Influence of organizational climate on the employees’

performance in Nepalese commercial banks

Project work

Submitted by:

Archana Mishra

Exam Roll No: 21450242

P.U. Registration No: 2021-2-45-0098

A Project Report Submitted to

Uniglobe College

(Pokhara University Affiliated)

Submitted for the degree of

Bachelor of Business Administration (BBA)

Kathmandu, Nepal

January

1
 Acknowledgements

The study entitled “Influence of organizational climate on the employees’ job satisfaction
in Nepalese commercial banks” has been conducted to satisfy the partial requirement for
the degree of Bachelors of Business Administration, Pokhara University. First and foremost,
I would like to express my deepest appreciation to Miss. Puja Sah Research Assistants of
Uniglobe College, for their valuable suggestions, inspirations and guidance to complete this
research work successful. Similarly, I offer my sincerest gratitude to Academic Director of
Uniglobe College, Prof. Dr. Radhe Shyam Pradhan for his valuable supervision and
guidance in completing this study. I am ineffably indebted and very thankful for his
continuous support and constructive suggestion that have enabled this research project to
achieve its present form. Furthermore, I would also like to thank Uniglobe College for
providing the resources for research work and providing library and computing support
without which knowledge and assistance of this study would have not been successful.

At last, I would also like to thank my parents, family, relatives, friends and all those who
helped me during the research work. However, I accept the sole responsibility for any errors
and discrepancies that might have occurred in this report.

Archana Mishra

January, 2024

2
 Certification of authorship

I hereby declare that this study entitled “Influence of organizational climate on the
employees’ job satisfaction in Nepalese commercial banks” is my own work and that, to the
best of my knowledge and belief, it contains no material previously published or written by
another person nor material which to a substantial extent has been accepted for the award of any
other degree of a university or other institution of higher learning, except where due
acknowledgement is made in the acknowledgements.

……………………………

Archana Mishra

January, 2024

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 Table of Contents
Acknowledgements..................................................................................................................2
Certificate of authorship.......................................................................................................... 3
List of Tables.............................................................................................................................6
List of Figures........................................................................................................................... 7
Executive Summary..................................................................................................................8
List of Abbreviations...............................................................................................................11
Chapter I.................................................................................................................................13
Introduction........................................................................................................................... 13
1.1General Background.................................................................................................................. 13
1.2 Statement of Problem.............................................................................................................. 19
1.3 Objective of the Study.............................................................................................................. 24
1.4 Significance of the study...........................................................................................................25
1.5 Literature Review..................................................................................................................... 26
1.5.1 Review of major literature...............................................................................................26
1.5.2 Review of recent literature................................................................................................34
1.5.3 Review of Nepalese Review...............................................................................................42
1.6 Conceptual Framework............................................................................................................ 44
1.7 Operational definition and hypothesis.....................................................................................46
1.7.1 Dependent Variable........................................................................................................... 46
1.7.2 Independent Variables.......................................................................................................47
1.8 Research Methodology.............................................................................................................51
1.8.1 Research Design.................................................................................................................52
1.8.2 Nature and Sources of the data.........................................................................................53
1.8.3 Data collection instruments...............................................................................................53
1.8.4 Population and Sample......................................................................................................53
1.8.5 Method of the data analysis.............................................................................................. 54
1.8.6 Validity and Reliability........................................................................................................55
1.9 Limitations of the Study............................................................................................................56
1.10 Organization of the study.......................................................................................................57

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 Chapter II................................................................................................................................58
Data analysis and major findings............................................................................................58
2.1 Presentation and Analysis of data............................................................................................58
2.1.1 Profile of respondents........................................................................................................58
2.1.2 Respondents' perception or presentation on availability of alternative resources, easy access
to resources, time spent, personalized support, loss of creativity and student’s academic
performance on the impact of artificial intelligence.......................................................62
2.2 Correlation Analysis..................................................................................................................73
2.3 Regression analysis...................................................................................................................74
2.4 Major Findings.......................................................................................................................... 76
Chapter III...............................................................................................................................85
Summary and conclusions......................................................................................................85
3.1 Summary.................................................................................................................................. 85
3.2 Conclusion................................................................................................................................ 87
3.3 Recommendations....................................................................................................................88
3.4 Scope for future research.........................................................................................................88
References..............................................................................................................................90
Appendix.............................................................................................................................. 108

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 List of tables

Table 1.1: Review of major literature

Table 1.2: Review of recent literature
Table 1.3: Review of Nepalese literature
Table 1.4: Coefficient of Cronbach’s alpha
Table 2.1: Demographic characteristics of the respondents
Table 2.2: Respondents’ work-life balance
Table 2.3: Respondents’ perception on Supervisory support
Table 2.4: Respondents’ perception on Organizational climate
Table 2.5: Respondents’ perception on incentives
Table 2.6: Respondents’ perception on work environment
Table 2.7: Respondents’ perception on Employees performance
Table 2.8: Kendall’s correlation coefficient matrix
Table 2.9: Estimated regression result employees' job satisfaction with organizational climate,
supervisory support, work environment, incentives ,employee relation in Nepalese
commercial bank in Nepal

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 List of figures

Figure 1.1: Conceptual framework

Figure 2.1: Classification of respondents by gender
Figure 2.2: Classification of respondents by age
Figure 2.3: Academic qualification of respondents
Figure 2.4: Work experience of respondents
Figure 2.5: Designation of respondents

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 List of abbreviations

A Agree

Adj. R2 Adjusted R2

BBA Bachelors of Business Administration

D Disagree

EJS Employees’ job satisfaction

OC Organizational climate

SS Supervisory support

ER Employee Relation

IC Incentives

PW Working environment

N Neutral

SA Strongly agree

SD Strongly disagree

SEE Standard error of estimate

H Hypothesis

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Executive summary

The employees' job satisfaction depends on the willingness and also the openness of employees
itself doing their job (Sinha, 2001). By having willingness and openness of the employees in
doing their job, it could increase employee morale, productivity and engagement both positively
and negatively in the workplace environment (Chandrasekar, 2011). The work environment can
hinder or set limits on the range of work behaviors that are displayed which, in turn, potentially
influence task performance.

Workplace environment is the sum of the interrelationships that exists within the employees and
the environment in which they work (Kohun, 2002). The workplace environment involves the
physical location as well as the culture, resources, working relationships, work location, all of
which influence the way employees job satisfaction (Health, 2006). The workplace environment
consists of physical factors which include the office layout and design among other factors while
the psychosocial factors include working conditions, role congruity and social support. Other
aspects of the workplace environment are the policies which include employment conditions: An
effective workplace environment management entails making work environment attractive,
comfortable, satisfactory and motivating to employees so as to give employees a sense of pride
and purpose in what they do (Humphries, 2005).

Employees’ comfort on the job, determined by workplace condition and conditions and
environment, has been important factor for measuring satisfaction (Leblebici, 2012). In today’s
dynamic and competitive business world, a healthy workplace environment makes good business
sense. Managers should not just focus on the employees’ pay packet with the assumption that it
is proportionate to satisfaction (Heath, 2006). Organizations deemed as a positive place to work
will have a competitive edge over the others.

This study was designed to analyze the effect of organizational climate on employees' job
satisfaction in nepalese commercial banks. The study is based on the primary data from 16
nepalese commercial bank with 124 respondents. Structured question was distributed to the
employees of commercial banks to collect the information. The questionnaire was divided into
two sections where the first section includes the personal detail of the respondent and rest of

9
other section includes statement question on workplace environment and employee’s job
satisfaction. There were 5 statements that characterized each variable that has impact on
employer’s job satisfaction. Each statement was measured on Likert scale where, I being
strongly agree and 5 being strongly disagree. The research design adopted in this study is
descriptive and casual comparative research design to deal with the fundamental issues
associated with various factors of workplace environment on employees' job satisfaction
performance in Nepalese commercial banks.

The correlation matrix shows that organizational climate is positively related to employee job
satisfaction. It indicates that better the organizational climate, higher would be the employees'
job satisfaction. Similarly, there is positive relationship between organizational culture and
employees' indicating that better organizational culture leads to increase in employees' job
satisfaction. The result also shows that there is positive correlation between organizational
climate and employees’ job satisfaction. This indicates that better the organization climate
practices, higher would be the employees' job satisfaction. Likewise, supervisory support is
positively related to employees' job satisfaction. This indicates that better the supervisory
support, higher would be employees' job satisfaction. Similarly, organizational incentive is
positively correlated to employees 'job satisfaction. This indicates that better the organization
incentives, higher would be employees' job satisfaction

The regression results indicate that the beta coefficient for organizational climate is positive with
employee job satisfaction. It indicates that better physical environment has a positive impact on
employees' job satisfaction. Similarly, the beta coefficients for organizational culture are positive
with employees' job satisfaction indicating that better organizational culture leads to increase in
employees' job satisfaction. The result also shows that work life balance has positive impact on
job satisfaction. This indicates that better the work life balance practices, higher would be the
employee’s job satisfaction. Likewise, beta coefficients for supervisory support are positive with
employees' job satisfaction. This indicates that better the supervisory support, higher would be
employees' job satisfaction e. Similarly, the result also shows that beta coefficients for employee
relation are positive with employees' job satisfaction. This indicates that better the compensation,
higher would be employee’s job satisfaction.

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 Chapter I
Introduction

General background

The employees' job satisfaction depends on the willingness and also the openness of employees
itself doing their job (Sinha, 2001). By having willingness and openness of the employees in
doing their job, it could increase employee morale, productivity and engagement both positively
and negatively in the workplace environment (Chandrasekar, 2011). The work environment can
hinder or set limits on the range of work behaviors that are displayed which, in turn, potentially
influence job satisfaction.

Workplace environment is the sum of the interrelationships that exists within the employees and
the environment in which they work (Kohun, 2002). The workplace environment involves the
physical location as well as the culture, resources, working relationships, work location, all of
which influence the way employees’ job satisfaction (Health, 2006). The workplace environment
consists of physical factors which include the office layout and design among other factors while
the psychosocial factors include working conditions, role congruity and social support. Other
aspects of the workplace environment are the policies which include employment conditions: An
effective workplace environment management entails making work environment attractive,
comfortable, satisfactory and motivating to employees so as to give employees a sense of pride
and purpose in what they do (Humphries, 2005).

Employees’ comfort on the job, determined by workplace condition and conditions and
environment, has been important factor for measuring their productivity (Leblebici, 2012). In
today’s dynamic and competitive business world, a healthy workplace environment makes good
business sense. Managers should not just focus on the employees’ pay packet with the
assumption that it is proportionate to satisfaction (Heath, 2006). Organizations deemed as a
positive place to work will have a competitive edge over the others.

An attractive and supportive working environment enables employees to perform effectively,

making best use of their knowledge, skills and competencies, and optimum utilization of
available resources in order to provide high-quality of organizational service. To continuously

11
improve workplace conditions, special attention to a performance culture that values every single
employee’s and promotes a sustainable work-life balance should be embraced (Mokaya et al.,
2013). Furthermore, employees' job satisfaction is influenced by attitudes, experiences, beliefs,
and values of the organization, acquired through social learning, that control the way individuals
and groups in the organization interact with one another and with parties outside organization
(Weerarathna and Geegange, 2014). Organizational climate is considered as the personality of
the organization and it is the aspect of the shapes the way the organization functions.

A healthy workplace environment makes good business sense and is characterized by respect
that supports employee engagement and creates a high-performance culture that encourages
innovation and creativity (Kohun, 2002). Organizations deemed as a positive place to work will
more likely have a competitive edge since they are in better position to attract and retain highly
skilled employees. A positive workplace environment is likely to result in less employee
turnover, fewer cases of fraud, better safety practices, easier to attract and retain qualified
employees and improved employees' well-being (Cunneen, 2006).

Nowadays, organizations must be aware of their potential workforce due to the competitive
business environment. Workplace environment can greatly impact motivation and performance
level of employees. The factors of workplace greatly impact lifestyle, work-life balance and also
health fitness of employees (Chandrasekhar, 2011). The concept of workplace performance deals
with the factors of workplace environment that is being provided by the employer to their
employees that could support employees' performance at work (Clements, 2006). A high level of
employee job satisfaction increases the level of corporate productivity and ultimately increases
the company's profit.

The factors of environment had changed due to the changes in several factors such as the social
environment, information technology and the flexible ways of organizing work process (Hisum
and Makhbul, 2005). Physical environment affects how employees in an organization interact,
perform tasks, and are led. Physical environment is an aspect of the work environment that
directly affect the human some subtly change interpersonal interactions and ultimately
organizational productivity. This is so because the characteristics of a room or a place of meeting
for up have consequences regarding productivity and satisfaction level (Obamiro et al., 2019).

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Similarly, workplace incentives have a significant impact on employee performance. Workplace
incentives are used by various organizations to compensate and reward performance of
employees who perform more than expectation (Waterloo and Ontario, 2009). Incentives are
designed to get the best satisfaction from the employees and help retain their productivity
(Bowen, 2000). Some types of incentive plan available in banks are bonuses, conveyance
allowance, medical allowance, increase salary, monthly leaves, promotion and recognition are
included. These incentives encourage the employees and hence productivity enhances by
affecting the performance, efficiency, satisfaction, responsibility, effectiveness and commitment
of employees (Mamdani and Minhaj, 2016).

In the context of Nepal, Adhikari (2010) stated that in Nepalese workplaces most prominent
human resources issues and problems such as unproductive staffs, lack of corporate culture, lack
of mechanism to implement labor legislations, low degree of integration, coordination of
different function, lack of performance based system, distorted flow of communication and
information, low level of pay, rising absenteeism and proliferating union activities etc. directly
affect the job satisfaction of employees. Similarly, the employees in Nepalese commercial banks
still perceive a significant positive relationship with the components such as personal benefits of
training and components of commitment (Pandey, 2008). Lack of trustful relations of top level
management with line management, feeling of seniority and status increasing dissatisfaction
from work, lack of dissatisfaction from work, lack of budget for training and development and
lack of performance management systems are the main barriers prevailing in the employee’s
relations system and weakening the employee job satisfaction (Adhikari, 2008). The commercial
banks are service industry and their main aim is to satisfy their customer. The service bank
employee renders: their customer and employee job satisfaction is interrelated. For service
industry the business is based almost on their employees' performance. Hence, management must
look for various ways in improving employees' job satisfaction.

The above discussion showed that the studies dealing with the effect of workplace environment
on employees' job satisfaction in commercial banks are of greater importance. Hence, this study
focuses on the effect of workplace environment on employees' job satisfaction in Nepalese
commercial banks.

1.2 Statement of problem

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Creating a working environment which promotes wellbeing of employees and increase
individual job satisfaction is viewed as a strategy for enhancing company efficiency and
productivity. When this is sufficiently provided, it can boost organizational competitiveness
(Heath, 2006). Workplace environment plays an essential role towards employees' performance
and productivity in any organization (El-Zeiny, 2013). Hence, providing a good workplace
environment increases employee performance in organizations (Shikdar and Shawaqed, 2003).

Chandrasekhar (2011) stated that there are key factors in the workplace environment that could
give a great impact towards the motivation and performance level. The work environment to a
large extent is a major determinant in employees' job satisfaction in any organization. Likewise,
(Roelofsen 2002) indicated that improving the working environment reduces complaints and
absenteeism while increasing productivity and performance. The business environment is
becoming very competitive, dynamic and complex. Management should therefore find ways to
ensure that workplace environment is conducive enough to enable employee job satisfaction in
order to remain competitive.

Stallworth and Kleiner (1996) argued that an organization's physical layout is designed around
employees' needs in order to maximize productivity and satisfaction. Bank institutions make
significant investments in designing, building and ultimately recruiting knowledgeable
personnel. Banks immediate work environment in terms of actual physical and design of an
office is extremely important when it comes to maximizing individual performance. Poorly
designed workstations, unsuitable furniture, lack of ventilation, inappropriate lighting and
excessive noise adversely affect employee job satisfaction (Becker, 2002).

According to Allan et al. (2007), the inability of employees to achieve balance between work
and home domains can have negative consequences for both individual and organizations. In
addition, Samen et al. (2015) revealed that work life balance has significant positive influence on
employee job satisfaction and the study also concluded that ignoring work life balance will lead
to broad emotional and behavioral deficiency thus affecting performance of employees.
Accoording to Noble (2009) stated that more attention should be paid in identifying and dealing
with working environment because when employee have negative perception to their
environment, they suffer from chronic stress affecting their performance and their job
satisfaction.

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Supervisory support, organizational climate, employee relation, incentives and working
environment are the factors of working environment in an organization that could affect the
employees' job satisfaction. Furthermore, as part of the work itself, it consists of the relationship
between work, tools of work and workplace. The workplace environment also could lead to the
unsafe and unhealthy environment in an organization (Chandrasekhar, 2011). Similarly,
Roelofsen (2002) indicated that improving the working environment reduces complaints and
absenteeism while increasing productivity. The business environment is becoming very
competitive, dynamic and complex. Management should investigate to ensure that workplace
environment id conductive enough to enable employees' job satisfaction in order to remain
competitive.

In the open office plan, noise existence is stressful and de-motivating, posses' high level of
distraction and disturbances coupled with low privacy level (Evans and Jhonson, 2000). Closed
office floor plan, whether each employee has a separate office of their own or there are a few
people in each closed office, allows staff a greater amount of privacy than an open plan office
layout. They have the chance to work in peace and quiet, keeping them focused on the tasks in
hand without getting overtly distracted by what their colleagues are doing. It offers employees a
thinking fame or to be creative without much interruption (Mubex, 2010).

In the context of Nepal, lots of conflict between job requirement and current level of employees’
skills making it difficult in performing the given jobs. Employees’ participation refers to the
direct involvement of individuals in decision making through representative in an organization
(Agrawal, 2005). Likewise, Bishwakarma (2015) revealed that workplace conditions and
employee engagement are congenial in non-financial sector in Nepal. Similarly, Shakya and
Devi (2016) concluded that inadequate time available for employees and their family cause work
stress for bank and employee that ultimately deteriorates employees' job satisfaction.

Though there are above mentioned evidences in the context of other countries and Nepal, no
such evidences using more recent data exist. Thus, this study deals with the following issues
regarding the influence of organizational climate on the employees' job satisfaction of Nepalese
commercial banks the in Nepal:

1. What is the perception of organizational climate, working environment, incentives,

supervisor support, employees’ relation and employee’s job satisfaction?

15
2. Is there any correlation of organizational climate, working environment, incentives,
supervisor support, employees’ relation and employee’s job satisfaction of Nepalese
commercial banks?
3. What is the impact of organizational climate, working environment, incentives,
supervisor support, employees’ relation and employee’s job satisfaction of Nepalese
commercial banks?
4. Do organizational climate, working environment, incentives, supervisor support,
employees’ relation has significant impact on the employee’s job satisfaction of Nepalese
commercial banks?
5. Whether organizational climate, working environment, incentives, supervisor support,
employees’ relation are correlated with the employees' job satisfaction of Nepalese
commercial banks?
6. What is the relationship of organizational climate, working environment, incentives,
supervisor support, and employees’ relation on the employees' job satisfaction of
Nepalese commercial banks?
7. Which factors among organizational climate, working environment, incentives,
supervisor support, and employees’ relation need to be improved to enhance the
employees' job satisfaction of Nepalese commercial banks?
8. Which is the most significant factor that influence of organizational climate on the
employees' job satisfaction of Nepalese commercial banks?

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1.3 Objectives of study

The major objective of this study is to influence of organizational climate on employees' job
satisfaction in Nepalese commercial banks

The specific objectives of the studies are as follows:

1. To analyze the perception of respondents regarding organizational climate, working

environment, incentives, supervisor support and employees relation.
2. To assess the relationship regarding organizational climate, working environment,
incentives, supervisor support and employees relation with employees’ job satisfaction in
Nepalese commercial banks.
3. To examine the impact of organizational climate, working environment, incentives,
supervisor support and employees relation with employees’ job satisfaction in Nepalese
commercial banks.
4. To determine the most influencing factors that affect employees job satisfaction in
Nepalese commercial banks.

1.4 Significance of study

The study is conducted to understand the influence of organizational climate on employee job
satisfaction in Nepalese commercial banks. Job satisfaction is a critical factor in employee
engagement, productivity, and overall organizational success. Understanding how the
organizational climate affects job satisfaction can help organizations create a positive work
environment that fosters employee well-being and motivation.

The study provides insights into the factors that contribute to job satisfaction. By examining the
organizational climate, which includes aspects such as organizational climate, working
environment, incentives, supervisor support and employees relation researchers can identify
specific areas that have the most significant impact on employees' satisfaction levels. This
knowledge can guide organizations in implementing strategies to improve job satisfaction and
ultimately enhance employee retention and performance. Organizations can use the findings to
design effective employee engagement programs, training initiatives, and performance
management systems that align with the needs and preferences of their workforce. The study can
have broader implications for society as a whole. Job satisfaction not only affects individual
employees but also has effects on their families, communities, and overall well-being. By

17
understanding the influence of organizational climate on job satisfaction, organizations can
contribute to creating healthier working environments and promoting employee happiness and
fulfillment.

In conclusion, studying the influence of organizational climate on employees' job satisfaction is

significant as it provides valuable insights for organizations to create positive work
environments, enhance employee engagement and productivity, and contribute to overall well-
being. Likewise, the study is also beneficial for academicians who may use this as basis to
conduct further research on similar topics. Furthermore, among the various components, the
present study is aimed to examine the important elements such as organizational climate,
incentive, working environment, supervisor support and employees’ relation on job satisfaction
of employees.

1.5 Literature review

This chapter provides conceptual framework of the study and deals with the review of empirical
studies. It is divided into three sections. The review of literature carried out in this study has been
organized as under:

1.5.1 Review of major literature

1.5.2 Review of recent literature

1.5.3 Review of Nepalese literature

1.5.1 Review of major literature

1.5.1 Review of major literatures

The review of major literature related to the influence of organizational climate on employees'
job satisfaction in Nepalese commercial banks is summarized in Table 1.1.

Table 1.1: Review of Major literature

Study Major findings

Choudhury (2020) Interconnectivity of organization climate and job satisfaction helps in
driving the employees to perform the best. The satisfied employee will be
motivated and work efficiently, quantitatively and qualitatively which in
turn add value to the organization beyond the work.
Singh and Commitment, dedication, compensation influence the employee
Sharma (2019) performance and motivation in the Organization.
Aldoseri and Workplace climate plays a crucial role in inspiring workers to do their

18
 Almaamri (2020) assignments.
Kabak el at. Factors such as facilities, job security, reward and there is little impact of
(2014) education and salary levels on job satisfaction.
Jones (2019) Creating and sustaining job satisfaction and engagement with employees is
an ongoing challenge for organizations; establishing employee
organizational commitment represents a significant additional challenge.
Maryati et al. Spiritual leadership and job satisfaction have a positive and significant
(2019) effect on job satisfaction as well as organizational culture on employee job
satisfaction.
Imran Job security, job satisfaction and organizational justice, productivity of any
et al. (2015) organization can be increased.
Muthuswamy and Administrative employees at tertiary hospitals have favorable attitudes
Almoosa (2023) toward rewards and recognition.

Cahill el at. Understanding of how macroeconomic conditions are the influence factor
(2015) of employee attitudes.
Arifin et al. Improve employee job performance is not enough just by the unilateral
(2019) policies of companies such as improving work methods, wages, discipline
rules, co-workers, supervision and promotion.

Choudhury (2020) examined the critical review of literature on organization climate & job
satisfaction. The objective of this study is to review the literature on job satisfaction and
organization climate and provide a stronger view on it. The dependent variables used
are organizational climate, job satisfaction whereas the independent variables are psychological
environment, motivation, organization culture, emotional competency. The study used sample
and procedure method to analyze the data from respondents. The study found that various factors
of organization climate are significantly correlated with job satisfaction.

Singh and Sharma (2019) explored the impact of employee engagement on job satisfaction-An
emerging trend. The main objective of main objective of the study was to analyze and
interpret the benefits of employee engagement on the performance of the organization as a
whole in context to Indian Market. The dependent variable includes job satisfaction and the
independent variables includes employees engagement, employee performance, , challenge. The
study adopted a descriptive research design. The raw data obtained from the field was coded,
scrutinized and then organized to enhance accuracy by using SPSS for correlation and regression
analysis The study revealed a there are several factors like commitment, dedication,
compensation which influence the employee performance and motivation in the organization

19
Aldoseri and Almaamri (2020) investigated the factors influencing employee performance at the
banking sector in kingdom of Bahrain: literature review. The purpose of this paper is to explore
the factors influencing employee performance, namely: leadership style, job satisfaction,
motivation, employee engagement and work environment lead to good employee performance
towards service organizations. The dependent variables used are employee performance, whereas
the independent variables: leadership style, job satisfaction, motivation, employee engagement,
work environment. The study has used two major approaches: Two-factor theory and Maslow
Theory.

Kabak et al. (2014) examined the strategies for employee job satisfaction: A case of the service
sector. It includes the best practices of Total Quality Management (TQM) through increasing
employee job satisfaction. The purpose of this study is to measure the impact of TQM activities
on the job satisfaction for small and middle sized companies (SMEs) in the service sector with an
empirical analysis. Five TQM practices chosen to have a significant impact on job satisfaction
are employee training and education, employee relations and teamwork, employee reward and
recognition, quality culture and employee empowerment. The variables are analyzed using the
exploratory factor analysis (EFA), descriptive statistics analysis, correlation analysis and an
independent sample t-test. Results show that employee training and education, and employee
relations and teamwork are the most dominant factors on job satisfaction. However, there are
some considerable factors such as facilities, job security, rewards and there is little impact of
education and salary levels on job satisfaction.

Jones (2018) examined the relationship of employee engagement and employee job satisfaction
to organizational commitment. The main objective of the study is to determine if there is a
relationship among employee engagement, employee job satisfaction, and employee
organizational commitment. The independent variables were employee engagement and
employee job satisfaction. Dependent variable include employee organizational commitment and
the Independent variable includes accounting framework, long hours, burnout, and routine tasks,
employees in public accounting experience low engagement, satisfaction, and commitment. This
study has used a co relational study using a survey. This study has used a correlation study using
a survey. This study has used a correlation study using a survey.

20
Maryati et al. (2019) analyzed the effect of spiritual leadership and organizational culture on
employee performance: The mediating role of job satisfaction. This study aims to test the effect
of spiritual leadership and organizational culture on job satisfaction and employee performance.
Dependent variable includes employee performance whereas the independent variable
includes spiritual leadership, organizational culture, and job satisfaction. The data were analyzed
using a structural equation model (SEM) to test the proposed hypotheses. This study concludes
that spiritual leadership and job satisfaction have a positive and significant effect on job
satisfaction as well as organizational culture on employee performance. In contrast to
expectations, spiritual leadership does not affect employee performance as much as
organizational culture affects job satisfaction.

Imran et al. (2015) examined the impact of organizational justice, job security and job
satisfaction on organizational productivity. The main objective of the study is to explore the
relationship between job security, organizational justice and organizational productivity with the
mediating role of job satisfaction. This study used dependent variables as organizational
productivity and the independent variables as Organizational justice, job security, job
Satisfaction. The primary data was collected through questionnaires. The study explored a new
path to increase the productivity of the organization. This indicates that by job security, job
satisfaction and organizational justice, productivity of any organization can be increased. In this
new era of globalization, the business world is facing so many problems and competition among
organizations is increasing.

Muthuswamy and Almoosa (2023) investigated impact reward and recognition toward job
satisfaction. The main objective of this study is to identify the demographic factors and their
impact on job satisfaction. The dependent variable is organizational rewards and the independent
variables are Demographic factors, employee job satisfaction. The data were collected by
sampling technique and T-test and ANOVA Tests were used to determine the significance of
differences between administrative employee job satisfaction means and demographic variables.
The study indicated that administrative employees at tertiary hospitals have favorable attitudes
toward rewards and recognition.

Cahill et al. (2015) investigated the linking shifts in the national economy with changes in job
satisfaction, employee engagement and work–life balance. This study examined the extent to

21
which job satisfaction, employee engagement, and satisfaction with work– life balance are
influenced by changes in the macroeconomic. Dependent variables include job satisfaction and
the independent variables include employee engagement, work–life balance. This study has used
a conceptual model. The study showed the need for a deeper understanding of how
macroeconomic conditions influence employee attitudes.

Arifin et al. (2019) examined the improving effect of work satisfaction on job performance
through employee engagement. The purpose of this study was to examine the effectiveness of
employee engagement increases the effect of job satisfaction. Dependent variables include
Employee engagement and the independent variables include job satisfaction, job performance.
The study used simple random sampling by giving equal opportunity to each member of the
population by taking lottery numbers to become a study sample that represents the company
according to the number of research distributions. This study has found that to improve
employee job performance is not enough just by the unilateral policies of companies such as
improving work methods, wages, discipline rules, co-workers, supervision and promotion.
Although in this study there was no direct relationship between job satisfaction and employee
engagement, the role of employee engagement was needed to maximize job satisfaction stimulus
to further improve job performance on job performance

1.5.2 Review of recent literature

The review of recent literature on the influence of organizational climate on employees' job
satisfaction in Nepalese commercial banks is summarized in table 1.2

Table 1.2: Review of recent literature

Study Major Findings

Dongol (2022) The moderate level of gender diversity improves competitive advantage, but a
larger level of gender diversity lowers organizational performance.

Sidabutar et al. Several important conclusions will be therein company management, if with
(2020) compensation, motivation and job satisfaction; the employee's performance will
increase.
Paais and Several dependent variables have a vital role in influencing job performance
Pattiruhu and satisfaction. This study has also added empirical considerations in
(2020) management scholarship about the aspect of leadership motivation and its
beneficial effect on organizations.

22
 Pertiwi and Compensation has a positive and significant effect on employee retention,
Supartha organizational commitment has a positive and significant effect on employee
(2021) retention, job satisfaction has a positive and significant effect on employee
retention, compensation has a positive and significant effect on job satisfaction
Taheri et al. Providing a better working environment is also the prime concern of the
(2020) organizations or institutions to maintain the steady workforce for the business
to run.
Berberoglu Organizational climate is highly correlated with organizational commitment
(2018) and perceived organizational performance. Simple linear regression outcomes
indicated that organizational climate is significant in predicting organizational
commitment and perceived organizational performance.
Khan and Collegial leadership, academic achievement, teachers' professionalism and
Nadia .(2019) institutional vulnerability on teachers' commitment. These factors are directly
related with efficiency and effectiveness of school.
Sidabutar and Compensation, work environment, and organizational culture each have a
Syah (2022) positive effect on the job satisfaction of the employees.
Kurniawaty et Work environment had a positive and significant effect on job satisfaction and
al. (2019) also stress had a negative and significant effect on job satisfaction.
Ratri et al. Factors that can predict performance, and research continued by using
(2021) unstructured demographic data, such as income levels or workloads.

Dongol (2022) analyzed that the moderate level of gender diversity improves competitive
advantage, but a larger level of gender diversity lowers organizational performance. The study
found that the workforce diversity and its effect on employees’ performance at a commercial
bank. The responses to a self-administered questionnaire about the workforce diversity of bank
workers are gathered using a self-administered questionnaire. A total of 125 questionnaires were
given among the sample bank workers, and 99 questionnaires were returned, resulting in a 79.2
percent sample size of respondents for the study. Using the Software Package for Social Science
(SPSS) software, this study performed descriptive analysis, correlation, and multiple regression
analysis to discover the empirical relationship between the bank’s workforce diversity and
employee performance. All three workforces’ diversity indicators have a statistically significant
positive relationship with employee performance and employee job satisfaction.

Sidabutar et al. (2020) investigated the impact of compensation, motivation, and job satisfaction
on employee performance. Employee performance is the main concern for every company, due
to employee performance can be a benchmark in the success rate from a company. Therefore,
employee performance is the new one of interesting topics to research. This study examined the

23
effect of compensation, motivation, and job satisfaction on employee performance. The collected
data were analyzed using SPSS and structural equation modeling (SEM). The results of this
study are that compensation, motivation, and job satisfaction can improve employee
performance. Therefore, this study found the important conclusion for company management
that compensation, motivation and job satisfaction; the employee's performance will increase.

Paais and Pattiruhu (2020) analyzed the effect of motivation, leadership, and organizational
culture on satisfaction and employee performance. The major objective of this study is to
investigate the effect of motivation, leadership, and organizational culture on job satisfaction,
and employee performance at wahana resources ltd. The dependent variable used in this study
is employee Performance and the independent variables are motivation; leadership, organization
culture, Work Satisfaction. This study has used the correlation test, using the Pearson correlation
method. After transforming the value variable, the trial is continued by testing the hypotheses
through the correlation testing method with significance). This study showed that several
dependent variables have a vital role in influencing job performance and satisfaction. This study
has also added empirical considerations in management scholarship about the aspect of
leadership motivation and its beneficial effect on organizations.

Pertiwi and Supartha (2021) analyzed the effect of compensation and organizational commitment
on employee satisfaction and retention. The effect of compensation and organizational
commitment on employee satisfaction and retention. The data collection used a questionnaire,
while the data analysis technique used descriptive statistical analysis, path analysis and single
test. The results of this study found that compensation has a positive and significant effect on
employee retention, organizational commitment has a positive and significant effect on employee
retention. The implication of this study is that all variables, namely compensation and
organizational commitment, have a positive and significant effect on job satisfaction and
employee retention. In this way, the bpr management is expected to be able to manage and retain
good quality employees for the long-term health of the company.

Taheri et al. (2020) examined impact of the working environment on job satisfaction. . For better
job satisfaction, the working environment is considered as the prime factor to be considered by
the employers. To keep the steady upward growth of the institutions it is mandatory to keep the
efficiency, effectiveness, and productivity of the employees by providing different facilities.

24
And, the working environment is the most crucial demand of the employees. The objectives of
this study are to understand the impact of the working environment on job satisfaction by the
quantitative and qualitative analysis of contributing characters. Data collections were done
through a well-constructed questionnaire. The contributing populations were from two
organizations. The study showed significant impacts of the working environment on job
satisfaction. As, without providing better facilities organizations can’t run properly, whereas-
working environment is the prime concerning issue of the employee.

Berberoglu (2018) analyzed impact of organizational climate on organizational commitment and

perceived organizational performance: empirical evidence from public hospitals. Positive
organizational climate leads to higher levels of organizational commitment, which is an
important concept in terms of employee attitudes, likewise, the concept of perceived
organizational performance, which can be assumed as a mirror of the actual performance. The
study used a quantitative approach, by collecting data from the healthcare workers currently
employed in public hospitals in north cyprus, utilizing a self-administered questionnaire.
Collected data was analyzed with the help of statistical package for social sciences, and ANOVA
and linear regression analyses were used to test the hypothesis. The study revealed that
organizational climate is highly correlated with organizational commitment and perceived
organizational performance. Simple linear regression outcomes indicated that organizational
climate is significant in predicting organizational commitment and perceived organizational
performance.

Khan and Nadia (2019) examined the impact of organizational climate on teacher’s commitment.
This study determined the relationship between school climate and teachers' commitment and the
impact of key dimensions of school climate, which are collegial leadership, academic
achievement, teachers' professionalism and institutional vulnerability on teachers' commitment.
The data were collected through questionnaires. It showed a relationship between school climate
and teacher's commitment.

Sidabutar and Shah (2022) investigated the effect of compensation, work environment, and
organization culture on employee job satisfaction. Job satisfaction reflects the positive response
of employees to the assessment and experience of the benefits felt during work. Research
questionnaires were made using a goggle form, and distributed online via WhatsApp to

25
respondents who are non managerial employees at a bank. It indicates that compensation, work
environment, and organizational culture each have a positive effect on the job satisfaction of the
employees.

Kurniawaty et al. (2019) analyzed the effect of work environment, stress, and job satisfaction on
employee turnover intention. The study is expected to be able to find a solution to the problem of
increasing turnover intention which could lead to serious problems. The study used a quantitative
method with the path analysis model and the resulting model analyzed both direct effect and
indirect effects of independent variables on dependent variables. The sample size includes 100
employees of mandiri bank who were selected from a population of 430 employees based on
purposive random sampling technique. The study showed work environment, stress, and job
satisfaction can be policy tools to reduce turnover intention, which can lead to a decrease in real
turnover at mandiri bank.

Ratri et al. (2021) examined the role of employee demographics, work stress, and rewards on job
satisfaction and employee performance. The purpose of this study was to examine demographic
factors as moderating variables on the relationship between job stress and job satisfaction and the
relationship between rewards and job satisfaction and measure the effect of job satisfaction on
job performance. It used multivariate quantitative study, consisting of four types of variables,
namely independent variables (job stress and reward), dependent variables (employee
performance), mediator variables (job satisfaction), and moderator variables (employee
demographics). job satisfaction of each employee does not determine the performance of
employees.

1.5.3 Review of Nepalese literature

The review of Nepalese studies on the influence of organizational climate on employees' job
satisfaction in Nepalese commercial banks is summarized in table 1.3

Table 1.3: Review of Nepalese literature

Study Major Findings

Sapkota et al. Practitioners should be mindful of the fact that climate is unique to every organization
(2020) and should be viewed in the context of the particular organization.
Goet (2022) The conducive workplace environment should be prioritized as it provides
support to the employees in carrying out their jobs.

26
 Shrestha Motivation, organizational support, training and development, supervisory support,
(2023) retention policy and communication are very effective in Nepalese commercial banks.
Hakuduwal Job security has the highest positive significance on employee job satisfaction in hotels
(2021) of Bhaktapur followed by compensation and reward, working environment and career
development opportunities.
Maharjan Banking employee has to work with passion and dedication for achieving the banking
(2022) objectives and deep statistical analysis, study has found that there is significant
relationship between job satisfaction and employee’s pay scale.
Dhakal (2022) Employee satisfaction helps organization to perform effectively and efficiently and
achieve organization goal. Enhancing employee satisfaction creates and fosters an
environment which helps organization to grow and sustain.
Sapkota et al.
(2020)
Working conditions, pay and promotion, job security, fairness, relationship with co-
workers and supervisors in affecting the job satisfaction.

Sapkota et al. (2020) investigated impact of organizational climate on job performance in

nepalese supermarket: Evidence from bhatbhateni supermarket. Organizational climate changes
rapidly in today's competitive business scenario which affects the performance of the employee.
Regression method was used for the purpose of data analysis from the data collected among 130
employees of bhatbhateni supermarket's outlet of kathmandu valley. They showed that
employees are satisfied with the organizational practices. However, some employees also felt
that more training and organizational support could help in making organizational climate better.

Goet (2022) investigated that a conducive workplace environment should be prioritized as it

provided support to the employees in carrying out their jobs. A well-structured questionnaire was
developed to collect data from 240 respondents using purposive sampling technique. Data
analysis was done using Statistical Packages for the Social Sciences (SPSS) to generate mean,
standard deviation, correlation, and regression analysis, and to diagnose the collected data. The
results revealed that there is a significant influence of job aids (JA), team effort (TE), physical
environment (PE) and supervisor support (SS) on employee’s performance (EP) in Nepalese
commercial banks. Furthermore, JA and PE have a strong impact on employee’s performance
and TE and SS have the least influence. The practical implications are transparent for the
managers and employers in Nepalese commercial banks since the workplace environment helps
to improve the performance of the employees. The originality in the article claimed to enhance

27
the performance of the employees, the implementation of a good workplace environment must be
complemented.

Shrestha (2023) investigated the factors affecting employees’ job satisfaction: a case of Nepalese
commercial banks. An effective banking system can aid in rapid economic growth. The process
of internal marketing is seen as particularly important in the financial services sector. Primary
data collection was performed by providing questionnaires to 400 employees of 20 commercial
banks. The study showed that the supervisory support, organizational support, retention policy,
selection and appointment play a prominent role in determination of employee job satisfaction.

Hakuduwal (2021) analyzed the factors affecting employee job satisfaction in Nepalese
hospitality industry. Compensation and reward, working environment, career development, job
security and co-workers are taken as independent variables and employee job satisfaction as a
dependent variable. The study used the purposive sampling, 153 employees were selected, and a
questionnaire survey was carried out to collect data using regression analysis. The study revealed
that job security has the highest positive significance on employee job satisfaction in hotels of
Bhaktapur followed by compensation and reward, working environment and career development
opportunities.

Maharjan (2022) examined employee’s salary and job satisfaction in banking sector of nepal. He
study used One-way ANOVA test and the descriptive statistic. This study examined the role of
employee’s salary and job satisfaction in banking sector of Nepal. The study revealed that there
is a significant relationship between job satisfaction and employee’s pay scale. The employee’s
salary can be the motivating factor for enriching job satisfaction. The pay scale of banking
employees has to be the motivating tools for enhancing banking performance and ensuring job
performance.

Dhakal (2022) analyzed the effect of job environment on employee satisfaction in nepalese
commercial banks. The study examined the effect of job environment on employee satisfaction
in Nepalese commercial banks. The study used structured questionnaire and correlation
coefficients and regression models to test the significance and importance of job environment on
employee satisfaction in Nepalese commercial banks. The study showed that job safety and
security have a positive impact on employee satisfaction.

28
Sapkota et al. (2020) examined factors affecting employee job satisfaction of the banking sector
in Nepal. This study revealed the job satisfaction of employees in different banks. It focused on
the relative importance of job satisfaction factors and their impacts on the overall job satisfaction
of employees. A descriptive research design with survey method is applied in the study. The
study used both the primary and the secondary data for the purpose of this study. Employees
from medium- and large-staff-sized organizations, compared with those from small staff-sized
organizations, were more likely to cite job security as a very important contributor to their job
satisfaction.

1.6 Conceptual framework

A conceptual framework is an analytical tool with several variations and contexts. Conceptual
framework of the study describes the systematic explanation of the relationship among the
dependent and independent variables for the influence of organizational climate on employee job
satisfaction in Nepalese commercial bank. It is a theoretical structure of assumptions, principles
and rules that is used to make conceptual distinctions and organize ideas. Strong conceptual
frameworks capture something real and do this in a way that is easy to remember and apply.
Conceptual framework is a type of intermediate theory that attempts to connect to all the aspects
of the inquiry with problem definition, purpose, literature review, methodology, data collections
and analysis. It can act like a map like give coherence to empirical inquiry is the conceptual
framework are potentially so close to empirical inquiry, take different forms depending upon the
research question or problem. It helps to determine and define the focus and goal of the research
problem. Based on the objective of the study and the literature review following conceptual
framework is framed to summarize the main focus and scope in terms of variables included. As,
conceptual framework can act like maps that give coherence to empirical inquiry, taking
different forms depending upon the research question and problem.

This section provides the conceptual framework of study and describes about variables that have
been used in study and the relationship between the variables. In this study, dependent variable is
employees’ job satisfaction. Supervisor support, incentive, employee relation, organizational
climate and working environment are the independent variable of the study. Thus, the following
conceptual model is framed to summarize the main focus and scope of this study in terms of

29
variables included. The conceptual frameworks that describe the dependent and independent
variables used in the study are shown in Figure 1.1.

Figure 1.1: Conceptual Framework

(The conceptual framework shown in figure 1.1 elaborates the impact among dependent variable and independent
variables. Five variables are used as independent variables. The independent variables are supervisor support,
incentive, working environment, employee relation and organizational climate. The dependent variable is employee
job satisfaction).

Independent variables
Dependent variable
Supervisory support
Employee job satisfaction
Organizational climate

Incentives

Working environment

Employee Relation

1.7 Operational definitions and hypothesis development

This section is developed to a brief discussion on dependent and independent variables which is
presented below:

1.7.1 Dependent variable

Employee job satisfaction

Pandey et al. (2012) found that dependent variable job satisfaction of employees has a significant
relationship with dependent variables. Similarly, Locke (1976) showed that job satisfaction can
be referred to as the employee's pleasant and positive emotional status which experiences
towards the company and the job and is explained by a comparison between actual result and
expected result. Factor directly affects job satisfaction among employees such as relationships
among colleagues and supervisor (Gallardo et al., 2010). Adenike (2011) found organizational
climate as a predictor of employee job satisfaction of academic staff from a private Nigerian

30
University. Similarly, Sulochana et al. (2022) stated the level of job satisfaction of the
employees since the satisfied employees provide quality service. Also, a favorable climate
directly impacts organizational growth. Therefore, it is important to have a better organizational
climate for any organization. Likewise, job satisfaction is the key component leading to
recognition, income and promotion and achieving goals that leads to feeling of fulfillment
(Kaliski, 2007).

Incentive

Incentive practices are defined as a systematic approach to provide monetary value to employees
in exchange for work performance. Lai (2011) revealed that high incentive offered by the
organization to its employees result in increased organization performance and cause employees
to stay longer in the organization. There is a negative relationship between incentive and
employee turnover (Ovadje, 2009). Likewise, Winda et al. (2017) found that there is a positive
relation between compensation and employee performance. Similarly, Maimako and Bambale
(2016) revealed that higher the salary higher would be the employee’s job satisfaction.
Odunlade (2012) revealed that there is a positive correlation between employee compensation,
benefits and job satisfaction. Moreover, Muguongo et al. (2015) revealed that compensation has
a positive influence on job satisfaction. In additional, Lestari et al. (2020) found that there is a
positive and direct impact of compensation on job satisfaction. Based on it, this study develops
the following hypothesis:

H1: There is a positive relationship between incentive and employee job satisfaction.

Supervisor support

According to Gallardo et al. (2010), there are positive job facts such as remuneration, promotion
possibilities and relationship with supervisor support can increase job satisfaction. Supervisory
support still has a positive impact over job satisfaction of employees (Griffin et al., 2001).
Similarly, Winarto et al. (2020) determined the correlation between perceived supervisor support
and job satisfaction in the hospital work environment in private hospitals. This study used cross-
sectional design. According to Elias and Mitta (2011), supervisor support for the change
initiative was found to be related to job satisfaction and job involvement; job satisfaction
mediated the supervisor support‐job involvement relationship. Perceived supervisor support has
a significant indirect impact on employee’s turnover intention (Alkhateri et al., 2018). According

31
to Worku (2015), productive behavior is seen when provided high levels of supervisor support
compared to employees who provide low levels of supervisor support. Based on it, this study
develops the following hypothesis:

H2: There is a positive a relationship of supervisor support with employee job satisfaction.

Working environment

Omollo and Oloko (2015) showed that indeed job enrichment significantly affects job
performance and that a good working environment and an average workload would highly
motivate the employees to perform their duties. Similarly, Lee and Brand (2005) showed that
working environment has positive impact on job satisfaction and employee loyalty. The
results are supported by their study. Job satisfaction is increased by a conducive working
environment. Likewise, Hasle (2012) showed that there is a positive relationship between
working environment and employee’s satisfaction. Moreover, McGuire and Mclaren (2007)
found that a working environment has a strong impact on employee’s wellbeing and develops
interaction, collaboration and innovation and increase job satisfaction. Based on it, this study
develops the following hypothesis:

H3: There is a positive a relationship of working environment with employee job satisfaction.

Employee relation

Cropanzano and Mitchell (2005) found the positive employee relations, characterized by trust,
fairness, and supportive interactions between employees and management, were
significantly associated with higher levels of job satisfaction. Moreover, Lambert et al.
(2001) found that employees who had positive relationships with their supervisors reported
higher levels of job satisfaction compared to those with strained or negative relationships.
Likewise, Tansel et al. (2014) showed that management-employee relationships are less
satisfactory in the large firms than in the small firms. Job satisfaction levels are lower in
large firms. Less satisfactory management-employee relationships in the large firms may be
a major source of the observed lower level of job satisfaction in them. Similarly, Mishra et
al. (2014) found that employee training and education, and employee relations and
teamwork are the most dominant factors on job satisfaction. However, there are some
considerable factors such as facilities, job security, rewards and there is little impact of
education and salary levels on job satisfaction. In additional, Balozi et al. (2014) showed

32
 that training and development and employee relations are positively related with job
satisfaction and they are indicating strong contribution to job satisfaction. Based on it, this
study develops the following hypothesis:

H4: There is a positive a relationship of employee relation with employee job satisfaction.

Organizational climate

Jyoti (2013) showed the impact of organizational climate on job satisfaction, job commitment
and intention to leave with the help of regression analysis and an attempt has been made to see
the factor-wise effect of organizational climate and job satisfaction on job commitment and
intention to leave. There are moderating effects of personality traits on the relationship between
certain aspects of organizational climate and job satisfaction (Ahmad et al., 2018). Likewise,
Churchill et al. (1976) found that the most controllable elements of climate include the
supervisory and organizational variables. Moreover, Muchinsky (1977) showed that certain
dimensions of organizational communication were highly related to both organizational climate
and job satisfaction. Likewise, Osmani et al. (2022) showed the positive and significant
influence of organizational climate on the working conditions and job satisfaction of employees
but also because they show that there is no significant difference in the perception of kosovar
workers or employees of the manufacturing sector and the service sector regarding the
organizational climate and also confirm the hypothesis that different organizational climate
variables have different importance in kosovar organizations. Based on it, this study develops the
following hypothesis:

H5: There is a positive a relationship of organizational climate with employee job satisfaction.

1.8 Research methodology

Research methodology is a way to systematically solve the research problem. It refers to the
various sequential steps that are to be adopted by a researcher during the course of studying the
problem with certain objectives. Research methods discussed in this chapter helps to guide the
research study providing different issues and aspects. It systematically solves the various
sequential steps to be adopted by the various authors in studying problems with the objective in
view. This chapter is to outline the nature and source of data, sample selection and classification
of variables, validity and reliability test, techniques and steps adopted in interpreting and
analyzing the data. It also focuses on how to collect required data, what the population and

33
sample are, and techniques to be adopted to analyze and interpret etc. The study examines the
influence of organizational climate on employees' job satisfaction in Nepalese commercial banks.

1.8.1 Research Design

This study is based upon descriptive research design and causal comparative research design to
deal with issues associated with the factors that influence of organizational climate on
employees' job satisfaction in Nepalese commercial banks. This study adopts the descriptive
research design as the study is based on facts finding and searching adequate information about
variables that causes stress among the undergraduate students. This study also uses correlation
research design to obtain description of the phenomenon, mainly the extent to which two
variables are related. This study establishes the direction, magnitude, and form of the observed
relationships between variables to indicate whether the variables are closely related, moderately
related or completely unrelated as hypothesized. In other words, the study attempts to establish
how strongly the two variables are positively or negatively correlated. Hence, the research
adopted in this study is of correlation type. This study is also based on causal comparative design
that helps to investigate the possible causes and effect relationship between various dependent
and independent variables.

Nature and Sources of the data

This study is based on the primary data. The primary data and information are collected on the
various aspects of employee’s job satisfaction, organizational climate, incentive, working
environment, employee relation, among the employees job satisfaction of Nepalese commercial
banks. This study collects data from structured questionnaires. The questionnaire contains the
questions on respondent’s profile, rank, type of questions and 5- point Likert scale questions.

1.8.3 Data collection instruments

To collect the data, a survey was carried out by distributing a set of structured questionnaires to
employees of Nepalese commercial banks. The primary sources of data were used to extract the
information from the students regarding the influence of organizational climate on employee job
satisfaction in Nepalese commercial banks. The data obtained from the questionnaire survey
were analyzed through SPSS. The instruments are descriptive statistics and inferential statistics.
The questionnaire is divided into three sections. The first section ‘A’ contains questions on the

34
demographic profile of the respondents. Likewise, Section ‘B’ contains Likert- type questions of
the independent variables and Section ‘C’ contains questions of the dependent variable.

1(strongly disagree) to 5 (strongly agree).

1.8.4 Population and Sample

This study is based on primary sources of data. The total population for this study is the people
who are the employee of Nepalese commercial. This study has been designed to measure the
influence of organizational climate on employee job satisfaction of Nepalese commercial banks.
When the population is unknown, then generally the formula for estimating the sample size can
be used by the formula given by Cochran (1963). The standard sample size formula is n = Z 2 p.
q/ e 2, where n= sample size, Z= standard error associated with the chosen level of confidence,
p=variability/ standard deviation, q=1-p, and e= acceptable sample error. It is normally used
0.05. Hence, the required sample size is 384. Total 384 questionnaires were dispersed to the
respondents and 220 questionnaires were collected, 96 out of which questionnaires were rejected
due to incompleteness of information and 124 used for the study. The study is based on 124
respondents. For data collection, one of the non-probabilistic techniques i.e., convenience has
been used. No restriction has been placed on the type of survey. Convenience sampling is one of
the types of non-probability based on who they think would be appropriate for the study. The
total number of observations for the study consists of 124 respondents’ of employee of Nepalese
commercial.
1.8.5 Method of the data analysis

This study has been designed to understand the opinions of the respondents regarding their Job
satisfaction level among the employees of Nepalese commercial banks. The data were collected
from employees of a nepalese commercial bank. Structured questionnaires were handed to each
sample to people online by using google drive and google forms. People were humbly requested
to provide the degree of agreement and disagreement in the five-point likert scale questions
ranging from 1(strongly disagree) to 5(strongly agree). A single follow-up was done
approximately two-weeks after the initial delivery. The questionnaire used in the study is
presented in the appendix.

The model specifications

35
The model estimated in this study assumes that employee job satisfaction is dependent variable
and the selected independent variables are compensation, working environment, employee
relation, supervisor support and organizational climate. Therefore, the model to be estimated in
this study is stated as follows;

EJS = β 0 + β 1OC + β 2 ER+ β 3 IC + β 4 WE + β 5 SS

Where,

Β 0 = Intercept of the dependent variable

Β 1, β 2, β 3, β 4, β 5 = Coefficient of the variables

EJS= Employee job satisfaction

OC= Organizational climate

ER= Employee relation

IC= Incentive

WE= Working environment

SS = Supervisor support

Supervisor support was measured using a 5-point Likert scale where the respondents were asked
to indicate the responses using 1 for strongly disagree and 5 for strongly agree. There are 5 items
and sample items include “My supervisor provides me regular training which helps for carrier
development ", “My supervisor praises me when I do good job.” and so on.

Working environment was measured using a 5-point Likert scale where the respondents were
asked to indicate the responses using 1 for strongly disagree and 5 for strongly agree. There are 5
items and sample items include “The office furniture is comfortable, flexible to adjust and easy
to reorganize”, " The working space is sufficient and great enough” and so on.

Organizational climate was measured using a 5-point Likert scale where the respondents were
asked to indicate the responses using 1 for strongly disagree and 5 for strongly agree. There are 5
items and sample items include “The overall atmosphere in my workplace is good”,
“Organization provides adequate opportunities to develop my “and so on.

36
Employee relation were measured using a 5-point Likert scale where the respondents were asked
to indicate the responses using 1 for strongly disagree and 5 for strongly agree. There are 5 items
and sample items include “I am satisfied with communication with other employees", “I feel I
can communicate with members from all level of this organization "and so on.

Incentive was measured using a 5-point Likert scale where the respondents were asked to
indicate the responses using 1 for strongly disagree and 5 for strongly agree. There are 5 items
and sample items include “I am provided with considerable paid sick leave ",” I am given
additional vocational time “and so on.

Employee job satisfaction was measured using a 5-point Likert scale where the respondents were
asked to indicate the responses using 1 for strongly disagree and 5 for strongly agree. There are 5
items and sample items include “I am satisfied with the promotional opportunities”, “The salary
is competitive to similar organization” and so on.

1.8.6 Validity and Reliability

Validity refers to the truthfulness of the findings. It determines whether the study truly measures
what it was intended or how truthful of the study results are. As it also signifies the degree to
which a measurement, argument, or concept accurately and legitimately aligns with its intended
purpose or the truth it claims to represent. It evaluates whether a tool or instrument effectively
measures what it’s meant to measure, ensuring the data collected is reliable and relevant. In
logic, an argument is considered valid when its conclusion logically follows from its premises,
making it sound and logically consistent. In other words, it refers to the accuracy of a measure
and measurement is valid when it measures and performs the functions that it supports. It is the
degree to which a measure accurately represents what it is supposed to measure. Across various
fields, validity is a critical aspect for determining accuracy, authenticity, and the adherence to
established standards and expectations within a given context.

Reliability, on the other hand, refers to the credibility of the test and it mainly tests
measurements results and measurement tools. It assesses whether something can be trusted to
perform consistently and accurately over time or under different conditions. A reliable system of
measurement should produce consistent results when applied repeatedly, by different individuals,
or in various situations. High reliability signifies a low probability of failure, which is essential

37
for ensuring the consistent performance of critical systems, products, or services, and ultimately,
building trust and confidence among users and stakeholders. Reliability essentially assesses
whether something can be trusted to perform consistently and accurately over time. To ensure
reliability, statistical analysis and testing are often employed to assess the consistency of results
and to identify and mitigate potential sources of error or variability.

In this study, Cronbach’s alpha is used to test the reliability of the primary data. It allows us to
measure the reliability of the different categories. It is a function of the number of test items and
the average inter correlation among the items. Cronbach’s alpha consists of estimates of how
much variation in scores of different variables is attributable to chance or random errors. As a
general rule, a coefficient greater than or equal to 0.7 is considered acceptable and is a good
indication of the construct's reliability. Table 1.4 shows the coefficient of Cronbach’s alpha.

Table 1.4: Coefficient of Cronbach’s alpha

Variables Total Item Cronbach’s alpha

Employee job satisfaction 5 0.727
Supervisor support 5 0.737
Employee relation 5 0.689
Incentive 5 0.600
Organzational climate 5 0.637
Working environment 5 0.734
Overall 30 0.928
1.9 Limitation of the study

Despite of the continuous effort made for arriving at meaningful conclusion, the study suffers
from the following major limitations.

1. The data were collected using questionnaires.

2. This study is based on respondents from employees of Nepalese commercial banks.
3. Total number of observations is only 124. Smaller sample size might reduce reliability
and validity of study.
4. The study is based on five independent variables only which were considered as major
ones as per the literature review.
5. Only limited statistical and financial tools have been used in the study.
6. The study is based on the assumptions of linear regression between the dependent and
independent variables. The study excluded the non- linear regression assumptions.

38
 7. Some of the findings of this study are not consistent with earlier studies. Therefore, it is
Worthwhile to note that nature of data and specification of the models may themselves be
responsible for the difference in result.

1.10 Organization of the study

The study has been organized into a total of three chapters. The first chapter is the introduction
which covers the background of the study, statement of the problem, objective of the study,
significance, literature review, research hypothesis and operational definition and assumptions.
This is followed by chapter two which contains the data analysis and major findings and last
chapter that is chapter three offers the summary and conclusion derived from the study. This
chapter also includes a separate section for recommendations based on the major findings of the
study.

39
 Chapter II

Data analysis and major findings

This chapter provides systematic presentation, interpretation and analysis of primary data to deal
with various issues associated with influence of organizational climate on employee’s job
satisfaction in Nepalese commercial banks. The purpose of this chapter is to analyze and
interprets the data collected during the study and present the results of the questionnaire survey.
This chapter is divided into three sections. The first chapter deals with the presentation and
analysis of primary data. The second section covers the analysis of regression model including
correlation analysis. The third section of this chapter deals with concluding remarks associated
on the basis of results derived from the primary data.

2.1 Presentation and analysis of data

This study is primarily based on primary data analysis which mainly deals with qualitative
aspects in terms of employee relation, supervisory support, organization climate, incentives and
working environment in Nepalese commercial bank. This section also reports the results of
questionnaire survey conducted. Questionnaire survey was designed to understand the views of
the respondents regarding the effect of workplace environment on employee’s performance in
Nepalese commercial Banks. A questionnaire including Likert scale questions was provided. The
respondents profile along with their personal characteristics and result of the survey are
presented in the following sections.

2.1.1 Profile of respondents

The respondent’s profile along with their characteristics and results of the survey are presented in
the section below. The respondent’s profile reveals the personal characteristics of respondents
combined on the basis of different personal characteristics such as: gender, age, academic
qualification and work experience. Demographic characteristic plays a significant role in
understanding the influence of organizational climate on job satisfaction in Nepalese commercial
banks. This section therefore describes the demographic characteristics of the respondents on the
influence of organizational climate on job satisfaction in Nepalese commercial banks. The
demographic characteristics of the respondents are presented in Table 2.1.

40
 Table 2.1: Demographic characteristics of respondents

There were three demographic categories that the respondents were asked to complete in order to fill out the
demographic profile of them. These were gender, age, academic qualification, in their academic performance. The
distribution of collected sample based on these demographic profiles is presented as follows. The characteristics of
the respondents influence the results.)
Respondent’s details No. of respondents Percentage (%)
Gender
Male 71 57.3
Female 53 42.7
Total 124 100
Age (in years)
Under 25 26 21.0
26-30 44 35.5
31-40 41 33.1
Above 41 13 10.5
Total 124 100
Academic qualification
Intermediate 42 33.9
Bachelor degree 10 8.1
Master degree 32 25.8
M. Phil/ Ph. D Degree 40 32.3
Total 124 100
Designation
Assistant level 20 16.1
Officer level 36 29.0
Manager level 29 23.4
Executive level 39 31.5
Total 124 100
Work experience
Less than 2 years 22 17.7
2-5 years 46 37.1
5-10 years 40 32.3
Above 10 years 16 12.9
Total 124 100
Source: Responses on Survey Likert Questionnaire
The respondent profile along with their characteristics and results of the survey are presented in
the section below. The general information of the respondents is evaluated in five major
parameters such as gender, age, academic qualification, designation and work experience. Table
2.1 reports the profile of respondents. Table 2.1 shows the personal profile of the respondents.
Out of 124 respondents surveyed, the majority of the respondents (53.40 percent) are males
followed by (46.60 percent) of the females. The age of the respondents is divided into four
groups. Majority of the respondents (43 percent) are in the age group of under 25 years while
(25.1percent) of respondents are in the age group between 25 to 35 years. Besides, (24.6 percent)

41
of the respondents are in the age group between 35-45 years while (7.3 percent) of respondents
are in the age group above 45. On academic qualification, the majority of the respondents (21.8
percent) have intermediate and below, (39.1 percent) have a Bachelor Degree while
(26.8percent) have master degree and rest (12.3 percent) of the respondents have a M. Phil/Ph.D.
degree. On designation, the majority of the respondents (31.5 percent) have executive level,
(29.0 percent) have a officer level while (23.4 percent) have manager level and rest (16.1
percent) of the respondents have assistant level. On work experience, the majority of the
respondents (37.1 percent) have experience of 2 to 5 yrs, (32.3 percent) have experience of 5-10
yrs, while (17.7 percent) have experience of less than 2 yrs and rest (12.9 percent) of the
respondents have experience of above 10 yrs.

Gender

Gender is an important variable in expressing and giving the responses about the problem.
Hence, the variable gender was investigated for this study. Data related to gender of the
respondents is presented in Figure 2.1.

Figure 2.2: Classification of respondents by gender

Male
42.7%
Female
57.3%

The above figure shows that the majority of the respondents (42.7 percent) are the female
followed by (57. 3 percent) are the male.

Age

42
Age of the respondents is one of the most important characteristics in understanding the views
about the particular problems. The age of the respondents is categorized into four groups i.e.,
under 25 years, 25 to 35 years, 35 to 45 years and above 45 years. The classification of
respondents by age in terms of percentage is shown in Figure 2.2.

Figure 2.3: Classification of respondents by age

40

35

30

25

20

15

10

0
under 25 26-30 31-40 above 41

Figure 2.3 shows that the majority of the respondents are in the age group of 26-30 years (35.5
percent) followed by in the age group of 31 to 45 years (33.1 percent), under 25 years (21.0
percent) and above 41 years (10.5 percent).

Academic qualification

Education is one of the most important characteristics that might affect the person’s attitudes and
the way of looking and understanding any particular social phenomena therefore it becomes
imperative to know the educational background of the respondents. The classification of
respondents by academic qualification is presented in Figure 2.3.

Figure 2.4: Classification of respondent’s academic performance

43
 40
35
30
25
20
15
10
5
0
Intermediate Bachelor Masters M.Phil/Phd

Figure 2.4 shows that majority of the respondents (33.9 percent) are Intermediate degree holders
followed by M. Phil/Ph. D Degree (32.3 percent), Master’s degree (25.8 percent) and Bachelor
degree (8.1 percent).

Work experience

Work experience is any experience that person gains while working in a specific field or
occupation. The work experience of the respondents is categorized into four levels i.e., less than
2 years, 2 to 5 years, 5 to 10 years and Above 10 years.

Figure 2.5: Work experience of respondents

40
35
30
25
20
15
10
5
0
Less than 2 years 2-5 years 5-10 years above 10 years

Figure 2.5 shows that majority of respondents (37.1 percent) have work experiences of 2-5 years
followed by 5-10 years (32.3 percent), less than 2 years (17.7 percent), and more than 10 years of
work experience (12.9 percent).

Designation

44
Designation is one of the most important characteristics in understanding the views about the
particular problems. The designation of the respondents is categorized into four levels i.e.,
assistant level, officer level, manager level and executive level is shown in Figure 2.5.

Figure 2.6: Designation of respondents

35

30

25

20

15

10

0
Assistant Level Manager Level Officer Level Executive Level

Figure 2.6 shows that the majority of the respondents (31.5 percent) are in executive level
followed by officer level (29 percent), (23.4 percent) manager level and (16.1 percent) assistant
level.

2.1.2 Employees perception on employee relation, supervisory support, organizational

climate, incentives and work environment
This section provides the information on the employee's perception on the influence of
organizational climate on employees' job satisfaction in Nepalese commercial banks. The
respondents were job satisfaction in Nepalese commercial banks (organizational climate, work
environment, incentives, employee relation and supervisory support).

Respondents’ perception on supervisory support

Table 2.2 presents the opinions of respondents regarding the supervisory support on employee’s
job satisfaction.

Table 2.2: Respondents’ perception on supervisory support

(This table shows the percentage, frequency and mean of the respondents’ perception regarding
supervisory support in Nepalese commercial banks. This statement is measured in a five-point Likert
scales: 1 as strongly agree, 2 as agree, 3 as neutral, 4 as disagree and 5 as strongly disagree.)

45
 Stro
ngly
Strongly Agre Neutra disa Mea
Statements agree e l Disagree gree N
F 13 44 27 7 33 124
26.6 100.0
My supervisor provides me regular % 10.48 35.48 21.77 5.65 1
training which helps for carrier A
development. % 45.97 21.77 32.26 2.98
F 12 47 35 23 7 124
100.0
% 9.68 37.90 28.23 18.55 5.65
My supervisor praises me when I A
do good job. % 47.58 28.23 24.19 3.27
F 8 56 41 10 9 124
100.0
% 6.45 45.16 33.06 8.06 7.26
My supervisor constantly helps me A
to improve myself. % 51.61 33.06 15.32 3.35
F 10 73 27 11 3 124
100.0
% 8.06 58.87 21.77 8.87 2.42
My supervisor admires workers A
opinion. % 66.94 21.77 11.29 3.61
F 29 55 21 8 11 124
100.0
% 23.39 44.35 16.94 6.45 8.87
I feel able to discuss my problems A
with my supervisor openly. % 67.74 16.94 15.32 3.67
Weighted average mean 3.38

Table 2.2 reveals that the majority of respondents (45.97 percent) agreed that their supervisor
provides me regular training which helps for carrier development. Some respondents (32.26
percent) disagreed that their supervisor praises them when they do good job. However, the rest of
the respondents (21.77 percent) were neutral on the statement.

The table also shows that the majority of the respondents (47.58 percent) agreed that their
supervisor praises me when I do good job. Some respondents (24.19 percent) disagreed that their
supervisor praises them when they do good job. However, the rest of the respondents (28.23
percent) were neutral to the statement.

Regarding the statement “My supervisor constantly helps me to improve myself”, the majority of
respondents (51.61 percent) agreed that their supervisor constantly helps them to improve them
self. Some respondent (15.32 percent) disagreed that that they feel able to discuss their problems

46
 with supervisor openly. However, the rest of the respondents (33.06 percent) were neutral on the
statement.

Likewise, regarding the statement “My supervisor admires workers opinion”, the majority of the
respondents (66.94 percent) agreed that their supervisors discuss employers’ problems. Some
respondents (11.29 percent) disagreed that their supervisors discuss employer’s problems.
However, the rest of the respondents (21.77 percent) were neutral about the statement.

Similarly, regarding the statement “I feel able to discuss my problems with my supervisor
openly”, the majority of the respondents (66.94 percent) agreed that their supervisors discuss
employer’s problems. Some respondents (11.29 percent) disagreed that their supervisors discuss
employer’s problems. However, the rest of the respondents (21.77 percent) were neutral about
the statement.

The mean of the supervisor support ranges from minimum value of 2.98 to the maximum value
of 3.67. Among them, the statement regarding, “I feel able to discuss my problems with my
supervisor openly” has the maximum mean value of 3.67. However, the statement regarding,
“My supervisor provides me regular training which helps for carrier development” has lowest
mean value of 2.98.

The weighted average mean scale for supervisory support is 3.38. It indicates that the
supervisory support plays important role on the employee’s job satisfaction.

Respondents’ perception on organizational climate

Table 2.4 presents the opinions of respondents regarding the influence of organizational climate
on employees’ job satisfaction.

Table 2.4: Respondents’ perception on Organizational climate

(This table shows the percentage, frequency and mean of the respondents’ perception regarding Organizational
climate in Nepalese commercial banks. This statement is measured in a five-point Likert scales: 1 as strongly
agree, 2 as agree, 3 as neutral, 4 as disagree and 5 as strongly disagree.)

Strongly
Statements Strongly agree Agree Neutral Disagree disagree N Mean
The overall F 10 64 24 5 21 124 3.30
atmosphere in % 8.06 51.61 19.35 4.03 16.94 100.00

47
 my workplace A% 59.68 19.35 20.97
is good.
Organization F 14 68 24 13 5 124
provides % 11.29 54.84 19.35 10.48 4.03 100.00
adequate
opportunities 3.59
to develop my
skills. A% 66.13 19.35 14.52
My F 15 64 31 9 5 124
management % 12.10 51.61 25.00 7.26 4.03 100.00
keeps 3.60
communicate
regularly A% 63.71 25.00 11.29
I have easy F 15 66 30 5 8 124 3.60
access to % 12.10 53.23 24.19 4.03 6.45 100.00
policies. A% 65.32 24.19 10.48
My F 26 63 23 4 8 124
management % 20.97 50.81 18.55 3.23 6.45 100.00
takes
employee
advice while 3.77
making any
decision. A% 71.77 18.55 9.68
Weighted average mean 3.57

The table also shows that the majority of the respondents (71.77 percent) agreed that their
management takes employee advice while making any decision. Some respondents (9.68 percent)
disagreed that that their management takes employee advice while making any decision. However, the
rest of the respondents (18.55 percent) were neutral to the statement.

Regarding the statement “The overall atmosphere in my workplace is good”, the majority of
respondents (59.68 percent) agreed that the organizational climate has a good atmosphere. Some
respondent (20.97 percent) disagreed that the organizational climate has a good atmosphere. However,
the rest of the respondents (19.35 percent) were neutral on the statement.

Likewise, regarding the statement “Organization provides adequate opportunities to develop my

skills”, the majority of the respondents (66.13 percent) agreed that the organization provides adequate
opportunities to develop my skills. Some respondents (14.52 percent) disagreed that the organization
provides adequate opportunities to develop my skills. However, some respondents (19.35 percent)
were neutral about the statement.

Similarly, the majority of the respondents (63.71 percent) agreed that the organization have easy

48
access to. Some respondents (10.48 percent) disagreed that the organization has easy access. However,
rests of the respondents (24.19 percent) were neutral on the statement.

The mean of the organizational climate ranges from minimum value of 3.30 to the maximum value of
3.77. Among them, the statement regarding, “My management takes employee advice while making
any decision” has the maximum mean value of 3.77. However, the statement regarding, “The overall
atmosphere in my workplace is good” has lowest mean value of 3.30.

The weighted average mean scale for organization climate is 3.57. It indicates that organization
culture plays an important role on the employees’ job satisfaction. It means that owners/managers
agree that the organization climate affect the employee’s job satisfaction.

Respondents’ perception on incentives

Table 2.5 presents the opinions of respondents regarding on incentives on employee’s job satisfaction.

Table 2.5: Respondents’ perception on incentives

(This table shows the percentage, frequency and mean of the respondents’ perception regarding incentives in
Nepalese commercial banks. This statement is measured in a five-point Likert scales: 1 as strongly agree, 2 as
agree, 3 as neutral, 4 as disagree and 5 as strongly disagree.)
Statements Strongly agree Agree Neutral Disagree Strongly disagree N Mean
I am F 9 57 27 15 16 124
provided with % 7.26 45.97 21.77 12.10 12.90 100.00
considerable 3.23
paid sick
leave. A% 53.23 21.77 25.00
I am given F 5 64 34 14 7 124
additional 3.37
% 4.03 51.61 27.42 11.29 5.65 100.00
vocational
time. A% 55.65 27.42 16.94
I am given F 19 58 39 2 6 124
holidays, if % 3.66
15.32 46.77 31.45 1.61 4.84 100.00
there is death
in my family. A% 62.10 31.45 6.45
I am paid all F 15 67 26 11 5 124
the unused % 12.10 54.03 20.97 8.87 4.03 100.00
sick, personal
leave on the 3.61
end of the
year. A% 66.13 20.97 12.90
I am F 24 53 35 5 7 124
provided with % 3.66
19.35 42.74 28.23 4.03 5.65 100.00
health
insurance. A% 62.10 28.23 9.68
Weighted average mean 3.51

49
Table 2.5 reveals that the majority of respondents (62.10percent) agreed that they are provided with
health insurance which motivates them to work. Some respondents (9.68 percent) disagreed that they
are provided with health insurance which motivates them to work. However, the rest of the
respondents (28.23 percent) were neutral on the statement.

The table also shows that the majority of the respondents (66.13 percent) agreed that they are paid all
the unused sick, personal leave on the end of the year. Some respondents (12.90 percent) disagreed
that they are paid all the unused sick, personal leave on the end of the year. However, the rest of the
respondents (20.97 percent) were neutral to the statement.

Regarding the statement “I am given holidays, if there is death in my family”, the majority of
respondents (62.10 percent) agreed that they get holidays, if there is death in my family. Some
respondent (10.6 percent) disagreed they get holidays, if there is death in my family. However, the rest
of the respondents (6.45 percent) were neutral on the statement.

Likewise, regarding the statement “I am given additional vocational time”, the majority of the
respondents (55.65 percent) agreed that their company gives additional vocational time. Some
respondents (16.94 percent) disagreed that their company gives additional vocational time. However,
some respondents (27.42 percent) were neutral about the statement.

Similarly, the majority of the respondents (53.23 percent) agreed they are provided with considerable
paid sick leave. Some respondents (21.77 percent) disagreed that they are provided with considerable
paid sick leave. However, rests of the respondents (25 percent) were neutral on the statement.

The mean of the incentive ranges from minimum value of 3.23 to the maximum value of 3.66. Among
them, the statement regarding, “I am provided with health insurance” and “I am given holidays, if
there is death in my family” has the maximum mean value of 3.66. However, the statement regarding,
“I am provided with considerable paid sick leave” has lowest mean value of 3.23.

The weighted average mean scale for incentive is 3.51. It indicates that the incentives play an
important role on the employee’s job satisfaction. It means that owners/managers agree that the
incentives influence the employee’s job satisfaction.

Respondents’ perception on working environment

Table 2.6 presents the opinions of respondents regarding on working environment on employee’s job

50
 satisfaction.

Table 2.6: Respondents’ perception on working environment

(This table shows the percentage, frequency and mean of the respondents’ perception regarding working
environment in Nepalese commercial banks. This statement is measured in a five-point Likert scales: 1 as
strongly agree, 2 as agree, 3 as neutral, 4 as disagree and 5 as strongly disagree.)
Statements Strongly agree Agree Neutral Disagree Strongly disagree N Mean
The office F 15 62 18 8 21 124
furniture is
% 12.10 50.00 14.52 6.45 16.94 100.00
comfortable, 3.34
flexible to adjust
and easy to
reorganize. A% 62.10 14.52 23.39
F 10 64 26 16 8 124 3.42
The working space
% 8.06 51.61 20.97 12.90 6.45 100.00
is sufficient and
great enough. A% 59.68 20.97 19.35
F 11 62 39 5 7 124 3.52
The office I
% 8.87 50.00 31.45 4.03 5.65 100.00
operate from is
well illuminated. A% 58.87 31.45 9.68
My organization F 13 67 30 6 8 124 3.57
has safe working
% 10.48 54.03 24.19 4.84 6.45 100.00
environment
offers. A% 64.52 24.19 11.29
F 21 62 25 7 9 124 3.64
There is easy way
% 16.94 50.00 20.16 5.65 7.26 100.00
of reporting
system. A% 66.94 20.16 12.90
Weighted average mean 3.50

Table 2.6 reveals that the majority of respondents (66.94 percent) agreed that there is easy way of
reporting system. Some respondents (12.90 percent) disagreed that There is easy way of reporting
system. However, the rest of the respondents (20.16 percent) were neutral on the statement.

The table also shows that the majority of the respondents (64.52 percent) agreed that their
organization has safe working environment. Some respondents (11.29 percent) disagreed that their
organization has safe working environment. However, the rest of the respondents (24.19 percent)
were neutral to the statement.

Regarding the statement “The office furniture is comfortable, flexible to adjust, easy to rearrange
and reorganize”, the majority of respondents (62.10 percent) agreed that the office furniture is
comfortable, flexible to adjust, easy to rearrange and reorganize. Some respondent (23.39 percent)
disagreed that the office furniture is comfortable, flexible to adjust, easy to rearrange and

51
 reorganize. However, the rest of the respondents (14.52 percent) were neutral on the statement.

Likewise, regarding the statement “The working space is sufficient and great enough”, the
majority of the respondents (59.68 percent) agreed that the working space is sufficient and great
enough. Some respondents (19.35 percent) disagreed that the working space is sufficient and great
enough. However, some respondents (20.97 percent) were neutral about the statement.

The mean of the working environment ranges from minimum value of 3.34 to the maximum value
of 3.64. Among them, the statement regarding, “There is easy way of reporting system.” has
maximum mean value of 3.64. However, the statement regarding, “The office furniture is
comfortable, flexible to adjust and easy to reorganize.” has lowest mean value of 3.34

The weighted average mean scale for working environment is 3.50. It indicates that working
environment plays an important role on the job satisfaction of employee’s.

Table 2.7: Respondents’ employee relation

(This table shows the percentage, frequency and mean of the respondents’ perception regarding employee
relation in Nepalese commercial banks. This statement is measured in a five-point Likert scales: 1 as strongly
agree, 2 as agree, 3 as neutral, 4 as disagree and 5 as strongly disagree.)
Strongl
Strongl Disagre y Mea
Statements y agree Agree Neutral e disagree N n
F 11 56 27 8 22 124
%
I am satisfied with communication 8.87 45.16 21.77 6.45 17.74 100
with other employees. A% 54.03 21.77 24.19 3.21
I feel I can F 6 67 33 11 7 124
communicate with % 4.84 54.03 26.61 8.87 5.65 100
members from all level
of this organization A% 58.87 26.61 14.52 3.44
My work assignments F 10 61 43 5 5 124
are always clearly % 8.06 49.19 34.68 4.03 4.03 100
explained to me. A% 57.26 34.68 8.06 3.53
F 13 70 27 6 8 124
My co-workers and I % 10.48 56.45 21.77 4.84 6.45 100
work well together. A% 66.94 21.77 11.29 3.60
F 18 61 28 6 11 124
My organization 100.0
organizes different % 14.52 49.19 22.58 4.84 8.87 0
programs to socialize A 22.5
with employees. % 63.71 8 13.71 3.56
Weighted average mean 3.47

52
The table also shows that the majority of the respondents (54.03 percent) agreed to the statement “I am
satisfied with communication with other employees”. Some respondents (24.19 percent) disagreed that
they are satisfied with communication with other employees. However, the rest of the respondents
(21.77 percent) were neutral to the statement.

The table also shows that the majority of the respondents (63.71 percent) agreed that their organization
organizes different programs to socialize with employees extracurricular activities. Some respondents
(13.71 percent) disagreed that their organization organizes different programs to socialize with
employees extracurricular activities. However, the rest of the respondents (22.58 percent) were neutral
to the statement.

Regarding the statement, “I feel I can communicate with members from all level of this organization”
the majority of the respondent (58.87 percent) agreed. Some respondents (14.52 percent) disagreed
that they can communicate with all level members. However, rest of the respondents (26.61 percent)
was neutral on the statement.

Likewise, regarding the statement “My work assignments are always clearly explained to me.” the

53
majority of the respondents (57.26 percent) agreed. Some respondents (8.06 percent) disagreed that
their assignment are explained clearly. However, the rest of the respondents (34.68 percent) were
neutral about the statement.

Similarly, the majority of the respondents (66.94 percent) agreed that their co-workers work well
together. Some respondents (11.29 percent) disagreed that their co-workers work well together.
However, rests of the respondents (21.77 percent) were neutral on the statement.

The mean of the ranges from minimum value of 3.21 to the maximum value of 3.60. Among them, the
statement regarding, “My co-workers and I work well together’’ has maximum mean value of 3.60.
However, the statement regarding, “I am satisfied with communication with other employees” has
lowest mean value of 3.21.

The weighted average mean scale for is employee relation 3.47. It indicates that employee relation
plays important role in employee job satisfaction in Nepalese commercial banks.

Table 2.8: Respondents’ perception on employees job satisfaction

(This table shows the percentage, frequency and mean of the respondents’ perception regarding employee skills
in Nepalese commercial banks. This statement is measured in a five-point Likert scales: 1 as strongly agree, 2
as agree, 3 as neutral, 4 as disagree and 5 as strongly disagree.)
Strongly Strongly
ag Agre Neutra disa Mea
Statements ree Disagree gree N
F 6 57 31 9 21 124
100.0
I am satisfied with the % 4.84 45.97 25.00 7.26 16.94 3.15
promotion opportunities A
by the bank. % 50.81 25.00 24.19
F 8 63 26 21 6 124
100.0
The salary is % 6.45 50.81 20.97 16.94 4.84 3.37
competitive to similar A
organization. % 57.26 20.97 21.77
F 10 57 33 15 9 124
100.0
I am satisfied by the % 8.06 45.97 26.61 12.10 7.26 3.35
amount of training I A
receive at my job. % 54.03 26.61 19.35
F 8 69 29 9 9 124
100.0
I am satisfied by the % 6.45 55.65 23.39 7.26 7.26 3.47
working condition of A
my organization. % 62.10 23.39 14.52
I am satisfied with the F 13 63 29 13 6 124 3.52

54
 100.0
opportunities for % 10.48 50.81 23.39 10.48 4.84
growth within A
organization. % 61.29 23.39 15.32
Weighted average mean 3.37

Regarding the statement “I am satisfied with the promotion opportunities by the bank.” the majority of
the respondents (50.81 percent) agreed that there are promotion opportunities by the bank.. However,
the rest of the respondents (25 percent) were neutral about the statement.

Similarly, the majority of the respondents (57.26 percent) agreed that the salary is competitive to
similar organization. Some respondents (21.77 percent) disagreed that the salary is competitive to
similar organization. However, rest of the respondents (20.97 percent) was neutral on the statement.

Regarding the statement, “I am satisfied by the amount of training I receive at my job” the majority of
the respondent (54.03 percent) agreed. Some respondents (19.35 percent) disagreed that they are
satisfied by the amount if training they receive. However, rest of the respondents (26.61 percent) was
neutral on the statement.

Likewise, the statement, “I am satisfied by the working condition of my organization.” the majority of
the respondent (62.10 percent) agreed. Some respondents (14.52 percent) disagreed that they are
satisfied by the working condition of their organization. However, rest of the respondents (23.39
percent) was neutral on the statement.

Similarly, the majority of the respondents (61.29 percent) agreed that I am satisfied with the
opportunities for growth within organization. Some respondents (15.32 percent) disagreed that they
are satisfied with the opportunities for growth within organization. However, rests of the respondents
(23.391 percent) were neutral on the statement.

The mean of the employee’s job satisfaction ranges from minimum value of 3.15 to the maximum
value of 3.52. Among the statement regarding, “I am satisfied with the opportunities for growth within
organization.” has maximum mean value of 3.52. However, the statement regarding, “I am satisfied
with the promotion opportunities by the bank” has lowest mean value of 3.15.

The weighted average mean scale for employee’s performance is 3.37. It indicates that employee’s
job satisfaction plays important role in influence of organizational climate in Nepalese commercial
bank in Nepal. It means that owners/managers agree that the employee’s satisfaction influence the

55
organizational climate.

2.2 Correlation Analysis

Correlation analysis is a term refers to the strength of a relationship between two variables. A strong
or high correlation means that two or more variables have strong relationship with each other, while a
weak or low correlation means that the variables are hardly related. This section of the study presents
the results and discussions of the correlation analysis. The correlation measures the strength of the
linear relationship between variables. The strength of linear association between two numerical
variables in a sample of population is determined by the correlation coefficient.

Table 2.9 shows the computation of Kendall’s Tau correlation coefficients matrix of the influence of
organizational climate on employee job satisfaction in Nepalese commercial bank.

Table 2.9: Kendall’s Tau correlation coefficient matrix

(This table presents Kendall’s Tau coefficients between dependent and independent variables. The correlation
coefficients are based on 124 observations. The dependent variable is EJS (Employee’s job satisfaction). The
independent variables are ER (Employee relation), SS (supervisory support), OC (organizational climate), IC
(incentives), WE (work environment).
Variables Mean S.D. EJS ER SS OC IC WE
EJS 3.371 0.719 1
ER 3.377 0.769 0.492** 1
SS 3.498 0.737 0.424** 0.557**
1
OC 3.572 0.657 0.478** 0.499** 0.543**
1
IC 3.466 0.685 0.465** 0.482** 0.468** 0.640** 1
WE 3.506 0.622 0.537** 0.440** 0.482** 0.526** 0.474**
1

Notes: The asterisk signs (**) and (*) indicate that the results are significant at one percent and five percent levels,
respectively.
Table 2.9 shows that employee relation is positively correlated to employees' job satisfaction,
which indicates that better the employee relation higher would be the employees' job satisfaction
in Nepalese commercial bank. Likewise, supervisory support is positively correlated to employees'
job satisfaction indicating that better the supervisory support, higher would be the employees' job
satisfaction. Similarly, organizational climate has positive correlation with employees' job
satisfaction, which means that better organizational climate, higher will be the employees' job
satisfaction. The result also shows that incentive is positively correlated to employee job

56
 satisfaction, which indicates that higher the incentives, higher will be employees' job satisfaction.
Likewise, work environment is positively correlated to employees' job satisfaction which indicates
that better work environment leads to the higher employees' job satisfaction.

2.2 Regression analysis

Regression analysis is a statistical process for estimating the relationships among variables. The
regression results were estimated where this section deals with regression results from various
specifications of the models to examine the estimated relationship of employees' job satisfaction
with organizational climate, supervisory support, working environment, incentives and employee
relation.

Table 2.10: Estimated regression result employees' job satisfaction with organizational climate,
supervisory support, working environment, incentives and employee relation in Nepalese
commercial bank in Nepal
The results are based on 124 observations using linear regression model. The model is EJS = β 0 + β1OC +
β2 ER+ β3 IC + β4 WE + β5 SS+ ε, where the dependent variable is (EJS) Employees job satisfaction. The
independent variables are ER (employee relation), SS (supervisory support), OC (Organizational climate),
IC (incentives), WE (Working environment).
Notes:
i.
i. Regression coefficients of Adj. R_bar2 SEE F-value
i.Model Intercept
i. ER SS OC IC WE
i. 1.810 0.565
1 0.345 0.5122 73.605
i. (6.888) ** (8.579)**
i.2 2.180 0.469
0.318 0.5224 65.470
(9.343)** (8.091)**
i. 2.682 0.346
i.3 (8.808)** (4.499)**
0.122 0.5928 20.240
i. 2.405 0.415
4 0.161 0.5796 27.467
i. (7.649)** (5.241)**
i.5 3.421 0.161
0.015 0.6281 3.046
(9.646)** (1.745)
i. 1.692 0.360 0.234
i.6 (6.505)** (3.657)** (2.758)**
0.375 0.5003 42.381
i. 1.729 0.370
0.238
0.024
i.7 (2.757)** 0.371 0.5019 28.093
(5.982)** (3.541) ** (0.295)
i. 1.734 0.370 0.240 0.022 0.006
i.8 (5.689)** (3.518)** (2.604)** (0.242) (0.053)
0.366 0.5038 20.915
i. 1.629
0.366 0.238 0.017 0.009 0.033
i.9 (4.166)** 0.362 0.5054 16.667
(3.450)** (2.575)** (0.188) (0.088) (0.429)
i.
Figures in parenthesis are t-values
ii. The asterisk signs (**) and (*) indicate that the results are significant at one percent and five percent level
respectively.

57
 iii Employee job satisfaction is the dependent variable

The regression result shows that the beta coefficients for employee relation are positive with
employees' job satisfaction. It indicates that employee relation has a positive impact on employee’s
job satisfaction. This finding is consistent with the findings of Khatri and Behl (2013). Similarly, the
beta coefficients for supervisory support are positive with employee’s job satisfaction. It indicates that
supervisory support has a positive impact on employees' job satisfaction. This finding is similar with
the findings of Chiaburu and Takleab (2005). Similarly, the beta coefficients for incentives are
positive with employees' job satisfaction .It indicates that incentive has a positive impact on
employees' job satisfaction. This finding is consistent with the findings of Petrescu and Simon (2008).
Likewise, the beta coefficient for organizational climate is positive with employee job satisfaction. It
indicates organizational climate has a positive influence on the employee job satisfaction. This finding
is consistent with the findings of Rahimic (2013). In addition, the beta coefficients for working
environment are positive with employee job satisfaction. It indicates that working environment has a
positive impact on the employee job satisfaction. This finding is consistent with the findings of MS
Ashraf et al. (2013).

2.3 Major findings

Based on the analysis of data, the major findings of the study are summarized as follows:

1. Out of 124 respondents surveyed, the majority of the respondents (57.3percent) are the males
followed by females (42.7 percent)..
2. The majority of the respondents are in the age group of 26-30 years (35.5 percent) followed by
in the age group of 31 to 45 years (33.1 percent), under 25 years (21.0 percent) and above 41
years (10.5 percent).
3. On academic qualification, majority of the respondents (33.9 percent) are Intermediate degree
holders followed by M. Phil/Ph. D Degree (32.3 percent), Masters degree (25.8 percent) and
Bachelor degree (8.1 percent).
4. Regarding work experience of the respondents, majority of respondents (37.1 percent) have
work experiences of 2-5 years followed by 5-10 years (32.3 percent), less than 2 years (17.7
percent), and more than 10 years of work experience (12.9 percent).
5. Regarding work experience of the respondents the designation of respondents (that the
majority of the respondents (31.5 percent) are in executive level followed by officer level (29

58
 percent), (23.4 percent) manager level and (16.1 percent) assistant level.

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 Appendices

Dear respondents

I am pleased to inform you that I am undertaking an Undergraduate project on the “Influence of

organizational climate on the employee’s job satisfaction in Nepalese commercial banks” to
meet the partial fulfilment of the requirement for the Bachelor’s Degree in Business
Administration (BBA) from Uniglobe College, Pokhara University. The major objective of the
study in Nepal. I would also like to request you to provide some information regarding the
subject matter stated below. 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. Your kind
cooperation will be highly appreciated.

Thanking you.

Yours Sincerely,

Archana Mishra

BBA 5th semester

Uniglobe College, Kathmandu, Nepal

Section1: Respondent Information

Please put tick (√) mark on the appropriate option.

1. Please select your gender

□ Male □ Female

2. Age (in years)

□ Under 25 □ 25-35 □ 35-45 □ above 45

3. Academic qualification

□ Intermediate and below □ Bachelor Degree

□ Master Degree □ M. Phil/ Ph. D Degree

4. Designation

66
□Assistant level □ Officer level

□Manager level □ Executive level

5. Work experience

□Less than 2 years □2-5 years

□5-10 years □Above 10 years

Section 2: Opinion Statement

Please tick mark (√) in one of the best Option that best matches your opinion (1=Strongly
Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5= Strongly Agree).

Independent variable

1. Supervisior support

Statement Strongly
agre Agree Neutral Disagree Strongly
e disa
gree
a My supervisor provides me
regular training which helps
for carrer development.

b My supervisior praises me
when I do good job.
c I feel able to discuss my
problems with my
supervisior openly.
d My supervisior admires
workers opinion.
e My supervisior constantly
helps me to improve myself.

2. Working Environment

Statement Strongly
agre Agree Neutral Disagree Strongly
e disa
gree
a The office furniture is

67
 comfortable, flexible to
adjust and easy to
reorganize.
b The working space is
sufficient and great
enough.
c The office I operate from
is well illuminated.
d My organization has safe
working environment
offers.
e There is easy way of
repoting system.

3. Organizational Climate

Statement Strongly
agre Agree Neutral Disagree Strongly
e disa
gree
a The overall
atmosphere in
my workplace
is good.
b Organization
provides
adequate
oppurtunities
to develop my
skills.
c My
management
keeps
communicate
regularly
d I have easy
acess to
policies.
e My
management
takes
employee
advice while
making any
decision.

4. Employees relation

68
 Statement Strongly
agre Agree Neutral Disagree Strongly
e disa
gree
a I am satisfied with
communication with
other employees.
b I feel I can
communicate with
members from all level
of this organization.
c My work assignments
are always clearly
explained to me.
d My co-workers and I
work well together.
e
My organization
organizes different
programs to socialize
with employees.

5. Incentive

Statement Strongly
agre Agree Neutral Disagree Strongly
e disa
gree
a I am provided with
considerable paid sick
leave.

b I am given additional
vocational time.
c I am given holidays, if
there is death in my family.
d I am paid all the unused
sick,personal leave on the
end of the year.
e I am provided with health
insurance.

Dependent variable

6. Employee job satisfaction

Statement Strongly

69
 agre Agree Neutral Disagree Strongly
e disa
gree

a I am satisfied with the

promotion .oppurtunitie
s by the bank.
b The salary is
competitive to similar
organization.
c I am satisfied by the
amount of training I
receive at my job.
d I am satisfied by the
working condition of
my organization.
e I am satisfied with the
opportunities for growth
within organization.

70