the following
sections. The percentage, frequency, mean value, weighted average mean value has been
calculated to do the proper analysis of the data.

2.1 Respondent's Profile

This section describes the demographic characteristics of the respondents of Everest Bank
Limited. The demographic characteristics are related to the personal characteristics of the
respondents. In this study the respondents include the information about gender, age, academic
qualification, work experience etc. The questionnaire were distributed and collected from 60
employees.
Table 2.1 shows the demographic characteristics of the respondent in number and percentage

16
of information about gender, age, educational qualification, experience in banking sector,
work experience in Everest Bank Limited.

Table 2.1
Respondent's Profile

This table shows the number of respondents with the characteristics on age, gender,
educational qualification, experience in banking sector and working experience from
employees of 10 branches of Everest Bank Ltd were used in questionnaire survey of this study.
Number represents the number of respondents of each category and percentage refers to the
percentage of respondent number in particular category out of total.

Demographic Variables
Age No. of respondents Percentage (%)
20-30 yrs 19 31.7
30-40yrs 33 55
40-50yrs 8 13.3
Total 60 100
Gender
Male 36 60
Female 24 40
Total 60 100
Education
+2 1 1.7
Bachelors 12 20
Masters 47 78.3
Total 60 100
Experience in banking sector
Less than 2yrs 2 3.3
2-5yrs 12 20

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5-10yrs 34 56.7
Above 10 yrs 12 20
Total 60 100
Work Experience in this bank
Less than 2 year 3 5
2-5yrs 11 18.3
5-10yrs 34 56.7
Above 12 20
Total 60 100
Source: Field Survey, 2017
The table shows the demographic characteristics of the 60 employees from 10 branches of
Everest Bank Limited.

Age Group

Figure 2.1 shows the classification of respondents by age group.

Figure 2.1: Respondents classified by Age Group

Source: Field Survey, 2017

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The majority of the respondents from 30-40 age group were 55%. Likewise there were 31.7%
respondents from 20-30 age group. Similarly, the employees of age group 40-50yrs were
13.3% and no respondents above 50 years.

Gender

Figure 2.2 shows the classification of respondents by gender.

Figure 2.2: Respondents classified by Gender

Source: Field Survey, 2017

The figure shows that majority of the respondents were male(60%) whereas the rest (40%)
were female.

Educational Qualification

Figure 2.3 classifies the respondent according to their educational qualification

Figure 2.3: Respondents classified by Educational Qualification

19
Source: Field Survey, 2017
In the above figure, the masters degree holders were 78.3%. On the other hand 20% have
bachelors level of qualification and the respondents of 1.7% have intermediate level of
qualification.

Experience in the banking sector

Figure 2.4 classifies the respondent according to their experience in banking sector.

Figure 2.4: Respondents classified by Experience in the banking sector

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Source: Field Survey, 2017
Figure 2.4 shows that the majority of the employees working from 5-10 years in banking
sector were 56.7%, 2-5 years and above 10 years were 20%. Similarly, 3.3% of the employees
had less than 2 years experience in the banking sector.

Experience in this bank

Figure 2.5 classifies the respondents by the experience in this bank.

Figure 2.5: Respondents classified by Experience in this bank

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Source: Field Survey, 2017
The respondents working in this bank for 5-10 years were 56.7%, above 10 years were 20%.
Likewise the respondents working for 2-5 years were 18.3% and less than 2 years were 5%.

2.2Employee attitude towards job satisfaction

This section provides the information regarding the determinants of employee satisfaction in
Everest Bank Ltd. An employee only be happy in the job when they get maximum satisfaction.
The respondent employees have different opinion regarding the determinants of employee
satisfaction. Thus, these determinants help to identify the employee satisfaction.

Table 2.2
Employee's response about salary for Job Satisfaction

This table shows the percentage, frequency, mean of the employee's perception about salary
for Job Satisfaction of Everest Bank Ltd. The statement is based on the Responsiveness and is

22
measured in five point Likert scale i.e. strongly disagrees, disagree, neutral, agree and
strongly agree.

Statements Strongl Disagre Neutra Agre Strongl N Mean

y e l e y Agree
Disagre
e
This company maintains F 0 2 10 35 13 60
competitive pay and benefits % 0 3.3 16.7 58.3 21.7 10
package 0
A 3.3 16.7 80 10 3.9833
% 0
I understand the link F 0 5 12 35 4 60
between my performance % 0 8.3 20 65 6.7 10
and salary 0
A 8.3 20 75.7 10 3.7
% 0
Weighted Average Mean 3.8416
5
Source: Field Survey, 2017

Table 2.2 shows the responsiveness of Everest Bank Limited. Among the 60 respondents
maximum(80%) agreed that the bank provides competitive pay and benefits package. 16.7%
are neutral on their view and 3.3% do not agree that bank provides competitive pay and
benefits package. The mean value of this statement is 3.9833.

The majority (75.7%) of the respondents agreed that they understand the link between their
performance and salary.20% are neutral and 8.3% do not understand the link between their
performance and salary. The mean value of the statement is 3.7.

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 Table 2.3
Employee's response about Job Security for Job Satisfaction

This table shows the percentage, frequency, mean of the employee's perception about job
security for Job Satisfaction of Everest Bank Ltd. The statement is based on the
Responsiveness and is measured in five point Likert scale i.e. strongly disagree, disagree,
neutral, agree and strongly agree.

Statements Strongl Disagre Neutra Agre Strongl N Mean

y e l e y Agree
Disagre
e
Benefits offered provide F 1 0 17 36 6 60
security for me and my % 1.7 0 28.3 60 10 10
family 0
A 28.3 70 10 3.7667
% 0
No stress while doing my F 3 14 22 19 2 60
job % 5 23.3 36.7 31.7 3.3 10
0
A 28.3 36.7 35 10 3.05
% 0
Weighted Average Mean 3.4083
5
Source: Field Survey, 2017

Table 2.3 shows the response about job security for job satisfaction. Among the 60 employees,
maximum (70%) agree the benefits offered provides security for them and their family. 28.3%
are neutral and 1.7% disagree with this statement. The mean value of this statement is 3.7667.

35% agreed that they don't feel stress while doing their job while majority(36.7%) are neutral
and 28.3% don't think there is no stress while doing the job. The mean value of this statement

24
is 3.05. This indicates that there is no clear idea regarding job stress at Everest Bank Ltd.

Table 2.4
Employee's response about Promotion for Job Satisfaction

This table shows the percentage, frequency, mean of the employee's perception about
promotion for Job Satisfaction of Everest Bank Ltd. The statement is based on the
Responsiveness and is measured in five point Likert scale i.e. strongly disagree, disagree,
neutral, agree and strongly agree.

Statements Strongl Disagre Neutra Agre Strongl N Mean

y e l e y Agree
Disagre
e
Receive coaching and F 3 11 19 26 1 60
feedback that supports my % 5 18.3 31.7 43.3 1.7 10
career development 0
A 23.3 31.7 45 10 3.183
% 0 3
Promotion duration F 4 18 18 18 2 60
defined by the bank in its % 6.7 30 30 30 3.3 10
policy is reasonable 0
A 36.7 30 33.7 10 2.933
% 0 3
Weighted Average Mean 3.058
3
Source: Field Survey, 2017
Table 2.4 shows employee's perception of promotion towards job satisfaction. The
majority(45%) feel that they receive coaching and feedback that supports their career
development. 31.7% are neutral on their view and 23.3% do not agree with this statement. The

25
mean value of this statement is 3.1833.

33.3% agreed the promotion duration defined by bank's policy is reasonable.30% are neutral
and the majority(36.7%) don't agree with the statement. The mean value of this statement is
2.9333. Here majority of the respondents are not satisfied with the promotional period of
promotion.

Table 2.5
Employee's response about Leadership for Job Satisfaction

This table shows the percentage, frequency, mean of the employee's perception about
leadership for Job Satisfaction of Everest Bank Ltd. The statement is based on the
Responsiveness and is measured in five point Likert scale i.e. strongly disagree, disagree,
neutral, agree and strongly agree.

Statements Strongl Disagre Neutra Agre Strongl N Mean

y e l e y Agree
Disagre
e
Leadership at this bank F 1 3 24 31 1 60
encourages initiative % 1.7 5 40 51.7 1.7 10
0
A 6.7 40 53.3 10 3.466
% 0 7
I feel that my suggestions F 4 0 24 29 3 60
are welcomed and valued % 6.7 0 40 48.3 5 10
by our leaders 0
A 6.7 40 53.3 10 3.516
% 0 7
Weighted Average Mean 3.491

26
 7
Source: Field Survey, 2017

Table 2.5 shows employee's response of leadership for job satisfaction. The maximum(53.3%)
agreed that the leadership at Everest Bank Ltd. encourages initiatives whereas 40% are neutral
and 6.7% disagree with this statement. The mean value of this statement is 3.4667.

53.3% hold majority on their suggestions being welcomed and valued by their leaders. 40%
are neutral on their view and 6.7% don't feel their suggestions are welcomed and valued. The
mean value of this statement is 3.5167.

Table 2.6

Employee's response about coworkers for Job Satisfaction

This table shows the percentage, frequency, mean of the employee's perception about
coworkers for Job Satisfaction of Everest Bank Ltd. The statement is based on the
Responsiveness and is measured in five point Likert scale i.e. strongly disagree, disagree,
neutral, agree and strongly agree.

Statements Strongl Disagre Neutra Agre Strongl N Mean

y e l e y Agree
Disagre
e
In my bank, we work in F 0 0 1 32 27 60
team % 0 0 1.7 53.3 45 10
0
A 0 1.7 98.3 10 4.4333

27
 % 0 3
My coworkers help each F 0 0 2 30 28 60
other % 0 0 3.3 50 46.7 10
0
A 0 3.3 96.7 10 4.4333
% 0 3
Weighted Average Mean 4.4333
3
Source: Field Survey, 2017

Table 2.6 shows the relationship between coworkers for job satisfaction. Here, the
majority(98.3%) agreed that in their bank they work in team and 1.7% is neutral. The
mean value of this statement is 4.43333.

96.7% agreed that their coworkers help each other and 3.3% are neutral on their view.
The mean value of this statement is 4.3333

Table 2.7

Overall Job Satisfaction of Employees

This table shows the percentage, frequency, mean of the employee's perception for overall Job
Satisfaction of Everest Bank Ltd. The statement is based on the Responsiveness and is
measured in five point Likert scale i.e. strongly disagree, disagree, neutral, agree and strongly
agree.

Statements Strongl Disagre Neutra Agre Strongl N Mean

y e l e y Agree
28
 Disagre
e
Satisfied with responsibility F 0 2 15 37 6 60
of my job % 0 3.3 25 61.7 10 10
0
A 3.3 25 71.7 10 3.7833
% 0
No worry about losing my F 3 18 16 21 2 60
job % 5 30 26.7 35 3.3 10
0
A 35 26.7 38.3 10 3.0167
% 0
This bank provides F 2 11 28 18 1 60
adequate opportunity for % 3.3 18.3 46.7 30 1.7 10
training and professional 0
development A 21.6 46.7 31.7 10
% 0 3.0833
Management team provides F 0 4 19 27 0 60
effective leadership for % 0 6.7 31.7 61.7 0 10
bank 0
A 6.7 31.7 61.7 10 3.5500
% 0
Management and F 0 2 8 40 10 60
employees treat one % 0 3.3 13.3 66.7 16.7 10
another with respect 0
A 3.3 13.3 83.4 10 3.9667
% 0
Weighted Average Mean 3.52
Source: Field Survey, 2017

Table 2.7 represents the overall satisfaction of employees towards their job. Majorities
(71.7%) are satisfied with responsibility of their job, 25% are neutral and 3.3% are not
satisfied with responsibility of their job. The mean value of this statement is 3.7833.
38.3% agree that they do not worry about losing their job. 26.7% are neutral and 35% don't
agree with the statement as they worry about losing their job. The mean value of this statement
is 3.0167.

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31.7% agree that bank provides adequate opportunity for training and professional
development. The majority(46.7%) are neutral with the statement while 21.6 do not agree with
it. The mean value of the statement is 3.0833.

The majority(61.7%) of employees agreed that the bank provides effective leadership. 31.7%
are neutral and 6.7% do not agree with the statement. The mean value of this statement is 3.55.

83.4% of total employees agree that the management and employee treat each other with
respect. 13.3% are neutral on their view and 3.3% do not agree with the statement. The mean
value of this statement is 3.9667.

Table 2.8

Ranking of Job Satisfaction Factors in order of employees preference

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The table shows the answer to the survey question: “please rank the determinants according
to its importance" by assigning 1 to the most important one and 5 to the least important one.”

Factors that influence the job Ranking of preference in %(1=Most Composit Result
satisfaction important; 6=Least Important) e Ranking
1 2 3 4 5 Statistic
Salary 43.3 10.3 .7 8.3 11.7 2.357 1st
Promotion 18.3 33.3 25 16.7 6.7 2.602 2nd
Job Security 18.3 30 30 11.7 10 2.651 3rd
Leadership 11.7 15 6.7 31.7 35 3.636 4th
Co-workers 3 11.7 11.7 31.7 36.7 3.771 5th
Total 100 100 100 100 100
Source: Field Survey, 2017

Table 2.8 shows the preference of the employees towards different determinants of job
satisfaction. The employees have assigned the value as their perception towards the
importance of variables. The composite ranking statistic for each factor is presented in the
second last column which is calculated as the sum of the product of the response percentage
and the preferred value across all five preferred value (i.e. 1, 2, 3, 4, 5). For example
composite ranking statistics for first row(salary) is:
.433*1+.103*2+.267*3+.083*4+.117*5=2.357.

The majority(43.3%) of employees have mostly preferred salary as the most important factor
and the composite ranking static is lowest i.e. 2.357 which indicates salary as the very
important factor for job satisfaction. Likewise, the second choice of employees is promotion
with composite ranking statistic 2.602, third choice job security with 3.636, fourth choice
leadership with 3.636 and the least important factor is considered as the relationship with co
workers with maximum composite statistic ranking with 3.771.

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2.3 Correlation analysis

This section of the study presents the results and discussions of the correlation analysis. The
correlation analysis has been carried out to investigate the direction and magnitude of the
relationship of employee satisfaction with salary, job security, promotion, leadership and
relationship with co workers. The strength of linear association between two variables in a
population is determined by the correlation coefficient. The Kendal tau correlation coefficients
of selected dependent variable with independent variables are presented in Table 2.9.

Table 2.9

Correlation analysis

This table reveals the Kendal tau correlation coefficient relationship between employee job
satisfaction and determinants of job satisfaction of Everest Bank Ltd.

Satisfaction Salary Job Promotion Leadership Co workers

Security
Satisfaction 1
Salary .257* 1
JobSecurity .356** .260* 1
Promotion .333** .348** .260* 1
Leadership .379** 0.19 .241* 0.082 1
Coworkers .257* 0.197 0.135 0.14 .337** 1
Source: SPSS results based on responses on survey questionnaire in appendix
* ​Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed).

The results show that there is positive relationship between salary and job satisfaction which
indicates that higher the salary, higher would be the employee job satisfaction. Likewise, the
study observed positive relationship between job security and customer satisfaction
indicatinghigher the level of job security, higher would be employee job satisfaction.
Similarly, the positive relationship between promotion and job satisfaction reveals that good

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promotion opportunities lead to an increase in the job satisfaction. The result shows that
leadership and job satisfaction are positively correlated, which indicates that higher the
leadership opportunities, higher would be employee job satisfaction. Similarly, the positive
relationship between co workers and job satisfaction represents that good relationship with
coworkers contributes to higher job satisfaction.

Here, the higher correlation coefficient is 0.379 which indicates that leadership
contributeshigher to achieve employee job satisfaction and is more significant at 1 percent and
the lowestcorrelation coefficient is 0.082. Since all the independent variables are positive and
significant to the dependent variable (employee satisfaction). This indicates that the
determinants have very important role for the employee job satisfaction.

2.4 Major Findings

Based on the analysis of data, the major findings of the study are summarized as under:
1. Weighted Average Mean Score for contribution of salary for employee satisfaction is
3.84 which show that salary has highly affected on employee's performance for job
satisfaction.
2. Weighted Average Mean Score of Job security for employee satisfaction is 3.41 which
shows that employee need to feel safe and secure about their job to work efficiently in
the organization.
3. Weighted Average Mean Score of promotional opportunities for employee job
satisfaction is 3.06 which revealed that employees require the proper training and
career development opportunities for the employee satisfaction.
4. Weighted Average Mean Score of Leadership opportunity for employee job
satisfaction is 3.49 which revealed that the leadership plays important role in satisfying
the employees to increase the bank's performance.
5. Weighted Average Mean Score of relationship with co workers for employee job
satisfaction is 3.4333 which states that employees need each other in the organization

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 and the sound relation with co workers help to increase employee job satisfaction.
6. Weighted Average Mean Score of the overall job satisfaction of employees is 3.52
which shows that all the determinants contribute for the job satisfaction and every
factor is important for increasing the employee satisfaction.
7. The correlation between employee satisfaction with that of salary is positively
significant at 1% level of significance which indicates higher the salary higher will be
the job satisfaction.
8. The correlation between employee satisfaction with that of job security is positively
significant at 1% level of significance which indicates higher the job security higher
will be the job satisfaction.
9. The correlation between employee satisfaction with that of promotion is positively
significant at 1% level of significance which indicates higher the promotional
opportunities higher will be the job satisfaction.
10. The correlation between employee satisfaction with that of leadership is positively
significant at 1% level of significance which indicates better the leadership
opportunities higher will be the job satisfaction.
11. The correlation between employee satisfaction with that of co workers is positively
significant at 1% level of significance which indicates better the relationship with co
workers the job satisfaction will be more.
12. The majority of the employees preferred salary as the important factor for job
satisfaction with composite ranking statistic (CRS) 2.357 which is ranked as 1st, the
2nd choice of the employees was promotion with CRS 2.602. Likewise the 3rd choice
is Job security with CRS 2.651, 4th choice leadership with CRS 3.636 and the
employees considered relationship with co workers the least important factor for job
satisfaction with CRS 3.771.

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 Chapter III
CONCLUSION AND ACTION IMPLICATIONS

This chapter deals with the highlight of the major findings of the study.The major conclusions
are discussed in this chapter and the practical implications resulting from this study.

3.1 Conclusion

The major conclusion of this study is that the various variables play a vital role in determining
the job satisfaction of Everest Bank Ltd. The determinants such as salary, job security,
promotion, leadership and coworkers lead to higher job satisfaction of the employees. This
indicates that the bank should give more emphasis on these determinants for employee
satisfaction. Salary is the most influencing factor for the employee satisfaction. After salary,
promotion is considered to contribute for job satisfaction. Employees then look for their job
security, leadership and the least preferred by the employees is relationship with co workers.

The study observed that there is positive relationship between salary and job satisfaction.
Higher the salary, higher will be the employees job satisfaction. Similarly, employee job
satisfaction is positively related with job security, promotion, leadership and co workers so
bank must focus on these variables to be fulfilled to provide employee with maximum
satisfaction. Thus, the study have found out the major factor for employee satisfaction is salary

35
and other variables also contribute for the employee job satisfaction.

3.2 Limitation of the study

1. This study is confined in Everest Bank branches so the study does not incorporate wide
character of respondents from various banks.
2. The study is confined in a particular bank of Kathmandu only. The sample considered
is very small as it only addresses sixty employees from ten branches.
3. The study deals with salary, job security, promotion, leadership and co workers as the
determinants of employee job satisfaction. There are other variables like duration of
work, loyalty etc which are not included as variables in this study.
4. The employees in Everest Bank were not characterized by the department they work in
but the study comprises employees from all departments in the bank.

3.3Action Implications

The survey showed that the salary is the most influencing factor to satisfy the employees in
Everest Bank Ltd. It has been found that majority of the employees are not satisfied with the
promotional period defined by bank. The findings of this study can be an important issue in
banking industry to keep employee satisfaction in high priority and make necessary changes to
enhance the bank's performance and profitability. The findings can assist in developing
employee satisfaction and be a way for research of employee job satisfaction in all other
commercial banks of Nepal.

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