Description
The structural network of institutions that offer financial services within a county. The members of the banking system and the functions they typically perform include: (1) commercial banks that take deposits and make loans, (2) investment banks which specialize in capital market issues and trading, and (3) national central banks that issue currency and set monetary policy.
Project of Training and Development in Banking Sector
ABSTRACT This study explores the relationship between job performance, individual job facets, and socio- demographic variables in the banking sector. Job performance of the employees why low in the banking sector is the main focus of this study. The sample consist 100 employees from nine commercial banks of Islamabad & Rawalpindi. The result shows that job performance of employees has direct relation with required job skills and has negative relation with satisfaction, motivation and technology. So required job skills are more important to improve employees performance. Key words: ? ? ? ? ? ? Employee Performance Banking Sector Satisfaction Motivation Technology Required Job Skills
Introduction The purpose of this study is to identify the different factors that could contribute in employee performance in banking sector. Secondly it determines the effect of these factors or benefits provided on employee performance Job satisfaction is one criterion for establishing the health of organization; for getting effective services mostly depends on the human source and job satisfaction experienced by employees will affect the quality of service they get. . This study examines how to effectively stimulate employees to become more productive performer in relation with providing them some additional benefits. In this technological era organizations are competing one another for their survivor for this purpose the performance of there employees matter a lot. So organizations are working hard to not only retain the employees in an efficient manner but also looking forward to formulate effective plans and strategies to increase employee performance by providing them valuable benefits.
Significance It is worth mentioning that after privatization of the banking sector in Pakistan continued to experience the ups and downs and failed to achieve a sustainable growth rate. So it is very demanding sector for research. It will help us to know how job satisfaction affects the employee performance in banking sector of Pakistan. After this research our knowledge will be enhance and finally we will get research experience. And our research will help banks to improve their performance. Literature Review The banking system is now a day is passing from bad days of its history in Pakistan because of political instability, financial crises, and poor job performance of employees.
In Pakistan job performance of banking employees is low because of lower job satisfaction because in banks there is use interest and interest in Islam is harem so the low satisfaction cause poor job performance in banks. The employees feel that which salary we received is from interest so there satisfaction level is low and performance also decreases. Porter and Lawler (1968) said that there are three types of job performance One is measure of output and sales in given time of period, second is measure of individual performance by comparing with other. The last one is to measure the performance by performance appraisal. We have found these variables and made informal interviews and library search on them. Satisfaction Job satisfaction is one condition for establishing the health of an organization; representing effective services mostly depends on the human resource (Fitzgerald 1994) and job satisfaction experienced by employees will affect the quality of service they deliver. The impact of other factors on effectiveness, such as infrastructures and inside relationships, should also be recognized. Job satisfaction has been defined as a helpful affecting situation resulting from the pleasure a worker derives from the job (Locke, 1976; Spector, 1997) and as the affective and cognitive attitude held by an employee about various aspects of their job (Kalleberg, 1977; Mercer, 1997; Wright and Cropanzano, 1997; Wong 1998); the later implying that satisfaction is associated to the factor facets rather than the whole job, which is consistent with Spector's (1997) view. Job Satisfaction Theory Situational theories assume that the interaction of factors such as task characteristics, organizational characteristics and individual characteristics influence the job satisfaction (Hoy and Miskel, 1996). The individual evaluates the situational characteristics before commencing of employment (Quarstein 1992), where as situational occurrences are evaluated afterwards and overall satisfaction is a purpose of a arrangement of situational characteristics and situational occurrences. The situational characteristics generally planned as key factors in job satisfaction are: the work itself, compensate, encouragement, management and co-workers (Smith 1969), while other factors such as employee participation and organizational loyalty may force also. There have been several studies into job satisfaction which investigate the force of demographic characteristics such as age, gender, tenure, and learning (Clark, 1993; Clark and Oswald, 1995; Hickson and Oshagbemi, 1999; Oshagbemi, 1998, 2000a, b). The results recommend the existence of relationships between demographic characteristics and job satisfaction, but the facts to be mixed, with positive and negative relationships sometimes recognized for the relations between same variables.
The relationship among job satisfaction and performance is still open to question; it would be risky to suppose that high job satisfaction leads to high performance, or that high performers are satisfied with their jobs (Euske 1980). A number of studies point out a weak link (Petty1984; Iaffaldano and Muchinsky, 1985) while others (Caldwell and O'Reilly, 1990; Spector, 1997) recommend a possible relationship between satisfaction and performance. The reason and result determinants are still uncertain and it cannot be assumed that satisfaction leads to high performance, or that high performers are necessarily fulfilled with their jobs easily.(Euske 1980). During an informal interview of our teacher (sir, Hadayat Ali Khan 2009) tells us that he was not satisfied with his job in bank. So he decided to resigned and now he is select the teaching profession. Now days he is teaching in our university (federal Urdu university Islamabad). The reason of their resigned is that he was not satisfied with his job. He thought that the salary which he earns comes from interest. Interest is harem in our religion. Technology Job performance is also affected by the technological factor. In different organization there are different tools and techniques for increasing employee performance. In organizations management provide different type of software’s and programs to operate now a day’s paper work has come to an end and total work is done through the computer. In banks we can see that technology has brought a big change. Some employee feels that they should be provided advance tools and equipments (like computers) to perform their job efficiently and effectively. The allotment of the computers and use of new technology helps the employees to do monotonous and boring tasks in split seconds and become more valuable to organization. The use of technology on their part not only allows them to accomplish their tasks efficiently but also enables the employees to perform well. There are some peoples who have problems to operating of computer and new MANAGEMENT INFORMATION SYSTEM (MIS). As online banking, ATM , credit cards, online shopping and money transfer , these all things are required new technology. So banks give proper training to their employees to increase the job performance. Ishrat Hussain Says Pakistan’s banking sector reforms which were initiated in the early 1990s have distorted the sector into a well-organized, sound and strong banking system. The most recent complete evaluation carried out both by the World Bank and the IMF in 2004 came to the following conclusion: “For reaching reforms have resulted in well-organized and competitive financial system in particular, the mostly state-owned banking system has been changed into largely private sector” So we can say that in government banking sector did not use latest technology. So there performance is low comparatively private sector. For example Bank Alflah is the Worlds Leading Bank because it is a private bank than our National Bank of Pakistan.
Motivation Motivation has been defined as: the emotional method that gives behavior purpose and direction (Kreitner, 1995); a tendency to perform in a purposive manner to accomplish specific, unmet wants (Buford, Bedeian, & Lindner, 1995); an internal force to satisfy an unsatisfied need (Higgins, 1994); and the will to attain (Bedeian, 1993). For this paper, motivation is operationally defined as the internal strength that drives individuals to achieve personal and organizational goals. Ramsden said in (1998), changing the perceived environment of Australian universities ( poor morale and declining commitment) is “likely to produce disproportionately large results” in terms of institutional productivity and profitability. But which aspects of the work environment need to be changed (if at all) to encourage higher levels of academic motivation within Australia’s universities? Specifically, which work environment characteristics represent high/low sources of work motivation for academics in Australian universities? To address these questions, a 1998 study examined the quality of work life of full-time academics within universities in Australia (Winter & Sarros, 2001; Winter et al., 2000). Employee Needs According to Maslow, employees have five levels of needs; physiological, safety, social, ego, and self- actualizing (Maslow, 1943). Maslow said that lower level needs had to be satisfied before the next higher level need would motivate employees The motivation is very important in influencing the employees to accomplish individual as well as the organizational goals. This inner drive motivates the employees to form and exhibit the purposive behavior to achieve specific, unmet needs. This little encouragement on the part of organization enables them to accomplish their goals efficiently by acknowledging employees on their work and effort, providing them good work environment, considering their needs and forming pleasant job design. The motivation increases employee performance. In banks management motivates the employees by giving incentives, bonuses, flexible work schedule. Incentives Incentives designed to motivate employees can be either extrinsic or intrinsic; they can appeal to physical and safety needs or to needs for growth and development. The specific values attached to rewards (and punishments) result from a emotional calculus. This study examines four incentive devices: bonuses, merit pay, flexible salary steps, and
no monetary awards. National bank of Pakistan gives medical facility, house and car loans, and performance awards in cash.
Bonuses Bonuses are one-time payments rewarding employees for individual or group productivity. Bonuses represent pure pay-for-performance. They do not add to the basic salary. Although they are more popular in private sector settings, they have been attempted among various public sector organizations (Gabris, Mitchell, and McLemore, 1985; Greiner, Hatry, Koss, Millar, and Woodward, 1981; Lawler, 1990. Experiential facts supports the contention that ESBs could boost morale, attract the right employees, uplift productivity, and lead to better performance (Marton, 1998). Chen (2003) concludes that ESBs have a positive relation to firm market value. Chen & Kuo (2006) used the Ohlson (1995) model to investigate the effect of ESBs on firm value, finding a significant positive relation between ESBs and firm market value. Flexible Work Schedule During the past decade there has been a rapidly increasing interest in flexible forms of work scheduling . The current literature (Swart, 1974; Fields, 1974; Nollen and Martin, 1978; Orpin, 1981; Schein, Mauner, and Novak 1977; Kim and Campagna, 1981) suggests that organizational attachment, attendance, and job attitudes are favourably associated with flexible work schedules. Performance results appear to be conflicting (reflecting either no change or favorable changes), while experienced symptoms of stress appear to decline subsequent to the implementation of a flexible working hour arrangement. However, the majority of the available literature (see the Golembiewski and Proehl, 1978; and Glueck, 1979 reviews) is strongly characterized by: its theoretical nature, anecdotal reports of flexible working hour systems, the use of non-standardized research scales, the failure to include statistical treatment of reported data, and the absence of other systematic data collection strategies. Job Skills Job skill is more important factor for affective job performance. If there are no required skills for a job in a person his performance can not be good. So we can say that job performance has more relay on job skills. If a person have different job skills he can easily perform his duty and various tasks. So we can say that if a person has different job skills he can easily understand his job responsibilities and his job performance will be high. He will also satisfied with his job. Some studies report directly on the relationship between job skills and work outcomes. One exception is Fried and Ferris’s (1987) meta-analysis of the Job Characteristics Model, in which they find a relatively strong relationship (90 percent credibility of –
0.24) between skills requirements. In another study, skill variety was reported to correlate with turnover cognitions, satisfaction, and motivation (Jhons 1992). Other researchers report relationships between broader concepts that incorporate job skills and work outcomes. For example, Karasek and Theovell (1990) explain that enriched jobs help employees to better handle with work stressors. In banking sector job skills are very important because every task in bank require specific skill. That’s why banks often arrange continuous improvement program to enhance the skills of its employees. Theoretical Framework The objective of this study to explore the major reason that leads to decrease of job performance of employees in banking sector. For this purpose we have take job performance as dependent variable it is the variable of primary interest, the variance of which is attempted to be explained by the four main variables which influence on the job performance of employees in positive relation. As depicted through the literature review the following hypothesis can be made in banking sector of Pakistan. Hypothesis 1: There is positive relation ship between performance of employees and job satisfaction. If the satisfaction level of employees will high then there job performance will automatically high. Employee’s satisfaction and performance have direct relation with each other. Performance of employees can be increased by increasing satisfaction level. Hypothesis 2: The performance and employee motivation also has direct relation. If the motivation level of employee is high the job performance of employee will high. Motivation and performance has positive relation with each other. Performance of employees can be increased by motivation. If motivation will low then performance will also decrease. Hypothesis 3: Job skills and performance of job has positive relation with each other. If employee has required job skills then performance of employee will high. The great extent of skills will give more performance. Hypothesis 4: Technology and job performance also has positive relation. Technology has reduced the human efforts. If there is providing new technology then job performance of employees will be more. This is the theoretical frame work for job performance according to our study. Job performance is here dependent variable and job satisfaction, motivation, job skills, and
technology are dependent variables. Dependent variables have positive relation with independent variable.
Job Satisfaction
Motivation Employee Performance
Required Job Skills
Technology Fig 1
Methodology A present research study is carried out on banking sector of Pakistan to find out what are the main factors that govern the problem of job performance. For this reason different private and public banks are selected i.e., Faisal Bank, Allied Bank, Muslim Commercial Bank, HSBC Bank, United bank, National Bank etc. Data Collection Instruments For this purpose, primary sources of data collection will be used. • Quantitative Method
Quantitative Method ? The main instrument used in this method is Questionnaires. The questionnaire will be used both for staff and Administration. ? In preparing questionnaires Likert Scale (strongly agree (1) to strongly disagree (5)) is used. These questionnaires will be personally handed over to the respective persons.
Sample A cross sectional survey design was used to collect data from the Islamabad City of Pakistan. The respondents were from different Banks, with different employment backgrounds and at different jobs. This particular sampling technique gives data about job performance. A total of 100 questionnaires were hand distributed. Of those 80 were returned. Among the total individuals30 were females and 50 were males. The respondents were all employed in full-time jobs. Measures The main instrument we used was questionnaire data for this study was collected over a week period. The survey instrument consisted of two pages. Most items, other than demographics, were captured using a five-point Likert-type scale with responses ranging from strongly agree (1) to strongly disagree (5). Job performance was used as dependent variable and satisfaction, motivation, required skills and technology was used as independent variables. Respondents were asked to indicate their gender, parental status, house hold earning, hours worked per week and marital status. All these demographics are proven to have significant impact on their job performance. Procedure Total data was collected in 1 week February 2010. Total 100 questionnaire were divide 80 were returned. A non probabilistic convenience sampling technique was used. Data were coded and analyzed using SPSS (Version 17.0). We used multiple regressions as data analysis test. In order to check the normality of data, KolmogorovSmirnov test was applied. Correlation was also found among variables. Frequencies of variables and demographics also measured. Results and Discussion In measuring result first we calculate mean of variables then we calculate the frequencies of demographics and variables as shown below. Frequencies
Statistics Age N Valid 79 Missing 82 Gender Status 79 82 79 82
This is frequency statistics of damographices. These are the detailed wise demographics frequency tables.
Frequency Table: Age Frequenc Valid y Percent Percent Valid 25-34 34-44 Total Total Gender Frequenc Valid y Percent Percent Valid male Total Total 50 79 161 31.1 18.0 49.1 50.9 100.0 63.3 36.7 100.0 Female 29 Missing System 82 Cumulative Percent 63.3 100.0 20 59 79 161 12.4 36.6 49.1 50.9 100.0 25.3 74.7 100.0 Cumulative Percent 25.3 100.0
Missing System 82
Status Frequenc Valid y Percent Percent Valid Married Total Missing System Total 43 79 82 161 26.7 22.4 49.1 50.9 100.0 54.4 45.6 100.0 Unmarried 36 Cumulative Percent 54.4 100.0
This is frequency table for variables.
Statistics Performanc Satisfactio Motivatio e n n Skills N Valid 79 79 82 79 82 79 82 Missing 82 Technolog y 79 82
These are the histogram charts of frequencies of demographics.
After measuring frequency we analyze the reliability. For measuring reliability of the test instrument first the Cronbach Alpha was computed, which is 0.595 showing a reliable scale for measuring instrument.
Reliability Statistics Cronbach's Alpha .595 Scale: ALL VARIABLES Case Processing Summary N Cases Valid Total 79 161 Excludeda 82 % 49.1 50.9 100.0 N of Items 18
a. Listwise deletion based on all variables in the procedure.
In addition we measure Mean Standard Deviation and internal consistency is reported for these variables. There are 65% male and 35% females. The average hours worked per weak were 40 hours. The average income level was 25000 rupees. We also measure normality of data through normality test and Kolmogorov test for which is significant. Explore
Case Processing Summary Cases Valid N Performanc 79 e Satisfaction 79 Motivation Skills 79 79 49.1% 49.1% 49.1% 49.1% 49.1% Missing Percent N 82 82 82 82 82 50.9% 50.9% 50.9% 50.9% 50.9% Total Percent N 161 161 161 161 161 Percent 100.0% 100.0% 100.0% 100.0% 100.0%
Technology 79
Tests of Normality Kolmogorov-Smirnova Statistic df Performanc .179 e Satisfaction .106 Motivation Skills .191 .186 79 79 79 79 79 Sig. .000 .028 .000 .000 .000 Shapiro-Wilk Statistic df .907 .959 .872 .904 .791 79 79 79 79 79 Sig. .000 .012 .000 .000 .000
Technology .264
a. Lilliefors Significance Correction We found significance correlations between variables. Correlations
Correlations Performanc Satisfactio Motivatio e n n Skills Performanc Pearson e Correlation Sig. (2-tailed) N Satisfaction Pearson Correlation Sig. (2-tailed) N Motivation Pearson Correlation Sig. (2-tailed) N Skills Pearson Correlation Sig. (2-tailed) N Technology Pearson Correlation Sig. (2-tailed) N 79 -.066 .562 79 -.187 .100 79 -.100 .380 79 -.140 .219 79 79 .154 .175 79 .153 .179 79 .097 .395 79 79 .712 .000 79 .456 .000 79
** **
Technolog y -.140 .219 79 .097 .395 79
1
-.066 .562 79 1
-.187 .100 79 .154 .175 79 1
-.100 .380 79 .153 .179 79 .712 .000 79 1
**
.456** .000 79 .714** .000
79 .714 .000 79
**
79 1
79
**. Correlation is significant at the 0.01 level (2-tailed). We also made regression analysis to examine the relationship between job performance and independent variables. By imperial result R square is .052 which shows that hypothesized model explains 52% variations in Job Performance through satisfaction, motivation, skills and technology. The value of R is .228, which shows that there exists multiple correlations. R shows the sample and R square shows the population.
Model Summary Model R 1 .228a Adjusted R Square Square .052 .001 R Std. Error of the Estimate .61893
a. Predictors: (Constant), Technology, Satisfaction, Motivation, Skills
. The results show that F statistics is 1.018 which shows coherence of modal and fitness of modal. Hence independent variables account significant variation in dependent variable. For the relative importance of contribution to variation t-statistics is used.
ANOVAb Model 1 Residual Total Sum Squares Regression 1.560 28.347 29.907 of Df 4 74 78 Mean Square .390 .383 F 1.018 Sig. .404a
a. Predictors: (Constant), Technology, Satisfaction, Motivation, Skills b. Dependent Variable: Performance
Coefficientsa Unstandardized Coefficients Model 1 B (Constant) 2.251 Satisfactio -.049 n Motivation -.177 Skills .147 Technolog -.105 y Std. Error .362 .133 .116 .150 .102 -.043 -.248 .202 -.167 Standardize d Coefficients Beta t 6.224 -.372 -1.526 .979 -1.026 Sig. .000 .711 .131 .331 .308
a. Dependent Variable: Performance The regression analysis through beta coefficients depicts that job performance has negative relation with satisfaction, motivation and technology and has positive relation with required job skills. Conclusion Our research taps employee performance in the banking sector and its relation with job satisfaction, motivation, required job skills, technology. It has been conclude there is negative relation between job performance (dependent variable) and job satisfaction, motivation, and technology but have positive relation with skills. In Pakistani banking sector there is limited research has been made on banking sector and future research can be made why our hypothesis are not sustainable.
REFERENCES
Buffum, W.E., Konick, A. (1982), "Employees’ job satisfaction, residents functioning, and treatment progress in psychiatric institutions", Health and Social Work, Vol. 7 pp.320–7. Caldwell, D.F., O'Reilly, C.A. (1990), "Measuring person-job fit with a profileomparison process", Journal of Applied Psychology, Vol. 75 pp.648–57. Clark, A. (1993), Job Satisfaction and Gender: Why Are Women So Happy at Work, ESRC Research Centre on Micro-social Change, University of Essex, London, .
Clark, A., Oswald, A. (1995), "Satisfaction and comparison income", . Euske, K.J., Jackson, D.W., Reif, W.E. (1980), "Performance and satisfaction of bank managers", Journal of Bank Research, Vol. 11 No.1, pp.36–42.
Fitzgerald, L., Johnston, R., Brignall, S., Silvestro, R., Voss, C. (1994), Performance Measurement in Service Businesses, The Chartered Institute of Management Accountants, Cambridge, .
Jung, K.G., Dalessio, A., Johnson, S.M. (1986), "Stability of the factor structure of the Job Descriptive Index", Academy of Management Journal, Vol. 29 No.3, pp.609–16.
Kalleberg, A.L. (1977), "Work values and job rewards: a theory of job satisfaction", American Sociological Review, Vol. 42 pp.124–43. Locke, E.A. (1976), "The nature and causes of job satisfaction", .
Mercer, D. (1997), "Job satisfaction and the secondary school teacher: the creation of a model of job satisfaction", .
Smith, P.C., Kendall, L.M., Hulin, C.L. (1969), Measurement of Satisfaction in Work and Retirement, Rand McNally, Chicago, IL, .
Spector, P. (1997), Job Satisfaction: Application, Assessment, Cause and Consequences , Sage Publications, London, .
Tett, R.P., Meyer, J.P. (1993), "Job Satisfaction, organizational commitment, turnover intention and turnover: path analyses based on meta-analytic findings", Personnel Psychology, Vol. 46 No.3, pp.259–94. Questionnaire on employee performance and satisfaction Dear sir/madam Your contribution in helping us analyze “Employees performance and satisfaction in banking sector” is valued highly. Completion of this information is voluntary and confidentiality is assured. No individual data will be reported. Please don’t mention your name on this questionnaire. Thank You! Age Gender Marital Status Parental Status ? 25-34, ? Male ? Married ? No Children ? 35-44, ? Female ? Separated ? oldest child < age 6 ? 45-54, ? widowed ? oldest child aged 6-18 ?55-64, ? Never Married ? oldest child aged > age 18 ? 65-74 Household earnings Hours worked per week At which post you are working. ? < 10,000 ? < 20 ? ? 10,000-20,000 ? 20-34 ? 20,000-30,000 ? 35-45 ? > 30,000 ? > 45 How long have you been working at________________________ (Name of Bank). ? Less then 6 months ? 1-2 years ? 2-3 years ? 3-5 years ? More then 5 years Scale: Strongly agree Agree Neutral Disagree Strongly disagree
1 2 3 4 Kindly make tick mark the choice which meets your opinion Job Performance I try hard to improve my performance at work. 1 You actually enjoy performing the activities that make up 1 your job. Your personal problems affect the job. 1 You have the capability to achieve the targets in time. 1 You feel over burden in your job. 1 Job Satisfaction I am highly motivated with the current working environment of my Bank. I am satisfied with my compensation & benefits package. Your salary is satisfied. You feels that your working hours are convenient Your complaints are settled quickly by the bank. 1 1 1 1 1
5
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
Motivation I become more excited in work when working in fair 1 environment. I believe that employees must be treated respectfully. 1 I try to improve my performance at work. 1 Job Skills I fully utilize my skills and abilities in the Bank 1 Bank place a great emphasis on honestly, integrity, Skills 1 and ethical behavior Work assigned to me is interesting, rewarding and 1 challenging and give me a feeling of personal accomplishment Technology Computer helps me to complete my tasks efficiently. Organization is updating its technology. THANK YOU 1 1
2 2
3 3
4 4
5 5
doc_843229273.doc
The structural network of institutions that offer financial services within a county. The members of the banking system and the functions they typically perform include: (1) commercial banks that take deposits and make loans, (2) investment banks which specialize in capital market issues and trading, and (3) national central banks that issue currency and set monetary policy.
Project of Training and Development in Banking Sector
ABSTRACT This study explores the relationship between job performance, individual job facets, and socio- demographic variables in the banking sector. Job performance of the employees why low in the banking sector is the main focus of this study. The sample consist 100 employees from nine commercial banks of Islamabad & Rawalpindi. The result shows that job performance of employees has direct relation with required job skills and has negative relation with satisfaction, motivation and technology. So required job skills are more important to improve employees performance. Key words: ? ? ? ? ? ? Employee Performance Banking Sector Satisfaction Motivation Technology Required Job Skills
Introduction The purpose of this study is to identify the different factors that could contribute in employee performance in banking sector. Secondly it determines the effect of these factors or benefits provided on employee performance Job satisfaction is one criterion for establishing the health of organization; for getting effective services mostly depends on the human source and job satisfaction experienced by employees will affect the quality of service they get. . This study examines how to effectively stimulate employees to become more productive performer in relation with providing them some additional benefits. In this technological era organizations are competing one another for their survivor for this purpose the performance of there employees matter a lot. So organizations are working hard to not only retain the employees in an efficient manner but also looking forward to formulate effective plans and strategies to increase employee performance by providing them valuable benefits.
Significance It is worth mentioning that after privatization of the banking sector in Pakistan continued to experience the ups and downs and failed to achieve a sustainable growth rate. So it is very demanding sector for research. It will help us to know how job satisfaction affects the employee performance in banking sector of Pakistan. After this research our knowledge will be enhance and finally we will get research experience. And our research will help banks to improve their performance. Literature Review The banking system is now a day is passing from bad days of its history in Pakistan because of political instability, financial crises, and poor job performance of employees.
In Pakistan job performance of banking employees is low because of lower job satisfaction because in banks there is use interest and interest in Islam is harem so the low satisfaction cause poor job performance in banks. The employees feel that which salary we received is from interest so there satisfaction level is low and performance also decreases. Porter and Lawler (1968) said that there are three types of job performance One is measure of output and sales in given time of period, second is measure of individual performance by comparing with other. The last one is to measure the performance by performance appraisal. We have found these variables and made informal interviews and library search on them. Satisfaction Job satisfaction is one condition for establishing the health of an organization; representing effective services mostly depends on the human resource (Fitzgerald 1994) and job satisfaction experienced by employees will affect the quality of service they deliver. The impact of other factors on effectiveness, such as infrastructures and inside relationships, should also be recognized. Job satisfaction has been defined as a helpful affecting situation resulting from the pleasure a worker derives from the job (Locke, 1976; Spector, 1997) and as the affective and cognitive attitude held by an employee about various aspects of their job (Kalleberg, 1977; Mercer, 1997; Wright and Cropanzano, 1997; Wong 1998); the later implying that satisfaction is associated to the factor facets rather than the whole job, which is consistent with Spector's (1997) view. Job Satisfaction Theory Situational theories assume that the interaction of factors such as task characteristics, organizational characteristics and individual characteristics influence the job satisfaction (Hoy and Miskel, 1996). The individual evaluates the situational characteristics before commencing of employment (Quarstein 1992), where as situational occurrences are evaluated afterwards and overall satisfaction is a purpose of a arrangement of situational characteristics and situational occurrences. The situational characteristics generally planned as key factors in job satisfaction are: the work itself, compensate, encouragement, management and co-workers (Smith 1969), while other factors such as employee participation and organizational loyalty may force also. There have been several studies into job satisfaction which investigate the force of demographic characteristics such as age, gender, tenure, and learning (Clark, 1993; Clark and Oswald, 1995; Hickson and Oshagbemi, 1999; Oshagbemi, 1998, 2000a, b). The results recommend the existence of relationships between demographic characteristics and job satisfaction, but the facts to be mixed, with positive and negative relationships sometimes recognized for the relations between same variables.
The relationship among job satisfaction and performance is still open to question; it would be risky to suppose that high job satisfaction leads to high performance, or that high performers are satisfied with their jobs (Euske 1980). A number of studies point out a weak link (Petty1984; Iaffaldano and Muchinsky, 1985) while others (Caldwell and O'Reilly, 1990; Spector, 1997) recommend a possible relationship between satisfaction and performance. The reason and result determinants are still uncertain and it cannot be assumed that satisfaction leads to high performance, or that high performers are necessarily fulfilled with their jobs easily.(Euske 1980). During an informal interview of our teacher (sir, Hadayat Ali Khan 2009) tells us that he was not satisfied with his job in bank. So he decided to resigned and now he is select the teaching profession. Now days he is teaching in our university (federal Urdu university Islamabad). The reason of their resigned is that he was not satisfied with his job. He thought that the salary which he earns comes from interest. Interest is harem in our religion. Technology Job performance is also affected by the technological factor. In different organization there are different tools and techniques for increasing employee performance. In organizations management provide different type of software’s and programs to operate now a day’s paper work has come to an end and total work is done through the computer. In banks we can see that technology has brought a big change. Some employee feels that they should be provided advance tools and equipments (like computers) to perform their job efficiently and effectively. The allotment of the computers and use of new technology helps the employees to do monotonous and boring tasks in split seconds and become more valuable to organization. The use of technology on their part not only allows them to accomplish their tasks efficiently but also enables the employees to perform well. There are some peoples who have problems to operating of computer and new MANAGEMENT INFORMATION SYSTEM (MIS). As online banking, ATM , credit cards, online shopping and money transfer , these all things are required new technology. So banks give proper training to their employees to increase the job performance. Ishrat Hussain Says Pakistan’s banking sector reforms which were initiated in the early 1990s have distorted the sector into a well-organized, sound and strong banking system. The most recent complete evaluation carried out both by the World Bank and the IMF in 2004 came to the following conclusion: “For reaching reforms have resulted in well-organized and competitive financial system in particular, the mostly state-owned banking system has been changed into largely private sector” So we can say that in government banking sector did not use latest technology. So there performance is low comparatively private sector. For example Bank Alflah is the Worlds Leading Bank because it is a private bank than our National Bank of Pakistan.
Motivation Motivation has been defined as: the emotional method that gives behavior purpose and direction (Kreitner, 1995); a tendency to perform in a purposive manner to accomplish specific, unmet wants (Buford, Bedeian, & Lindner, 1995); an internal force to satisfy an unsatisfied need (Higgins, 1994); and the will to attain (Bedeian, 1993). For this paper, motivation is operationally defined as the internal strength that drives individuals to achieve personal and organizational goals. Ramsden said in (1998), changing the perceived environment of Australian universities ( poor morale and declining commitment) is “likely to produce disproportionately large results” in terms of institutional productivity and profitability. But which aspects of the work environment need to be changed (if at all) to encourage higher levels of academic motivation within Australia’s universities? Specifically, which work environment characteristics represent high/low sources of work motivation for academics in Australian universities? To address these questions, a 1998 study examined the quality of work life of full-time academics within universities in Australia (Winter & Sarros, 2001; Winter et al., 2000). Employee Needs According to Maslow, employees have five levels of needs; physiological, safety, social, ego, and self- actualizing (Maslow, 1943). Maslow said that lower level needs had to be satisfied before the next higher level need would motivate employees The motivation is very important in influencing the employees to accomplish individual as well as the organizational goals. This inner drive motivates the employees to form and exhibit the purposive behavior to achieve specific, unmet needs. This little encouragement on the part of organization enables them to accomplish their goals efficiently by acknowledging employees on their work and effort, providing them good work environment, considering their needs and forming pleasant job design. The motivation increases employee performance. In banks management motivates the employees by giving incentives, bonuses, flexible work schedule. Incentives Incentives designed to motivate employees can be either extrinsic or intrinsic; they can appeal to physical and safety needs or to needs for growth and development. The specific values attached to rewards (and punishments) result from a emotional calculus. This study examines four incentive devices: bonuses, merit pay, flexible salary steps, and
no monetary awards. National bank of Pakistan gives medical facility, house and car loans, and performance awards in cash.
Bonuses Bonuses are one-time payments rewarding employees for individual or group productivity. Bonuses represent pure pay-for-performance. They do not add to the basic salary. Although they are more popular in private sector settings, they have been attempted among various public sector organizations (Gabris, Mitchell, and McLemore, 1985; Greiner, Hatry, Koss, Millar, and Woodward, 1981; Lawler, 1990. Experiential facts supports the contention that ESBs could boost morale, attract the right employees, uplift productivity, and lead to better performance (Marton, 1998). Chen (2003) concludes that ESBs have a positive relation to firm market value. Chen & Kuo (2006) used the Ohlson (1995) model to investigate the effect of ESBs on firm value, finding a significant positive relation between ESBs and firm market value. Flexible Work Schedule During the past decade there has been a rapidly increasing interest in flexible forms of work scheduling . The current literature (Swart, 1974; Fields, 1974; Nollen and Martin, 1978; Orpin, 1981; Schein, Mauner, and Novak 1977; Kim and Campagna, 1981) suggests that organizational attachment, attendance, and job attitudes are favourably associated with flexible work schedules. Performance results appear to be conflicting (reflecting either no change or favorable changes), while experienced symptoms of stress appear to decline subsequent to the implementation of a flexible working hour arrangement. However, the majority of the available literature (see the Golembiewski and Proehl, 1978; and Glueck, 1979 reviews) is strongly characterized by: its theoretical nature, anecdotal reports of flexible working hour systems, the use of non-standardized research scales, the failure to include statistical treatment of reported data, and the absence of other systematic data collection strategies. Job Skills Job skill is more important factor for affective job performance. If there are no required skills for a job in a person his performance can not be good. So we can say that job performance has more relay on job skills. If a person have different job skills he can easily perform his duty and various tasks. So we can say that if a person has different job skills he can easily understand his job responsibilities and his job performance will be high. He will also satisfied with his job. Some studies report directly on the relationship between job skills and work outcomes. One exception is Fried and Ferris’s (1987) meta-analysis of the Job Characteristics Model, in which they find a relatively strong relationship (90 percent credibility of –
0.24) between skills requirements. In another study, skill variety was reported to correlate with turnover cognitions, satisfaction, and motivation (Jhons 1992). Other researchers report relationships between broader concepts that incorporate job skills and work outcomes. For example, Karasek and Theovell (1990) explain that enriched jobs help employees to better handle with work stressors. In banking sector job skills are very important because every task in bank require specific skill. That’s why banks often arrange continuous improvement program to enhance the skills of its employees. Theoretical Framework The objective of this study to explore the major reason that leads to decrease of job performance of employees in banking sector. For this purpose we have take job performance as dependent variable it is the variable of primary interest, the variance of which is attempted to be explained by the four main variables which influence on the job performance of employees in positive relation. As depicted through the literature review the following hypothesis can be made in banking sector of Pakistan. Hypothesis 1: There is positive relation ship between performance of employees and job satisfaction. If the satisfaction level of employees will high then there job performance will automatically high. Employee’s satisfaction and performance have direct relation with each other. Performance of employees can be increased by increasing satisfaction level. Hypothesis 2: The performance and employee motivation also has direct relation. If the motivation level of employee is high the job performance of employee will high. Motivation and performance has positive relation with each other. Performance of employees can be increased by motivation. If motivation will low then performance will also decrease. Hypothesis 3: Job skills and performance of job has positive relation with each other. If employee has required job skills then performance of employee will high. The great extent of skills will give more performance. Hypothesis 4: Technology and job performance also has positive relation. Technology has reduced the human efforts. If there is providing new technology then job performance of employees will be more. This is the theoretical frame work for job performance according to our study. Job performance is here dependent variable and job satisfaction, motivation, job skills, and
technology are dependent variables. Dependent variables have positive relation with independent variable.
Job Satisfaction
Motivation Employee Performance
Required Job Skills
Technology Fig 1
Methodology A present research study is carried out on banking sector of Pakistan to find out what are the main factors that govern the problem of job performance. For this reason different private and public banks are selected i.e., Faisal Bank, Allied Bank, Muslim Commercial Bank, HSBC Bank, United bank, National Bank etc. Data Collection Instruments For this purpose, primary sources of data collection will be used. • Quantitative Method
Quantitative Method ? The main instrument used in this method is Questionnaires. The questionnaire will be used both for staff and Administration. ? In preparing questionnaires Likert Scale (strongly agree (1) to strongly disagree (5)) is used. These questionnaires will be personally handed over to the respective persons.
Sample A cross sectional survey design was used to collect data from the Islamabad City of Pakistan. The respondents were from different Banks, with different employment backgrounds and at different jobs. This particular sampling technique gives data about job performance. A total of 100 questionnaires were hand distributed. Of those 80 were returned. Among the total individuals30 were females and 50 were males. The respondents were all employed in full-time jobs. Measures The main instrument we used was questionnaire data for this study was collected over a week period. The survey instrument consisted of two pages. Most items, other than demographics, were captured using a five-point Likert-type scale with responses ranging from strongly agree (1) to strongly disagree (5). Job performance was used as dependent variable and satisfaction, motivation, required skills and technology was used as independent variables. Respondents were asked to indicate their gender, parental status, house hold earning, hours worked per week and marital status. All these demographics are proven to have significant impact on their job performance. Procedure Total data was collected in 1 week February 2010. Total 100 questionnaire were divide 80 were returned. A non probabilistic convenience sampling technique was used. Data were coded and analyzed using SPSS (Version 17.0). We used multiple regressions as data analysis test. In order to check the normality of data, KolmogorovSmirnov test was applied. Correlation was also found among variables. Frequencies of variables and demographics also measured. Results and Discussion In measuring result first we calculate mean of variables then we calculate the frequencies of demographics and variables as shown below. Frequencies
Statistics Age N Valid 79 Missing 82 Gender Status 79 82 79 82
This is frequency statistics of damographices. These are the detailed wise demographics frequency tables.
Frequency Table: Age Frequenc Valid y Percent Percent Valid 25-34 34-44 Total Total Gender Frequenc Valid y Percent Percent Valid male Total Total 50 79 161 31.1 18.0 49.1 50.9 100.0 63.3 36.7 100.0 Female 29 Missing System 82 Cumulative Percent 63.3 100.0 20 59 79 161 12.4 36.6 49.1 50.9 100.0 25.3 74.7 100.0 Cumulative Percent 25.3 100.0
Missing System 82
Status Frequenc Valid y Percent Percent Valid Married Total Missing System Total 43 79 82 161 26.7 22.4 49.1 50.9 100.0 54.4 45.6 100.0 Unmarried 36 Cumulative Percent 54.4 100.0
This is frequency table for variables.
Statistics Performanc Satisfactio Motivatio e n n Skills N Valid 79 79 82 79 82 79 82 Missing 82 Technolog y 79 82
These are the histogram charts of frequencies of demographics.
After measuring frequency we analyze the reliability. For measuring reliability of the test instrument first the Cronbach Alpha was computed, which is 0.595 showing a reliable scale for measuring instrument.
Reliability Statistics Cronbach's Alpha .595 Scale: ALL VARIABLES Case Processing Summary N Cases Valid Total 79 161 Excludeda 82 % 49.1 50.9 100.0 N of Items 18
a. Listwise deletion based on all variables in the procedure.
In addition we measure Mean Standard Deviation and internal consistency is reported for these variables. There are 65% male and 35% females. The average hours worked per weak were 40 hours. The average income level was 25000 rupees. We also measure normality of data through normality test and Kolmogorov test for which is significant. Explore
Case Processing Summary Cases Valid N Performanc 79 e Satisfaction 79 Motivation Skills 79 79 49.1% 49.1% 49.1% 49.1% 49.1% Missing Percent N 82 82 82 82 82 50.9% 50.9% 50.9% 50.9% 50.9% Total Percent N 161 161 161 161 161 Percent 100.0% 100.0% 100.0% 100.0% 100.0%
Technology 79
Tests of Normality Kolmogorov-Smirnova Statistic df Performanc .179 e Satisfaction .106 Motivation Skills .191 .186 79 79 79 79 79 Sig. .000 .028 .000 .000 .000 Shapiro-Wilk Statistic df .907 .959 .872 .904 .791 79 79 79 79 79 Sig. .000 .012 .000 .000 .000
Technology .264
a. Lilliefors Significance Correction We found significance correlations between variables. Correlations
Correlations Performanc Satisfactio Motivatio e n n Skills Performanc Pearson e Correlation Sig. (2-tailed) N Satisfaction Pearson Correlation Sig. (2-tailed) N Motivation Pearson Correlation Sig. (2-tailed) N Skills Pearson Correlation Sig. (2-tailed) N Technology Pearson Correlation Sig. (2-tailed) N 79 -.066 .562 79 -.187 .100 79 -.100 .380 79 -.140 .219 79 79 .154 .175 79 .153 .179 79 .097 .395 79 79 .712 .000 79 .456 .000 79
** **
Technolog y -.140 .219 79 .097 .395 79
1
-.066 .562 79 1
-.187 .100 79 .154 .175 79 1
-.100 .380 79 .153 .179 79 .712 .000 79 1
**
.456** .000 79 .714** .000
79 .714 .000 79
**
79 1
79
**. Correlation is significant at the 0.01 level (2-tailed). We also made regression analysis to examine the relationship between job performance and independent variables. By imperial result R square is .052 which shows that hypothesized model explains 52% variations in Job Performance through satisfaction, motivation, skills and technology. The value of R is .228, which shows that there exists multiple correlations. R shows the sample and R square shows the population.
Model Summary Model R 1 .228a Adjusted R Square Square .052 .001 R Std. Error of the Estimate .61893
a. Predictors: (Constant), Technology, Satisfaction, Motivation, Skills
. The results show that F statistics is 1.018 which shows coherence of modal and fitness of modal. Hence independent variables account significant variation in dependent variable. For the relative importance of contribution to variation t-statistics is used.
ANOVAb Model 1 Residual Total Sum Squares Regression 1.560 28.347 29.907 of Df 4 74 78 Mean Square .390 .383 F 1.018 Sig. .404a
a. Predictors: (Constant), Technology, Satisfaction, Motivation, Skills b. Dependent Variable: Performance
Coefficientsa Unstandardized Coefficients Model 1 B (Constant) 2.251 Satisfactio -.049 n Motivation -.177 Skills .147 Technolog -.105 y Std. Error .362 .133 .116 .150 .102 -.043 -.248 .202 -.167 Standardize d Coefficients Beta t 6.224 -.372 -1.526 .979 -1.026 Sig. .000 .711 .131 .331 .308
a. Dependent Variable: Performance The regression analysis through beta coefficients depicts that job performance has negative relation with satisfaction, motivation and technology and has positive relation with required job skills. Conclusion Our research taps employee performance in the banking sector and its relation with job satisfaction, motivation, required job skills, technology. It has been conclude there is negative relation between job performance (dependent variable) and job satisfaction, motivation, and technology but have positive relation with skills. In Pakistani banking sector there is limited research has been made on banking sector and future research can be made why our hypothesis are not sustainable.
REFERENCES
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Clark, A., Oswald, A. (1995), "Satisfaction and comparison income", . Euske, K.J., Jackson, D.W., Reif, W.E. (1980), "Performance and satisfaction of bank managers", Journal of Bank Research, Vol. 11 No.1, pp.36–42.
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Tett, R.P., Meyer, J.P. (1993), "Job Satisfaction, organizational commitment, turnover intention and turnover: path analyses based on meta-analytic findings", Personnel Psychology, Vol. 46 No.3, pp.259–94. Questionnaire on employee performance and satisfaction Dear sir/madam Your contribution in helping us analyze “Employees performance and satisfaction in banking sector” is valued highly. Completion of this information is voluntary and confidentiality is assured. No individual data will be reported. Please don’t mention your name on this questionnaire. Thank You! Age Gender Marital Status Parental Status ? 25-34, ? Male ? Married ? No Children ? 35-44, ? Female ? Separated ? oldest child < age 6 ? 45-54, ? widowed ? oldest child aged 6-18 ?55-64, ? Never Married ? oldest child aged > age 18 ? 65-74 Household earnings Hours worked per week At which post you are working. ? < 10,000 ? < 20 ? ? 10,000-20,000 ? 20-34 ? 20,000-30,000 ? 35-45 ? > 30,000 ? > 45 How long have you been working at________________________ (Name of Bank). ? Less then 6 months ? 1-2 years ? 2-3 years ? 3-5 years ? More then 5 years Scale: Strongly agree Agree Neutral Disagree Strongly disagree
1 2 3 4 Kindly make tick mark the choice which meets your opinion Job Performance I try hard to improve my performance at work. 1 You actually enjoy performing the activities that make up 1 your job. Your personal problems affect the job. 1 You have the capability to achieve the targets in time. 1 You feel over burden in your job. 1 Job Satisfaction I am highly motivated with the current working environment of my Bank. I am satisfied with my compensation & benefits package. Your salary is satisfied. You feels that your working hours are convenient Your complaints are settled quickly by the bank. 1 1 1 1 1
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Motivation I become more excited in work when working in fair 1 environment. I believe that employees must be treated respectfully. 1 I try to improve my performance at work. 1 Job Skills I fully utilize my skills and abilities in the Bank 1 Bank place a great emphasis on honestly, integrity, Skills 1 and ethical behavior Work assigned to me is interesting, rewarding and 1 challenging and give me a feeling of personal accomplishment Technology Computer helps me to complete my tasks efficiently. Organization is updating its technology. THANK YOU 1 1
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