Job Satisfaction – “A Comparative Analysis

of Public Sector Banks vs. Private Sector

Banks”

PROJECT REPORT

Submitted to

Punjab Technical University in partial fulfillment of the

requirements for the degree of

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

By

Rajat Mongia
(Univ. Roll No.617241066)

Department of Business Management

PUNJAB COLLEGE OF TECHNICAL EDUCATION

(PCTE) BADDOWAL
LUDHIANA
(2006-09)
 CERTIFICATE- I
This is to certify that

the project report entitled

Job Satisfaction – “A Comparative Analysis of Public Sector

Banks vs. Private Sector Banks”

Submitted in partial fulfillment of the requirements

For The Degree of

Bachelor of Business Administration (BBA) of

Punjab Technical University, Jalandhar

By
Rajat Mongia
University Roll. No. 617241066

Has been prepared under my supervision and guidance and no part of it has been
submitted for the award of any degree and that the work has not been published in any
journal, magazine or book.

Ms. Sheenu Gupta

Lecturer
PCTE
 CONTENTS OF TABLE

CHAPTERS TOPIC PAGE NO

1 Introduction

2 Review of Literature

3 Objectives of study

4 Research Methodology

5 Analysis and Interpretation

6 Result and discussion

Bibliography

Annexure
 INTRODUCTION
TO
JOB SATISFACTION
 JOB SATISFACTION

The feelings or ‘affective response’ someone experiences in a job role. Some

researchers argue that it is possible to capture the level of job satisfaction with one

question. Others suggest we can have strong negative feelings about one aspect of our

job (eg pay) but feel positive about other facets of it (eg colleagues

Job satisfaction is a term used to describe how content an individual is with their job.

It is a relatively recent term since in previous centuries the jobs available to a

particular person were often predetermined by their parent's occupation.

Job satisfaction describes how content an individual is with his or her job. It is a

relatively recent term since in previous centuries the jobs available to a particular

person were often predetermined by the occupation of that person's parent. There are a

variety of factors that can influence a person's level of job satisfaction; some of these

factors include the level of pay and benefits, the perceived fairness of the promotion

system within a company, the quality of the working conditions, leadership and social

relationships, and the job itself (the variety of tasks involved, the interest and

challenge the job generates, and the clarity of the job description/requirements).

The happier people are within their job, the more satisfied they are said to be. Job

satisfaction is not the same as motivation, although it is clearly linked. Job design

aims to enhance job satisfaction and performance, methods include job rotation, job

enlargement and job enrichment. Other influences on satisfaction include the

management style and culture, employee involvement, empowerment and autonomous

work groups. Job satisfaction is a very important attribute which is frequently

measured by organisations. The most common way of measurement is the use of

rating scales where employees report their reactions to their jobs. Questions relate to

rate of pay, work responsibilities, variety of tasks, promotional opportunities the work

itself and co-workers. Some questioners ask yes or no questions while others ask to

rate satisfaction on 1-5 scale (where 1 represents "not at all satisfied" and 5 represents

"extremely satisfied").

FACTORS IN JOB SATISFACTION:

There are number of factors that influence job satisfaction. A number of research

studies have been conducted in order to establish some of the causes that result in job

satisfaction. These studies have revealed consistent correlation of certain variables

with the job satisfaction. These factors can be divided into 4 broad categories:

1. ORGANISATIONAL FACTORS:

a) Salaries and Wages.

b) Promotion chances

c) Company policy.

d) Job-security and steady employment.

2.WORK ENVIRONMENTAL FACTORS:

a)Relationship with supervisors and assosiates on the job.

b)Relative status, which an individual holds within the social and economic groups
with which he identifies himself.

c)Work situations, including nature of job.

d) Working condition-earnings, hours of work, facilities etc

 3. WORK ITSELF:

a)Greater opportunities for advancement.

b)Variety in work

c) Freedom from close supervision.

d) Opportunities to see result’s of one’s own work.

e) Role ambiguity and role conflict.

f) Less fatigue work.

4. PERSONAL FACTORS.

a) Age and seniority.

b) Tenure.

c) Initiative and personal responsibility.

d) Health criticism.

e) Ability to adjust oneself to unpleasant circumstances.

Theories of Motivation
Abraham Maslow’s “Need Hierarchy Theory” :

One of the most widely mentioned theories of motivation is the hierarchy of needs

theory put forth by psychologist Abraham Maslow. Maslow saw human needs in the

form of a hierarchy, ascending from the lowest to the highest, and he concluded that

when one set of needs is satisfied, this kind of need ceases to be a motivator.

As per his theory this needs are :

(i) Physiological needs :

These are important needs for sustaining the human life. Food, water, warmth, shelter,
sleep, medicine and education are the basic physiological needs which fall in the

primary list of need satisfaction. Maslow was of an opinion that until these needs were

satisfied to a degree to maintain life, no other motivating factors can work.

(ii) Security or Safety needs :

These are the needs to be free of physical danger and of the fear of losing a job,

property, food or shelter. It also includes protection against any emotional harm.

(iii) Social needs :

Since people are social beings, they need to belong and be accepted by others. People

try to satisfy their need for affection, acceptance and friendship.

(iv) Esteem needs :

According to Maslow, once people begin to satisfy their need to belong, they tend to

want to be held in esteem both by themselves and by others. This kind of need

produces such satisfaction as power, prestige status and self-confidence. It includes

both internal esteem factors like self-respect, autonomy and achievements and
external esteem factors such as states, recognition and attention.

(v) Need for self-actualization :

Maslow regards this as the highest need in his hierarchy. It is the drive to become

what one is capable of becoming, it includes growth, achieving one’s potential and

self-fulfillment. It is to maximize one’s potential and to accomplish something.

Maslow's hierarchy of needs

Type of Need Examples

1 Physiological Thirst, sex, hunger

2 Safety Security, stability, protection
3 Love and To escape loneliness, love and be loved, and gain a sense of
Belongingness belonging
4 Esteem Self-respect, the respect others
5 Self- To fulfill one's potentialities
actualization

“Theory X and Theory Y” of Douglas McGregor :

McGregor, in his book “The Human side of Enterprise” states that people inside the

organization can be managed in two ways. The first is basically negative, which falls

under the category X and the other is basically positive, which falls under the category

Y. After viewing the way in which the manager dealt with employees, McGregor

concluded that a manager’s view of the nature of human beings is based on a certain

grouping of assumptions and that he or she tends to mold his or her behavior towards

subordinates according to these assumptions.

Under the assumptions of theory X :

  Employees inherently do not like work and whenever possible, will attempt to

avoid it.

 Because employees dislike work, they have to be forced, coerced or threatened

with punishment to achieve goals.

 Employees avoid responsibilities and do not work fill formal directions are

issued.

 Most workers place a greater importance on security over all other factors and

display little ambition.

In contrast under the assumptions of theory Y :

 Physical and mental effort at work is as natural as rest or play.

 People do exercise self-control and self-direction and if they are committed to

those goals.

 Average human beings are willing to take responsibility and exercise

imagination, ingenuity and creativity in solving the problems of the

organization.

 That the way the things are organized, the average human being’s brainpower

is only partly used.

On analysis of the assumptions it can be detected that theory X assumes that lower-

order needs dominate individuals and theory Y assumes that higher-order needs

dominate individuals. An organization that is run on Theory X lines tends to be

authoritarian in nature, the word “authoritarian” suggests such ideas as the “power to

enforce obedience” and the “right to command.” In contrast Theory Y organizations

can be described as “participative”, where the aims of the organization and of the

individuals in it are integrated; individuals can achieve their own goals best by

directing their efforts towards the success of the organization.

However, this theory has been criticized widely for generalization of work and human
behavior.

Frederick Herzberg’s motivation-hygiene theory :

Frederick has tried to modify Maslow’s need Hierarchy theory. His theory is also

known as two-factor theory or Hygiene theory. He stated that there are certain

satisfiers and dissatisfiers for employees at work. In- trinsic factors are related to job

satisfaction, while extrinsic factors are associated with dissatisfaction. He devised his

theory on the question : “What do people want from their jobs ?” He asked people to

describe in detail, such situations when they felt exceptionally good or exceptionally

bad. From the responses that he received, he concluded that opposite of satisfaction is

not dissatisfaction. Removing dissatisfying characteristics from a job does not

necessarily make the job satisfying. He states that presence of certain factors in the

organization is natural and the presence of the same does not lead to motivation.

However, their nonpresence leads to demotivation. In similar manner there are certain

factors, the absence of which causes no dissatisfaction, but their presence has

motivational impact.
Examples of Hygiene factors are :

Security, status, relationship with subordinates, personal life, salary, work conditions,

relationship with supervisor and company policy and administration.

Examples of Motivational factors are :

Growth prospectus job advancement, responsibility, challenges, recognition and

achievements.

Contributions of Elton Mayo :

The work of Elton Mayo is famously known as “Hawthorne Experiments.” He

conducted behavioral experiments at the Hawthorne Works of the American Western

Electric Company in Chicago. He made some illumination experiments, introduced

breaks in between the work performance and also introduced refreshments during the
pause’s. On the basis of this he drew the conclusions that motivation was a very

complex subject. It was not only about pay, work condition and morale but also

included psychological and social factors. Although this research has been criticized

from many angles, the central conclusions drawn were :

 People are motivated by more than pay and conditions.

 The need for recognition and a sense of belonging are very important.

 Attitudes towards work are strongly influenced by the group.

Vroom’s Valence x Expectancy theory :

The most widely accepted explanations of motivation has been propounded by Victor

Vroom. His theory is commonly known as expectancy theory. The theory argues that

the strength of a tendency to act in a specific way depends on the strength of an

expectation that the act will be followed by a given outcome and on the attractiveness

of that outcome to the individual to make this simple, expectancy theory says that an

employee can be motivated to perform better when their is a belief that the better

performance will lead to good performance appraisal and that this shall result into

realization of personal goal in form of some reward. Therefore an employee is :

Motivation = Valence x Expectancy.

The theory focuses on three things :

 Efforts and performance relationship

 Performance and reward relationship

 Rewards and personal goal relationship

This leads us to a conclusion that :

The Porter and Lawler Model

:Lyman W. Porter and Edward E. Lawler developed a more complete version of

motivation depending upon expectancy theory.

Actual performance in a job is primarily determined by the effort spent. But it is also

affected by the person’s ability to do the job and also by individual’s perception of

what the required task is. So performance is the responsible factor that leads to

intrinsic as well as extrinsic rewards.

 INTRODUCTION
TO
BANKING SECTOR
(PUBLIC & PRIVATE SECTOR
BANKS)
 PUBLIC SECTOR BANKS

Banks are said to be the backbone of an economy. If you want to break an economy,
break the banks’ backs. There are times when banks break themselves, go bankrupt
and are probably at the top of the chain to bring down an upward moving economy.

Financial systems are critical to the working of any economy. The actual growth in an
economy happens in the core sectors like infrastructure, manufacturing and services,
while the financial sector supports the core sector.

A weak financial sector can wreak havoc on an economy the way it did in East Asia,
Latin America and Russia, a few years ago. Thus, the stability of any economy is
reflected by the strength of its financial sector and, more importantly, the banking
sector.

In India, public sector banks (PSBs) are the backbone of the country’s economy. They
have an edge over the new private sector players since they have been in existence
much longer. PSBs account for three-quarters of the market share in India. However,
the nascent private sector banks have taken up the challenge quite well and are
competing with the PSB behemoths. But strictly speaking, a PSB cannot be compared
with a private sector bank as its vision and mission are completely different from that
of a private sector bank.

Changing business environment

The banking business has changed radically over the last decade when the private
sector was allowed into the banking domain. Since then, the face of banking has
changed rapidly. Technology is not a competitive edge anymore, but a survival need.
Gone are days when banks only accepted deposits and advanced loans to customers
who had to go through the taxing bureaucratic credit department. Banks have to invest
in technology to not only meet the changing customer requirements but to offer a
range of services and get customer data and develop strategies for business growth.
Not to mention the leakages and the better risk management techniques that these
systems provide. But before the systems are in place, banks need to define their goals
and the strategies to meet them. They need to streamline their processes. This is a
major hurdle that most PSBs face today.

But they are trying hard to meet these challenges and some PSBs have already made
the right moves. For example, Bank of Baroda (BoB) has gone in for core banking in
select branches (top 500), on the basis of business growth and size.

With the systems in place (or in the process of implementation) for most PSBs, the
manual work has been replaced by technology. As a result, PSBs are faced with
excess manpower. With the private sector banks aggressively marketing their products
like credit cards, retail loans - personal and home loans etc, it is imperative for PSBs
to shelve the babu image and get out in the field and aggressively market their
products. The excess manpower has to be used to market the product offerings.

Banks (both private and public sector) are working on wafer-thin margins in the
corporate credit segment. This is because of stiff competition among the banks and
also due to the numerous options available to the corporates with respect to raising
funds. Also, with the primary capital market in a boom in the last two years,
corporates prefer to fund their long-term requirements through capital issues rather
than go in for a long-term borrowing where the future interest rate scenario is
uncertain. The growth in advances has to primarily come from the retail and SME
segment, where the potential for credit growth is huge. Private sector banks were the
first to realise this and have made huge inroads in the retail and SME segment.
However, PSBs have also realised this truth and are making up for the late entry into
the segment. Even though PSBs might not have the first mover advantage, they have a
competitive edge over the cost of funds due to huge footprint in the rural areas, which
enable them to mobilise funds at a lower rate of interest.
 PRIVATE BANKS IN INDIA

All the banks in India were earlier private banks. They were founded in the pre-
independence era to cater to the banking needs of the people. But after nationalisation
of banks in 1969 public sector banks came to occupy dominant role in the banking
structure. Private sector banking in India received a filip in 1994 when Reserve Bank
of India encouraged setting up of private banks as part of its policy of liberalisation of
the Indian Banking Industry. Housing Development Finance Corporation Limited
(HDFC) was amongst the first to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector.
Private banks have played a major role in the development of Indian banking industry.
They have made banking more efficient and customer friendly. In the process they
have jolted public sector banks out of complacency and forced them to become nore
competitive.
Private Banks are taking to the consolidation route in a big way. Bank of Punjab
(BoP) and Centurion Bank (CB) have been merged to form Centurion Bank of Punjab
(CBP). RBI has approved merger of Centurion Bank and Bank of Punjab effective
from October 1, 2005. The merger is at a swap ratio 9:4 and the combined bank is will
be called Centurion Bank of Punjab. The merger of the banks will have a presence of
240 branches and extension counters, 386 ATMs, about 2.2 million customers. As on
March 2005, the net worth of the combined entity is Rs 696 crore and the capital
adequacy ratio is 16.1 per cent
In the private sector, nearly 30 banks are operating. The top five control nearly 65% of
the assets. Most of these private sector banks are profitable and have adequate capital
and have the technology edge.
Due to intensifying competition, access to low-cost deposits is critical for growth.
Therefore, size and geographical reach become the key for smaller banks. The choice
before smaller private banks is to merge and form bigger and viable entities or merge
into a big private sector bank.
The proposed merger of Bank of Punjab and Centurion Bank is sure to encourage
other private sector banks to go for the M&A road for consolidation.
 ICICI BANK

ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment

Corporation of India) is India's largest private sector bank in market capitalization
and second largest overall in terms of assets. ICICI Bank has total assets of about
USD 79 Billion (end-Mar 2007), a network of over 950 branches and offices, about
3600 ATMs, and 24 million customers (as of end July 2007). ICICI Bank offers a
wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialised
subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. ICICI Bank is also the largest issuer
of credit cards in India. [1]. ICICI Bank has listed its equity shares on stock exchanges
at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited,
and its ADRs on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. The Bank now has wholly-owned subsidiaries, branches
and representatives offices in 18 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in the UK, Canada and Russia, offshore banking
units in Singapore and Bahrain, an advisory branch in Dubai, branches in Sri Lanka,
Hong Kong and Belgium, and rep offices in the US, China, United Arab Emirates,
Bangladesh, South Africa, Indonesia, Thailand and Malaysia. In particular, the bank is
targeting the NRI (Non Resident Indian) population

ICICI Bank reported marked-to-market loss of $264 million as of January 31, 2008
following USA subprime mortgage crisis[2].
 HDFC BANK

One amongst the firsts of the new generation, tech-savvy commercial banks of India,
was incorporated in August 1994, after the Reserve Bank of India allowed setting up
of Banks in the private sector. The Bank was promoted by the Housing Development
Finance Corporation Limited, a premier housing finance company (set up in 1977) of
India. Net Profit for the year ended March 31, 2006 was Rs. 1,141 crores. Results of
the latest quarter ended June 2007, indicate that the bank continues to grow in a steady
manner.

History

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC
Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.

Branch network

Currently HDFC Bank has 758 branches, 1,716 ATMs, in 325 cities in India, and all
branches of the bank are linked on an online real-time basis. The bank offers many
innovative products & services to individuals, corporates, trusts, governments,
partnerships, financial institutions, mutual funds, insurance companies.

It is a path breaker in the Indian banking sector. In 2007 HDFC Bank acquired
Centurion Bank of Punjab taking its total branches to more than 1,000.
 CENTURIAN BANK

Centurian Bank Ltd is an India-based private sector bank. Centurian Bank Ltd is now
known as the Centurion Bank of Punjab and it provides wide range of financial
products to its customers spread across India. Centurion Bank of Punjab operates
through

393 branches, 452 ATMs in 180 locations. The shares of Centurion Bank of Punjab
are listed on all the major Indian stock exchanges of India and also on the
Luxembourg Stock Exchange.

Products and services offered by the Centurian Bank Ltd

Personal banking products -

 Savings Bank Account
 Current Account
 Fixed Deposits
 Gift Card
 Global Debit Card
 Visa Money Transfer
 Miracle Credit Card
 Premium Pay
 Pay Instant

Retail loan products -

 Property Loans
 Two Wheeler Loans
 Commercial Vehicle Loans
 Auto Loans
 Agriculture Loans
  Education Loans
 Construction Equipment Loans

Wealth Management Services -

 Insurance
 Mutual Funds
 IPO
 Equity
 Portfolio Tracker
 Financial Risk Profiler
 Broking Services
 Fixed Income Products

Corporate Banking products -

 Trade Finance
 Channel Finance
 Corporate and SME
 Treasury
 Financial, Institutional & Govt.
 SME Customer Referral Scheme
 INDIAN BANK

Type Public (BSE, NSE)

Founded 1907
Headquarters Chennai, India
Mr. M.S. Sundara Rajan
Key people
(Chairman and MD)
Industry Banking
Revenue 3895.99 Crores ~ $865m (2005-06)
Employees 22,000
Parent Reserve Bank of India
Website http://www.indianbank.in/

Indian Bank, established in 1907, is a major Indian commercial bank headquartered

in Chennai (Madras), India. It has 22,000 employees and 1,400 branches and is one of

the big public sector banks of India. It has overseas branches in Colombo, Sri Lanka

and Singapore, and 229 correspondent banks in 69 countries. The Government of

India nationalized the bank, along with 13 other major commercial banks, on 19th

July, 1969.
 State Bank of India

Public (BSE, NSE:SBI) & (LSE:

Type
SBID)
Founded Calcutta, 1806 (as Bank of Calcutta)
Corporate Centre,
Headquarters Madame Cama Road,
Mumbai 400 021 India
Key people Chairman Om Prakash Bhatt
Banking
Industry Insurance
Capital Markets and allied industries
Loans, Credit Cards, Savings,
Products Investment vehicles, SBI Life
(Insurance) etc.
Revenue USD 13.775 billion (2005)
Website http://www.statebankofindia.com/

State Bank of India (SBI) (LSE: SBID) is a Public Sector Banking Organisation

(PSB), in which the Government of India is the biggest shareholder, and is the largest

bank in India. Measured by the number of branch offices, SBI is the second largest

bank in the world. (As a result of the takeover of State Bank of Saurashtra, SBI's

branch count will increase to over 11,000 Branches throughout India.) SBI traces its

ancestry back to the Bank of Calcutta, which was established in 1806; this makes SBI

the oldest commercial bank in the Indian subcontinent. SBI provides various

domestic, international and NRI products and services, through its vast network in
India and overseas. With an asset base of $126 billion and its reach, it is a regional

banking behemoth.

In recent years the bank has focused on four priorities, first, reducing its huge staff

through the Golden handshake scheme known as the Voluntary Retirement Scheme,

second, computerizing its operations, third, implementation of Business Process Re-

Engineering(BPR), and fourth, trying to change the attitudes of its staff through a

program named 'Parivartan' or 'change'. On the whole, the Bank has been successful in

the first three initiatives but has failed in Parivartan.

 PUNJAB NATIONAL BANK

Type Public (BSE, NSE:PNB)

Founded Lahore, 1895 (British India)
Headquarters New Delhi, India
Chairman and M.D. Dr. K.C.
Key people
Chakrabarty
Banking
Industry Insurance
Capital Markets and allied industries
Loans, Credit Cards, Savings,
Products
Investment vehicles, Insurance etc.
Revenue USD 2.32 billion (2005)
Website http://www.pnbindia.com/

Punjab National Bank (PNB), established in 1895 in Lahore by Lala Lajpat Rai, is
the second largest public sector commercial bank in India with about 4500 branches
and offices throughout the country. The Government of India nationalized the bank,
along with 13 other major commercial banks of India, on July 19, 1969.

History

Punjab National Bank (PNB) was established in 1895 at Lahore. PNB has the
distinction of being the first Indian bank to have been started solely with Indian
capital. In 1969, Punjab National Bank was nationalized along with 13 other banks.
OBJECTIVES OF
THE STUDY
 OBJECTIVES OF THE STUDY

Our objective of doing research are as follows:

Primary objective

To carry out a study on job satisfaction that would actually be an initiation to study the

pros and cons in implementing the actual satisfaction level of employees in both

public and private sector.

Secondary objectives

Besides the primary objective other objectives of study are as follows:

 To identify variables which have a significant impact on the satisfaction level

of employees

 To make plan to induce greater satisfaction.

 To identify prominent areas of dissatisfaction among the employees

 To determine the level of satisfaction and dissatisfaction among employees.

REVIEW OF LITERATURE
 REVIEW OF LITERATURE

Newman, summer and Warren (1976) studied the on the job versus off the job

satisfaction and found that distinction had an important bearing on how a manager

seeks to motivate his subordinate. They gave the following table of human needs.

NEEDS DIRECT INDIRECT

(ON THE JOB (OFF THE JOB
SATISFACTION) SATISFACTION)

1.Physiological Working Money to buy

Conditions necessities of Needs
Life
2.Security needs
Physiological Economic
Security security

3.Social needs Sociabilities Money to attain

belonging social status,
status within recognized company
company

4.Self expression Self assertion improved ability to

power, sense of engage in hobbies,
accomplishment, money to seeklover.
growth possibility

Srivastava (1982) has presented evidence that love of motivational factors for one

manager desired to lead luxurious life, money power and status. The so-called hygiene

factors of Herzberg.
Alinoor (1994) concluded from his study that open communication, job security,

supervision, recognition for good work and overtime are considered more important

than job status for job satisfaction. According to him, working environment and

autonomy in work has significant impact on performance.

Several of the replication studies of Herzberg’s two- -factor theory show that

security and salary (extrinsic rewards) are considered more important by employees in

India than job design, autonomy, and other job related factors. Ishwar dayal and Mirza

Saiyadin (1967) however, support the motivation hygiene theory. Lahiri and

Srivastava (1970) support the theory only partially. They say that satisfied and

dissatisfied feelings are unipolar but both intrinsic and extrinsic factors contribute to

satisfied and dissatisfied feelings.

A study of 150 supervisors of textile mills in Ahemadabad by Atira in 1970 found that

recognition and work don’t act as motivators and peer relationships and working

conditions don’t operate as hygiene factors.

The following table shows average of ranks given by workers to various job factors in

eight such studies-

Job Factors Average Rank

1.Adequate salary 1.1

2.Job security 2.2

3.Adequate personal benefits 3.8

 4.Opportunity for advancement 4.0

5.Suitable work 5.6

6.Good supervisor 6.0

7.Opportunity of training & learning 6.2

8.Comfortable working conditions 6.4

Recently there has been a resurgence of interest in the analysis of job

satisfaction variables. Job satisfaction is correlated with labors market behavior such

as productivity, quits and absenteeism. In this paper four different measures of job

satisfaction are related to variety of British employees in the workplace employee’s

relations survey 1997. Four measures of job satisfaction that have not previously

‘been used are considered: satisfaction with influence over job, satisfaction with

respect from supervisor, satisfaction with amount of pay, satisfaction with sense of

achievement. The paper contributes to the literature by analyzing, job satisfaction with

respect to industrial composition and occupation. One of the striking finding is that

employees who received job training were more satisfied than those who could not

receive the opportunity for training. Unlike previous studies, it is found that married

individuals had lower job satisfaction than that of unmarrie. Other results’ confirm

those in the literature such as women being more satisfied than men and a u-shaped

relationship is being formed between satisfaction and age.

Another study by - Nancy C Morse

She has concluded that older white-collar employees have high intrinsic

job satisfaction but lower financial and status satisfaction. Women are more satisfied
with there job then men probably because of there lesser ambitions and financial

needs. Research indicates that job satisfaction is also related to the place of situation.

It is believed that employees at work place in the large cities are generally less

satisfied with there job than those who work in the town or cities.

Another study - Job Satisfaction of Employees

According to this study of job satisfaction it had been concluded that higher the age,

higher is the satisfaction .The people working at higher level are more satisfied than

those working at lower level. It also says that if the education is higher than. The job

requirement also becomes the source of dissatisfaction, also married are more satisfied

than singles.

Another study by - ALFONSO AND POZA

Job satisfaction has been a fascinating theme of research in economics owing to the

link it is thought to have with such labour market behaviour of workers as turnover

and absenteeism; and their performance and/or productivity. What determines job

satisfaction? This paper undertakes a multilevel analysis of the determinants of job.

satisfaction in Britain using linked employer-employee data from the 2004 British

Workplace Employment Relations Survey (WERS 2004). It departs from previous

studies on several counts. First, it employs multilevel modeling as opposed to the

commonly used estimation technique in the literature. Second, it investigates the

determinants of up to eight different facets of job satisfaction, in addition to overall

job satisfaction, thereby being able to establish what determines which aspects of job

satisfaction. Third, unlike most previous studies it uses a whole host of correlates
relating to employees and their workplaces.

Srivastava (1982) has presented evidence that love of motivational factors for one

manager desired to lead luxurious life, money power and status. The so-called hygiene

factors of Herzberg.

Alinoor (1994) concluded from his study that open communication, job security,

supervision, recognition for good work and overtime are considered more important

than job status for job satisfaction. According to him, working environment and

autonomy in work has significant impact on performance.

 RESEARCH
METHODOLOGY
 RESEARCH DESIGN

A research design is an arrangement of conditions for collection and analysis of data

in a manner that aims to combine relevance to the research purpose with economy in

procedure. It constitutes the blueprint for collection, measurement and analysis of

data.

The research design for our research is exploratory and descriptive

Data Collection:

For my research study the data has been collected by the primary data collection

For primary data collection I adopted the structured, questionnaires.

Sampling Plan:
Sampling is an effective step in the collection of primary data and has a great

influence on the quality of results. The sampling plan includes the universe,

population, sample size and sample design.

Universe:

Universe refers to all the eligible respondents of a particular research around the

world.

The universe for our research is all the employees of public and private sector banks.

Population:

Population refers to part of universe from which the sample for conducting the

research is selected. Universe & population can be same in some researches.

The population of my research is all the employees in public and private sector banks.
Sampling Design:

A sample design is a definite plan for obtaining a sample from a given population. It

refers to the technique or the procedure the researcher would adopt in selecting items

for the sample.

The sampling design of my research is Convenience sampling.

Sampling Unit:

Sampling unit refers to smallest possible individual eligible respondent.

In my study the sampling unit – employees from public and private sector banks.

Extent:

Ludhiana and surrounding areas

Sample size:

Sampling size refers to total number of respondents targeted for collecting the data for

the research.

The sampling size of my study - 40 employees from public sector and 40 from private

sector banks.
LIMITATIONS OF
THE STUDY
 LIMITATIONS

 Short span of time: The main limitation of the study is availability of

time. Due to short span of time, some inaccuracy may have occurred.

 Biasness on the part of employees: Since the selection of respondents

was based on convenience , it might have occurred to biased ness of

researcher. Also some respondents were not ready to reveal the true

information.

 Inaccurate access: Due to short span of time it was not possible to

access all employees in both public and private sector.

 Results of the study have been derived from the parameters included in

questionnaire. However satisfaction is a complex attribute of human

personality , so the results may not exactly correspond to the true nature

of job satisfaction.

 Although utmost care has been taken to get the accurate results , yet

because of the risk of ambiguities & misinterpretation on the part of

respondents , some demerits of inaccuracy could have creped in.

 DATA ANALYSIS
AND
INTERPRETATION
 ANALYSIS AND INTERPRETATION

1. Satisfaction level of employees regarding their job.

PUBLIC SECTOR PRIVATE SECTOR

No. of %age of No. of %age of
Respondents Respondents Respondents Respondents
Highly 25 62.5% 15 37.5%
satisfied
Satisfied 15 37.5% 25 62.5%
Dissatisfied 0 0 0 0
Highly 0 0 0 0
Dissatisfied

Public Sector Private Sector

0%

0%
37.50%

37.50%
62.50%

62.50%

Highly satisfied Satisfied Highly satisfied Satisfied

Dissatisfied Highly Dissatisfied Dissatisfied Highly Dissatisfied

INTERPRETATIONS:

After comparing the satisfaction level of the employees of both the sectors we reach at

the conclusion that 62.5% of the public sector employees are highly satisfied while

37.5% of private sector employees are highly satisfied, majority of the private sector

employees are satisfied only i.e. 62.5%.

2. As per every employee job satisfaction helps in

PUBLIC SECTOR PRIVATE SECTOR

No. of %age of No. of %age of
Respondents Respondents Respondents Respondents
Improving 8 20% 19 47.5%
productivity
Improving 5 12.5% 8 20%
morale
Improving -- -- -- --
motivation
Reducing -- -- -- --
turnover
Reducing -- -- -- --
absenteeism
All of the 27 67.5% 13% 32.5%
above

Public Sector Public Sector

20%
32.50%

47.50%
12.50%

67.50%
20%

Improving productivity Improving morale All of the above Improving productivity Improving morale All of the above

INTERPRETATIONS:

According to the table 67.5% of the public sector employees are of the opinion that

the job satisfaction results in all the parameters for achieving desired level of work

while 47.5% of the private sector employees feel that job satisfaction results

improving productivity only. Very few feel that it results in all the parameters and

that very few constitute 32.5%.

3. Which of the parameter is most important to bring in job satisfaction.

PUBLIC SECTOR PRIVATE SECTOR

No. of %age of No. of %age of
Respondents Respondents Respondents Respondents
Monetary 13 32.5% 20 50%
Rewards
Non-monetary -- -- -- --
Rewards
Both of the 27 67.5% 20 50%
above

Public Sector Public Sector

32.50%

50% 50%

67.50%

Monetary Rew ards Both of the above Monetary Rew ards Both of the above

INTERPERETATIONS:

67.5% of the public sector employees feel that both monetary and non-monetary

rewards are essential to bring in job satisfaction while 32.5% feel that only monetary

rewards are essential.

In private sector 50% employees feel that monetary rewards are essential while other

50% say that both monetary and non-monetary rewards are essential to bring in job

satisfaction.
4. Non-monetary rewards are based on

PUBLIC SECTOR PRIVATE SECTOR

No. of %age of No. of %age of
Respondents Respondents Respondents Respondents
Performance 20 50% 40 100%
Position 2 5% -- --
Both of the 18 45% -- --
above

Public Sector Private Sector

45%
50%

5% 100%

Performance Position Both of the above Performance Position Both of the above

INTERPRETATION:

50% of the public sector employees are of the opinion that non-monetary rewards are

based on performance while 45% feel that they are based on both performance and

position. In private sector all the employees feel that non-monetary rewards are based

on performance only.
5. Forms of non-monetary rewards

PUBLIC SECTOR PRIVATE SECTOR

No. of %age of No. of %age of
Respondents Respondents Respondents Respondents
Recognition 26 65% 20 50%
Company 2 5% 9 22.5%
arrange trips
Contests 2 5% 8 20%
Gifts items 10 25% 14 10%
Accommodation -- -- -- --

Public Sector Private Sector

0% 10% 0
25%
20%
50%
5%
5% 65%
22.50%

Recognition Company arrange trips

Recognition Company arrange trips
Contests Gifts items
Contests Gifts items
Accommodation
Accommodation

INTERPRETATION:
65% of the public in employees are of the opinion that non-monetary rewards are in

the form of recognition and 25% feel that they are in the form of gift items.

In Private sector majority of the employees feel that non-monetary rewards are in the

form of recognition, company arrange trips and in the form of gift item.
 6 (a) Satisfaction with the type of benefits provided by the public and private
sector banks
PUBLIC SECTOR
Highly Satisfied Dissatisfied Highly
satisfied dissatisfied
Salary 37.5% 62.5%
Promotional opportunities 100%
Benefits (Health, life 42.5% 57.5%
insurance)
Job security 50% 50%
Recognition for work 100%
accomplished
Training 100%

PRIVATE SECTOR
Highly Satisfied Dissatisfied Highly
satisfied dissatisfied
Salary 55% 45%
Promotional opportunities 87.5% 25%
Benefits (Health, life insurance) 100%
Job security 45% 30% 25%
Recognition for work 45% 55%
accomplished
Training 15% 37.5% 40%

INTERPRETATION:
According to the table shown above it has been observed that public sector employees
are much more satisfied with their salary promotion opportunities and job security. In
case of public sector 35% are highly satisfied and 65% of the employees are satisfied
with their pay package while in private sector. Only 45% are satisfied and 25% are
dissatisfied. To regards promotional opportunities also sum of the private sector
employees are dissatisfied. Public sector employees are fully secure with their job
while private sector employees have some sort of dissatisfaction that their jobs are not
secure.
7.(a) Satisfaction with interpersonal relationship at work place

PUBLIC SECTOR
Highly Satisfied Dissatisfied Highly
satisfied dissatisfied
Relationship with co-workers 42.5% 57.5% -- --
Relationship with supervisors 37.5% 62.5% -- --

62.50% 62.50%
63.00%
62.00%
61.00%
60.00%
59.00%
57.50% 57.50%
58.00%
57.00%
56.00%
55.00%
Highly satisfied Satisfied

Relationship with co-workers Relationship with supervisors

INTERPRETATION:
Majority of the employees are satisfied with their interpersonal relationship with co-
worker and supervisors. None of them are dissatisfied.
7.(b) Satisfaction with interpersonal relationship at work place

PRIVATE SECTOR
Highly Satisfied Dissatisfied Highly
satisfied dissatisfied
Relationship with co-workers 42.5% 57.5% -- --
Relationship with supervisors 20% 80% -- --

80%
80.00%
70.00%
57.50%
60.00%
50.00% 42.50%

40.00%
30.00% 20%
20.00%
10.00%
0.00%
Highly satisfied Satisfied

Relationship with co-workers Relationship with supervisors

INTERPRETATION

In private sector also majority of the employees are satisfied with their interpersonal

relationship with co-workers and supervisors. None of them are dissatisfied.

8. Satisfaction with the opportunities provided by the banks to utilize skill and
talent.

PUBLIC SECTOR PRIVATE SECTOR

No. of %age of No. of %age of
Respondents Respondents Respondents Respondents
Yes 40 100% 40 100%
No -- -- -- --

100% 100%
100%

80%

60%
Yes
40%

20%

0%
PUBLIC SECTOR PRIVATE SECTOR

INTERPRETATION

Both public and private sector employees are in the favour that their bank provides

them the reasonable opportunity to utilize their skill and talent.

 RANKING PROCEDURE
9. Parameters being ranked in order of priority given by the employees of public sector.
Ranks 1 2 3 4 5 6 7 8 9 10 TOTAL MEAN RANK
Parameters SCORE
BONUS 8 12 4 8 6 2 260 6.5 V

PROMOTIONAL 5 6 13 6 2 11 2 271 6.77 III

SCHEME
WORK LIFE 15 10 7 3 4 4 5 195 4.87 VII
BALANCE
JOB SECURITY 11 10 4 333 8.32 I

OPPORTUNITY 8 8 6 13 5 266 6.65 IV

FOR
ADVANCEMENT
QUALITY OF 8 8 8 5 11 197 4.92 XI
WORK LIFE
SALARY 12 3 9 10 3 2 1 309 7.72 II

RELATIONSHIP 4 8 10 10 8 150 3.75 VIII

WITH
SUPERVISION
RELATIONSHIP 3 7 12 10 8 129 3.22 IX
WITH PEERS
TRAINING 2 2 9 11 16 80 2 X
 RANKING PROCEDURE
10 (b).Parameters being ranked in order of priority given by the employees of private sector.
Ranks 1 2 3 4 5 6 7 8 9 10 TOTAL MEAN RANK
Parameters SCORE
BONUS 12 15 13 359 8.97 I

PROMOTIONAL 22 8 8 2 302 7.55 II

SCHEME
WORK LIFE 6 11 7 10 6 207 5.17 VI
BALANCE
JOB SECURITY 6 6 7 10 10 8 206 5.15 VII

OPPORTUNITY 13 5 7 7 4 4 260 6.5 III

FOR
ADVANCEMENT
QUALITY OF 6 8 10 8 8 8 3 238 5.95 IV
WORK LIFE
SALARY 7 10 10 8 3 1 235 5.87 V

RELATIONSHIP 8 8 12 3 180 4.5 VIII

WITH
SUPERVISION
RELATIONSHIP 10 2 10 10 156 3.9 IX
WITH PEERS
TRAINING 7 10 6 20 78 1.9 X
 FINDINGS
AND
CONCLUSION
 FINDINGS

1. During the survey it was found that employees of public sector are highly

satisfied with their jobs as compared to the employees of private sector.

2. Public sector employees indicated that job satisfaction results in improving

productivity, morale, reducing, turnover etc. while private sector employees

laid major stress that job satisfaction results in improving productivity only.

3. The survey also indicated that employees of both the sector feels that monetary

and non-monetary rewards are essential to bring in job satisfaction. Only

monetary rewards are not essential.

4. During the survey it was found that in private sector performance based

promotion criteria is more prevalent as compare to public sector. In public

sector both performance and position are considered for determining non-

monetary rewards.

5. In public sector it was found that non-monetary rewards are based mainly on

recognition while in private sector they are based on recognition and gift items

also.

6. In relation to the salary being reimbursed to employees it could be seen that

employees of public sector are more satisfied with the pay package given to

them as compare to the employees of private sector. 45% of private sector

employees are dissatisfied with their salary.

7. With regard to the facilities provision it was found that employees of public

sector are better availed with extra incentive as compared to private sector

employees. Private sector employees are dissatisfied with regards to

 promotional opportunities and job faculty.

8. The survey also indicated that public sector employees are satisfied with their

training policy while only 37.5% of private sector employees are satisfied with

their training facility.

9. During the survey it was found that the supervisor of both the sectors are

cooperative to their employees.

10. The employees of the public sector always secure co-operation from their

colleagues as compared to private sector employees where employees not

always but often get co-operation of their colleagues.

11. When surveyed it was found that in public sector job securities is given no.1

priority followed by salary, promotion scheme etc. Whereas in private sector

bonus and other fringe benefits is given no.1 priority followed by promotional

scheme, opportunities for advancement, QWL etc. Salary being given no.5

priority.

12. In both the sector all the employees are provided with reasonable opportunity

to utilize their skill and talent.

13. On the whole after studying various parameters (facilities, benefits and

provisions) it was found that employees of public sector are much more

satisfied as compared to private sector employees.

 CONCLUSION

Satisfaction is the necessary core success for any type of job or work.

Job satisfaction displays one’s feelings towards his or her job .Satisfaction from the

job plays the positive role not only in development or growth an organization but of

the individual too, on the other hand dissatisfaction could have disasters effects on the

growth as well as success of an organization.

In context to both the sectors could be concluded that to a great extent

employees in these organizations are satisfied with there jobs, which would further

help the organization to maintain healthy relations with their employees and compete

successfully ii this era of globalization.

SUGGESTIONS
 SUGGESTIONS

1. Work Place Atmosphere: Some of the employees are not satisfied with the

type of environment in which they are working and as we know that working

environment plays a major role for the employees up gradation, so organization

need to introduce some changes like social interaction or improved

communication system in there organization so as to provide total satisfaction

at the job/work.

2. Too much stress at work is also another major reason /cause of employees

dissatisfaction, so there arises the need to release the stress of the employees by

taking certain measures like social gatherings at the work place or some sort of

holiday tour and soft music could be introduced at work place which would

provide pleasure and comfort to both customers and employees.

3. Compensation: One of the important “WHY” of individuals work is pay or

salary and this is the reason that why an employee shifts from one job to

another, as they are not satisfied with the pay package being provided by there

respective organization, so the organizations must provide suitable pay package

to there employees so as to retain them for long and should also provide there

employees with some extra incentives.

4. Most of the employees are confronting themselves with routine type of work at

there present jobs which creates monopoly or boredom, so the organizations

need to reduce this monotony and boredom by the means of job rotation so that

employees may find variety in there jobs and hence be satisfied.

5. Benefits: Holiday tour and non monetary benefits are also the crucial factors at

job so the organizations must along with the monetary benefits be provide there

employees with some sort of non- monetary benefits so as to enhance

satisfaction at work, also provided with holiday tours so as to bring relaxation

and help them in releasing there stress.

6. Training: As effective training helps the employees to upgrade there skills so

the organizations must have effective, adequate and best training policy which

would not only help the employee in enhancement of there skills in various

fields but also provide for total satisfaction at there job.

7. Leadership: The role of supervisor is that of role model he/she not only

provides guidance to the employees but also paves the way for his growth so

one must always be cooperative to his colleagues and help them whenever and

wherever needed.

8. Promotional Opportunities: Promotion a criterion to some extent has to

undergo the change; it has to be fair and justifiable enough so as to retain the

employees for long.

9. Participative style of management should be encouraged in the organizations so

as to create sense of belongingness amongst the employees.

10. Communication systems should be made so effective that employees can

whenever feel could share there problems or grievances and feel satisfied ,also

release there stress.

11. More and more team work should be encouraged through whole hearted

cooperation and participation of collegeous.

 10 SIMPLE WAYS TO MOTIVATE EMPLOYEES
1. Ask your employees what they want.

 Conduct a company survey.

 Listen to them. Hold weekly meetings for each department and monthly

meetings for the whole company. Find out what's on their minds.

 Set up a suggestion box and, where appropriate, use their suggestions.

2. Pay them well.

 To keep the best people, you're going to have to pay the highest possible wages

and commissions. Check out your competition to find out what they're offering.

 Give them opportunities for spiffs/perks. Put these in writing, and keep the plan

simple.

3. Provide for them.

 Give your employees the best health insurance possible. Shop the insurance

market and offer them options.

 Take care of their families. Offer health insurance options that include family

coverage, and provide disability and life insurance protection.

 Let them enjoy vacations and holidays. Although you may want to limit

vacations during peak seasons, make sure they get time away from work to

unwind and recharge.

4. Show them a future.

 Outline employees' career paths with your company. Provide for internal

growth as well as future change. Promote from within and, if possible, offer
 alternate opportunities to help employees find the right fit.

 Help them secure their retirement by offering a 401(k) or profit-sharing plan.

5. Make them part of a team.

 Be selective when hiring new employees. Have a written hiring plan and

always be aware of the image of your company that you want employees to

convey.

 Create opportunities for department goals that support team building. Make it

fun, come up with team names, t-shirts, etc.

6. Reward them.

 Give your employees gifts for excellence. The gifts don't have to be

extravagant. For example, give a new tool or movie tickets to the technician

who has the cleanest vehicle, or who consistently turns in the neatest

paperwork.

 Let them know their value. Take employees out for breakfast, or visit them in

the field and treat them to lunch.

 Go above and beyond. Think up contests that can make work more interesting

and fun. Sponsor company get-away trips, cookouts, etc.

7. Commend them.

 Create a "Wall of Fame" for employees' certificates, awards, and letters of

thanks.

 Write about your employees in your company newsletters or on your website.

 Have an employee of the month and an employee of the year. This works
 particularly well if the winner is chosen by the other employees.

8. Thank them.

 Always acknowledge employees' anniversaries with an anniversary card and an

announcement at a company meeting.

 Make a note of employees' birthdays and give them a card or gift.

 Give employees thank-you cards for suggestions they share at company

meetings.

 Visit with employees in their offices or on jobsites to find out how things are

going.

9. Challenge them.

 Use report boards to show employees "the numbers." Let them see how they

stack up against others in key performance indicators (you can determine

which indicators are most important at your company).

 Teach employees how to set goals. This can apply to company, department and

individual goals. Make sure the goals are S.M.A.R.T.: specific, measurable,

achievable, realistic, and timely.

10. Empower them.

 Set up committees for benefits, safety, and training. This allows employees to

write their own procedures manuals, and cross-train each other.

 Don't make them be perfect. If you want employees to try new things, there are

going to be failures as well as successes. Don't forget that both bring growth.
REFERENCES
 REFERENCES

Shashi K. Gupta, Rosy Joshi (2005), Human Resource Management, Kalyani

Publications, 20.1-20.3.

Dr. C.B. Gupta (2004) Human Resource Management, Sultan Chandan & Sons, 7.86-
7.96.

Mamoria, C. B., (1980), Personnel Management, Himalya Publication House,

Bombay.

Prasad, L.M., (2000), Organisational Behaviour, Sultan Chand& Sons, New

Delhi.

Robbins, Stephens, P (1998), Organisational Behaviour, Prentice Hall Of India,

New Delhi.

Wilkens, Paul I. Paul Timm, (1978), Perceived Communication in equity – A

Determinant of Job Satisfaction, Journal of Management, 35, 39.

Websites:
wikipedia.com.
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