| Title : | Impact of employee satisfaction on profitability of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Krishna Prasai, Author | | Publication Date: | 2016 | | Pagination: | 102p. | | Size: | GRP/Thesis | | Accompanying material: | 6/B | | Languages : | English | | Descriptors: | Job satisfaction
| | Class number: | 658.314 | | Abstract: | Employee satisfaction is important for bank’s success and survival. Employee satisfaction is measures of how happy workers are with their jobs and working environment(Leblebici, 2012). Employee satisfaction not only enhances the productivity, but also increases the quality of work. It is necessary for a company to examine what employees feel, think, desire along with discovering how the workforce devotion and commitment can be increased (Yee et al., 2008). Employee satisfaction plays a significant role in defining organizational success. Employee’s satisfaction is central concern particularly in the service industry. The efficiency and effectiveness of organization directly depends upon the effectiveness of employees.
The major purpose of the study is to examine the impact of employee satisfaction on bank profitability of Nepalese commercial banks. The specific objectives of the study are; (a) to analyze the satisfaction level of the employees in Nepalese commercial banks, (b) to analyze the effect of promotion on employees satisfaction and bank performance, (c) to examine the effect of working environment on employees satisfaction and bank performance, (d) to examine the effect of working environment on employees satisfaction and bank performance.
Both primary and secondary sources of data have been used for the purpose of the study which is collected from primary questionnaire survey and annual reports of the sample banks respectively. The primary sources of data have been used to assess the opinion of respondents with respect to employee satisfaction and bank performance. The questionnaire survey has been conducted to record the opinions, and perceptions of bank employees about satisfaction and Nepalese bank performance. Primary data has been collected through questionnaire survey among bank employees of the sample banks while one year secondary data for the year 2014 for bank performance has been collected from annual reports of 15 commercial banks. Frequency of responses, percentages and ranking have been used to analyze the primary data while descriptive statistics, correlation analysis, stepwise regressions have been carried out to examine the secondary data.
The results revealed that employees in the bank are not satisfied well with the current salary and benefits. Employees find the salary level low as compared to others as well as how much they deserve. Employees are satisfied with working environment but they feel there is no fair and equal promotion policy in Nepalese commercial banks. Similarly, employees feel that they are less motivated at work. The result also finds that salary, promotion, working environment and motivation is found to be positively related to employee satisfaction.Likewise, employee’s satisfaction, salary, promotion and motivation is found to be positively related to return on assets (ROA) but significant relation is found only with salary. The study also concludes thatemployee satisfaction, salary, promotion and motivation is found to be positively related to net interest margin (NIM) while negatively related to working environment. Thus, there is positive relationship between employee satisfaction and bank profitability in Nepalese commercial banks.
The major conclusion of this study is that higher the employees’ satisfaction, higher would be bank performance (ROA, ROE and NIM). The study also concludes that higher the salary and motivation, higher would be employees’ satisfaction. Similarly, the result showed that of all the factors affecting employee satisfaction and profitability, salary is the most important one. The study also reveals that employee satisfaction of the commercial bank has strong and deep impact on the bank profitability, which can help to determine and enhance firm’s current and future value in the banking market. Hence, the study reveals that there is positive and significant relationship between employee satisfaction and bank profitability of Nepalese commercial banks.
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Impact of employee satisfaction on profitability of Nepalese commercial banks [printed text] / Krishna Prasai, Author . - 2016 . - 102p. ; GRP/Thesis + 6/B. Languages : English | Descriptors: | Job satisfaction
| | Class number: | 658.314 | | Abstract: | Employee satisfaction is important for bank’s success and survival. Employee satisfaction is measures of how happy workers are with their jobs and working environment(Leblebici, 2012). Employee satisfaction not only enhances the productivity, but also increases the quality of work. It is necessary for a company to examine what employees feel, think, desire along with discovering how the workforce devotion and commitment can be increased (Yee et al., 2008). Employee satisfaction plays a significant role in defining organizational success. Employee’s satisfaction is central concern particularly in the service industry. The efficiency and effectiveness of organization directly depends upon the effectiveness of employees.
The major purpose of the study is to examine the impact of employee satisfaction on bank profitability of Nepalese commercial banks. The specific objectives of the study are; (a) to analyze the satisfaction level of the employees in Nepalese commercial banks, (b) to analyze the effect of promotion on employees satisfaction and bank performance, (c) to examine the effect of working environment on employees satisfaction and bank performance, (d) to examine the effect of working environment on employees satisfaction and bank performance.
Both primary and secondary sources of data have been used for the purpose of the study which is collected from primary questionnaire survey and annual reports of the sample banks respectively. The primary sources of data have been used to assess the opinion of respondents with respect to employee satisfaction and bank performance. The questionnaire survey has been conducted to record the opinions, and perceptions of bank employees about satisfaction and Nepalese bank performance. Primary data has been collected through questionnaire survey among bank employees of the sample banks while one year secondary data for the year 2014 for bank performance has been collected from annual reports of 15 commercial banks. Frequency of responses, percentages and ranking have been used to analyze the primary data while descriptive statistics, correlation analysis, stepwise regressions have been carried out to examine the secondary data.
The results revealed that employees in the bank are not satisfied well with the current salary and benefits. Employees find the salary level low as compared to others as well as how much they deserve. Employees are satisfied with working environment but they feel there is no fair and equal promotion policy in Nepalese commercial banks. Similarly, employees feel that they are less motivated at work. The result also finds that salary, promotion, working environment and motivation is found to be positively related to employee satisfaction.Likewise, employee’s satisfaction, salary, promotion and motivation is found to be positively related to return on assets (ROA) but significant relation is found only with salary. The study also concludes thatemployee satisfaction, salary, promotion and motivation is found to be positively related to net interest margin (NIM) while negatively related to working environment. Thus, there is positive relationship between employee satisfaction and bank profitability in Nepalese commercial banks.
The major conclusion of this study is that higher the employees’ satisfaction, higher would be bank performance (ROA, ROE and NIM). The study also concludes that higher the salary and motivation, higher would be employees’ satisfaction. Similarly, the result showed that of all the factors affecting employee satisfaction and profitability, salary is the most important one. The study also reveals that employee satisfaction of the commercial bank has strong and deep impact on the bank profitability, which can help to determine and enhance firm’s current and future value in the banking market. Hence, the study reveals that there is positive and significant relationship between employee satisfaction and bank profitability of Nepalese commercial banks.
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