CHAPTER I

INTRODUCTION
1.1 Background

Many businesses fail to understand the importance of organizational

environment for employee job satisfaction and thus face a lot of difficulties during
their work. Such organizations are internally weak therefore unable to introduce
innovative products into the market to outshine their competitors (Aiken, Clarke, &
Sloane, 2002). Employee is an essential component in the process of achieving the
mission and vision of a business. Employees should meet the performance criteria set
by the organization to ensure the quality of their work. To meet the standards of
organization, employees need a organizational environment that allows them to work
freely without problems that may restrain them from performing upto the level of
their full potential.

Job satisfaction is an orientation of emotions that employees possess towards

role they are performing at the work place. Job Satisfaction is the essential component
for employee motivation and encouragement towards better performance (Vroom,
1964). Many people have defined job satisfaction over the years. Hoppok and
Spielgler (1938) define job satisfaction as the integrated set of psychological,
physiological and environmental conditions that encourage employees to admit that
they are satisfied or happy with their jobs. Further, the role of employees at workplace
is emphasized as there is an influence of various elements on an employee within the
organization.

If employees are not satisfied with the task assigned to them, they are not
certain about factors such as their rights, organizational conditions are unsafe, co-
workers are not cooperative, supervisor is not giving them respect and they are not
considered in the decision making process; resulting them to feel separate from the
organization. Furthermore, in current times, firms cannot afford dissatisfied
employees as they will not perform up to the standards or the expectations of their
supervisor, they will be fired, resulting firms to bear additional costs for recruiting
new staff. So, it is beneficial for firms to provide flexible organizational environment
to employees where they feel their opinions are valued and they are a part of the

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organization. Employee morale should be high as it will be reflected in their
performance because with low morale, they will make lesser efforts to improve
(Clark, 1997).

Job satisfaction is all about how one feels about (or towards) one's job. An
employee who expresses satisfaction is said to have a positive attitude towards the
job, unlike a dissatisfied employee who has a negative attitude towards the job. A
person having negative attitude shows a personality disposition which is inclined to
experience nervousness, tension, worry, upset and distress, where as those with
positive attitude will feel happy with themselves, others, and with their work. Job
satisfaction reflects the extent to which people find gratification or fulfillment in their
work. Job satisfaction shows that personal factors such as an individual needs and
aspirations determine his/her attitude, along with group and organizational factors
such as relationships with co-workers and supervisors and organizational conditions,
work policies, and compensation. A satisfied employee tends to be absent less often,
to make positive contributions, and to stay with the organization. The effect of job
satisfaction goes beyond organizational setting. Satisfied employees are more likely to
be satisfied citizens. These people will hold a more positive attitude towards life in
general and make for a society of more psychologically healthy. Job satisfaction has
been defined many different ways by numerous researchers. However, Suk Lee
(2008) noted in her study, which all agreed that job satisfaction is a nebulous,
complex, but an important concept for human resource management practice because
it depends on so many different factors such as organizational environments, job
position, and work roles (Willa and Blackburn (1992). According to Wiley and Sons
Inc. (1976), job satisfaction is the favorableness or unfavourableness with which
employee view their work

In addition, it influences one's feelings of expectations and attitudes toward a

job. Vroom (1964) defined job satisfaction as the positive perception of an
individual's work and work role. Choi (2001) defined it as employee's feelings or
emotional responses to a job, which can be the result of the employee's expectancy
and actual outcome from the organizational environment. Hsiao and Kohnke (1998)
defined job satisfaction as one's emotional response to a job that results from the
person's expectations of job and the reality of the job situation.

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 Organizational environment plays an important role towards the employees'
performance. Several businesses fail to understand the importance of organizational
environment for employee job satisfaction and thus face a lot of difficulties during
their work. Employees should meet the performance criteria set by the organization to
ensure the quality of their work. Good organizational environment avoid job stress, it
helps to better outcomes and increased productivity. Organizational environment
allows the employees to work freely without problems that may restrain them from
performing up to the level of their full potential. The organizational environment
consists of two broader dimensions such as work and context. Work includes all the
different characteristics of the job like the way job is carried out and completed,
involving the tasks like task activities training, control on one’s own job related
activities, a sense of achievement from work, variety in tasks and the intrinsic value
for a task. Many research papers have focused on the intrinsic aspect of the job
satisfaction. Results have shown that there is a positive link between organizational
environment and intrinsic aspect of the job satisfaction. Further they described the
second dimension of job satisfaction known as context comprises of the physical
organizational conditions and the social organizational conditions (Skalli,
Theodossiou, and Vasileiou, 2008).

Spector (1997) observed that most businesses ignore the organizational

environment within their organization resulting in an adverse effect on the
performance of their employees. According to him, organizational environment
consists of safety to employees, job security, good relations with co-workers,
recognition for good performance, motivation for performing well and participation in
the decision making process of the firm. He further elaborated that once employees
realize that the firm considers them important, they will have high level of
commitment and a sense of ownership for their organization. Different factors within
the organizational environment such as wages, organizational hours, autonomy given
to employees, organizational structure and communication between employees and
management may affect job satisfaction (Lane, Esser, Holte and Anne, 2010). Arnetz
(1999) argue that in organizations, it can be observed that mostly employees have
problems with their supervisor who is not giving them the respect they deserve.
Supervisors also show harsh behaviours to employees due to which they are not
comfortable to share good and innovative ideas with their supervisors. Furthermore,

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he describes that top management limits employees to their tasks rather than creating
a sense of responsibility in employees by making them work in teams to attain high
performance.

Petterson (1998) argues that the interaction between employees within a

business is crucial for accomplishing the organizational goals. Further, he describes
that the communication of information must be properly done in a timely manner so
that the operations of the business are running smoothly. If there is a clash between
co-workers then it is difficult to achieve the objectives of organization.

Roelofsen (2002) showed that the organizational environment affects job

satisfaction. Comfortable organizational environment reduces complaints and the
level of absence for employees satisfied with their job. Organizations must be able to
create a conducive organizational environment. Organizational environment affects
job satisfaction. Job satisfaction is not only based on material benefits, an
organization with a positive communication climate, and positive social interaction
increased job satisfaction (Heartfield, 2012).

Condusive workplace characterized by a cheerful and pleasant atmosphere,

bright and cheerful decorations, proper arrangement of facilities and adequate
working space; all having positive effect on employee job satisfaction. Good
organizational environment condition helps employees accomplish their work and
organizational goals; making the workplace more enjoyable, thus increasing job
satisfaction (Mokaya et al., 2013).

Good working condition, refreshment and recreation facility, health and safety
facility, fun at workplace increase the degree of job satisfaction. On the other hand
workload, stress, overtime, fatigue, boredom are some factors to increase job
dissatisfaction. Effectual human resource management and preserving progressive
organizational environment would consequence the job satisfaction and performance
of organization as well as entire economy (Jain and Kaur, 2014).

Empirical research of Bakotic and Babic (2013) showed that there is no

significant difference in overall job satisfaction between workers who work in normal
working conditions and workers who work in difficult working conditions. Workers
who work in normal working conditions are more satisfied with working conditions
than workers who work under difficult working conditions. Organization should

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provided good working conditions which may act favorably on their overall job
satisfaction as well as their performance.

Based on the above discussion, the objective of this paper is to determine the
relationship between the organizational environment and employee job satisfaction in
different NGOs in Surkhet valley.

1.2 Statement of the Problem

Employee job satisfaction is a parameter that measures the depth of employee

affectionate or positive experience derived from the work. Researchers have
mentioned that employees with higher satisfaction tend to be more loyal and
productive, yet there are no exact formula on maximizing employee job satisfaction,
let alone a research to serve as an exact parameter of the factors influencing the job
satisfaction. The researcher's purpose in this study is to examine and analyze the
influence of the organizational environment condition towards employee job
satisfaction and to provide insight on how to increase employee job satisfaction
through the organizational environment.

The organizational environment is the important part of an organization to

improve the performance of employees. This study aims to analyze the effect of the
organizational environment on job satisfaction in different NGOs in Surkhet valley.
There are not much studies which have been conducted on the organizational
environment and the job satisfaction in NGOs in Surkhet. It is necessary to find out
the environment of NGOs and its impact on the employees' job satisfaction. Hence,
this study will be conducted to find out the impact of organizational environment on
job satisfaction. Hence, the problem of this study is stated as "Impact of
Organizational Environment on Job Satisfaction among Employees in NGOs: A Study
of Surkhet Valley."

1.3 Objectives of the Study

The general objective of the study is to analyze the impact of work

environment on job satisfaction. The specific objectives of the study are as follows:

1. To analyze the impact of working hours on job satisfaction.

2. To determine the impact of job safety/security on job satisfaction.

3. To assess the impact of rewards/promotion on job satisfaction.

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4. To determine the impact of relationship with co-workers on job satisfaction.

5. To assess the impact of relationship with management on job satisfaction.

1.4 Research Questions

This study has tried to find the answers of the following questions:

1. What is the impact of working hours on job satisfaction?

2. How does job safety/security affect on job satisfaction?

3. In what ways does rewards/promotion affect on job satisfaction?

4. How does relationship with co-workers affect on job satisfaction?

5. What are the impacts of relationship with management on job satisfaction?

1.5 Conceptual Framework

A conceptual framework is an analytical tool with several variations and

contexts. It can be applied in different categories of work where an overall picture is
needed. It is used to make conceptual distinctions and organize ideas. Strong
conceptual frameworks capture something real and do this in a way that is easy to
recline and apply.

This study aims to find out the impacts of organizational environment on job
satisfaction in NGOs in Surkhet valley. In this study, working hours, job
safety/security, rewards/promotion, relationship with co-workers and relationship
with management are taken as the independent variables and job satisfaction has been
taken as the dependent variable. On the basis of the objectives of the study, a
conceptual framework has been developed which is as follows:

Independent Variable
Working hours
Job safety/security
Rewards/promotion Dependent Variable
Relationship with co-workers Job Satisfaction
Relationship with management

Figure 1: Conceptual Framework

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Working Hours

Linga (2018) discovered the level of satisfaction of the junior executives of

private sector under working hours and job stress. This research proposal is also for
find out the response to dissatisfaction under overload working hours (work life
balance) and job stress. Most of the private companies are not conscious of work-life
balance, job stress and barely have any policy regarding the work-life balance issues.
At this moment, different socio-economic barriers and lack of human right awareness
may support the management for not taking this issue seriously. However, if they
want to achieve their business objectives through the development of the human
resource then there is no alternative to develop the working lives of their workforce.
Management should consider the nature of business and background of employees
they have employed and customize their policies with the participation of the
employees. This research will represent the current scenario of work life balance in
private sector of Hyderabad which is adopted by the management. The data were
collected keeping in consideration features such as gender, age, executive position
and tenure of job. Factors involved are job satisfaction and work life balance with
respect to flexible working conditions, work life balance programs, employee
intention to change/leave job, work pressure/stress and long working hours. Data will
be collected using primary sources. Primary data will be collected through
questionnaires and will analyze using statistical equation, Ms-excel, SPSS, test
applied will be correlation.

Job Safety/Security

Job satisfaction levels decrease when an employee feels threatened by a lack

of job security. A worker is filled with feelings of discontent and uncertainty when his
future at the company is uncertain, which leads to resentment. However, an employee
with job security is able to envision his future at the organization, making him feel
valued and satisfied with his current position. When an employee feels threatened by
a lack of job security, she may stop putting the necessary effort into completing
assignments and interacting with colleagues, due to a belief of having no future with
the organization. Conversely, a worker with a solid sense of job security plans to work
for the company for the foreseeable future, so she maintains relationships with
colleagues and completes her work to stay employed (Woods, 2019).

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Rewards

Rewards always play an important role in organization's growth and better

performance. This study examines the impact of intrinsic and extrinsic rewards on job
satisfaction, a case of call centre employees in Pakistan. The data was collected from
210 call center employees that were working in different telecom organizations.
Standardized questionnaire was use to collect data. Results showed positive trends in
all variables. Extrinsic rewards are comparatively more important than intrinsic
rewards when job satisfaction of employee was evaluated. The results of regression
analysis show that job satisfaction is more dependent on extrinsic rewards as
compared to intrinsic rewards. The results and its implications for managers have also
been discussed (muhammad et al. 2012).

Promotion
Kosteas (2016) estimates the impact of promotions and promotion
expectations on job satisfaction using the 1996-2006 waves of the NLSY79 dataset.
Having received a promotion in the past two years increases the probability a worker
will be very satisfied with her work by ten percentage points. This result holds while
controlling for the worker’s current wage, wage relative to her peer group and her
lagged wage. Thus, the effect of promotion receipt on job satisfaction is independent
from any accompanying wage increase. This finding indicates that employers may be
able to use promotions as another mechanism to raise worker satisfaction. Workers
who believe a promotion is possible in the next two years also report higher job
satisfaction. Furthermore, the effect of promotion receipt and promotion expectations
does not depend on whether the respondent believed a promotion was possible over
the past two years. These results suggest that the effect of promotions on job
satisfaction does not depend on fulfilling the worker’s expectations. Employers may
be able to raise job satisfaction by maintaining the belief that a promotion is possible,
even if that promotion does not materialize, suggesting that perceived fairness in
promotion processes may play a large role. These results are robust to dynamic panel
estimation techniques accounting for potential endogeneity of the promotion
variables.

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Relationship with Co-workers
If an employee feels emotionally or socially detached at work and cannot seem
to fit into the organization's culture or blend with other colleagues, feelings of
dissatisfaction may start to surface. The employee may prefer to find a different job
than try to approach the issue directly. Workplace relationships and interaction have
an impact on employee satisfaction and retention. Negative attitudes can lead to
isolation and loneliness, which may instigate an employee's desire to resign. One
method of engaging in workplace relationships is for employees to participate in team
competitions. Sales competitions, for example, can give employees a sense of control
over their success. Team activities encourage employees to work together for a
common goal. Working together encourages employees to support each other. The
winning team also feels a sense of accomplishment and satisfaction (Ramji, 2019).

Relationship with Management

Management refers to the policies and actions involved in the integral
management of employees, including job analysis, recruitment, selection, orientation,
compensation, performance evaluation, training, development and industrial relations.
Managment constitutes the visible side of the organizational culture, in other words,
actions that impart identity to the companies. So far, there is no univocal and
consensual definition of management in the sense that they are "specific actions used
by companies to attract, motivate, retain, and develop employees". The adoption of
appropriate management benefits companies, since they contribute to maximizing the
capabilities of their human resources. However, lately it has been reported that it is
not the best practices that matter, but the combination of those that fit the strategic
vision of the company. According to this perspective, the key point for the sustainable
management of human resources is to have effective management that can achieve
competitive advantages, creating a unique value inimitable by the competitors and,
therefore, a strategic hallmark (Becker et al., 2015).

1.6 Significance of the Study

This study is necessary because of the need to find out the job satisfaction of
employees with the organizational environment of NGOs. Therefore, this study is
essential because it help identify the factors of organizational environment that affect
job satisfaction of employees.

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 This study will contribute in assessing the factors of organizational
environment that affect job satisfaction of employees. There should be a regular
evaluation of organizational environment to monitor and evaluate physical work
condition, communication climate, and how fit rules and procedures with organization
strategies. This is aimed at enhancing internal environment of organizations and
performance of employees and their satisfaction towards their job. Employees will be
able to be sensitized about their roles, key result areas, competences and expected
performance output. For the organization, the study will be beneficial for the
organizations as they should provide necessary facilities, conducive work
environment and take actions for employee welfare to improve job satisfaction and
organizational commitment. It is believed that job satisfaction and organizational
commitment results in organizational behavior, both encourages employees’
voluntary involvement with the organization, and create personal goals that align with
organizational goals.

This study will prove that work environment can predict internal job
satisfaction and organization commitment. Job satisfaction and organizational
environment can predict internal organizational behavior. This study will also serve as
a future reference for the researchers who wish to conduct studies related to the
impact of organizational environment on job satisfaction of employees in different
government and non-government sectors.

1.7 Limitations of the Study

Today’s world is dynamic. Everything existing here are of limited characters.

Every principle, role, formula and conditions are applied within limitations. Likewise,
this study cannot escape from limitations. Therefore, the limitations of this study are:

1. The universe of the study was only limited within the entire number of
employees of different NGOs in Surkhet valley.

2. The study was limited within the job satisfaction of employees with the
organizational environment of NGOs.

3. Questionnaire was only used to collect primary data for the purpose of the
study.

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4. The respondents were limited within 95 employees of different NGOs in
Surkhet valley.

1.8 Organization of the Study

This study has been organized within the following chapters:

Chapter I: Introduction

This is the introductory chapter which covers the background of the study,
statement of the problem, objectives of the study, research questions, conceptual
framework, significance of the study, limitations of the study and the organization of
the study.

Chapter II: Review of Literature

This includes the review of the previous research work related to the job
satisfaction of employees with organizational environment. For this purpose, various
books, journals and periodicals as well as internet were used.

Chapter III: Research Methodology

This chapter describes the research methodology like research design,

population of the study, sampling design, questionnaire development, questionnaire
administration and data analysis and presentation.

Chapter IV: Presentation and Analysis of Data

This chapter represents the presentation and analysis of data collected through
various sources. It also contains the analysis and interpretation of the data using tables
and figures.

Chapter V: Summary, Conclusion and Recommendations

This chapter comprises the summary of the entire thesis. It describes major
findings of the thesis and provides some suggestions and recommendation based on
the analysis of the study. It also offers several avenues for future research.

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 CHAPTER II
LITERATURE REVIEW
2.1 Theoretical Review

All organizations perform their duties with the assistance of resources such as
manpower, machines, materials and money. Each of these resources depends on each
other for total production to be successful. Performance of an employee usually refers
to whether the employee does their job and duties to the best of their ability.
Employee performance has proven to have either a positive or negative effect on
productivity (Robbins, 2000). Employees play a crucial role in an organization and
contribute widely to the production process. Various factors have an impact on
employee duties, which in turn affect their overall performance and productivity.
Employee satisfaction is not seen as the main factor causing individuals to work at
different rates (Daniels, 2001). Employee satisfaction is the positive impact of
employees toward their jobs or organizational environments. Additionally, the
determinants of the study include organizational environment, remuneration, training,
job security and fairness of treatment. The responsibility of any institution whether it
is an large organization or a small firm, is the ability to attain higher levels of
productivity having employees as the dynamic operative organizational system.
Attitudes of the current employees, whether satisfied or dissatisfied, regulate the
magnitude at which the organization possibly will achieve its goal. In light of this
concept, it is of paramount importance to comprehend the factors that affect the
degree of employee satisfaction (Mohamad and Daud, 2011).

The organizational environment is defined by Huysamen (1997) as physical

organizational environment, human work environment, and organizational
environment. The physical organizational environment is the physical aspect of the
organizational area such as place, lighting, appliances, etc. The human organizational
environment is the relationship between the employees with their peers. The
organizational environment is the procedures and organization system that runs in the
workplace.

The job satisfaction concept is referring to Locke concept which states that job
satisfaction is (1976) “a pleasurable or positive emotional state resulting from one’s

12
job or job experience”. Leblebici (2012) states that when employees are satisfied with
the workplace quality their performance will increase. Parvin (2011) conducted a
research on the factors affecting employee job satisfaction of pharmaceutical sector.
The result of his research was that organizational environment factor is one of the
major influencer of employee job satisfaction.

Moreover, Noah and Steve (2012) research aims on assessing the relation of
work environment towards the job attitude and organizational commitment of
employees in Nigeria, the result of this research is that work environment give
significant influence towards employee job satisfaction. By conducting such research,
the writer hopes that he will be able to prove the influence of work environment
towards employee job satisfaction. Thus, providing insight for companies to increase
the employee job satisfaction and increase their productivity.

Performance (work performance) is an achievement and result for the

implementation of certain tasks (Widodo, 2015). An employee has a good
performance if that employee is able to do the same work or exceed the standards or
criteria that have been set together in the organization. On the other hand, an
employee hasn’t a good performance if the work is less than the standards or criteria
that have been set together. Successful and effective organizations are organizations
with individuals who have good performance. In conclusion, if the employees who
work in an organization have a good performance then effectiveness or success an
organization will be achieved.

Improving work performance will be fulfilled if organizational environment

supports daily work activities. Furthermore, the organizational environment in an
organization is very important to note by management. A satisfactory organizational
environment for employees increases improve performance, otherwise inadequate
organizational environment decreases employee performance. Organizational
environment, according to Nuraini (2013), is everything around the employees which
affects in perform an assigned task, for example, the availability of the air conditioner
(AC), adequate lighting etc. To design organizational environment, there are two
things to note which are the physical environment and social environment in the
workplace that aim equally to give effect in work comfortability. The organizational
environment is good or applicable if people can perform activities optimally, healthy,
safe and comfortable. Inadequate organizational environments may demand more

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labor and time and do not support the design of the efficient work systems
(Sedarmayanti, 2011).

The importance of organizational environment in a company is the most

important part because it will be able to improve employee performance. Dewi
(2015), found that there is a significant influence between organizational environment
and employee performance. In line with that, Sahlan et al (2015) show that the
organizational environment, job satisfaction, and compensation simultaneously have a
significant effect on employee performance.

Another considered factor in maintaining and improving employee

performance is organizational culture. Organizational culture is thought to affect
employee performance. Organizational culture is a very important role in supporting
the creation of an organization to be efficient and effective. More specifically,
organizational culture can play a role in creating an identity of the members of the
organization, developing the participation of each member of the organization and
presenting work performance guidelines for its members. The effectiveness of the
organization can be enhanced by creating a strong culture, which can be used to
achieve organizational goals. Riani (2011) stated that organizational culture as
dominant values is spread in the organization which is used as work philosophy and
guides the organization's policy in managing employees.

A strong organizational culture supports corporate goals, on the contrary,

weak or negative things obstructs company goals. In a company with strong
organizational culture, shared values are done strongly, embraced, and supported by
most of its organizational members (company employees). Strong and positive culture
is very influential on the behavior and effectiveness of company performance.
Haryanti (2007), found that organizational culture has a positive and significant effect
on employee performance. Thus, Susetyo et al (2014) also explained that
organizational culture and organizational environment have a significant effect on
employee performance.

In addition to the organizational environment and organizational culture, job

satisfaction is also closely related to employee performance. A person who is satisfied
with his work will have a high motivation, commitment to the company and strong
work participation which keep improving his performance. If job satisfaction is not

14
maintained, it may result in a lack of employee involvement and responsibility to the
company. Handoko (2014), argued that job satisfaction is a pleasant or unpleasant
emotional state by which employees view their work. Job satisfaction reflects one's
feelings toward one's work. It shows an employee's positive attitude to the job and
everything which are related to organizational environment.

The organizational environment can be everything that exists around the

employee and can affect his or her duties. Alex S. Nitisemito (2006) argues that the
organizational environment is an external and internal state that can affect the
organizational spirit and cause an instant stop. According to Sedarmayanti (2003), a
decent organizational environment is a condition where people can do their job
perfectly, safely, healthily and comfortably. Therefore, in many studies, the
organizational environment is classified under toxic and favourable conditions
(Akinyele, 2010, Chaddha, Yusuf and Metiboba, 2012, Assaf and Alswalha, 2013).
McGuire and McLaren (2007) believe that the physical environment of an
organization, especially its structure and design, can affect employee behaviour in the
workplace. As noted by Nitisemite (2001), some factors affecting the workplace
include cleaning, water, lighting, paint, safety and music. Many workplace studies
have shown that employees are satisfied with the specific features of the
organizational environment. These user-preferred features greatly increase their job
satisfaction and performance. A productive office environment consists of several
elements. Al-Anzi (2009) defines; Furniture, noise, flexibility, comfort,
communication, lighting, temperature and air uality as components of office design
operation and simple background for movement.

Comfortable people are more productive for a better organizational

environment. However, comfort is one of those words that are easy to use and
difficult to define. People feel comfortable when they feel comfortable. It is a state of
mind that depends on physical feelings and emotional states. Creating an effective
personal environment should take into account these two elements as well as cost and
technology constraints (Pandey and Noida, 2011.

Job satisfaction is an approach of workers about their work. Job satisfaction is

about holding the right person to the right job keeping them satisfied as it plays a
crucial role in keeping the employees within the institution. Organizational
environment comprises of social, cultural, organizational and environmental elements.

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Social elements include organizational relationship, interaction and association with
colleagues. A person’s beliefs, attitude, values, and religious components are part of
cultural element. The size and structure of the workplace, employee-employer
relationships, management abilities, leaderships, delegation and all such things are
organizational elements which affect job satisfaction. Financial, social, technical and
governmental or political influences constitute environmental elements (Abou, 2013).

The term "job satisfaction" is the attitude of employees towards their work. It
is based on many factors; some of them are internal factors and others are non-
employee. Employee satisfaction is crucial to maintaining and maintaining the right
and effective people within the organization. In this sense, it is the right position of
the right person in the right culture and its maintenance. In addition, job satisfaction is
an important variable that is taken into account when evaluating an organization's
success. To be effective and efficient, an organization must meet the expectations and
concerns of its employees. In other words, in order for an organization to be
successful, it must constantly ensure the satisfaction of its employees. In addition, job
satisfaction has been extensively studied in many areas of knowledge such as
organizational theory, psychology, administration science, economics and sociology
(Samaiya, 2015).

As Landy observed (1978), this usually stems from the fact that many of the
experts feel that changing job satisfaction affects many organizational outcomes, such
as labor productivity, productivity, delays or omissions, employee intentions to give
up your job. Accidents and occupational safety at work, mental / physical health and
overall satisfaction with life. Therefore, as Serrano and Vieira (2005) say, job
satisfaction is an important factor in determining the overall well-being and
satisfaction of an employee's life, and dissatisfaction is a good reason for an
employee's intentions or decisions workers leave work and leave work (Gazioglu and
Tansel, 2006).

Organizations have a strong influence on their employees, and some of these

effects are reflected in the behavior of their employees and their organization as a
whole (Spector, 1997). This shows that job satisfaction is important for both
organizations and employees. Because a number of studies have shown that
organizations use the behavior of satisfied employees because they are more likely to

16
have better employee turnover and productivity when their employees are
experiencing great job satisfaction.

Employees must also be satisfied with their work, depending on how long they
need to spend (Nguyen, Taylor and Bradley, 2003). Job satisfaction is self-sufficient
because it is part of the social well-being of employees - deciding whether or not to do
or maintain a job, and the extent of their effort will depend heavily on a partially
positive employee attitude that reflects his personal his work, in other words, the
pleasure of organizational (Clark, 1998).

Employee satisfaction can be seen as one of the key factors contributing to the
efficiency and effectiveness of business organizations. In fact, the new management
approach, which states that employees should be valued and treated first and foremost
as people with their desires, needs, personal desires, is a good indicator of job
satisfaction in modern organizations. When considering job satisfaction, a satisfied
employee is a healthy worker, and a happy employee is a successful employee. The
value of job satisfaction is largely achieved by taking into account many of the
negative consequences of job dissatisfaction, such as lack of loyalty, an increase in
the number of incapacity for work, an increase in accidents, and so on.

Spector (1997) lists three important characteristics of job satisfaction:

organizations that operate in the context of Universal Values will be people oriented
towards respect for and interaction with employees. The result of job satisfaction on
these issues can be a key indicator of employee performance. A high level of job
satisfaction can be a symbol of good mental and emotional staff. Second, employee
behavior based on their level of job satisfaction will have a major impact on the
performance and processes of the entire organization's subsystem. In this sense, we
can conclude that job satisfaction will be positive behavior and job satisfaction, which
will lead to negative employee behavior. Third, employee satisfaction with work is
considered a good indicator of organizational performance. Different employee
evaluation systems may have different levels of job satisfaction in different
organizational units, but it is a good indicator of what organizational actions or unit
changes need to be done to increase their effectiveness.

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 One of the most important indicators in organizational research is employee
satisfaction. Spector (1997) suggested a simple description of "how much people like
or dislike their work". Andrisan (1978) proposed a broader description of "work done
by a worker or specific work-related components". Locke (1976) had a more
comprehensive definition because he used emotional states in his description; "A
pleasant or positive emotional state caused by an assessment of work or work
experience". The grandson (2017) described this as an emotional response to the
environment. Several indicators were used to measure employee satisfaction, such as
Wages and Professional Progress, and this was considered to be a stable way to work.
Müller and McCloskey (1990) have shown that job satisfaction has a positive impact
when managers consider employment. Researchers identifying the link between
efficiency and job satisfaction (Petty et al. 1984, Fisher, 2003) accelerated the pace of
research in organizational research, and the efficiency and satisfaction ratio was
described as "Holy Grail" (Weiss and Copranzone). 1996).

Workers' satisfaction with their work has long been an important issue for
researchers (Fields, 2002). Scientists have investigated previous aspects of Job
Satisfaction (JS) and the relationship between JS and work-related outcomes, such as
commitment and employee turnover (Fields, 2002). The most mentioned definition of
job satisfaction was proposed by Locke (1976), which JS identified as a pleasant or
positive emotional state, assessed by evaluating a person's work (Haque and Taher,
2008). JS is also defined as the general attitude of a person to his work (Robbins,
1999). Several factors, such as employee needs and desires, social relationships,
management style and quality, job planning, wages, organizational conditions,
expected long-distance opportunities, and opportunities in other countries are
important for JS (Byars and Rue, 1997, p.316; Moorhead & Griffin, 1999, p. 99). A
person can be quite satisfied with one aspect of their work and cannot be satisfied
with one or more other aspects. The general JS depends on what a person expects and
what they get. The employee will be satisfied with fewer recipients if they expect less.
The high level of acceptance requires that the employee is satisfied with high
expectations.

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 Mirvis and Lawler (1984) suggested that Quality of Work Life (QoWL) be
linked to wage satisfaction, organizational hours and organizational conditions. It
describes "the key elements of good work quality", such as Safe Organizational
Conditions, Fair Pay, Equal Employment Opportunities and Promotion Opportunities.
Warr, Cook, and Wall (1979) discussed a number of correlations derived from their
work, such as the relationship between engagement at work and JS, internal
motivation, and JS, as well as perceived internal characteristics and job satisfaction.
JS has been associated with QoWL in recent years (Walton, 1972).

Tobi et al. (2013) has shown that employee health will have a major impact on
job satisfaction. According to a study carried out by the National Institute for
Occupational Safety and Health (NIOSH) (2006), 40% Employees believe that they
can work satisfactorily, "very" or "very much", and 26 percent. They feel "burnt" at
work. Other studies, such as Vassie and Lucas (2001), have shown that increased
participation in occupational safety and health can contribute to the positive
assessment of various occupational safety and health initiatives, including ergonomic
changes risks and the overall security environment. Health According to Bottany et al.
(2009), if the organization has implemented good safety and health practices and
better understood that the organization is caring for the employees, and this will partly
contribute to employee satisfaction.

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 It is logical that people who feel comfortable in their organizational
environment work much more efficiently and like to work more than those who feel
uncomfortable. Therefore, you should carefully consider some aspects of your
workplace. There are several problems that affect the comfort of the organizational
environment. The first problem is noise. If there is a problem with workplace noise,
special measures should be taken, such as Measuring the Noise Level of a Competent
Person. Noise can cause irreversible damage to your hearing as well as increase stress.
This is mostly caused by noisy cars, and the noise level must be checked when
purchasing any new plant or equipment. Such measures are usually fairly simple, for
example, they provide workers with hearing protectors, rotate workers in noisy
mechanisms to reduce their lifetime, and they clearly indicate any area where "high
noise" warns people of the risks. (Hughes 2009).

Aryee, Srinivas, and Tan (2005) and Lewis and Cooper (1999) state, changing
economic trends, demographic shifts, technological advances and competitive forces
have made the work-life balance a pertinent area of concern to scholars, individuals
and organizations across the globe (Baral and Bhargava, 2011). A lot of researches
have been done to identify an acceptable definition of ‘work-life balance’; still there
is a very little evidence to get an ideal definition so far. Most of the major reviews of
work-family relations either do not mention work-family balance or mention balance
but do not explicitly define the concept (Greenhaus, Collins, & Shaw, 2003).
Moreover, empirical studies that discuss balance between work and family roles
generally do not distinguish from other concepts in the work (Greenhaus, Collins, &
Shaw, 2003). As Burke (2004) and Lewis at el (2007) argue, ‘wok-life balance’ is a
contested term because the term ‘balance’ suggest that work is not integral to life and
it implies a simple tradeoff between the two spheres as it encourages quick-fix
solutions that do not address fundamental inequalities, and that therefore shift
responsibility for balancing work and home life onto individuals (Gregory and Milner,
2009).

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 Work-life balance policies and family supportive cultures have been observed
in France and Japan. There is a wide variety of work-life balance initiatives for
employees being incorporated by organizations and include flexible work hours, job
sharing, parental leave on-site child care facility and telecommuting (Hartel et al.
2007). Studies suggest that in absence of work-life balance, employees’
dissatisfaction increases. However it is found that when employees’ need in respect of
creating a work-life balance is met by different organizational programmes they show
higher job satisfaction and organizational commitment (Gregory and Milner, 2009). A
study was conducted in Pakistan by Nadeem and Abbas, (2009) to discover the
relationship among work life conflict and employee job satisfaction at all levels of the
management in public and private organizations. Findings showed that job
satisfaction at top level of management has negative correlation with family to work
interference, family to work interference and stress and job satisfaction has positive
correlation with job autonomy. Job satisfaction at the middle level of employees
decreases when work life conflict and stress increases. Job satisfaction at the lower
level of employees has negative correlation with stress and family to work
interference and positive correlation with job autonomy.

Hanglberger (2010) studied the effect of working hours on employees’ job

satisfaction and finds a positive relationship between them. The same was analyzed
by Gash et al. (2010) for women in UK and Germany and the findings supported
Hanglberger studies, showing a positive effect of reduced working hours on
employees’ life satisfaction. Another study (Malik et al. 2010) was conducted in
Pakistan to investigate the relationship between work-life balance, job satisfaction and
turnover intentions among medical professionals in hospitals.
The level of employees’ job satisfaction increases by many factors and when
employees are satisfied with their work, they feel motivated (Noor, 2011). The
demand of employees work life balance is increased by change in trends in the
business such as change in organizations structure, diversity of work force and female
employees working in organizations. Organizations should provide work life balance
facilities to their employees so that employees can perform their duties effectively and
leads organization to the success (Parvin and Kabir, 2011).
The main message of this debate is the need for ‘good work-life balance’, on
the other hand, the debate and successive policy are frequently based on theories

21
about work and life copied from dull readings of empirical data or misconceptions
about employee attitudes to work and life. According to IDS (2000), the work-life
balance debate presumes that individuals have too much work rather than too little
work – a debilitating working hour culture is said to be persistent (Eikhof, Warhurst,
& Haunschild, 2007, p. 326). In addition, it is also claimed in some cases, work is not
just ruling but also ruining our lives (Eikhof, Warhurst, & Haunschild, 2007).
According to Fafnani and Letablier (2004), in France campaigns for reducing working
time have rallied around the phrase ‘work less, live better’ (Eikhof, Warhurst,
&Haunschild, 2007, p. 326).
The study of Baral and Bhargava (2011) indicates that from an organizational
perspective, involvement in family roles should not be viewed as an obstruction, since
it provides opportunities to acquire skills, knowledge and increase efficiency to
perform better at work and vice versa. As a result, organizations should make efforts
to stimulate the experience of enrichment. Greenhaus, Collins, and Shaw (2003)
argue, the beneficial effects of balance are based on the assumption of positive
balance and positive balance has a more substantial positive impact on quality of life
than negative balance. They suggest that an equally high investment of time and high
association in work and family would diminish work-family conflict and stress
thereby enhancing an individual’s quality of life. On the other hand, Hobson, Delunas,
and Kesic (2001) accumulated a number of long research findings based on U.S.
employees and tried to assess the outcomes of not having a proper work-life balance
in organizations. The findings include – increased levels of stress and stress-related
illness, higher rates of family strife, violence and divorce, higher rates of absenteeism
and turnover, reduced productivity and job satisfaction. However, the existence of
work-life balance in itself does not create difficulties and offense within
organizations; rather, in situations where there is already excessive workloads, under-
staffing, and last minute, unpredicted tasks, the existence of work-life balance is
likely to exacerbate the situations (Drew & Murtagh, 2005).
On the other hand, there are quite a few research studies on work-family
conflict in developing countries like India and Bangladesh and one of the reasons
could be the lack of awareness of this issue as well as the lack of awareness of equal
employment opportunity act. According to Baral and Bhargava (2011), a study on
work-family enrichment in India would be prudent because of its cultural roots, where

22
people consider work as a source of earning and social status. At the same time, for
people in India, family is a social institution that provides not only emotional support
but also stands with them in times of crisis (Baral & Bhargava, 2011). The same
scenario is very much pertinent in Bangladesh.

2.2 Review of Previous Studies

There has been numerous research about job satisfaction. Judge and Church
(2000) mentioned that “The most widely investigated job attitude-job satisfaction may
be the most extensively researched topic in the history of industrial/organizational
psychology”. Job attitude and job satisfaction become an important issue due to their
relationship towards employee productivity as suggested by Janz (2003). So, in order
to improve employee productivity and performance, companies need to pay attention
towards the employee job satisfaction because higher level of job satisfaction leads to
higher employee productivity and performance

Raziqa and Maulabakhsha (2014) analyzed the impact of organizational

environment on employee job satisfaction. The study employed a quantitative
methodology. Data was collected through a self-administered survey questionnaire.
The questionnaire is adopted from a previous validated survey. The target population
consists of educational institutes, banking sector and telecommunication industry
operating in the city of Quetta, Pakistan. Simple random sampling is used for
collection of data from 210 employees. In the modern era, organizations are facing
several challenges due to the dynamic nature of the environment. One of the many
challenges for a business is to satisfy its employees in order to cope up with the ever
changing and evolving environment and to achieve success and remain in
competition. In order to increase efficiency, effectiveness, productivity and job
commitment of employees, the business must satisfy the needs of its employees by
providing good organizational conditions. The results indicate a positive relationship
between organizational environment and employee job satisfaction. The study
concludes with some brief prospects that the businesses need to realize the importance
of good organizational environment for maximizing the level of job satisfaction. This
paper may benefit society by encouraging people to contribute more to their jobs and
may help them in their personal growth and development. Hence, it is essential for an
organization to motivate their employees to work hard for achieving the
organizational goals and objectives.

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 Work has been done to understand the relationship between organizational
environment and job satisfaction all around the world in different contexts over the
years. The study is gaining more and more importance with the passage of time
because of its nature and impact on the society. The findings of a Danish study
suggest that a firm can increase its productivity through the improvement of physical
dimensions of organizational environment (internal climate) and may have a positive
impact on firms’ productivity (Buhai, Cottini, & Nielseny, 2008).

Herzberg et al. (1959) developed motivational model for job satisfaction and
through research he found that the job related factors can be divided into two
categories, Hygiene factors and motivation factors. Hygiene factors can not cause
satisfaction but they can change dissatisfaction into no dissatisfaction or short term
motivation, whereas motivational factors have long lasting effect as they raise positive
feelings towards job and convert no dissatisfaction into satisfaction. In the absence of
hygiene factors (that are organizational conditions, supervision quality and level, the
company policy and administration, interpersonal relations, job security, and salary)
the employees chances of getting dissatisfied increase.

Baah and Amoako (2011) described that the motivational factors (the nature of
work, the sense of achievement from their work, the recognition, the responsibility
that is granted to them, and opportunities for personal growth and advancement) helps
employees to find their worth with respect to value given to them by organization.
Further, this can increase motivational level of employees which will ultimately raise
internal happiness of employees and that the internal happiness will cause satisfaction.

Hygeine factor can only cause external happiness but they are not powerful enough to
convert dissatisfaction into satisfaction but still its presence is too much important.
According to them the Herzberg Two Factor Theory, both Hygiene and Motivation
factors are linked with each other, as Hygiene factors move employee from Job
dissatisfaction to No Job dissatisfaction, whereas motivation factors moves employees
from no job dissatisfaction to job satisfaction (Herzberg et al., 1959).

Sell and Cleal (2011) developed a model on job satisfaction by integrating

economic variables and work environment variables to study the reaction of
employees in hazardous organizational environment with high monetary benefits and
non-hazardous organizational environment and low monetary benefits. The study

24
showed that different psychosocial and organizational environment variables like
work place, social support has direct impact on job satisfaction and that increase in
rewards does not improve the dissatisfaction level among employees. The
supervisors’ availability at time of need, ability to interlink employees, stimulate
creative thinking and knowledge of worth of open mindedness in view of workers,
and ability to communicate with employees, are the basic supervision traits. Results
revealed that with good and effective supervision, employees’ satisfaction level was
high whereas with poorer communication ability, dissatisfaction level among
employees was high (Schroffel, 1999).

Another study by Catillo and Cano (2004) on the job satisfaction level among
faculty members of colleges showed that if proper attention is given towards
interpersonal relationships, recognition and supervision, the level of job satisfaction
would rise.

Bakotic and Babic (2013) found that for the workers who work under difficult
organizational conditions, organizational condition is an important factor for job
satisfaction, so workers under difficult organizational conditions are dissatisfied
through this factor. To improve satisfaction of employees organizational under
difficult organizational conditions, it is necessary for the management to improve the
organizational conditions. This will make them equally satisfied with those who work
under normal organizational condition and in return overall performance will
increase.

A study in telecom sector by Tariq et al (2013) revealed that there are different
variables like workload, salary, stress at work place and conflicts with family due to
job leads an employee towards dissatisfaction that further results in turnover. At final
stage these independent factors impacts negatively on organizational performance
which is negatively influenced by these factors.

Chandrasekar (2011) argue that an organization needs to pay attention to

create a organizational environment that enhances the ability of employees to become
more productive in order to increase profits for organization. He also argued that
Human to human interactions and relations are playing more dominant role in the
overall job satisfaction rather than money whereas management skills, time and

25
energy, all are needed for improving the overall performance of the organization in
current era.

Dubin (1968) found that job satisfaction is based on the workers attitude about
their jobs and its correlation with characteristics of the work they do. The study
further mentioned that there is positive correlation between job satisfaction and
organizational conditions, but dissatisfaction with pay could overpower all other
factors.

Corine et al. (2011) conducted a study based on 412 employees in two large
organizations in Netherland: one in retail and one in health care. It was found that HR
practices help employees to feel better able to meet the requirements of their jobs and
to feel that their needs are fulfilled by the job, which in turn enhances job satisfaction.
The study shows a direct relationship as well as mediating and moderating role of
person organization and person-job fit in the relationship between perceived HR
practices and employee job satisfaction.

Baah and Amoako (2011) described that the motivational factors (the nature of
work, the sense of achievement from their work, the recognition, the responsibility
that is granted to them, and opportunities for personal growth and advancement) helps
employees to find their worth with respect to value given to them by organization.

Ardakani, Jowkar and Mooghali (2012) examined the relationship between

organizational environment, job satisfaction, and job performance. In this model the
organizational environment dimensions were considered as an exogenous variable and
performance and job satisfaction as an endogenous variable. Research participants
were 280 formal, contractual or agreement employees in Shiraz University and were
selected based on stratified sampling with a fixed ratio. In order to measure the study
variables, Kenzy organizational environment questionnaire (2008), Lee & Allen
citizenship behavior questionnaire (2002) and Spector job satisfaction questionnaire
(1997) were used. The two variables of open systems and reasonable goals are
positive predictors of job performance. Environment of human relations and internal
processes are positive predictor of job satisfaction, and open systems environment
were negative predictors of job satisfaction. Overall findings showed that a high level
of employee’s motivation is affected by organizational environment

2.3 Research Gap

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 There are a lot of studies conducted on women entrepreneurship, its challenges
and opportunities and the role of different financial and non-financial organizations
on the growth of women entrepreneurship. But there are only a few studies that have
been conducted on the impact of commercial banks on the growth of women
entrepreneurship. Therefore, to fulfill this gap, this study has been conducted on the
impact of commercial banks on the growth of women entrepreneurship in Surkhet
valley of Nepal.

CHAPTER III
RESEARCH METHODOLOGY
This chapter includes the detail of research methodology that has been used in
this study. It is concerned with formulating the plans and procedures, measurement
instrument development, methods for data collection, analysis and interpretation. The
chapter deals with justification the methodology used for finding solutions to the
research problems. The strategy of sampling design (i.e. universe of population,
sampling frame, and sample selection technique and sample size) has also been
discussed in this chapter.

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3.1 Research Design

In order to collect data, questionnaire, one of the types of survey was

formulated in order to find out the impacts of organizational environment on job
satisfaction in NGOs of Surkhet valley. This study followed quantitative and
descriptive research design for analyzing the information collected from the
respondents.

3.2 Population and Sample

A research population is generally a large collection of individuals or objects

that is the main focus of a scientific query. It is for the benefit of the population that
researches are done. However, due to the large sizes of populations, researchers often
cannot test every individual in the population because it is too expensive and time-
consuming. This is the reason why researchers rely on sampling techniques.

The target population of this study was the employees of NGOs in Surkhet
valley. As of mid January 2017, there were 94 NGOs operating in Surkhet District.
The population of this study were all the employees of Surkhet based NGOs. Among
the total population of employees of NGOs, 95 were selected as sample using
convenient sampling method.

3.3 Sampling Design

Sampling method is one of the important processes of sample selection during

survey. In statistics, sampling describes the process of selecting sample elements from
target population in order to conduct survey. In survey process, sampling helps to
describe and analyze the characteristics, attitudes of the target population. The
purpose of sampling is to secure a representative group which enables the researcher
to gain information about an entire population when faced with limitations of time,
funds and energy. Convenient sampling method was used to select the sample
respondents. The information was collected from 95 employees of different NGOs in
Surkhet valley.

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3.4 Data Collection Instrument

For this study, both the primary and secondary sources were used for data
collection. The data were both the quantitative as well as qualitative in nature.

3.5 Questionnaire Development

Questionnaire has been developed in Nepali and English language because all
the respondents will not be able to understand English language. Some questions were
self-developed and some were adopted from previous researches. Most of the
questions were formulated in close-ended patterns. All questions have been
formulated in multiple chose categories questionnaire. The questions were
respondents profile questions and subject related questions.

3.6 Questionnaires Administration

Direct communication was made with the respondents to collect information

and discuss about the survey work. Then the respondents were requested to set the
proper time for visit. Same size of the survey was 95 respondents and discussed
individually. Based on this, all the questions were self-filled up.

3.7 Data Analysis and Presentation

Preliminary cleaning and formatting is the first step in the data preparation.
For the analysis of data, SPSS software was used. Frequency, percentages were used
to describe the nature of data. Mean, standard deviation and variance were also used
to analyze the data descriptively. After analysis of each question, the figures have
been shown in different table as per the requirement of the subject matter.

29