Abdul Latif 1, Sumita Das 2, Sahara Sharmin Tania 3, Farzana Akter 4

Transcription

1 Vol. 3, No. 3, 2014, The Effect of Job Related Selected Factors of Job Satisfaction among Employees of Different Levels of Financial Institutions: A Study in Sylhet City, Bangladesh Abdul Latif 1, Sumita Das 2, Sahara Sharmin Tania 3, Farzana Akter 4 Abstract Job satisfaction is the indicator of success and failure of any service providing organization as the satisfied employee can provide satisfaction to the customers that lead to the success of an organization. It may differ on the basis of formation of organization, the pay, promotion, transfer, communication system among employees differentiated by experience, education, level of work of respondents employees.. A total number of 300 commercial bank employees from both the private and the public sectors were randomly selected as sample for the study. The data were collected by a structured questionnaire from the respondents and analyzed through Frequency distribution, cross tabulation and Chi-square analysis with the help of SPSS 19 and Microsoft Excel The research finds no significant relationship between job satisfaction and ownership structure, promotion, transfer and others but communication system. On the basis of cross tabs, and other tools the authors interprets the results to provide some recommendations to improve the situation by minimizing dissatisfaction to provide better quality of services to the customers. Key words: Job satisfaction, Experience, Benefits, Communication System, Transfer & Promotion 1. Introduction In recent years, economic development makes the rapid development of the bank industry and vice versa. One special issue is the low level of employee job satisfaction that brought difficulties in increasing service quality. Job satisfaction is the enjoyable touching position of mind resulting from the positive evaluation of one s job or job experiences (Locke 1976). Job satisfaction is the attitude of the employees towards their work due to the comparison between their sentiment, thinking and propensity towards their work and working environment (Yilmaz, 2009). Negative working environment leads to job dissatisfaction (Farrell, 1999). The perception of satisfaction is achieved when organization can meet or exceed the employees requirements. (Hackman and Oldham, 1976; Hannay and Northam, 2000; Locke, 1976; Rust et al.,1996). The failure in gratifying employee s needs tend to cause absenteeism (Vermon 1931).Thereby great efforts to improve employee's job satisfaction, creates the satisfied customer with satisfied employees. The common studies revealed that level of job satisfaction highly depends on salary, promotional policy, job environment, organizational culture, relation with colleagues and superior, participation in decision making etc. But factors of job dissatisfaction do not affect the employees of all levels equally. Some of the mentioned factors of job satisfaction of bankers are: salary, promotion, supervision, benefits, rewards, operating procedure, co-worker, nature of work, communication etc (Ahmed, Uddin, 2012). Although in some research it is found that, there is no direct relation between job satisfaction and salary, but in many researches it is found as important determinant of job satisfaction. Experience is found as one of the determinant of job satisfaction as younger employees have a greater propensity to job turnover 1 Associate Professor & Head, Department of Business Administration, Sylhet International University, Sylhet 2 Senior Lecturer, School of Business, Independent University, Bangladesh 3 Researcher, Advanced Research and Language Institution, Sylhet 4 Researcher, Advanced Research and Language Institution, Sylhet 2014 Research Academy of Social Sciences 167

2 A. Latif et al. than older employees. (Benders and Van De Looj 1994). Employee's job satisfaction affects the quality of service that leads to the degree of customer satisfaction. Contemporary banking business considers the job satisfaction as the most important requirement to retain their valuable workforce (Islam and Hasan, 2005). Perception of employees on job satisfaction may also differ due to different organizational culture developed in the ownership structure of banks namely, public, private and foreign. It may also differ among employees of different pay scales, experience level, designation. The different promotion, transferring and communicating systems of banks may also have influences on job satisfaction on employees. Though there are many studies on different aspects of job satisfaction of bank employees in Bangladesh but there are very limited studies on job satisfaction of bank employees in these aspects, namely; of different pay scale, experience, designation on job environment, compensation, promotion, coworkers, transfer & communication system. In this empirical research the researchers are trying to find out factors like job environment, compensation, promotion, transfer, coworkers & communication system affecting job satisfaction of employees of different pay scale, experience and designation. By studying the factors affecting job satisfaction in s, we can effectively help the enterprises to understand the factors affecting employee job satisfaction of different employees; by understanding demands and requirements of different employee, one can also help the enterprises effectively manage employees and increase the management efficiency, increase the employee s loyalty and achieve a higher customer satisfaction. Objectives The objectives of the study are as follows: i. To study the Satisfaction on Different Types of s according to Ownership ii. To study the Satisfaction level of Employees of Different Pay Scale regarding Compensation iii. To study the Satisfaction level of Employees of Different Designation regarding Compensation iv. To study the Satisfaction level of Employees of Different Pay Scale regarding Promotion v. To study the Satisfaction level of Employees of Different Designation regarding Promotion vi. To study the Satisfaction level of Employees Different Experience Level regarding Coworker vii. To study the Satisfaction level of Employees of Different Education level regarding Communication system viii. To study the Satisfaction level of Employees Different Experience Level regarding Transfer ix. Finally, to make recommendations policy for the improvement of job satisfaction level of individual and organizational perspective of the bankers. 2. Methodology Research design: The research is to study the status and perception on job satisfaction of different bank s employees of Sylhet city, so it is the research of descriptive nature. Sampling design: To take the opinion of employees, the researchers have to depend on stratified sampling type of probabilistic sampling to ensure the representation of employees of different levels. In this study, 300 officers were selected from different branches of Sylhet division of different commercial banks. The study was conducted on all different levels of officers and employees like junior officer, Officer, Senior, Officer, Principal Officer and Senior Principal Officer from Private Commercial s (PCB), National Commercial s (NCB), Foreign Commercial (FCB) and Non-bank Financial Institution (NBFI). The following variables are studied in this research: a) Independent variables: (i) Demographic variables: Age, Experience, Education and Wage (ii) Organizational variables: Ownership Structure, Salary Structure, Experience, Pay, Promotion, Coworkers, Supervisors, Transfer and Communication system of organizations. 168

3 b) Dependent variables: Job satisfaction. Collection of Data A well-structured questionnaire was prepared for the purpose of collection of data. The response rate is around 90%. Information from secondary sources like books, articles, and a different published material has been collected to interpret the study. Processing of data The collected data were tabulated and processed through computer using SPSS software. Before Feeding data into computer, data were converted into numerical codes as per necessity of research. Frequency distribution, cross tab and Chi-square analysis is used to get the output of the data and interpretations were made according to the objectives of research. Finally some recommendations are given to improve the job satisfaction of bank employees. 3. Findings 1) Job Satisfaction Level of Different Employee In Case of Nature of Work The Satisfaction on Nature of Work in Different Types of s according to Ownership: The working environment of different types of bank, namely public bank, private commercial bank, foreign commercial bank is somehow different. It is natural that employees of these banks may perceive differently about that environment that leads to job satisfaction/dissatisfaction. In table no 1, the employee of public commercial bank provide their opinion about the nature of work. The percentage of employees are shown in public commercial banks as very satisfied, satisfied, neutral, dissatisfied and very dissatisfied are 0%, 5.4% 44.6%, 41.1% and 8.9% where it was.5%, 8.8%, 42.3%, 34.9%, and 13.5% in case of private commercial bank and 0%, 0%, 46.4%, 46.4% and 7.1% in case of foreign commercial bank. It becomes 0%, 0%, 100% 0% and 0% in NBFI. The total employees, classified into very satisfied, satisfied, neutral, dissatisfied and very dissatisfied are found as.3%, 7.3% 43.3% 37.0% and 12.0%. The average level of satisfaction is found from the majority of the respondents is followed by dissatisfied and most dissatisfied respondents. This level of satisfaction is almost similar in all types of banks except NBFI. The most satisfied employees are found as only.5% in case of private commercial bank but 0% in public, foreign and NBFIs. The foreign banks could not satisfy their employees more than public and private banks. Though the chi-square analysis of table 1 has shown no significant difference in the level of satisfaction of different forms of banks (p=0.917) 2) Job Satisfaction Level of Different Experience Employee in Case of Transfer The satisfaction level on transfer policy of banks according to different experience level of bank employee: The transfer policy of a bank is one of the factors of job satisfaction. The satisfaction level may differ on the experience level of employees. Employees of differently experienced employees of bank may perceive differently about the transfer policy that lead to job satisfaction/ dissatisfaction. In table no. 2, the employees who have an experience is less than 10, provide their opinion about the transfer policy, the percentage of employees are shown as very satisfied, satisfied, neutral, dissatisfied, & very dissatisfied are 2.4%, 9.9%, 56.5%, 28.9% & 2.4%. In case of those employees who have an experience is less than 20 are 0%, 7.7%, 51.3%, 35.9% & 5.1% and in case of employees of less than 30 years of job experience it is found as 25%, 50%, 55%, 0% and 0%. The average level of satisfaction is found from the majority of the respondent is neutral level, that is followed by dissatisfied employees. The employee whose experience is less than 30 is more satisfied than other respondents because of adaptability with transfer policy of banks. The less experienced employees are more disturbed by transfer order as it hampers their personal and family set up again and again. 169

4 A. Latif et al. However the Chi-square analysis proved that there is no significant difference between satisfaction level of varied experience person in respect of transfer policy of the banks. 3) Job Satisfaction of Different Education Level Employee in Case of Communication System The job satisfaction levels of the employees of different educational level are depending on the communication system of banks. Different bank has different communication system. Different educational level employees have different preference in case of communication system of their working organization. If the preference and existing system matches, then the employees become more satisfied. In table no.3, the hundred percentage of employees who have education in undergraduate level are shown as dissatisfied in communication system of banks, the largest proportion 52.5% are shown as indifferent that is followed by dissatisfied (31.3%) in case of graduate employees. It is found as similar in case of employees with post graduation degree. In total, majority of employees (51.3%) have shown their indifferent opinion regarding communication system of banks that is followed by dissatisfied employees (30.3%) and satisfied employees (9.3%). The authority should address the problem of satisfactory communication system in the banks to increase the efficiency of employees. The perception of satisfaction of employees of different education level is not significantly different as the chi-square analysis shown (p value= 0.985) 4) Job Satisfaction Level of Employees of Different Pay Scale In Case of Promotion The job satisfaction of employee is mostly depending on their promotion & pay system of their working organization. The financial and career related interests (career development) of employees depend on the promotional policy of the enterprise. It employees of different levels of pay scale may perceive the promotional policy of the enterprise differently. So it is important to analyze the level of satisfaction regarding promotional policy among different salaried employees. In the table no. 4, the majority of the employees (35.3%) with lower salary have shown their indifferent perception regarding promotion policy of the surveyed banks that is slightly lower (34.1%) in case of dissatisfied employees. The satisfied employees are also in significant proportion (24.7%) in this regard. The dissatisfaction increased gradually in employees with increased salary; 50.8%, 63.6% and 100% respectively. This is due to the fact that employees with higher salary are enjoying better standard of living and established a set up in a locality that is disturbed by transfer in job leads to increased dissatisfaction. The chi-square table shows an insignificant difference between employees of different pay scale on job satisfaction regarding promotion policy ( p-value= ) 5) Job Satisfaction Level of Employees of Different in case of Promotion The Satisfaction level on promotion system may be different in banks with different management style due to different ownership. The promotion system of different types of bank, namely public bank, private commercial bank, and foreign commercial bank is somehow different. It is natural that employees of these banks may perceive differently about that promotion system that leads to job satisfaction/dissatisfaction. In table no.5, the employees of different banking systems provide their opinion about the promotion system. The proportions of satisfied employees in nationalized bank are more (30.4%) than private and foreign commercial banks (11.6% and 0% respectively). The dissatisfied and highly dissatisfied employees in similar significant proportion in case of nationalized commercial banks (28.6%). It can be inferred that in nationalized banks employees who became able to manage their promotion are satisfied but who could not yet shown their dissatisfaction. But in private and foreign commercial banks majority of the employees have shown their dissatisfaction regarding promotion policy of the banks (50.7% and 64.3% respectively). The total employees, classified into very satisfied, satisfied, neutral, dissatisfied and very dissatisfied are found as 1.3%, 14%, 29.3%, 47.7% & 7.7% respectively. So the highest proportion (47.7%) of the employees is 170

5 dissatisfied on the promotion policy of the banks that is followed by indifferent employees. So the promotion policy must be reshuffled by the authority to bring the satisfaction among employees. The perception of satisfaction among employees of different forms of banks is found significantly different (p value=.000) is established by chi-square analysis. 6) Job Satisfaction Level of Different Experience Employee in Case of Coworker The employees job satisfactions are also depends on their coworkers attitudes and behavior. Experience increases the tolerance limit of employees. So employees of different job experience level may show their different satisfaction level in respect of coworkers attitudes and behavior. In table no.6, the highest proportion of employees (46.2%) with less than 10 years of experience have shown their indifferent attitude of satisfaction. It is gradually increased (56.4% & 75%) among employees of less than 20 and 30 years job experience. It is inferred that job experience increase the work experience with more and more co-workers with different norms, attitudes, belief and behavior. It increases the tolerance limit among employees and makes them indifferent towards their co-workers. The pleasure of work with coworkers also eroded with the experience level as highly satisfied employees (8%) with their coworkers is decreased to 0% in case of highest level of experienced employees. But the analysis shows no significant difference is shown among employees of different experience level regarding the cooperation of coworkers (p value=.436 in chi-square analysis) 7) Job Satisfaction Level of Different Salary Employee in Case of Pay The job satisfaction level of the employees are mostly depends on their salary and pay system of their working organization. Different bank has different pay system. So it is natural that employees, who get different level of salaries, may perceive differently about their pay system that lead to job satisfaction/ dissatisfaction. In table no. 7, the employees are divided into four categories in respect of compensation levels; salary of less than TK 30,000, of Tk , of TK and TK. 110,000. It is amazing that dissatisfaction on pay system is increased gradually from comparatively lower paid person to highly paid persons 43.5%, 64.6%. 66.7% and 100% respectively. The highly satisfied employees were found as 2.4% in lower paid group that turned to 0% in highly paid groups. It proved again increase in salary cannot bring satisfaction among employees rather it brings dissatisfaction due to increase needs with the increase of age in the employees. But increased salary is needed to protect employees. This relationship is found as significant by the chi-square analysis where p-value is That is satisfaction level is found as different among differently paid employees of banks. 8) Job Satisfaction Level of Different Designation Employee in Case of Pay In an organization, there is a relationship between the designation of the employees and the pay system. Different bank has different pay scale according to employees designation. The amount of pay is different in employees of different organizational levels. The job satisfaction level must depend on the pay system of employees with different designations. Almost similar result is found from table 8. The employees are classified into Assistant Junior Officer (AJO), Junior Officer (JO), Officers, Senior Officer (SO), Principal Officer (PO), Senior Principal Officer (SPO) and Assistant Vice President (AVP) or lower. The dissatisfaction over pay system is found 100% in AVP level, 46.2% in PO level, and 35.3% in SO level. Though it is increased to 59.5% in officer, 69% in Junior officer level. So it if found that perception of satisfaction regarding pay system among different levels of employees established the fact that compensation volume cannot bring satisfaction, But when it is minimum and make it impossible to survive, the employees of lower rank become more dissatisfied with their pay system. The dissatisfaction among employees of higher levels of hierarchy is also can be explained by the increasing cost of living of the senior persons family members. 171

6 A. Latif et al. This difference is not found as significant as chi-square analysis establish (p value=.119) 4. Recommendations This research method will provide a different perspective of employees, job satisfaction and contribute a more in-depth understanding of how employees view their job satisfaction. Based on this study, and analysis of factors affecting employee s job satisfaction, this paper makes the following recommendations to authority: Employees satisfaction is not ensured by more structured work of FCB and PCBs. So works must be assigned as challenging form and personal achievement should be attached with it. Transfer and promotional policies of the banks should be redressed as majority of the employees are indifferent and dissatisfied regarding it according to the necessity of organization and smooth flow of employees life style to bring satisfaction among them. Internal Communication System of the banks should be more sophisticated to make the employees informed about every necessary activity, performance of the banks. It will increase satisfaction level of employees. Mutual understanding between co-workers is to be increased by more official programs, gatherings, social programs to make them a family member, increase dependency among them and thus bring satisfaction. Pay Scale can never bring satisfaction but it is essential for survival of employees. So it should be redressed to make the employees life easier and comfortable. At the same time it should ensure justice because sense of injustice in pay scale can bring more dissatisfaction. 5. Conclusions This study has focused on the some job related factors that affected job satisfaction in s. The perception of satisfaction is varied among different form of banks, levels of employees, experience & educational levels of employees in the perspectives of Pay. Promotion, Transfer & Communication system. It can be inferred from the analysis that the pay, promotion, transfer and communication policies of the banks should be addressed and streamlined to bring more happiness among employees. References Benders, J. and Van De Looj, F. (1994). Not Just Money: Quality of Working Life as Employment Strategy. International Journal of Health Care Quality Assurance. Vol. 6(6). Pp Farrell GA, Dares G (1999). Nursing Staff Satisfaction on a Mental Health Unit. Aust N Z. J. Ment. Health. Nurs., 8: Hackman, J. R. and Oldham, G. R. (1976). Motivation through the Design of Work: Test of a Theory. Organizational Behavior and Human Performance. Vol. 86. pp Hanny, M. and Northam, M. (2000). Low Cost Strategies for Employee Retention. Compensation and Benefit Review. 23(4), Islam, M. M. and Hasan, M. (2005). Employee Satisfaction on Private Sector s in Bangladesh: A Study on Dhaka City s s. Journal of Business Studies. Vol. 3; Number 1 & 2. Bangladesh Open University. ISSN: Locke, E. A. (1976). The Nature of Job Satisfaction. Handbook of Industrial and Organizational Psychology. Achicogo, IL: McNally. pp

7 Rust, R. T.; Stewart, G. L.; Miller, H. and Pielack, D. (1996). The Satisfaction and Retention of Frontline Employees: A Customer Satisfaction Measurement Approach. International Journal of Service Industry Management. Vol. 7(50), pp Vermon, H. M. and Bedford, T. (1931). The Absenteeism of Miners in Relation to Short-time and Other Conditions. Industrial Health Research Board, Report no. 62, H. M. S. O., London. Yılmaz E (2009). Examining organizational commitment of primary school teachers regarding their job satisfaction and their school s organizational creativity, Element. Educ., 8(2): Appendix Table 1: Job Satisfaction Level of Different Employee in Case of Nature of Work * Nature of Work Cross tabulation Nature Of Work Satisfied Count NCB % within.0% 5.4% 44.6% 41.1% 8.9% 100.0% Count PCB % within.5% 8.8% 42.3% 34.9% 13.5% 100.0% Count FCB % within.0%.0% 46.4% 46.4% 7.1% 100.0% Count NBFI % within.0%.0% 100.0%.0%.0% 100.0% Count % within.3% 7.3% 43.3% 37.0% 12.0% 100.0% Value Df Asymp. Sig. (2-sided) Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 11 cells (55.0%) have expected count less than 5. The minimum expected count is

8 A. Latif et al. Table no 2: Job Satisfaction Level of Different Experience Employee in Case of Transfer Experience * Transfer Policy Cross tabulation Transfer Policy Satisfied Count <10 % within Experience 2.4% 9.9% 56.5% 28.9% 2.4% 100.0% Count Experience <20 % within Experience.0% 7.7% 51.3% 35.9% 5.1% 100.0% Count <30 % within Experience 25.0% 50.0% 25.0%.0%.0% 100.0% Count % within Experience 2.7% 10.7% 55.0% 29.0% 2.7% 100.0% Value Df Asymp. Sig. (2-sided) Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 8 cells (53.3%) have expected count less than 5. The minimum expected count is.21. Table no 3: Job Satisfaction of Different Education Level Employee in Case of Communication System Education * Communication System Cross tabulation Communication System Satisfied Count Undergraduate % within Education.0%.0%.0% 100.0%.0% 100.0% Count Education Graduate % within Education.0% 9.8% 52.5% 31.1% 6.6% 100.0% Count Post Graduate % within Education.8% 9.2% 51.3% 29.8% 8.8% 100.0% Count % within Education.7% 9.3% 51.3% 30.3% 8.3% 100.0% 174

9 Value Df Asymp. Sig. (2-sided) Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 7 cells (46.7%) have expected count less than 5. The minimum expected count is.01. Salary Table no 4: Job Satisfaction Level of Different Salary Employee in Case of Promotion Salary * Promotion Cross tabulation Promotion Satisfied Count <30000 % within Salary 4.7% 24.7% 35.3% 34.1% 1.2% 100.0% Count <50000 % within Salary.0% 11.6% 28.2% 50.8% 9.4% 100.0% Count <80000 % within Salary.0%.0% 21.2% 63.6% 15.2% 100.0% Count > % within Salary.0%.0%.0% 100.0%.0% 100.0% Count % within Salary 1.3% 14.0% 29.3% 47.7% 7.7% 100.0% Table no 5: Job Satisfaction Level of Different Employee in Case of Promotion * Promotion Cross tabulation Promotion Satisfied Count NCB % within 5.4% 30.4% 28.6% 28.6% 7.1% 100.0% Count PCB % within.5% 11.6% 32.1% 50.7% 5.1% 100.0% Count FCB % within.0%.0% 7.1% 64.3% 28.6% 100.0% Count NFI % within.0%.0% 100.0%.0%.0% 100.0% Count % within 1.3% 14.0% 29.3% 47.7% 7.7% 100.0% 175

10 A. Latif et al. Value Df Asymp. Sig. (2-sided) Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 11 cells (55.0%) have expected count less than 5. The minimum expected count is.01. Table no 6: Job satisfaction level of different experience employee in case of coworker Experience * Coworkers Cross tabulation Coworkers Satisfied Count <10 % within Experience.8% 7.5% 46.2% 32.8% 12.6% 100.0% Count Experience <20 % within Experience.0% 7.7% 56.4% 25.6% 10.3% 100.0% Count <30 % within Experience.0%.0% 75.0% 12.5% 12.5% 100.0% Count % within Experience.7% 7.3% 48.3% 31.3% 12.3% 100.0% Value Df Asymp. Sig. (2-sided) Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 9 cells (60.0%) have expected count less than 5. The minimum expected count is.05. Table no 7: Job satisfaction level of different salary employee in case of pay Salary * Pay Cross tabulation Pay Satisfied Count <30000 % within Salary 2.4% 18.8% 31.8% 43.5% 3.5% 100.0% Count <50000 % within Salary.0% 5.0% 19.9% 64.6% 10.5% 100.0% Salary Count <80000 % within Salary.0%.0% 6.1% 66.7% 27.3% 100.0% Count > % within Salary.0%.0%.0% 100.0%.0% 100.0% Count % within Salary.7% 8.3% 21.7% 59.0% 10.3% 100.0% 176

11 Value df Asymp. Sig. (2-sided) Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 10 cells (50.0%) have expected count less than 5. The minimum expected count is.01. Designation Table no 8: Job satisfaction level of different designation employee in case of pay Designation * Pay Cross tabulation Pay Satisfied >AVP Count % within Designation.0%.0%.0% 100.0%.0% 100.0% SPO Count % within Designation 50.0%.0% 50.0%.0%.0% 100.0% PO Count % within Designation.0% 11.5% 34.6% 46.2% 7.7% 100.0% SO Count % within Designation.0% 11.8% 47.1% 35.3% 5.9% 100.0% Officer Count % within Designation.0% 8.1% 17.9% 59.5% 14.5% 100.0% Junior Count Officer % within Designation 1.4% 8.5% 19.7% 69.0% 1.4% 100.0% Assistant Junior Officer Count % within Designation.0%.0% 25.0% 50.0% 25.0% 100.0% Count % within Designation.7% 8.3% 21.7% 59.0% 10.3% 100.0% Value df Asymp. Sig. (2-sided) Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association a. 24 cells (68.6%) have expected count less than 5. The minimum expected count is