Professional Documents
Culture Documents
Final RB
Final RB
By
Rachana Bhandari
CG Institute of Management
Thank you
Rachana Bhandari
i
Certificate of Authorship
……………………….
Rachana Bhandari
ii
Table of Contents
Acknowledgements..........................................................................................i
Certificate of Authorship.................................................................................ii
Abstract...........................................................................................................vi
List of Abbreviations....................................................................................viii
Chapter I...........................................................................................................1
Introduction......................................................................................................1
1.1. General background............................................................................................1
1.2. Statement of the problem.................................................................................10
1.3. Purpose of the study.........................................................................................11
1.4. Significance of the study.................................................................................11
1.5. Limitations of the study....................................................................................12
1.6. Over view of Sample..........................................................................................12
Nepal Bank Ltd...............................................................................................................12
Everest Bank Ltd............................................................................................................12
1.7. Organization of the study.................................................................................13
Chapter II........................................................................................................14
Literature review and conceptual framework.............................................14
2.1. Conceptual Review................................................................................................17
2.1.1 Definition of Independent Variables:...............................................................19
2.1.2 Supporting theories............................................................................................25
2.2 Review of Research Articles.................................................................................31
2.3 Review of Previous Thesis....................................................................................36
2.4 Research gap...........................................................................................................37
Chapter III.......................................................................................................38
Research methodology.................................................................................38
3.1 Research plan and design.....................................................................................38
3.2 Population and sample..........................................................................................39
3.3 Data source...............................................................................................................40
3.4 Data collection procedures..................................................................................41
3.5 Data processing procedure.....................................................................................41
3.5.1 Reliability of data................................................................................................43
3.6 Data analysis tools and techniques........................................................................45
Mean or Average..............................................................................................................46
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Standard Deviation..........................................................................................................46
3.6.1.2. Hypotheses......................................................................................................46
3.6.1.2. Correlation analysis........................................................................................47
Regression analysis.........................................................................................................47
Chapter V........................................................................................................48
Research Findings.........................................................................................48
4.1 Respondent’s profile.............................................................................................48
4.1.4 Education qualification of respondents........................................................50
4.2. Descriptive analysis.............................................................................................51
4.3. Inferential analysis:...............................................................................................58
4.3.1 Correlation.............................................................................................................58
4.3.2 Regression analysis............................................................................................61
4.4 Major findings of the study...................................................................................64
4.5 Discussion................................................................................................................66
CHAPTER V....................................................................................................67
CONCLUSION.................................................................................................67
5.1 Summary...................................................................................................................67
5.2 Conclusion................................................................................................................69
5.3 Implications.........................................................................................................70
5.4. Recommendation...................................................................................................71
REFERENCE...................................................................................................72
APPENDIX......................................................................................................77
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List of Tables
Table: 3.5.1.1: Reliability test of job satisfaction……………………………….43
Table 3.5.1.2. Reliability Statistics of Relationship and
communication………………………………………………………………........44
Table 3.5.1.3Reliability Statistics of Promotion………………………………..44
Table 3.5.1.4Reliability Statistics of Training and Development……………..45
Table 3.5.1.5Reliability Statistics of Safety and Security….......................... 45
Table 4.1.1.1: Gender of the respondents……………………………………...49
Table 4.1.2.1.: Age group hold by the respondent………………………….....49
Table 4.1.3.1.: Marital status of the respondents………….............................50
Table 4.1.4.1: Education qualification of the respondents………………….....50
Table 4.1.5.1.: Income of the respondents……………………………………...51
Table 4.2.1 Job satisfaction of employees……………………………………...52
Table 4.2.2 Relationship and communication system….................................53
Table 4.2.3 Promotion…………………………………………………………….54
Table 4.2.4 Training and Development…………………………………………55
Table 4.2.5 Safety and security…………………………………………………56
Table 4.2.6 Descriptive Statistics of Independent Variables…………...........57
Table 4.3.1.1 Correlations analysis………………………………………........59
Table 4.3.1.2 Summary of correlation and hypothesis testing……………….61
Table: 4.3.2.1 Regression analysis – model summary……………………….62
Table 4.3.2.2 ANOVA TEST…………………………………………………….63
Table 4.3.2.3 Coefficients……………………………………………………......63
Table 5.1 Summary of hypothesis test………………………..........................68
List of Figure
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Figure 2.1.1: A conceptual model of Working Environment and Job
Satisfaction…………………………………………………………………………19
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Abstract
This study has been conducted in order to find the level of employee
satisfaction in accordance to the work environment prevailing in the
Nepalese commercial banks. Based on the literature review, several
aspect of work environment has been recognized. So, the
researcher recognized some of the relevant variables such as
relationship and communication, promotion, training and
development and safety and security must be considered to develop
conductive work environment in the organization. The study is
based on the sample size of 395 where the responses were
collected in physical form. Regarding the demographic profile, out of
total respondents of 395, there are 195 females and 200 males
comprising the percentage of 49.36% and 50.63% respectively.
Similarly, out of 395 respondents, large number of respondents
belongs to age group below 30 years constituting 35.4% of the total
respondents. In addition to this, 30.6% respondents belong to age
group 31-40 years, 21.3% respondents are aged 41-50 years and
12.7% respondents are of age group 51-60 years. The data shows
that below 30 aged people are maximum involved in banking sector
followed by middle aged people. There is more involvement of youth
in banking sector in comparison to other aged people.
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With corresponding items under each variable and tested using
Likert scale of measurement, the mean identifies the range of
agreement level. This agreement level illustrates the working level of
employee satisfaction in Nepalese commercial banks. Out of this
variables, it can be summarized that employees agree that they are
satisfied with all the working environment.
viii
List of Abbreviations
ix
Chapter I
Introduction
1.1. General background
The working environment has a significant impact on employee
performance. Working conditions are said to have a significant impact on
employee performance, either negatively or positively (Chandrasekar,
2001). There are worldwide organizations that debate employee rights all
around the world. Most people spend half of their lives indoors, which has
a significant impact on their mental health, actions, abilities, and
performance (Dorgan, 1994). Many firms fail to recognize the importance
of the workplace environment for employee job satisfaction, causing
employees to have a tough time at work. Internally weak organizations are
unable to introduce innovative items into the market to outperform their
competition (Aiken, Clarke, & Sloane, 2002).
Employees are critical to a company's mission and vision being realized.
To ensure the quality of their job, employees must meet the organization's
performance criteria. Employees require a working environment that
allows them to work freely without being hindered from achieving to their
full ability in order to satisfy organizational standards. The purpose of this
study paper is to look into the effect of the workplace on employee job
satisfaction. A better workplace atmosphere is thought to result in better
outcomes and higher productivity. Employee morale will improve as a
result of the improved physical environment in the office. Various studies
of multiple offices and office buildings have been published. Various
companies and institutions are currently facing issues as a result of the
current working environment. Employers should regard the working
environment as a primary component in determining job happiness. It is
necessary to maintain the efficiency, effectiveness, and productivity of
personnel by offering various facilities in order to maintain the institutions'
constant upward progress.
Employees' most important desire is a pleasant working environment. As
a result, offering a better working environment is also a top priority for
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companies or institutions in order to keep a constant staff for company
operations. The goal of this study is to use quantitative and qualitative
analysis of contributing characters to better understand the impact of
working environment on job satisfaction. The data was collected. The
participants came from the Department of Agricultural Extension and the
Bangladesh Rural Electrification Board, respectively. The sample was
taken especially from one of Bangladesh's districts. The study found that
the working environment has a substantial impact on job satisfaction.
Organizations cannot function successfully without better facilities, and the
working environment is the most important concern of employees. As a
result, this study found that a focus on the working environment is
necessary for improved job satisfaction. Job satisfaction measures how
much an employee enjoys his or her work as well as how preoccupied he
or she is with it. Job satisfaction may be defined as a sense of comfort and
positive experience in the office that helps to reduce absenteeism and
consequently increases employee performance, which leads to greater
production (Boles et al.2004). His work has been linked by one of his
employees. Job happiness has the potential to influence work behavior
and, as a result, organizational performance. For a long time, job
satisfaction was thought to be a singular idea, but it is now recognized as
a complex collection of attitudes toward many aspects of work (Rollinson
et al., 1998). As a result, job satisfaction should be defined in terms of a
number of elements such as the kind of work, salary, stress, working
conditions, coworkers, superiors, and working hours. Working conditions
as a factor of job satisfaction include the impact of employee-related
elements, also known as subjective factors; the impact of environmental
factors; and the impact of organizational factors, which are generally
related to production organization. The impact of the workplace on job
happiness cannot be overstated. Why do some people enjoy their work
schedules and achieve more than others? While some people eagerly
anticipate the activities of the next day at work, others are overwhelmed
by the prospect of the job ahead and the activities of the next day. Several
research has been carried out to investigate the link between employee
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happiness and longevity and employee performance. Indeed, all of these
studies had one thing in common: employee satisfaction is linked to their
working environment. Over the years, manufacturers, responsible
employees, social workers, industrial and organizational psychologists,
and others have been concerned about excessive.Elton Mayo's study in
the Hawthorne Company plant led to the development of the concept of
worker contentment with their jobs. Workers' working actions can be
influenced by their feelings, according to the findings of the study. The
essential foundations of job satisfaction or job satisfaction and personnel
efficiency are social interactions and psychological factors. Employee
performance has become increasingly dependent on job satisfaction. The
most important goal of a company, among others, is to exhaust all options
for obtaining the highest employee performance in order to meet defined
goals.
Job satisfaction is a key indicator of the quality of one's working life and is
a major variable in work and organizational psychology. Job satisfaction is
influenced by a number of elements, including the quality of relationships
with superiors and coworkers, work fulfillment, and advancement
opportunities. Employees that are satisfied are more productive and
innovative. There is a direct link between physician and patient happiness,
according to studies. Job satisfaction aids in the achievement of corporate
goals by increasing work productivity. As a result, most businesses use a
standard rate of value-added to calculate their profit or productivity
returns. According to Vroom (1964), a person who performs a job role
based on emotion is one who is satisfied. Job satisfaction can motivate
employees and improve work performance. Since the beginning of time,
job happiness has been a hot topic among researchers and academics.
This critical issue drew the passionate attention of researchers after the
foundation of industrialization, and it is presently being applied to every
organization in the world. The education sector has also been transformed
into an organization, and the subject of education has been a key focus of
interest for researchers, with the goal of assessing teacher work
satisfaction. Teacher job satisfaction, particularly at the higher levels, is
3
critical. The importance of higher education cannot be overstated; it is
critical to equip professors with adequate facilities. Employees prefer
working conditions that are not risky or unpleasant, according to studies
on working environments as a factor of job satisfaction (Robbins, 1998).
They want workplace situations that are comparable to what they
experience at home. In addition, studies have revealed a link between
working conditions and job satisfaction (Brill et al., 2001; Newsham et al.,
2004; Finnegan and Solomon, 1981; Leather, et al., 1998, Veitch et al.,
2005; Newsham et al., 2009; Kinzl et al., 2005). The purpose of this study
is to examine and compare two types of employees, those who work in
normal (pleasant) working conditions and those who work in challenging
working conditions, to determine the impact of working conditions on job
satisfaction. As a result, the following research questions will be
addressed in this paper: whether there are differences in overall job
satisfaction between employees who work in difficult working conditions
and those who work in normal working conditions; whether working
conditions are an important factor in overall job satisfaction for employees
who work in difficult working conditions; and whether there is a difference
in satisfaction with working conditions between the two groups. Job
satisfaction is mostly a psychological trait. It varies from person to person
and is dependent on the personnel. It essentially denotes the emotional
implications that enable employees to function at work. To put it another
way, job satisfaction is the associated compactness of physiological,
psychological, and environmental conditions necessary to accomplish the
assigned role. Employees are said to leave businesses if they are
dissatisfied with their rights, working atmosphere, coworker behaviors, and
managers' decision-making abilities.
Job Satisfaction
Job satisfaction, according to Vroom (1964), is an emotional orientation
that people have toward the role they play at work. Job satisfaction is a
critical factor in motivating and encouraging employees to improve their
performance. Over the years, many people have defined occupational
happiness. Job satisfaction is defined by Hoppok & Spielgler (1938) as an
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integrated collection of psychological, physiological, and environmental
variables that motivate employees to declare they are content or happy
with their occupations. Furthermore, the importance of workers at work is
highlighted, as numerous factors influence an employee's performance
within the firm. Clark (1997) claims that if employees are dissatisfied with
the task at hand, they are unsure of their rights, working conditions are
unsafe, coworkers are uncooperative, supervisors do not respect them,
and they are not considered in the decision-making process, causing them
to feel disconnected from the organization. Furthermore, he stated that in
today's world, businesses cannot afford disgruntled employees since they
will not perform up to their supervisor's expectations and may be fired,
causing businesses to incur additional costs in recruiting new personnel.
As a result, it is advantageous for businesses to give employees with a
flexible working environment in which they feel appreciated and a part of
the corporation. Employee morale should be good since it will reflect in
their performance because low morale will drive them to put in fewer
attempts to develop. Employee performance has become increasingly
dependent on job satisfaction. The most important goal of a company,
among others, is to exhaust all options for obtaining the highest employee
performance in order to meet defined goals. There are numerous
definitions and explanations of job satisfaction in theory. While some
definitions focus on job satisfaction as a primary sensation without
considering the different components, others incorporate all of the aspects
that influence overall job satisfaction. So, according to Locke (1976), job
satisfaction is defined as a pleasurable or positive emotional state
associated to the work that an individual performs. Job satisfaction is
defined by Leap and Crino (1993) as a worker's attitude toward his job,
the benefits he receives, and the social, organizational, and physical
qualities of the environment in which he executes his work activities.
Furthermore, job satisfaction is a favorable or pleasurable reaction to
one's work (Milkovich and Boudreau, 1997). Job satisfaction is determined
by an employee's assessment of his job and the benefits he obtains in
5
relation to the work he does and the working environment (Black and
Steers, 1994).
Job satisfaction refers to how enthusiastic employees are about their
work. Lies et al. (2009), for example, defined Job Satisfaction as a more
dynamic work attitude, approach, methods, and styles. Job satisfaction is
a variable that many researchers and industrial/organizational
psychologists test, according to Hashmi Irshad et al. (2014). Employees
experience job satisfaction as a result of their work experiences. Job
happiness is unquestionably an intriguing topic from the perspective of
both employees and managers and scientists. Employees, on the one
hand, have their own expectations and attitudes, and they expect to be
treated fairly and respectfully in order to be fulfilled at work. Managers, on
the other hand, desire contented employees who have a favorable attitude
about their jobs, are committed, and emotionally invested in their work.
Employees and their knowledge are becoming a significant aspect in
obtaining competitive advantage in today's company environment, which
explains the growing interest in job happiness. Job happiness, according
to scientists, has ramifications for numerous elements of organizational
behavior.
Working Environment
Work and context are two main factors that make up the working
environment. Work encompasses all aspects of a job, including how it is
carried out and completed, as well as tasks such as task activities training,
control over one's own job-related activities, a sense of accomplishment
from work, variation in jobs, and intrinsic value for a task. The intrinsic part
of job happiness has been the subject of several study publications. The
psychological work environment describes the mental activity that a
worker engages in during working hours or while on the job. Good
descriptions and references to various sources of information on stress,
bullying, working needs, collaboration and conflict, and other topics are
included in the psychological work environment. Within the psychological
work environment, stress and well-being are themes. The working
environment is one of the most important aspects that influences
6
employee satisfaction and motivation. The urge for job and activity,
according to social, organizational, and physical conditions, has an impact
on workers' performance. Employee productivity is heavily influenced by
the setting in which they work. The shortened job satisfaction rate is the
most important empirical evidence that indicates poor working conditions
in a business. There were no significant relationships between task
demands (complexity of demands, unpredictability of work) and task-
related issues (concentration demands, time pressure, work interruptions)
and job satisfaction. However, characteristics related to workplace control
(effects on task handling, time control, and involvement) have a significant
impact on job satisfaction, demonstrating that having more control over
work leads to higher job satisfaction. The working environment is viewed
differently by different researchers. A working environment is a location
where a specific task is to be completed. Other elements such as quality,
quantity, process, technique, and benefits are included. Working
environment, according to Chan and Huak (2004), refers to the social,
ecological, physical, environmental, mental, and emotional manifestations
of employees in the institution and organization where they work. Working
environment, according to McCoy and Evans (2005), refers to a pleasant
work atmosphere that does not cause stress among employees to perform
their given duties. Employees are entirely satisfied and encouraged by the
good working circumstances and atmosphere, according to Sager et al.
(2012). Employees feel joyful, safe, and relaxed because of the favorable
conditions. Workers consider a variety of factors, including the nature of
job, expected income, and opportunities for advancement. These factors
influence an employee's degree of satisfaction, which has an impact on
his or her performance.
Workers become satisfied and productive when there is a big change in
remuneration, promotions, and perks, according to a study. There are two
dimensions to the working environment. The first is the working
environment's physical condition, and the second is the social situation.
The worst case scenario, according to the findings, is when companies
place a lower priority on the working environment. Furthermore, the
7
working environment conforms with job security, employee safety,
performance appreciation, motivational amenities, and maintaining good
communication among coworkers and supervisors. He explained that
receiving sufficient attention from the organization strengthens the
employee's loyalty to the organization. Although, for a better working
environment, issues such as salary rate, flexible working hours, and
involving employees in decision-making are also important. Employees
and supervisors now face critical scenarios when one of them is not
attentive to the other, which occurs when the supervisor does not provide
adequate feedback or when employees do not share ideas. A proactive
management system also provides better working environment rather than
of reactive management system. Attaining the goal of an organization
depends much on the understanding between employees and supervisors
whereas the smooth flow of information plays a vital role to run the
organizations. The above discussion made this study focus on the
objectives to discover the impacts based on the relationship between the
working environment and job satisfaction.
Attaining the goal of an organization depends much on the understanding
between employees and supervisors whereas the smooth flow of
information plays a vital role to run the organizations. The above
discussion made this study focus on the objectives to discover the impacts
based on the relationship between the working environment and job
satisfaction. Most managers link worker’s movement from one job to the
other with better conditions of services. However, is of the view that
workers leave because of poor management practices or toxic cultures.
This cavernous disparity between belief and reality keeps organizations
from addressing the costly problems of employee extrication and
regrettable turnover with on-target solutions. A deeper understanding of
why people leave are not captured in exit interviewing to assist
organizations in identifying, preventing, and correcting the root causes of
these problems. To establish and confirm how to satisfy employees via
manipulation of the environment then becomes of great interest to
management of various organizations.
8
Results have shown that there is a positive link between work environment
and intrinsic aspect of the job satisfaction. Further they described the
second dimension of job satisfaction known as context comprises of the
physical working conditions and the social working conditions (Sousa-
Poza & Sousa-Poza, 2000; Gazioglu & Tanselb, 2006; Skalli,
Theodossiou, & Vasileiou, 2008).
The conditions under which a job is performed can be different - from
those completely comfortable to those very difficult and dangerous to
employees’ life and health. Difficult working conditions can be influenced
by: external factors that include climate - meteorological conditions,
temperature, humidity, drafts, lighting in the workplace, noise and
interference, gases, radiation, dust, smoke and other harmful factors;
subjective factors that include gender and age of the worker, fatigue,
monotony, unfavorable posture during work, etc.; factors related to the
organization of production such as duration of the work shift, work
schedule, working time, work pace, excessive strain etc. Working
environment plays an important role towards the employees ‘performance.
Working environment is argued to impact immensely on employees’
performance either towards negative or the positive outcomes
(Chandrasekar2001). In the world, there are international organizations
who debate the rights of employee. Most people spend fifty percent of
their lives within indoor environments, which greatly influence their mental
status, actions, abilities and performance (Dorgan, 1994). Better outcomes
and increased productivity is assumed to be the result of better workplace
environment. Better physical environment of office will boost the
employees and ultimately improve their productivity. Various literature
pertain to the study of multiple offices and office buildings indicated that
the factors such as dissatisfaction, cluttered workplaces and the physical
environment are playing a major role in the loss of employees’ productivity
(Carnevale 1992,Clements- Croome 1997).
Based on the above discussion, the objective of this paper is to determine
the relationship between the working environment and employee job
satisfaction.
9
The working environment is the prime concerning issue to run an
organization. But many organizations fail to understand the importance of
the working environment and thus suffer a lot to keep up with the
production in a steady upward manner. These types of organizations are
considered as internally weak. As employees are the contributor to a
successful organization, therefore, meeting up with the required services
from the employees providing proper working environment is mandatory.
A better working environment ensures perfect output of the result.
Organizations need to ensure better environment for the employees to
keep them away from the situations which hinder productivity. And,
enables the employees to work on their full potential. Therefore, this study
was conducted with the objectives to understand the impact of working
environment on job satisfaction.
10
deriving abundant satisfaction from the jobs he undertakes, by looking
upon its worthy performance as a great challenge to be faced.
Employees are the backbone of any organization. They are the most
precious and important assets among all the assets of any organization.
Hence, the study aims to understand the employees are actually satisfied
with working environment and working condition. Researchers have
analyzed that there are various factors that can affect job satisfaction of
the employees. If employees are satisfied, the organization moves to
success. There are many factors to define the level of employee’s
satisfaction such as good and fair salary, good relationship between
subordinates and top management, good work environment, age, gender,
race, tenure, to remove poor working condition, job security, safety and
many more. This study covers job promotion and job advancement. Thus,
on the basis of problem statement, the research questions that address
are:
i. What is the working condition of employees?
ii. What is the level of employee satisfaction?
iii. Does work environment have effect on job satisfaction?
11
turn the employee’s job satisfaction will be high. Hence, the significance
of this study is to understand work environment of employees in
Nepalese commercial banks. Findings of this research might be very
important to academicians as well as the practitioners. In addition, the
study would also be useful to employees, customers and any persons
actively involved in banking sector. Moreover, the study can be
significant to academicians and students who are willing to learn about
different factors and its impact on job satisfaction of commercial banks
and also to those who wanted to pursue their career in banking sector.
Taking all the above issues into consideration, this study will help to
analyze the effect of relationship and communication system, quality of
work life, appreciation, incentive system and safety and security on job
satisfaction among the commercial banks of Nepal.
12
(holding 20% equity). Owing to its performance during the year 2012-13, the
Bank earned many laurels & accolades in recognition to its service & overall
performance. Recently, PNB was awarded with “IDRBT Banking Technology
Excellence Award” under Customer Management & Intelligence Initiatives.
The Bank also bagged “Golden Peacock Business Excellence Award 2013”
by Institute of Directors. Similarly, the Bank was recognized as ‘Best Public
Sector Bank ‘by CNBC TV 18. The bank has now more than 7,000 branches
and 8,500 ATMs spread all across India. As a joint-venture partner, PNB has
been providing top management support to EBL under Technical Service
Agreement. Everest Bank Limited (EBL) provides customer-friendly services
through its wide Network connected through ABBS system, which enables
customers for operational transactions from any branches. The bank has 102
branches, 132 ATM counters, 31 revenue collection counters and 3 extension
counters across the country making it a very efficient and accessible bank for
its customers, anytime, anywhere. Source:https://everestbank.com
Sanima Bank
Sanima, promoted by prominent and dynamic Non-Resident Nepalese
(NRNs) Businessmen, commenced its operation in 2004 as a National Level
Development Bank. Since February 2012, Sanima has been functioning as an
"A" Class Commercial Bank with its registered office at 'Alakapuri', Naxal,
Kathmandu. Sanima Bank offers a wide range of banking products and
financial services to corporate and retail customers through 86 full-fledged
branches and 17 extension counters from all 7 provinces with 9 arab
authorized capital and 8 arab issued and paid up capital.
Chapter II
Literature review and conceptual framework
A literature review is an evaluative report of information found in the literature
related to your selected area of study. The review should describe,
summarize, evaluate and clarify this literature. It should give a theoretical
base for the research and help you (the author) determine the nature of your
research. Works which are irrelevant should be discarded and those which
are peripheral should be looked at critically. Job satisfaction has remained
most attractive topic for researchers since its interception in 1900s. Derrick
and Glasson (1988) concluded that job satisfaction effects on employee and
organizational productivity. Fredrik Tyler focused on the evaluation of
individual inspiration towards work and performance when his/her economic
requirements are fulfilled.
Work Environment
An attractive and supportive work environment is critical to job satisfaction.
Work environment have numerous properties that may influence both
physical and mental wellbeing. A quality work spot is fundamental to keep
workers on their various task and work effectively. A good workplace is
checked by such characteristics as competitive wages, trusting relationship
between the employees and management, equity and fairness for everyone,
and a sensible work load with challenging yet achievable goals. A composite
of all these conditions makes the work station the best possible working
14
conditions for employees to work with high level of satisfaction. As a profit
oriented organization, creating an enabling environment for satisfied
employees is a lead to requisite bottom lines. Work environment can be
grouped into three distinct but intertwined forms. These are Physical work
environment, psychological work environment and social work environment.
Supportive work environments help workers to perform normal duties more
effectively, making best use of their knowledge, skills and competences and
the available resources in order to provide high-quality services.
15
effectiveness, absence, motivation). The psychological work environment is
therefore the set of those characteristics of work environment that affect how
the worker feels. The psychological work environment provides a good
description of the mental activities that a worker undertakes during working
hours or at post. Psychological work environment includes good descriptions
and references to other sources of information on stress, bullying, working
requirements, cooperation and conflict, etc. Stress and well-being are themes
within the psychological work environment. Workers think about the following
but not limited to, the nature of work, wages that will be earned, opportunity
for growth and the like. These factors affect the level of contentment of an
employee and in effect impacts on his or her performance. There is a
significant change in compensation, promotions and benefits, workers
become satisfied and increases productivity.
Social Work Environment
Baah and Amoako (2011) described that the motivational factors (the nature
of work, the sense of achievement from their work, the recognition, the
responsibility that is granted to them, and opportunities for personal growth
and advancement) helps employees to find their worth with respect to value
given to them by organization. Further, this can increase motivational level of
employees which will ultimately raise internal happiness of employees and
that the internal happiness will cause satisfaction. Hygeine factor can only
cause external happiness but they are not powerful enough to convert
dissatisfaction into satisfaction but still its presence is too much important.
According to them the Herzberg Two Factor Theory, both Hygiene and
Motivation factors are linked with each other, as Hygiene factors move
employee from Job dissatisfaction to No Job dissatisfaction, whereas
motivation factors moves employees from no job dissatisfaction to job
satisfaction (Herzberg et al., 1959).
18
Chandrasekar (2011) argue that an organization needs to pay attention to
create a work environment that enhances the ability of employees to become
more productive in order to increase profits for organization. He also argued
that Human to human interactions and relations are playing more dominant
role in the overall job satisfaction rather than money whereas management
skills, time and energy, all are needed for improving the overall performance
of the organization in current era. Based on the above literature, the
conceptual model tested in this paper is presented in figure below. The
independent variable in this research is the working environment in which the
employees are working within an organization and the dependent variable is
the Job satisfaction of employees. Working environment includes the working
hours, job safety, job security, relationship among employees, esteem needs
of employees and the influence of top management on the work of
employees.
Working Environment
Relationship and
communication system Job Satisfaction
Promotion
Training and
development
Safety and security
es dependent Variables
20
non-verbal communication to achieve the expected performance of the
organization.
Rathi (2009) investigated the impact of relationship and communication with
the co-workers on employee’s loyalty. The data from this study collected from
203 employees who are retailers or traders of Procter and Gamble company
at Metro Cash and Carry system. Questionnaires were used to collect data
through phone survey. The study used primary source of data. The results
show that there is only indirect impact of relationship and communication with
the co-workers on employee’s loyalty through employees trust and
employee’s commitment as mediating variables. The study also indicated that
there may not be any moderating effect of gender on the relationship between
relationship and communication with the co-workers and employee’s loyalty.
The study concluded that the direct impact of employees trust on employee’s
loyalty is not discovered in this current study, but indirect effect through
employee’s commitment as a mediating variable is found. Chitrao (2014)
explained that the positive and good communication can increase job
satisfaction and reduce complaints to the employee worked. Communication
is a tool used by any organization to identify appropriate function to obtain
profit organization and progress of the organization is created.
Communication can lead to misunderstandings, lack of information, laziness,
and more job rotation. Ineffectiveness of managers in communicating with its
employees would cause an employee being unsatisfied. Thus, this situation
may cause workers' job satisfaction to be affected. Gupta and Sharma (2011)
investigated the influence of relationship and communication with the co-
workers on employee’s loyalty in insurance company. The sample of this
study was selected by cluster sampling suing Cochran formula and 447
participants were selected. Questionnaire method was used for data
collection. The study used structural equation modeling and analysis of the
overall fit of the model and test hypothesis, SPSS21 and LISREL8.8 statistical
software was used. The relationship between relationship and communication
with the co-workers and job satisfaction in Iran Insurance Company of Fars
province and the increase of relationship and communication with the co-
workers doesn’t lead to increase of job satisfaction. Further, the study
21
revealed that job satisfaction lead to increase employees trust. Past research
also found that workers concentrate fully on the work done in the
dissemination of information on important matters such as company policy,
performance feedback, command tasks, and roles responsible (Pincus,
1986). He suggested that if communication is used effectively and good,
works as above can be implemented successfully the impact of job
satisfaction and used a sample of nurses, there is some support found that
the differential sensitivity to the realization of job satisfaction compared to the
dimensions of information communication, although both have to do with job
satisfaction. Chandrasekar (2011) examined the effect of relationship and
communication with the co-workers on job satisfaction and loyalty. The study
analyzed of data 269 questionnaire was done using Lisrel 8.30. The study
indicated that job satisfaction positively influences employee’s loyalty lending
support to job satisfaction as a factor of predicting employees repeat doing
their job effectively. Moreover, the study demonstrated the mediating effect of
job satisfaction between relationship and communication with the co-workers
and loyalty. The study revealed that relationship and communication with the
co-workers is positively related to affective and behavioral loyalty directly and
indirectly through job satisfaction.
Promotion
Lane et al. (2010) examined the effects of promotion on job satisfaction and
loyalty. The study surveyed total of 586 respondents according to Tata sales
department and Ministry of Commerce and Industry. The study used primary
source of data. The relationship among study variable were tested through
regression and ANOVA model. The study showed that there is high positive
correlation between the constructs of promotion with job satisfaction and
loyalty. Moreover, the study revealed that the quality of working environment
in Tata Motor’s Company promotes job satisfaction, and also there is a
positive relationship between job satisfaction and employee’s loyalty.
Newsham et al. (2009) examined the effects of promotion on employee’s
loyalty in life insurances. The study determined the size of sample data of 371
questionnaires was used as the basis for analysis. The study used primary
source of data. The study examined the effect of promotion on employee
22
loyalty in life insurance. The study showed that promotion has a positive and
significant impact on employee loyalty through perceived trust advantages
and job satisfaction. The study concluded that it is satisfied and loyal
employees who finally lead to organization profitability in long term. Sell and
Bryan (2011) investigated effects of promotion on job satisfaction. The study
survey with 312 qualified observations from financial institutions’ customers in
Taiwan was conducted. The study used structural equation modeling
approach. The study found significant positive linkages between promotion
and the perceived satisfaction and trust by its employees. The study also
found that significant positive correlations between job satisfaction and
commitment, as well as between trust and commitment. Moreover, the result
revealed that it had a positive impact on the job commitment to the
organization.
Suh et al. (2015) assessed the impact of training and development on job
satisfaction. The study surveyed total of 200 surveys was distributed and 180
responses were judged appropriate for the analysis. The study showed that
the importance of training and development as it contributes to enhancing job
satisfaction through perceived service quality employing empirical data. The
study indicated that employees may feel more comfortable asking questions
23
when they are educated. Moreover, the result reveled that training and
development positively affects employees trust.
According to Mel Kleiman (as cited by Jehanzeb and Bashir, 2013), employee
training and development should be utilized to orient individuals and to
enhance their managerial and operational skills. By providing core
proficiencies and structure throughout the employee training and
development process, it increases the probability for individuals to effectively
deliver the mission, while supporting others in creating a learning culture as
part of the organization’s strategic goals. When organizations provide the
24
resources necessary to perform a job, individuals become satisfied with their
jobs and more productive, while the organization becomes more successful.
The health and safety function is directly related to the elements of the HRM
cycle-selection, appraisal, rewards and training. Maintenance of a healthy and
safe workplace can be facilitated in the selection process by selecting
applicants with personality traits that decrease the likelihood of accidents.
Safe work behavior can be encouraged by a reward system that ties bonus
payments to the safety record of a work group or section (Bratton & Gold,
1999).Tariq et al. (2013) assessed the relationship between safety and
security and job satisfaction in Saudi Arabia insurance industry companies.
The study surveyed total 399 from insurance companies in Saudi Arabia and
data was obtained from questionnaires distributed to the sample. The study
founded that the theoretical, practical and policy of the company that may be
integrated together in order to improve job satisfaction. Moreover, the result
revealed employees knowledge has a positive and significant effect on job
satisfaction.Sangeetha (2016) examined the perception of insurance
employees on safety and security. Data were collected from 200 insurance
employees. In order to test hypothesis, the study used Factor Analysis and
Chi-square tests. The study found that the perceptions of insurance
employees on various safety and security aspects. The study also tries to find
out the association between demographic variable and perception on safety
and security. Moreover, it revealed that insurance employees in Puducherry
are almost safe and secure regarding their job.
25
hypotheses it can be concluded that dimensions of safety and security have
positive influences on job satisfaction.
b) Safety needs: When people fulfill their basic needs they think about
future security. Security need includes protection against threat of job
insecurity. Generally, safety can be sub-divided into three types: economic
security, physical security and social security. Economic security involves
assurance about the fulfillment of basic needs on a continuous basis.
Physical security involves protection against unexpected events like fire,
accident etc. social security involves needs for security in old age, diseases
and permanent incapability. The employees having this level needs can be
26
motivated by providing job security, provision of provident fund, insurance
facilities, medical facility, provision of gratuity or pension etc.
c) Social needs: Human beings are social animals and they always want
to live in society. They want to enjoy social elements such as love, affection,
friendship, sense of belonging, acceptance and membership. When
management does not fulfill affiliation needs, employee dissatisfaction
appears regularly in different forms like frequent absenteeism, low
productivity, stress related behavior and emotional breakdowns. The
employees having this level of needs can be motivated by developing good
working environment. Management has to develop the feeling of
belongingness, team spirit, promotion, authority on the basis of efficiency etc.
27
Two Factor Theory/ Hygiene Theory
• Recognition
• Advancement
• Work itself
• Personal growth
• Responsibility
Herzberg came to the conclusion that enriched jobs are key to motivating
employees. An employee is motivated to devote his best effort only when he
28
finds a challenging job, scope of innovation, freedom, growth and recognition
of his efforts and achievement from the management.
According to Herzberg, satisfaction is affected by motivators and
dissatisfaction by hygiene factors. It should be noted that one’s hygiene
factors may be motivating factors for another. Therefore, a manager needs to
identify the behavior of subordinates to inspires them to get things done. He
needs to know worker’s psychology and treat them accordingly.
Clayton Alderfers ERG Theory
29
N.Pow, and the need for affiliation, N.Aff. These need levels would vary from
individual to individual and again from society to society. It was inconceivable
to think that each individual would have the same levels of all three needs,
which would vary with his background, society, culture and education.
McClelland’s theory came to be known as the three need theory and is also
referred to as the learned needs theory as it stipulates that most of these
needs are shaped over time and depend upon the experiences of the
particular individual. The results at the workplace depend upon a proper
matching of job requirements and put in a person with high achievement
needs in a slot ideal for a person with high affiliation needs. This will result in
a mismatch and possible underperformance of the persons of high calinre.
People with high affiliation needs, for example, will be ideally suited in
cooperative and people’s environment and tend to do very well in customer
service and public relations.
Vroom’s Valence Expectancy Theory
The most widely accepted explanation of motivation has been propounded by
Victor Vroom. His theory is commonly known as expectancy theory. The
theory argues that the strength of a tendency to act in a specific way depends
on the strength of an expectation that the act will be followed by a given
outcome and on the attractiveness of that outcome to the individual. To make
this simple, expectancy theory says that an employee can be motivated to
perform better when there is a belief that the better performance will lead to
good performance appraisal and that this shall result into realization of
personal goal in the form of some reward. For example,
Motivation = Valence x Expectancy The theory focuses on three things:
• Efforts and performance relationship
• Performance and reward relationship
• Rewards and personal goal relationship
The Equity Theory
In the Equity theory Adams argues that people are motivated by inequity and
keep on comparing their efforts with that put in by others around them in the
workplace as also the rewards being meted out to them. Equity is likened to a
perception of fairness involved between efforts and rewards given to co-
30
workers in the work place. A fair situation where all employees are treated
with equality obviously envisages similar outcomes for similar inputs and
some employees feel that others are being given higher rewards for similar
work. They will obviously hold back some of their efforts. In case an employee
putting in hard work happens to see an inefficient and unproductive colleague
being rewarded with the same salary may probably feel demotivated to be
placed on par with him in the same level of work continuously. Motivation is
thus very difficult without the establishment of fairness in the appraisal and
reward process.
Goal Setting Theory of Edwin Locke
Instead of giving vague tasks to people, specific and pronounced objectives
help in achieving them faster. A goal orientation also avoids any
misunderstandings in the work of the employees. The goal setting theory
states that when the goals to be achieved are set at a higher standard, the
employees are motivated to perform better and put in maximum effort. It
revolves around the concept of ‘self – efficiency’ that is individual’s belief that
he or she is capable of performing a hard task.
Porter and Lawler Model
Lyman W.Porter and Edward E. Lawler developed a more complete version
of motivation depending upon expectancy theory. It relates to perception,
effort reward and satisfaction. An employee’s individual effort is dependent on
the value of expected reward and the perception of the effort involved in
performing and obtaining the reward. Thus performance is the result of effort,
a person’s abilities and an accurate role of perception. The performance or
accomplishment will provide other intrinsic and extrinsic reward. The
employees compare the perceived equitable reward with the reward actually
received. This will result in employee’s satisfaction or dissatisfaction. If the
difference between the perceived equitable reward and the actual reward is
less, the satisfaction is high. A failure to receive the perceived equitable
reward will create a feeling of dissatisfaction.
2.2 Review of Research Articles
Ting Yuan (1997) in his article entitled, “Determinants of job satisfaction on
Federal Governments employees”, analyzed various job characteristics
31
affecting job satisfaction of employees. The findings of the study revealed
that job characteristics such as pay satisfaction, promotional opportunity, task
clarity and significance and skill utilization had been consistently significant in
the job satisfaction of Federal Government employees.
A.K. Prasad12(1965) in the article titled, “A study of personality and some
personal factors in job satisfaction” has made an in-depth analysis to find out
the extent to which extroversion-introversion, one of the dimensions of
personality, is related to job satisfaction. The findings of the study revealed
that personality and personal factors are significantly related to job
satisfaction. D. Sinha and R.R. Nair (1965) in their article entitled, “A Study of
Job Satisfaction in Factory Workers” have analyzed their job satisfaction.
They concluded that the satisfied workers are usually more skilled, or either
fresh to the organization or has put in many years in it and has a few
dependents to support. The results of the present study revealed that the
employees of a large machinery manufacturing plant in south India. R.
Centers and D.F. Bugental14 (1966) in their article titled, “Intrinsic and
Extrinsic Job Motivations among different Segments of Working Population”
have focused on the intrinsic and extrinsic factors that could be interviewed
across section sample of 692 workers to study the importance of intrinsic and
extrinsic job characteristics in determining job satisfaction. The higher
occupational level employees assigned more value to the intrinsic aspects as
interesting work, self-expression are the major determinants of job
satisfaction. The lower level workers mentioned pay, security and co-workers
as the extrinsic factors determining job satisfaction. Interestingly, sex
differences were of little importance. Women workers tended to value good
co-workers slightly higher than the other workers, while it is an opportunity to
use talent and skill. It was considered as more important by the male workers
Many businesses fail to understand the importance of working environment
for employee job satisfaction and thus face a lot of difficulties during their
work. Such organizations are internally weak therefore unable to introduce
innovative products into the market to outshine their competitors (Aiken,
Clarke, & Sloane, 2002). Employee is an essential component in the process
of achieving the mission and vision of a business. Employees should meet
32
the performance criteria set by the organization to ensure the quality of their
work. To meet the standards of organization, employees need a working
environment that allows them to work freely without problems that may
restrain them from performing up to the level of their full potential. The
objective of this research paper is to analyze the impact of working
environment on employee job satisfaction.
The importance of work environment in job satisfaction cannot be
underestimated. Why do some feel good with their job schedules and
accomplish better than other? An attractive and supportive work environment
is critical to job satisfaction. Work environment have numerous properties that
may influence both physical and mental well beings. A quality work spot is
fundamental to keep workers on their various task and work effectively. The
employees who are satisfied with their working environment are more likely to
continue with their organization. It is very difficult for the supervisor to close
the eyes to the problem of job satisfaction at a time when the demand of
important work is increasing.
Jobs with difficult working conditions may perform only those employees who
meet specific requirements in terms of age, sex, qualifications, health,
physical and mental condition and psycho-physiological and psychological
capabilities. Difficult working conditions influence employees’ performances.
It is therefore necessary to take measures to eliminate uncomfortable working
conditions or, if not possible, to take appropriate safety measures. Safety at
work is carried out to ensure working conditions without danger to life or
health, or, to avoid accidents, injuries, occupational diseases and, or at least
mitigate their consequences.
In the context of safety at work it should be talking about equipment that
employees use in their daily work. Equipment (machinery, equipment, plant,
tools, supplies, laboratory equipment, etc.) that employees use in their work
has to be functional and correctly to avoid injuries at work or reduced
performances. It is important that workers are trained how to work with the
equipment because inadequate equipment handling can result in accidents or
deviations in performance no matter how much equipment was proper.
33
Training of employees should be also oriented to the proper use of protective
equipment and personal protection (Buble, 2006).
Different factors within the working environment such as wages, working
hours, autonomy given to employees, organizational structure and
communication between employees & management may affect job
satisfaction (Lane, Esser, Holte, & Anne, 2010). Arnetz (1999) argue that in
organizations, can be observed that mostly employees have problems with
their supervisor who is not giving them the respect they deserve. Supervisors
also show harsh behaviors to employees due to which they are not
comfortable to share good and innovative ideas with their sense of
responsibility in employees by making them work in teams to attain high
performance.
Petterson (1998) argues that the interaction between employees within a
business is crucial for accomplishing the organizational goals. Further he
describes that the communication of information must be properly done in a
timely manner. The job satisfaction is one of the key variables that affect
organizational success, and it is necessary to pay a close attention to it in
order to avoid negative impacts on organizational performance. Job
satisfaction is influenced by various factors such as the nature of work, salary,
stress, working conditions, colleagues, superiors, working hours etc. Given
that this paper focuses on the research of the impact of working conditions on
job satisfaction, so in the below the particular attention will be given to this
factor.
Kaczmarczyk, Stan & Murtough, Judi. (2002). Measuring the performance of
innovative workplaces. Journal. The workplace concept represents the
convergence of three disciplines: Facilities management, information
technology and human resources. Concepts such as knowledge work and
human capital drive the shift in professional focus from ‘place’ to ‘workplace’.
The responsibilities of facility managers extend beyond operating issues to
the more fundamental goals of providing highperforming and sustainable
workplaces. Accordingly, the performance measurement paradigm must also
be shifted from measuring facilities to measuring workplaces, using models
and measures that recognise the importance and interdependence of
34
facilities, information technology and human resources. This paper discusses
initial efforts to measure innovative workplaces, provides an example of an
organisation committed to providing its customers with innovative workplaces,
and concludes that the measurement of innovative workplaces itself requires
innovative and ‘out of the box’ techniques. New measurement paradigms are
critical, however, not for ‘proving’ the case for the implementation of these
innovative workspace solutions, but for evaluating and comparing evolving
workplace approaches already under way.
Bakotić, Danica & Babić, Tomislav. (2013). Relationship between working
conditions and job satisfaction: The case of Croatian shipbuilding company.
International Journal of Business and Social Science. 4. 206-213. Job
satisfaction is a complex concept that is influenced by many factors. The aim
of this paper is to analyze the impact of working conditions to job satisfaction.
For that purpose, the empirical research has been conducted in 2012 in one
Croatian shipbuilding company. The research results show that there is no
statistically significant difference in overall job satisfaction between workers
who work under difficult working conditions (at the facility) and those who
work in normal working conditions (in the administration); workers who work
in normal working conditions are more satisfied with working conditions than
workers who work under difficult working conditions; in the case of workers
who work under difficult working conditions, the working conditions are
important factor of their overall job satisfaction.
Raziq, Abdul & maula-bakhsh, Raheela. (2014). The Impact of Working
Environment on Job Satisfaction. In the modern era, organizations are facing
several challenges due to the dynamic nature of the environment. One of the
many challenges for a business is to satisfy its employees in order to cope up
with the ever changing and evolving environment and to achieve success and
remain in competition. In order to increase efficiency, effectiveness,
productivity and job commitment of employees, the business must satisfy the
needs of its employees by providing good working conditions. The objective
of this paper is to analyses the impact of working environment on employee
job satisfaction. The study employed a quantitative methodology. Data was
collected through a self-administered survey questionnaire. The questionnaire
35
is adopted from a previous validated survey. The target population consists of
educational institutes, banking sector and telecommunication industry
operating in the city of Quetta, Pakistan. Simple random sampling is used for
collection of data from 210 employees. The results indicates a positive
relationship between working environment and employee job satisfaction. The
study concludes with some brief prospects that the businesses need to
realize the importance of good working environment for maximizing the level
of job satisfaction. This paper may benefit society by encouraging people to
contribute more to their jobs and may help them in their personal growth and
development. Hence, it is essential for an organization to motivate their
employees to work hard for achieving the organizational goals and objectives.
Jayaweera, Thushel. (2015). Impact of Work Environmental Factors on Job
Performance. The study tested the relationship between work environmental
factors and job performance with work motivation and the extent to which this
relationship is mediated by work motivation among a sample of hotel workers
in England. In this cross-sectional study, a questionnaire survey was
conducted among 254 hotel workers at twenty-five chain hotels in Bristol,
England. The results suggest that there is a significant relationship between
work environmental factors and job performance and that work motivation
mediates the relationship between working conditions and job performance.
The results also suggest that there is a significant relationship between work
motivation and job performance of the hotel workers. The results point to the
importance of working conditions and work motivation in explaining job
performance of hotel workers in the framework of work environmental
conditions and job performance. The limitations and implications and the
study are also discussed.
37
Saifuddin Khan Saif et el.found that job satisfaction (involvement &
commitment) as well as job dissatisfaction (absenteeism & turnover) is mostly
founded on the ‘Factors of satisfaction attitude like work, pay, promotion, co-
workers, supervision and environment. They also used the data on the factors
for regression on the employee attitudes of both positive and negative
consequences. A sample of 218 university teachers from the province of
Khyber Pakhtunkhwa Pakistan was used to record their satisfaction from
different factors of satisfaction.
38
Chapter III
Research methodology
Research methodology is the systematic, theoretical analysis of the methods
applied to a field of study. It comprises the theoretical analysis of the body of
methods and principles associated with a branch of knowledge. It is a
systematic way to solve a problem. It is an art and science of studying how
research is to be carried out. It includes research strategy, the research
method, the research approach, the methods of data collection, the selection
of the sample, the research process, the type of data analysis, the ethical
considerations and the research limitations of the project. Basically, the
procedures by which researchers go through their work of explaining,
clarifying and predicting phenomena are called research methodology. Before
presenting the analysis and interpretation of data, it is necessary that study
methodology be described first. In the absence of methodology, it is likely that
the conclusions drawn may be misunderstood.
In this chapter, the context of the study is presented, which provides the
background against which the findings of the study were assessed from which
reliability and dependable conclusions were made. Thus, this chapter explains
the methodology that is employed in this study which is divided into seven
sections. Section one provides a description of study plan and design, section
two describes the population and sample along with the selection of
enterprises, sections three deals with nature and sources of data, section four
describes the method and tools of data analysis, section five describes time
frame and empirical models for the study, section six describes the procedure
of analyzing the data in order to understand results and generalize the
findings and finally, section seven presents limitations of the study.
n = N/1+N(e)2
where,
n= sample size
40
N = Total population of 27
commercial banks i.e. 32440 as of mid-Jan
2019
e = Margin of error (e.g. 5%)
n=32440/1+32440(0.05) ^2=395
Since the study is to access the situation of employees in Nepalese
commercial banks and to analyze the factor affecting the employees job
satisfaction in Nepalese commercial banks. Three banks Nepal Bank Ltd,
Sanima bank and Everest Bank Ltd are selected as sample to make it more
representative. 395 questionnaires were supplied to the sample units to
obtain sample statistics to come up with the conclusion of this study.
Convenience sampling was used to select individual respondent.
1-strongly disagree
2- disagree
3- neutral
4- agree
5- strongly agree
42
i) Mathematical/Statistical Tools
43
Finally, multiple regression analysis will be performed to test four
hypotheses. The relationship between independent variable and dependent
variables will be tested through general regression.
Reliability test shows that whether the variables are reliable or not. For the
variables to be reliable, Cronbach’s Alpha should be more or equal to 0.7. If
Cronbach’s Alpha is less than 0.7, that means the variable used for the study
were not reliable.In order to understand whether the question in this
questionnaire all reliably measure the variables under study a Cronbach’s
Alpha(α) was run on a sample of 395 items.
44
Reliability Statistics
Cronbach's Alpha N of Items
.956 11
Table 3.5.1.1 shows that the reliability of job satisfaction. Here, value of
Cronbach's Alpha for job satisfaction is 0.956 which is more than 0.7 and it
indicates that the variable is reliable.
.868 4
Table
3.5.1.2 shows that the reliability of Relationship and communication. Here,
value of Cronbach's Alpha for Relationship and communication is 0.868
which is more than 0.7 and it indicates that the variable is reliable.
(i) Promotion
Reliability Statistics
Cronbach's Alpha N of Items
.870 4
45
Table 3.5.1.3 shows that the reliability of Promotion. Here, value of
Cronbach's Alpha for Promotion is 0.870 which is more than 0.7 and it
indicates that the variable is reliable.
Reliability Statistics
.894 4
Table 3.5.1.4 shows that the reliability of Training and Development. Here,
value of Cronbach's Alpha for Training and Development is 0.894 which is
more than 0.7 and it indicates that the variable is reliable.
Reliability Statistics
Cronbach's Alpha N of Items
.803 6
46
Table 3.5.1.5 shows that the reliability of Safety and Security. Here, value of
Cronbach's Alpha for Safety and Security is 0.803 which is more than 0.7 and
it indicates that the variable is reliable.
Statistical analysis is important part of the study under which the data are
presented and the analyzed in useful format. Data were processed and due
consideration was taken that those data were accurate and consistent with
the intent information obtained. To assess the situation of employees in
Nepalese commercial banks and to analyze the factors affecting employees
job satisfaction, various statistical tools are used. Statistical tools were used
primarily for two purpose: to see the distribution and tendency of the data
collected through questionnaire and to test the hypothesis set to achieve the
objective of the study. To see the distribution and tendency of the data,
several graphical tools like tables, charts and diagrams were used.
Particularly, the descriptive study part used graphs, tables, pie charts, mean,
standard deviat and percentage distribution for presentation and analysis.
And, the hypothesis testing part included tables, mean, standard deviation,
Pearson’s correlations and linear regression.
Mean or Average
An average line which represents group of values. In other words, the
quantities which are the representative of the huge mass of quantities are
47
known as average. The most popular mean is arithmetic mean or average,
which is calculating the sum of all variables divided by the number of
variables. The mean is the arithmetic average of a variable.
Standard Deviation
Standard deviation (S.D.) is the most popular and the most useful measure
of dispersion. It indicates the ranges and size of deviance from the middle or
mean. It measures the absolute dispersion. Higher the values of standard
deviation higher the variability and vice versa. It is the positive square root of
average sum of squares of deviations of observations from the arithmetic
mean of the distribution.
3.6.1.2. Hypotheses
The study test following hypotheses to meet the research
objectives:
48
strong relationship between two variables. This means that change in one
variable are strongly correlated with change in second variable. When
correlation(r) is close to zero then there is weak relationship between two
variables.
Regression analysis
A technique for determining the statistical relationship between two or more
variables where a change in a dependent variable is associated with, and
depends on, a change in one or more independent variables. Multiple
regression is a statistical tool used to derive the value of a criterion from
several other independent, or predictor, variables. It is the simultaneous
combination of multiple factors to assess how and to what extent they affect a
certain outcome. It can be used to forecast effects or impacts of changes.
The multiple linear regression analysis can be used to get point
estimates.
49
Chapter IV
Research Findings
The purpose of this chapter is to analyze and interpret the data collected
during the study and present the result of the questionnaire survey. The main
objective of this research study will be fulfilled with the outcomes derived from
the analysis of the data. This chapter also covers the test of hypothesizes
which have been set in the chapter three. Each hypothesis is tested and
analyzed individually and also taking into account the background and
demographic of the respondents.
This section is further sub-divided into three sub-section. The first part deals
with the respondent’s profiles. The second section determines and analyzes
the collected data through correlation and regression of dependent and
independent variables. This section is test of hypotheses already set in
previous chapter. And, the final part is the discussion of the result obtained
through analysis.
50
Table 4.1.1.1: Gender of the respondents
200 50.63%
Male
195 49.36%
Female
395 100%
Total
41-50 84 21.3%
51-60 50 12.7%
51
4.1.3 Marital status of the respondents
This portion of the respondent’s profile describes the distribution of the
respondents based on the marital status. The fact relating to distribution of
respondents based on their marital status shown in Table 4.1.3.1
Table 4.1.3.1.: Marital status of the respondents
Single 65 16.5%
The given table 4.1.3.1. shows that out of 395 responses collected, 65 or
16.5% were single people and 330 or 83.5% were married. The statistics
distribution of respondents present that married people are higher than
single people.
48 12.2%
Under Graduates
155 39.2%
Graduate
192 48.6%
Post Graduates
41 10.4%
10001-20000
81 20.5%
20001-30000
273 69.1%
Above 30000
53
basis for assessing situation of employees in Nepalese commercial banks
and to decide whether they are satisfied.
54
satisfactory. 5
Q2 Flexibility in overtime 39 3.91 .552 1 5
work. 5
Q3 Physical working 39 3.94 .463 1 5
environment is better. 5
Q4 Adequate facilities 39 3.97 .471 1 5
available to do my 5
work well.
Q5 Satisfactory holiday 39 3.98 .518 1 5
facilities available in 5
the industry.
Q6 I am proud to work for 39 3.90 .458 1 4
our company. 5
Q7 Our company is 39 3.967 .463 1 5
concernment with the 5
long welfare of the
employee.
Q8 Employees feel 39 3.962 .462 1 5
comfortable talking 5
about personal issues
with other employees
and management.
Q9 The amount of work I 39 4.02 .532 1 5
am expected to do my 5
job is reasonable for
me and to the
company.
Q10 I am fully able to utilize 39 4.00 .535 1 5
my skills, abilities 5
and experience
in my present position.
Aforementioned table 4.2.2 shows that the mean value of relationship and
communication system from 3.92 to 4.02 where the highest mean is shown by
Q13 whereas lowest mean is shown by Q12. Among them most significant
observation on relationship and communication system is ‘Relationship with
subordinates is harmonious.’ The least significant observation is ‘We get
enough personal work space to work. ’ Additionally, the table shows that Q14
has the highest standard deviation of 0.59 whereas Q12 has the lowest
standard deviation of 0.46. This means respondents have more deviation with
the statement “There is sound communication system in the organization” i.e.
the values in the data set are further away from the mean, on average.
56
Q16 My 395 3.99 .47 1 5
organization
provides
opportunities
for career
advancement.
Q17 promotion 395 3.97 .49 1 5
policy is fair
Aforementioned table 4.2.3 shows that the mean value of quality of work life
from 3.99 to 3.89 where the highest mean is shown by Q16 whereas lowest
mean is shown by Q19. Among them most significant observation on
promotion is ‘My organization provides opportunity for career advancement.’
The least significant observation is ‘Promotion exercise is held frequently.’
Additionally, the table shows that Q19 has the highest standard deviation
of .53 whereas Q16 has the lowest standard deviation of 0.47. This means
respondents have more deviation with the statement “Promotion exercise is
held frequently” i.e. the values in the data set are further away from the mean,
on average.
57
Q20 Necessary 395 3.91 .54 1 5
development
programs are
usually
provided for
updating as
well as
learning new
skills in this
bank.
Q21 I am satisfied 395 3.97 .544 1 5
with the
training and
career
development
programs
provided by
the bank.
Q22 Training helps 395 3.94 .51 1 5
to improve
motivation
level of
employees.
Q23 Developmenta 395 3.97 .59 1 5
l activity helps
the
management
in identifying,
analyzing
forecasting
and planning
changes.
Training and Development 3.9551 .48030
Source: Field Survey, 2021
Aforementioned table 4.2.4 shows that the mean value of training and
development from 3.91 to 3.97 where the highest mean is shown by Q21
whereas lowest mean is shown by Q20. Among them most significant
observation on training and development is ‘I am satisfied with the training
and career development programs provided by the bank’ The least
significant observation is ‘Necessary development programs are usually
provided for updating as well as learning new skills in this bank’ .
58
Table 4.2.5 Safety and security
Questionnaire Statements N Mean SD Min Max
Aforementioned table 4.2.5 shows that the mean value of safety and security
from 3.93 to 4.32 where the highest mean is shown by Q25 whereas lowest
mean is shown by Q24. Among them most significant observation on safety
and security is ‘Supply of safety devices is provided in your
59
corporation’. The least significant observation is ‘Safety education and
training provided by your corporation’ Additionally, the table shows that Q25
has the highest standard deviation of 4.04 whereas Q27 has the lowest
standard deviation of 0.43. This means respondents have more deviation
with the statement “Supply of safety devices is provided in your
corporation” i.e. the values in the data set are further away from the mean,
on average.
Table 4.2.6 Descriptive Statistics of Independent Variables
Descriptive Statistics
Variables N Mean Std. Deviation
Correlations
62
RC P TD S JS
63
Showing the above table 4.3.1.1 the Pearson Correlation coefficient between
job satisfaction and safety and security of Nepalese commercial banks is
0.496**. This implies that the two variables are highly positively correlated.
The positive coefficient of correlation is 0.496 ** at 1% significant level.
From the table 4.3.1.1 it is observed that aspect of work environment i.e. (1)
Relation and Communication (2) Promotion (3) Training and development (4)
Safety and security is positively correlated with the job satisfaction of
employees. It means that job satisfaction of employees in Nepalese
commercial banks is affected by relationship and communication system,
promotion, training and development and safety and security.
Table 4.3.1.2: Summary of correlation and hypothesis testing
Hypothesized
relationship Estimate
Conclusion
R P
H3:C→Training and
0.818** 0.01 Accepted
development
From the above analysis, it can be concluded that the independent variables
relationship, promotion, training and development, and safety of work
environment have significant positive relationship with employee job
satisfaction. However, promotion aspect of work environment has higher
correlation coefficient i.e. 0.823. So, it can be concluded that this dimension
of work environment has a good impact on job satisfaction.
64
between two variables or more variable in terms of original unit of data. The
general purpose of multiple regression is to learn more about the relationship
between several independent or predictor variables and a dependent or
criterion variable. In this study, the dependent variable is job satisfaction and
independent variable are relationship and communication, promotion, training
and development and safety and security.
66
Based on ANOVA, the p-value is 0.000 which is lesser than alpha value.
Therefore, the model is a good predictor of the relationship between the
dependent and independent variables. As a result, the independent variables
relationship and communication, promotion, training and development, safety
and security aspect of working condition in Nepalese commercial banks are
significant in explaining the variable in employee job satisfaction .
67
safety and security of Nepalese commercial banks have significant result
since their respective p-values are less than level of significant (P<0.01).
4.4 Major findings of the study
The major finding of this research is to find out the impact of working
environment on job satisfaction of employees in Nepalese commercial
banks. The research is entirely focused on different aspect that is required
for the conducive work environment in Nepalese commercial banks through
employee job satisfaction prospective. The research has been done with the
sample size of 395 representing the population size. The research is based
on both the descriptive analysis and inferential analysis or hypotheses
testing.
68
6. Out of four items defining working environment in Nepalese
commercial banks employees are considering relationship and
communication, promotion, training and development and safety and
security.
7. The safety and security aspect of working condition has high average
followed by training and development in comparison to other
variables. This shows the employee feel secured to their job and they
are satisfied with training and development system of their
organization.
8. Correlations between four independent variables are found to be
positive. It shows that all variables have significant relationship
between job satisfactions. However, training and development has
major effect on job satisfaction.
9. There is significant positive impact between relationship and
communication, promotion, training and development and safety and
security aspect of working environment and job satisfaction as per
regression analysis.
10. As all the hypothesis are accepted all the independent variables have
greater role to increase employees job satisfaction.
4.5 Discussion
The results of the study have shown a positive relationship between working
environment and job satisfaction. The employees working in commercial
banks have agreed that working environment plays a vital role in attaining job
satisfaction. As the competition has increased and business environment is
dynamic and challenging, so different organizations in order to operate up to
their maximum potential, have to ensure that their employees are working in a
conducive and friendly environment. Employees are becoming concerned
about the working environment which includes relationship and
communication, promotion, training and development and safety and security
as mentioned in this study. For the job satisfaction of employee needs to be
considered all this aspects of work environment. And also the study show the
higher degree of relationship of all the independent variables such as
relationship and communication, promotion, training and development and
69
safety and security it is most important in these days and must be consider to
enhance the level of employee job satisfaction in organization. The regression
analysis result showed that working environment has positive impact on job
satisfaction as R2 =74.9% therefore organizations must pay attention towards
this element of the job. The results are supported by Lee and Brand (2005) as
their study also had shown that job satisfaction is increased by conducive
working environment. Whereas the results of this study contradicted with the
study results of Tokuda et al. (2009) and Rafiq et al. (2012) that working
environment is negatively associated with employees’ job satisfaction
whereas extrinsic rewards are the best motivator to cause job satisfaction. As
Kinzl et al. (2005) concluded that job satisfaction has positive relationship with
opportunities provided to employees by the organization.
70
CHAPTER V
CONCLUSION
In the previous chapters, the data analysis has been done according to the
objective of the study. This chapter gives a brief overview of findings and
conclusion of the study. It also draws the inferences from the findings which
lead to make the generalization. Based on the study, some recommendations
and suggestions for the further study has been mentioned. There are three
section in this chapter consisting summary of the findings in first section,
conclusion of the study in second section and suggestions for further study in
third section.
5.1 Summary
This study has been conducted in order to find the level of employee
satisfaction in accordance to the work environment prevailing in the Nepalese
commercial banks. Based on the literature review, several aspect of work
environment has been recognized. So, the researcher recognized some of
the relevant variables such as relationship and communication, promotion,
training and development and safety and security must be considered to
develop conducive work environment in the organization. The study is based
on the sample size of 395 where the responses were collected in physical
form. Regarding the demographic profile, out of total respondents of 395,
there are 195 females and 200 males comprising the percentage of 49.36%
and 50.63% respectively. Similarly, out of 395 respondents, large number of
respondents belong to age group below 30 years constituting 35.4% of the
total respondents. In addition to this, 30.6% respondents belong to age group
31-40 years, 21.3% respondents are aged 41-50 years and 12.7%
respondents are of age group 51-60 years. The data shows that below 30
aged people are maximum involved in banking sector followed by middle
aged people. There is more involvement of youth in banking sector in
comparison to other aged people.
71
Also, 83.5% of respondents were married and 16.5% of respondents were
single. Similarly, out of 395 respondents 12.2% of the respondents were
under graduates, 39.2% of the respondents were graduates and 48.6% of
respondents were post graduates. Out of total respondents 10.4% of
respondents are earning 10,001-20,000 rupees per month, 20.5% of
respondents are earning 20,001-30,000 rupees per month and 69.1% of
respondents are earning above 30,000 rupees per month.
In case of analysis within the factor, 29 items were used to understand the
variables. With corresponding items under each variable and tested using
Likert scale of measurement, the mean identifies the range of agreement
level. This agreement level illustrates the working level of employee
satisfaction in Nepalese commercial banks. Out of this variables, it can be
summarized that employees agree that they are satisfied with all the working
environment.
Table 5.1 Summary of hypothesis test
S.N. Alternative Hypothesis Decision
Accepted
4 There is significant relationship between
safety and security and satisfaction
72
All the independent variable, as relationship and communication, promotion,
training and development and safety and security has positive correlation with
employee job satisfaction. Multiple regression analysis shows as relationship
and communication, promotion, training and development and safety and
security aspects of working environment are significant and significantly effect
on job satisfaction with 51% result and remaining 49% is with other variables.
It is due to the impact of other variables which is not considered in this
analysis.
5.2 Conclusion
Working environment has a positive impact on the Job satisfaction of
employees. Bad working conditions restrict employees to portray their
capabilities and attain full potential, so it is imperative that the businesses
realize the importance of good working environment. This research paper
contributes towards the welfare of society as the results create awareness
about the importance of good working environment for employee job
satisfaction. The study impacts upon the future performance of businesses
by taking working environment more seriously within their organizations to
increase the motivation and commitment level of their employees. This way
their work force can achieve better results. It also ensures that the
employees of the organization will have the ease of working in a relaxed and
free environment without burden or pressure that would cause their
performance to decline.
The progress that will be achieved in the business will directly help the
economy of a country as developmental efforts will increase. In such
conditions, the country will be able to handle the minor problems prevailing as
it will be in a strong state to deal with them. The benefits of providing a good
working environment to the employees are tremendous for both the
organization and its employees. During the research certain limitations were
there, such as the availability of time to conduct research for obtaining the
required data. Time was one of the limitations faced which has restricted us to
add more information about the importance of this topic. Another limitation
was the access to data that was to be collected from various organizations.
73
The information gathered was difficult to acquire since the employees of
some organizations were hesitant to share their true opinions.
The research took special care of the ethical aspect related to the research by
ensuring the respondents that their responses will be anonymous and
confidential to which no one will have access. The issue has not been
considered previously therefore, now firms have an opportunity to utilize the
information from this research paper to design their future line of action that
can help them ensure their long-term success. Such working environments
where employees are made a part of the overall decision making process,
being given flexible working hours, less work load, a team work approach and
a supportive top management have positive impact on the performance of
employees. This leads to high level of employee job satisfaction thus making
the employees more committed towards their business, more motivated to
work hard and more inclined to get high productivity for their firms benefiting
their respective businesses in the long run.
5.3 Implications
6 In an attempt to analyze the different variables and its impact on job
satisfaction of employees in Nepalese commercial banks, this study has
been able to show what kind of working environment influence the job
satisfaction of employees. Thus, based on the results and findings
obtained from this study, following sets of the recommendations are
offered:
7 From the study, it was found that relationship and communication aspect
of working environment and job satisfaction have positive relationship
and relationship aspect of working environment needs to be considered
to increase job satisfaction of employees. So the organization can have
good working environment to achieve desire objective.
8 From the study, it was found that promotion aspect of working
environment needs to be considered to create effective work environment
in Nepalese commercial banks to increase job satisfaction of employees
as promotion aspect of work environment and job satisfaction have
positive relationship. The employers are suggested to develop attitude to
appreciate their employee in order to create high performance culture.
74
9 From the study, it was found that training and development aspect of
working environment requires to be considered to make conducive
working environment in Nepalese commercial banks to improve level of
job satisfaction of employees as training and development and job
satisfaction have positive relationship. The organizations are suggested
to develop holistic program to ensure conducive working environment.
10 From the study, it was found that safety and security aspect of working
environment needs to be considered to make safe working environment
as safety and security and job satisfaction have positive relationship. So,
the organizations are suggested to make their employee fell secured and
safe to their job.
11 For the employee job satisfaction needs to be considered like relationship
and communication, promotion, training and development and safety and
security. And the study shows the strong relationship between these
variables to the employee job satisfaction, it is most important in these
days and must be considered to improve the level of employee
satisfaction.
5.4. Recommendation
1. This study was conducted using a sample from only three banks located
in Kathmandu valley which cannot be generalized for commercial banks
all over the Nepal. A recommendation for future research is to use a
sample comprised of other commercial banks around Nepal, or cover
larger area and sample of participants from Kathmandu valley.
2. This study primarily touched upon four aspects of working environment
which influences on job satisfaction of employee. However, it would be
more interesting to see further research, not only in Kathmandu valley but
also other major commercial banks with other aspects of working
condition.
3. Employee job satisfaction can contribute to the community
closely by satisfying the needs of the customer.
75
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APPENDIX
Survey Questionnaire
Dear Respondents,
I would also like to assure you that all information contained in this questionnaire will
be kept confidential and used only at the aggregate level for research purpose. Your
kind cooperation will be highly appreciated.
Thanking you
Rachana Bhandari
Please tick ( ) according to the answers in the boxes that best represents you.
Gender: -
1. Male (……) 2.Female (…..)
Marital Status: -
81
1. Single (……) 2. Married (……)
Age Group: -
1. below 30 (…....) 2. 31-40(…..) 3. 41-50 (….…..) 4. 51-60 (………)
Income level: -
1. 10001-20000 (…..) 2. 20001-30000 (…..) 3. Above 30000 (…..)
Education Level: -
1. under graduate (….) 2. graduate (….) 3. Post graduate (….)
Section B: dependent variable
82
Job satisfaction
Statements Strongly disagree neutral agre Strongly
disagree e agree
Working hour is satisfactory.
83
Relationship and communication system
Promotion
84
bank.
I am satisfied with the training
and career development
programs provided by the
bank.
Training helps to improve
motivation level of
employees.
Developmental activity helps
the management in
identifying, analyzing
forecasting and planning
changes.
85