EMPLOYEES SATISFACTION IN GLOBAL IME BANK LTD

A Research Proposal

Submitted By
Deepika Ghimire
T.U. Registration Number : 7-2-0424-0019
Nepal Commerce Campus
Group : Finance
Minbhawan, Kathmandu

Submitted to
The Faculty of Management
Tribhuvan University
Kirtipur, Kathmandu

In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

May 2024
 Table of Contents

Contents Page no
INTRODUCTION…………………………………………………...…………………… ... 1
Background of the study ........................................................................................................ 1

Profile of Global IME Bank Limited ..................................................................................... 2

Objectives of the Study ........................................................................................................ 2

Rationale of the Study ........................................................................................................... 3

Literature Review .................................................................................................................. 3

Conceptual Review ............................................................................................................... 3

Theoretical Framework ......................................................................................................... 4

Research Framework............................................................................................................. 5

Operational Definition........................................................................................................... 6

Research Methodology .......................................................................................................... 7

Research Design.................................................................................................................... 7

Population and Sample .......................................................................................................... 7

Instrumentation of Data ......................................................................................................... 7

Data Collection ..................................................................................................................... 8

Data Management and Analysis Tools................................................................................... 8

Limitations of the study......................................................................................................... 9

Method of study .................................................................................................................... 9

Report Structure .................................................................................................................. 10

BIBLIOGRAPHY ............................................................................................................... 11

APPENDIX : Research Questions ....................................................................................... 12

 CHAPTER I
INTRODUCTION

1.1 Background of the study

In today's competitive business scenario, employee satisfaction is crucial as an

organization's success hinges on dedicated employees. Job satisfaction is a critical human
resource issue impacting a firm's future. Employees are true assets, contributing effectively
to an organization's functioning. While profitability is the key objective, directly dependent
on employee performance, organizations must ensure mandatory principles and policies are
followed.

In Nepal's rapidly growing banking sector, with 20 commercial banks vying to provide the
best customer services, the competition is intense. To attract top talent with advanced skills,
banks offer attractive salaries and benefits - higher compensation is essential for survival
and retaining competent employees. Employee job satisfaction affects service quality and
customer satisfaction; satisfied employees create satisfied customers. However, limited
studies exist on factors influencing job satisfaction in Nepali banks. Job satisfaction theory,
measurement tools, indicators, and impact factors have been widely researched, but context-
specific studies are lacking. Commercial banks present an ideal case to identify employee
satisfaction levels and address this gap.

Organizations cannot run smoothly without employees' contributions, which can lead to
success in competitive markets. Higher job satisfaction correlates with lower absenteeism,
employee retention, productivity, organizational commitment, and life satisfaction.
Performance management aligns organizational goals with resources, identifying
competency gaps for improvement through guidance, training, coaching, and mentoring. It
optimizes results by reducing conflicts and grievances.Employee performance refers to
fulfilling duties and responsibilities, measured by productivity, efficiency, attendance,
customer satisfaction, and policy compliance - used to assess effectiveness and identify
areas for improvement. Management coordinates efforts towards specific goals efficiently
and effectively across businesses, non-profits, and government. Performance encapsulates
task execution against standards of accuracy, completeness, speed, and consistency, gauging
effectiveness, efficiency and satisfaction levels across domains.

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1.2 Profile of Global IME Bank Limited

Global IME Bank Ltd. (GIBL) was formed in 2012 following the successful merger of
Global Bank Ltd (an "A" class commercial bank), IME Financial Institution (a "C" class
finance company), and Lord Buddha Finance Ltd. (also a "C" class finance company).
Subsequently, in 2013, two additional "B" class development banks, Social Development
Bank and Gulmi Bikas Bank, merged with GIBL. Expanding its reach further, in 2014,
GIBL merged with Commerz and Trust Bank Nepal Ltd., another "A" class commer cial
bank. During the fiscal year 2015-16, GIBL acquired Pacific Development Bank Limited
and Reliable Development Bank Limited, both "B" class development banks. Continuing its
growth trajectory, GIBL acquired Hathway Finance Limited, a "C" class finance company,
and merged with Janata Bank Nepal Limited, an "A" class commercial bank, in 2019.
Finally, on January 9, 2023, GIBL merged with Bank of Kathmandu, solidifying its position
as the largest bank in Nepal.Established in 2007, Global Bank Limited initially had a paid-
up capital of NPR 1.0 billion, which has since grown substantially to NPR 36.1287 billion.
The bank's shares are publicly traded as an "A" category company on the Nepal Stock
Exchange.

1.3.Objectives of the Study

The specific objectives of the research works are:

 Assessing the correlation between compensation and employee performance.

 Investigating the impact of moral incentives on employee performance.

 Analyzing the effect of promotion policies on employee performance.

 Exploring additional factors influencing employee performance, such as job

satisfaction, organizational culture, and leadership styles.

 Identifying potential moderating variables that may influence the relationships

between pay, moral incentives, promotion policies, and employee performance.

 Providing actionable insights for organizations to enhance employee performance

through effective incentive structures and policies.

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1.4 Rationale of the Study
The primary objective of this study is to investigate employee performance and job
satisfaction within the context of Global IME Bank Ltd. Specifically, the study aims to
examine how incentives influence employee performance, considering factors such as
gender, income level, work experience, age, education, and job position.
Key points regarding the significance of the study:
1. Contribution to Research: This study will serve as a valuable resource for researchers
interested in exploring topics related to incentives and employee performance within
organizational settings.
2. Organizational Insights: Findings from this research can offer valuable insights for
organizations, helping them assess the satisfaction levels of their employees and understand
the relationship between job satisfaction and performance.
3. Performance Evaluation: By evaluating employee performance in conjunction with
their satisfaction levels, this research can provide organizations with a clearer understanding
of how satisfaction impacts performance outcomes.

1.5 Literature Review

1.5.1 Conceptual Review

Chepkemoi's (2018) study delved into the impact of incentives on employee performance
within the Kenya Forest Service in Uasin Gishu County. Guided by the Force-Field Theory
of Change and the Evolutionary Theory of Change, the research utilized a descriptive survey
research design. The target population encompassed all employees of the Kenya Forest
Service in Uasin Gishu County, totaling 115 individuals across 8 forest stations. The stu dy
employed a census method to select the sample size of 115 respondents and collected data
through questionnaires. Validity of the instruments was ensured through expert review,
while a pilot study in Nandi County was conducted to test reliability, achieving a Cronbach's
alpha of 0.72, confirming instrument reliability. Descriptive statistics, including
percentages, mean, and standard deviation, were employed for data analysis. The study's
findings underscored the vital role of incentives in organizational performance,
recommending the adoption of reengineering processes to enhance customer service,
teamwork, cooperation, and reduce employee turnover, thereby improving organizational
image.

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1.5.2 Theoretical Framework
In theoretical terms, employee performance is pivotal for organizational growth, with
incentives serving as a means to motivate employees and enhance their performance (Paillé,
2009). Employee performance encompasses various dimensions such as productivity,
efficiency, attendance, customer satisfaction, and compliance with company policies, which
employers gauge through performance metrics to identify areas for improvement (Cascio,
2018).
Herzbergs' two-factor Theory
Herzberg's Two-Factor Theory of motivation, formulated by psychologist Frederick
Herzberg in the 1950s, posits that certain job factors lead to satisfaction, while others
prevent dissatisfaction. Herzberg discerned that satisfaction and dissatisfaction are distinct
constructs, with satisfaction stemming from motivator factors like recognition and
achievement, and dissatisfaction arising from hygiene factors such as working conditions
and salary (Juneja, 2020). This theory highlights the importance of addressing both
motivator and hygiene factors to foster employee satisfaction and performance within
organizations.

Empirical Review
Naqbi, Yusoff, and Ismail (2018) investigated the impact of incentive systems on job
performance motivation as a mediator in public sector organizations in the UAE. Their
research aimed to assess the effect of motivation and incentive systems on the job
performance of public sector employees, while also exploring the extent to which incentives
are utilized in the UAE's public service sector. Conducted at the Economic Development
Department (EDD) in Al Sharjah, the study employed a quantitative approach. It examined
the relationship between incentive systems (monetary and tangible, non-monetary and
intangible) and employees' job performance, considering the mediating effect of employees'
intrinsic and extrinsic motivation. The findings indicated a positive relationship between
incentive systems and job performance.

Pradhan (2020) focused on the impact of reward systems on employee performance in

service sector institutions in Nepal. He highlighted reward management as a crucial element
in human resource management, emphasizing its role in motivating and retaining
employees. The study involved analyzing the opinions of 395 employees from managerial,
officer, and assistant levels regarding rewards such as salary, bonus, promotion,
empowerment, and appreciation.

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Pearson and Spearman Rho Correlation analyses were conducted to determine the
correlation between reward systems and employee performance, while multiple regression
was used to assess the impact of reward systems on performance. The study concluded that
reward systems have a positive correlation and impact on employee performance in Nepal's
service sector institutions.

DeVaro, Li, and Brookshire (2007) explored contextual factors provided by organizations to
determine job satisfaction, focusing on the Job Characteristics Model (JCM). They noted the
enduring relevance of the JCM in discussions of job satisfaction and work design,
emphasizing its utility as a conceptual tool for job enrichment. This research underscores the
significance of organizational factors in shaping job satisfaction and highlights the
continued relevance of the JCM in understanding work dynamics and employee satisfaction.
1.5.3 Research framework : The study on influence of incentives shall be performed
identifying dependent andindependent variables. In this research, Employee performance
(Ep) is considered as adependent variable while Influence of incentives (Ii) as an
independent variable.

However, in the research framework, independent variables, such as financial

andnonfinancial incentives, moderating variable tenure of job shall also be taken
intoconsideration while analyzing the relation with employee performance. Research
framework of this study is shown in figure below.

Research framework of this study is shown in figure below.

Independent Variables Dependent Variables

 Pay / Bonus  Employee

 Promotion performance
 Moral Incentives

Figure 1 Research framework

Figure1 is the schematic diagram of the theoretical framework drawn with thehelp of the
existing literature review and theories available. It outlines the strongrelationship between
incentives and Performance of an employee considering age factor.Here, Employee
performance is taken as the dependent variable, financial Incentives andnon-financial
incentives as independent variables and age as moderating variables.

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Operational Definition
Independent variable
Moral Incentives : In the workplace, incentives play a crucial role in motivating employees
to improve performance and efficiency. Gana and Bababe (2011) highlight how incentives
and reward systems direct employees' efforts towards achieving organizational goals
effectively. Conversely, Palmer (2012) cautions against the detrimental impact of
inadequate incentives, which can hinder performance and reduce productivity, ultimately
impeding organizational success. These incentives, whether financial or non-financial, serve
as powerful motivational tools, influencing decision-making and resource allocation, and
shaping individual and group behaviors within the organization.
Promotion : The concept of promotion and reward intertwines salary, wages, and
compensation within the framework of effective human resource management (Deluca,
1993; Rajkumar, 1996). Serving as a cornerstone of organizational development, rewards,
and promotions stimulate employee engagement and performance, aligning individual
efforts with the organization's success trajectory.
Pay / Bonus : Pay and bonuses represent monetary rewards bestowed upon employees
beyond their regular salary or wages, often tied to exemplary performance (Deluca, 1993).
Additionally, profit-sharing schemes may be implemented, further incentivizing employees
to enhance organizational profitability through their dedicated efforts. Such incentives serve
as powerful motivators, fostering employee commitment and driving improved performance
to bolster organizational success.

Dependent variable
Employee performance : The dependent variable in this study is employee performance, as
it is directly influenced by the incentives provided by the organization. These incentives not
only improve employee performance but also enhance productivity in achieving
organizational goals, thereby boosting overall organizational productivity. Employee
performance is intricately linked to the concept of ability, opportunity, and motivation
(Ivancevich & Matterson, 1988). Ability refers to the inherent talent or skill that enables
individuals to successfully execute tasks, while opportunity encompasses circumstances that
offer potential but entail uncertainty and risk. Motivation, on the other hand, pertains to the
reasons or driving forces behind specific actions or behaviors.

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1.6 Research Methodology
1.6.1 Research Design
The research design guides its execution from hypothesis formulation to data analysis.
Initially, the study population is identified, and data is collected from primary and secondary
sources such as journals, scholarly articles, and the internet. The present study adopts an
exploratory approach, aiming to uncover new insights and relationships. The flexibility of
the research design allows for a comprehensive examination of various aspects related to the
problem under study, thereby highlighting potential weaknesses in enterprise management
for further investigation. The primary objective of the research is to assess employee
satisfaction in the banking sector, with hypotheses testing employed to determine
relationships and draw conclusions about the variables under scrutiny.This design facilitates
gathering information on the current status of employee performance and exploring
relationships among variables. Utilizing quantitative research techniques, the stud y
quantifies data and extrapolates findings from a sample to the target population.

1.6.2 Population and Sample

For this study, the researcher employed a combination of random and stratified sampling
techniques to select commercial banks as the study population. Random and stratified
sampling, known for their cost-effectiveness and efficiency, were chosen due to their
accessibility, ease of measurement, and cooperation of sampling units. A total of 70
employees from Global IME Bank Ltd were personally contacted by the researcher,
resulting in 63 responses, yielding a response rate of 90%. Participants were informed
about the study's purpose and requested to provide accurate information by filling out a
questionnaire. The selection of participants from Global IME Bank Ltd ensured the
relevance and validity of the study's findings. Data collection utilized a five-point Likert
scale unipolar questionnaire, with participants chosen through convenience sampling.
This sampling method was selected for its ease of access and proximity to the
researcher, allowing for swift data collection.

1.6.3 Instrumentation of Data

The survey employed a structured questionnaire as its primary tool to achieve research
objectives, aiming to explore the relationship between demographic factors and Likert scale
responses. Data collection and analysis involved both primary and secondary data sources,
aligned with the questionnaire and the theoretical framework established through literature
review.

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The questionnaire included sections for demographic information such as age, gender,
education level, employment history, and job position, alongside Likert scale questions to
measure opinions and perceptions.

Comprising multiple-choice and Likert-scale questions, the questionnaire served as a

common method to assess respondents' levels of agreement or disagreement with a set of
statements. With a total of 17 questions, each utilizing a five-point Likert scale ranging from
"Strongly Agree" (5) to "Strongly Disagree" (1), the survey aimed to capture diverse
perspectives. Data collection occurred post-completion of the survey, enabling the
evaluation of various independent and dependent variables within the research context.

1.6.4 Data Collection

A standardized survey was developed for data collection, employing both online forms and
physical questionnaires. The participants primarily consisted of assistant and officer-level
employees from Global IME Bank Ltd. The survey was administered to 70 employees using
Google Forms and questionnaires as the primary data collection methods. Additionally,
secondary data was gathered from reports, papers, and prior research articles. While
secondary data provided valuable insights, the main emphasis of the study was placed on
analyzing the primary data obtained directly from the participants.

1.6.5 Data Management and Analysis Tools

The collected data will undergo analysis using Microsoft Excel, chosen based on the
researcher's preference for analyzing survey data. The analysis will primarily involve
percentage analysis, which facilitates comparisons between different data series and
describes their relationships. The focus of these studies is to examine the influence of
independent variables on employee performance.For the analysis of primary data,
various statistical tools will be utilized, including tables, figures, and bar diagrams.
These tools aid in visually representing and interpreting the data collected from primary
sources, providing insights into the relationship between independent variables and
employee performance. Through these analytical techniques, the study aims to gain a
comprehensive understanding of the factors impacting employee performance within the
context of Global IME Bank Ltd .

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1.7 Limitations of the Study

Despite efforts to collect comprehensive information for an overall analysis of the organization and
its intended systems, several limitations persist for various reasons, including:

 Limited Sample Size: The study was conducted with a limited number of staff
members from banks, potentially hindering the generalizability of findings to the
entire banking sector.

 Restricted Choice of Independent Variables: The selection of independent

variables was constrained by previous studies' findings, potentially limiting the
exploration of other relevant factors influencing the research outcomes.

 Time Constraints: The study was conducted within a limited time frame, which
may have impacted the depth and breadth of data collection and analysis.

 Reliance on Respondents' Information: The validity of the study hinges on the

accuracy and reliability of information provided by respondents, which may be
subject to biases or inaccuracies.

 Limited Statistical Tools: The use of only standard deviation and coefficient of
variance as statistical tools may restrict the depth of comparison between datasets
and overlook alternative analytical methods that could provide richer insights.

 Mixed Data Sources: Both primary data obtained through interviews and
secondary data from internal records, published articles, and reports were utilized in
the study, potentially introducing variations in data quality and consistency.

 Academic Focus: The report is prepared for academic purposes, lacking expert
analysis, and conclusions are contingent upon the reliability of available data,
which may not capture the full complexity of real-world scenarios.

1.8 Method of study

The research method involves a systematic exploration and investigation into a particular
phenomenon or problem with the aim of generating new insights or enhancing existing
knowledge. It encompasses several key components: problem identification, literature
review, research design, data collection, data analysis, interpretation of findings, conclusion
and recommendations, and report writing and dissemination. Problem identification entails
defining the research objectives and questions to guide the investigation, while the literature
review helps in understanding previous research findings and identifying gaps in
knowledge.

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The research design involves determining the approach, methodology, and data collection
methods aligned with the research objectives. Data is then systematically collected and
analyzed using appropriate techniques to uncover patterns and relationships. The findings
are interpreted in light of the research objectives and existing literature, leading to
conclusions and potential recommendations for future research or practical applications.
Finally, the research findings, conclusions, and recommendations are compiled into a formal
report or manuscript for dissemination to the wider community.

1.9 Report Structure

This study is organization into three chapters. Each is devoted to the some aspect of the
study. The rationale behind this kind of organization is to follow a simple each
methodology approaches. The contents of each chapters of the study are briefly mentioned
here.

Chapter 1: Introduction: It consists of introductory part of the study. This chapter

consists of background, profile of the organization, objectives of the study, rational, report
structure, literature review, research gap, methods and limitations of the study.

Chapter 2: Results and Findings: It includes design, sample selection, data collection
procedure, data analysis and processing, necessary tools and techniques of the study.
Chapter 3: Summary and Conclusion: On the basis of the results from data analysis, the
researcher concludes about the performance of the concerned organizations for better
improvement. It concludes research summary and conclusion.

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 BIBLIOGRAPHY

 Arif, M., & Al Mahmud, A. (2019). Factors Influencing Employee Satisfaction: A Study
on Banking Industry of Bangladesh. Journal of Business Studies, 40(1), 65-80
 Joshi, S., & Joshi, S. (2017). Employee Satisfaction in Banking Sector: A Comparative
Study of Public and Private Sector Banks in India. International Journal of Research in
Commerce, Economics & Management, 7(1), 44-49.
 Khanal, S., & Thapa, S. (2018). Job Satisfaction and Organizational Commitment: A
Study of Banking Sector in Nepal. Nepal Journal of Management Sciences and Research,
3(1), 45-56.
 Neupane, R., & Shrestha, R. (2020). A Study on Employee Satisfaction in Global IME
Bank Ltd. Kathmandu: Global IME Bank Ltd.
 Pandey, S., & Regmi, D. R. (2019). Employee Satisfaction and Its Impact on
Organizational Performance: A Case Study of Global IME Bank Ltd. Journal of
Management and Development Studies, 29(2), 78-89.
 Shrestha, A., & Adhikari, N. (2018). An Empirical Study on Employee Satisfaction in
Global IME Bank Ltd. Kathmandu: Global IME Bank Ltd.
 Subedi, R., & Neupane, S. (2016). Impact of Employee Satisfaction on Organizational
Performance: A Case Study of Global IME Bank Ltd. Management Dynamics, 20(1), 30-
45.

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 APPENDIX : Research Questions

Questionnaire

This questionnaire is a part of research work conducted on Employees Satisfaction in

Banking Sector.

Please take a few minutes to express your views on the questions below. This study is being
conducted as a part of academic research work. Please be assured that the data will be
treated STRICTLY CONFIDENTIAL and used only for the research purpose.

Your cooperation would be greatly appreciated.Please tick one for each criteria group

Part A: Demographic Profile

Gender Income Level

 Male  Below Rs.20000
 Female  Rs.20000 – Rs.40000
 Other  Rs.40000 – Rs.60000
 Rs.60000 and above

Age Work Experience

 Below 20  Less than a year
 20-30  1-2 years
 30-40  3-4 years
 40-50  4-5 years
 Above 50  5 years and above

Education Position
 Intermediate  Assistant level
 Bachelor degree  Supervisor level
 Master's degree or above  Officer Level
Part B: Survey Question
Strongly Disagree Neutral Agree Strongly
Disagree Agree
1 2 3 4 5
Please indicate your agreement and disagreement with the following statements related to
pay, promotion, moral incentives, employee performance by ticking the appropriate
response.

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S. No. Particulars 1 2 3 4 5
PAY
1 The bonuses and extras added yearly to my
salary make me feel satisfied.
2 The salary that matches my efforts
encourages my performance.
3 The health insurance offers suitable services
for the employees.
Promotion
4 I notice that job promotions affected my
performance positively.
5 There is a relative match between my
qualification and experience, and my job.
6 I think that the majority of managers and
supervisors were promoted fairly.
7 Most of the job promotions are given
depending on seriousness and perseverance
in work.
Moral Incentives
8 My direct manager plays a major role in
instructing me and improving my
performance.
9 I'm always ready to do the best due to the
good treatment from my colleagues at work.
10 The institution offers appreciation medals for
those who deserve.
11 The institution offers participation in training
sessions in order to improve the employees'
performance.
Employee Performance
12 I care about the results of evaluating my
performance because they are a chance to get
bonuses.
13 I finish the required work even if it requires
extra efforts.
14 I do my job according to the required quality
standards.

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15 The employees have the ability to deal with
troubles at work.
16 I follow the instructions and regulations at
work.

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