| Title : | Employees' job satisfaction and financial performance of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Kushal Joshi, Author | | Publication Date: | 2014 | | Pagination: | 108p. | | Size: | GRP/Thesis | | Accompanying material: | 3/B | | General note: | Including bibliography | | Languages : | English | | Descriptors: | Banks
Banks and banking
Commercial banks
Employees
Job satisfaction
| | Keywords: | 'job satisfaction commercial banks banks banks and banking nepal' | | Class number: | 332.1 | | Abstract: | From the past few decades, it has been seen that Nepalese commercial banks are playing an important and active role in the economic development of a country. There are numerous empirical evidences of developed countries that employees’ job satisfaction has significant impact on the improvement of financial performance of commercial banks. However, despite of several empirical evidences, employees’ job satisfaction and financial performance issues are still unsolved in context of Nepalese banking industry. Determining job satisfaction level of employees as well as its impact on financial performance of commercial banks has always been a crucial issue for Nepalese commercial banks. Therefore, this study attempts to identify the determinants of employees’ job satisfaction and its impact on financial performance of Nepalese commercial banks.
Based on the previous empirical studies, this study attempts to evaluate the financial performance of Nepalese commercial banks from internal financial performance, market financial performance and economic financial performance perspectives. Similarly, this study also considered various dimensions of employees’ job satisfaction such as skill variety, task identity, task significance, autonomy and feedback in order to measure job satisfaction level of employees. Based, on Hackman and Oldham’s Job Diagnostic Survey, this study used motivating potential score as the proxy for employees’ job satisfaction in order to link job satisfaction and financial performance of Nepalese commercial banks.
The study was based on both primary and secondary sources of data. Altogether, 17 commercial banks which were established before 2002/03, was taken as the sample for the study. This study used methods such as descriptive analysis, correlation analysis, portfolio analysis and regression analysis in order to analyze secondary data. Likewise, primary data was analyzed by using percentage frequency distribution and correlation analysis.
The study concludes that cash reserve ratio, operational efficiency, assets management, deposit, earnings per share, residual income, capital, age of the bank and number of branches of the bank are the most dominant variables that have significant impact on the financial performance of Nepalese commercial banks. The study also concludes that macro economic variables such as growth rate of gross domestic product and inflation rate also have significant impact on market financial performance of commercial banks. The study added that lagged variables of net interest margin, Tobin’s Q and economic value added also have significant impact on the financial performance of commercial banks. Likewise, the primary survey results indicate that feedback provided to the employees is the most influencing factor for increasing employees’ job satisfaction followed by autonomy and task significance. Finally, the study also concluded that increase in job satisfaction level of employees increases the financial performance of commercial banks.
Based on the findings and conclusion the study recommends that commercial banks should focus on increasing the job satisfaction level of their employees in order to improve their market financial performance and economic financial performance. The study also suggested that commercial banks should maintain higher liquidity, higher number of branches and lower operational efficiency in order to improve their financial performance. The study also recommended that commercial banks should provide better job security, personal development opportunities, and attractive remuneration facility in order to motivate as well as to satisfy their employees.
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Employees' job satisfaction and financial performance of Nepalese commercial banks [printed text] / Kushal Joshi, Author . - 2014 . - 108p. ; GRP/Thesis + 3/B. Including bibliography Languages : English | Descriptors: | Banks
Banks and banking
Commercial banks
Employees
Job satisfaction
| | Keywords: | 'job satisfaction commercial banks banks banks and banking nepal' | | Class number: | 332.1 | | Abstract: | From the past few decades, it has been seen that Nepalese commercial banks are playing an important and active role in the economic development of a country. There are numerous empirical evidences of developed countries that employees’ job satisfaction has significant impact on the improvement of financial performance of commercial banks. However, despite of several empirical evidences, employees’ job satisfaction and financial performance issues are still unsolved in context of Nepalese banking industry. Determining job satisfaction level of employees as well as its impact on financial performance of commercial banks has always been a crucial issue for Nepalese commercial banks. Therefore, this study attempts to identify the determinants of employees’ job satisfaction and its impact on financial performance of Nepalese commercial banks.
Based on the previous empirical studies, this study attempts to evaluate the financial performance of Nepalese commercial banks from internal financial performance, market financial performance and economic financial performance perspectives. Similarly, this study also considered various dimensions of employees’ job satisfaction such as skill variety, task identity, task significance, autonomy and feedback in order to measure job satisfaction level of employees. Based, on Hackman and Oldham’s Job Diagnostic Survey, this study used motivating potential score as the proxy for employees’ job satisfaction in order to link job satisfaction and financial performance of Nepalese commercial banks.
The study was based on both primary and secondary sources of data. Altogether, 17 commercial banks which were established before 2002/03, was taken as the sample for the study. This study used methods such as descriptive analysis, correlation analysis, portfolio analysis and regression analysis in order to analyze secondary data. Likewise, primary data was analyzed by using percentage frequency distribution and correlation analysis.
The study concludes that cash reserve ratio, operational efficiency, assets management, deposit, earnings per share, residual income, capital, age of the bank and number of branches of the bank are the most dominant variables that have significant impact on the financial performance of Nepalese commercial banks. The study also concludes that macro economic variables such as growth rate of gross domestic product and inflation rate also have significant impact on market financial performance of commercial banks. The study added that lagged variables of net interest margin, Tobin’s Q and economic value added also have significant impact on the financial performance of commercial banks. Likewise, the primary survey results indicate that feedback provided to the employees is the most influencing factor for increasing employees’ job satisfaction followed by autonomy and task significance. Finally, the study also concluded that increase in job satisfaction level of employees increases the financial performance of commercial banks.
Based on the findings and conclusion the study recommends that commercial banks should focus on increasing the job satisfaction level of their employees in order to improve their market financial performance and economic financial performance. The study also suggested that commercial banks should maintain higher liquidity, higher number of branches and lower operational efficiency in order to improve their financial performance. The study also recommended that commercial banks should provide better job security, personal development opportunities, and attractive remuneration facility in order to motivate as well as to satisfy their employees.
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