EMPLOYEE MORALE AND ITS RELATIONSHIP WITH JOB STRESS

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1 CHAPTER-4 EMPLOYEE MORALE AND ITS RELATIONSHIP WITH JOB STRESS In the current panorama where customer sovereignty rules, i.e. customer is the king, for the banks to have a competitive edge they need to serve the customers well through pleasant and helpful employees bearing high morale. Investment in people is, in fact, the current mandate of workplace, i.e. development of employees through training and complementing them with technology is now being seen as a must for success. However, coping with work stress in today s uncertain climate proves to be emotional roller coaster for employees everywhere. Layoffs and budget cuts have become bywords in the workplace, and the result is increased fear, uncertainty, and higher levels of stress together with unfavourable psychological implications. Job stress and employee morale are, in fact, highly personalized phenomenon and can vary widely even in identical situations for different reasons. This chapter, therefore, seeks to explore the prevalent employee morale level in the banking sector and compares it across the three sectors of banks. 196

2 This chapter is mainly concerned with analysis and interpretation of data collected through questionnaire-cum-scale for employee morale and to figure out important and dominant indices of employee morale. Further, an attempt has been made to analyze the relationship between employee morale and job stress in banking sector. The data analysis and interpretation of employee morale is as follows: Overall employee morale in banking sector. Examining different levels of employee morale, i.e. high, moderate and low among the bank executives with their numbers and percentages. Difference in employee morale level of public, private and foreign sector bank executives, i.e. inter-bank comparison of employee morale level. Index-wise analysis of employee morale in public, private and foreign sector bank executives. Relationship between job stress and employee morale in public, private and foreign sector banks as well as overall banking sector. Sub variable-wise analysis of job stress in relation to employee morale in overall banking industry. Sub variable-wise analysis of job stress in relation to employee morale in public, private and foreign sector banks under study. 197

3 The following hypotheses have been tested through analysis of data: The executives of public, private and foreign sector banks have different levels of employee morale. Job stress has a relationship with employee morale. Overall Employee Morale in Banking Sector On the basis of questionnaire-cum-scale the overall mean scoring of employee morale for total sample (N=400) turned out to be 2.68, S.D.=0.50. This implies that majority of banking sector executives experience moderate level of employee morale. So as to study distribution pattern of public, private and foreign sector bank executives across levels of employee morale, the respondents were classified into three categories on the basis of their employee morale score and were compared in terms of their number and percentage. The results are shown in Table 4.1. Table 4.1: Level of Employee Morale in Public, Private and Foreign Sector Bank Executives Category No. of Executives High Level of Employee Morale Moderate Level Employee Morale of Low Level of Employee Morale Public Sector Bank (SBI) (20.00%) 133 (66.50%) 27 (13.50%) Private Sector Bank (ICICI (14.00%) 107 (71.33%) 22 (14.67%) Bank Ltd.) Foreign Sector Bank (Citibank) (34.00%) 17 (34.00%) 16 (32.00%) Note: The figures given in parentheses denote percentages of executives from all the three banking sectors representing different categories of employee morale. 198

4 The results presented in the above table regarding employee morale among the selected executives working in public, private and foreign sector banks have also been displayed clearly in Figures 4.1, 4.2 and 4.3 respectively. Figure 4.1: Categorization of Executives from SBI as per their Level of Employee Morale Public Sector Bank Executives 13.50% 66.50% 20% High Level of Employee Morale Moderate Level of Employee Morale Low Level of Employee Morale Figure 4.2: Categorization of Executives from ICICI Bank Ltd. as per their Level of Employee Morale Private Sector Bank Executives 14.67% 14% 71.33% High Level of Employee Morale Moderate Level of Employee Morale Low Level of Employee Morale 199

5 Figure 4.3: Categorization of Executives from Citibank as per their Level of Employee Morale Foreign Sector Bank Executives 32% 34% 34% High Level of Employee Morale Moderate Level of Employee Morale Low Level of Employee Morale Table 4.1 shows the number and percentage of high, moderate and low morale bearing bank executives across the three sectors of banks. The table reveals that as many as 17 (34%), 40 (20%) and 21 (14%) executives from the foreign, public and private sector banks respectively fall in the high level of employee morale category. As far as moderate level of employee morale is concerned, as many as 107 (71.33%), 133 (66.50%) and 17 (34%) executives from the private, public and foreign sector banks respectively belong to this category. While considering low level of employee morale category 16 (32%) executives from the foreign sector bank, 22 (14.67%) from the private sector bank and 27 (13.50%) executives from the public sector bank fall in it. The table further depicts that in the case of public sector bank under study, majority of the executives, i.e., 66.50% bear moderate level 200

6 of employee morale, while 20% and 13.50% of them are having high and low level of employee morale respectively. As far as the selected private sector bank is concerned, majority of the executives, i.e., 71.33% bear moderate level of employee morale, whereas14.67% and 14% of them are having low and high level of employee morale respectively. While taking into account the foreign sector bank, it has been found that an equal proportion of executives, i.e., 34% are having high and moderate level of employee morale. However, the percentage for those bearing low level of employee morale is 32%. Hence, the overall results indicate that a moderate level of morale exists among the executives working in all the three banks under study. Of all the three banks under study, Citibank in the foreign sector has the greatest proportion (34%) of high morale bearing executives, vis-a-vis SBI, a public sector bank (20%) and ICICI Bank Ltd., a private sector bank (14%). However, Citibank also has the highest proportion (32%) of executives bearing low morale, vis-a-vis ICICI Bank Ltd. (14.67%) and SBI (13.50%). It reflects that unlike public and private sector banks under study where majority of the executives bear moderate level of morale, those in the foreign sector bank have not shown any specific inclination, and they are more or less evenly spread across all the three categories showing different levels of morale. 201

7 A Comparison among the Executives of Public, Private and Foreign Sector Banks on the basis of Employee Morale Level Table 4.2 establishes whether the difference in terms of employee morale * among the executives belonging to the three banks under study is significant or not. This has been ascertained by using the statistical tools like mean, standard deviation, one-way ANOVA and t-test. Mean has been calculated to find out the difference of employee morale among the executives of public, private and foreign sector banks. Standard deviation has been calculated for judging the representativeness of the mean scores. One-way ANOVA was calculated to know whether the executives from the three selected banks differ significantly on the basis of employee morale. Further, in order to determine specific difference paired analysis of the group was performed. This was done using multiple two-sample t-tests. T-test was applied to know the significance of difference among the executives of public-private, private-foreign and public-foreign sector banks on the basis of employee morale. The results are presented in Table 4.2. * Note: The scale used in employee morale questionnaire is inverse scale, i.e., higher score implies that the respondent employee has a low level of morale, while lower score implies a higher level of employee morale. 202

8 Table 4.2: Employee Morale in Public, Private and Foreign Sector Bank Executives Category Public Sector Bank (SBI) Private Sector Bank (ICICI Bank Ltd.) Foreign Sector Bank (Citibank) No. of Executives Mean S.D. ANOVA Pub.-Pvt. Pvt.-Foreign Pub.-Foreign F- value Sig. t- value Sig. t- value Sig. t- value Sig Table 4.2 exhibits that the test statistic reported in the analysis of variance column, F=0.15, is insignificant at >0.05 level. It reflects that there is insignificant difference with respect to employee morale in the means across groups. In order to determine the specific difference, paired analysis of the group was performed. The t-test was applied to know the significance of difference among the employees of public-private sector bank executives on the basis of employee morale. The results exhibit insignificant mean difference with regard to employee morale, significant at >0.05 level, among the public and private sector banks executives. This data indicates that public and private sector bank executives experience a similar level of employee morale. The t-test was also applied to know the significance of difference among the private and foreign sector banks executives on the basis of employee morale. The results shown in the table explain insignificant mean difference with regard to employee morale, significant at >0.05 level, among the private and foreign sector banks executives. This data implies that private and foreign sector bank executives under study experience a similar level of 203

9 employee morale. Further, t-test was applied to know the significance of difference among public and foreign sector bank executives on the basis of employee morale. The results provided in the table exhibit insignificant mean difference with regard to employee morale, significant at >0.05 level, among the public and foreign sector banks executives. It reflects that public and foreign sector bank executives experience a similar level of employee morale. Hence, the analysis provides that level of morale among bank executives in public sector (Mean=2.66), foreign sector (Mean=2.685) and private sector (Mean=2.69) is somewhat similar. Reason for this could possibly be that the level of job satisfaction, perception of organizational image, satisfaction with superiors, perception about career growth and satisfaction of emotional and physical needs is more or less balanced across the banking sector. Testing of Hypothesis Thus, the hypothesis that the executives of public, private and foreign sector banks have different levels of employee morale is not accepted because insignificant difference at >0.05 level is found in the three sectors of banks with respect to employee morale, as was confirmed by ANOVA results. Further, insignificant difference at >0.05 level was confirmed from the paired analysis of the three banks done using multiple 204

10 two-sample t-tests. It was found that public, private and foreign sector bank executives experience a similar level of employee morale. Index-wise Analysis of Employee Morale In order to find out the level of employee morale in the selected banks and to compare public, private and foreign sector banks, five indices of employee morale have been included in this study. Mean and standard deviation were calculated for comparative analysis of public, private and foreign sector bank executives. These indices are: 1. Index of Job Satisfaction (IJS) 2. Index of Organizational Image (IOI) 3. Index of Satisfaction with Superiors (ISS) 4. Index of Career Growth (ICG) 5. Index of Satisfaction of Emotional and Physical Needs (EPN). These indices have been analyzed and elucidated with the help of data collected from the respondents belonging to public, private and foreign sector banks. One-way ANOVA was calculated to know whether the executives from these three banking sectors differ significantly on the basis of above mentioned indices of employee morale. Further, in order to determine the specific difference paired analysis of the group was performed. This was done using multiple two-sample t-tests. The t-test 205

11 was applied to know the significance of difference among the public and private sector bank executives, private and foreign sector bank executives, and public and foreign sector bank executives on the basis of these indices of employee morale. 1. Index of Job Satisfaction (IJS) Job satisfaction refers to the feelings and emotional aspects that an individual experiences towards his job as different from intellectual or rational aspects. Table 4.3: Index of Job Satisfaction (IJS): An Inter-Bank Comparison Category No. of Executives Public Sector Bank (SBI) Private Sector Bank (ICICI Bank Ltd.) Foreign Sector Bank (Citibank) **Significant at 0.01 level * Significant at 0.05 level Mean S.D. ANOVA Pub.-Pvt. Pvt.-Foreign Pub.-Foreign F-value Sig. t-value Sig. t- value 11.95** ** * Sig. t- value Sig Table 4.3 exhibits that the test statistic reported in the analysis of variance column, F=11.95, is significant at <0.01 level. This means that there is a significant difference in the means across the three sectors of banks on the basis of Index of Job Satisfaction. In order to determine the specific difference, paired analysis of the group was performed. The t-test results shown in the table exhibit significant mean difference with regard to IJS, significant at <0.01 level, among the public and private sector banks executives. It is evident from the table that IJS mean score is 206

12 higher in the case of private sector bank executives (Mean=2.86, S.D.=0.66) as compared to those in the public sector bank (Mean=2.51, S.D.=0.62). The data reflects that public sector bank executives experience more job satisfaction as compared to those in the private sector. The t-test results demonstrated in the table show significant mean difference, significant at <0.05 level, among the private and foreign sector banks executives with regard to IJS. It is apparent from the table that IJS mean score is higher in the case of private sector bank executives (Mean=2.86, S.D.=0.66) as compared to those in the foreign sector bank under study (Mean=2.58, S.D.=0.85). The data depicts that foreign sector bank executives experience more job satisfaction as compared to those in the private sector bank under study. Further, t-test results given in the table exhibit insignificant mean difference with regard to IJS, significant at >0.05 level, among the public and foreign sector banks executives. This data indicates that public as well as foreign sector bank executives experience a similar level of job satisfaction. Hence, the analysis provides that executives in public and foreign sector banks, with the mean values of 2.51 and 2.58 respectively, experience a similar level of job satisfaction, followed by those in the private sector bank, with the mean value of

13 The whole analysis leads us to conclude that Job Satisfaction, an index of employee morale, is experienced more favourably by the executives in public and foreign sector banks as compared to those in the private sector bank. It suggests that in public and foreign sector banks the employees have a more positive feeling on doing a job vis-a-vis the private sector bank. The executives in the public and foreign sector banks under study, i.e., SBI and Citibank have a more fulfilling experience on doing their job and this contributes towards boosting their morale. 2. Index of Organizational Image (IOI) This measures whether an employee s opinion about his organization is one of pride or disgust, or whether his feelings are ambivalent. Table 4.4: Index of Organizational Image (IOI): An Inter-Bank Comparison Category No. of Executives Public Sector Bank (SBI) Private Sector Bank (ICICI Bank Ltd.) Foreign Sector Bank (Citibank) * Significant at 0.05 level Mean S.D. ANOVA Pub.-Pvt. Pvt.-Foreign Pub.-Foreign F- value 3.42* Sig. t- value 2.56* Sig. t- value Sig. t- value Sig Table 4.4 explains that the test statistic reported in the analysis of variance column, F=3.42, is significant at <0.05 level. This shows that there is a significant difference in the means across the three sectors of banks with respect to Index of Organizational Image. However, in order 208

14 to ascertain a specific difference, paired analysis of the group was performed. The t-test results given in the table exhibit significant mean difference with regard to IOI, significant at <0.05 level, among the public and private sector banks executives. It is evident from the table that IOI mean score is higher in the case of public sector bank executives (Mean=2.45, S.D.=0.78) as compared to those in private sector bank (Mean=2.26, S.D.=0.49) under study. This data indicates that private sector bank executives perceive organizational image more favourably as compared to their counterparts in public sector bank. The t-test results given in the table show insignificant mean difference with regard to IOI, significant at >0.05 level, among the private and foreign sector banks executives. The data brings out that private and foreign sector banks executives have a similar perception about organizational image. Further, t-test results presented in the table exhibit insignificant mean difference with regard to IOI, significant at >0.05 level, among the public and foreign sector banks executives. This indicates that public and foreign sector banks executives perceive organizational image similarly. Therefore, the level of organizational image related morale is apparently the highest among executives in private sector bank (Mean=2.26) closely followed by those in foreign and public sector banks with the mean values of 2.34 and 2.45 respectively. 209

15 On the basis of above analysis, we can deduce that Organizational Image, an index of employee morale, is perceived somewhat more favourably by the executives in private sector bank as compared to those in foreign and public sector banks. It suggests that in private sector bank the employees have a slightly more positive image about their organization vis-a-vis employees from the other two banking sectors. The executives in the private banking sector also feel attached with it and consider themselves a part of a team that has to strive towards building this image which enhances their morale. 3. Index of Satisfaction with Superiors (ISS) This index measures whether the leadership satisfies the common desires of the men over whom it is exercised. Table 4.5: Index of Satisfaction with Superiors (ISS): An Inter-Bank Comparison Category No. of Executives Public Sector Bank (SBI) Private Sector Bank (ICICI Bank Ltd.) Foreign Sector Bank (Citibank) **Significant at 0.01 level Mean S.D. ANOVA Pub.-Pvt. Pvt.-Foreign Pub.-Foreign F- value 9.67** Sig. t-value Sig. t- value 4.82** Sig. t- value Sig Table 4.5 explains that the test statistic reported in the analysis of variance column, F=9.67, is significant at <0.01 level. This means that there is a significant difference in the means across the three sectors of

16 banks with regard to Index of Satisfaction with Superiors. In order to determine the specific difference, paired analysis of the group was performed. The t-test results produced in the table exhibit significant mean difference with regard to ISS, significant at <0.01 level, among the public and private sector banks executives. It is evident from the table that ISS mean score is higher in the case of private sector bank executives (Mean=3.04, S.D.=0.77) as compared to those in public sector bank (Mean=2.67, S.D.=0.66). This data indicates that public sector bank executives experience more satisfaction with superiors as compared to their counterparts in private sector bank. The t-test results given in the table show insignificant mean difference with regard to ISS, significant at >0.05 level, among the private and foreign sector banks executives. This data indicates that private and foreign sector banks executives experience a similar level of satisfaction with superiors. Further, t-test results presented in the table exhibit insignificant mean difference with regard to ISS, significant at >0.05 level, among the public and foreign sector banks executives. The data brings out that public and foreign sector bank executives experience a similar level of satisfaction with superiors. Therefore, the analysis provides that public sector bank executives experience the highest level of satisfaction with superiors (Mean=2.67), closely followed by those in foreign sector (Mean=2.82) and private sector (Mean=3.04) banks. 211

17 On the basis of above analysis, it can be concluded that Satisfaction with Superiors, an index of employee morale, is experienced somewhat more favourably by the executives in public sector banks as compared to those in foreign and private sector banks. It suggests that the executives in public banking sector perceive leadership to be a little more effective as compared to the other two sectors of banks. The executives belonging to the public banking sector are more satisfied and pleased with the traits of their superior s personality as well as the nature of his problem solving methods, communications and decision-making patterns, etc. which in turn raises their own morale. 4. Index of Career Growth (ICG) The index of career growth tries to measure the optimism with which an employee perceives his future in the company. Table 4.6: Index of Career Growth (ICG): An Inter-Bank Comparison Category Public Sector Bank (SBI) Private Sector Bank (ICICI Bank Ltd.) Foreign Sector Bank (Citibank) No. of Executives Mean S.D. ANOVA Pub.-Pvt. Pvt.-Foreign Pub.-Foreign F- value Sig. t- value Sig. t- value Sig. t- value Sig Table 4.6 demonstrates that the test statistic reported in the analysis of variance column, F=2.10, is significant at >0.05 level. It reflects that there is insignificant difference in the means across the three sectors of 212

18 banks on account of Index of Career Growth. In order to determine the specific difference, paired analysis of the group was performed. The t-test results presented in the table exhibit insignificant mean difference with regard to ICG, significant at >0.05 level, among the public and private sector banks executives. This data indicates that public and private sector banks executives perceive career growth in their respective banks rather similarly. The t-test results provided in the table show insignificant mean difference with regard to ICG, significant at >0.05 level, among the private and foreign sector banks executives. The data describes that private and foreign sector bank executives share a similar perception regarding career growth in their respective banks. Further, t-test results highlighted in the table exhibit insignificant mean difference with regard to ICG, significant at >0.05 level, among the public and foreign sector banks executives. We can infer from the data that public and foreign sector bank executives perceive career growth quite similarly. Therefore, the analysis provides that executives from public, private and foreign sector banks under study share a fairly similar optimism about career growth. On the basis of above analysis, it can be concluded that Career Growth, an index of employee morale, is perceived essentially alike by 213

19 employees from all the three sectors of banks. It suggests that the employees across the banking sector share similar beliefs about expectancy of a rewarding future in their work, which could possibly be caused by measures being taken by all sectors of banks so as to retain proficient bank employees. 5. Index of Satisfaction of Emotional and Physical Needs (EPN) This index measures the degree to which the emotional and physical needs of the employees are satisfied. Table 4.7: Index of Satisfaction of Emotional and Physical Needs (EPN): An Inter-Bank Comparison Category No. of Executives Public Sector Bank (SBI) Private Sector Bank (ICICI Bank Ltd.) Foreign Sector Bank (Citibank) **Significant at 0.01 level * Significant at 0.05 level Mean S.D. ANOVA Pub.-Pvt. Pvt.-Foreign Pub.-Foreign F- value 3.78* Sig. t- value 2.62** Sig. t- value 2.02* Sig. t- value Sig Table 4.7 demonstrates that the test statistic reported in the analysis of variance column, F=3.78, is significant at <0.05 level. It reflects that there is a significant difference in the means across the three sectors of banks on account of Index of Satisfaction of Emotional and Physical Needs. In order to determine the specific difference, paired analysis of the group was performed. The t-test results presented in the table exhibit significant mean difference with regard to EPN, significant at <0.01 level, 214

20 among the public and private sector banks executives. It is evident from the table that EPN mean score is higher in the case of public sector bank executives (Mean=3.00, S.D.=0.83) as compared to those in private sector bank (Mean=2.79, S.D.=0.66). These values explain that private sector bank executives experience greater satisfaction of emotional and physical needs as compared to those in the public sector bank under study. The t-test results provided in the table show significant mean difference with regard to EPN, significant at <0.05 level, among the private and foreign sector banks executives. It is evident from the table that EPN mean score is higher in the case of foreign sector bank executives (Mean=3.02, S.D.=0.86) as compared to those in private sector bank under study (Mean=2.79, S.D.=0.66). These values describe that private sector bank executives experience more satisfaction of emotional and physical needs as compared to those in foreign sector bank. Further, t-test results given in the table exhibit insignificant mean difference with regard to EPN, significant at >0.05 level, among the public and foreign sector banks executives. The data indicates that the perceived level of satisfaction of emotional and physical needs of public sector bank executives is rather similar to that of foreign sector bank executives under study. Hence, the analysis brings out that the highest 215

21 level of satisfaction of emotional and physical needs is experienced by the private sector bank executives as is reflected by their mean value of 2.79, followed by public and foreign sector bank executives under study, showing a similar level of satisfaction of emotional and physical needs with the mean values of 3.00 and 3.02 respectively. The above discussion leads us to conclude that Satisfaction of Emotional and Physical Needs, an index of employee morale, is experienced more favourably by the executives in private sector bank as compared to those in public and foreign sector banks. It suggests that in private sector bank the understanding of the nature of employee needs and the degree to which they are satisfied is relatively more vis-a-vis other two sectors of banks. The executives in the private sector are well provided for in terms of appreciation, rewards, incentives, salary, perks, etc. and in proper quantum to the employees efforts at workplace thereby contributing to morale enhancement of employees. The following table sums up the above findings displaying the comparative analysis undertaken on the basis of employee morale and its various indices in SBI (a public sector bank), ICICI Bank Ltd. (a private sector bank) and Citibank (a foreign sector bank). The employee morale 216

22 position with respect to these indices among the executives in the banks under study is presented at a glance as follows: Table 4.8: Employee Morale Position in the Banks under Study with respect to its Various Indices Variable/ Position IJS SBI Citibank Insignificant difference between SBI and Citibank ICICI Bank Ltd. IOI ISS ICG ICICI Bank Ltd. Citibank SBI Insignificant difference between ICICI Bank Ltd. and Citibank Insignificant difference between Citibank and SBI SBI Citibank ICICI Bank Ltd. Insignificant difference between SBI and Citibank Insignificant difference between Citibank and ICICI Bank Ltd. ICICI Bank Ltd. Citibank SBI Insignificant difference between ICICI Bank Ltd., Citibank and SBI EPN ICICI Bank Ltd. SBI Citibank Insignificant difference between SBI and Citibank Employee Morale SBI Citibank ICICI Bank Ltd. Insignificant difference between SBI, Citibank and ICICI Bank Ltd. 217

23 Table 4.9: Index-wise Analysis of Employee Morale in Public, Private and Foreign Sector Banks Number Sector Public Private Foreign Bank SBI ICICI Bank Ltd. Citibank ANOVA Pub.-Pvt. Pvt.-Foreign Pub.-Foreign Variable Mean S.D. Mean S.D. Mean S.D. F-value Sig. t-value Sig. t-value Sig. t-value Sig. IJS ** ** * IOI * * ISS ** ** ICG EPN * * * **Significant at 0.01 level * Significant at 0.05 level 218

24 Overall Index-wise Analysis of Employee Morale The questionnaire included five indices of employee morale for which mean and standard deviation were computed for having a comparison among public, private and foreign sector bank executives. The results are presented in Table 4.9. Table 4.9 illustrates index-wise mean score of employee morale in public, private and foreign sector banks. Evidently, in the case of public sector bank executives, the Index of Satisfaction of Emotional and Physical Needs (EPN) has the highest score (Mean=3.00, S.D.=0.83), followed by Index of Satisfaction with Superiors (ISS) (Mean=2.67, S.D.=0.66), Index of Career Growth (ICG) (Mean=2.572, S.D.=0.81), and Index of Job Satisfaction (IJS) (Mean=2.51, S.D.=0.62). However, the Index of Organizational Image (IOI) (Mean=2.45, S.D.=0.78) has recorded the least score. In the case of private sector bank executives, index ISS has the highest score (Mean=3.04, S.D.=0.77), followed by IJS (Mean=2.86, S.D.=0.66), EPN (Mean=2.79, S.D.=0.66), and ICG (Mean=2.42, S.D.=0.58). However, the least score has been registered by the index IOI (Mean=2.26, S.D.=0.49). 219

25 While taking into account the case of foreign sector bank executives, index EPN has recorded the highest score (Mean=3.02, S.D.=0.86), followed by ISS (Mean=2.82, S.D.=1.15), IJS (M 2.58, SD 0.85), and ICG (Mean=2.567, S.D.=0.80). However, the least score has been found in the case of index IOI (Mean=2.34, S.D.=0.61). The results bring out that index EPN has contributed the maximum towards lowering employee morale in both public and foreign sector banks. This implies that in both public and foreign sector banks, understanding of the nature of employee needs and the degree to which they are satisfied is relatively less. The executives in both these banks are not adequately provided for in terms of appreciation, rewards, incentives, perks, etc. Improper quantum of remuneration in relation to employees efforts at workplace further dampens the morale of employees, thereby causing the overall employee morale level of both public and foreign sector banks to dwindle. The results also reveal that index ISS has contributed the most towards lowering employee morale among the executives in the private sector bank under study. This means that in private sector banks employees perceive leadership to be less effective as compared to the other two sectors of banks. The employees in the private sector are less contended with the traits of their superior s personality as 220

26 well as the nature of his problem solving methods, communications and decision-making patterns, etc. which in turn lowers their own morale. Quintessentially, Index of Satisfaction of Emotional and Physical Needs, and Index of Satisfaction with Superiors require improvement so as to raise employee morale level in the case of public sector bank executives. However, in private sector bank executives Index of Satisfaction with Superiors, Index of Job Satisfaction, and Index of Satisfaction of Emotional and Physical Needs require betterment to raise employee morale level. While in the case of foreign sector bank executives, Index of Satisfaction of Emotional and Physical Needs, and Index of Satisfaction with Superiors are required to be improved for raising the employee morale level. A comparison among the executives in public, private and foreign sector banks under study reveals that Index of Satisfaction of Emotional and Physical Needs is the common highest employee morale reducer in the case of public and foreign sector bank executives, while Index of Satisfaction with Superiors is another predominant employee morale reducer in banking sector. It has also been observed that overall Index of Organizational Image contributes the least towards low employee morale. It suggests that in overall banking sector the employees have a fairly positive image about their organization. Employees in the banking sector 221

27 feel close to the organization and consider themselves a part of a team that has to further improve this image which enhances their morale. ANOVA results further reveal that the executives of public, private and foreign sector banks differ significantly at <0.05 level on the basis of four indices of employee morale. Of these four indices of employee morale, two indices, namely, Index of Job Satisfaction and Index of Satisfaction with Superiors are highest in the case of executives belonging to public sector bank (SBI) and lowest in the case of executives from private sector bank (ICICI Bank Ltd.) under study. The other two indices, namely, Index of Organizational Image, and Index of Satisfaction of Emotional and Physical Needs are highest in the case of executives belonging to private sector bank (ICICI Bank Ltd.) and lowest in the case of executives belonging to public sector bank (SBI) and foreign sector bank (Citibank) respectively. However, on the basis of Index of Career Growth there is insignificant difference at >0.05 level among the executives of public, private and foreign sector banks. This implies that overall indexwise employee morale does not show any categorical inclination. Therefore, this validates what was previously established from Table 4.2 that the level of employee morale among the executives of public, private and foreign sector banks is similar as reflected by the mean values of 2.66, 2.69 and respectively. 222

28 Figure 4.4 highlights the mean scores with regard to employee morale and its five indices among the executives in public, private and foreign sector banks under study. Figure 4.4: Overall Index-wise Analysis of Employee Morale in Public, Private and Foreign Sector Banks under Study Mean Scores Public Sector Bank Private Sector Bank Foreign Sector Bank Employee Morale and Indices Consequently, it can be said that public, private and foreign sector bank executives bear a similar level of employee morale which was found to be moderate. Index-wise analysis of employee morale reveals that Index of Satisfaction of Emotional and Physical Needs is the common highest employee morale reducer in the case of both public and foreign sector bank executives, while Index of Satisfaction with Superiors is another predominant employee morale reducer in the banking sector. It was also observed that overall Index of Organizational Image contributes the least towards low employee morale. 223

29 Relationship between Job Stress and Employee Morale in Selected Public, Private and Foreign Sector Banks & Overall Banking Sector Karl Pearson s coefficient of correlation has been used to find a relationship between high job stress and low employee morale in totality as well as through the ten sub variables of job stress. The significance of coefficient of correlation was also calculated through 2-tailed significant value. Interpretation of the size of a correlation coefficient depends on the context and purposes. For the purpose of this study, the following criterion has been used for the interpretation of coefficient of correlation: Correlation Negative Positive None 0.09 to to 0.09 Weak 0.3 to to 0.3 Moderate 0.5 to to 0.5 Strong 1.0 to to 1.0 As already explained, in this study, an inverse scale has been used to measure the employee morale. Higher score means low level of morale, while lower score indicates high level of morale. Hence, the study undertakes correlation between high job stress and low employee morale. 224

30 Table 4.10: Relationship between Job Stress and Low Employee Morale in Selected Public, Private and Foreign Sector Banks & Overall Banking Sector Banks Coefficient of Correlation Sig. (2-tailed) (r) Public Sector Bank (SBI) 0.33** N=200 Private Sector Bank (ICICI Bank Ltd.) N= ** Foreign Sector Bank 0.93** (Citibank) N=50 Overall Banking Sector 0.57** N=400 **Significant at 0.01 level (2-tailed) A relationship between high job stress and low employee morale was found through Karl Pearson s coefficient of correlation. In the case of SBI, high job stress and low employee morale are moderately related, as coefficient of correlation is 0.33, which lies between 0.3 and 0.5. To know the significance of correlation, a 2-tailed significant value has been calculated, which is found to be It means correlation is significant at 0.01 level. The results reveal that high job stress is moderately and positively related to low employee morale in public sector bank. It explains that the executives experiencing high job stress in the public sector bank under study will show low morale or vice versa. However, in the case of ICICI Bank Ltd., the correlation coefficient value of 0.62 which falls between 0.5 and 1.0, establishes that high job stress and low employee morale are strongly related to each 225

31 other. The correlation between high job stress and low employee morale is found to be positive. However, this correlation is stronger than the one observed in public sector bank under study. The significant (2-tailed) value of depicts that the correlation is significant between high job stress and low employee morale at 0.01 level. The strong and positive correlation between high job stress and low employee morale suggests that a high job stress is likely to dampen the employee morale in private sector bank or vice versa. Unfavourable employee morale is sure to augment job stress. While considering the case of Citibank, the correlation coefficient value of 0.93 which lies between 0.5 and 1.0, and is close to 1, establishes that high job stress and low employee morale are very strongly related to each other. The correlation between high job stress and low employee morale is found to be positive. However, this correlation is quite stronger than the one observed in public and private sector banks. The significant (2-tailed) value of reveals that the correlation is significant between high job stress and low employee morale at 0.01 level. A highly strong and positive correlation between high job stress and low employee morale implies that increased job stress is likely to affect the employee morale 226

32 adversely in foreign sector bank or vice versa. Hence, low employee morale is likely to raise job stress. The correlation coefficient value of 0.57 falling between 0.5 and 1.0 in the case of overall banking sector establishes that high job stress and low employee morale are strongly and positively associated. This strong and positive association itself reveals that high job stress will lead to low employee morale. An adverse stress level should be perceived as poor employee morale or vice versa. Significant (2-tailed) value has been calculated to know the significance of correlation which is found to be It means correlation is significant at 0.01 level. Thus, the overall results pertaining to the public, private and foreign sector banks under study reveal that job stress has an adverse effect on the morale of executives. Sub variable-wise Analysis of Job Stress in relation to Employee Morale in the Overall Banking Sector The objective explained above has been further studied by focusing on the relationship of each sub variable of job stress with low employee morale. Table 4.11 demonstrates sub variable-wise values of coefficient of correlation in the overall banking sector. 227

33 Table 4.11: Relationship between Sub variables of Job Stress and Low Employee Morale in the Overall Banking Sector Sub variables of Job Stress Coefficient of Correlation r Inter-Role Distance (IRD) 0.52** Role Stagnation (RS) 0.48** Role Expectation Conflict (REC) 0.50** Role Erosion (RE) 0.44** Role Overload (RO) 0.35** Role Isolation (RI) 0.42** Personal Inadequacy (PIN) 0.39** Self-Role Distance (SRD) 0.30** Role Ambiguity (RA) 0.36** Resource Inadequacy (RIN) 0.54** **Significant at 0.01 level (2-tailed) It is evident from the table that Resource Inadequacy has the highest value of coefficient of correlation (r=0.54), followed by Inter- Role Distance (r=0.52), Role Expectation Conflict (r=0.50), Role Stagnation (r=0.48), Role Erosion (r=0.44), Role Isolation (r=0.42), Personal Inadequacy (r=0.39), Role Ambiguity (r=0.36), Role Overload (r=0.35) and Self-Role Distance (r=0.30). The results given above reveal that in the overall banking sector Resource Inadequacy sub variable of job stress with the highest value of coefficient of correlation has shown a strong and positive correlation with low employee morale. It means that in the absence of having readily available resources, viz. information, people, material, finance and other 228

34 facilities to execute their work, the employees will have low level of morale. Inter-Role Distance and Role Expectation Conflict are other sub variables that have shown a strong and positive correlation with low employee morale. The remaining seven sub variables, viz. Role Stagnation, Role Erosion, Role Isolation, Personal Inadequacy, Role Ambiguity, Role Overload and Self-Role Distance have shown a moderate and positive correlation with low employee morale. It shows that executives adversely affected by these sub variables will possess low level of morale. Overall, in the banking sector, three sub variables of job stress have shown a statistically significant strong and positive correlation with low employee morale and the remaining seven sub variables have shown a statistically significant moderate and positive correlation with low employee morale. Sub variable-wise Analysis of Job Stress in relation to Employee Morale in Public, Private and Foreign Sector Banks After studying the relationship of employee morale with each sub variable of job stress in the overall banking sector, an endeavour has also been made to study this relationship comparatively in public, private and 229

35 foreign sector banks under study. The coefficient of correlation values with regard to all the sub variables of job stress in the selected banks have been presented in Table Table 4.12: Relationship between Sub variables of Job Stress and Low Employee Morale in Public, Private and Foreign Sector Banks Sub variables of Job Stress Coefficient of Correlation r in the Public Sector Bank (SBI) (N=200) Coefficient of Correlation r in the Private Sector Bank (ICICI Bank Ltd.) (N=150) Coefficient of Correlation r in the Foreign Sector Bank (Citibank) (N=50) Inter-Role Distance (IRD) 0.44** 0.42** 0.84** Role Stagnation (RS) 0.38** 0.41** 0.79** Role Expectation Conflict (REC) 0.27** 0.49** 0.86** Role Erosion (RE) 0.20** 0.70** 0.66** Role Overload (RO) ** 0.93** Role Isolation (RI) 0.25** 0.40** 0.92** Personal Inadequacy (PIN) ** 0.92** Self-Role Distance (SRD) ** 0.89** Role Ambiguity (RA) ** 0.91** Resource Inadequacy (RIN) 0.41** 0.51** 0.89** **Significant at 0.01 level (2-tailed) It is apparent from the table that in the case of public sector bank under study, Inter-Role Distance sub variable has the highest value of coefficient of correlation (0.44) followed by Resource Inadequacy (0.41), Role Stagnation (0.38), Role Expectation Conflict (0.27), Role Isolation (0.25), Role Erosion (0.20) and Personal Inadequacy (0.11). 230

36 The other three sub variables, viz. Self-Role Distance, Role Overload and Role Ambiguity have shown no correlation with low employee morale. Similarly, in the case of private sector bank under study, Role Erosion sub variable has the highest value of coefficient of correlation (0.70) followed by Role Ambiguity (0.61), Resource Inadequacy (0.51), Role Expectation Conflict (0.49), Role Overload (0.46), Inter-Role Distance (0.42), Personal Inadequacy (0.42), Role Stagnation (0.41), Role Isolation (0.40) and Self-Role Distance (0.26). However, in the case of foreign sector bank under study, Role Overload sub variable has the highest value of coefficient of correlation (0.93), followed by Role Isolation (0.92), Personal Inadequacy (0.92), Role Ambiguity (0.91), Self-Role Distance (0.89), Resource Inadequacy (0.89), Role Expectation Conflict (0.86), Inter-Role Distance (0.84), Role Stagnation (0.79) and Role Erosion (0.66). The correlation coefficient values reveal that in public sector bank Inter-Role Distance sub variable of job stress with the highest value of coefficient of correlation has shown a moderate and positive correlation with low employee morale. It means that in the selected public sector bank, if executives face a conflict between the organization role and other roles, i.e., conflict due to inability of sharing time between the work demands and family demands, they will also exhibit lower employee 231

37 morale. Resource Inadequacy and Role Stagnation are other sub variables that have shown a moderate and positive correlation with low employee morale. While Role Expectation Conflict, Role Isolation and Role Erosion are the sub variables that have shown a weak and positive correlation with low employee morale. It means that in the selected public sector bank, if executives experience all these sub variables adversely, they will also bear low morale. Sub variable Personal Inadequacy has also shown a weak and positive correlation with low employee morale however, this correlation is found to be statistically insignificant. The remaining three sub variables, viz. Self-Role Distance, Role Overload and Role Ambiguity have shown no correlation with low employee morale however, this is found to be statistically insignificant. Overall, in the case of SBI, three sub variables of job stress, viz. Inter-Role Distance, Resource Inadequacy and Role Stagnation have shown a statistically significant moderate and positive correlation with low employee morale; three sub variables, viz. Role Expectation Conflict, Role Isolation and Role Erosion have shown a statistically significant weak and positive correlation with low employee morale; one sub variable, viz. Personal Inadequacy has shown a statistically insignificant weak and positive correlation with low employee morale; and the remaining three sub variables, viz. Self-Role Distance, Role Overload and Role Ambiguity 232

38 have shown no correlation with low employee morale. However, this is found to be statistically insignificant. However, in the case of private sector bank under study, Role Erosion sub variable with the highest value of coefficient of correlation has shown a strong and positive correlation with low employee morale. It means that if executives feel that some functions that they would like to perform are being performed by some other roles, they will also bear low morale. Role Ambiguity and Resource Inadequacy are other sub variables that have shown a strong and positive correlation with low employee morale. Role Expectation Conflict, Role Overload, Inter-Role Distance, Personal Inadequacy, Role Stagnation and Role Isolation are the sub variables that have shown a moderate and positive correlation with low employee morale. While Self-Role Distance is the only sub variable that has shown a weak and positive correlation with low employee morale. It means that executives adversely affected by these sub variables will exhibit poor employee morale in the private sector bank. Overall, in the case of ICICI Bank Ltd., three sub variables of job stress, viz. Role Erosion, Role Ambiguity and Resource Inadequacy have exhibited a statistically significant strong and positive correlation with low employee morale; six sub variables, viz. Role Expectation Conflict, Role Overload, Inter-Role Distance, Personal Inadequacy, Role Stagnation and Role 233

39 Isolation have shown a statistically significant moderate and positive correlation with low employee morale; whereas the remaining single sub variable, viz. Self-Role Distance has shown a statistically significant weak and positive correlation with low employee morale. Further, in the case of foreign sector bank under study, Role Overload sub variable with the highest value of coefficient of correlation has shown a strong and positive correlation with low employee morale. It means that if executives feel that there are too many expectations from the significant roles in their role set, they will also bear low morale. Role Isolation, Personal Inadequacy, Role Ambiguity, Self-Role Distance, Resource Inadequacy, Role Expectation Conflict, Inter-Role Distance, Role Stagnation and Role Erosion are other nine sub variables that have shown a strong and positive correlation with low employee morale. It means that executives adversely affected by these sub variables will exhibit poor employee morale. Overall, in the case of Citibank, all the ten sub variables of job stress, viz. Role Overload, Role Isolation, Personal Inadequacy, Role Ambiguity, Self-Role Distance, Resource Inadequacy, Role Expectation Conflict, Inter-Role Distance, Role Stagnation and Role Erosion have exhibited a statistically significant strong and positive correlation with low employee morale. 234