GROUP ASSIGNMENT

CASE STUDY OF PUBLIC BANK BERHAD: EXAMINING THE NEXUS OF

EMPLOYEE MOTIVATION, EMPLOYEE BENEFIT, AND EMPLOYEE
SATISFACTION

LENAKA A/P VADIVALU PBS22305177

CHONG JIA JUN PBS22305175

SIEW RUN SHENG PBS22305186

ORGANIZATIONAL BEHAVIOUR HPM7102E

PROF. DR. SAZALI BIN ABD WAHAB
PUTRA BUSINESS SCHOOL (UPM)

04 DECEMBER 2023
Table of Contents
PART 1 CASE DESCRIPTION
1.1 Introduction...........................................................................................................................1
1.2 General company Background.............................................................................................1
1.2.1 Mission..........................................................................................................................1
1.2.2 Philosophy.....................................................................................................................1
1.2.3 Business Strategy and Focus Ares.................................................................................2
1.2.4 Operation.......................................................................................................................2
1.2.5 Product or services offered............................................................................................2
1.2.6 Management Team & Company Structure....................................................................3
1.2.7 Financial Overview.....................................................................................................10
1.3 Industry Overview..............................................................................................................10
1.4 Competition and Market Environment...............................................................................10
1.5 Specific Area of Interest.....................................................................................................10
1.6 Specific Problem or Decision.............................................................................................11
PART 2 CASE STUDY ANALYSIS
2.1 Introduction on Case Study................................................................................................12
2.2 Problem definition and recognition....................................................................................12
2.2.1 Employee Motivation..................................................................................................12
2.2.2 Employee Benefit........................................................................................................15
2.2.3 Employee Job Satisfaction..........................................................................................20
3.1 Recommendation................................................................................................................23
3.1.1 Employee motivation..................................................................................................23
3.1.2 Employee Benefit........................................................................................................24
3.1.3 Employee Satisfaction.................................................................................................24
4.1 Conclusion..........................................................................................................................25
5.1 References...........................................................................................................................26
List of Figure
Figure 1: Board of Directors............................................................................................................3

Figure 2: Heads of Division of Public Affairs, Corporate Banking/ Credit Operations/ HP

Operations, Retail Financial Services and Knowledge & Learning 4

Figure 3: Heads of Division Internal Auditor, Human Capital Management, Financial Officer and
General Manager, Credit Administration & Supervision 5

Figure 4: Heads of Division HP Supervision, Information Technology, Wealth Management &

Transaction Banking, and Credit Operations 6

Figure 5: Heads of Division Risk Officer, Corporate Banking, Compliance Officer, and PB Card
Services & Support 7

Figure 6: Heads of Division HP Operations, Security, Treasury and Corporate Planning,

Economics & Sustainability Management 8

Figure 7: Heads of Division Overseas Operations, Property, Banking Operations, Branch

Business Review & Support/Trade Finance & Share Investment Centre and Secretariat 9
Figure 8: Herzberg’s Motivation-Hygiene Theory........................................................................13
Figure 9: Gender Diversity at Public Bank....................................................................................15

List of Table
Table 1: Public Bank Bhd Emloyee Benefit .................................................................................18

Table 2: Public Bank Bhd Employee Satisfaction from Jobstreet, Glassdoor 22

List of Chart
Chart 1: Public Bank Bhd Traning investment PY2018-PY2022.................................................20
 1

PART 1 CASE DESCRIPTION

1.1 Introduction

Public Bank is a financial institution that plays a crucial role in the economic development of a
country. The organizational behavior within Public Bank encompasses the study of how
individuals, groups, and structures interact and influence the overall functioning and
performance of the bank. It involves understanding the dynamics of human behavior within the
organization. This case study examines on organizational behavior topics related to employee
motivation, employee benefit and employee satisfaction in Public Bank Berhad. By scrutinizing
the current state of these factors, this study aims to offer constructive recommendations that can
contribute to the continuous growth and success of the bank.

1.2 General company Background

Public Bank was founded in 1966 by the late Tan Sri Dato’ Sri Dr. Teh Hong Piow. On 6 August
1966, Public Bank started its business at its first branch, which was located at Jalan Gereja,
Kuala Lumpur. With its vision as a ‘bank for the people’, Public Bank started providing banking
services to the masses in Malaysia. On 6 April 1967, Public Bank was listed on Bursa Malaysia.

1.2.1 Mission

To sustain the position of being the most efficient, profitable and respected premier financial
institution in Malaysia
1.2.2 Philosophy

Public Bank Cares: -

 For its customers
 By providing the most courteous and efficient service in every aspect of its business
 By being innovative in the development of new banking products and services
 For its shareholders
 By forging ahead and consolidating its position as a stable and progressive financial
institution
 By generating profits and a fair return on their investment
 For its employees
 By promoting the well-being of its staff through attractive remuneration and fringe
benefits
 By promoting good staff morale through proper staff training and development and
provision of opportunities for career advancement
 For the community it serves
 By assuming its role as a socially responsible corporate citizen in a tangible manner
 By adhering closely to national policies and objectives thereby contributing towards
the progress of the nation
………With Integrity
 2

1.2.3 Business Strategy and Focus Ares

Strategic Focus
 The Public Bank Group pursues synergistic growth in the retail banking business,
focusing on domestic consumer banking and SME lending
Strategic Direction
 Delivering sustainable returns to shareholders
 Increase profitability by focusing on areas of strength such as synergistic growth, cost
discipline, preservation of asset quality and upholding strong corporate governance.
 Enhance capital strength and risk management as well as strict compliance with
regulatory requirements.
 Maintain strong external credit ratings by domestic and international rating agencies.
 Enhancing customer experience
 Solidify customer loyalty and trust through strong data security, ethical banking and
upholding high service quality.
 Embrace digital transformation to meet evolving needs of customers.
 Developing employees
 Build capabilities for the future by nurturing talents, promoting diversity and
inclusion as well as supporting employees’ health, safety and well-being.
 Supporting the communities
 Expand financial inclusion and support community’s financial needs.
 Nurture future generation for national development.
 Strengthen communities through volunteerism and charitable donations.
 Support transition to a climate resilient future.

1.2.4 Operation

 Domestic Operations
 Public Bank Berhad (“Public Bank”)
 International Operations
 Public Financial Holdings Limited (“PFHL”)
 Cambodian Public Bank Plc (“Campu Bank”)
 Public Bank Vietnam Limited (“Public Bank Vietnam”)
 Public Bank Laos Operations
 Public Bank Sri Lanka Operations

1.2.5 Product or services offered

 Deposit Products
 Loan and Credit Products
 Investment Products
 Wealth Management Services
 Electronic Banking Services
 International Banking
 3

 Insurance Products
 Treasury and Capital Market Services
 Corporate and Business Banking Services
 Specialized Services

1.2.6 Management Team & Company Structure

Figure 1: Board of Directors

 4

Figure 2: Heads of Division of Public Affairs, Corporate Banking/

Credit Operations/HP Operations, Retail Financial Services
and Knowledge & Learning
 5

Figure 3: Heads of Division Internal Auditor, Human Capital

Management, Financial Officer and General Manager,
Credit Administration & Supervision
 6

Figure 4: Heads of Division HP Supervision, Information Technology,

Wealth Management & Transaction Banking, and Credit Operations
 7

Figure 5: Heads of Division Risk Officer, Corporate Banking,

Compliance Officer, and PB Card Services & Support
 8

Figure 6: Heads of Division HP Operations, Security, Treasury and

Corporate Planning, Economics & Sustainability Management
 9

Figure 7: Heads of Division Overseas Operations, Property, Banking

Operations, Branch Business Review & Support/Trade Finance &
Share Investment Centre and Secretariat
 10

1.2.7 Financial Overview

Public Bank’s vision continues to shape its resilient business model, steering its success story
and track record of unbroken profitability for 56 consecutive years. Net Profit RM6.12 billion.
Public Bank’s total asset size stood at RM493.26 billion and is the second largest company listed
on Bursa Malaysia with total market capitalization of RM83.85 billion as at the end of 2022.
The Public Bank Group is highly reputed for its stellar performance, especially in sustaining its
highest return on equity, most efficient cost to income ratio and the best asset quality among
domestic banks.

1.3 Industry Overview

Public Bank is a player in the financial services and banking industry. Among the biggest and
most well-known banks in Malaysia is Public Bank. In the retail, corporate, and Islamic banking
sectors, it is highly prevalent. The bank is known for its cautious risk management procedures,
attentive customer care, and sound financial standing. With a large presence in retail banking,
Public Bank provides a variety of goods and services to individual clients. Savings accounts,
fixed deposits, credit cards, personal loans, and online banking services fall under this category.
In order to meet the needs of businesses, Public Bank offers a range of services to its corporate
clients, such as trade financing, cash management, business loans, and other financial solutions.
For clients who prefer Islamic finance concepts, Public Bank features an Islamic banking section
that provides financial products and services that are compliant with Shariah. Interest rates,
general market health, and the state of the economy all have an impact on Public Bank's financial
performance. Keeping an eye on the bank's quarterly updates, yearly reports, and financial
statements might provide information about its performance and strength.

1.4 Competition and Market Environment

In Malaysia, there are a number of competitors for Public Bank in the banking and financial
services industry. Maybank (Malayan Banking Berhad), CIMB Group, RHB Bank, Hong Leong
Bank, and AmBank Group are a few of the main rivals. Numerous factors, including the state of
the economy, have an impact on Public Bank's market environment. The demand for banking
services may be impacted by Malaysia's overall economic situation, which includes variables
like GDP growth, inflation, and employment rates. Additionally, interest rates. The profitability
of banks can be impacted by changes in interest rates set by Bank Negara Malaysia, which can
have an impact on lending and deposit rates. Additionally, the regulatory environment.
Regulations governing the banking industry in Malaysia are prone to change, and these changes
may have an effect on the way banks conduct business, handle risk, and provide services.

1.5 Specific Area of Interest

Public Bank, being one of the largest and most prominent banks in Malaysia, traditionally has a
strong emphasis on retail banking, corporate banking, and Islamic banking. Some specific areas
of interest and focus might include retail banking, corporate banking, islamic banking, digital
banking, risk management and customer service and experience.
 11

1.6 Specific Problem or Decision

Employee Motivation
Employee motivation is crucial in organization as it directly influences various aspect of
organization performance and success. Motivated employee able to increase organization
reputation, workplace culture, job performance, innovation, creativity and so on. Organization
with highly motivate employee will go beyond than its competitors. This study target in explore
the key driver of employee motivation in Public Bank Berhad.
Employee Benefit
Benefits and rewards play an important role to activated employee motivation. Organization that
cares about employees often provide benefits and rewards that fulfill employees needs and
expectations. Well-designed benefits package not only create advantage to employee but also
employer. One of the aims for this study is to examine employee benefits and rewards that
enhance motivation level of Public Bank Berhad base on organizational annual reports, articles,
and research papers.
Employee Satisfaction
Employee satisfaction is important in organizations as it impact organization functioning.
Organization able to retain its talents, productivity, customer satisfaction and employee relations
through examine employee satisfaction. Organization that actively enhance employee
satisfaction are better position to build positive image and culture. This study also targets to
examine employee satisfaction in Public Bank Berhad.
 12

PART 2 CASE STUDY ANALYSIS

2.1 Introduction on Case Study

Organizational behaviour is the study of how individuals and groups act within an organization
(Putra et al., 2022). This field aims to understand human behaviour in a work setting. However,
understanding human behaviour is a complex task due to the unique and diverse characteristics
of each individual. Organizational behaviour is a broad field of study that draws upon theories,
methods, and principles from various disciplines to examine how individuals perceive and act
within groups and the organization as a whole (Utaminingsih, 2014). Organizational behaviour is
an evolving field of study that provides organizations with valuable insights into improving
employee productivity. This study examines the relationship between Public Bank Berhad's
employee engagement initiatives and organizational behaviour, providing recommendations to
optimize employee satisfaction and overall organizational success.
2.2 Problem definition and recognition

2.2.1 Employee Motivation

Maintaining employee motivation is crucial for fostering a positive work environment and
maximizing productivity. Different individuals respond to various motivational factors, with
some being primarily driven by financial incentives while others find recognition and rewards
more compelling. The level of employee motivation directly correlates with workplace
productivity. Motivated and engaged employees are more likely to perform their duties to the
highest standards, leading to increased output and overall organizational success. Motivating
employees has always been a key challenge for leaders and managers. Unmotivated employees
may exhibit low effort, avoid work, seek opportunities to leave the organization, and produce
low-quality work. Conversely, motivated employees are more likely to be persistent, creative,
and productive, delivering high-quality work with enthusiasm. Numerous research on motivation
highlights the importance of understanding individual employee needs and tailoring motivational
strategies accordingly. Employers should strive to foster deep connections with their employees
to effectively address their unique aspirations and drive performance.

Organizations across various industries and sizes endeavour to establish strong and positive
relationships with their employees. According to Maslow (1943), human needs are arranged in a
hierarchy, with physiological needs at the base, safety needs at the second level, love and
belonging needs at the third level, esteem needs at the fourth level, and self-actualization needs
at the top. Individual main concerns at the lower levels are necessities for survival such as food,
water, and shelter. Even though they are necessary for life, these needs are reasonably easy to
meet. As ascending the hierarchy of needs, the obstacles to satisfying the needs at each level
become more complex and challenging due to the interpersonal conflicts and environmental
limitations that we encounter (Mcleod, 2023).

Among the numerous theories of work motivation, influenced by Maslow’s theory, Herzberg's
(1966) two-factor theory stands out for its enduring influence. The theory categorizes motivating
factors into two distinct groups which included motivator factors that are intrinsic factors to the
 13

work itself and contribute to employee satisfaction. They include achievement, recognition,
responsibility, and the opportunity for personal growth. Hygiene factors are extrinsic factors to
the work and relate to the work environment. They include salary, benefits, company policies,
supervision, and work relationships. According to Herzberg, the absence of hygiene factors leads
to dissatisfaction, while their presence prevents dissatisfaction but does not necessarily lead to
satisfaction. For instance, an employee earning below the minimum wage is unlikely to
experience motivation until their compensation aligns with a perceived fair standard. Conversely,
a pay raise for an already well-paid employee would not have a lasting motivational impact.
Similarly, Danish et al, (2010) stated human resources are the most crucial factor in a company's
success, as they provide the skills, knowledge, and creativity needed to innovate and outperform
competitors.

(Source: https://www.simplypsychology.org/herzbergs-two-factor-theory.html#FAQs)

Figure 8: Herzberg’s Motivation-Hygiene Theory

Kamalian (2010) mentioned motivated employees work towards the same goals as their
organization, which leads to success for both parties. These employees are always looking for
ways to improve their work, even when things are tough. Organizations can help employees
reach their full potential by motivating them. Effective managers recognize the diverse
motivations that drive employees and strive to create a work environment that fosters and
nurtures those motivations. While managers cannot directly control employee motivation, they
can cultivate a culture that encourages engagement, growth, and a sense of purpose, leading to a
workforce that is intrinsically driven to achieve success (Ganta, 2014).

According to Public Bank Bhd FY2022 report, Public Bank Group adheres to all relevant laws
and regulations concerning fair labour practices, eliminating forced and child labour, and
safeguarding employee rights. Moreover, Public Bank Group actively monitors and keeps pace
with the latest advancements in employment, industrial relations, and human rights legislation
within the communities it serves. The Public Bank Group prioritizes employee well-being and
fosters a supportive work environment that extends beyond physical comfort, recognizing the
 14

importance of a holistic approach that encompasses personal aspirations and professional

responsibilities to create a sustainable and positive work experience.

Public Bank Group's dedication to fostering an exceptional workplace has been recognized once
again, earning the prestigious title of "Top 3 Best Employer in the Banking Sector" for the fifth
year running in the "2022 Graduates' Choice Award." (Graduates’ Choice Award, 2023) This is
due to the Public Bank Group committed to hiring fresh graduates and providing them with the
training and development they need to become successful employees. Over the past three years,
the Group has employed a total of 2,677 management trainees, demonstrating its commitment to
supporting the country's employment growth.

Public Bank is devoted to providing a positive onboarding experience for new employees. The
Support, Engage, Empower, and Develop ("SEED") program provides trainees with the
necessary support and guidance as they learn to adapt to the new working environment and
culture. In the SEED program, each trainee is assigned a Talent Development Partner ("TDP")
who acts as an advisor and mentor. The TDP provides trainees with personalized support and
guidance throughout their learning journey. Public Bank Group's SEED program fosters a culture
of open communication by encouraging feedback from both trainees and their TDPs. This two-
way feedback mechanism ensures that trainees receive the support and guidance they need to
succeed, leading to a remarkable retention rate of 78.8% for management trainees in 2022.

Memon et al. (2017) findings highlighted a notable correlation between workplace gender
inequalities and a downward trend in job satisfaction and motivation among female employees.
However, gender inequality does not occur in Public Bank Bhd and is supported by strong
evidence. All employees at Public Bank Group are afforded equal opportunities for career
advancement, performance assessment, and remuneration, regardless of their gender, race, or
age. In 2022, they promoted 741 male employees and 1,001 female employees. Additionally,
taking male employees as the reference point, the gender pay gap for female employees was 0.1
points lesser than the male index, demonstrating Public Bank Group's commitment to gender
equality in the workplace. In terms of female employee representation, they account for close to
50% of managerial and executive positions within the Public Bank Group's domestic operations.
 15

(Source: Public Bank 2022 Annual Report)

Figure 9: Gender Diversity at the Public Bank Group

Public Bank is committed to empowering its employees to achieve remarkable results. Public
Bank uses a variety of incentives to motivate its employees, including cash rewards, eVoucher,
and material gifts. The Group also offers referral cash incentives for successful policy
implementation to encourage cross-selling initiatives among branches. The Group has launched a
series of compelling campaigns to fuel their motivation and incentivize them to reach new
heights:

 2022 Up-Forcing Incentive for Bancassurance Financial Executive and Rookie: This
incentive program recognizes and rewards both experienced and new bancassurance sales
executives for exceptional performance.
 2022 Branch Regular Premium Challenge: This challenge promotes friendly competition
among branches, motivating sales teams to generate regular premiums on a consistent
basis.
 Incentive Trip Challenge 2022: This exciting challenge provides high-performing sales
executives with the opportunity to earn a rewarding incentive trip, fostering an
aspirational and excellence-oriented culture.

The incentive programs at Public Bank demonstrate a comprehensive and well-structured

approach to employee motivation. The Group effectively cultivates a culture of excellence and
drives its employees to reach new heights by recognizing individual and team achievements,
encouraging friendly competition, and providing aspirational rewards.

2.2.2 Employee Benefit

Employee benefit is the compensation package employer offers to employees besides to their
salary. The purpose of employee benefits is to attract talent and motivate employees. Company
with a good employee benefit is able to retain its employee and maintain a positive image.
According to Jon-Chao Hong et al. (1995), companies offer different types of employee benefits
according to individual position, status, gender, education level and job performance. Based on
the study, employee benefit has a significant impact on employee motivation. Employees are
more valued on monetary benefit programs, such as bonus and pension. However, high education
employees focus on psychological benefits, while low education employees focus on physical
benefits. Besides that, the study highlighted the difference in benefit demand between male and
female employees. Female employees are concerned about leave systems such as maternity leave
and family leave but male employees are concerned about career development, loan, and training
programs.
 16

Burton T. Beam (2001) provides a narrow and broader definition to employee benefit. Narrow
benefit defines employee benefit with benefits for retirement, death, accident or sickness. The
absence of other incentives caused redefine of employee benefits in a broader term, which
include all benefits and services provided by employer to employee. There are five basic
categories of employee benefit as following:

1. Social insurance, include:

 Medicare
 Social security
 Health Insurance
 Disability insurance
2. Private insurance and retirement plan, include:
 Medical and dental
 Disability income
 Old age
 Death
3. Leaves and holidays, includes:
 Vacation leaves
 Medical leaves
 Maternity leaves
4. Allowance, include:
 Educational allowance
 Training and development allowance
 Bonus
 Saving plan
 Shares
 Profit sharing program
5. Additional benefits, include:
 Transportation benefits
 Clothing benefits
 Amenities and facility
 Day care room/ gym room

One of the studies emphasised that benefits belong to the form of indirect compensation which is
recorded in accounting and tax purposes. Employees view benefit as an integral component of
the whole compensation package. Managers share a similar perspective on compensation, but
differentiate between the direct and indirect cost of offering benefits. Direct compensation is the
benefit in the form of cash regardless of long term or short-term team, while indirect benefit
refers to non-cash benefit. The study also presents an extensive perspective on benefit definition
which include two categories, discretionary employee benefit and non-discretionary employee
benefits (Robert Klonoski, 2016). Discretionary employee benefits are benefits that are not
required by legal mandate such as remote work, flexible schedule, additional vacation leaves.
These benefits are not compulsory and often used as a strategic tool to attract and retain top
talent. Non-discretionary employee benefits are legally mandated or stated by employment law
 17

such as Social Security Organization (SOCSO) contribution, Employees Provident Fund (EPF)
contribution.

In today's world, companies offer attractive employee benefits to motivate employees and
achieve employee satisfaction. Employees no longer only pay attention for high salary but also
concern for non-monetary benefits (Pek-Greer P. et al., 2016). Employees evaluate compensation
packages based on individual priority. This affects employee decisions to stay or move from the
organization. In addition, it is important for companies to identify employee dissatisfaction
within the workforce. Identifying the reasons for employee dissatisfaction enables businesses to
maintain positive culture and performance. (Nemeckova I., 2017)

Similar practices established in Public Bank Bhd, the company implements a series of employee
benefits to increase employee satisfaction. Base on Public Bank Bhd FY2022 report, employee
benefit as following:

Table 1 – Public Bank Bhd Employee Benefit

Benefit Benefit Type Benefit Details Description
Category
Social Financial SOCSO Public insurance program
insurance
Private Medical coverage Covering for eligible employee
insurance immediate family
 18

Leaves and Non-financial Maternity leave 180 days maternity leave, include of 98
holidays days full paid and extended maternity
leave to a maximum of 82 days with
half-pay

Paternity leave 5 days for male employee with new

born baby
Marriage leave 10 days for new couple
Study and Offer for employees who pursue
examination leave professional qualification
Compassionate Provide for incident such as floods,
leave critical illness and death of family
members
Additional leave For employee to meet their personal
aspirations
Allowance Financial Child care Provide for eligible employee with
allowance children
Additional Non-financial Lactation Offer in head office to provide space
benefits facilities for working mother
Financial In-house clinic Offer in head office to provide on-site
healthcare service
Financial Assistance of loan moratorium for
allowance employee affected by natural disasters
Festive advance Zero interest rate for employees of
scheme corresponding region
Special loan For the expenses of computer, medical,
scheme funeral, house renovation, study
Special interest Mortgage, vehicle, electric vehicle
rate

Public Banks conduct regular reviews of employee benefits to ensure sustainable practice
relevance to employee needs. Among the key benefits, we can conclude that Public Bank is
generous in providing financial and leave support to their employees. The company offers
diversified monetary support from personal to immediate family members to reduce employee
financial burden. Besides that, offering substantial leave enables employees to spend valuable
time with personal and family members. Referring to Public Bank FY2021 and FY2022 financial
statements, the group increased employee benefit expenses from RM79 million in 2021 to
RM158 million in 2022. Total of 98% hike in employee benefit expenses within a year reflect
the bank commitment to invest in talent.
 19

Apart from that, Public Bank also focuses on continuous training. From FY2018 to FY2022, the
bank spent total expenditure around RM40 million to RM54.7 million on training and
development in Malaysia. Training investment reached the peak of RM54.7 in FY 2019 and
decreased to RM42 million and RM40 million in FY2020 and FY2021 respectively. This is due
to Covid-19 pandemic movement restriction limiting organization activity. The bank has
continued to invest on training in FY2022, the amount continues to grow to RM50 million. In
FY2022, the average training budget of one employee was around RM3,485 and 98% of
employees achieved a minimum of 5 days training. Average hours of training per employee was
60 hours which increased 10 hours compared to the previous year. Training and development
program develop by Public Bank can be classified as following:

 Learning focus
 Problem solving
 Digital risk and governance
 Building network and social capital
 Data driven and decision making
 Critical thinking
 Executive development
 Strategic thinking
The bank offers different types of training to meet each employee's availability such as
classroom training, virtual training and e-learning. Public bank also collaborates with
professional entities and certificate providers including International Islamic University Malaysia
Institute of Islamic Banking and Finance, Association of Shariah Advisors in Islamic, Islamic
Banking and Finance Institute Malaysia and Chartered Institute of Islamic Finance Professionals.

Chart 1 - Public Bank Bhd training investment FY2018 – FY2022

 20

Public Bank Training Investment

FY2018 - FY2022
60 52 54.7
50
50 42 40
40
30
20
10
0
2018 2019 2020 2021 2022

RM (million)

2.2.3 Employee Job Satisfaction

There are numerous studies conducted for job satisfaction however, different authors define job
satisfaction differently. During the 19th century, Hoppock (1935) defined job satisfaction as the
feeling of satisfaction within a job generated from a mixture of psychological, physiological and
environment. To develop deeper, psychological needs included competence, relatedness and
autonomy. Competence is the need to learn and develop new skills. Individuals feel confident
when they are capable of completing tasks well. Relatedness is the need to connect and care for
or care for others. Individuals experience a sense of being accompanied and friendly when they
build relationships with a group or community. Autonomy is the power to control your behaviour
and freedom of choice. Individuals experience satisfaction when they align their actions based on
their desires. While physiological needs are the biological requirements for humans to pursue
usual living. It includes the need for air, food, drink, clothing and so on. Environment belongs to
the workplace culture, setting, safety and condition which can influence individual work
behaviour. Psychological, physiological and environment are equally important to form
employee satisfaction. The study emphasizes job satisfaction is an individual internal feeling that
is affected by external conditions.

Davis et al. (1985) defines job satisfaction as positive and negative feelings of employees that
measure according to their work expectation. Positive feelings denote employees satisfied with
their work, while negative feelings show employee dissatisfaction with their work. The study
argues individual expectations from work are the main force affecting employee satisfaction.
Employees have a positive feeling when the workplace aligns with their expectations. For
instance, individuals who expect to have ample time spent with family members instead of long
working hours earn high levels of satisfaction while working in an organization that prioritises
work-life-balance or promotes flexible workplace and working hours. However, individuals feel
dissatisfied if they work with organisations requiring long working hours. The correlation
between work satisfaction and employee work expectation influences their work behaviour and
work performance.

During the 20th century, Mullins (2005) defined job satisfaction as complex concepts which are
different according to each individual. The study highlights individuals with different priorities
and personality caused complexity in composing the main reason affecting individual
 21

satisfaction in the workplace. It relates to individual inner attitude conditions and is associated
with quantitative and qualitative personal feeling. One that is prioritized over colleagues, others
may target career development or employer reputation and values. According to George et al
(2008), job satisfaction is the compromise of feeling and belief of individuals regarding their
employment. Level of job satisfaction can span from extreme satisfaction to extreme
dissatisfaction. The study also stated employee satisfaction level present on their job attitude.
Furthermore, Jennifer Herrity (2022) stated job satisfaction is the level of job fulfilment, it
examines overall job happiness and sadness that is brought to an individual. Job satisfaction can
be classified into intrinsic and extrinsic work satisfaction. for instance, employee daily day-to-
day tasks and responsibility. Intrinsic job satisfaction highlights the work responsibility, while
extrinsic work satisfaction highlights the work condition. For instance, employee benefit,
employee development, and organizational environment.

Based on the study definition of job satisfaction, it is evident that there is a positive relationship
between employee motivation and job satisfaction. Motivation is a key driver that affects
satisfaction level. This makes organizations consider motivation factors in order to fulfil
employee satisfaction. Nowadays, organizations are required to be more creative and innovative
in maintaining employee motivation to achieve a high degree of job satisfaction. As a global
organization example, companies focus on generation needs to achieve job satisfaction.

Studies show that Millennials and Gen Z job satisfaction is connected to their company's impact
on the world. Gen Z and younger generations are more willing to work in shared or open space
that creates motivation and opportunity to interact with team members. However, baby boomers
prefer to work in traditional offices and be valued. (Airbnb, 2019). As such, companies promote
a motivated workplace by providing a comfortable atmosphere. For example, encourage
employees to get out of the office by promoting work remotely, and offer facilities such as game
rooms, massage rooms, and child care rooms. These illustrate current organization efforts to
invest in employee satisfaction.

Given the importance of job satisfaction in global organizations, we conducted an analysis of the
satisfaction levels among employees of Public Bank Bhd. Based on the outcome, we can infer
the organization employee motivation level.
 22

Table 2 – Public Bank Bhd employee satisfaction from Jobstreet, Glassdoor, Indeed
Source Rating Recommend Satisfied Less satisfied
to Friend
Jobstreet 3.8 / 79%  Benefit and perks  Work life balance
5.0  Career
development
Glassdoor 3.4 / 56%  Benefit  Work life balance
5.0  Salary and bonus  Working environment
 Friendly and culture
colleagues  Management
 Workload
Indeed 3.7 / -  Salary and benefit  Work life balance
5.0  Job security and  Working culture
advancement

Based on the analysis conducted from job portal Jobstreet, Glassdoor and Indeed, Public Bank
rating ranges between 3.4 to 3.7. On average, Public Bank company rating above average of total
rating, 3.63 out of 5.0. Refer to Jobstreet data, about 79% of employees will recommend friends
to join the bank while Glassdoor comprises 56% recommendation rate. The average
recommendation rate of 67.5%. On the contrary, approximately 1.37 out of 5 dissatisfied with
the organization and 21% employees will not recommend the company to their friends. Both
rating and recommendation rate above total average indicate more than half of Public Bank
employees are satisfied with their company and will suggest their friend to join the company.

Upon diving into the ratios, it is evident that Public Bank employee’s express satisfaction with
their benefit and perk, salary and bonus, as well as job security. They believe Public Banks offer
fair and above market rate compensation in terms of employee benefit, salary and bonus.
However, the bank is unable to fulfil employee work life balance, most of the employees express
their workload is overwhelming. Besides that, challenges for the bank in providing a satisfied
working environment, positive organisational culture and management structure.

In short, Public Bank effectively address employee satisfaction through monetary compensation,
but they encounter challenges in satisfied employee psychological needs such as environment,
organization culture and management structure.

3.1 Recommendation

3.1.1 Employee motivation

 23

The effectiveness of every company is highly dependent on the productivity of its employee, and
this productivity is influenced by a range of motivating factors present within the organization. It
is the responsibility of public bank management to foster employee motivation and identify the
factors that drive employee engagement. Instead of guessing how to motivate team members, it
is better to sit down with them and truly understand their needs and what motivates them the
most, whether it is intrinsic – personal challenges, job satisfaction, self-fulfillment, or extrinsic –
physical rewards, salary, bonuses, gifts. For instance, Public Bank may offer a range of
compensation options to their staff in order to appreciate their hard work and encourage them to
keep up their high standards of performance. These options may include monetary compensation,
profit-sharing program, paid leave, or a relaxing trip.

Research conducted by Sija (2021) demonstrated that recognition and fairness play a crucial role
in determining employee performance among banking employees in Malaysia. Employees who
are recognized and appreciated for their contributions are more likely to be satisfied, productive,
and motivated.Public Bank can establish a range of recognition programs to acknowledge
employee accomplishments, encompassing work anniversaries, favorable customer feedback,
and various workplace achievements. Effective recognition should be specific and personal.
Instead of using generic praise like "good job," Public Bank can acknowledge the employee's
specific contributions and the impact their work has had on the team and the company. Specific
examples of achievements that could be recognized include years of service award, customer
service award, and employee recognition wall.

A well-defined career path serves as a powerful motivator for employees. When employees
understand the growth opportunities that await them upon excelling in their current roles, they
are more likely to invest in their professional development, continuously refine their skills, and
adopt best practices that lead to success. Public Bank can foster employee growth and
development by scheduling one-on-one meetings to understand each team member's career
aspirations and how they envision their future within the company. Public Bank can identify
specific ways to support their success in their current roles and equip them with the necessary
skills and resources to advance to the next level by gaining insights into their individual goals.

Palmer (2018) study reveals that office food ranks among the top three most valued employee
perks, alongside vacation time and professional development. By providing nutritious and
convenient meals, Public Bank can demonstrate their care for their employees' well-being,
fostering a sense of value and appreciation. Moreover, offering office meals can save employees
valuable time that would otherwise be spent searching for lunch, allowing them to dedicate more
energy to their work. Waber et al. (2010) provided evidence that coffee breaks can lead to higher
productivity in the workplace. Public Bank could offer a wider range of refreshments, including
snacks, in addition to regular drip coffee, to create a more inspiring and enjoyable coffee break
experience for their employees. Additionally, Public Bank could cultivate a sense of community
and encourage socialization among employees by creating a communal coffee break area with a
relaxing ambiance and comfortable seating. Features like plush couches, natural light, plants, and
casual game options could be considered to enhance the overall experience.

These factors collectively contribute to a more engaged and productive workplace culture, which
boosts employee motivation.
 24

3.1.2 Employee Benefit

According to McKinsey & Company report (Alistair Carmichael et al., 2022), Asia employees
suffering more mental health and burnout compared to other regions. Especially female
employees and frontline workers experience higher burnout, distress and symptoms of
depression. Based on our findings, Public Bank offers extensive support on finance and leaves
policy, but there is room to improve in addressing psychological well-being benefits.

Implement mental health programs such as health awareness campaigns and workshops able to
improve employee mental health. Public Bank can provide counselling services or online
counsellor service to employees. Counsellors can provide immediate assistance in crisis time,
providing positive thought to employees. Apart from that, the mental health program consists of
stress release and management assisting employees in coping stress particularly in high-stress
environments like the banking industry.

Public Bank can enhance employee psychological well-being by allowing flexible work
schedules and the workplace. Company can schedule workplace flexibility based on employee
work characteristics. For instance, Fortune 500 companies allow IT employees to work remotely.
They are able to decide their workplace and work schedule, resulting in employee mental and
physical well-being. Besides that, Public Bank should encourage managers to promote
supportive policies in order to create a positive organisational culture. Many employees play
different roles in their personal lives. In addition to being employees, they are parents, children
or caregivers who need support to balance their personal and work lives. Managers need to have
a sense of empathy and consideration for employees. Transparent and considerate policies create
a motivated workplace and boost employee satisfaction.

Furthermore, Public Bank can enhance their workplace environment by providing an open
workplace. Open workplace encourages employees to communicate and interact freely within the
organization. Open environment helps employers to better understand their employees and
employees more willing to exchange thoughts. In addition, Public Bank can provide ergonomic
workstations to support employee physical health.

3.1.3 Employee Satisfaction

Employee satisfaction generates from employee benefits and motivation. Employee benefits that
meet employee needs are able to increase work motivation, leading to higher job satisfaction. In
contrast, companies that fail to meet employee needs can lead to demotivation and high turnover.
According to the Public Bank FY2022 annual report, the bank is facing challenges in satisfied
employee work-life balance and organizational culture expectation.

Public Bank can apply technology tools to enhance productivity, efficiency, and reduce
unnecessary workload. Encourage the automation process as a solution to reduce time
consuming tasks. For instance, a customer relationship manager assesses new client
creditworthiness through automated system capable client news and risk rating instead of
manually reviewing client profile. Besides that, management must establish transparent
communication on job expectation and responsibility to avoid ambiguity. Clear tasks and
 25

responsibilities able to prevent task misalignment among colleagues. Encourage one-to-one

commutation between managers and employees to understand employee needs. Both ways
communication builds relationships between employer and employee.

Establish regular assessment and continuously monitor employee workload create positive
impact on workload issues. Throughout the practices, employers can identify issues and make
necessary adjustments. Additionally, Public Bank should discourage overtime and ensure
employees are provided with appropriate break time. Working environment that sets boundaries
between work and personal life promotes work-life balance, allowing employees to spend
valuable time with parents and family members. These increase employee job satisfaction within
the organization.

Promote of work-life balance is often a reflection on organization culture. Enhancing work-life

balance can create a positive influence on company culture.

4.1 Conclusion

This paper has focused on the organizational behavior of Public Bank, specifically examining
employee motivation, benefits and recognition, retention, and satisfaction. Public Bank's
dedication to employee development and its proactive approach in addressing employee needs
through benefit schemes and training programs contribute to a positive work environment.

This paper also proposes Public Bank with some recommendations to motivate its employees.
Motivating employees is an important factor in employee performance in the workplace, which
helps employees to improve their productivity and meet customer demand. Public Bank should
identify the factors that drive employee motivation and performance and emphasize these aspects
to enhance employee engagement and productivity. The bank should continuously explore
innovative strategies to maintain high employee motivation levels, utilizing a combination of
benefits, recognition, training, and flexible work arrangements. Embracing these factors equips
businesses to succeed in the competitive marketplace and accomplish their strategic aims.

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