Chapter 01

Introduction Chapter
1.0. Introduction

An internship is designed to bridge the gap between the theoretical knowledge and real
application. Now we are living in the age of competition at anything in any places. From that
tendency recently Education is also in the age of competition. In respect to that, internship is
mandatory for connecting theoretical knowledge with practical knowledge which is earned by
working practically with an organization. It is the important part of BBA program. The total
internship program is three-month duration. To do so I decided to complete my internship in
Jiban Bima Corporation, Burhanuddin Branch,Bhola. During this period, I have worked closely
with the employee of Jiban Bima Corporation. The Internship report has been prepared based
on the information of this organization which has been gathered during the internship period.
The report titled "Employee satisfaction on compensation system of Jiban Bima Corporation."

Internship plays a pivotal role for any professional degree. The primary goal of internship is to
provide an on the job exposure to the student and an opportunity to translate the theoretical
conceptions in real life situation. The study will help formulate suitable policies taking into
consideration different ideas, suggestions and feelings of the employee. Jiban Bima Corporation
is a state owned insurance company in Bangladesh. It has a vital contribution towards security
and investment in economy. Jiban bima corporation has been participating in all sectors from
industrial sector to corporate sector. In this report, I have tried to represent all the activities I
observed related to employee satisfaction on compensation system of Jiban Bima corporation.

1.1. Rationale of the Study

Today, the world economy is going faster. The prices or expense of essential thing such as food,
clothing, education and medical are increasing day by day. Besides, the prices of luxurious
things are also increasing. At the same time, the expenses on service sector are doing the same.
For these, the expectations of the employees have also increased than ever before to meet
these increased expenses. Realizing the present condition, Government should try to increase
their employee’s satisfaction. The most serious difficulty facing the financial sector is the high
level of interest rate and inflation rate. So it is the duty of the top management of JBC or
government to work with the situation.

1.2. Statement of the Research

For every organization employee is the most important element. To run a company in a
progressive way employee satisfaction is a must. And the most vital part of their satisfaction is
the compensation system of their company. This research is to find whether the employees of
Jiban Bima Corporation are satisfy with the compensation system what they are offering by the
Government or not. This research will find out the satisfactory level of the employees of JBC.

1.3. Scope of the Study

Today’s education is not just restricted to books and classrooms only. Education is the tool to
understand the real world and application of knowledge. The perfect coordination between
theory and practice is of utmost importance in the context of the modern business world in
order to resolve the contrast between these two areas. Therefore this is an opportunity to have
a practical experience of solving a research on a very vital sector of Human Resource which is
compensation and employee satisfaction.

1.4. Objectives of the report

a) Broad objective:

The broad objective of the report is to evaluate how much satisfied or dissatisfied the
employees are with the compensation system provided by the government.

b) Specific Objective:

The specific objectives of the report are to present an overview of JBC along with the
followings:-

▪ Represent which variable satisfies employees the most.

▪ To find the various factors leading to employee satisfaction.

▪ To recommend some solution to improve the condition.

1.5. Research Question

Are Employees of the Jiban Bima Corporation satisfied with their compensation system or not?
 Chapter 02
Literature Review
2.0. Literature Review
Employee satisfaction has been defined in several different ways and a definitive designation
for the term is unlikely to materialize. In organization, employees are the key resources through
which all the other objectives are achieved. Employees will demonstrate pleasurable positive
attitudes when they are satisfied with their job1. Thus, high job satisfaction will increase the
productivity of an organization, in turn increasing the overall organizational performance.
Compensation plays an important role in determining an employee's level of job satisfaction.

Compensation is a useful instrument in the hand of the management to contribute to the

organizational effectiveness and can impact positively on the behavior and productivity of
employees. However, compensation determines the attraction and retention of employees to
attain organization objectives. To attract, retain and be profitable, organizations need
innovative reward systems that satisfy employees. Numerous researchers forecast that talent
shortages are going to increase well into the next decade, which will limit the ability of
organization’s to expand and will jeopardize their chances of survival as global competition
becomes more intense.

Compensation plays a vital role in attracting, motivating and retaining talented employees.
According to Ibrahim and Boerhaneoddin8, compensation encourages effective employees
toremain in employment for longer periods of time. Additionally, Ibrahim and Boerhaneoddin
suggested that generous rewards retain employees and ultimately lead to job satisfaction,
commitment and loyalty.

2.1. Satisfaction
Satisfaction is the act of fulfilling a need, desire, or appetite, or the feeling gained from such
fulfillment. Satisfaction means you’ve had enough — in a good way. When a product says
"Satisfaction guaranteed" it means you’ll like it or they'll give you your money back. A good
meal provides satisfaction of your hunger. When you graduate from school or get a good job,
you have a feeling of satisfaction. This term once meant an act of atonement assigned by a
priest to make up for a sin. When something is explained well, it was explained to your
satisfaction.

2.2. Employee Satisfaction

Employee satisfaction, also known as job satisfaction, is the extent to which an individual is
happy with their job and the role it plays in their life.

The extent to which employers prioritise employee satisfaction depends on the employer and
the industry – the Hawthorne studies and the work of George Elton Mayo in the 1930s put the
link between employer satisfaction and productivity on the radar.

Satisfaction researchers tend to differentiate between affective satisfaction and cognitive job
satisfaction – affective satisfaction is the sum total of pleasurable emotions and feelings
associated with the job and its place in the individual’s life, whereas cognitive satisfaction refers
to rational satisfaction over particular facets of the job e.g. pay and day-to-day responsibilities.

There are a wide variety of theories surrounding employee satisfaction. Dispositional theory,
for example, argues that individuals are predisposed to a certain level of job satisfaction
regardless of the job or industry. Range of Affect Theory, put forward by Edwin A. Locke in the
1970s, is a theory based on expectations – satisfaction depends on the gap between what an
employee expects from a job and what they actually get.

Job satisfaction or employee satisfaction is a measure of workers' contentedness with their job,
whether they like the job or individual aspects or facets of jobs, such as nature of work or
supervision.[Job satisfaction can be measured in cognitive (evaluative), affective (or emotional),
and behavioral components.Researchers have also noted that job satisfaction measures vary in
the extent to which they measure feelings about the job (affective job satisfaction). or
cognitions about the job (cognitive job satisfaction).

Hoppock offered one of the earliest definitions of job satisfaction when he described the
construct as being any number of psychological, physiological, and environmental
circumstances which leads a person to express satisfaction with their job. Smith et al. (1969)
defined job satisfaction as the feeling an individual has about his or her job. Locke (1969)
suggested that job satisfaction was a positive or pleasurable reaction resulting from the
appraisal of one’s job, job achievement, or job experiences.

Vroom (1982) defined job satisfaction as workers’ emotional orientation toward their current
job roles. Similarly, Schultz (1982) stated that job satisfaction is essentially the psychological
disposition of people toward their work.

Finally, Lofquist and Davis (1991), defined job satisfaction as “an individual’s positive affective
reaction of the target environment as a result of the individual’s appraisal of the extent to
which his or her needs are fulfilled by the environment”.
2.2.1. Importance Of Employee Satisfaction
Employee satisfaction is a frequently studied subject in work and organizational literature. This
is mainly due to the fact that many experts believe that job satisfaction trends can affect labour
market behaviour and influence work productivity, work effort, employee absenteeism and
staff turnover. Moreover, job satisfaction is considered a strong predictor of overall individual
well-being, as well as a good predictor of intentions or decisions of employees to leave a job.

Job satisfaction is also important in everyday life. Organizations have significant effects on the
people who work for them and some of those effects are reflected in how people feel about
their work. This makes job satisfaction an issue of substantial importance for both employers
and employees.

As many studies suggest, employers benefit from satisfied employees as they are more likely to
profit from lower staff turnover and higher productivity if their employees experience a high
level of job satisfaction. However, employees should also ‘be happy in their work, given the
amount of time they have to devote to it throughout their working lives’.

2.2.2. Variables of Employee Satisfaction

Several studies have been carried out in the past of determine the correlates of high and low
job satisfaction. These studies have related job satisfaction to two types of variables-
organizational and personal.

Findings with regard to some of these variables are given below:

I. Organizational Variables:

(1) Occupational Level:

The higher the level of the job, the greater the satisfaction of the individual. This is because
higher level jobs carry greater prestige and self-control. This relationship between occupational
level and job satisfaction stems from social reference group theory in that our society values
some jobs more than others.

Hence, people in valued jobs will like them more than those who are in non-valued jobs. The
relationship may also stem from the need fulfilment theory. People in higher level jobs find
most of their needs satisfied than when they are in lower level ones.
(2) Job Content:

Greater the variation in job content and the less the repetitiveness with which the tasks must
be performed, the greater the satisfaction of the individuals involved. Since job content in
terms of variety and nature of tasks called for is a function of occupational level, the theoretical
arguments given above apply here also.

(3) Considerate Leadership:

People like to be treated with consideration. Hence considerate leadership results in higher job
satisfaction than inconsiderate leadership.

(4) Pay and Promotional Opportunities:

All other things being equal these two variables are positively related to job satisfaction.

(5) Interaction in the Work Group:

Here the question is- when is interaction in the work group a source of job satisfaction and
when it is not?

Interaction is most satisfying when:

(i) It results in the cognition that other person’s attitudes are similar to one’s own, since this
permits the ready calculability of the other’s behaviour and constitutes a validation of one’s
self;

(ii) It results in being accepted by others; and

(iii) It facilitates the achievement of goals.

II. Personal Variables:

For some people, it appears most jobs will be dissatisfying, irrespective of the organizational
conditions involved, whereas for others, most jobs will be satisfying. Personal variables like age,
educational level, sex, etc., are responsible for this difference.

(1) Age:

Most of the evidence on the relation between age and job satisfaction, holding such factors as
occupational level constant, seems to indicate that there is generally a positive relationship
between the two variables up to the preretirement years and then there is a sharp decrease in
satisfaction.

An individual aspires for better and more prestigious jobs in later years of his life. Finding his
channels for advancement blocked his satisfaction declines.

(2) Educational Level:

With occupational level held constant there is a negative relationship between the educational
level and job satisfaction. The higher the education, the higher the reference group which the
individual looks to for guidance to evaluate his job rewards.

(3) Sex:

There is as yet no consistent evidence as to whether women are more satisfied with their jobs
than men, holding such factors as job and occupational level constant. One might predict this to
be the case, considering the generally lower occupational aspiration of women.

Many other correlates of job satisfaction have been found by several other studies. Thus,
Stagner, Flebbe and Wood in their study of 715 male unionised rail-road workers done in 1952
have found general working conditions, union management relations, general quality of
supervision and grievance handling procedure as correlates of job satisfaction.

2.2.3. Ways of increasing Employee Satisfaction

In case the employers want to create job satisfaction for their employees, they should keep the
following things into consideration:

1. Grievance-Handling Procedure:

It is desirable that the complaints of the workers are heard patiently and the problems solved
as far as possible. Factories in which the workers’ demands/ grievances are not handled
properly suffer because the workers lose confidence in the management and become
frustrated.

2. Satisfactory Future:

Every worker is definitely concerned about his/her future prospects. If the factory rules clearly
lay down the conditions for promotion and advancement, and if the worker gets the expected
promotion and improvement in pay scales at the right time, then he/ she feels more satisfied
with his/her job and becomes confident of his/her future.
If on the other hand, the worker feels that even good work will not be rewarded, then he/she
becomes frustrated and slack in his/her work.

3. Testing the Worker’s Ability and Progress:

Every worker, whether in a factory or in an office, desires that he/she should be paid according
to his/her ability. If he/she has undergone some new training or has increased his/her ability to
work in some way, then he/she should be compensated for his/her better ability through a rise
in salary.

Organizations in which the management keeps an eye on the ability and progress of its workers
normally provide a high degree of job satisfaction to their workers. It is necessary that the
management should give the workers some opportunity of progressing higher and higher.

4. Respect for Creative Suggestions:

Generally speaking, a worker working under a particular set of conditions is best qualified to say
how and where improvements can be made. If workers are encouraged to suggest ways and
means of improving productivity and the conditions of work, they often come with very
valuable ideas.

This helps in increasing job satisfaction because when the worker is praised for giving a good
practical idea, he/she tends to pay more attention to his/her work in order to win more praise.
If suggestions are neglected, then the worker feels dissatisfied and over a period of time his/her
creativity is killed.

5. Cordial Analysis or Evaluation of Work Performance:

In every organisation, the manager or the supervisor has to offer critical comments of the work
performed by the worker because he/ she must point out the worker’s mistakes and try to
eliminate them. If this criticism is offered in a cordial and friendly way, more as a suggestion
than criticism, then his/her job satisfaction is also thereby maintained. But if the worker is
humiliated or bitterly criticised for his/her mistakes, then he/she loses his/her peace of mind.

6. Increase in Wages:

Rules governing increases in salary should be clear and explicit and should be acted upon
impartially and regularly. If the worker gets the anticipated increase in salary at the right time,
then he/she feels satisfied with his/her job. If this does not happen, then dissatisfaction is the
result. Increase in salary is, in fact, the most important factor in job satisfaction.
7. Praise for Good Performance:

If workers are not praised for exceptional performance in their work, then they lose interest in
it and as a result, the organisation suffers. Generally, the worker prefers to work well and
remain occupied than merely to pass the time allotted to him/her.

8. Promotion According to Ability:

In every organization, some people get retired after completion of their service period, leaving
scope for promotion for the junior employees. If promotion is based upon the ability of the
worker, then the worker’s mental satisfaction is maintained. If, on the other hand, promotion
depends upon other factors such as casteism and personal favor, then the workers interest in
his/her work declines.

9. Proper Quantum of Work:

If job satisfaction is to be maintained, it is essential that the expected quantity of work does not
exceed the individual’s ability to complete it. If he/she has to work more than he/she
comfortably can for a long time, then he/she is bound to become disgusted, depressed and
tired.

10. Equal Wages for Equal Work:

Labour unions in almost every industry are demanding that there should be equal pay for equal
work. In any factory or office, a worker must be paid as much as other workers are being paid in
his/her or other organizations for similar work. The worker feels satisfied if this equality is
maintained. If it is not, then the worker loses his/her satisfaction.

11. Freedom to Seek Help in Solving Problems:

Very often the worker is faced by problems in his/her work that he/she cannot solve alone. In
such a case, he/she should be free to seek help and guidance from other workers or his/her
superiors. If it is so, then the worker gets more job satisfaction.

12. Absence of Unnecessary Intervention and Criticism:

No individual wants to sacrifice his/ her self-respect. If the worker is unnecessarily shown
disrespect or abused, then he/she quickly becomes dissatisfied. Hence, he/she should be
protected from useless interruptions and criticism.

13. Satisfactory Hours of Work:

The hours of work in any factory or office should be convenient and so arranged as to offer the
least possible inconvenience to the largest number of employees. If this is not looked into, the
workers become dissatisfied.

14. Availability of Leaves and Rest:

In every industrial organisation, the workers should be given the proper amount of rest and
holidays on festivals and other occasions of social celebrations. Nowadays, workers are allowed
to avail themselves of around 10 casual leaves and 30 earned leaves every year in addition to
the weekly holiday.

It is evident from this description of factors influencing job satisfaction that it necessitates the
creation of certain conditions of work. Different factors may be important in different
situations. An increase in wages is a common factor which is important everywhere.

2.2.4. Employee Satisfaction – Measurement

There are many methods for measuring job satisfaction. By far, the most common method for
collecting data regarding job satisfaction is the Likert scale (named after Rensis Likert). Other
less common methods of for gauging job satisfaction include- Yes/No questions, True/False
questions, point systems, checklists and forced choice answers. This data is typically collected
using an Enterprise Feedback Management (EFM) system.

The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specific
questionnaire of job satisfaction that has been widely used. It measures one’s satisfaction in
five facets- pay, promotions and promotion opportunities, co-workers, supervision and the
work itself. The scale is simple, participants answer either yes, no, or cannot decide (indicated
by’?’) in response to whether given statements accurately describe one’s job.

The Job in General Index is an overall measurement of job satisfaction. It is an improvement to

the Job Descriptive Index because the JDI focuses too much on individual facets and not enough
on work satisfaction in general.

Other job satisfaction questionnaires include- the Minnesota Satisfaction Questionnaire (MSQ),
the Job Satisfaction Survey (JSS) and the Faces Scale. The MSQ measures job satisfaction in 20
facets and has a long form with 100 questions (five items from each facet) and a short form
with 20 questions (one item from each facet).
The JSS is a 36 item questionnaire that measures nine facets of job satisfaction. Finally, the
Faces Scale of job satisfaction, one of the first scales used widely, measured overall job
satisfaction with just one item which participants respond to by choosing a face.

2.3. Compensation
Pay provided by an employer to its employees for services rendered (i.e., time, effort and skill)
is called compensation. This includes both fixed and variable pay tied to performance levels.
Employee compensation is one of the major functions of human resource management.
Compensation is important for both employers and employees regarding attracting, retaining
and motivating employees. Compensation as important for employees since it is one of the
main reasons people work. Compensation includes claims on goods and services paid to an
employee in the form of money or a form that is quickly and easily exchangeable into money.

Monetary rewards play major role in determining job satisfaction. The growing needs of people
with high living costs force workers seeking higher income that can guarantee their future and
life satisfaction. Moreover, if individuals believe they are not compensated well therefore a
state of emotional dissatisfaction will be developed. These emotional discrepancies will grow
and accumulate over time thus make employees unhappy and unsatisfied working for the
organization.

2.3.1. Types of Compensation

There are various form of compensation and nearly all these forms of compensation can be
categorized into seven types. These are:

1. Wages & Salary

2. Incentive Plan

3. Addition Privileges

4. Intrinsic and Extrinsic Rewards

5. Employee Benefit Programs

6. Financial and Non- Financial Rewards

7. Performance based & Membership Based Rewards

 Chapter 03

Organizational Overview

3.1. Historical Background

Jiban Bima Corporation (JBC) established on 14 May 1973 under the Insurance Corporation Act
1973 with an authorized capital of Tk 200 million divided into 2 million ordinary shares of Tk
100 each. The paid up capital of the corporation is Tk 50 million fully subscribed by the
government. The corporation is engaged in life insurance business under the provisions of the
Insurance Act 1938, Insurance Rules 1958, Insurance Corporation's Rules 1977, and related
other laws enforceable in Bangladesh.

Insurance companies that had business in East Pakistan was 75, of which 10 were locally
incorporated ones. Following the independence of Bangladesh in 1971, both life and general
insurance business in the country was nationalised under the Bangladesh Insurance
(Nationalisation) Order 1972 except foreign insurance companies. Five corporations were
established to absorb, own and control the businesses of the 75 existing insurance companies and
these new corporations were Bangladesh Jatiya Bima Corporation, Karnafuli Bima Corporation,
Tista Bima Corporation, Surma Jiban Bima Corporation and Rupsa Jiban Bima

Corporation. These four corporations were in business from 1 January 1973 to 14 May 1973. On
14 May 1973, the Bangladesh government dissolved the Jatiya Bima Corporation and integrated
the general and life insurance companies into two corporations, and accordingly all the
undertakings of Karnafuli and Teesta were vested in the Sadharan (General) Bima Corporation
with Golam Mowla as the first managing director. Surma and Rupsa Jiban Bima Corporations
were vested in the Bangladesh Jiban Bima Corporation (Bangladesh Life Insurance Corporation)
(BJBC) with Khuda Buksh as the first managing director.

In 1998, the corporation earned gross premiums of Tk 1,402.8 million, which comprised firstyear
premiums (Tk 401.2 million), renewal premiums (Tk 913.0 million), and group insurance
premiums (Tk 88.6 million). It paid Tk 493.7 million to settle life insurance claims under various
schemes. Business management expenses of the corporation stood at Tk 629.2 million and it
earned operating profits of Tk 279.9 million. The net incomes from its investments and other
sources were Tk 189.2 million.

At the end of the year 1998, the corporation had 315,735 individual life policies in force with a
sum assured of Tk 23,742 million. Of these policies 310,555 with an amount assured of Tk
23,727.4 million were underwritten by the corporation itself and the remaining, with a sum
assured of Tk 14.6 million, were underwritten by the company's old units. Conversely, a total
number of 43,641 individual policies with a sum assured of Tk 3,047.0 million were lapsed
during the year.

Premium income of the corporation was Tk 2,447 million in 2007 marking an increase 63% over
premium income in 2001. Following is an account of the gross premium income structure,
proportion among expenses, operating profit and net income, types of policies sold and the sums
assured by types, and the management structure of the corporation presented for the year 1998.
The figures are representative enough since although the absolute figures have changed over
time, the relative proportions remained the same.

Until 1985, the JBC was the only institution to handle life insurance business in Bangladesh.
Through the Insurance (Amendment) Ordinance 1984 and Insurance Corporations (Amendment)
Ordinance 1984, the government allowed the private sector to establish insurance companies. Up
to December 2000, at least 17 private sector insurance companies came into being and made the
life insurance business competitive. In 2015 the number of private life insurance companies in
Bangladesh has reached at 30. The JBC offers 15 different types of life insurance schemes.
These are whole life assurance, endowment assurance, child protection policy, children
endowment, anticipated endowment assurance, pension scheme policy, single payment policy,
mortgage protection policy, group term insurance policy, group endowment policy, group
variable endowment policy, group pension policy, grameen bima policy, joint life endowment
policy, and progressive premium policy.

3.2. Objectives

1. Provide life insurance benefit to the people at a competitive cost.

2. Mobilize savings through various schemes and create funds for economic development of the
country.

3. Offer products for maximum returns at minimum cost.

4. Create awareness among the people to develop savings habits.

5. Develop suitable schemes to meet the need of all classes of people.

3.3. Vision and Mission

Vision:

“A business organization that covers risks and offers profits to make life a matter.”

Mission:

“To help people improve their standard of livings with a saving content and create funds for
nation’s economic development.”

3.4. Nature of Business

JBC since its inception, is working among the people of Bangladesh with two basic objectives:-
Firstly to cover he risks and raise saving habits among the people and secondly, create funds for
the country’s economic development through innovative life insurance schemes. The following
functions are performed by JBC:-

▪ Engage with all kinds of life insurance and re-insurance business.

▪ To acquire, hold and dispose of any property for the purpose of its business.

▪ To transfer the whole or any part of its insurance business carried on outside Bangladesh to
any other person

▪ To do all such things as may be incidental or conductive to the proper exercise of any of the
powers of the Corporation.

The following services are provided by JBC:-

▪ Online service

▪ Online Policy Status

▪ Online Premium Payment

▪ Bonus Information

▪ Tax Benefits/ Rebates

▪ Customer Service Section

▪ Information Officers

3.5. Insurance Schemes

The JBC currently offers the following types of life insurance schemes:

▪ Anticipated endowment Insurance With Profit Plan-05

▪ Anticipated endowment Insurance Without Profit Plan-05

▪ Child Endowment Insurance Without Profit Plan-45

▪ Child Endowment Insurance With Profit Plan-9

▪ Double Protection Insurance With Profit Plan-10

▪ Endowment Assurance With Profit Plan-03

▪ Endowment Assurance Without Profit Plan-23

▪ Grameen Jiban Bima With Profit Plan-91

▪ Granted Bonus Endowment Insurance Plan-48

▪ Group Endowment Assurance

▪ Group Team Insurance

▪ Joint Life Endowment Insurance With Profit Plan-08

▪ Marriage Endowment Policy Plan-07

▪ Money Back Term Insurance Policy Plan-05 (without profit)

▪ Multiple Payment Policy With Profit Plan-06

▪ Pension Policy Plan-12

▪ Progressive Premium Policy With Profit Plan-04

▪ Single Premium with Profit Plan -17

▪ Term Insurance Without Profit Plan-51

▪ Whole Life Insurance With Profit Plan -01

▪ Whole Life Insurance Without Profit Plan -21

▪ Overseas Assurance Plan With Profit

▪ lMonthly Saving Scheme With Profit

▪ Monthly Saving Scheme Without Profit

▪ Triple Protection Policy

▪ Mortgage Protection Policy Without Profit

3.6. Business Performances

1973–1974

In 1973 and 1974, the JBC sold 41,812 and 36,000 life insurance policies with a total assured
sum of Tk 397.7 and Tk. 400 million respectively. In 1973 and 1974 the JBC earned gross
premiums of Tk. 58 million and Tk. 67.6 million which comprised first year premiums
(including group) Tk. 22.7 million and Tk. 29.6 million, renewal premiums Tk. 35.3 million and
Tk. 37 million respectively. The JBC inherited an outstanding claim of Tk.50 million at the time
of its inception. It has settled all the claims by 31 October 1974.

1998–2011

In 1998, the JBC earned gross premiums of Tk. 1,402.8 million, which comprised first-year
premiums (Tk. 401.2 million), renewal premiums (Tk. 913.0 million), and group insurance
premiums (Tk. 88.6 million). It paid Tk. 493.7 million to settle life insurance claims under
various schemes. Premium income of the corporation was Tk. 2,447 million in 2007 marking an
increase 63% over premium income in 2001The JBC has the largest network all over the country
with 7 regional, 9 zonal, 68 sales and 343 branch offices.

2011–2013

The life fund of Jiban Bima Corporation has increased to TK. 14988.3 million (14.99 billion) in
the year 2013. In the year 2012 the figure was near about 14 billion despite political unrest
throughout the year. Chapter 04
2014–2015 Research Methodology
In 2015 it is expected to reach 15.50 billion because the initiatives have been taken to increase
the life insurance penetration rate and new life insurers are expected to introduce new customer
focused products through improved customer services.
4.0. Research Methodology

The study is performed based on the information extracted from different sources collected by
using a specific methodology to fulfill the objectives of this report. Therefore Research
methodology includes Research design, Data source and collection procedures, sampling
methods, Sample unit, sample size and data analysis.

4.1. Research Design

It is an exploratory research to identify the variables that effect the employee satisfaction of
JBC. To identify the variables of employee satisfaction, factor analysis has been done and based
on outcomes of the factor analysis, the findings and analysis part has been done. The study
involved a questionnaire survey, conducted on the 50 employees of JBC. The information
gathered from the employees at their respective workplace.
4.2. Data Source and Data Collection procedures

For smooth and accurate study everyone has to follow some rules and regulations. The study
inputs were collected from two sources:

4.2.1. Primary sources:

A questionnaire was used to acquire primary data form the employees of various departments.
The questionnaire consists of two parts. The first part of the questionnaire stated with general
information of the respondents and the last part is comprised of the key measuring variables on a
Likert scale ranging from 5 (strongly satisfied) to 1 (strongly dissatisfied) of job satisfaction.

4.2.2. Secondary sources:

▪ Annual report of JBC

▪ Report of Bangladesh Insurance Academy

▪ Report of the Insurance Development and Regulatory Authority.

▪ Insurance Journals

▪ Extensive literature searches by these documents of publication

▪ Websites of the respective insurance companies.

4.3. Sampling Method

Hare the purpose random sampling method was used to gather data as of the sample of this
research. The convenience sample for this study is measured by the employees of JBC who are
working within the respective organizations.

4.4. Sample Units

This study is conducted on the employees of JBC who are working at the Head office. There are
8 divisions of JBC and in every division; at least 12 employees are working. So at Head Office,
at least 96 employees are regularly working in their concerned division. These 96 employees are
sampling units for preparing my repost on employee satisfaction on compensation system. The
total number of respondents is 50.
Chapter 05
Analysis
 Basi Medical Bangla House Convey Recreat Educati Tiffin othe
c Allowa New rent ance ion on allowan s
sala nces Year allowan allowan allowan ces allow
ry Allowa ce ce ce ance
nce
Mean 4.12 4.02 4.26 3.46 2.96 3.24 4.22 3.80 4.06

Std. .558 .654 .664 1.034 .968 .981 .815 .782 .793
Deviati
on
Table 1- Descriptive Statistics

The table 1 also shows the mean, standard deviation of the variables. A mean score of 3 explains
an average response. Any average score greater than 4 can be considered satisfactory and less
than 3 can be considered unsatisfactory for this study. An average score between 3 and 4 is
relatively satisfactory but needs improvement. In this case, among these nine variables Bangla
New Year allowance has the highest mean score of 4.26 which means that customer are
moderately satisfied with the allowances that they get in the Bangla New Year. Then comes the
educational allowances which has the second highest average score of 4.22.

Besides that, basic salary, others allowances, medical allowances, tiffin allowances,
house rent, recreation allowances and conveyance allowances has the mean score of
4.12.4.06,4.02,3.80,3.46,3.24,2.96. So, we can acknowledge that the employees are less satisfied
with the conveyance allowances that they are offered as the mean value is 2.96, lowest in those
nine variables.

Basic Salary:
 Descriptive Statistics:

Basic salary

Frequency Percent Valid Cumulative

Percent Percent

Neutral 5 10.0 10.0 10.0

Agree 34 68.0 68.0 78.0

Valid Strongly 11 22.0 22.0 100.0
Agree

Total 50 100.0 100.0

Graphical presentation:

Interpretation:

90% of the employees believe that they are satisfied with the provided basic salary and 22% of
them strongly satisfied with the basic salary.
 Medical allowances:

Descriptive Statistics:

Medical allowances

Frequency Percent Valid Cumulative

Percent Percent

Neutral 10 20.0 20.0 20.0

Agree 29 58.0 58.0 78.0

Valid Strongly 11 22.0 22.0 100.0
Agree

Total 50 100.0 100.0

Graphical presentation:

Interpretation:

58% of the employees are satisfied with the medical allowances and 22% of them strongly
satisfied with the basic salary. 20% of the employees stayed neutral in answering the question.
Bangla New Year allowance:

Descriptive Statistics:

bangla new year allowance

Frequency Percent Valid Cumulative

Percent Percent

Neutral 6 12.0 12.0 12.0

Agree 25 50.0 50.0 62.0

Valid Strongly 19 38.0 38.0 100.0
Agree

Total 50 100.0 100.0

Graphical presentation:
Interpretation:

50% of the employees believe that they are satisfied with the allowances that they get in the
bangla new year and 38% of the employees strongly satisfied.

House rent allowance:

 Descriptive Statistics:

house rent

Frequency Percent Valid Cumulative

Percent Percent

Strongly 1 2.0 2.0 2.0

Disagree

Disagree 10 20.0 20.0 22.0

Valid Neutral 11 22.0 22.0 44.0

Agree 21 42.0 42.0 86.0

Strongly Agree 7 14.0 14.0 100.0

Total 50 100.0 100.0

Graphical presentation:

Interpretation

When it comes to house rent allowances,56% of the employees are satisfied,20% of the has
disagreed with the fact and marked dissatisfied with the house rent allowances.
.

Conveyance allowances:

Descriptive allowances:

Conveyance allowance

Frequency Percent Valid Cumulative

Percent Percent

Strongly 4 8.0 8.0 8.0

Disagree

Disagree 12 24.0 24.0 32.0

Valid
Neutral 16 32.0 32.0 64.0

Agree 18 36.0 36.0 100.0

Total 50 100.0 100.0

Graphical Presentation:

Interpretation:

36% of the employees are satisfied with the conveyance allowances, 32% of the employees
stayed neutral and 24% dissatisfied with conveyance allowances.
Recreation allowances:

Descriptive Statistics:

Recreation allowance

Frequency Percent Valid Cumulative

Percent Percent

Strongly 2 4.0 4.0 4.0

Disagree

Disagree 10 20.0 20.0 24.0

Valid Neutral 15 30.0 30.0 54.0

Agree 20 40.0 40.0 94.0

Strongly Agree 3 6.0 6.0 100.0

Total 50 100.0 100.0

Graphical Presentation:
Interpretation:

40% of the employees satisfied with the recreation allowances but 20% of the employees are
dissatisfied with the recreation allowances.

Education allowances:

Descriptive statistics:
Education_allowance

Frequency Percent Valid Cumulative

Percent Percent

Strongly 1 2.0 2.0 2.0

Disagree

Disagree 1 2.0 2.0 4.0

Valid Neutral 3 6.0 6.0 10.0

Agree 26 52.0 52.0 62.0

Strongly Agree 19 38.0 38.0 100.0

Total 50 100.0 100.0

Graphical presentation:

Interpretation:

4% of the employees are dissatisfied with the education allowances and 90% of the employees
are satisfied.
Tiffin allowance:

Descriptive Statistics:

Tiffin_allowances

Frequency Percent Valid Cumulative

Percent Percent

Strongly 1 2.0 2.0 2.0

Disagree

Disagree 1 2.0 2.0 4.0

Valid Neutral 12 24.0 24.0 28.0

Agree 29 58.0 58.0 86.0

Strongly Agree 7 14.0 14.0 100.0

Total 50 100.0 100.0

Graphical presentation:
Interpretation:

58% of the employees satisfied with the tiffin allowances, 14% of the employees are dissatisfied
with the recreation allowances. 4% of the employees are dissatisfied.

Others allowances:

Descriptive Statistics:
others_allowances

Frequency Percent Valid Cumulative

Percent Percent

Strongly 1 2.0 2.0 2.0

Disagree

Neutral 8 16.0 16.0 18.0

Valid
Agree 27 54.0 54.0 72.0

Strongly Agree 14 28.0 28.0 100.0

Total 50 100.0 100.0

Graphical presentation:

Interpretation:

54% and 28% of the employees marked agree and strongly agree when they were asked if they
were satisfied with the others allowances or not. 16% of the employees hadn’t given any answer
but 2% are dissatisfied with the others allowances.
Chapter 06
Findings
6.0. Findings

Salary and various allowance structure given by government to the employees of JBC cause
satisfaction or dissatisfaction to them. The findings from the analysis are summed up below:-

▪ The overall satisfaction level of the employees is moderately average.

▪ Moderately satisfied level is higher and strongly dissatisfied level is lower here.

▪ Strongly satisfied level is the second highest satisfaction level and moderate level is the second
highest dissatisfaction level.

▪ Employees are mainly dissatisfied with the conveyance allowances they gate.

▪ Employees are highly satisfied with Bangla New Year allowance.

▪ Employees are also satisfied with the basic salary, educational allowances and medical
allowances as the average value was more than 4.
 Chapter 07
Conclusion & Recommendation
7.1. Conclusion
Day by day human resource is considering the most important resource of an organization to
achieve competitive advantage in the business world. It is one of the most challenging functions
to the organization to acquire the right workforce and then retain that force. The result from this
study examined and determined the relationship between compensation and employee’s
satisfaction. Based on a result from the analysis it showed that there is a strong positive
relationship between compensation and employees’ satisfaction of JBC. Everybody will confess
the truth that a set of dissatisfied employees can’t work perfectly for the organization. By
collecting primary and secondary data and after analyzing those it is realized that compensation
and employee satisfaction helps the organization to utilize its human resource in a more
productive and efficient manner. Employee satisfaction results help the organization to achieve
its goal and objective I time. On the base of descriptive statistics can be said that practice of
compensation system is slightly vary by age, gender, educational ability and experiences of
respondents. Though, they are not totally satisfied with their basic salary and other benefits, they
are overall satisfied with their job, that’s their satisfaction level is above average.

7.2. Recomendations
There are some recommendations for improvement of the level of satisfaction of employees in
JBC. These are stated as follows:

• The study discovered the major areas of satisfaction in various allowances such as recreational,
Bangla New Year and tiffin allowances. The major areas of dissatisfaction is with basic salary so
the authority should think positively and take care of it so that the dissatisfaction level can be
reduced at least up to an acceptable level

• Salary in the primary and most important factor for satisfaction. It should be high enough to
maintain the living standard of employees. The authority should consider the salary structure and
benefits should be reasonable and comparable with that of their insurance companies or other
similar institution

• It should be considered the sense that policy should be applied uniformly to all employees
irrespective of the background of the persons. It should be fair and impartial. In other words it
should not give room for nepotism, favoritism etc.

• It is seen that educational, house rent, medical facilities, overtime and washing allowances
contribute more dissatisfaction of employees. So the authority should

think over the matter deeply and take decision that causes satisfaction.

• The JBC has to specify clearly its policy regarding compensation based on its corporate policy

• The payment of salary and other benefits should be made in time so that the employees can
utilize it in day to day life.

References

• Rahim, Muhammad (2011). Khuda Buksh the Pioneer of Life Insurance in Bangladesh:
An account of his life and work. Dhaka, Bangladesh: The University Press Limited. ISBN 978
984 506 027 1.

• Ahmed, Shahid Uddin (1977). Insurance Business in Bangladesh. University of Dhaka,

Bangladesh: Bureau of Business Research.

• Rahman, Roushanara; H M Mosharraf; M. Ahmed; S. Rahim; T. Bukth; S. Khan; B.

Rahim (eds) (2010). Memoirs of a Life Insurance Icon: Khuda Buksh. USA: Xlibris

Corporation. ISBN 978-1-4500-5168-2.

• Ahmed Shahid Uddin (1977). Insurance business in Bangladesh. University of Dhaka,

Bangladesh; Burau of Business Research

• Ahmed, S. Ali Rehman, ,K. khan, M.A., & Wasimullah, 2010. Insecure job and low pay

leads to job dissatisfaction, inter disciplinary journal of contemporary research in business, vol,
vol-1, no.11.

• Ashwathapa K., Human Resource Management (third edition)

• CA; Sage New york; John Willey and Sons,

• Jibon Bima Corporation Annual Rapport 2012, 2013, 2014, 2015.

• Kabir, M.M., 2011, Factors affecting employee job satisfaction of Pharmaceuticals sector,
Australia

• Kothari C.R., Research Methodology, New Delhi; New

• Moyes, G.D., & Shao, L.P., Newsome.(2008). Comparative analysis of employee job
satisfaction in the accounting.

• www.jbc.gov.bd
 Appendix

Appendix 1:l
Factors Affecting Satisfaction Variables
Basic Salary V1
Medical Facility V2
Bangla New year allowance V3
House rent V4
Conveyance Allowance V5

Recreation Allowance V6
Educational Allowance V7
Tiffin Allowance V8
Others Allowance V9

Appendix 2:

Questionnaire
Dear Respondent,

For my research purpose, I need to collect data regarding “Employee Satisfaction on

Compensation System of Jiban Bima Corporation”. It will be highly appreciable if you provide
me your valuable opinion regarding this issue. I also assure that this data will be used for only
research purpose. The collected information from you will be reserved with strict confidentiality.
Thanks to you in advance.

Employee Satisfaction Form

Name: Employee code:

Department: Designation:

Grade: Salary Scale:

Employee Satisfaction on compensation system of JBC can be evaluated using the following
questionnaire:

Q1. Which of the following factors motivates you most?

a. Basic Salary

b. Promotion

c. Motivational talk

d. Recognition

Q2. Does the organization provide satisfactory salary according to your work?

a. Yes

b. No
Q3. How satisfied are you with the salary scale provided by the Govt.?

a. Strongly Satisfied

b. Moderately Satisfied

c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied

Q4. How satisfied are you with the medical facility provided by the Govt.?

a. Strongly Satisfied

b. Moderately Satisfied

c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied

Q5. How satisfied are you with the Bangla New Year allowance provided by the Govt.?

a. Strongly Satisfied

b. Moderately Satisfied

c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied

Q6. How satisfied are you with the house rent provided by the Govt.?

a. Strongly Satisfied

b. Moderately Satisfied
c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied

Q7. How satisfied are you with the recreational allowance provided by the Govt.?

a. Strongly Satisfied

b. Moderately Satisfied

c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied

Q8. How satisfied are you with the conveyance allowance provided by the Govt.?

a. Strongly Satisfied

b. Moderately Satisfied

c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied

Q9. How satisfied are you with the educational allowance provided by the Govt.?

a. Strongly Satisfied

b. Moderately Satisfied

c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied
Q10. How satisfied are you with the tiffin allowance provided by the Govt.? a. Strongly Satisfied

b. Moderately Satisfied

c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied

Q11. How satisfied are you with the other allowance (overtime, washing) provided by the Govt.?

a. Strongly Satisfied

b. Moderately Satisfied

c. Neutral

d. Moderately Dissatisfied

e. Strongly Dissatisfied