The relationship Between Compensation Management

and Job satisfaction Among Bank employees.

Name: MD. Abrar Galib Chowdhury

Matric ID: R193128
Program: MBA
Supervisor: DR.MD Akhtaruzzaman Khan.

International Islamic University,Chittagong.

 Rationale of the Study
The objective of this study is to test the effect of
compensation practices on employee job
satisfaction. And it will explore the importance Job
Satisfaction practice on various aspects of the service
provided by the Banks and at the same time
assessed the current satisfaction levels of the
customers.
 Objectives
• To find-out if there is a relationship between
direct financial compensation and job satisfaction
• To determine if a positive relationship between
indirect financial compensation and job
satisfaction exists.
• To find relationship between non-financial
compensation and job satisfaction.
• To investigate the effect of pay on employee job
satisfaction.
• To investigate the impact of equity on the job
satisfaction of bank employees.
 Summery of Literature
• Compensation has a deep relation with employees job
satisfaction. Compensation according to Walker (1998) is what
an employee is given as a salary, bonus and other benefits
such as monetary interchanges that employees get as a result
of improved performance. job satisfaction is an issue that
involve how employees feel at a work place or the employee’s
state of mind in relation to their work.There are 4 main
components of job satisfaction:
1.Pay 3.Promotion Opportunity
2.Recognition 4.Meaningful Work
 Effect of Job satisfaction
• It increases efficiency and effectiveness at work.
• It helps to reduce employee’s absenteeism.
• It promotes harmonious employee’s relation.
• It enhances organization’s productivity and
employee’s satisfaction.
• It helps to decrease employee’s turnover.
• It helps to improve the image of the organization.
 Kinds of Compensation
• Direct Compensation: It can best be describe as a reward
given to employees at a regular basis upon work done. These
compensations includes wages, salaries, commissions and
bonuses.
• Indirect Compensation: It includes non-monetary benefits
provided to workers, such as pension funds, mobile phones,
company cars, health and life insurance, overtime pay, and
annual leave. Instead of being paid directly to an
employee, indirect compensation is calculated as an extra
component of the base salary.
 Need for a Good Compensation
• A good compensation package is important to motivate the
employees to increase the organizational productivity.
• Unless compensation is provided no one will come and
work for the organization. Thus, compensation helps in
running an organization effectively and accomplishing its
goals.
• Salary is just a part of the compensation system, the
employees have other psychological and self-actualization
needs to fulfill. Thus, compensation serves the purpose.
• The most competitive compensation will help the
organization to attract and sustain the best talent. The
compensation package should be as per industry standards.
 Methodology
PROJECT DESIGN
• This project report typically focused on the relationship of job satisfaction of the employees which
depends on compensation package or not, but there is some descriptive information to.
DATA SOURCE:
• Primary and secondary are the two sources of data collection. Data had collected on the basis of
need which has significant impact on research report.
Primary sources:
• Primary information collected through survey as well as interview with employees.I had conduct
survey to asked Management and other officials concerned about the current information and
performance of the bank.
Secondary sources:
• Some secondary sources have been used for the report. At present time the Internet is the most
viable important source of gathering information. I have to use the search engine Google to get the
information. Those data will be qualitative and informational.
• Websites of the Banks and others.
• Different publications regarding banking functions.
DATA PROCESSING INSTRUMENT
I processed my data through the following operating system:
• SPSS
• MS Word
• MS Excel
 Analysis Of Data
Gender

Frequency Percent Valid Percent Cumulative Percent

Valid Male 64 91.4 91.4 91.4
Female 6 8.6 8.6 100.0
Total 70 100.0 100.0
Religion
Frequency Percent Valid Percent Cumulative Percent
Valid Muslim 57 81.4 81.4 81.4
Hindu 7 10.0 10.0 91.4
Buddhist 3 4.3 4.3 95.7
Christian 3 4.3 4.3 100.0
Total 70 100.0 100.0
Education
Frequency Percent Valid Percent Cumulative Percent
Valid Master 41 58.6 58.6 58.6
PhD 11 15.7 15.7 74.3
Others 18 25.7 25.7 100.0
Total 70 100.0 100.0
Merital status
Frequency Percent Valid Percent Cumulative Percent
Valid Single 30 42.9 42.9 42.9
Married 40 57.1 57.1 100.0
Total 70 100.0 100.0

Following this we got to know that the profile of respondents with the majority of them being male
91.4, about 81.4% respondent are muslim with a majority of them masters graduate 41 (58.6%).The
officer respondents are very high (58.6%) and most of them are married.
Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

equity1 70 2.00 5.00 4.2143 .74001
equity2 70 2.00 5.00 4.3714 .74545
equity3 70 3.00 5.00 4.5429 .67428
equity4 70 2.00 5.00 4.3714 .70549
direct financial
compensation1 70 2.00 5.00 4.4000 .68947
direct financial
compensation2 70 1.00 5.00 4.3143 .94090
direct financial
compensation3 70 3.00 5.00 4.0571 .79647
direct financial
compensation4 70 2.00 5.00 3.9000 .90330
direct financial
compensation5 70 3.00 5.00 4.1286 .65765
indirect financial
compensation1 70 1.00 5.00 3.1143 2.01115
indirect financial
compensation2 70 5.00 5.00 5.0000 .00000
indirect financial
70 3.00 5.00 4.0571 .61115
compensation3
indirect financial
70 1.00 5.00 3.3429 1.98462
compensation4
non financial
70 3.00 5.00 4.7286 .61199
compensation1
non financial
70 3.00 5.00 4.1429 .64349
compensation2
non financial
70 4.00 5.00 4.3571 .48262
compensation3
non financial
70 3.00 5.00 4.0143 .55149
compensation4
non financial
70 3.00 5.00 4.0286 .58907
compensation5
employee satisfaction1
70 2.00 5.00 4.1571 .87866
employee satisfaction2
70 3.00 5.00 4.1429 .72803
employee satisfaction3
70 1.00 5.00 3.8571 .83901
employee satisfaction4
70 3.00 5.00 4.2714 .67933
employee satisfaction5
70 3.00 5.00 4.1714 .63637
employee satisfaction6
70 3.0 5.0 3.829 .6804
employee satisfaction7
70 3.00 5.00 4.1000 .59344
management support1
70 3.00 5.00 4.1571 .62868
management support2
70 3.00 5.00 4.1571 .73496
management support3
70 1.00 5.00 3.5143 1.94670
management support4
70 3.00 5.00 4.2714 .67933
Valid N (listwise)
70
 Findings
• Employee’s age mostly belongs to the age range of 26 years to 30 years.
• 80% Employee Believes that their compensation package makes them
happy.
• 61% of the employees agreed that a good compensation package is the
motivation to show more efficiency in work.
• Among 70 respondents, 20% employees agreed that The Management
gives value to their contribution for the organization.
• A large number of respondents disagreed that Management invest in
training and development for the team effectiveness.
• 66% of respondents are guaranteed about their job.
• 79% of respondents claim that they have to stay busy maximum of the
time.
• 87% of respondents are not willing to leave that bank where they work
because the compensation system is good.
 Recommendation
• The management should pay attention to the work load of the
employees. Because it is very difficult for an employee to take
pressure of two or many employees. The work load is high.
• The management should introduce the transportation facilities
because it is difficult for an employee to attend the office in time
when the office is far away from his home.
• Employees are interested in having friendly environment.
Therefore management must get more acquainted with this
employees and make employees see them as a leader, not as a
boss.
• Since employees are interested in having good cooperation with
colleagues, management should make sure to have a working
environment where good cooperation and mutual respect exist.
• Management should pay their attention on providing satisfying
salary for employee contribution.
 CONCLUSION

• Banks play an important role in the economy for offering a service for
people wishing to save. Banks also play an important role in offering
finance to businesses who wish to invest and expand. These loans and
business investment are important for enabling economic growth.

• There are many benefits to implementing a regular and systemic Human

Resource Practices system within an organization. In order to gain the
most benefit from performance appraisals it is recommended that a
system is developed in consultation with workers and managers and clear
link are established between appraisals and value rewards and outcomes.

• Finally if the Banks control their expense by HRM and Take proper steps to
overcome their little limitations, they will never face any difficulties
THANK YOU SIR