markentile bank internship report
TRANSCRIPT
3737
Employee Job Satisfaction Level
at
Employee Job Satisfaction at Mercantile Bank
3737
Internship Report on
“Employee Job Satisfaction Level at Mercantile Bank Limited.”
Prepared For : Professor M.A. Ghulam Dastagir
Secretary & ProfessorInternship Supervisor
Bangladesh University
Prepared By:Shajhan Shiraz
ID# 200811119055Batch: 19th
BBA
Date: October 5.2011
Bangladesh University
Employee Job Satisfaction at Mercantile Bank
3737
Eng. Golam Dustogir Senior LecturerSchool of BusinessBangladesh University
Subject: Submission of the final report on “Employee Job Satisfaction Level at Mercantile
Bank Limited”
Dear Sir,
I like to express my gratitude to give me an opportunity to get oriented into the real job
market for the implication of my theoretical knowledge into the practical experience. As a
part of my BBA program this internship at Mercantile Bank Limited has given me an
opportunity to get hands on experience in Banking Arena at Bangladesh perspective.
I enjoyed preparing the report though it was challenging to finish within the stipulated time.
In preparing this report, I have tried my level best to furnish all the relevant information and
tried to identify the scope of betterment for the employee job satisfaction of Mercantile Bank
Limited. I am requesting to acknowledge the report and enable me to fulfill my internship
program and oblige thereby.
Thank you
Sincerely,
Shajhan Shiraz
ID# 200811119055
Employee Job Satisfaction at Mercantile Bank
3737
Executive Summary
A significant portion of the Mercantile Bank Limited’s employees are young people and we
know that Young people often have a fall back option that is mostly their parents on which
they can depend on to some extent and that plays a role in making them think it is safe to try
for another job. Since they are opportunists in nature, they tend to find the earliest chance to
grab a promotion and move vertically upward through the hierarchy. Discriminations
between employees and departments, the lack of coordination between departments have
been a major deal breaker for the MBL employees. And for the finance people who have
been working in these financial institutions have quite a number of options when it comes to
switching jobs. Especially since the employees at Mercantile Bank Limited are paid less than
the other competitors in the banking industry, they often consider leaving their jobs. This
report looks into the different factors involving the employee dissatisfaction of Mercantile
Bank Limited employees and looks to mitigate the issue to some extent.
Employee Job Satisfaction at Mercantile Bank
3737
Table of Contents
THE ORGANIZATION PART............................................................................................................................7
1.0 NAME, LOCATION AND HISTORICAL BACKGROUND....................................................8
2.0 FOUNDERS................................................................................................................................. 9
3.0 MISSION, VISION AND OBJECTIVES.................................................................................10
4.0 ORGANIZATIONAL STRUCTURE.......................................................................................13
5.0 THE COMPANY’S MAJOR FUNCTIONS, DESCRIPTION OF ITS BUSINESS, AND
DETAILED DESCRIPTION OF VARIOUS FUNCTIONAL DEPARTMENTS.......................14
6.0 THE COMPANY’S COMPETITIVE CONDITIONS, INDUSTRY ANALYSIS, AND SWOT
ANALYSIS:....................................................................................................................................... 24
7.0 STRATEGIC, OPERATIONAL AND LEGAL ISSUES FACED BY MBL...........................29
8.0 MBL’S CURRENT STATE OF OPERATIONS AND FUTURE DIRECTIONS.................31
THE PROJECT PART..................................................................................................................... 36
1.0 INTRODUCTION..................................................................................................................... 37
2.0 OBJECTIVES OF THE STUDY............................................................................................... 39
3.0 SIGNIFICANCE OF THE STUDY........................................................................................... 41
Employee Job Satisfaction at Mercantile Bank
3737
4.0 METHODOLOGY..................................................................................................................... 56
5.0 HYPOTHESES.......................................................................................................................... 60
6.0 FREQUENCY ANALYSIS........................................................................................................ 67
7.0 CROSS TABULATION ANALYSIS........................................................................................ 75
8.0 CORRELATION........................................................................................................................ 90
9.0 REGRESSION ANALYSIS....................................................................................................... 93
10.0 RECOMMENDATIONS........................................................................................................ 96
11.0 LIMITATIONS OF THE STUDY......................................................................................... 99
12.0 Conclusion.............................................................................................................................................. 100
Employee Job Satisfaction at Mercantile Bank
3737
The Organization Part
Employee Job Satisfaction at Mercantile Bank
3737
1.0 Name, Location and Historical Background
Mercantile Bank Limited is a scheduled private commercial Bank established on May 20,
1999 under the Bank Company Act, 1991 and incorporated as a Public Limited Company
under Companies Act, 1994. The Bank started commercial Banking operations from June 02,
1999. From then within a short time MBL has established itself in a strong position in the
economy of the country. It has earned significant reputation in the country’s Banking sector
as Bank and created a wide image in the eye of the people. The dreams of creating MBL,
which is ‘A Bank of 21st Century’ has become successful because of the initiative of some
persons who are the sponsors of MBL. There are 30 sponsors in Mercantile Bank Limited and
all of them are highly regarded for their entrepreneurial competence.
The Bank has launched a number of financial products and services since its inception.
Among these, Monthly Savings Scheme, Family Maintenance Scheme, Double Benefit
Deposit Scheme, Quarterly Benefit Deposit Scheme, 1.5 Times Benefit Deposit Scheme,
Advance Benefit Deposit Scheme, Consumer Credit Scheme, Small Loan Scheme, Lease
Finance Scheme, Overseas Employment Loan Scheme, Car Loan Scheme, Home Loan
Scheme and SME Loan have received wide acceptance among the people.
1.1
Deposit
Products
Employee Job Satisfaction at Mercantile Bank
3737
1. Monthly Saving Scheme
2. Monthly Benefit Deposit Scheme
3. Double Benefit Deposit Scheme
4. Quarterly Benefit Deposit Scheme
5. Times Benefit Deposit Scheme
6. Advance Benefit Deposit Scheme
1.2 Loan Products
1. Consumer Credit Scheme
2. Small Loan Scheme
3. Lease Finance
4. Doctors' Credit Scheme
5. SME Loan Scheme
6. Personal Loan Scheme
7. Car Loan Scheme
8. Home Loan Scheme
9. Overseas Employment Loan Scheme
2.0 Founders
Mr. Abdul Jolil (M.P.) is a Bangladeshi politician. He is a former minister of Bangladesh
Government and the member of Central Committee of Bangladesh Awami League and
current general secretary of Awami League. He is founder Chairman of Mercantile Bank
Limited. He expressed his satisfaction at the achievement of the bank during the year 2002
and advised the executives and officers to come forward with new banking products and
innovative ideas. He is a current Member of Parliament and elected from Naogoan District.
Employee Job Satisfaction at Mercantile Bank
3737
3.0 Mission, Vision and Objectives
3.1 Mission
To become the most caring bank
To be focused for equitable growth based on diversified deployment of resources
Nevertheless to remain healthy and gainfully profitable Bank.
3.2 Vision
MBL’s vision is to become the Bank of Choice by transforming the way it does business and
developing a truly unique financial institution that delivers superior growth & financial
performance and be the most Recognizable Brand in the financial services in Bangladesh.
MBL dreams to become the bank of choice of the general public which includes both the
consumer and the corporate clients. They want to build such an image that whenever people
will think of a bank, they will think of Mercantile Bank.
3.3 Objectives
MBL is always ready to maintain the highest quality to services by upgrading banking
technology prudence in management and by applying high standard of business ethics
through its established commitment and heritage.
MBL is committed to ensure its contribution to national economy by increasing its
profitability through professional and disciplined growth strategy for its customer and
by creating corporate culture in international banking arena.
The objective MBL is not only to earn profit but also to keep the social commitment
and to ensure its co-operation to the person of all level, to the businessman,
Employee Job Satisfaction at Mercantile Bank
3737
industrialist-specially who are engaged in establishing large-scale industry by
consortium and the agro-based export oriented medium & small-scale industries by
self-inspiration.
MBL is always pre-occupied to encourage the inventors for purchasing its share by
creating the opportunity of long-term investment and increasing the value of share
through prosperity as developed day by day.
MBL is playing a vital role in Socio-economic development of Bangladesh by way of
linkage with rest of the world by developing worldwide network in domestic and
international operations.
3.4 Strategies
Mercantile Bank Limited will be a world class organization in terms of service quality and
establishing relationships that will help its customers to develop and grow successfully. MBL
will be the market leader in the concept of Excellence in Banking by providing accurate,
reliable and timely services. That is the reason it has created some values which support their
strategies. The values are given below.
Shareholders - Create sustainable economic value for our shareholders by utilizing an
honest and efficient business methodology.
Community - Committed to serve the society through employment creation, support
community projects and events and be a responsible corporate citizen.
Customers – Render state-of-the-art service to our customers, offering diversified
products and aspiring to fulfill their banking needs to the best of our abilities.
Employee Job Satisfaction at Mercantile Bank
3737
Employees – Be reliant on the inherent merit of the employees and honor our relationship
as a tribute to be a part of the renowned financial institution. Work together to celebrate
and reward the unique background, viewpoints, no matter what the job is.
Accountability – As a bank, we are judged solely by the successful execution of our
commitments, and we expect and embrace that form of judgment. We are accountable for
providing the highest level of services along with meeting the strict requirements of
regulatory standards and ethical business practices.
Trust – We value mutual trust, which encompasses transparent and candid
communications among all parties.
Employee Job Satisfaction at Mercantile Bank
3737
4.0 Organizational structure
4.1 Corporate Hierarchy
Employee Job Satisfaction at Mercantile Bank
3737
5.0 The company’s major functions, description of its business, and detailed description of various functional departments
5.1 Major Functions
The functions of commercial Banks are now wide and varied. However, the functions of
Commercial Banks may broadly be classified under the following two categories-
1. Primary Functions
2. Secondary Functions
5.1.1 Primary Functions:
The primary functions of Mercantile Bank Limited are same as other Commercial Banks.
These functions includes-
i. Accepting deposits;
ii. Lending money;
iii. Creating credit;
iv. Creating medium of exchange.
5.1.2 Secondary Functions:
Modern commercial Banks like MBL, besides performing the functions, cover a wide range
of financial and on-financial services to meet the growing needs of the time. Some of these
services are available only to the customers while others are available to the public in general.
The subsidiary services provided by a modern banker may be classified into following three
groups-
i. Agency Services
ii. Generally Utility Services
Employee Job Satisfaction at Mercantile Bank
3737
iii. Foreign Exchange Business
5.2 Divisions of Mercantile Bank Limited:
If the jobs are not organized considering their interrelationship and are not allocated in a
particular department it would be very difficult to control the system effectively. If the
departmentalization is not fitted for the particular works there would be haphazard situation
and the performance of a particular department would not be measured. Mercantile Bank
Limited has nine divisions which are as follows:
5.2.1 Credit Risk Management:
Employee Job Satisfaction at Mercantile Bank
3737
The primary objective of this division is to evaluate the credit worthiness and debt payment
capability of present loan customers and loan applicants. The respective branches send all
loans and advances proposals from the prospective borrowers to the Head office Credit Risk
Management (HOCRM) for an approval. If this department finds the loan proposal attractive,
it either approves it or sends it for board approval. It is also responsible for keeping track of
the credit portfolio by obtaining regular information from the branches. It sets prices for
credits and ensures affecting it at the branches. This department also monitors the various
loan accounts of the branches and prepares various statements for Bangladesh Bank.
The Credit Risk Management Department is assisted by the Credit Administration
Department, which is mainly concerned with the post-approval functions of the division. The
aspects that are critically tracked and monitored by Credit Admin are
Credit expiry
Past dues
Excess over limit
Document deficiency
Reporting
Credit Administration is involved in basically 2 broad functions:
Loan Monitoring
Documentation
Loan Monitoring:
The important aspects of this part are:
Follow approval terms
Proper loan disbursement
Monitor interest payments
Monitor principal repayment
Employee Job Satisfaction at Mercantile Bank
3737
Balance with general ledger
Documentation:
The important functions of this part are:
Look at sanction terms
Fill up loan documentation checklist
Ensure Proper loan documentation
Obtain client sign off
Filing with the Registered Joint Stock Corporation ( RJSC)
Registered mortgage deed execution
5.2.2 Consumer Banking Division:
The mission of Consumer Banking is to serve individual customer throughout every stage of
their life stage. The consumer banking activities are being carried out through the 50
branches of Mercantile Bank Limited operating countrywide. Among these branches 19
branches are located in Dhaka.
The broad functions of this division are:
Settlement of accounts
Building strong relationship with individual customers
Identifying individual needs of the customers and thus helping design products that will
meet their needs.
Providing locker services
Providing ancillary services
5.2.3 Human Resources Division:
The employees are Mercantile Bank’s most valuable resource. Having competent and
professional employees is becoming increasingly important in today’s competitive world, and
Employee Job Satisfaction at Mercantile Bank
3737
MBL has a significant competitive advantage in this respect. Also the new employees are
recruited with sound academic background and given proper training after recruitment to
groom up for their responsibilities.
The broad functions of this division are:
Staffing: An important task of the HR division is to prepare all formalities regarding
appointment and joining of the successful candidates.
Training: HR department emphasizes on training and development in order to minimize the
knowledge and skill gaps and enhance business awareness among the bank employees. To
this effect, this department arranges various training programs for the bank employees both at
the Bank’s own Training Institute at Purana Paltan and at various outside locations.
5.2.4 Audit and Compliance Division:
The main function of this division is to provide legal assistance to the branches and to ensure
strict adherence of rules and policies by all concerned officials of the bank through routine
and surprise inspection and audit. The functions of this division are as follows:
Implement rescheduling process of stuck-up loan to the branches for obtaining
repayment schedule through strong persuasion and serve final notice etc. as the condition
required.
Monitor the individual cases with respect to their securities, value of securities, and
finally review of possibility of recovery of bank’s stuck-up classified loan.
Investigate suspicious or irregular matters being directed by higher management.
Also conduct such inquiry being requested by affected branch-in-charges.
Time to time follow-up of stuck-up advances of branches and keep the branches
under constant pressure.
Inspect all branches’ operations at least once in a year.
Carry out surprise audit as felt necessary.
Employee Job Satisfaction at Mercantile Bank
3737
5.2.5 Finance and Accounts Division:
Finance and Accounts division is a very important division for any Bank, because its task is
to ---
Maintain daily liquidity positions, treasury bills, call money, debentures, placement
of funds etc.
Monthly-accrued interest calculation of all interests bearing accounts, inter-branch
calculation for Head Office, amortization of all fixed and other assets.
Preparation of statement of accounts and profit and loss account for the bank.
Weekly deposit and advance analysis of the bank.
Cost of fund analysis.
Maintenance of accounts, preparation of annual report of the bank, maintenance of
provident fund accounts, maintenance of income and expenditure posting, maintenance of
salaries and wages of the employees etc.
Fulfilling reporting requirements of Bangladesh Bank.
5.2.6 Information Technology Division:
With the implementation of Information Technology, the IT division has become a very
important contributor to the bank’s overall efficiency and profitability. At present, the IT
department serves the following functions:
Development of softwares for bank’s operation according to need, their maintenance
and purchase of new softwares.
Maintenance of computer hardwares and upgrading the PCs whenever required.
Training of the staff so that they can perform properly in the automated environment.
Preparing training materials.
Troubleshooting with the new software.
Employee Job Satisfaction at Mercantile Bank
3737
5.2.7 Administration:
This department looks after the administrative matters and procurement and supply of all
tangible goods to the branches. Some of the main functions of this division are described as
follows:
Make arrangement for branch opening such as making lease agreement, internal
decorations etc.
Print all security papers and bank stationery.
Purchase necessary stationery items.
Distribute this stationery to the branches.
Purchase all sorts of furniture and fixtures for the branches.
Install and maintain different facilities for the branches etc.
Issuance of power of attorney to the officers of the branches.
Issuance of different circulars of Bangladesh Bank and other banks.
General correspondence with Bangladesh Bank and other banks.
Advertise in the different media about tender notice, general meetings and public
interests.
Employee Job Satisfaction at Mercantile Bank
3737
5.3 Products and Services
5.3.1 Small & Medium Enterprise (SME)
Over the years, continuous time and effort has been put in to understand the target market and
their needs. The SME unit has worked on risk management system to cover the typical needs
that the clients might have and has come up with flexible payment patterns which will help
all the clients in the long run.
5.3.2 Corporate Banking
Mercantile Bank Limited’s Corporate Banking team provides banking services as well as
financial support to local large and medium organization. Corporate Banking is the most
conventional mode of business in low risk sectors. Services that corporate team provides are:
Employee Job Satisfaction at Mercantile Bank
3737
5.3.3 Personal Banking
MBL exerts special effort to develop and introduce new products and services through
extensive market research to meet every facet of modern business. Different products of
Personal Banking are as follows:
Employee Job Satisfaction at Mercantile Bank
3737
5.3.4 Depository Product:
5.3.5 New Product and services
The bank has its concentration for new product and services development for satisfying its
customer and increasing its customer base. The bank firmly believes that technology based
product and services will play significant role in the performance of the bank as people are
getting more conscious about their service quality. There are some new products and services
that Mutual Trust Bank Limited has lately introduced. These are:
Employee Job Satisfaction at Mercantile Bank
3737
6.0 The company’s Competitive Conditions, Industry Analysis, and SWOT Analysis:
6.1.1 World Economy- An over view
In the era of trade liberalization, globalization has presented new challenges as well as greater
opportunities for countries all over the world. Economic boundaries of nations are being
abolished and the world is gradually becoming one global village. E-commerce is becoming
the predominant mode of transactions. Revolutionary changes in the fields of cost control,
retail channels, range and delivery of services, accessibility and reach are being witnessed.
6.1.2 Bangladesh Economy-An over view
The macro economic development during financial year 2008-2009 was marked by a healthy
GDP growth and moderate inflation. For the second year running bumper rice harvest
maintained growth at above 6% and GDP growth during the FY 2008 was at 5.59%. On the
other hand, the growth performance in industry was slow with manufacturing growth 7.4%
being one of the lowest rates in the recent years. Several unfavorable factors contributed to
this situation which included disturbance in the supply of natural gas which in the turn
affected the power supply and production activities. Other than that import of raw materials
and private sector credit also affected the manufacturing growth. Furthermore, labor disputes
during the second quarter of the year badly affected the operation of Chittagong port. In the
services sector, growth in transportation, storage and communication contributed to about
13% to the total GDP but growth in trade sector was slow due to lower import growth.
During the year some positive initiative were taken in the banking sector with improvements
in the legal and regulatory environment to improve loan recovery but unfortunately the high
quantum of nonperforming assets and under capitalization continued to plague the entire
Employee Job Satisfaction at Mercantile Bank
3737
banking sector thus causing a major threat to the macroeconomic stability. The size of
classified loans increased significantly which contributed to lower profitability of the banks.
6.1.3 Industry Analysis
We know that this is a monopolistic competitive market where a company’s main focus is to
have service differentiation. Banks are competing with each other on the basis of service
differentiation. Bangladesh economy has been experiencing a rapid growth since the '90s.
Urbanization and lifestyle changes along with the economic development have created a
demand for banking products and services to support consumer investments in a profitable
manner. To meet the overgrowing demand of consumers the number of commercial banks in
Bangladesh is increasing day by day.
The total number of banks operating in Bangladesh is 49. Out of the 49 banks, four are
Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign
banks and the rest five are Development Financial Institutions (DFIs). Bangladesh Bank (BB)
regulates and supervises the activities of all banks.
6.1.3.1 Nationalized Commercial Banks (NCBs)
1. Sonali Bank 3. Agrani Bank
2. Janata Bank 4. Rupali Bank
6.1.3.2 Private Commercial Banks (PCBs)
1. Pubali Bank 15. Al-Arafah Islami Bank Ltd.
2. Uttara Bank 16. Social Investment Bank Ltd.
3. National Bank Ltd. 17. Dutch-Bangla Bank Ltd.
4. The City Bank Ltd. 18. Mercantile Bank Ltd.
Employee Job Satisfaction at Mercantile Bank
3737
5. United Commercial Bank Ltd. 19. Standard Bank Ltd.
6. Arab Bangladesh Bank Ltd. 20. One Bank Ltd.
7. IFIC Bank Ltd. 21. EXIM Bank
8. Islami bank Bangladesh Ltd. 22. Bangladesh Commerce Bank Ltd.
9. Al Baraka Bank Bangladesh
Ltd.
23. Mutual Trust Bank Limited
10. Eastern Bank Ltd. 24. First Security Bank Ltd.
11. National Credit
& Commerce Bank Ltd. (NCC
Bank Ltd.)
25. The Premier Bank Ltd.
12. Prime Bank Ltd. 26. Bank Asia Ltd.
13. South East Bank Ltd. 27. The Trust Bank Ltd.
14. Dhaka Bank Ltd. 28. Shah Jalal Bank Limited (Based on Islamic
Shariah)
6.1.3.3 Foreign Banks
1. American Express Bank 7. Muslim Commercial Bank Ltd.
2. Standard Chartered Grindlays Bank 8. City Bank NA
3. Habib Bank Ltd. 9. Hanvit Bank Ltd.
Employee Job Satisfaction at Mercantile Bank
3737
4. State Bank Of India 10. HSBC Ltd.
5. Credit Agricole Indosuez (The Bank) 11. Shamil Islami Bank Of Bahrain EC
6. National Bank of Pakistan 12. Standard Chartered Bank
6.1.3.4 Development Banks
1. Bangladesh Krishi Bank 4. Bangladesh ShilpaRin Sangstha
2.
RajshahiKrishiUnnayan Bank
5. Bank of Small Industries &
Commerce Bangladesh Ltd.
3. Bangladesh Shilpa Bank
6.1.3.5 Other Banks
1. Ansar VDP Unnayan Bank 3. Grameen Bank
2. Bangladesh Samabai Bank Ltd.
(BSBL)
4. Karmasansthan Bank
The banking industry is quite saturated and competitive. Some of the major players in this
industry are the Hong Kong and Shanghai Banking Corporation (HSBC), Standard Chartered
Bank (SCB), City bank, Islami Bank Limited, BRAC Bank, Prime Bank Limited, Mercantile
Bank Limited and Dutch Bangla Bank Limited. Over the years these banks are significantly
holding the market share and continuously exerting pressure over one another. This highly
competitive and profitable industry therefore inspired others to come forward and thus made
this industry even more competitive and tougher.
Mercantile Bank Limited’s direct competitors are the:
Employee Job Satisfaction at Mercantile Bank
3737
6.2 SWOT Analysis of MBL
SWOT analysis is used to measure views of a single issue from different patterns. From
historical data and practical observation, I found the following Strength opportunity,
weakness and threat under SWOT analysis of Mercantile Bank Limited:
6.2.1 Strengths
Not engaged in unfair business practice.
Well-known reputed bank in the market.
Concentrated market.
Officers are highly educated and experienced.
Deposit is larger than advance.
Attractive credit and deposit schemes than competitive markets.
Well-furnished and Air-conditioned Bank.
Strictly complies of government banking rules, regulations and acts.
6.2.2 Weakness
Small market shares in Banking-business.
Short time experience in the banking sector.
Employee Job Satisfaction at Mercantile Bank
3737
Growth is slower than other competitive banks.
Training programs to officers are not so effective and adequate.
Lack of advance technology utilization in all aspects.
6.2.3 Opportunities
Can provide more attractive and deposit facilities and credit facilities.
Take incentives to provide high quality service.
Can increase the advertising of the Bank to highlight latest services of MBL.
Can adopt high technology based inter-branch networking system.
6.2.4 Threats
The number competitors in banking sectors are increasing.
Governments increasing rules and regulations are not so inspiring.
Competitive performance is in high positive flow.
Competitors are using more advance technological system.
Government tendency of imposing tax and VAT is becoming stricter.
7.0 Strategic, Operational and Legal Issues faced by MBL
7.1 Issues to be considered
1. The current era of banking has become more uncertain and challenging. Traditional
concepts have changed and innovative products and channels of delivery such as:
telephone and internet banking are gaining popularity which is resulting in the reduced
necessity for the brick and mortar branch banking system. Another trend that is apparent
in the banking sector, is the shifting of focus from corporate banking to accommodate
retail and SME banking with a view to minimize risk and diversify the portfolio. Another
Employee Job Satisfaction at Mercantile Bank
3737
issue that attracts considerable attention is the increase in operating costs due to improved
service quality level which has become compulsory to meet the requirements of the
customers.
2. However, apart from these changes, the major problem that faces Mercantile Bank
Limited is the substantial increase in the inflation level worldwide which can be attributed
as the primary reason for the growth of the financial sector. This is because, due to sharp
changes in industrial inputs and food grains prices, the same volume of imported resulted
in higher bills without bringing in proportionate enhancement in real economic activity.
Another issue to consider for Mercantile Bank is the slowdown in industrial credit
because of various socio-political changes.
7.2 Strategies to Address the Issues & Problems
1. The approach that Mercantile Bank Limited should take in addressing the various issues
and problems is through means of adaptability. But this could only be done if the bank
has a motivated pool of competent, talented and trained employees, who has the ability to
foresee the changes and devise business directions accordingly. Therefore, investment in
human resources should be of top priority.
2. In addition, the management of the bank has already recognized the elements that will
pose risks in the near future in retaining the bank’s superior position. And accordingly
have developed strategies and listed priorities in order to overcome these risks.
Employee Job Satisfaction at Mercantile Bank
3737
8.0 MBL’s Current State of Operations and Future Directions
8.1 Current Operations of MBL
The incessant fall out of international credit market due to world economic meltdown
resulting sluggish growth has put significant pressure on financial performance of banks and
financial institutions worldwide. MBL has achieved continuous growth in almost all arenas of
its business despite this economic crisis, facing intensified competition of the industry. The
bank remained in strong financial strong position with its continued focus on the vision of
becoming country’s finest corporate citizen, providing excellent and need based customer
service.
The recent fiscal years have all contributed to the achievement of the financial sector of
Bangladesh. This performance was praiseworthy considering the worldwide economic
downturn. In this time, Bangladesh Bank has increased the capital adequacy requirement of
the banks from 9 percent to 10 percent of RWA (Risk Weighted Assets) and has also
introduced general provision on Off-balance sheet items in an effort to reduce inflation and
strengthen lending facilities of Commercial banks for better asset and liability management.
These steps have affected both the banks and the borrowers. And due to the political situation
in recent times, the lack of business confidence and cautionary monetary policy resulted in
excess liquidity in the banking sector. The growth of deposits and lending activities has also
slowed down from the level of last year. These incidents will result in a reduce return on
assets and equity for the sector. The recent trend of the customers to be more interest
sensitive has led to the lowering of the spread for the banks. Even with all these adverse
Employee Job Satisfaction at Mercantile Bank
3737
conditions the Private Commercial Banks continued to perform better due to balanced
diversification of its assets among the Retail, SME and Capital Market.
The recent years have been all been fruitful for Mercantile Bank Limited despite of shocks in
the economy. The bank was able to make a record operating profit of Tk 1.66 billion in 2010,
an increase of 29.73 percent from the previous year. Net profit attributable to shareholders
reached Tk. 802.52 million. The return on average equity remained 18.80 percent and
earnings per share (EPS) stood at Tk. 37.41 during 2010. The non-performing loan ratio is
2.54 percent. Capital adequacy ratio was at 10.48 percent, which is above the required return
of 10 percent. Cost income ratio declined to 32 percent from 34 percent of previous year.
This strong performance of the bank can be attributed to its continuous growth of loans and
deposits and also to the remarkable performance of the merchant banking division. In this
time, deposits of the bank rose to 58.30 billion from 49.54 billion in 2010. Indicating a
growth of 17.68 percent. Loans and advances stood at 48.30 billion which was 41.99 at the
end of year 2009. Percent during the year. The bank transacted foreign trade to the amount
of 137.84 billion indicating a growth of 26 percent during the current year.
(BDT in million)
Particulars 2006 2007 2008 2009 2010
Authorized Capital 1200.00 1200.00 1200.00 1200.00 1200.00
Paid-up Capital 319.77 639.53 799.41 999.27 1199.12
Assets 16383.17 18324.73 24098.09 28890.48 37159.65
Investments 882.47 1382.29 2107.26 3517.68 5407.90
Deposits 15150.42 16285.19 22385.19 25727.43 33317.64
Advances 8896.19 10775.95 17669.29 21857.05 26842.14
Import 15112.50 20380.80 28325.20 33271.90 N/A
Export 11377.30 15250.60 17411.00 24108.57 N/A
Employee Job Satisfaction at Mercantile Bank
3737
Profit after tax 256.74 215.91 312.58 386.83 494.22
Earning Per Share 70.59 57.88 31.28 32.26 41.22
Price earning ratio - - 17 times 9 times 10 times
No. of Branches 15 20 25 28 31
No. of Employees 663 879 945 1,115 1315
8.2 Future Directions
It is expected that in the years to come, increased remittance flow, good export performance,
steady industrial growth, accelerated performance in small and medium enterprise and
consumer loan, implementation of efficient risk management and corporate governance are
the events that will have positive impact on the performance of the banking sector.
Mercantile bank is well positioned to meet the challenges of the future as it is expected to
continue to harness the potential of retail, credit card, SME (Small & Medium Enterprise) and
remittance market. The bank will also focus on its large existing customer base to generate
more business from them.
However, the continued pressure on interest margins, fees, exchange earnings and increased
provision requirement for Retail, Credit Card, SME, Off-balance sheet items and
implementation of BASEL II by 2009 will pose a challenge to the financial sector in the near
future. Keeping all these in mind, Mercantile Bank is committed to adhere to good
governance and practices and sound risk management policies and strict credit evaluation
procedure.
8.3 Employees at Mercantile Bank
Employee Job Satisfaction at Mercantile Bank
3737
Employee satisfaction is the terminology used to describe whether employees are happy and
contented and fulfilling their desires and needs at work. Many measures purport that
employee satisfaction is a factor in employee motivation, employee goal achievement, and
positive employee morale in the workplace.
Employee satisfaction, while generally a positive in an organization, can also be a downer if
mediocre employees stay because they are satisfied with your work environment.
Factors contributing to employee satisfaction include treating employees with respect,
providing regular employee recognition, empowering employees, offering above industry-
average benefits and compensation, providing employee perks and company activities, and
positive management within a success framework of goals, measurements, and expectations.
Employee satisfaction is often measured by anonymous employee satisfaction surveys
administered periodically that gauge employee satisfaction in areas such as:
management,
understanding of mission and vision,
empowerment,
teamwork,
communication, and
Co-worker interaction.
MBL believes that employee satisfaction drives the bank work better and therefore the bank
tries to provide every facility it can to the employees. HR policies laid emphasis on the
employee benefits as the bank thinks them as valuable assets and the bank intends to make
Employee Job Satisfaction at Mercantile Bank
3737
them more valuable providing them sufficient pecuniary benefits, nurturing their knowledge
as well. Good work environment is a very important factor for the employees and MBL does
offer a hygenic work environment. Better career growth has been ensured so that the
employees can lead a standard life. Attractive compensation bonus, yearly and festival
bonuses, training faclity, retirement facility, providend fund facility, gratuity fund, leave fare
assistance, disability benefits, health care benefits by permanent doctors and variety of loan
facilities at a lower interest rate- these benefits are always available for the employees. Costs
incurred for nursing the employees in the year 2010 and 2009 are as follows:
Employee benefits Year 2010 Year 2009 Growth
Basic Salary (BDT in million) 351.43 255.66 37.45%
Festivals and incentive bonus (BDT in million) 218.94 165.96 31.92%
Allowances (BDT in million) 243.27 196.42 23.85%
Training expenses (BDT in million) 9.09 7.00 29.85%
Employee Job Satisfaction at Mercantile Bank
3737
The Project Part
Employee Job Satisfaction at Mercantile Bank
3737
1.0 Introduction
Employee satisfaction surveys provide the information needed to improve levels of
productivity, job satisfaction, and loyalty. There is a direct link between employee
satisfaction and financial results. In addition to the intrinsic desirability of having employees
at the workplace who are satisfied, administrators have also been concerned about the job
involvement of employees which enhances the goal commitment and reduces the turnover of
employees. Employees with higher job satisfaction believe that the organization will be
satisfying in the long run, care about the quality of their work, are more committed to the
organization, have higher retention rates, and are more productive. Job satisfaction, which has
been studied extensively, is a function of several important variables - especially the
characteristics of the job itself (Hackman and Oldham, 1975), and the organizational climate
(Litwin and Stringer, 1968). Job characteristics have been shown in many studies to influence
the job satisfaction of employees (see for instance, the extensive review by Rabinowitz and
Hall, 1977). Organizations can identify the root causes of job issues and create solutions for
improvements with an accurate perspective of employee views. There is a need to discover
what motivates people, what drives loyalty, and what genuinely makes and keeps your
employees happy. Satisfaction levels will increase when employees know that their issues are
being addressed.
This research has been undertaken with objective of: Finding the areas of employee
satisfaction or in other words what are the factors that employees deem important to him/her.
Employee Job Satisfaction at Mercantile Bank
3737
Analyzing and identifying the key factors that will achieve employee satisfaction to optimum
levels.
1.1 Purpose of the Research
Mercantile Bank Limited is operating in such a market where they have high competition as
it has become a monopolistic competitive market. MBL is expanding its business and because
of this reason they need employees especially when they open a new branch. That’s the
reason Mercantile Bank Limited is popular among the job seekers but there are plenty of
MBL employees who are not satisfied with their job. The purpose of this research is to
identify the specific reasons why the MBL employees are dissatisfied with their job. The
business reason for this research is that I can provide the information to top level
management so that they can reduce the employee job dissatisfaction level.
1.2 Research Question
What are the reasons behind the job dissatisfaction of MBL employees? Does it have any real
impact on the bank’s performance? In the report I have tried to find out answers to the
following questions:
1. What is the importance of employee satisfaction?
2. What are the factors that influence the employee satisfaction?
3. Reasons behind the job dissatisfaction of MBL employees?
4. How can the top level management minimize the job dissatisfaction level?
5. What are the roles and responsibilities of a branch manager in order to minimize the
dissatisfaction level?
Employee Job Satisfaction at Mercantile Bank
3737
2.0 Objectives of the study
I tried to finish this specific project based on a survey among the employees of Mercantile
Bank Limited. Along with that, to fulfill the requirement of this course (BUS 498) in a
realistic and practical way, what I guess it will be helpful for me in future.
2.1 Broad objective
“To find out the reasons behind the job dissatisfaction among the employees of MBL.”
The general purpose of this study is to determine the influential factors making the MBL
employees dissatisfied with their job and linking these factors with the possible problems that
MBL can face in future. This broad objective is to find out the reason why MBL employees
are dissatisfied even though this is a lucrative work place for the job seekers.
2.2 Specific objective
To present an overview and brief introduction of Mercantile Bank Limited.
To find out what may occur if employees are dissatisfied.
The possible ways to reduce their dissatisfaction level.
I decided to pursue my research goal through a questionnaire based survey conducted on the
employee of Mercantile Bank Limited. My targeted respondents were the employees of MBL
who have served MBL for at least one year. The questionnaires were designed as the
apparatus with which I could shape this project. They were designed on the basis of
Relevance, Accuracy and Consistency.
The questionnaires were “Relevant” in the sense that only the most important questions were
entered, “Accurate” in the sense that the questions were designed to gather accurate and error
free information from the respondents and finally “Consistent” in the sense that, some
questions were added simply to verify the consistence in the response patterns of the
respondents and thus verifying whether they actually understood the topic.
Employee Job Satisfaction at Mercantile Bank
3737
2.3 Scope of the Study
Since the most important factor for any service sector is to retain the trained and experienced
employees and hence increase productivity. If majority of the employees are dissatisfied then
they will eventually quit the company in future and this is a big threat for a company as they
are the people who provide the services and earns profit for the company. This report looks to
find out the dissatisfaction level of the employees of MBL and the factors on which the job
dissatisfaction level depends, which affects the revenue of the bank. The scope is that, this
report may give ideas to the management, so that they can take decisions regarding
modifying the strategies of providing incentives to the employees to reduce the current job
dissatisfaction level.
2.4 Types of Information
The survey gathered information about employee satisfaction level in these key areas:
Employee Job Satisfaction at Mercantile Bank
3737
3.0 Significance of the Study
The purpose of conducting this research is to find out the employee satisfaction level and the
scope of improvement in order to achieve more productivity.
This study will help MBL to gain more knowledge about the satisfaction level of the
employees and will help them to redefine their strategies to increase productivity.
It will also assist in developing new ways to keep the employees motivated and reduce
cost due to arranging training and workshops.
We will be able to get a brief overview of the employee satisfaction level in Financial
Sectors in Bangladesh especially in MBL.
3.1 Literature Review
3.1.1 Job Satisfaction and Dissatisfaction
Hezberg’s two factor theory of job satisfaction
Hezberg’s two factor theory of job satisfaction (Hygiene Theory): Hezberg’s two factor
theory attempts to explain satisfaction and motivation in the workplace. According his theory,
Employee Job Satisfaction at Mercantile Bank
3737
satisfaction driven by motivation and dissatisfaction is driven hygiene factors. Motivating
factors are considered to be intrinsic to the job, or the work carried out. Motivating factors are
factors those make people want to perform, and achieve. Motivating factors provide people
with satisfaction, such as achievements, recognition, promotion opportunities etc. Hygiene
factors include aspects of the working environment such as pay, company policies, and other
working conditions. According to Hezberg’s, adequate fulfillment of Hygiene factor
influence employees to be ‘ Not dissatisfied’ and inadequate hygiene fulfillment lead to
‘dissatisfaction’.
What causes job satisfaction: Studies have shown that, job satisfaction is strongly correlated
with the ‘work itself’. Enjoying the work itself leads to highest level of job satisfaction. Other
job satisfaction facts include, pay, coworkers, opportunity for advancement etc. According to
this theory, personality plays a very important role. People with positive personality are
generally more satisfied. According to research, money motivates and satisfies employees
only up to a certain level. After that level, money cannot satisfy an employee.
Job Dissatisfaction and Retention Rate
If the employees are satisfied then they are not going to switch the job however if they are
dissatisfied with their job then in near future they will switch to another organization and this
will lead to low retention rate for the company, in this case the company is Mercantile Bank
Limited. As we know that trained employees are the valuable resources for a company, if
they start switching the job then it can be possible that the company will be collapsed as they
are in the service industry and the service providers meaning the employees are leaving the
company one by one because of the job dissatisfaction. The more employees will switch the
job the more retention rate will be going down for Mercantile Bank Limited.
Factors Contributing To Retention
Employee Job Satisfaction at Mercantile Bank
3737
The literature clearly indicated that there are six keys to retaining personnel. They are
recruiting, communications, training, job satisfaction, pay, and benefits. There is a direct link
between job dissatisfaction and retention. The other factors also play important role in
determining the workplace environment and retention.
Recruiting
It is evident that the effort to retain the best personnel begins with recruiting. Attracting
potential candidates and retaining the performers are not two different things, but is the same
thing. Both of these require creating and maintaining a positive reputation, internally as well
as externally. By representing the organization realistically, a department will attract those
who will be content working within the culture (Marx, 1995). Denton (1992, p.47) follows
this up by stating that, “The better the match between recruits and the organization the more
likely you are to retain them.” Lynn (1997) believes that you must take time during the hiring
process to make wise decisions. The employer must be open and truthful about the working
conditions, responsibilities, opportunities and other details to reduce the chances of making
hiring mistakes. Taylor and Cosenza (1997) emphasized this thought by noting that it is
imperative that companies give prospective employees a true picture of the organization, if
they hope to match the personality type with the climate and culture of the organization so
that in future they do not feel cheated and leaves the job.
Communications
‘Taylor and Consenza (1997) indicate that it is important to communicate the values of the
organization to its employees in order to increase their level of consent, participation, and
motivation. The vision of the organization must be shared with the employee as well as the
importance the employees play in helping fulfill it. Lack of communication may result in
gaps between management’s perceptions of quality employment and the employees desired
Employee Job Satisfaction at Mercantile Bank
3737
and perceived quality of employment (Taylor &Consenza, 1997). There must be a common
purpose and trust among employees. People want to feel as if they are a vital piece of
something larger (Carney, 1998). As Denton (1992) points out, managers must make sure
employees know what they should do and why it is important.’ (Employee Retention, 1999)
In the same article (Employee Retention, 1999) Lynn stated that communications must be a
two way street to be effective. Employers must listen to what employees have to say. An
atmosphere needs to be created in which employees feel comfortable making suggestions and
trying our new ideas. The literature revealed that communication must begin early in the
employer/employee relationship.
Organizational values and culture must be made clear to all employees and their importance
within the organization must be continually emphasized.
Training
It is important that the employee feels like a valued member of the organization which will
motivate him to take part actively. And in such cases training helps underscore this message.
Training personnel is a way to show that he/she is respected and have scopes to grow. The
department is making an investment in the employee by offering training (Marx, 1995). Good
training can de-emphasize salaries and benefits, in part by building a positive work
environment and by giving employees advancement opportunities (Lynn, 1997). Lynn also
states that training helps strengthen employee loyalty. (Employee Retention, 1999)
Training emphasizes to the employee that they are valued and respected and this turn into
increased loyalty.
Job Satisfaction
While an organization must be competitive in terms of compensation and benefits, it is the
relationship with the supervisor that is often a crucial factor in determining whether a person
Employee Job Satisfaction at Mercantile Bank
3737
stays or goes (Mendonsa, 1998). Employees want more interaction with management, more
self-satisfaction on the job, more responsibility and more control over decisions affecting
them. They want their work to make a difference and want to be part of something that
matters (Taylor, 1997).
Departments should encourage innovation by soliciting the advice and input of their staff
members, followed by responses to ideas, complaints or questions (Taylor, 1997).
It is difficult to keep people on the job if they have no say in how to do it (Spragins, 1992).
Promoting from within the department shows that there is truly room for advancement and
growth within the department. Employee involvement, recognition, importance of work, and
career advancement opportunities are all important, when dealing with employee satisfaction
and retention.
Pay and Benefits
In general people tend to think that money and benefits are the main reasons people leave
their jobs, but this is not always the case. While compensation and benefits may be an
important factor in the final decision-making process, there are other important factors that
cause people to look for job.
Although traditional benefits such as vacation and health are still important, today’s workers
are also looking for more non-traditional benefits. Benefits such as flexible work hours,
availability of childcare, tuition assistance programs and other benefits now top the list. The
literature clearly indicates while still factors, money and benefits are not as important as job
satisfaction in terms of employee retention.
3.1.2 Importance of Employee Satisfaction
Importance of employee satisfaction for organization
Increase productivity.
Employee Job Satisfaction at Mercantile Bank
3737
Increase customer satisfaction
Reduce turnover, recruiting, and training costs.
Enhance customer satisfaction and loyalty.
Improve teamwork.
Higher quality products and/or services.
Importance of employee satisfaction for employee
Employee will care about the quality of their work.
They will create and deliver superior value to the customer.
They will be more committed to the organization.
Their works will be more productive.
3.1.3 Factors influences to employee satisfaction
Organization development factors
Brand of organization in business field and comparison with leading competitor.
Missions and Vision of organization.
Potential development of organization.
Policies of compensation and benefits factors
Wage and salary
Benefits
Rewards and penalties
Promotions and career development factors
Opportunities for promotion.
Training program participated or will do.
Capacity of career development
Employee Job Satisfaction at Mercantile Bank
3737
Work task factors
Quantity of task
Difficult level of task
Relationship with supervisor factors
Level of coaching
Level of assignment for employee
Treatment to employee
Working conditions and environment factors
Tools and equipment
working methods
Working environment
Cooperation culture factors
Relationship with coworkers
Level of sharing
Competencies, Personalities and Expectations of employee factors
Employee’s personality.
Employee’s expectations from job.
3.1.4 Reasons behind the job dissatisfaction among the employees of
Mercantile Bank Limited
Organization without a shared mission and goals to achieve
If a company doesn’t share its mission, vision and goals with its employees at that time
employees will not be feeling that they are the part of this team. Teamwork will not be up to
the mark at that point and company will be facing coordination problem because all
Employee Job Satisfaction at Mercantile Bank
3737
employees will not work in the same direction. Because of this lack of belongingness
employees will be dissatisfied. It is very important that whatever the employees will do
should lead to the mission or goals that a company is willing to achieve. For this reason the
mission, vision and goals should be shared with the employees.
In my internship period I have talked with the employees of MBL and I was surprised to
know that no one knows their mission, vision and goals. In some cases they checked it in
front of me and that was the first time in their life that they went through these statements.
According to them, it’s not really necessary to know these statements because they are the
small players in a big game. Lack of “sense of belongingness” exists among them and it
proves that they are dissatisfied with their job.
Rewards do not match expectations
We all know that different people have different needs. It will be wrong if the organization
start thinking that every employee wants higher salary. There are some employees who prefer
to have promotion.
In the Mercantile Bank Limited employees are getting less salary compare to their
workload. Most of them are dissatisfied because of this reason. However, there is one
employee, working in the cash department in my branch where I have done my internship,
who is serving MBL for last three years. A few months back she has got an increment of
BDT 5000, but she was expecting a promotion also which she hasn’t got and because of this
reason she was very upset for a few days. This is also a case of job dissatisfaction.
Unfair rewards and performance appraisal system
Favoritism exists in Mercantile Bank Limited. A few days back 18 new employees were
joined in MBL family. After talking with one of them I came to know that on the basis of
favoritism or nepotism most of the employees were selected and this is a trend which they
Employee Job Satisfaction at Mercantile Bank
3737
follow form the very beginning. Her uncle is in the top level position in the HR department
and in the interview board she was asked: “How is your father and others in the family?” She
had no prior experience and she has completed her honors from Jagannath University in
second class but she is enjoying BDT 21,000 salary per month as an entry level post;
interestingly her major was in political science. On the other hand an officer, Dhaka
University graduates majoring in finance, who is serving MBL for last two and half year is
getting only BDT 24,500. Though he is very productive and smart his salary is very poor
because he doesn’t have any uncle like her. This officer is also very dissatisfied because of
this unfairness.
We know that if an employee realizes that the performance appraisal system is unfair, he will
not put in his maximum effort. He perceives that his effort will not provide the promotion,
salary increase, reward, career advancement and personal growth.
Employee conflict
A significant portion of an employee’s daily life is spent at the office. They need to
communicate with the other employees and customers. If employers practice discrimination
and favoritism at the workplace, employee conflict is likely to happen. This will further lower
the staff efficiency and productivity.
In MBL, the assistant officer cannot tolerate the front desk officer because sometimes he has
to do some of her office works along with his work which is an extra hassle, according to
him. Even some of the higher officer cannot tolerate her supervisor because the supervisor
gives her a lot of works.
Lack of reinforcement
An immediate praise for a job well done is motivating. If an employee gets feedback on how
well he has done his job, he will do better. A superior can acknowledge an employee's
Employee Job Satisfaction at Mercantile Bank
3737
performance by personally congratulating him, offering an incentive or celebrating the
success, even in a small way.
In my twelve week internship period in Mercantile Bank LimitedI haven’t seen this
happening for single time. In the HR courses we have learned that without reinforcement an
employee can't measure his performance and is uncertain of his progress toward the
company's objective and even his own goals.
Inadequate tools, insufficient resources and non-supportive working conditions
Having a supportive, safe and clean working condition with adequate tools makes it
comfortable to work and provide employee satisfaction. He is able to facilitate a good job in a
situation where he can work with ease and perform at his highest level. A supportive
supervisor and a cooperative atmosphere allow him to put in the efforts. Giving coaching,
training and development programs will educate, encourage and motivate him to perform
better.
In MBL, it is seen that there shortage of some very important tools, i.e. red pens, staplers,
calculators and punching machines. Some of them have written their names on these tools
however because of the shortage employees have to share these with each other. Sometime
they do some serious jokes about this. Once my immediate boss was annoyed on another
employee as he took his red pen. Though this was very funny for me to but it happens with
them every day and that makes them dissatisfied because at the time of doing a big
calculation if someone doesn’t find his pen then it will discomfit him.
Communication breakdown
When I was in MBL I have found that most of the time it was one way communication,
upward to downward. When employees can't communicate and voice out their opinions and
Employee Job Satisfaction at Mercantile Bank
3737
ideas, either because of an imposed barrier or improper communication system, frustration
develops and this creates job dissatisfaction.
Lack of trust and integrity
If lack of trust and integrity exist in the company then the employees will be dissatisfied.
MBL employees are not integrated at all. They act like selfish people and they start
backbiting about everyone in the company. This is also an indication that they are not
satisfied with their job.
Employee Job Satisfaction at Mercantile Bank
3737
3.1.5 How the top level management of MBL can minimize the job
dissatisfaction level
After finding out the possible reasons behind the job dissatisfaction of the MBL employees
now it’s time to have a discussion about how to resolve this problem, if not possible at least
how to minimize the job dissatisfaction level. Because at this point we all know that it is very
necessary for a company to have satisfied employees otherwise the company will suffer huge
loss in future. It is easier to find out how to minimize the job dissatisfaction level because
right now we know what the reasons are because of which the MBL employees are
dissatisfied. But in reality the difficult part will be to implement these findings as these will
increase the total expenses. In short-run this cost may look like a huge expense but truly this
is going to be the biggest investment as MBL will be earning profits through its satisfied
loyal employees in future. For the time being, let’s only discuss how the top level
management of MBL can minimize the job dissatisfaction level and the implementation part
will be discussed later.
Job specification, roles and responsibilities
Every employee of MBL should know their roles, responsibilities and job functions
appropriately. They should concisely know what is expected from them. An employee must
know these from the start of his employment so that it will be easy for him to decide if he
wants to become a part of the establishment.
The leadership
One of the areas that MBL’s top management has to look into if employee dissatisfaction is
prevalent they have to evaluate the performance of their managers and supervisors. These
leaders can make or break the team and the business.
Employee Job Satisfaction at Mercantile Bank
3737
The Tools
MBL should provide the necessary tools and resources to help the employees become more
efficient and productive. Employees should be encouraged to learn and study more about
their work and the banking industry.
Top level management should keep one thing in their mind that- well trained and motivated
staffs are the assets of Mercantile Bank Limited.
Building relationship
Business is not only about making profits. Its growth depends on building relationships with
everyone involved meaning the stakeholders. Both the clients' and employees' interests are
important to the business. Well-trained, motivated and satisfied employees render outstanding
services and bring satisfaction to clients. Happy clients provide more income and referrals.
Building Trust
Trust that MBL employees will do their jobs and that they'll do them well. Employee should
have a say and the power to make decisions relating to his assigned task. If they feel
trustworthy then they will be feeling satisfied thus they'll prove what they are capable of
doing.
Working Environment
More organized and healthy working environment should be built as employees spend at least
one third of their working hours there. Practicing favoritism, allowing backbiting and
encouraging gossiping are some of the examples of a bad working culture. A healthy
workplace with equal opportunities should be given to everyone, which will reduce the
employee job dissatisfaction.
The reward
Employee Job Satisfaction at Mercantile Bank
3737
Receiving a bonus is always a delight for employees. Getting a raise and a promotion is every
worker's expectation. Other than this, getting or receiving compliments, recognitions, and
approval on a regular basis are also very important. These boost morale and these make one
feel appreciated and acknowledged.
Appraisal program
Top level management should build the proper evaluation and encourage employees to
perform better. Getting or receiving compliments, recognitions, and approval on a regular
basis are very important. This boost morale and make one feel appreciated and
acknowledged.
Organization development
A corporate culture should be built in which employees will be an integral part of the
company. This can be an effective way of satisfying them and getting the most from the
talents or competencies brought to the company by each employee.
Employee Job Satisfaction at Mercantile Bank
3737
3.1.6 Roles and responsibilities of a branch manager to minimize job
dissatisfaction level
Supervise and manage the overall performance of staff in his branch.
Analyzing, reporting, giving recommendations and developing strategies on how to
improve the employee dissatisfaction level.
Making sure that everyone in his branch knows their roles and responsibilities.
Inclusion of employee career development programs, succession planning and
periodic training for the employees.
Appreciate employee’s good work which will satisfy them.
Communicating with the employees and minimize the personal distance.
Identifying problems related to job dissatisfaction and report to the top level
management.
Employee Job Satisfaction at Mercantile Bank
3737
4.0 Methodology
This research is cross sectional by nature. At first phase qualitative research was undertaken.
It was covered through the secondary literature survey and primary qualitative analysis. To
assess all the factors related with this topic, a structured questionnaire was prepared to test the
outcome of the decision and discussion. The questionnaire primarily found out the exact
reasons because of which the employees are dissatisfied in Mercantile Bank Limited. For the
survey about 50 personnel from Mercantile Bank Limited were approached and most of them
reluctantly agreed to take part in the survey. After the survey data were compiled a series of
data analysis were conducted of which the frequency distribution, cross tabulation and
regression were most noteworthy. Thereby, assessing the validity of the respondents the
dissatisfaction level of the employees is measured.
4.1 Research Design
During the proper research paper plan, I had to accumulate, gather and analyze information.
It is a framework for the research plane of action. For this research purpose, I have done both
quantitative and conclusive research design. After doing exploratory research to find the
initial problem, I have done descriptive and causal research for the detail and more depth
research. Descriptive research also helps to find out the reasons that influence the job
dissatisfaction.
In research design, I have precise what data to gather, from whom, how and when to collect
the data, and how to investigate the data obtained. I have formulated the research design plan
into few stages.
4.1.1 Problem discovery and definition
Employee Job Satisfaction at Mercantile Bank
3737
At first, I discovered the problem that MBL employees are dissatisfied. Then after going
through exploratory research, I have defined the problem more accurately by giving rise to
the hypothesis “Compensation is not the only reason for the job dissatisfaction of the MBL
employees”.
4.1.2 Planning the research design
The research is designed in such a way so that we can have accurate answer form the
respondents and finally I can come to a decision.
4.1.3 Selecting sample
I interviewed some of the employees at the time of doing survey. I have selected a sample
where the employees are serving MBL for at least one year.
4.1.4 Gathering data
I took 50 respondents for the survey. I have personally collected data from 50 employees of
the branch. Two of my bosses have helped me too collect the rest of the data as they had to
attend the training program in other branches.
4.1.5 Data processing and analysis
I have used the SPSS for data analysis part. At first I have prepared the codebook by keying
the answer options with a specific number then I gave the inputs.
4.1.6 Conclusion and report writing
Conclusion is drawn based on the research findings and in-depth interpretation of the
statistical figures.
4.1.7 Survey
Employee Job Satisfaction at Mercantile Bank
3737
My plan was to develop a questionnaire through which I can ask questions to the targeted
sample and I solely dependent on the results of responses.
The planning was to deal with quantitative information.
The method of managing the questionnaires would be through survey.
4.1.8 Primary data
Primary refers to core data that I have got from primary sources such as Survey
Questionnaires, Standardized Tests, Observational Forms, etc – also known as Raw Data. The
research is mostly based on the primary data, which I have collected from the primary
sources mostly from the survey. I have also talk with them personally in order to obtain more
information.
I have conducted a survey on 50 employees to collect the primary data to find out the attitude
of the employees of Mercantile Bank Limited. It was rather difficult to manage and convince
the employees to take part in the survey. It was often asked to take the data from the internal
source of MBL which the HR Division was reluctant to share stating it was classified and
they would prefer to have a new perspective from the research instead of inclining the
research finding aligned with the internal study.
4.1.9 Secondary data
Secondary data refers to literature studies made by others for their own purpose. As
secondary data I have search the relevant information from Internet, newspaper, magazines,
researched data etc.
Different articles were published in the newspapers and web sites and intra-net of Mercantile
Bank Limited but regarding employee satisfaction it was very difficult to get the information
because hardly any information were available in the articles.
Employee Job Satisfaction at Mercantile Bank
3737
4.1.10 Purpose of descriptive research
In this research, I have conducted descriptive research to identify
1. Whether employee satisfaction is important or not.
2. How different factors influence the employee satisfaction level?
3. Reasons behind the job dissatisfaction of MBL employees?
4. Steps that top level management can take to minimize the job dissatisfaction level.
5. How can a branch manager minimize the dissatisfaction level?
4.1.11 Purpose of causal research
In this case, we have done causal research to identify weather the change of one variable
affect the other variable.
4.1.12 Problem Statement
Now a day’s job satisfaction is an important factor that drives people in workplaces and it is
prominent in every sphere of life. In all industries we see job satisfaction directly related to
productivity, attitude and dedication. People leave jobs for various reasons but when a large
number of people leaves or switches jobs in a short period of time that makes people curious
to find out the reason behind such behavior. In Mercantile Bank Limited, it is evident that the
employees are dissatisfied though they don’t state this to their top level management however
they express this when they start gossiping with other employees and some of the customers.
This research aims to find out the reasons behind this kind of job dissatisfaction.
Considering the above, the main research topic or the problem statement has been developed
as:
Employee Job Satisfaction at Mercantile Bank
3737
5.0 Hypotheses
5.1 Primary Hypothesis
In order to test the primary hypothesis five supporting hypotheses was used so that we can
know whether we can accept the primary null hypothesis or not. Through these series of
hypotheses testing it can be found out that compensation is not the only reason for the job
satisfaction of an employee. After testing all supporting hypothesis, if we at least find out one
Employee Job Satisfaction at Mercantile Bank
3737
supporting hypothesis’s null hypothesis not being rejected then it implies that our primary
null hypothesis should not be rejected; meaning that compensation is not the only reason for
job satisfaction of the MBL employees. In the “Discussion of the Results” part the author has
described this in details. The Five supporting hypotheses are discussed in the following page.
Employee Job Satisfaction at Mercantile Bank
3737
5.2 Supporting Hypotheses
5.3 Questionnaire Design
Employee Job Satisfaction at Mercantile Bank
3737
The research was designed to find out the reasons behind the job dissatisfaction of MBL
employees. For the research I developed a questionnaire with specific questions designed to
find out the relationship between the different variables.
Mostly, the questionnaire was developed in the ‘Likert’ scale with several statements being
made and with the options ranging from “Strongly Agree” to “Strongly Disagree”. The
fundamental reason for conducting this research is to find out the perception of the employees
about their job. This is why I added a ‘Likert’ scale attitude test of MBL employees. Later I
added a ranking test, in which the respondents are asked to rank the decisive factors that they
consider at the time of looking for a job. Brand name, salary, benefits, promotion
opportunities, convenience, nature of work, work environment, workload, they were provided
with these options so that I can know which factor they value most and which one is the least
according to them.
The reason I kept this for last is because I wanted to see finally how my respondents would
rate these key areas with respect to job.
Employee Job Satisfaction at Mercantile Bank
3737
5.4 Survey Data Editing
Data editing is a key segment for survey research. This step is very important to get an
accurate picture of the overall situation. In an effort to improve the quality of the research-
work, my editing considered the three following parts:
At first, I conducted pretesting of my questions before finally distributing it to the
respondents. During the editing process I checked the data for omissions for legibility for
consistency and thus prepared the collected data for coding.
Employee Job Satisfaction at Mercantile Bank
3737
5.5 Survey Data Entry
I was very conscious about the data entry process and carefully entered the values in SPSS.
The software allowed me to enter and view data in two different ways:
The data view was used to enter the coded data into the software and the variable view was
used to describe and code the variables.
5.6 Survey Data Summarization
Frequency
I used frequency distribution tables to summarize the gathered data. This is a process where I
recorded the number of times a particular value of a variable occurs. The mean, standard
deviation and other descriptive statistics were also calculated along with the frequency
distribution.
Cross tabulation
I used cross tabulation, a technique to organize data by groups, categories, or classes, and
thus facilitating comparisons, and a joint frequency distribution of observations on two or
more sets of variables. I also conducted cross tabulation analysis in this research.
Hypothesis Testing
Employee Job Satisfaction at Mercantile Bank
3737
The hypothesis testing method was applied to analyze the data at hand. By this procedure I
tried to figure out whether the hypothesis I came up with was justified or not.
Regression
I also performed linear regressions to understand the relationships between the different
variables. This helped me to form the composition of my research since linear regression
prove or refutes the hypothesis developed.
Limitations
I faced some problems while conducting the research. The respondents were reluctant to give
any information.
Time was the key constrains of my report. Due to lack of time I had to complete the report in
a hurry.
There was some uncertainty about few responses. There are scope for social desirability bias
and deliberate falsification.
Employee Job Satisfaction at Mercantile Bank
3737
6.0 Frequency Analysis
The frequency analysis is basically done in order to find out what percentage of the
respondents answered to a specific question. In the frequency analysis part some of the vital
questions were analyzed and interpreted accordingly.
6.1 Age
Age
Frequency Percent Valid
Percent
Cumulative Percent
Valid 23-27 7 13.9 21.3 21.3
28-32 15 25.4 38.8 60.0
33-37 18 18.0 27.5 87.5
38-42 6 4.9 7.5 95.0
42+ 4 3.3 5.0 100.0
Total 50 65.6 100.0
Missing System 72 34.4
Total 122 100.0
Employee Job Satisfaction at Mercantile Bank
3737
This graph shows the age differences of the respondents. We can observe from the graph that
the majority portion of our respondents is aged between 28 and 37. I had the majority 38.8%
of the respondents who were aged within the range of 28 to 32. 27.5% respondents were aged
within the range of 33 to 37; these people are the experienced employees of MBL. Around
21.3% of the respondents were young employees of MBL, who are aged between 23-27.
Remarks: Majority of the employees were young and these young people if MBL can
motivate these people are make them satisfied then they will stay in this bank and make
valuable contribution to this bank.
6.2 Gender
Gender
Frequency Percent Valid
Percent
Cumulative
Percent
Valid Male 34 68.0 71.3 71.3
Female 16 32.0 28.8 100.0
Total 50 65.6 100.0
Missing System 42 34.4
Total 122 100.0
Employee Job Satisfaction at Mercantile Bank
3737
This table shows my respondents’ gender variability. Here, the graph demonstrates that I
have surveyed on 68.0% male and 32.0% female during the research. My main focus was to
conduct a survey which is independent of any kind of bias effects. In MBL the split between
male and female is 70%-30%, my survey was very close to the actual scenario.
Remarks: 68.0% male and 32.0% female respondents will produce a almost bias free,
realistic result reflecting employees attitude.
6.3 Job Nature
The job I do is interesting
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Disagree 8 6.6 16.0 16.0
Disagree 10 8.2 20.0 36.0
Neutral 6 4.9 12.0 48.0
Agree 20 16.4 40.0 88.0
Strongly Agree 6 4.9 12.0 100.0
Total 50 41.0 100.0
Missing System 72 59.0
Total 122 100.0
Employee Job Satisfaction at Mercantile Bank
3737
From the frequency analysis above it
is observed that a greater percentage
of the respondents have agreed to the
statement that is 40%, furthermore
12% were strongly agree. Where only
12% went neutral and 20% disagreed
and 16% strongly opposed the
statement. Typically, the segment of
the respondents who disagreed
(20+16=36%) does not find their job to be interesting and vice versa.
6.4 Relationship with peers
The peers/colleagues are friendly with me
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Disagree 7 5.7 14.0 14.0
Disagree 8 6.6 16.0 30.0
Neutral 13 10.7 26.0 56.0
Agree 11 9.0 22.0 78.0
Strongly Agree 11 9.0 22.0 100.0
Total 50 41.0 100.0
Missing System 72 59.0
Total 122 100.0
From the frequency analysis
above it is observed that more
of the respondents were
neutral (13) about the case and
also most of them agreed
Employee Job Satisfaction at Mercantile Bank
3737
(11+11=22) to have friendly relationship with their peers. However, a minor amount
(7+8=15) of these respondents indicated of having hostile relationship with peers. Apparently
this group, no matter what their size is, can be a matter of concern for the organization.
Employee Job Satisfaction at Mercantile Bank
3737
6.5 Utilization of skill in the given position
I am fully able to use my skills in this position
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Disagree 7 5.7 14.0 14.0
Disagree 10 8.2 20.0 34.0
Neutral 8 6.6 16.0 50.0
Agree 17 13.9 34.0 84.0
Strongly Agree 8 6.6 16.0 100.0
Total 50 41.0 100.0
Missing System 72 59.0
Total 122 100.0
Regarding this Question, the good numbers of responses were positive (34+16 =50%). Where
14+20=34% disagreed to the statement and 16% remained neutral.
Employee Job Satisfaction at Mercantile Bank
3737
6.6 Compensation
I am happy with my compensation
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Disagree 7 5.7 14.0 14.0
Disagree 7 5.7 14.0 28.0
Neutral 7 5.7 14.0 42.0
Agree 26 21.3 52.0 94.0
Strongly Agree 3 2.5 6.0 100.0
Total 50 41.0 100.0
Missing System 72 59.0
Total 122 100.0
Answering the question of compensation a mass number of the respondents replied to be
positive about the statement. This is a 58% of the positive responses. However, the other
responses were 14% for each of them respectively.
Employee Job Satisfaction at Mercantile Bank
3737
6.6 The Job Satisfaction
I am happy with this organization
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Disagree 7 5.7 14.0 14.0
Disagree 11 9.0 22.0 36.0
Neutral 12 9.8 24.0 60.0
Agree 9 7.4 18.0 78.0
Strongly Agree 11 9.0 22.0 100.0
Total 50 41.0 100.0
Missing System 72 59.0
Total 122 100.0
Here comes the most vital question of the research that is, the satisfaction of the employees
with the organization. Observing the responses it is found out that a mixed number of
employees are showing mixed number of feelings towards the job satisfaction. The Numbers
simply indicates 20 of the respondents answered positively where 18 answered negatively
and also, 12 remained neutral.
Employee Job Satisfaction at Mercantile Bank
3737
7.0 Cross Tabulation Analysis
7.1 Hypothesis Testing
7.1.1 Primary Hypothesis
Null Hypothesis (H0): Compensation is not the only factor that affects Job Satisfaction
Alternative Hypothesis (H1): Compensation is the only factor that affects Job Satisfaction
Before discussing further it should be proved that Compensation is a factor for the job
satisfaction of MBL employees.
Null Hypothesis (H0): Compensation is a factor for the job satisfaction of MBL employees.
Alternative Hypothesis (H1): Compensation is not a factor for the job satisfaction of MBL
employees.
I am happy with this organization * I am happy with my compensation - Cross tabulation
Count
I am happy with my compensation Total
Strongly
Disagree
Disagre
e
Neutra
l
Agree Strongly
Agree
I am happy with this
organization
Strongly
Disagree
4 1 1 1 0 7
Disagree 1 5 4 1 0 11
Neutral 2 1 2 5 2 12
Agree 0 0 0 9 0 9
Strongly
Agree
0 0 0 10 1 11
Total 7 7 7 26 3 50
Question number 9 and 18 was selected to build this hypothesis thus the cross tabulation
chart was prepared. It is observed that among the fifty respondents 7+7 = 14 of them
Employee Job Satisfaction at Mercantile Bank
3737
disagreed, meaning, they are not happy with their compensation in response none of them
agreed to be happy with this organization by responding their answers either by disagreeing
or remaining neutral. Similar thing happens for the cases of those who are happy with
compensation tend to be also happy with the organization.
This Crosstab analysis precisely indicates Compensation is truly the indicator of their
happiness in the organization.
The Chi-Square Test table below was used to determine the probability of obtaining the
observed results by chance, under the given hypothesis. It is evident from the Chi Square test
that the P-value for this hypothesis test is .894which is more than 0.05 (alpha value).
Obviously, this sample is statistically significant. In words, these results indicate that the
obtained frequencies do not differ significantly from those that would be expected if all cell
frequencies were equal in the population. Hence the null hypothesis will be accepted which is
“Compensation is a factor for the job satisfaction of MBL employees.”
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 47.314a 16 .894a
Employee Job Satisfaction at Mercantile Bank
3737
Likelihood Ratio 49.812 16 .807a
Linear-by-Linear
Association
21.916 1 .828a
N of Valid Cases 50
a. 22 cells (88.0%) have expected count less than 5. The minimum
expected count is .42.
7.1.2 Supporting Hypotheses
From the previous hypothesis test it was determined that Compensation is definitely a factor
of job satisfaction. Now the other supporting hypotheses need to be proved in order to make
primary null hypothesis accepted.
Supporting Hypothesis 1
H0: MBL employees don’t like the nature of their work.
H1: MBL employees like the nature of their work.
Supporting Hypothesis 2
H0: MBL employees think that their job environment is unfriendly.
H1: MBL employees think that their job environment is friendly.
SupportingHypothesis3
H0: MBL employees think that their hard work is not appreciated.
H1: MBL employees think that their hard work is appreciated.
Supporting Hypothesis 4
H0: Poor relationship with peers is present among MBL employees.
H1: Strong relationship exists among the peers of MBL.
Supporting Hypothesis 5
H0: MBL employees don’t think that their job has security
H1: MBL employees think that their job has security
Employee Job Satisfaction at Mercantile Bank
3737
Supporting Hypothesis 6
H0: Employees do not have healthy relationship with Superiors
H1: Employees have healthy relationship with Superiors
Supporting Hypothesis 1
H0: MBL employees don’t like the nature of their work.
H1: MBL employees like the nature of their work.
I am happy with this organization * The job I do is interesting - Cross tabulation
Count
The job I do is interesting Total
Strongly
Disagree
Disagre
e
Neutra
l
Agree Strongly
Agree
I am happy with this
organization
Strongly
Disagree
2 4 1 0 0 7
Disagree 5 5 0 1 0 11
Neutral 1 1 1 8 1 12
Agree 0 0 2 5 2 9
Strongly
Agree
0 0 2 6 3 11
Total 8 10 6 20 6 50
Employee Job Satisfaction at Mercantile Bank
3737
Question number 1 and 18 were selected to build this hypothesis thus the cross tabulation
chart was prepared. It is observed that among the fifty respondents 8+10 = 18 of them
disagreed, meaning, they do not find their job nature to be interesting in response none of
them agreed to be happy with this organization by responding their answers either by
disagreeing or remaining neutral. Similar thing happens for the cases of those who are happy
with job nature have a propensity to be happy with the organization.
This Crosstab analysis precisely indicates job nature is the indicator of their happiness in the
organization.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 40.028a 16 .542a
Likelihood Ratio 48.938 16 .502a
Linear-by-Linear
Association
24.416 1 .521a
N of Valid Cases 50
a. 25 cells (100.0%) have expected count less than 5. The minimum
expected count is .84.
The Chi-Square Test table above was used to determine the probability of obtaining the
observed results by chance, under the given hypothesis. It is evident from the Chi Square test
that the P-value for this hypothesis test is .542which is more than 0.05 (alpha value). Hence
the null hypothesis will be accepted which is “MBL employees don’t like the nature of their
work”
Employee Job Satisfaction at Mercantile Bank
3737
Supporting Hypothesis 2
H0: MBL employees think that their job environment is unfriendly.
H1: MBL employees think that their job environment is friendly.
I am happy with this organization * I am provided adequate facilities to do my job - Cross tabulation
Count
I am provided adequate facilities to do my job Total
Strongly
Disagree
Disagre
e
Neutra
l
Agree Strongly
Agree
I am happy with this
organization
Strongly
Disagree
2 3 2 0 0 7
Disagree 4 3 2 2 0 11
Neutral 1 1 3 3 4 12
Agree 0 0 0 4 5 9
Strongly
Agree
0 0 0 3 8 11
Total 7 7 7 12 17 50
Employee Job Satisfaction at Mercantile Bank
3737
Question number 6 & 7 were designed to prove the Supporting Hypothesis No. 2 however,
question 6 was used in the analysis to prove whether the hypothesis to be accepted or
rejected.
Question number 6 and 18 were selected to build this hypothesis thus the cross tabulation
chart was prepared. It is observed that among the fifty respondents 14 of them disagreed,
meaning, they do not have adequate facilities to do the job in response none of them agreed to
be happy with this organization by responding their answers either by disagreeing or
remaining neutral. Similar thing happens for the cases of those who are happy with job nature
have a propensity to be happy with the organization.
This Crosstab analysis precisely indicates job nature is the indicator of their happiness in the
organization.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 37.386a 16 .698a
Likelihood Ratio 48.254 16 .603a
Linear-by-Linear
Association
27.149 1 .645a
N of Valid Cases 50
a. 25 cells (100.0%) have expected count less than 5. The minimum
expected count is .98.
The Chi-Square Test table above was used to determine the probability of obtaining the
observed results by chance, under the given hypothesis. It is evident from the Chi Square test
that the P-value for this hypothesis test is .698which is more than 0.05 (alpha value). Hence
the null hypothesis will be accepted which is “MBL employees think that their job
environment is unfriendly”
Employee Job Satisfaction at Mercantile Bank
3737
Supporting Hypothesis 3
H0: MBL employees think that their hard work is not appreciated.
H1: MBL employees think that their hard work is appreciated
I am happy with this organization * I am appreciated for my hard work – Cross tabulation
Count
I am appreciated for my hard work Total
Strongly
Disagree
Disagre
e
Neutra
l
Agree Strongly
Agree
I am happy with this
organization
Strongly
Disagree
3 4 0 0 0 7
Disagree 2 8 1 0 0 11
Neutral 0 2 2 6 2 12
Agree 0 0 2 4 3 9
Strongly
Agree
0 0 1 10 0 11
Total 5 14 6 20 5 50
Employee Job Satisfaction at Mercantile Bank
3737
Question number 5 and 18 were selected to build this hypothesis thus the cross tabulation
chart was prepared. It is observed that among the fifty respondents 17 out of 19 disagreed, to
the statement that MBL employees think that their hard work is appreciated at the same time
these respondents none of them agreed to be happy with this organization by responding their
answers either by disagreeing or remaining neutral. Similar thing happens for the cases of
those who are happy with job nature have a propensity to be happy with the organization.
This Crosstab analysis precisely indicates appreciation of hard work is the indicator of their
happiness in the organization.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 52.628a 16 .751a
Likelihood Ratio 61.902 16 .706a
Linear-by-Linear
Association
27.509 1 .789a
N of Valid Cases 50
a. 25 cells (100.0%) have expected count less than 5. The minimum
expected count is .70.
The Chi-Square Test table above was used to determine the probability of obtaining the
observed results by chance, under the given hypothesis. It is evident from the Chi Square test
that the P-value for this hypothesis test is .698which is more than 0.05 (alpha value). Hence
the null hypothesis will be accepted which is “MBL employees think that their job
environment is unfriendly”
Employee Job Satisfaction at Mercantile Bank
3737
Supporting Hypothesis 4
H0: Poor relationship with peers is present among MBL employees.
H1: Strong relationship exists among the peers of MBL.
I am happy with this organization * The peers/colleagues are friendly with me - Cross tabulation
Count
The peers/colleagues are friendly with me Total
Strongly
Disagree
Disagre
e
Neutra
l
Agree Strongly
Agree
I am happy with this
organization
Strongly
Disagree
4 2 1 0 0 7
Disagree 2 5 3 1 0 11
Neutral 1 1 4 5 1 12
Agree 0 0 2 3 4 9
Strongly
Agree
0 0 3 2 6 11
Total 7 8 13 11 11 50
Employee Job Satisfaction at Mercantile Bank
3737
Question number 2 and 18 were selected to build this hypothesis thus the cross tabulation
chart was prepared. It is observed that among the fifty respondents 13 out of 14 disagreed, to
the statement that they have poor relationship with peers at the same time these respondents
none of them agreed to be happy with this organization by responding their answers either by
disagreeing or remaining neutral. Similar thing happens for the cases of those who are happy
with peers have a propensity to be happy with the organization. This Crosstab analysis
precisely indicates peer relationship is the indicator of their happiness in the organization.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 40.914a 16 .596a
Likelihood Ratio 44.381 16 .521a
Linear-by-Linear
Association
26.143 1 .561a
N of Valid Cases 50
a. 25 cells (100.0%) have expected count less than 5. The minimum
expected count is .98.
The Chi-Square Test table above was used to determine the probability of obtaining the
observed results by chance, under the given hypothesis. It is evident from the Chi Square test
that the P-value for this hypothesis test is .596 which is more than 0.05 (alpha value). Hence
the null hypothesis will be accepted which is “Poor relationship with peers is present among
MBL employees”
Employee Job Satisfaction at Mercantile Bank
3737
Supporting Hypothesis 5
H0: MBL employees don’t think that their job has security
H1: MBL employees think that their job has security
I am happy with this organization * The job security is low - Cross tabulation
Count
The job security is low Total
Strongly
Disagree
Disagre
e
Neutra
l
Agree Strongly
Agree
I am happy with this
organization
Strongly
Disagree
2 3 2 0 0 7
Disagree 4 5 0 2 0 11
Neutral 1 1 2 8 0 12
Agree 0 0 1 6 2 9
Strongly
Agree
0 0 1 6 4 11
Total 7 9 6 22 6 50
Employee Job Satisfaction at Mercantile Bank
3737
Question number 16 and 18 were selected to build this hypothesis thus the cross tabulation
chart was prepared. It is observed that among the fifty respondents 14 of the respondents
were not satisfied with the organization out of 16 who disagreed, to the statement that the job
security is low. Similarly no relation in job satisfaction and job security was found from this
crosstab analysis. This Crosstab analysis fails to indicate any relationship between job
security and job satisfaction. However by the Chi-square test it will be apparent whether the
hypothesis would be rejected or not.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 39.823a 16 .000
Likelihood Ratio 48.466 16 .000
Linear-by-Linear
Association
25.344 1 .000
N of Valid Cases 50
a. 24 cells (96.0%) have expected count less than 5. The minimum
expected count is .84.
The Chi-Square Test table above was used to determine the probability of obtaining the
observed results by chance, under the given hypothesis. It is evident from the Chi Square test
that the P-value for this hypothesis test is .000 which is obviously less than 0.05 (alpha
value). Hence the null hypothesis will be rejected thus the alternative hypothesis becomes
true. So, “MBL employees think that their job has security”
From this hypothesis testing basically we can refer to another statement which can be written
in the light of the primary hypothesis and that is, Job security is not a factor that affects the
job satisfaction.
Employee Job Satisfaction at Mercantile Bank
3737
Supporting Hypothesis 6
H0: Employees do not have healthy relationship with Superiors
H1: Employees have healthy relationship with Superiors
I am happy with this organization * My superior seems to care about me as a person - Cross tabulation
Count
My superior seems to care about me as a person Total
Strongly
Disagree
Disagre
e
Neutra
l
Agree Strongly
Agree
I am happy with this
organization
Strongly
Disagree
2 5 0 0 0 7
Disagree 4 3 3 1 0 11
Neutral 0 2 3 6 1 12
Agree 0 0 0 4 5 9
Strongly
Agree
0 0 1 4 6 11
Total 6 10 7 15 12 50
Employee Job Satisfaction at Mercantile Bank
3737
Question number 11 & 12 were designed to prove the Supporting Hypothesis No. 6 however,
question 12 was used in the analysis to prove whether the hypothesis to be accepted or
rejected. Here Question 12 and 18 were selected to build this hypothesis thus the cross
tabulation chart was prepared. It is observed that among the fifty respondents 16 of the
respondents answered negative about superior’s relation and 14 of those respondents were not
satisfied with the organization. So, Relationship with supervisor is also a factor of job
satisfaction.
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 48.984a 16 .077a
Likelihood Ratio 57.372 16 .087a
Linear-by-Linear
Association
30.473 1 .812a
N of Valid Cases 50
a. 25 cells (100.0%) have expected count less than 5. The minimum
expected count is .84.
The Chi-Square Test table above was used to determine the probability of obtaining the
observed results by chance, under the given hypothesis. It is evident from the Chi Square test
that the P-value for this hypothesis test is .077 which is more than 0.05 (alpha value). Hence
the null hypothesis will be accepted which is “Employees do not have healthy relationship
with Superiors”
Employee Job Satisfaction at Mercantile Bank
3737
8.0 Correlation
8.1 Correlation among three Dependent variables
In this phase of analysis three of Dependent variables were correlated using the Bi-variate
option.
CorrelationsI am happy
with this
organization
I would like to
stay in this
organization
for long
I will
encourage my
family
members &
friends to join
this
organization
I am happy with this
organization
Pearson Correlation 1 .751** .783**
Sig. (2-tailed) .000 .000
N 50 50 50
I would like to stay in this
organization for long
Pearson Correlation .751** 1 .672**
Sig. (2-tailed) .000 .000
N 50 50 50
I will encourage my family
members & friends to join
this organization
Pearson Correlation .783** .672** 1
Sig. (2-tailed) .000 .000
N 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
From the above table it is seen that there is a High to moderate correlation among the
dependent variables.
Employee Job Satisfaction at Mercantile Bank
3737
8.2 Correlation among Dependents & Independent Variables
Correlations
I am happy
with this
organization
The job I do
is
interesting
The
peers/colleague
s are friendly
with me
I am
appreciated
for my hard
work
I am happy with this
organization
Pearson
Correlation
1 .706** .730** .749**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
The job I do is
interesting
Pearson
Correlation
.706** 1 .652** .788**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
The peers/colleagues
are friendly with me
Pearson
Correlation
.730** .652** 1 .666**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
I am appreciated for
my hard work
Pearson
Correlation
.749** .788** .666** 1
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
From the above table most of the variables are having correlations ranging .6 to .8 reflecting
Moderate to High level of correlation with each other.
Employee Job Satisfaction at Mercantile Bank
3737
8.3 Correlation among Dependents & Independent Variables (cont’d)
Correlations
I am happy with
this organization
The job
security is
low
My superiors
motivate me to
work better
I am provided
adequate
facilities to do
my job
I am happy with
this organization
Pearson
Correlation
1 .719** .789** .744**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
The job security
is low
Pearson
Correlation
.719** 1 .792** .787**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
My superiors
motivate me to
work better
Pearson
Correlation
.789** .792** 1 .780**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
I am provided
adequate
facilities to do
my job
Pearson
Correlation
.744** .787** .780** 1
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
From the above table most of the variables are having correlations ranging .7 to .8 reflecting
High level of correlation with each other.
Employee Job Satisfaction at Mercantile Bank
3737
9.0 Regression Analysis
Regression analysis is a statistical tool for the investigation of relationships between
variables. It is a very significant part of this research where the relationship between the
dependent variables and the independent variables are sought out. The correlation helps to
draw important conclusion regarding the research topic as well as the validity of the entire
research procedure. At the time of doing this research I have identified one dependent
variable and eight independent variables.
Employee Job Satisfaction at Mercantile Bank
3737
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) -.001 .333 -.003 .997
The job I do is
interesting
.053 .156 .051 .337 .738
The peers/colleagues are
friendly with me
.236 .130 .233 1.823 .075
I am appreciated for my
hard work
.207 .177 .186 1.171 .248
I am provided adequate
facilities to do my job
.140 .146 .149 .960 .342
My superiors motivate
me to work better
.273 .172 .279 1.586 .120
The job security is low .054 .164 .051 .330 .743
a. Dependent Variable: I am happy with this organization
The above output can be written in the form of a predicted equation as follows:
Job Satisfaction, Y= -0.001 + 0.053*(job nature) + 0.236*(peers relationship) +
0.207*(hard work appreciation) + 0.140*(work environment) + 0.273*(superiors
relationship) + 0.054*(job security)
This equation basically suggests that the Job Satisfaction (Y) is affected by these factors.
Somehow the Job nature and Job security has a little impact on the level of Job Satisfaction
showing the smaller coefficient with the variables.
From the Regression analysis table it is also seen that all of the factors’ level of significance
are more than 5% or 0.05. That indicates the presence of strong relationship between the
dependent variable and the Independent factors.
Employee Job Satisfaction at Mercantile Bank
3737
9.1 Model Variability
Model Summary
Mode
l
R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .844a .712 .672 .782
a. Predictors: (Constant), The job security is low, The
peers/colleagues are friendly with me, The job I do is interesting, I
am provided adequate facilities to do my job, I am appreciated for
my hard work, My superiors motivate me to work better
9.2 ANOVA
ANOVAb
Model Sum of
Squares
df Mean Square F Sig.
1 Regression 65.014 6 10.836 1.739 .152
Residual 26.266 43 .611
Total 91.280 49
a. Predictors: (Constant), The job security is low, The peers/colleagues are friendly with me,
The job I do is interesting, I am provided adequate facilities to do my job, I am appreciated for
my hard work, My superiors motivate me to work better
b. Dependent Variable: I am happy with this organization
By the Test of ANOVA basically the F test will be performed.
The calculated “F value” is 1.739
The critical “F value” for this is dF8, 71= 2.32
Calculated F Value < Critical F value.
Therefore I cannot reject the null hypothesis which is “Compensation is not the only factor
that affects Job Satisfaction”.
Employee Job Satisfaction at Mercantile Bank
3737
10.0 Recommendations
It is seen from the survey that Mercantile Bank Limited has failed to keep its employees
motivated due to the various reasons. This report point outs the reasons because of which the
MBL employees are dissatisfied. Now it will be easier for the MBL to improve this condition
as MBL will have the reasons for the job dissatisfaction of their employees. In order to
improve in these areas, MBL can take the following measures to improve the condition to
some extent.
10.1 Increase the number of Employees
It is apparent that the Mercantile Bank Limited is understaffed and as a result each individual
has to do work more than ones share of work. The pressure gets intense for the employees at
the time of budgeting and forecasting. In many cases the employees has to work till 9.00PM
at night. This creates dissatisfaction among the employees and demotivates them when in
return they are not provided with incentives.
10.2 Keep the employees motivated
The employees at Mercantile Bank Limited are highly demotivated. Majority of them
actively or passively think of leaving the job and the lack of incentive leaves them desperate.
10.3 Reduce discrimination
There are various cases of discrimination which leaves the employees feel small. However
the discrimination in terms of salary, bonus and promotion plays a major role in the job
dissatisfaction of MBL employees.
Employee Job Satisfaction at Mercantile Bank
3737
10.4 Improve department Coordination
From the personal interviews it became clear that the lack of coordination between
departments results in the job dissatisfaction. Lack of coordination makes the workplace
environment unfriendly as there is no bonding between the employees. Top level
management should make sure that all of their departments are coordinated otherwise it will
be a major problem for them in future.
10.5 Increase HR involvement with the Employees
The HR can play a significant role in ensuring the employees are treated right and are
motivated. But as seen there is lack of coordination between HR and other departments which
is creating more problems internally.
10.6 Create opportunities to be heard
Even though it is often seen in the bank that the employees are encouraged to step forward if
they feel they are not treated right and that they have the right to be heard. But in reality this
is not followed in Mercantile Bank Limited.
10.7 A pay rise
Majority of the MBL employees are not satisfied with their salary. As living cost is
increasing it is necessary to increase their salary. It is seen that their salary are not adjusted
even though every year we are having at least 6% inflation. It means same money but the
value of their money is less. They need to spend more money but they are not earning more.
It makes them dissatisfied.
10.8 Appraisal for the better performance
I have seen the MBL employees in my internship period. They work like machines, they put
their soul in the work but after doing a job they don’t get any appraisal for their superior
Employee Job Satisfaction at Mercantile Bank
3737
performance. Higher salary is not the only thing that an employee wants, they also need
appraisal to feel valued and affirmed in the organization.
10.9 Work-life Balance
Most of the time MBL employees have to work till 7.00pm at night. I have talked with some
employees of MBL. Two of them live in Mohammadpur, they need to catch bus to go to their
home and they reach their home around 9.30pm because of traffic jam. After reaching home
they don’t get any energy to engage in personal interest. MBL should hire more employees
and reduce the burden form the shoulder of these employees so that they can leave their
office early and can reach their home soon and this is how they will have the work-life
balance. If there is work-life balance then MBL employees will be satisfied and will work
even better.
10.10 Superior Work Environment
As we all know we all like to work in a place where we have people of similar thoughts and
whom we can call as friends. It’s a psychological effect where people feel more motivated
towards their work and love their workplace. Superior work environment should be created to
reduce the dissatisfaction level of the MBL employees. Majority of the MBL employees have
complains about their current environment. Most of the employees work as an individual and
they don’t open them to the employees. But in an organization like Mercantile Bank Limited
it is necessary to work collectively.
10.11 Job Rotation Should Take Place
Employees do the same thing again and again. This also makes them dissatisfied with their
job. If job rotation takes place then they will have something new to do. This is how they can
enjoy their nature of work and will not be bored.
10.12 Two Way Communications
Employee Job Satisfaction at Mercantile Bank
3737
I have observed that majority of the time in MBL there is one way communication. Manager
gets order from his superior and he gives orders to his subordinates. They also do the same
thing. There is a huge communication gap between the top level management of MBL and
the operation level team. However we know that the operation level team deals with the
customers, if the top level management don’t include them in decision making process then
communication gap occurs. That’s when MBL employees start not feeling valued and
affirmed. So it is very necessary to have two way communications in MBL.
10.13 Training and workshops
For MBL employees more training programs and workshops should be arranged. As majority
of the employees think that they don’t have any opportunity to learn new things in MBL. By
this kind of training programs employees will learn new things and that’s how they will be
updated thus this will reduce their dissatisfaction level.
10.14 Necessary materials and equipment should be available
Necessary materials and equipments shouldbe available. Majority of the employees face
trouble with finding all the necessary resources to do their work properly what is no ways
good for any organizations as if you don’t put fuel in the machine then no way that machine
can provide you with any useful output the same way if you don’t equip your employees with
right sort and amount of equipments then they will not be of any use too.
11.0 Limitations of the study
As the research and survey is limited in area, it will not represent the entire population, in this
case all the MBL employees. Limitations that I have faced at the time of preparing this report
are discussed below:
Employee Job Satisfaction at Mercantile Bank
3737
Result that appear after conducting this study may not reflect the same situation for all the
branches of MBL as this study is only based on the opinions of respondents of three
branches.
This research may not contain the actual scenario of the respected topic as the sample size is
not that large.
Lack of comprehension of the respondents is one of the major problems that may create
confusions regarding verification of conceptual questions.
Every organization has their own secrecy that in not revealed to others. This might be another
problem for which the result can be manipulated.
Time and cost are the key constraints of my report. Due to lack of time and increased cost I
could not raise my total sample size. Therefore lower sample size means more estimation
error.
The survey may not reflect the true intention of the employees. I couldn't be sure whether the
answers given by the respondents were genuine or vague. They might have filled up the
questionnaire without getting into the subject matter properly, which created response bias.
The research looks at initial preferences. Further research can take place in creation of a
strong brand inquiry.
There always remains the uncertainty about the cooperation of people at all level of this
research.
12.0 Conclusion
After doing the research I have found that most of those employees of Mercantile Bank
Limited are disappointed with their job are because of several factors. The factors are Job
nature, relationship with peers, hard work appreciation, facilities to do the job, relationship
with superiors, Job security, and last but not the least, Compensation. A significant portion of
Employee Job Satisfaction at Mercantile Bank
3737
the MBL employees are young people and we know that Young people often have a fall back
option that is mostly their parents on which they can depend on to some extent and that plays
a role in making them think it is safe to try for another job. Since they are opportunists in
nature, they tend to find the earliest chance to grab a promotion and move vertically upward
through the hierarchy. Discriminations between employees and departments, the lack of
coordination between departments have been a major deal breaker for the MBL employees. It
does have its flaws when it comes to employees’ satisfaction. In Bangladesh currently there
are more than 60 banks and a lot more financial institutions are operational. And for the
finance people who have been working in these financial institutions have quite a number of
options when it comes to switching jobs. Especially since the employees at Mercantile Bank
Limited are quite dissatisfied with their job they can leave their job for their reasons. It will
be a major disadvantage for Mercantile Bank Limited as these employees are trained and
experienced. If they start quitting then MBL will face significant loss in future. Now it’s time
for MBL to buckle up and make these dissatisfied employees satisfy so that they can remain
competitive.
Employee Job Satisfaction at Mercantile Bank
3737
Appendix
Employee Job Satisfaction at Mercantile Bank
3737
Strength of the Relationship: Pearson's Correlation Coefficient
At this point, we can identify the direction of a linear relationship (positive or negative). The
next step is to figure out how STRONG the relationship is between the two variables.
The most popular way to measure the degree of association between two interval level
variables is the Pearson's correlation coefficient. It is usually represented by the letter "r"
(think "relationship"). This coefficient ranges from -1 to 1, including 0. Each level of
measurement has an appropriate test of association. Ask your evaluator about this.
Values closer to +1 indicate a positive relationship. Values closer to -1 indicate a negative
relationship. Values closer to 0 represent the absence of a relationship between two variables.
We have learned that a perfect positive or negative correlation is very rare. In fact, even the
strongest correlations we see in the real world fall short of the ranges suggested in textbooks.
Below is a reference on how to interpret correlation coefficients. Keep in mind that the same
interpretation also applies to negative correlations.
Correlation Coefficient Interpretation
.00 - .19
.20 - .39
.40 - .69
.70 - .89
.90 - 1.00
Slight, almost negligible correlation
Low, quite small correlation
Moderate correlation
High correlation
Very high correlation
Employee Job Satisfaction at Mercantile Bank
3737
Internship Proposal
Topic: Employee Job Satisfaction Level at Mercantile Bank Limited
Submitted To:
Eng. Golam Dustogir Senior Lecturer
School of BusinessBangladesh University
Submitted By:Shajhan Shiraz
ID# 200811119055
Date of Submission: 23th September 2011
Bangladesh University
Introduction
I am interested to work on ‘Employee Job Satisfaction Level at Mercantile Bank
Limited.’ I have started working with The Mercantile Bank Limited, as an intern from Jully
Employee Job Satisfaction at Mercantile Bank
3737
3rd 2011 to present. During my internship, I worked with the General Banking Section,
Foreign Exchange Department and Mobile Banking Division of the Bank. I saw the
Relationship Managers (RMs) daily workings. I observed on different functions regard the
credit administrative division, corporate & investment banking division, Foreign Exchange
Section as well as the General Banking section so I have worked with different people around
me during my intern. During my work with employees I observed that many of the
employees are somehow dissatisfied with their job. This has inspired me to work with this
topic and measure the Employee Job Satisfaction Level at Mercantile Bank Limited.
Objectives:
The objective of the study is to find out the employee job satisfaction at Mercantile Bank
Limited. This study will attempt to establish a linear model between the variables and hence
will try to quantify the relationship in a linear equation. Various other tests will be done in an
attempt to identify a proper statistical relationship. Moreover, it will help to improve the
employee’s performances.
Broad objective
To find out the reasons behind the job dissatisfaction among the employees of
Mercantile Bank Limited.
Specific objective
To present an overview and brief introduction of Mercantile Bank Limited.
To find out what may occur if employees are dissatisfied.
The possible ways of reducing the dissatisfaction level of the employees of
Mercantile Bank Limited.
Significance of the study:
The study is primarily an internship report but still it will be aimed at helping the
management to identify the factors that increases the job satisfaction level of employees. The
Employee Job Satisfaction at Mercantile Bank
3737
statistical relationship will help to determine which factors are most important so that the
management can focus on those factors. Understanding these factors will be key success of
increasing the satisfaction level of Customers. Moreover the study will help my faculty to
understand the factors that influence employee’s performance to other factors of the bank. So
purpose of conducting this research is to find out the following factors:
This study will help MBL to gain more knowledge about the satisfaction level of the
employees and will help them to redefine their strategies to increase productivity.
It will also assist in developing new ways to keep the employees motivated and
reduce cost due to arranging training and workshops.
We will be able to get a brief overview of the employee satisfaction level in Financial
Sectors in Bangladesh especially in MBL.
Hypothesis Testing:
Primary Hypothesis:
Null Hypothesis: H0: Compensation is not the only factor that affects Job Satisfaction in
MBL.
Alternative Hypothesis: H1: Compensation is the only factor that affects Job Satisfaction in
MBL.
Supporting Hypothesis (1):
Null Hypothesis: H0: MBL employees do not like the nature of their work.
Alternative Hypothesis: H1: MBL employees like the nature of their work.
Supporting Hypothesis (2):
Null Hypothesis: H0: MBL employees think that their job environment is unfriendly.
Alternative Hypothesis: H1: MBL employees think that their job environment is friendly.
Supporting Hypothesis (3):
Employee Job Satisfaction at Mercantile Bank
3737
Null Hypothesis: H0: MBL employees think that their hard work is not appreciated.
Alternative Hypothesis: H1: MBL employees think that their hard work is appreciated.
Supporting Hypothesis (4):
Null Hypothesis: H0: Poor relationship with peers is present among the MBL employees.
Alternative Hypothesis: H1: Strong relationship exists among the peers of MBL.
Supporting Hypothesis (5):
Null Hypothesis: H0: MBL employees don’t think that their job has security.
Alternative Hypothesis: H1: MBL employees think that their job has security.
Supporting Hypothesis (6):
Null Hypothesis: H0: MBL employees do not have healthy relationship with Superiors.
Alternative Hypothesis: H1: MBL employees have healthy relationship with Superiors.
Methodology:
The study is based on primary data collected from the banks information and
allowances given to employees. Every month an internal MIS report is created so that
performance of each branch can be measured. These data have been used in this
report. Additionally for technical reference, some websites have been quoted in the
report which will help to further clarify the statistical relationship.
Primary data sources are the questionnaires filled up by the employees of MBL.
The secondary data sources are annual reports, manuals, and brochures of The
Mercantile Bank Limited and different publications of Bangladesh Bank.
The Eight weeks internship program will take to work in every department in order to have
an overview of the total corporate banking. My organizational supervisor is helping me a lot
Employee Job Satisfaction at Mercantile Bank
3737
while working in every division of the bank. Keeping this view in mind I will prepare a
report, which will be divided in two parts. Thus the structure of this report is two folded.
1. Organizational Part.
2. Project Part.
The organizational part of this report will composed of a very brief Performances, Activities
and satisfaction of employees of the bank.
The Project part will cover the Employee Job Satisfaction Level at Mercantile Bank Limited
Bangladesh. This will refer how the bank will serve the customers in corporate & investment
banking, Head Office.
The results of the regression analysis is interpreted and in the Regression Analysis, it is
observed that the independent variables that affect the dependent variables (Employees
Satisfaction) are Salary Package, Monetary Reward, Job Security, Holiday Planning, Time
for friends and family, clearly established career path, cooperativeness of subordinates,
Cleanliness, Computer facilities etc.
Limitations of the Study:
The major limitation of the study is that it does not have any primary data. All data have been
collected from Consumer Banking division, which have been originally collected for a
different purpose.
Secondly, there might be other factors than the variables mentioned in the report that can
affect credit card sales. So those variables may be important but might skip this report. So
this is another major limitation.
Time limitation: The time limit to finish the report was 15 days. I could not work on
the project during my internship in Mercantile Bank Limited because of the workload
Employee Job Satisfaction at Mercantile Bank
3737
there, but later continuous strike, uncertainty over meeting key personnel, led to
uncertainty and frustration over the deadline.
Data collection: collecting data through all the filtering and getting approval to use
these data was difficult.
Budget of the Study:
Financial Budget:
Type of Cost Estimated Cost (tk)
Conveyances/ Transportation 4000
Printing and Binding 2000 - 3000
Others 1000
Total 8000
Time Frame:
Report Progress Weeks Tentative Date
Research Proposal Submission 1 4th April 2011
Questionnaire Submission 1 4th April 2011
Secondary Data Collection 1-2 4th April 2011
Literature Review 1-2 4th April 2011
Survey 1 4th April 2011
Data Analysis 1-2 4th - 11th April 2011
Report Writing 2 11th April 2011
Draft Submission 2 20th April 2011
Finalization 2-3 20th – 28th April 2011
Report Submission 3 28th April 2011
Submission Date:
Before the end of the semester (April 28th, 2011).
Employee Job Satisfaction at Mercantile Bank
3737
Survey QuestionnaireAll the information you provide will be used only for academic purpose and your identity will be kept
anonymous and confidential. Thanks in advance for your co-operation.
No. Statements Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
01. The job I do is interesting
02. The peers/colleagues are friendly with me
03. I am fully able to use my skills in this position
04. I feel overwhelmed by my responsibilities at work
05. I am appreciated for my hard work
06. I am provided adequate facilities to do my job
07. The work environment is wonderful
08. My opinion has value to others
09. I am happy with my compensation
10. My values fit with the organizational values
11. My superiors motivate me to work better
12. My superior seems to care about me as a person
13. I am given adequate freedom to do my job
efficiently
14. I have plans to switch this job
15. I am kept informed about the activities that go on in
my organization.
16. The job security is low
17. The workload is too high
18. I am happy with this organization
19. I would like to stay in this organization for long
20. I will encourage my family members & friends to
join this organization
Age: _________ Gender: Male / Female
Employee Job Satisfaction at Mercantile Bank
3737
Survey Questionnaire (For Hypothesis Testing)All the information you provide will be used only for academic purpose and your identity will be kept
anonymous and confidential. Thanks in advance for your co-operation.No. Statements Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
01. The job I do is interesting Supporting Hypothesis 1
02. The peers/colleagues are friendly with me Supporting Hypothesis 4
03. I am fully able to use my skills in this position
04. I feel overwhelmed by my responsibilities at work
05. I am appreciated for my hard work Supporting Hypothesis 3
06. I am provided adequate facilities to do my job Supporting Hypothesis 2
07. The work environment is wonderful
08. My opinion has value to others
09. I am happy with my compensation Primary Hypothesis
10. My values fit with the organizational values
11. My superiors motivate me to work better Supporting Hypothesis 6
12. My superior seems to care about me as a person
13. I am given adequate freedom to do my job
efficiently
14. I have plans to switch this job
15. I am kept informed about the activities that go on in
my organization.
16. The job security is low Supporting Hypothesis 5
17. The workload is too high
18. I am happy with this organization Dependent variables
19. I would like to stay in this organization for long
20. I will encourage my family members & friends to
join this organization
Employee Job Satisfaction at Mercantile Bank
3737
Bibliography
Retrieved from Mercantile Bank Limited. Website on April 20, 2011 from
http://www.mblbd.com/
Gruneberg, M. M. (1979). Understanding job satisfaction . New York: Wiley.
Hagedorn, L. S. (2000). What contributes to job satisfaction among faculty and staff .
San Francisco, Calif.: Jossey-Bass Publishers.
Richardson, P., Moorhead, G., & Griffin, R. W. (1992). Study guide for
Moorhead/Griffin: Organizational behavior : managing people and organizations
(3rd ed.). Boston: Houghton Mifflin. Griffin and Denisi (2005) Second Ed, Human
resource Management.
Malhotra, N. K. (2007). Fundamentals of marketing research . Thousand Oaks, CA:
Sage Publications. Rashid and Archer (1983) Organizational Behavior
Mercantile Bank Limited Annual Report 2010
Retrieved from BMS Website on March 30, 2011http://bms.co.in/829/
Retrieved from Wikipedia Website on March 30,
2011http://en.wikipedia.org/wiki/Two-factor_theory
Retrieved from Wikipedia Website on March 30,
2011http://en.wikipedia.org/wiki/Job_satisfaction
Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work:
Test of a theory. Organizational Behavior and Human Performance, 16, 250-279.
Rafaeli, A., & Sutton, R. I. (1989). The expression of emotion in organizational life.
Research in Organizational Behavior, 11, 1–42.
Brief, 1998 cited in Weiss, H. M. (2002). Deconstructing job satisfaction: separating
evaluations, beliefs and affective experiences. Human Resource Management Review,
12, 173-194, p. 174
Bowling, N.A. (2007). Is the Job Satisfaction-Job Performance Relationship Spurious:
A Meta-Analytic Examination. Journal of Vocational Behavior, 71, 167-185
Judge, T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001). The job
satisfaction-job performance relationship: A qualitative and quantitative review.
Psychological Bulletin, 127(3), 376-407.
Cote S.,Morgan LM (2002).A longitudinal analysis of the association between
emotion regulation, job satisfaction, and intentions to quit. Journal of Organizational
Behavior vol 23, 947–962
Employee Job Satisfaction at Mercantile Bank
3737
Saari, L. M., & Judge, T. A. (2004). Employee attitudes and job satisfaction. Human
Resource Management, 43, 395-407
Retrieved from utexas.edu Website on April 02, 2011
http://www.ma.utexas.edu/users/davis/375/popecol/tables/f005.html
The effects of employee satisfaction, organizational citizenship behavior, and
turnover on organizational effectiveness: A unit-level, longitudinal study By Koys,
Daniel J Publication: Personnel Psychology Date: Sunday, April 1 2001
Measurement of human service staff satisfaction: Development of the Job Satisfaction
Survey Paul E. Spector
Job Satisfaction in Banking: A Study of Private and Public Sector Banks Monika
Thakur Article provided by IUP Publications in its journal The IUP Journal of Bank
Management. Volume (Year): VI (2007) Issue (Month): 4 (November) Pages: 60-68
Ryan AM, Schmit MJ, Johnson R. (1996). Attitudes and effectiveness: Examining
relations at an organizational level. PERsoNNEL PSYCHOLOGY, 49, 853-882.
Ostroff C. (1992). The relationship between satisfaction, attitudes, and performance:
An organizational-level analysis. Journal of Applied Psychology, 77, 963-974.
Iaffaldano MT, Muchinsky PM. (1985). Job satisfaction and job performance: A
metaanalysis. Psychological Bulletin, 97,251-273.
Employee Job Satisfaction at Mercantile Bank