CHAPTER-I

INTRODUCTION

1.1. Background of the study

One of the major concerns of the organization is its profitability, hence the need for

efficiency. In this era, organizations are in a continuous state of competition and this

has intensified the need to improve employee’s performances and invariably that of

the organization (Barney, 1995). Organizations are faced with a quickly changing

environment; this means that they have to develop a more focused and coherent

approach in how they manage people. Therefore, the organizations need a strategy for

managing their human resource (HR). This has been challenging for employers for a

long time and has been dealt with in different ways across organizations over time

(Gospel, 1992).

HRM is the strategic approach to manage an organization’s most valued assets – the

employees who work together individually and collectively to achieve the aims and

objectives of the business (Mead and Andrews, 2009). It also involves recruiting and

selecting people, training and developing their capabilities, motivating and

compensating their services vis-à-vis the job and organizational requirement (Harzing

and Ruysseveldt, 2009). The assertion that employee’s performance is directly related

to employees’ motivation has been corroborated by different management theories

(Nohria et al, 2008).

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Employee resourcing is a tool used in organizations to ensure that they get the

employees needed and use them efficiently (Spector, 2000). People work with an

organization and stay there when there are effective HR practices that give them a

supportive work environment; thus, it is imperative that organizations develop

effective policies that enable them to recruit, select, and retain competent employees

(Locke and Latham, 1990). One of the key questions in all organizations is how to get

employees to perform well. Most writers have established that the basic foundation

for retaining high performing employees is to have them motivated (Steer et al.,

2004). This is because a motivated employee is likely to perform better. Many

researchers in the area of organizational performance have argued that employee

motivation is an important element in individual and organizational performance and

it is also a significant factor in people’s decision to quit working in an organization

(Steer et al., 2004; Tzeng, 2002). Based on this, Frederick Herzberg famously said: “If

you want people to do a good job, give them a good job to do.”

Employees’ motivation is more important, because motivated employees are

productive and more profitable employees. When employees are not satisfied or

motivated, they become less creative, less productive for the organization. It is

important for an organization to achieve their goals for that they have to increase

productivity and efficiency in the work place in any organization.

Motivation is a behavior, willingness and contribution of employees to perform a

particular task. It is a process, which arise, direct and maintain human behavior to

attain some goal. All the major organizations understand the importance of

employee’s motivation when it has a substantial impact on the boiler suit performance

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of the organization. The basic purpose of any organization to achieve a goal so that it

is important to keep their employees motivated and satisfied. If the employees are

motivated the quality of performance increase also increases thereby having positive

impact on the organization’s performance.

Employee motivation is important to the competitiveness and success of the

organization, for the existence of the business, for the satisfaction of the customer and

to increase the business. The performance of the establishment depends on the degree

of the employee satisfaction and motivation. When they are well motivated, then they

have the willingness to do their best for the task performed. Motivated employees’

work according to their abilities and the goal could be met, whereas de-motivated

employees don’t work to their capacity and organization fails to achieve its goal.

Employees are the ones who utilize the available resource to achieve the goal. Since

the employees utilize resources, it depends upon them how to utilize the available

resources, which goal achievement influences. Motivation creates willingness towards

the job which helps in efficiency and effectiveness of the employee which may result

in the minimum utilization of the resource for higher production thereby achievement

of the organizational goals. Managers, directors are not the one who faces the

guest/customer it is the employees who face the customer. They have direct contact

with the customers. So the employee performance may affect the satisfaction of the

customer and performance is influenced by the motivation level of the employee.

Hence, the employees need to be motivated since the performance of the organization

depends upon them.

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On the basis of linkage between employee motivations a higher performance, the

following sector will briefly introduce the financial institution where such linkage

may be applicable.

1.1.1. Brief profile of NIC Asia Bank Limited Biratnagar Branch

NIC ASIA Bank has its antecedents in NIC Bank which was established on 21 st July

1998. The Bank was rechristened as NIC ASIA Bank after the merger of NIC Bank

with Bank of Asia Nepal on 30 th June 2013. This was a historic merger in the annals

of the Nepalese financial landscape as the first of its kind merger between two

successful commercial banks in the country. Today, NIC ASIA has established itself

as one of the most successful commercial banks in Nepal.

During the post-merger integration phase, NIC ASIA managed the transition very

smoothly receiving accolades from the regulators as well as the stakeholders, paving

the way for other mergers and consolidation in the Nepalese financial sector. After the

merger, NIC ASIA was recognized as “Bank of the Year 2013-Nepal” by The

Banker, Financial Times, UK. This is the second time that the Bank was recognized

with this prestigious award, the previous occasion being in 2007.

NIC ASIA Bank is now, one of the largest private sector commercial banks in the

country in terms of capital base, balance-sheet size, number of branches, ATM

network and customer base. The Bank has 142 branches and 4 extension

and 141 ATMs across Nepal with a network covering all major financial centers of

the country.

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1.1.2. Brief Introduction of Nepal Bank Limited

His Majesty King Tribhuvan inaugurated Nepal Bank Limited on Kartik 30,1994

Bikram Sambat. This marked the beginning of an era of formal banking in Nepal.

Until then all monetary tractions were carried out by private dealers and trading

center. The Bank's objectives to render service to the people whether rich or poor and

to contribute to the nation's development. 

In the absence of any bank in Nepal the economic progress of the country was being

hampered and causing inconvenience to the people and therefore with the objective of

fulfilling that need by providing service to the people and for the betterment of the

country, bank was established.  

1.1.3. Siddhatha Bank Limited

Siddhartha Bank Limited (SBL), established in 2002. Today it stands as one of the

consistently growing banks in Nepal.

Within a short span of time, Siddhartha Bank has been able come up with a wide

range of products and services that best suits its clientele. Siddhartha Bank has been

posting growth in its portfolio size and profitability consistently since the beginning

of its operations. The management of the Bank has been thoroughly professional.

Siddhartha Bank has been able to gain significant trust of the customers and all other

stakeholders to become one of the most promising commercial banks in the country in

less than 15 years of its operation. The Bank is fully committed towards customer

satisfaction. The range and scope of modern banking products and services the Bank

5
has been providing is an example to its commitment towards customer satisfaction. It

is this commitment that has helped the Bank register quantum growth every year.

1.2. Statement of problem

In today’s complex business environment, success depends on employees utilizing

their talents. Despite the myriad of available theories and practices, there have always

been a misconception about motivation because individuals are motivated by different

needs and in variety of ways (Ghebregiorgis and Karsten, 2007).

Over time, it has been established that the main problem in developing and

implementing an effective motivation system is the ability for managers to examine

and analyse the employee’s needs. Furthermore, there exist some contradiction

between employee’s identification of his/her need and the company’s identification of

the employee’s needs. This is due to the fact that each employee is different and is

motivated by different factors. Furthermore, not all employees’ needs would

correspond to the organization’s needs; hence some needs may relate entirely to the

individual’s private life and be neutral to company’s goals (Meads and Andrews,

2009).

Therefore, managerial strategies and tactics must be broad based in order to address

the motivation concerning individual employees (Guest, 1997). The statement of

problem of this study is to find out how salary increment influence the performance

of employees in NIC Asia Bank Ltd, Nepal Bank Limited and Siddhartha Bank

Limited. It has also the problem to know about the role of team work in enhancing job

performance.

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1.3. Objectives of the study

The general objective of this study is to assess the employee motivation in banking

sector. The specific objectives are as under:

1. To examine how salary increment influences the performance of

employees in NIC Asia Bank Ltd, Nepal Bank Limited and Siddhartha

Bank Limited

2. To assess the roles of team work in enhancing job performance.

3. To identify the motivation factors for enhancing the job performance to

improve job performance at NIC Asia Bank Ltd, Nepal Bank Limited and

Siddhartha Bank Limited

1.4. Significance of the study

For the objectives of an organization to be attained, and to motivate employees

effectively, there is the need to understand the different motivational theories and

concepts. It is against this backdrop that this study seeks to evaluate motivation of

employees in an organization. It will also enlighten employees and management on

effective ways to motivate employees; how this can be beneficial to the overall

performance of the organization and how the organization can achieve the efficiency

to develop a substantial organizational culture and human resource policies.

The study will be of immense benefit to the employees of NIC Asia Bank Ltd, Nepal

Bank Limited and Siddhartha Bank Limited., management of NIC Asia Bank Ltd,

Nepal Bank Limited and Siddhartha Bank Limited, students and academicians in the

FBM especially students of HRM in that it will highlight how the concept of

motivation and job performance are valued and understood and the need for all to pay

attention to a variety of motivation issues or financial incentives for employees. The

7
research exposes the researcher to the practical issues of the subject. It enabled her to

match theory and in this way that the researcher will better understand more the

application of the motivation theories managing Hrs in Banks.

1.5. Limitation of the study

This has the ability to give information about the motivation requirement and its

affect in the performance of the employees of NIC Asia Bank Ltd, Nepal Bank

Limited and Siddhartha Bank Limited. Gained information are gathered as far as

possible but it also has many limitation and they are as follows:

 This study is only related to employees of NIC Asia Bank Ltd, Nepal Bank

Limited and Siddhartha Bank Limited only which may lead to biasness about

the findings and conclusions.

 Simple statistical tools and techniques have been used.

 Only three sample banks taken wider variation in financial benefits and

incentives.

1.6. Organization of the study

The study was presented on five chapters. The first chapter was introduction which

covers the background to the problem, statement of the research problem, objective of

the study, research questions, and significance of the study, scope of the study and

organization of study.

Chapter two comprised of conceptual definitions, theoretical literature review,

empirical literature review, research gap, conceptual framework and theoretical

framework.

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Chapter three was focused on research methodology which includes research design,

study area, population of the study, sample size and sampling procedures, data

collection methods, data collection tools, reliability and validity of the data, data

presentation and analysis and study expected result of the study.

Chapter four covers data analysis, and discussions.

Chapter five comprised of summary, conclusions and recommendations.

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 CHAPTER-II

REVIEW OF LITERATURE

2.1. Introduction

This chapter attempts to explain definition of key terms, different types of

motivational theories, techniques of motivation, determination of job performance,

empirical literature review and relationship between employees’ motivation and job

performance.

2.2. Conceptual framework

2.2.1. Motivation

Defining and measuring motivation is complicated because motivation by itself is not

overtly observable and that behavioural observations consequently lead us to infer the

motivational processes (Swezey, 1994). Motivation is generally correlated with the

question of what energizes and arouses behaviour. Kanfer (1990) argues that the

intensity of action, the direction of behaviour, and diligence of behaviour patterns

over time allow us to make inferences about motivation (Swezey, 1994).

The word motivation is derived from the Latin word ‘‘movere”, which means, “to

move” (Kretiner, 2004). According to Higgins, (1994), motivation has been defined

as: a psychological process that serves as an internal drive to satisfy an unsatisfied

need (cited in Lindner, 1998): a predisposition to behave in a purposeful manner to

10
achieve specific, unmet needs (Buford, Bedeian, and Lindner, 1995 cited in Lindner,

1998).

According to Greenberg and Baron (2000), motivation can be divided into three main

parts. The first part looks at the stimulation that deals with the drive, or energy behind

an individual’s action. Often times, people tend to be guided by their interest in

creating a good impression on others, doing interesting work and being successful at

what they do. The second part refers to the choices people make and the direction

their behaviour takes. Lastly, the third part deals with maintaining behaviour, which

clearly defines how long people, have to persist at attempting to meet their goals.

According to Antomioni (1999), motivation can be described as “the amount of effort

people are willing to put in their work depending on the degree to which they feel

their needs will be satisfied.” Consequently, individuals become de-motivated if they

feel something in the organisation hinders them from attaining positive outcomes.

It is evident from the above definitions that, in general, motivation is basically

concerned with factors that propel certain human actions or inactions over a given

period of time provided that the prevailing conditions are present. Furthermore these

definitions imply that it is necessary that there exists “an invisible force” to impel

people to do something in return (Freemantle, 2001). It could also be deduced from

the various definitions that having a motivated work force or establishing an

environment where high degree of motivation are created and maintained remain a

challenge for today’s management. This challenge stems from the fact that motivation

is not a static trait, as it could vary with changes in personal, financial, psychological,

or social factors (Freemantle, 2001). Hence, for this research study, the definition of

motivation by Greenberg and Baron (2003) will be adopted, as it is more realistic and

11
simple as it considers the individual and his performance. Greenberg and Baron

defines motivation as “The set of processes that arouse, direct, and maintain human

behaviour towards attaining some goal” (Greenberg and Baron, 2003).

The sources of motivation can be intrinsic or extrinsic (Jones and George, 2004). An

intrinsically motivated behaviour is a behaviour that is performed for one’s own

purpose, while extrinsically motivated behaviours are performed to obtain rewards or

to avoid punishment. Thus, a manager can attempt stimulating the employee’s

intrinsic motivation, but cannot create the intrinsic motivation for that employee. This

implies that, for example, a manager should rather try to discover factors would drive

an employee to smile at customers, than simply instruct the employee to smile at

customers (Freemantle, 2001).

Motivation is probably one of the most researched areas of management. If a manager

can grasp what will motivate his/her employees, that manager will have more

productive force (Mullins, 1996). In order to motivate workers to work for the

organisational goals, managers must determine the needs of employees, factors that

motivate them and provide an avenue in which appropriate incentives are available for

their satisfaction. If the management is successful in doing so, there will be a positive

impact on the willingness of the workers to work and hence the efficiency and

effectiveness of the organisation will be increased (Draftke and Kossem, 2002).

There are several competing theories that attempt to explain the nature of motivation

(Hammer, 1979). Each theory seeks to rationalize the behaviour of human beings and

suggest what managers can do to influence their employees’ behaviour. The

perspective taken by sociologists leads them to investigate the effect that the social

environment (both the wider societal influences and the influence of specific social
12
groupings) has on worker’s motivation. Based on this focus, psychological

approaches generally concentrate on analyzing the internal cognitive development of

individuals, even though these approaches also recognize that behaviour can be

affected to some degree by the social environment.

2.2.2. Process of motivation

Figure 2.1: Process of motivation

1. Unsatisfied Needs & Motives: It is the first stage in the process of motivation.

This stage involves unsatisfied needs and motives. Every individual work in any

organization to get attempt to fulfill their needs. When the objective of the

employee is not met, then dissatisfaction develops in that employee. Hence, the

need of the employee should be understood to use it as a tool for motivation.

2. Tension: The second stage of the process involves tension. Dissatisfaction

creates tension in an individual. Such tension can be physical, psychological,

and sociological. In this situation, people try to develop object that will satisfy

their needs.

3. Action to satisfy needs and motives: This stage involves action of managers to

satisfy needs and motives of the employee. Tension creates strong internal

stimulus that calls for action. Individual engages in action to satisfy needs and
13
 motives for tension reduction. Hence, it includes the steps taken to motivate the

employee to get his/her needs fulfilled.

4. Goal Accomplishment: When actions are taken to motivate the employee to

fulfill their needs, then goal of motivating employee is achieved.

5. Feedback: This is the last stage in the process of motivation. Feedback provides

information for revision or improvement or modification of needs as required.

Depending on how well the goal is achieved, the needs and motives of employees

are modified. Drastic changes in environment necessitate the revision and

modification of needs.

2.2.3. Types of Motivation

Motivation at work can occur in two ways:
(a) Extrinsic motivation

This is refers to what is done to and for people to motivate them. It arises when

management provides rewards such as increased pay, praise or promotions

(Armstrong, 2006). Extrinsic motivation is a behavior that is influenced by external

rewards. Praise or positive feedback, money, and the absence of punishment are

examples of extrinsic motivation (Deci, 1980).

(b) Intrinsic Motivation

This is derived from the content of the job. It can be described as the process of

motivation by the work itself in so far as it satisfies people’s needs or at least leads

people to expect that their goals will be achieved. Intrinsic motivation is self-

generated in that people seek the type of work that satisfies them. The factors

affecting intrinsic motivation include responsibility, feeling of the work is important

and having control over one’s own resources, freedom to act, scope to use and

14
develop skills and abilities, interesting and challenging work, and opportunities for

advancement (Armstrong, 2006).

2.2.4. Technique of motivation

Gupta, (2005) has mentioned two main techniques of motivation which are explained

below:

Carrot and stick Approach to Motivation

This approach is based upon the old belief that the best way to get work from a person

is to put a reward (carrot) before him or to hold out the threat of punishment (stick).

Carrot represents the reward for working, and stick represent the punishment for not

working. Under carrot- and -stick approach, employees who perform the task well are

given rewards in the form of bonus, pay raise and promotion. While employees

avoiding work (showing undesired behavior) are given punishment in the form of

demotion, termination from service and transfer to an unpleasant job. Employer who

adopt this approach believe that a person seeks employment because he or she expects

to earn money to satisfy the needs of himself or herself and of his or her family. He or

she knows that if he does not perform his job satisfactorily he will lose his job. Stick

pushes people to engage in positive behavior or to avoid negative behavior. Carrot-

and- stick approach is, therefore a reward and punishment system for motivating

employees. Steps which may be taken to make the carrot and stick approach more

effective:

(a) Reward (carrot) is more effective motivator when it is directly linked with

performance. Accurate and unbiased appraisal of performance consistent

15
 (equitable) reward structure and prompt payment of reward are also helpful in

improving the effect of reward.

(b) Punishment (stick) is more effective if applied at the time when the

undesirable behavior actually occurs.

(c) Punishment should be administered with extreme case so that it does not

become a reward for undesirable behavior.

(d) Punishment should be used to modify the behavior and to force person to

adopt desirable behavior, which is rewarded.

(e) The mixture of reward and punishment should be judiciously applied to

reinforce desirable behavior patterns.

Motivation through Job Enrichment

Job enrichment is a non-financial technique of motivation. It is an outgrowth of

Herzberg’s’ Two- factor theory of motivation. It is based on the assumption that

factors surrounding the work are not effective motivators of behavior. In order to

motivate employees, the job itself must provide opportunities for achievement,

recognition, responsibility, advancement and growth. Job enrichment is an attempt to

design job in such a way as to build in the opportunity for achievement, recognition,

responsibility and personal growth. It provides a worker greater autonomy and

responsibility in carrying out a complete task and with timely feedback on his

performance (Gupta, 2005).

Job enrichment involves designing jobs with variety of work content that requires a

high level of knowledge and skill. It provides a meaningful work experience and

greater responsibility for planning and controlling his/her own performance. It

requires decentralization of decision- making authority to the worker. The task is

16
redefined, restructured and broadened in scope and responsibility. The worker gets the

freedom and discretion in scheduling his work (Gupta, 2005).

Job enrichment is said to be a key to higher motivation and productivity. It removes

the labor management distinction. It creates a self-managed job where the worker

himself plans and controls his tasks. It offers job satisfaction in the whole man(Gupta,

2005).

2.2.5. Job Performance

According to Daniel (2002), job performance can be defined in terms of whether

employees’ behaviors contribute to organizational goals. Performance can be seen as

an individual, group, or organizational task performance. Organizations have a vital

need to understand how to improve employee’s performance; therefore, they try to

find an explanation as to why employees fail to perform (Muchinsky, 1993).

Employee performance can be defined as an employee ability to accomplish tasks

assigned to him or her in an organizational context (Arverty & Murphy, 1998).

Motowildo (1997), says that performance is behavior with a namely performance

ratings from supervisors and peers (Newman et al., (2004). One further element of

performance is that the behaviors must be relevant to the goals of the organization

(Campbell et al,. 1993).

There are numerous causes that affect the level of performance. Korman (1971)

considers internal determinants as very important factors that influences job

performance. Internal determinants are divided into two main aspects. The first aspect

is the skills and abilities for a given job that the employee has. The second aspect is

17
the role perceptions or the requirements for a job as an influence on work

performance. This means that if one perceives his/her job role accurately, he/she

would be considered as an adequate performer. Conversely, the one who does not

perceive the requirements of the job would be considered as ineffective (Korman,

1971).

In addition to the internal factors that affect employee performance, other factors that

relate more to the external environment determine the adequate performance of the

employees. Working condition is an example of the external environmental factor that

influences the level of performance.

Another factor that influences performance is communication. Sometimes managers

fail to communicate specifically what employees need to improve and why, which can

lead to sub-optional performance. Motivation is necessary for performance. It enables

workers perform well and put more effort into work. Motivation reduces the rate of

absenteeism and encourages stability/ loyalty within an organization. It assist people

to adapt to organizational changes (Saleemi, 1997).

2.2.6. Determinants of Job performance

Job performance is a critical antecedent of performance management. A job consists

of a number of interrelated tasks, duties, and responsibilities which a job holder needs

to carry out, whereas performance is a behavior or action that is relevant for the

organization’s goals and that can be measured in terms of the level of proficiency or

contribution to goals that is represented by a particular or set of actions (John

Campbell, 1988). This implies that job performance involves certain functional as

18
well as behavioral competencies. The factors tend to impact job performance are as

follows:

(a) Knowledge.

Knowledge is the acquaintance with facts, truth or principles, derived from study or

investigation. Knowledge provides a tool to an employee to carry out tasks and

activities in the organizational context. However, knowledge can be categorized as

either declarative knowledge which is concerned with what an employee knows, or

procedural knowledge that refers to what an employee can do (A. Kohli, 2008).

(b) Motivation of employee

A mere possession of knowledge or the ability to perform a given job cannot

guarantee job performance, if the employee lacks the motivation to perform. Only

motivated employees will make a effort to perform. Individual employees may be

motivated either based on individual factors like recognition and driving needs, or

organizational factors like enabling culture, feedback environment, existence of

effective performance management leadership’s support and encouragement (A.S.

Kohli, 2008).

(c) Feedback.

Employees tend to perform well at their jobs if they are provided with meaningful

and constructive feedback. Such feedback helps employees identify areas of

improvement and they tend to work harder to overcome the performance gaps.

19
Existence of feedback- oriented workplace environment is crucial to improve

performance of employees on an ongoing basis (A.S. Kohli 2008)

(d) Leadership

Leadership has a profound influence on the employee’s morale and motivation and

organizational culture Many times, top leaders had to leave their organizations, not

because they did not have the job knowledge or skills, but failure to set right the

organizational culture. Effective leaders tend to solicit employees involvement in

steering their organization forward. They encourage suggestion, trust them, encourage

taking risk and elicit full mental participation of their employees in improving

organizational performance. (A.S. Kohli, 2008).

e) Personality

Personality is the key dimension of behavior, and behavior is a foundation

performance of employees. However, personality is shaped by various endogenous

and exogenous factors. Indeed, personality influences the behavior and impacts

employees’ job performance (A.S. Kohli, 2008).

2.3. Theory related to motivation

2.3.1. The Hierarchy of Need Theory

Maslow’s hierarchy of need as a theory was proposed by Abraham Maslow in his

1954 book “Motivation and personality”. Maslow hierarchy of need is often portrayed

in a shape of pyramid (Maslow, 1954) with the largest and most fundamental level of

needs at the bottom, and the need for self-actualization at the top. In ascending order,

beginning with the most basic need, the needs are psychological, safety, social,

esteem and self-actualization needs. According to Maslow, people are motivated to

satisfy the lower needs before they try to satisfy the higher need.

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 Figure 2.3. Maslow Hierarchy of needs

(i) Psychological Need

Psychological needs are literal requirements for human survival. Air, food and

water are metabolic requirements for survival for all humans. An individual to

satisfy these psychological needs is greater than the drive to satisfy any other type

of need. These needs are satisfied through the wages and salaries paid by an

organization (Maslow, 1954).

(ii) Safety Needs

With their physical needs relatively satisfied, the individual's safety needs take

precedence and dominate behavior. In the absence of physical safety – due to war,

natural disaster, family violence, childhood abuse, etc. – people may

(re)experience post-traumatic stress disorder or trans generational trauma. In the

absence of economic safety – due to economic crisis and lack of work

opportunities – these safety needs manifest themselves in ways such as a

preference for job security, grievance procedures for protecting the individual

from unilateral authority, savings accounts, insurance policies, reasonable

disability accommodations, etc. Safety and security needs include: Personal

security, financial security, health and well-being, Safety net against accidents.

(iii) Love and Belonging

Humans need to feel sense of belongingness and acceptance, whether it comes

from a large social group, such as clubs, office culture, professional organizations,
21
sport teams or small connections (family members, inmate partners, mentors,

confidents).They need to love and be loved by others (Maslow, 1954).

(iv) Esteem Need

According to Maslow (1954), all humans have a need to be respected and to have

self-esteem and self-respect. Esteem are presents the normal humans desire to be

accepted and valued by others. Person need to engage himself to gain recognition

and have an activity or activities that gives that person a sense of contribution, to

feel self-valued, be it in a profession or hobby

(v) Self-Actualization Need

Maslow (1954), describes that what a man can be, he must be. This form the basis

of the perceived need for self-actualization. Maslow describes this desire to

become more and more what one is, to become everything that one is capable of

becoming. One can achieve this not through promotions but by mastering his/her

environment and setting and achieving goals (Maslow, 1945). Maslow theory

makes three important contributions. Firstly, it identifies important need

categories which can help managers to create effective positive reinforcements.

Second contribution is that, the theory is helpful to think of two general levels of

needs, in which lower level needs must be satisfied before higher level needs

become important. Third, this theory sensitizes managers to the importance of

personal growth and self-actualization. However, Maslow’s theory has some

shortcomings. There is a lack of hierarchical structure of needs as suggested by

Maslow. In reality, every person has to satisfy his needs in some order, the order
22
may not follow Maslow’s need hierarchy. Some people may be deprived for their

lower needs but may try to achieve self-actualizing needs. However, some people

regard self-esteem as more important than social needs. They had seen self-

assertion as means to an end-love love need. There is considerable disordering

among physiological needs, safety needs, social needs and esteem needs

particularly in an organizational context (Rollison, et.al, 1998).

2.3.2. Herzberg Two Factor Theory

Frederick Herzberg introduced his Two Factor Theory in 1959. Herzberg argue

that, lower-order needs, or hygiene factors, are different from higher- order needs,

or motivators.

Hygiene factor

A series of hygiene factors create dissatisfaction if individual perceive them

inadequate or inequitable, yet individuals will not be significantly motivated if

these factors are viewed as adequate or good. Hygiene factors are extrinsic and

include actors such as salary or remuneration, job security, interpersonal relations,

working conditions, technical supervision and company policies and

administration. Herzberg maintains that adding more hygiene factors to the job is

a very bad way to motivate because lower order needs are quickly satisfied.

(i) Motivator

Motivator factors are based on individual’s needs for personal growth. When they

exist, motivator factors actively create job satisfaction. If they are effective, they

can motivate an individual to achieve above – average performance and effort.

These motivators are intrinsic factors such as a sense of achievement, recognition,

responsibility, personal, status, growth and the work itself.

23
 Herzberg (1954) further contends that the core of motivator is the nature of job or

task. Motivators will not be readily present unless the job itself is interesting,

challenging and meaningful. Herzberg sees the solution to the motivation problem

is the design of the job itself, so that motivator factors can take effect. He suggests

three ways in which this could be done especially through job enrichment, job

rotation and job enlargement.

2.3.3. Vroom’s Expectance Theory

This theory was developed in 1964 by a scholar named Vroom. The theory is built on

the assumption that individuals have expectations about outcome that may manifest

them as a result of what they do. Another assumption is that different individuals have

different preference for different outcomes.

Vroom (1964) suggests that individuals are motivated to perform if they have

perception that their efforts will result in successful performance. Furthermore, in

order to be motivated, individual must expect or believe that successful performance

will result in desirable outcome.

According to Vroom (1964), three variables are involved in the motivation process.

(i) Expectancy. This is the effort a person makes to obtain a first level outcome. It

is influenced by his/her expectancy that the outcome will be realized.

(ii) Instrumentality. As per this theory, reaching a first level outcome may in itself

not mean anything to a person. It may, however be instrumental in reaching a

second level outcome or reward.

24
(iii) Valence. This refers to the expected satisfaction that will follow an outcome

rather than the immediate satisfaction it (Vroom, 1964).

The Vroom theory of employee motivation has been subjected to degrees of empirical

testing. It contributes significantly to the study of motivation. There is criticism that

the theory is difficult to apply in a practical way (Miner, 1980).

2.3.4. Equity Theory

This theory, propounded by John Stacey Adams in 1963, asserted that employees seek

to maintain an equity between the inputs that they bring to a job and the outcomes that

they receive from it against the perceived inputs and incomes of others.

Adams (1963) believed that people value fair treatment which causes them to be

motivated; hence it is important to maintain within the relationship among co-workers

of the organization. The structure of equity in workplace is based on the ratio of

inputs to outcomes. According to this theory, individuals are motivated to reduce

perceived inequity. Anger is induced by underpayment inequity (Adams, 1965).

According to Adam (1963), inputs typically include time, effort, loyalty, hard work,

commitment, ability, adaptability, flexibility, tolerance determination and enthusiasm.

The typical outcomes include job security, salary, employee benefits, a sense of

achievement, praise and appreciation.

Equity theory plays a important role in explaining the significance of fairness in

terms of equity at work place. For instance, employees in the organization have

25
tendency to compare between what they have contributed and twhat they have

received. However, employees working in the organization can be paid differently,

and this may become a means of motivation. The theory can significantly influence

the job design and reward system.

2.3.5. Reinforcement Theory

Behaviorist B.F. Skinner developed the Reinforcement Theory, one of the oldest

theories of motivation as way to explain behavior and why we do what we do. The

theory is also known as behaviorism or operant conditioning which is still commonly

taught in psychology today (Management Study Guide 2013).

The theory states that those employees’ behaviors that lead to positive outcome will

be repeated; and behavior that leads to negative outcomes will not be repeated.

Managers should, therefore, positively reinforce to yield the best results. The reward

should immediately follow performance so that the employees can effectively

associate the reward with performance (Skiner, 1974).

This theory plays a crucial role in relating reward to perform which is perceived to be

Powerful and It is widely used in motivating employees at work place. It is

noteworthy that employees at work place not only motivated by money but also by a

judicious combination of many variables based on individual, management and

organizational levels.

2.3.6. Theory X and Y

26
Mc Gregor developed a philosophical view of human kind with his Theory X and Y

in 1960. His work is based upon Maslow’s hierarchy of needs, in that he grouped the

hierarchy into lower-order needs(Theory X) and higher –order needs(Theory Y). The

suggested that management could use either set of needs to motivate employees, but

better results would be gained by the use of Theory Y, rather than Theory X. These

two opposing perceptions theorized how people view human behavior at work and

organizational life:

Theory X

Following are the assumptions

 People have an inherent dislike for work and will avoid it whenever possible.

 People must be controlled, directed, or threatened with punishment in order to

get them to achieve the organizational objectives.

 People prefer to be directed, do not want responsibility, and have little or no

ambition.

 People seek security above all else.

Theory Y

Following are the assumption of the group Y:

 People will exercise self-direction if they are committed to the objectives

 Work is as natural as play and rest.

 Commitment to objectives is a function of the rewards associated with their

achievement.

 People learn to accept and seek responsibility.

27
  Creativity, ingenuity, and imagination are widely distributed among the

population. People are capable of using these abilities to solve an organizational

problem.

 People have potential.

By knowing the employee in which group he/she lies and accordingly motivated in

order to get the output from the employees.

2.4. Review of related studies

Most of the researcher found the different factors that affect the motivation at

different level. Yang (2011) has the objective to find out the factors that motivate the

employees in China and at what extent the personal characteristics have impact on

work motivation. It involved the variables Independent variables such as good pay

and personal characteristics including gender , age, education level, work experience,

marital status, personality and monthly income. Dependent variables were work,

motivation. In this paper the author selected the questionnaire method .These were

filled by employees at six organizations based in Ningbo people in markets. The

analysis of this data used t-test, one way ANOVA and regression. This discussion

found that among these variables, pay plays the most important role to motivate the

employees in China and personal characteristics had great impact on work motivation.

It was confirmed that all factors were important to motivate the employees; but good

pay was the most valuable variable

Few researchers found that performance is dependent on different pay schemes.

O’Halloran (2004) describes the relationship between different performance related

pay schemes affect the turnover. Profit sharing, experience job satisfaction and
28
turnover were the variables considered. Longitudinal database of individual is used

for collection data. Standard probates and panel data base was used for analysis.

Analysis focused on a nationally representative sample of 6,111 male and females

who were between the ages of 14-22 year. The objective was to evaluate whether

profit sharing reduce employee turnover. Conclusion was that workers receiving some

form of PRP, no matter what is the type had lower rates of employee turnover in

comparison to worker who do not receive any form of PRP.

Abdul Hakeem (2008) conducted a research focused on the relationship between

motivation and job satisfaction on employee performance in University of Utera

Malaysia. The study found that job satisfaction has significant positive influence on

the employee performance rather than motivation.

Gure, Naima Abdullahi (2010), also researched on the impact of motivation on

employee performance at Nation link Telecom Somalia. On her study she found that

motivation has strong positive influence on employee’s performance rather than job

satisfaction. Satisfaction has low influence on employees performance. However, the

study concluded that motivation among support staff contributes more to the

employees’ performance of Nationlink Telecom Somalia.

Employees’ participation refers to the direct involvement of individuals in decisions

making relating to their immediate work organization and to indirect involvement in

decision making, through representatives in an organization (Agrawal, 2005).

Participative management is technique in which employees are given a voice in

determining what they are to do, how they are to do it, and how they are to be

29
appraised. It is a democratic philosophy that respects all members of an organization

(Pant, 2009). The concept of employees’ participation in management indicates an

attempt on the part of an employer to build employees into a team which work

towards the realization of a common objective. It is a mental and emotional

involvement of a person in a group situation which encourages them to contribute to

goals and share responsibilities.

Therefore, it can be said that employee participation is the process of employee

involvement in the decision making process of the organization. It is the democratic

process where employees or employees representative are asked to share their

opinions and ideas for the effectiveness of the organization. Employee participation in

organizational activities brings recognition, sense of belongingness, self respect and

acceptance in employees.

Research study conducted by Bhatti and Qureshi (2007) research study supported that

the employees participation has the positive impact on job satisfaction, employee

productivity and employee commitment. Employees’ participation in decision making

has a positive and significant impact on the job satisfaction of the employees

indicating that an employee’s participation in decision- making can help to enhaning

the better employees’s performance. The correlation and regression analysis in this

study indicated that the employees’ participation can significantly explain the

variation in employees’ job satisfaction, commitment and productivity.

30
 CHAPTER-III

RESEARCH METHODOLOGY

3.1. Introduction

According to Creswell (2009), a research methodology provides the procedural rules

for the assessment of research claims and the validation of the knowledge gathered,

while research design serves as the research blueprint. Whiteley (2002) further

defined a research methodology as an established framework for the collection and

assessment of existent knowledge for the purpose of finding, and validating new

knowledge. The resources that the research utilizes must fulfil explicit purposes and

withstand critical scrutiny. A constructive research methodology is very pertinent as it

identifies the necessary tools and strategies that will be adopted. In the context of

research methodology, each research creates a set of distinctive questions and

objectives. Hence, in a bid to articulate a means by which the research objectives can

be satisfied, the research design serves as a paradigm to employ the necessary tools

and strategies for a thorough analysis of collected data (Creswell, 2009).

3.2. Research Design

It is important to critically select a research approach in carrying out a research study.

The research approach is important as it informs the research design and provides a

basis for a critical consideration of how each of the various approaches may

contribute meaningfully to, or limits the study (Locke et al, 2009). As explained by

Locke et al (2009), the research approach comprises of the quantitative versus the

31
qualitative and the deductive versus the inductive approach. Each of these

perspectives is viewed as opposites but it is important that a researcher be open to a

variety of approaches as required by the subject study (Oyebanji, 2002).

According to Locke et al (2009), the deductive approach can be defined as a test of

theories and conceptual frameworks, which is perceived and hence formulates

hypothesis on that basis. Conversely, the inductive approach emanates from the

empirical data and proceeds to develop conceptual frameworks in accordance with the

collected data. However, this research study will adopt the deductive approach, since

it utilises a wide range of existing theories and attempts to find answers from existing

research and findings about motivation and employees performances.

3.3. Population and sample

For the purpose of this study, a descriptive survey method was employed. The target

population of this study consists of managers and employees of NIC Bank Limited

and Nepal Bank Limited. The population size of this study is 28 commercial bank

operating in Nepal. The 28 commercial bank operating in Nepal is considered here as

population of the study. Among them NIC Asia Bank Ltd, Nepal Bank Limited and

Siddhartha Bank Limited is taken as judgmental sample for the study.

3.4. Data collection and sources of data

Data collection is the process of gathering and measuring information on various

variables of interest, in an established systematic fashion enables one to answer stated

research question, test hypotheses, and evaluate outcomes. The data collection

component of research is common to all fields of study including physical and social

sciences, humanities, business etc. While methods vary by discipline, the emphasis on
32
ensuring on ensuring accurate and honest collection remains the same. The goal for all

data collection is to capture quality evidence that then translates to rich data analysis

and allows the building of a convincing and credible answer to questions that have

been posted.

Data collection is an important aspect of any type of research study. Inaccurate data

collection can impact the results of a study and lead to invalid results. Data collection

is the one which helps to draw the conclusion after the data is achieved. Data

collection need to unbiased. Necessary tool is to be used for the accurate data

collection. It helps to show the situation of the research topic. According to the

research topic it depends on which method of data collection is to be used whether to

use qualitative or quantitative or both. In this study, the sources of data are:

(a) Questionnaire

The questions in a survey can be grouped into two distinctive parts: open-ended

closed-ended and questions. Open-ended questions require the respondents are

expected to answer in their own words while closed-ended questions require the

respondents to choose answers from a set of alternatives (Creswell, 2009).

However, in this study, closed-ended questions are used because the alternative

answers are set in a way that can easily be quantified and measured.

In Primary data Open ended and closed ended questions were used .The selected

respondents answered both open –ended and close- ended questions.

Questionnaires were administered to employees of NIC Asia Bank Limited, Nepal

Bank Limited and Siddhartha Bank Limited.

33
 (b) Interview

Interviews were conducted with the key informants of NIC Asia Bank Limited,

Biratnagar Branch. This method involved contact between the researcher and

respondents (key informants). Researcher and respondents were involved in a

question- answer situation with the aim of eliciting necessary information. It is

here that interview guides were applied.

Moreover interviews were conducted for guiding questions to be used. Interview

was conducted at NIC Asia Bank Limited, Nepal Bank Limited and Siddhartha

Bank Limited where there was applicability of respondents and collection of data.

Interview was used by the reasons that interview was flexible and some few

questions would need the flexibility and justifications, high response rate was

considered in interview and completeness because through interview the data

collected can be sure with the completeness of the questions.

3.5. Data analysis tools

The data were thoroughly checked for comprehensiveness, completeness, accuracy

and uniformity. Tables were then drawn accordingly to record frequency, distribution

and percentages while graphs represented some data for easy comparison.

Furthermore, the collected data were also edited, coded, and analyzed decrepitly

manually. Editing means process of examining the collected raw data to enable

dictating of errors and omission and correcting mistakes. The basic purpose of editing

was to secure a quality standard on the data and it involve inspection and if necessary

checking of the retained questionnaire or interview schedules.

34
 CHAPTER-IV

PRESENTATION AND ANALYSIS OF DATA

4.1. Presentation of Data

This chapter describes about the the effects of motivational factor on work output. It
describes the effects of motivational factor on NIC Asia Bank Limited, Nepal Bank
Limited and Siddhartha Bank Limited performance.

4.1. Demographic and Social Economic Characteristics of Respondents

4.1.1. Age of respondent
The study was interested to use age because age has influence on the ability to work
and ability to conduct business which it influences ability to save and demand for
bank services. Age is also used because it has influence on applicability of being a
customer for either sending or receiving money. However, the study shows that young
people are more motivated to work because most of them are young and fresh from
colleges and so they are eager to work. Older people are less concerned with
motivation because they are more concerned with health and mentoring others and
attached more to job security. In addition, older people desire social status, relaxed
working environment and final benefits after retirement. The study found that there is
a positive relationship between age and job performance.

Table 4.1 Age of Respondent

Age NIC Asia Percentage NBL Percentage SBL Percentage
18-27 36 41.86 17 19.77 24 27.91
28-37 24 27.91 34 39.53 32 37.21
38-47 16 18.60 21 24.42 17 19.77

35
 Above 48 10 11.63 14 16.28 13 15.12
Total 86 100% 86 100 86 100
Source: Questionnaire, 2019

Figure 4.1. Age of Respondent

The study showed that age of NIC Asia respondents were between 18-27 of (41.86%),
27.91% of respondents were of age group 28-37. (8.60%) of respondents were found in
age group 38-47. Few respondents were found in age group above 48 years (11.63%).
The result shows that most of employee working are of active group criteria. The age of
Nepal Bank limited respondent were between 18-27 (19.77%), (39.53 %) of respondent
were of age group 28-37. Moreover 24.42% of respondent were found in age group 38-
47. Few respondents were found in age group above 48 years with (16.28%). The result
shows that most of employee working are of active group criteria. Similarly the age of
Siddhartha Bank limited respondent were between 18-27 (27.91%), (37.21%) respondent
were of age group 28-37. Moreover (19.77%) respondent were found in age group 38-47.
Few respondents were found in age group above 48 years (15.12%). The result shows that
most of employee working are of active group criteria.

4.1.2. Educational qualification of the respondents

36
 The study was interested in using level of education because saving is linked to higher
standard of living and chance of demanding banking services is high. Education also
influence the saving behavior of people, their understanding the meaning and
importance of saving. Majority of the employees were skilled.

Table 4.2 Educational Qualification of the respondent

Educational NIC Asia Percentage NBL Percentage SBL Percentag
Qualification e
SLC 7 8.14 12 13.95 12 13.95
+2 13 15.12 33 38.37 15 17.44
Bachelor Degree 28 32.56 35 40.70 32 37.21
Master Degree 38 44.19 6 6.98 27 31.40
Total 86 100% 86 100 86 100
Source: Questionnaire, 2019

Figure 4.2. Educational qualification of the respodent

111Source: Questionnaire, 2019

Table 4.2 and Figrue 4.2 shows the educational qualification of the respondents. The
study showed that NIC Asia has 7 employee i.e. (8.14%) among the respondent
having has SLC education qualification, 13 respondent (15.12 %) having +2
educational qualification, 28 respondent (32.56 %) having Bachelor Degree and 38
respondents (44.19%) respondents having master degree educational qualification.

37
 In Nepal Bank Limited out of the total respondent, 12 respondent (13.95%) have
passed SLC, 33 respondent (38.37%) have passed +2, 35 respondnt (40.70%) have
and 6 respondnet (6.98%) respondnet master degree.

In Siddhartha Bank Limited, out of the total respodents 12 respondents (13.95%)

have passed SLC, 15 respondents (17.44%) have passed +2 educatioanal
qualification, 32 respondnets (37.21%) have passed bachelor degree and 27
respondnets (31.40%) respondnet have passed master degree.

4.1.3. Duration of working

The study was interested to use years of respondents working in banks because the
longevity of employee to stay in the job will determine that employee is satisfied with
the motivating factors given to him hence performing well in the organization.

Table 4.3 Duration of employment

Year of NIC Asia Percentage NBL Percentage SBL Percentag
working e
0-5 48 55.81 57 66.28 53 61.93
6-10 18 20.93 13 15.12 17 19.77
11-15 12 13.95 10 11.63 10 11.63
Above 15 8 9.30 6 6.98 6 6.98
Total 86 100% 86 100% 86 100%
Source: Questionnaire, 2019

Figure 4.3. Duration of employment

38
Source: Questionnaire, 2019

Table 4.3 and Figure 4.3 show the duration of employment in the banks by the
respondent. In NIC Asia Bank, out of the total respondent 48 respondent (55.81%)
were working between 0-5 years, 18 respondent ( 20.93%) were from 6-10 years, 12
respondent (13.95%) were working from 11-15 years and 8 respondent i.e. (9.30%)
respondent have been working above 15 years. In Nepal Bank Limited, out of the total
respondent 57 respondent (66.28%) were working from 0-5 years , 13 respondent
(15.12%) were working from 6-10 years of period, 10 respondent (11.63%) were
working from 11-15 years and 6 respondent (6.98%) respondent were working
above 15 years.

Siddhartha Bank Limited out of the total respondent 53 respondent (61.93%) were
working from 0-5 years, 17 respondent (19.77%) respondent were working from 6-
10 years, 10 respondent (11.63% ) were working from 11-15 years of period and 6
respondent (6.98%) were working above 15 years.

4.1.4. Team work in bank

Respondent were asked whether they have team work in banks or not. The response
of the response is presented in the below table:

Table 4.4. Team work in Bank

39
Team work NIC Asia Percentage NBL Percentage SBL Percentag
in Bank e
Yes 80 93.02 82 95.35 79 91.86
No 6 6.98 4 4.65 7 8.14
Total 86 100% 86 100% 86 100%
Source: Questionnaire, 2019

Figure 4.4. Team work in Bank

Source: Questionnaire, 2019

Table 4.4 and Figure 4.4 show the whether there is team work in their work place or
not. In NIC Asia Bank out of the total respondents, 80 respondent (93.02%) feel that
there is team work in the banks and 6 respondent i.e. 6.98% didn’t feel that there was
any team work in the bank.

40
In Nepal Bank Limited out of the total respondent 82 respondent (95.35%)
respondent felt that there was team work in bank; and 4 respondents ( 4.65%)
believed that there was no team work in the bank.

In Siddhartha Bank Limited, out of the total respondents 79respondent (91.86%)

believed that there was team work in the banks and 7 respondent (8.14%) didn’t feel
that there was team work in the bank.

4.1.5. Role of team work in enhancing job performance

The study was intended to find out the role of team work in enhancing job
performance in the sampled banks because working together as a team improves trust
and communication among employees This can contribute to a more open
environment in which creativity is supported and encouraged. By working together,
team members pool their complimentary skills and experiences, which may improve
each employee’s individual performance. In turn, improved performance may
increase job satisfaction, enhancing employee’s self-esteem and joy S/he finds at
work.

Table 4.5 Role of team work in enhancing job performance

Role of team NIC Asia Percentage NBL Percentage SBL Percentag
work in e
enhancing job
performance
Achievement 53 61.63 68 79.07 59 68.60
Poor 18 20.93 12 13.95 11 12.79
performance
No team work 6 6.98 4 4.65 7 8.14
Other 9 10.47 2 2.33 9 10.47
Total 86 100% 86 100% 86 100%
Source: Questionnaire, 2019

Figure 4.5. Role of team work in enhancing job performance

41
Source: Questionnaire, 2019

Table 4.5 and Figure 4.5 show the role of team work in enhancing job performance. In
NIC Asia Bank out of the total respondents 53 respondent i.e. (61.63%) believed that
team work help in achievement of their personal as well as organizational goal, 18
respondents (20.93%) believed that team work leads to poor performance i.e.
individual is not aware of what work to do first and if any mistake occurs, employee
blame each other for that mistake. Similarly 6 respondent (6.98%) belived that there
is not team work at all in the banks and 9 respondent (10.47%) belived that team
work help in other aspects such as early completion of assigned task, efficiency of
work done with the help of team, etc.

In Nepal Bank Limited out of the total respondents, 68 respondents (79.07%)

believed that team work help in achievement of their personal as well as
organizational goal, 12 respondent i.e. 13.95% believed that team work leads to poor
performance Similarly 4 respondent (4.65%) belived that there is not team work at all
in the banks and 2 respondent (2.33%) belived that team work help in other aspect
such as early completion of assigned task, efficiency of work done with the help of
team, etc.

In Siddhartha Bank Limited, out of the total respondent 59 respondent (68.60%)

believed that team work help in achievement of their personal as well as
organizational goal, 11 respondent (12.79%) believed that team work leads to poor

42
Similarly 7 respondent (8.14%) respondent believed that there is not team work at all
in the banks and 9 respondent (10.47% ) respondent believed that team work help in
other aspects such as early completion of assigned task, efficiency of work done with
the help of team, etc.

4.1.6. Relationship with colleagues

Respondent were asked how is the relation with their colleagues in the banks. The

response of the respondent are presented in the table below:

Table 4.6. Relationship with colleagues

Relationship NIC Asia Percentage NBL Percentage SBL Percentag
with colleagues e
Good 45 52.33 63 73.26 40 46.51
Average 18 20.93 12 13.95 17 19.71
I cannot tell 23 26.74 11 12.79 29 33.72
Total 86 100 86 100 86 100
Source: Questionnaire, 2019

Figure 4.6. Relation with colleagues

Source: Questionnaire, 2019

43
Table 4.6. and Figure 4.6. show the relationship among the colleagues in banks. In
NIC Asia Bank Limited out of the total respondent 45 respondents (52.33%) said that
they enjoy a good relation with their colleagues, 18 respondent (20.93%) said that
they have average relation and 23 respondent ( 26.74%) said they don’t prefer to
answer this question.

In Nepal Bank Limited, out of the total respondent 63 respondent (73. 26%) said that
enjoy a good relation with their colleagues, 12 respondents (13.95 %) said that they
have average relation and 11 respondent (12.79 %) said they donot prefer to answer
this question.

In Siddhartha Bank Limited out of the total respondent 40 respondent (46.51%) said
that they enjoy a good relation with their colleagues, 17 respondents i.e. (19.71%)
said that they have average relation and 29 respondents (33.72%) said they donot
prefer to answer this question.

4.1.7. Motivational factor for employee at bank

The study was investigated the motivational factor for employees in sampled banks
because motivational factor have influence on the performance of employees. Once
these factors are provided to them, employees will be satisfied, committed, and be
loyal to the bank. This will result in providing good services to customers and hence
job performance.

Table 4.7 Motivation factor for employee

Motivation Frequency Percentages NBL Percentage SBL Percentage
Factor
Salary 44 51.16 28 32.56 43 50
Increment
Recognition 8 9.30 10 11.63 7 8.14
Employee 12 13.95 34 39.53 8 9.30
housing loan
Fringe 6 6.98 6 6.98 12 13.95
benefit
Promotion 16 18.60 8 9.30 16 18.60
Total 86 100 86 100 86 100
Source: Questionnaire, 2019

Figure 4.7. Motivation factor for employee

44
Source: Questionnaire, 2019

The study showed that 51.16% of respondents said that salary increment is a great
motivator for employees of NIC Asia Bank Limited, and it is the most important
package by ranking order. However, 18.60% of the respondents said that promotion is
a motivational factor to employees in NIC Asia Bank Limited; hence it is a the
second most preferred factor for employees of NIC Asia Bank Limited. Furthermore
9.30% of respondents said that recognition is motivational factor to employees of NIC
Asia Bank Limited and it is a third package preferred by the employees. The study
further showed that 6.98% of respondents said that fringe benefit is motivational
factor to employees and fourth factor in the order of priority. Similarly 13.95% of
respondents said that employees housing loan scheme is a motivational factor to
employees of NIC Asia Bank Limited and it is a fifth package in the order of priority.

In Siddhartha Bank Limited the study showed that 50% of respondents said that
salary increment is a great motivator for employees of Siddhartha Bank Limited and
also a most important package by ranking order. However, 18.60% of respondents
said that promotion is a motivational factor to employees in Siddhartha Bank Limited
hence it is a second most preferred factor for employees of Siddhartha Bank Limited.
Furthermore 8.14% of respondents said that recognition is motivational factor to
employees of Siddhartha Bank Limited and it is a third factor preferred by the
employees. The study further showed that 6.98% of respondents said that fringe
45
benefit is motivational factor to employees and fourth factor in order of priority.
Similarly 13.95% of respondents said that employees housing loan scheme is a
motivational factor to employees of Siddhartha Bank Limited.

4.1.8. Adequacy of motivational factor to employees of Bank

The study was examined the adequacy level of motivational factor to employees of
sampled bank. It is this level of motivational factor which determines the employee
performance in sampled banks. If the adequacy of these motivational factors are
accepted by employees, then the workers will be satisfied, committed to work, loyal
to the bank and will provide good customer care services to bank clients. This will
attract more customers and also to retain them; and hence, performance.

Table 4.8 Adequacy of motivational factor to employees

Respons NIC Asia Percentag NBL Percentag SBL Percentag
e e e e
Yes 58 63.16 72 83.72 80 93.02
No 32 36.84 14 16.28 6 6.98
Total 86 100 86 100 86 100
Source: Questionnaire, 2019

Figure 4.8. Adequacy of motivational factor to employees

46
Source: Questionnaire, 2019

The study showed that 63.16% of the respondents said that the motivational factor
they received are enough to motivate them to give their best to the bank. The study
also showed that 36.84% of the respondents said that motivational factors are not
enough to motivate employees of NIC Asia Bank Limited they suggested that
management of NIC Asia should stop motivating non performing employees and give
rewards to employees who really perform. However, employees of NIC Asia also
suggested that management should increase employees’ salaries hence recognition
and promotion should be given first priority.

At Nepal Bank Limited the study showed that 83.72% of the respondents said that the
motivational factors they received are enough to motivate them to give their best to
the bank. The study also showed that 16.28% of the respondents said that
motivational factors are not enough to motivate employees of Nepal Bank Limited
and suggested that management of Nepal Bank Limited should stop motivating non
performed employees and gives the rewards for employees who really perform the
gap between top management and low income earners. However, employees of Nepal
Bank Limited also suggested that management should increase employees’ salaries
hence recognition and promotion should be given first priority.

In regard Siddhartha Bank Limited the study also showed that 6.98% of the
respondents said that motivational factor are not enough to motivate employees of
Siddhartha Bank Limited and suggested that management of Siddhartha Limited

47
should stop motivating non performed employees and gives the rewards for
employees who really perform the gap between top management and low income
earners. However, employees of Siddhartha Bank Limited also suggested that
management should increase employees’ salaries hence recognition and promotion
should be given first priority.
4.1.9. Ways in which motivational factor influence employee of banks

The study was interested to identify the ways in which motivational factor influence
employees of banks.
Table 4.9 Ways in which motivational factor influence employee
Response NIC Percentag NB Percentag SBL Percentag
Asia e L e e
Early reporting to work 32 37.21 17 19.77 22 25.58
Staying on the job 16 18.60 8 9.30 10 11.63
Delight to customer 9 10.47 18 20.93 15 17.44
Inner satisfaction 22 25.58 16 18.60 32 37.21
Loyal to the bank 7 8.14 27 31.40 7 8.14
Total 86 100 86 100 86 100
Source: Questionnaire, 2019

Figure 4.9. Ways in which motivational factor influence employee

48
Table 4.9 and Figure 4. 9 shows that 37.21% of respondents said that motivational
factor available in the bank are influencing them to early reporting to work. However,
18.60% of respondents said that motivational factor are influencing them to stay on
the job. Furthermore, 10.47% of respondents were able to serve customer better
because of the influence of motivation factor available at NIC Asia Bank Limited.
Moreover, few respondents (25.58%) said that motivational factor influencing them
in way that they have inner satisfaction which makes them to perform. The study
further found that 8.14% of respondents said that motivational factor influence them
to be loyal to bank.

In regard to Nepal Bank Limited it shows that 19.77% of respondents said that
motivational factor available in the bank are influencing them to early reporting to
work. However, 9.30% of respondents said that motivational factor are influencing
them to stay on the job. Furthermore, 20.93% of respondents are able to serve
customers better because of the influence of motivation factor available at Nepal Bank
Limited. Moreover, few respondents which comprise of 18.60% said that motivational
factor influencing them in way that they have inner satisfaction which makes them to
perform. The study further found that 31.4% of respondents said that motivational
factor influence them to be loyal to bank.

With regard to Siddhartha Bank Limited it shows that 25.88% of respondents said that
motivational factor available in the bank are influencing them to early reporting to
work. However, 11.63% of respondents said that motivational factor are influencing
them to stay on the job. Furthermore, 17.44% of respondents are able to service
customer better because of the influence of motivation factor available at Nepal Bank
Limited. Moreover, few respondents which comprise of 37.21% said that motivational
factor influencing them in way that they have inner satisfaction which makes them to
perform. The study further found that 8.14% of respondents said that motivational
factor influence them to be loyal to bank.

4.10. Effects of motivational factor on work output

The study attempted to find out the effects of motivational factor on work output and
the result.

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 Table 4.10. Effects of motivational factor on work output
Response Frequency Percentage NBL Percentage SBL Percentage
Excellent 43 50 50 58.14 52 60.47
Very high 24 27.91 17 19.77 18 20.93
High 16 18.60 13 15.12 7 8.14
I cannot tell 3 3.49 6 6.98 9 10.47
Total 86 100% 86 100 86 100
Source: Questionnaire, 2019

Figure 4.12. Effects of motivational factor on work output

Source: Questionnaire, 2019

NIC Asia show that 50% of respondents said that the effects of motivational package
on work output is excellent. However, 27.91% of respondents said that the effects of
motivational factor on work output are very high. Other respondent which comprise
of (18.60%) said that the effects of motivational factor on work output are high. Few
respondents (3.49%) said that they are not sure about the effects of motivational
factor on employees work output. In Nepal Bank Limited the study shows that
58.14% of respondents said that the effects of motivational package on work output is
excellent. However, (19.77%) of respondents said that the effects of motivational
factor on work output are very high. Other respondents which comprise of 15.12%
said that the effects of motivational factor on work output are high. Furthermore, few
respondents which are (6.98%) said that they are not sure about the effects of
motivational factor on employees work output.

50
In Siddhartha Bank Limited the study shows that 60.47% of respondents said that the
effects of motivational package on work output is excellent. However, 20.93% of
respondents said that the effects of motivational factor on work output are very high.
Other respondents which comprise of 8.14% said that the effects of motivational
factor on work output are high. Furthermore, few respondents which are 10.47% said
that they are not sure about the effects of motivational factor on employees work
output.

4.11. Job Training

The study examined whether employees of sampled bank have accessibility to
training opportunities. Generally, training is a formal process by which a person
acquires knowledge, skills and competencies. Training helps employees to improve
expertise and contributing to the overall improvement within the organization.
Employees will be more loyal to the bank resulting in a reduction of employee
turnover, more motivated and experience a higher level of job satisfaction if offered
training and encourage improving their performance. However, training is the process
of acquiring specific skills to perform a job better. Training is used to qualify people
to perform in positions of greater difficulty and responsibility.

Furthermore training provide exposure on outside world on how things are done.

Table 4.11 Job Training

Response NIC Percentag NBL Percentag SBL Percentag
Asia e e e
Many times 17 19.77 5 5.81 6 6.98
Once 43 50 69 80.23 75 87.21
Twice 26 30.23 12 13.95 5 5.81
Total 86 100 86 100 86 100
Source: Questionnaire, 2019

Figure 4.11. Job Training

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Source: Questionnaire, 2019

The study shows that 19.77% of NIC Asia Bank Limited employees have attended
training many times. 50% of respondents had once accessed training and 30.23% of
respondents had twice participated on training.

During a face to face interview a researcher asked the respondents how often do they
offering job training to employees of NIC Asia Bank Limited, the branch manager
said that “job training is done every day in her office, she also said that training
schedule is available for customer service course to each staff at least one course per
year. Other courses according to her are offered on need basis after identifying staff
skills gap”. Other key informants also respond to that question and they said that,
“training is available in NIC Asia Bank Limited and it conducted on a yearly basis,
including other technical trainings as and when they are available”.

Study shows that 5.81% of Nepal Bank Limited employees have attended training
many times. 80.23% of respondents had once accessed training and 13.95% of
respondents had twice participated on training.

Study shows that 6.98 % of Siddhartha Bank Limited employees have attended
training many times. 87.21% of respondents had once accessed training and 5.81 % of
respondents had twice participated on training.

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4.12. Parameter addressed in the Bank
Respondent were asked whether above mentioned parameter were addressed in the
banks or not? The response of the respondent is presented in the table below.

Table 4.12 Parameter addressed in the bank

Respons NIC Asia Percentag NBL Percentag SBL Percentag
e e e e
Yes 58 63.16 72 83.72 80 93.02
No 32 36.84 14 16.28 6 6.98
Total 86 100 86 100 86 100
Source: Questionnaire, 2019

Figure 4.12. Parameter addressed in the bank

Source: Questionnaire, 2019

Table 4.12 and Figure 4.12 show whether parameters are addressed in the banks or
not. In NIC Asia out of the total respondent, 63.16% respondents were view that
above mentioned parameters were addressed in the bank and 36.84% were of view
that mentioned parameter were not addressed in the banks.

With regard to Nepal Bank Limited 83.72% of respondent were of view that the
above mentioned parameter were addressed in the banks and 16.28% respondent
were of view that mentioned parameter were not addressed.

53
Similarly in Siddhartha Bank Limited, 93.02% of respondent were of view that
above mentioned parameter were addressed in the bank and 6.98% respondents were
of view that mentioned parameter were not addressed in the banks.

CHAPTER-V

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1. Summary
Human resource management and the managers of the bank are the main responsible

person for the motivation of the employee. Human resource management is

enormously important when dealing with the employee of the bank. It needs to

54
understand the employees and develop motivational tool according to the need of the

situation and check if the tool is applicable or not. Managers are the ones who practice

the given tool. So motivating the employee depends upon manager, by creating work

friendly environment according to the need of the employee.

Motivation is an effective technique that helps the employee to build commitment

towards their work. Motivation not only creates willingness towards the job, it also

helps in effective performance of the employee. Spending the capital, time, resource

on the motivation is a huge investment. Employee show the outcome of the

motivation through their performance. Motivation should be sustained over a period.

Due to this, the bank can retain its employees for a longer period of time and

employee turnover is low.

People seek security and try to fulfill underlying needs which are fundamental to

people’s existence. After these needs are satisfied, people will focus more on job

performance. People also look for the social systems, so the sociability aspect of

effective organization cannot be neglected. Personal growth too is important to people

as self-actualization and the need for the achievement and growth are very powerful

needs that influence the development of effective organization.

For the motivation of the employees various organizational cultures could be

developed and instilled within the banking industry. Various benefit program can be

provided to the employees, and changes can be made in the working environment

which directly affects the employee. Manager need to be aware of the theories related

to the employee motivation and need to understand what is the purpose that employee

are working in the industry: is it for money, for achievement, competence which may
55
provide guidelines for the motivation of the employee. So manager too must be

capable to motivate the employee working in the organization.

Employee working in the organization may possess various degrees of motivation.

Different factors of motivation may bring the deviation among the employees

working in the organization. Some may be motivated by the appreciation and

recognition, some by leadership style, others by additional responsibility. So various

employee have various factors of their motivation. Manager needs to these factors to

motivate the employees.

Motivation is the psychological process of creating the positive willingness among

employees towards their work. Since its psychological process, each and every

employee needs to be understood which may be difficult if not impossible. So

motivation is the challenging task since factor of motivation are different according to

the person.

5.2. Conclusions
Most of the employees working in sampled banks were active age group. The study

showed that 63.16% of the respondents said that the motivational factor they received

are enough to motivate them to give their best to the bank. The study also showed that

36.84% of the respondents said that motivational factors are not enough to motivate

employees of NIC Asia Bank Limited they suggested that management of NIC Asia

should stop motivating non performing employees and give rewards to employees

who really perform. However, employees of NIC Asia also suggested that

management should increase employees’ salaries hence recognition and promotion

56
should be given first priority. At Nepal Bank Limited the study showed that 83.72%

of the respondents said that the motivational factors they received are enough to

motivate them to give their best to the bank. The study also showed that 16.28% of

the respondents said that motivational factors are not enough to motivate employees

of Nepal Bank Limited and suggested that management of Nepal Bank Limited

should stop motivating non performed employees and gives the rewards for

employees who really perform the gap between top management and low income

earners. However, employees of Nepal Bank Limited also suggested that management

should increase employees’ salaries hence recognition and promotion should be given

first priority. In regard Siddhartha Bank Limited the study also showed that 6.98% of

the respondents said that motivational factor are not enough to motivate employees of

Siddhartha Bank Limited and suggested that management of Siddhartha Limited

should stop motivating non performed employees and gives the rewards for

employees who really perform the gap between top management and low income

earners. However, employees of Siddhartha Bank Limited also suggested that

management should increase employees’ salaries hence recognition and promotion

should be given first priority.

NIC Asia show that 50% of respondents said that the effects of motivational package

on work output is excellent. However, 27.91% of respondents said that the effects of

motivational factor on work output are very high. Other respondent which comprise

of (18.60%) said that the effects of motivational factor on work output are high. Few

respondents (3.49%) said that they are not sure about the effects of motivational

factor on employees work output. In Nepal Bank Limited the study shows that

58.14% of respondents said that the effects of motivational package on work output is

57
excellent. However, (19.77%) of respondents said that the effects of motivational

factor on work output are very high. Other respondents which comprise of 15.12%

said that the effects of motivational factor on work output are high. Furthermore, few

respondents which are (6.98%) said that they are not sure about the effects of

motivational factor on employees work output. In Siddhartha Bank Limited the study

shows that 60.47% of respondents said that the effects of motivational package on

work output is excellent. However, 20.93% of respondents said that the effects of

motivational factor on work output are very high. Other respondents which comprise

of 8.14% said that the effects of motivational factor on work output are high.

Furthermore, few respondents which are 10.47% said that they are not sure about the

effects of motivational factor on employees work output. The study shows that

19.77% of NIC Asia Bank Limited employees have attended training many times.

50% of respondents had once accessed training and 30.23% of respondents had twice

participated on training.

During a face to face interview a researcher asked the respondents how often do they

offering job training to employees of NIC Asia Bank Limited, the branch manager

said that “job training is done every day in her office, she also said that training

schedule is available for customer service course to each staff at least one course per

year. Other courses according to her are offered on need basis after identifying staff

skills gap”. Other key informants also respond to that question and they said that,

“training is available in NIC Asia Bank Limited and it conducted on a yearly basis,

including other technical trainings as and when they are available”.Study shows that

5.81% of Nepal Bank Limited employees have attended training many times. 80.23%

of respondents had once accessed training and 13.95% of respondents had twice

58
participated on training. Study shows that 6.98 % of Siddhartha Bank Limited

employees have attended training many times. 87.21% of respondents had once

accessed training and 5.81 % of respondents had twice participated on training.

In NIC Asia out of the total respondent, 63.16% respondents were view that above

mentioned parameters were addressed in the bank and 36.84% were of view that

mentioned parameter were not addressed in the banks. With regard to Nepal Bank

Limited 83.72% of respondent were of view that the above mentioned parameter

were addressed in the banks and 16.28% respondent were of view that mentioned

parameter were not addressed. Similarly in Siddhartha Bank Limited, 93.02% of

respondent were of view that above mentioned parameter were addressed in the bank

and 6.98% respondents were of view that mentioned parameter were not addressed in

the banks.

Moreover the study concluded that managers and supervisors should be fair and

careful when measuring employees’ job performance because in many organizations

job performance is measured by supervisory ratings, and these ratings are highly

subjective.

5.3. Implication and recommendation

The study has implication towards managers and supervisors that they should be fair

and careful when measuring employees’ performance. Job performance is measured

by supervisory ratings and these ratings are subjective in nature. Any form of biasness

and errors should be avoided by managers and ensure that employees are rewarded

accordingly as well as checking the performance management and reward system for

equity.
59
Managers should always embark on continuous incentives and reward programs to

their staffs and this should include personal acknowledgement by letter or emails to

staffs. This will encourage staff to work effectively and that will help managers to

achieve their branches or department targets and hence bank performance.

Management must take action to improve performance of employees by using

appropriate management styles to optimize motivation, develop positive work

climate, provide technology and resources needed to meet performance expectations,

use job rotations and empowerment , and trainings to employees.

The finding also has implication to employers that they must know what motivates

their employees. This is because the each employee reacts differently to motivational

factors. Some employees are more intrinsically while others are more extrinsically

motivated.

Based on the findings of the study and the opinion of the researcher, it is

recommended that:

Management should approve new motivational packages which influence

performance at the bank. Sales employees and credit officers can be given car loan to

motivate them to stay longer in the office because their work involves a lot of visiting

customers outside the office.

Motivation, as a part of a reward, can be promoted by exposing employees to

challenges and giving employees more responsibility. However, when employees

have done a good job, particularly when they have succeeded in a challenging

assignment, nearly all want to be recognized for doing so. When this does not occur,
60
the result often is de-motivating. But, when honestly and genuinely offered by

supervisors and other management, praise for a job well done and recognition can be

one of the greatest motivator.

Management should continue to improve and build brand image of the bank by

renovating other branches in order to improve the working environment for their

staffs and customers. The bank can do public relations through corporate social

activities as well as informing the public about NIC Asia and its products through

media.

Promotion is another key area where the bank should focus in order to improve job

performance. Currently promotion rate from one level to another is very low, and

analysis indicates that promotion is likely to happen after 4-5 years after joining the

company. Promotion raises the status of the employees who receive promotion within

organization.

The study further recommends that the bank should provide/offer a housing loan

scheme to its employees as one of motivating factor to their job performance. Housing

loan scheme is necessary to bank staffs so as to improve the life standard of its

workers which in the end is the best reward to the employees. Indeed, housing loan

has long repayment period thus it will help to retain employees as well as promoting

morale to the work performance.

A researcher recommends that the management of banks should invest more on staff

trainings. This should include equipping staff with the knowledge of the bank itself,

the products offered, and standard operating procedures. By doing this, staffs will be

emotionally motivated and can work confidently.

61
The bank should adopt an updated performance measurement tools like Balanced

Score Card. This will enable fair and open rewarding programmes for employees who

perform better than others.

It is a high time now for the bank to provide company shares equally to each

employee at a reasonable rate. This will enable them to have a state of bank

ownership and hence motivated to work more efficiently towards the success of the

bank which they also own part of it

APPENDICES

Dear respondents.
I am Manoj Kumar Yadav pursuing Master of Human Resources Management at

Zenith International College, Faculty of Human Resource Management. Kindly would

you please take a few minutes to complete the following questionnaire by filling

space provided or tick /comment for anything that you have, which you think can help

me in my research. The research questionnaires have been prepared in order to

facilitate the collection of Data for the research on EMPLOYEE MOTIVATION IN

BANKING SECTOR. The research is a partial fulfillment of the requirements for the

award of MBA degree in Human Resources Management (MHRM) degree provided

by Purwanchal University.

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A. Personal Information of Respondent

1. What is your name?

………………………………………………………………………………………
2. What is your occupation?
………………………………………………………………………………………

3. What is your designation at Bank ?

………………………………………………………………………………………
4. What is your age? Tick one.
(i) Between 18-27 (ii) Between 28-37
(iii) Between 38-47 (iv) Between 47-57

5. What is your education?

(i) S.L.C. (ii) +2 (iii) Bachelor Degree (iv) Master’s Degree

B. Job Related
6. How long have you working?
(i) 0-5 (ii)6-10 (iii)11-15 (iv) Above 15

7. Do you have team work in your bank?

(i) Yes (ii) No

8. What is the role of team work in enhancing job performance ?

(a) Achievement (b) Poor performance (iii) No team work (iv) Other

9. How is your relationship between your colleagues?

(i) Good (ii) Average (iii) I cannot tell

10. How is your relationship between your seniors?

(i) Good (ii) Average (iii) I cannot tell

C. Salary related

11. What are the motivational factor for employees at your bank?
(i) Salary increment (ii) Recognition (iii) Promotion

63
(iv) Fringe benefits (v) Employees housing loan scheme

12. Do you think these factor are adequate enough to motivate employee to give
out of their best work places?
(i) Yes (ii) No

13. In what way do this factor influence you?

(i) Early reporting to work (ii) Delight to customer
(iii) Inner satisfaction (iv) Loyal to the bank
14. What are the effects of these factor on your work output?
(a) Excellent (ii) Very high (iii) High (iv) I cannot tell

D. Training and development related

15. How often do you go for job training?

(i) Many times (ii) Once (iii) Twice (iv) Never

16. Why training and development is necessary in an organization? Give your

opinion
……………………………………………………………………………………..

17. How does training and development motivate you to work in this
organization? Give your opinion
……………………………………………………………………………………
E. Others

18. Do you think these parameter are being addressed in the banks ?

(a) Yes (b) No

19. If yes, to what extent it is being addressed ?

(a) Excellent (b) Poor (c) Satisfactory

20. In your opinion can these issues be taken care of ?

…………………………………………………………………..

Thank you for your Participation

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