Professional Documents
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Volume 1 • IssueJournal
1 • Mayof2010
Management (IJM), N.MALLIKA & Dr.M.RAMESH
• pp.111-129
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JOB SATISFACTION IN BANKING: A STUDY OF
PRIVATE AND PUBLIC SECTOR BANKS
N.MALLIKA* Dr.M.RAMESH**
ABSTRACT
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International Journal of Management (IJM), N.MALLIKA & Dr.M.RAMESH
INTRODUCTION
Job satisfaction describes how content an individual is with his or her job.
The happier people are within their job, the more satisfied they are said to be.
Job satisfaction is not the same as motivation, although it is clearly linked. Job design
aims to enhance job satisfaction and performance; methods include job rotation, job
enlargement and job enrichment. Other influences on satisfaction include the
management style and culture, employee involvement, empowerment and
autonomous work groups. Job satisfaction is a very important attribute which is
frequently measured by organizations. The most common way of measurement is the
use of rating scales where employees report their reactions to their jobs.
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and employee friendly HR policy and a barometer of corporate well being. The onset
of higher employee turnover brings with it indications of difficult times ahead and is
considered as a serious competitive disadvantage by business and financial analysts.
The issue of job characteristics and employee satisfaction has been looked at
from a number of perspectives. One view, which is followed by many, is the
importance of money. A number of employers feel that in today’s multiple
opportunity, flexi choice, work from home environment, money is the basic reason for
a person to take up a job, furthermore that people work only for money. Companies
that pay more usually get the most applications be it at college graduation time for
new entrants to the work force, or later on for mid career shifts for middle and senior
people.
There are again many management experts and HRD specialists who feel that
the theory of money being the only real choice in an employment choice in a free
market situation has many serious limitations and indeed is deeply flawed. These
experts feel that while money is an important factor in the contemplation of an
employment decision there are a number of other factors, which also influence such
choices.
The truth is far more complex and while the cynical continue to believe in the
overwhelming supremacy of money, in its power to buy happiness and satisfaction, be
it in personal life or the workplace, a number of management thinkers, social
scientists and corporate managers feel otherwise, advocating and using distinctly
different HR philosophies and policies.
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part of working time in front of laptops and computer screens, be it any job profile,
such is the pervasiveness of information technology in all areas of corporate life.
It is an undeniable fact that the future of business enterprise depends upon the
satisfaction level of its workforce. Dissatisfied workforces cause immediate problems
only to their particular businesses.
Due to globalization, today’s world has become a single village. And never had it
been before and after people interacting to one another without considering their
culture, value, norms, attitudes and race, as it today. These interactions are not only in
trade, diplomatic, social political and communication network, but also in banking
sector rather the needs and motivation as for as and all these make a today’s world
more competitive and challenging than never before. Never before has it been so,
working performance has been drive by needs and motivation so as to satisfy
employees. In order to satisfy employees there is a number of things’s or factors to
consider. Therefore, this study will investigate as to what extent job satisfaction has
lead to good working performance in formal organization .The study will examine the
factors which influence employee’s job satisfaction in organization.
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1. To measure the level of job satisfaction among public and private bank
employees.
2. To find out the factors contributing towards the job satisfaction of public and
private bank employees.
REVIEW OF LITERATURE
Dekker et al., (1996) examined the relationship between work force size and
job satisfaction using data from two National surveys in US and Canada. The US
sample consisting of 8,428 employees (aged 23-30) and assessed for job satisfaction
with pay, promotion opportunities, job security, physical surrounding and supervisor
competence. The number of benefits offered by the organization was tested as a
mediator of these relationships. This was positively related to job satisfaction with job
security pay and promotion opportunities. When the effect of benefit was controlled
for these relationships, they were not satisfactorily significant. Work force size was
negatively related to satisfaction with supervisor competence and having the
opportunity to do one’s best results.
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Caudron (2001) has pointed out that in booming economy employees have
enough option to find better jobs and if they start thinking that they can do better at
other companies, their job dissatisfaction rises. As today’s employees are not only
looking solely for huge financial rewards as they can easily satisfy their basic needs
such as food and clothing but also they are looking for their job to provide the
friendships, family support, community, and sense of identity.
Jain, Jabeen, et. al. (2007), in their study "Job Satisfaction as Related to
Organizational Climate and Occupational Stress: A Case Study of Indian Oil"
concluded that that there is no significant difference between managers and engineers
in terms of their job satisfaction and both the groups appeared almost equally satisfied
with their jobs. When the managers and engineers were compared on organizational
climate, it was found that both the groups differed significantly. Managers scored
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International Journal of Management (IJM), N.MALLIKA & Dr.M.RAMESH
significantly high on organizational climate scale than the engineers indicating that
the managers are more satisfied due to the empowerment given to them.
Brown, Forde, et. al. (2008), in their study "Changes in HRM and job
satisfaction, 1998–2004: evidence from the Workplace Employment Relations
Survey" examined that their significant increases in satisfaction with the sense of
achievement from work between 1998and 2004; a number of other measures of job
quality are found to have increased over this period as well. It also finds a decline in
the incidence of many formal human resource management practices. The paper
reports a weak association between formal human resource management practices and
satisfaction with sense of achievement. Improvements imperceptions of job security,
the climate of employment relations and managerial responsiveness are the most
important factors in explaining the rise in satisfaction with sense of achievement
between 1998 and 2004. We infer that the rise in satisfaction with sense of
achievement is due in large part to the existence of falling unemployment during the
period under study, which has driven employers to make improvements in the quality
of work.
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knowledge of stress and its relationship with satisfaction and achievement of goal of
industries.
RESEARCH METHODOLOGY
SAMPLING SIZE
Subjects of the present study were selected from managerial and non-
managerial staff of public and private sector banks from Cuddalore District,
Tamilnadu. India. Three public sector banks and three private sector banks were
selected for the study. A total of 400 subjects were selected equally from the six
organisations selected for the study.
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ANALYSIS
Table: 1. Level of job satisfaction among employees in public banks
Public sector banks
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minimum percent of the employees low level of job satisfaction. It is a good sign and
it indicates that the organization has better environment for the public bank employees
to job.
JI OC QWL OCLIM JC
The result shows that the job involvement (0.360) is positively and
significantly correlated with job satisfaction and organizational commitment (0.436)
and organizational climate (0.232). The R-value 0.436 from the table for
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International Journal of Management (IJM), N.MALLIKA & Dr.M.RAMESH
The findings of the study go hand in hand with the early research done by
Penny Wright (1990) analyzed job satisfaction in relation to organizational
commitment based on the sample of 264 Bank tellers. This study identified that
different job characteristics are found to be associated with job satisfaction and
organizational commitment. In the case of career of tellers, job satisfaction and
organizational commitment are enhanced by participation in decision making, job
challenge and promotional opportunities. In people oriented tellers, job satisfaction
and organizational commitment had affected positively through a cohesive and
effective association.
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International Journal of Management (IJM), N.MALLIKA & Dr.M.RAMESH
JI OC QWL OCCLIM JC
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Table: 3. Stepwise multiple Regression Analysis for the Job Satisfaction and
contributed variables among public sector bank employees.
Public sector banks
Details R R2 Adjusted S.E F- Significant
regarding R2 Value
contributed
variables
Organizational 0.436 0.190 0.186 0.46399 46.420 0.000
commitment
Income 0.507 0.257 0.249 0.44554 34.040 0.000
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International Journal of Management (IJM), N.MALLIKA & Dr.M.RAMESH
Table: 6 Job satisfaction and outcome variables among private sector bank
employees
MANAGERIAL IMPLICATIONS
The study implies that the overall job satisfaction by the bank employees is
medium. The contributing variable like job involvement, organizational commitment
and organizational climate is found and significantly influence the job satisfaction
perceived by the employees. It is also observed that organizational climate least
influences the job satisfaction perceived by the employees.
SUGGESTIONS
The job satisfaction depends up on the feeling of employees about their
working environment. When their physical and psychological environment is
conducive they will perceive a good job satisfaction. Some of the ways through which
the job satisfaction can be improved are
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1. It has been found that employees of private sector banks were less satisfied with
their jobs compared to employees of public sector banks. To increase their
satisfaction, private sector banks need to improve job security.
2. Relationship with co-workers and supervisors makes the employees to feel better
and it help to increase productivity and responsibility of workers and it helps to
increase profit of the organization.
3. It was found that level of job satisfaction, job involvement, organizational
commitment, quality of work life, organizational climate and job content for
private bank employees are not satisfied with job. So the private banking sectors
try to consider the respondents needs and fulfill the same.
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