Employee Job Satisfaction of Al-Arafah Islami Bank Limited

“Employee Job Satisfaction of Al-Arafah Islami Bank Limited.”

CHAPTER: 1

Introduction

1.2 Significance of the report:

Education will be the most effective when theory and practice blends. Theoretical knowledge gets its perfection with practical application. And the internship is designed to bridge the gap between the theoretical knowledge and real application. We all know that there is no alternative of practical knowledge which is more beneficial than theoretical aspects. The prime reason of this study is to become familiar with the practical business world and to attain practical knowledge about the overall job satisfaction of the Banking and Corporate world, which is so much essential for each and every student to meet the extreme growing challenges in job market. Thus, it resonates to work on this topic.

1.3 Scope of the report:

In order to maintain the speed of development now banks must compete in the market place both with local institution as well as foreign ones. Since, working at Al-Arafah Islami Bank Ltd. Mirpur-10 Branch, get the opportunity to gain knowledge of the components that helps to retain job satisfaction of employees. The decisions and analyses are done based on the opinion of 15 respondents and practices applied at only this branch.

1.4 OBJECTIVES OF THE STUDY:

The study seeks to achieve the following objectives:

Broad Objective:

The broad objectives of the report are to orient the real life nature of the bank and to measure thejob satisfaction of the staffs of the AIBL.

Specific Objectives:

The followings specific objectives of the study are identified:

?To measure the level of job satisfaction of employees with respect to the company.

? To find out variables that trigger job satisfaction of the employees of AIBL.

1.5 METHODOLOGY OF THE STUDY:

Job satisfaction is defined as a collection of feelings that an individual holds toward his or her job. This definition is clearly broad one. A person’s job is more than just the obvious activities of shuffling papers, writing programming code, waiting on customers. Jobs require interaction with coworkers and bosses, following organizational rules and policies, meeting performance standards, living with working conditions that often less than ideal. This means that an employee’s assessment of how satisfied or dissatisfied he or she is with his job is a complex summation of a number of discrete job elements. For the findings part 15 questions were made to collect the valid data from all the employees of the branch and rating them in five criteria, like; strongly agree, agree, strongly disagree, disagree, and neutral.

1.5.1. Research Design:

Basically descriptive research design has been implemented. Survey method is used to collect the data. Personally interview technique has been used to conduct the survey.

Population: All employees of AIBL constitute population size of the study.

Sample Unit: This is the element or set of elements considered for selection in some stage of sampling .Sample elements of this study are each individual person.

Sample frame: Sample frame is a list that includes every member of the population from which a sample is to be taken. In this report sample frame has been identified by considering.

Sample Design: Sampling is a definite plan for obtaining a sample from a given population.

a. Sample Procedure: My sampling method for preparing this report is non-probability convenience sampling.

b. Sample Size: This sample size is 12.

1.5.2. Research Instruments:

Questionnaire: There would be one sets of questionnaire

?General way of measuring job satisfaction of employees.

Questionnaire pattern: There is a one set of questionnaires.

The set contains 10 questions where all questions are related to job satisfaction.

1.5.3. Data Management:

Sources of data:

The data used to furnish this report have been collected from the primary sources and secondary sources. Among primary and secondary sources most of the data have been collected from the secondary sources.

Primary Sources:

? Interview of the officers.

Secondary Sources:

? Annual Reports of Al-Arafah Bank Ltd.-2011

? Office circular and other published papers, documents and reports.

? Published specifications of different products in websites

Data Analysis & Reporting:

The qualitative analysis has been used to collect the data and to analyze the gathered data and different types of computer software’s were used for reporting the information from the analysis such MS word & excel.

Methods of Data collection:

For data collection “Interview method” was used. Interviews were taken with the officers and

Clients of AIBL, Mirpur-10 branch through questionnaire.

Data processing:

I have collected the data & then put them in to MS Excel. Finally the result was found.

1.6 LIMITATIONS OF THE STUDY:

This report is not free from limitations. Moreover, the topic is so much vast. I have faced some problems while preparing this report. The limitations acquainted with this report are as the problems:

• Time limitation– my internship program was about 12 weeks. This is fairly enough if I only concentrate on the report only but the thing is during this time i was busy to continue daily official activities .That’s why there was a time constraint to finish it within the specified timeframe.
• Lack of information- As the company operates globally lot of policies are made by the higher authority of foreign countries and as an intern I was not allowed to get all the information . So it was one of the problems I faced while preparing the report.
• Lack of communication- Since I had to spend all the working days in office each and every week so I did not have any scope to communicate with my supervisor to be informed about what aspects I need to include in my report.

2.10.Management Team of AIBL:

::: Managing Director :::

::: Deputy Managing Director :::

::: Executive Vice President :::

2.11. Activities Performed by AIBL staffs:

The internship period was December23 to March 23, 2013. In this three-month period various kinds of jobs were performed by me. I was involved with many jobs of bank that were usually done by the staffs of the branch of AI Bank Ltd, Dhaka. The staffs encouraged me a lot to involve myself with the banking jobs. Many varieties of jobs were attempted by me within the required period like; Money Gram, Loan providing process, bill collection, pay order register, account opening procedures, Statistical Banking Schedule. During my internship period except cash collection I did other job of the bank with full attention and sincerity.

2.11.1. Filling up the Account Opening Forms:

Al -Arafah Islami Bank Ltd has its own printed forms supplied by the head office to its branches to distribute them for applying to open an account. When customers came to open an account I helped them out to filling up the forms. I also completed some of the incomplete forms. The particulars that have been recorded in the forms by the bank are the full name, address, occupation, photograph, specimen signature etc of the account holder and his introducer. The particulars are essential for identification of the account holders individually so that the banker can discharge his obligations to everyone correctly and to the extent due.

2.11.2. Filling up the FDR Forms:

FDR forms are same as the account opening forms. Customers need to fill up the same information in the forms. Except this they need to carry two copies of photographs and photocopy of their National Id or Voter Id card. I helped the customer to fill up the forms and completed the incomplete forms.

2.11.3. Data Entry and work in credit Department:

In the credit section my job was to help the individuals who come to receive their loan from the bank. There were various types of loan with various facilities. For taking loan there was one kind of forms and for the others there was another kind of forms. I helped the customers to fill up those forms. Except these I make data entry of those loan received.

2.11.4. Receiving phone calls:

Received some of the phone calls seeking information about remittance, FDR other bank related information.

CHAPTER: 3

Theoretical Background

3.1 Definition of Human resource Management

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. According to Gary Dressler: The policies and practices involved in carrying out the people or human resources aspects of a management position including recruitment, screening, training , rewarding and appraising.

3. 2 Functions of Human Resource Management

1. HR planning

A. Job analysis

A.1.Job description

A.2. Job specification

B. forecasting demand and supply

2. Recruitment & selection

3. Training & development

4. Performance appraisal

5. Compensation

6. Motivation

7. Labor relationship

1. Human Resource Planning:

Human resource planning is the process of forecasting a firm’s future demand for and supply of the right type of people in the right number. It is only after this that the human resource management department can initiate the recruitment and selection process. Human resource planning is a sub-system in the total organizational planning. According to Vetter “Human Resource Planning is the process by which management determines how the organization should move from its current manpower position to its desired manpower position”.

A. Job analysis:

A job analysis is the process used to collect information about duties, responsibilities, necessary skills, outcomes and work environment of a particular job. The job analysis may include these activities:

A .1.Job Description:

A jab description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range.

A.2.Job Specification:

A job specification describes the knowledge, skills, education, experience, and abilities which are essential to performing a particular job for individuals. The job specification is developed from the job analysis. Experience, education, required skills, knowledge and characteristics are the components of job specification.

B. Forecasting demand and supply:

Forecasting demand involves determining the numbers and kinds of personnel that an organization will need at some point in the future. Most managers consider several factors when forecasting future personnel needs.

Forecasting supply involves determining what personnel will be available. The two sources are internal and external: people already employed by the firm and those outside the organization.

2. Recruitment & Selection:

Recruitment is the process of findings and attracting qualified or suitable applicants to fill the vacancies. On the other hand selection is the process of hiring people for job. Right man right job is the main goal of selection.

3. Training and Development:

In the field of human resource management, training and development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. It has been known by several names, including human resource development, and learning and development. In simple terms, training and development refer to the imparting of specific skills, abilities and knowledge to an employee.

According to Gary Dessler– “Training is the process o teaching new employees the basic skills they need to perform their jobs”.

According to Gary Dessler– “Development means any attempt to improve future management performance imparting knowledge, changing attitude or increasing skills”.

4. Performance Appraisal:

A performance appraisal is a review and discussion of an employee’s performance of assigned duties and responsibilities. The appraisal is based on results obtained by the employee in his/her job, not on the employee’s personality characteristics. The appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify various or performance enhancement and to help promote professional growth.

5. Compensation:

Compensation is the reward or price for labor. The goal of compensation administration are to design the lowest cost pay structure that will attract, motivate and retain competent employees, and that also will be perceived as affair by this employees. Compensation may be both financial and non-financial. Compensation refers to all forms of pay or rewards going to employee and arising from their employment.

6. Motivation:

Motivation is defined as the process that initiates, guides and maintains goal- oriented behaviors. Motivation is what causes us to act whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge. It involves the biological emotional, social, cognitive forces that activate behavior. In every day usage, the term motivation is frequently use to describe why a person does something.

7. Labor relationship

Labor relations can refer broadly to any dealings between management and workers about employment conditions. Most commonly, however, labor relations refers to dealings between management and a workforce that is already unionized, or has the potential to become unionized

3.2. Job satisfaction

Despite having wide research work over the decades and common usages in our daily life, there is still dearth of unanimous definition of what job satisfaction refers to. Different authors have different approaches towards defining job satisfaction. Some of the most commonly cited definitions on job satisfaction are analyzed in the text that follows. Bullock defined job satisfaction as an attitude which results from a balancing and summation of many specific likes and dislikes experienced in connection with the job. Most acclaimed text book author Ricky W. Griffen defined it as an attitude that reflects the extent to which an individual is gratified by or fulfilled in his or her work.

Vroom in his definition on job satisfaction focuses on the role of the employee in the workplace. Thus he defines job satisfaction as affective orientations on the part of individuals toward work roles which they are presently occupying. Job satisfaction represents a combination of positive or negative feelings that workers have towards their work. Job satisfaction represents the extent to which expectations are and match the real awards. Job satisfaction is closely linked to that individual’s behavior in the work place. According to Smith it is an employee’s judgment of how well his or her job has satisfied his various needs.

Job satisfaction is a worker’s sense of achievement and success on the job. It is generally perceived to be directly linked to productivity as well as to personal well-being. Job satisfaction further implies enthusiasm and happiness with one’s work. Job satisfaction is the key ingredient that leads to recognition, income, promotion, and the achievement of other goals that lead to a feeling of fulfillment. Job satisfaction can be defined also as the extent to which a worker is content with the rewards he or she gets out of his or her job, particularly in terms of intrinsic motivation. The term job satisfaction refers to the attitude and feelings people have about their work. Positive and favorable attitudes towards the job indicate job satisfaction. Negative and unfavorable attitudes towards the job indicate job dissatisfaction. Job satisfaction is the collection of feeling and beliefs that people have about their current job. People’s levels of degrees of job satisfaction can range from extreme satisfaction to extreme dissatisfaction. In addition to having attitudes about their jobs as a whole. People also can have attitudes about various aspects of their jobs such as the kind of work they do, their coworkers, supervisors or subordinates and their pay. Job satisfaction is a complex and multifaceted concept which can mean different things to different people. Job satisfaction is usually linked with motivation, but the nature of this relationship is not clear. Satisfaction is not the same as motivation. Job satisfaction is more of an attitude, an internal state. It could, for example, be associated with a personal feeling of achievement, either quantitative or qualitative. We consider that job satisfaction represents a feeling that appears as a result of the perception that the job enables the material and psychological needs.

In order for an organization to be successful they must continuously ensure the satisfaction of their employees. Job satisfaction is defined as “an individual’s reaction to the job experience. There are various components that are considered to be vital to job satisfaction. These variables are important because they all influence the way a person feels about their job. These components include the following: pay, promotion, benefits, supervisor, co-workers, work conditions, communication, safety, productivity, and the work itself. Each of these factors figures into an individual’s job satisfaction differently. One might think that pay is considered to be the most important component in job satisfaction, although this has not been found to be true. Employees are more concerned with working in an environment they enjoy.

3.4. Theories of job satisfaction

There are numerous theories attempting to explain job satisfaction , but three conceptual frameworks seem to be more prominent

? Content Theories

? Process Theories

? Situational Theories

Content Theories:

Content theory is concerned with the needs people have in the workplace, how these needs rank, and the incentives that are needed to fulfill these needs.

Abraham Maslow’s theory of Need-Hierarchy

Fredrick Hertzberg “two factor theories

Process Theories

Variables that cause an increase in motivation, and more importantly, how these variables are related to each other that is called process theories .Furthermore, process theories provide more reasonable explanations behind our motivation.

Situational Theories

Job satisfaction is a function of a relatively finite and stable set of variables called Situational Characteristics and a broader based, fluid set of variables called Situational Occurrences. It was hypothesized that overall job satisfaction could best be predicted from a combination of Situational Occurrences and Situational Characteristics than by either alone. It was also hypothesized that Situational Occurrences play a dominant role in determining subsequent satisfaction with the job

3.5.Varibales affectig job satisfaction

Working Conditions

Because employees spend so much time in their work environment each week, it’s important for companies to try to optimize working conditions. Such things as providing spacious work areas rather than cramped ones, adequate lighting and comfortable work stations contribute to favorable work conditions. Providing productivity tools such as upgraded information technology to help employees accomplish tasks more efficiently contributes to job satisfaction as well.

Opportunity for Advancement

Employees are more satisfied with their current job if they see a path available to move up the ranks in the company and be given more responsibility and along with it higher compensation. Many companies encourage employees to acquire more advanced skills that will lead to the chance of promotion. Companies often pay the cost of tuition for employees taking university courses, for example. During an employee’s annual performance review, a supervisor should map out a path showing her what she needs to accomplish and what new skills she needs to develop in order to be on a track to advancement within the organization.

Workload and Stress Level

Dealing with a workload that is far too heavy and deadlines that are impossible to reach can cause job satisfaction to erode for even the most dedicated employee. Falling short of deadlines results in conflict between employees and supervisors and raises the stress level of the workplace. Many times, this environment is caused by ineffective management and poor planning. The office operates in a crisis mode because supervisors don’t allow enough time for employees to perform their assigned tasks effectively or because staff levels are inadequate.

Respect from Co-Workers

Employees seek to be treated with respect by those they work with. A hostile work environment with rude or unpleasant coworkers — is one that usually has lower job satisfaction. In an August 2011 survey published by FoxBusiness.com, 50 percent of those responding said they had personally experienced a great amount of workplace incivility. Fifty percent also believe morale is poor where they work. Managers need to step in and mediate conflicts before they escalate into more serious problems requiring disciplinary action. Employees may need to be reminded what behaviors are considered inappropriate when interacting with coworkers.

Relationship with Supervisors

Effective managers know their employees need recognition and praise for their efforts and accomplishments. Employees also need to know their supervisor’s door is always open for them to discuss any concerns they have that are affecting their ability to do their jobs effectively and impeding their satisfaction at the office.

Financial Rewards

Job satisfaction is impacted by an employee’s views about the fairness of the company wage scale as well as the current compensation she may be receiving. Companies need to have a mechanism in place to evaluate employee performance and provide salary increases to top performers. Opportunities to earn special incentives, such as bonuses, extra paid time off or vacations, also bring excitement and higher job satisfaction to the workplace.

CHAPTER:4

FINDINGS AND ANALYSIS

4.1 Analysis:

The findings part requires 10 questions and those question answers with graphical presentation. The data of each questions were used for analyzing the level of job satisfaction of employees of Al-Arafah Islami Bank Ltd. Level of job satisfaction measured through strongly satisfied to strongly dissatisfied with percentage.

1. Pay and other monetary benefits

a. Strongly dissatisfied

b. Dissatisfied

c. Neutral

d. Satisfied

e. Strongly satisfied

Figure: 12. Satisfaction on pay & other monetary benefits

Explanation

From this graph, it is identified that 68% respondents are satisfied with their pay & other monetary benefits whereas 32% respondents are found neutral.

2. Decision making process and communication pattern (downward, upward and horizontal)

a. Strongly dissatisfied

b. Dissatisfied

c. Neutral

d. Satisfied

e. Strongly satisfied

Figure: 13. Decision making process

Explanation

The above diagram shows that 77% respondents are satisfied with the decision-making process & communication pattern whereas 23% viewed neutral.

3. Supervisor & coworker’s behavior (especially informal)

a. Strongly dissatisfied

b. Dissatisfied

c. Neutral

d. Satisfied

e. Strongly satisfied

Figure:14. Supervisor & coworker’s behavior

Explanation

1. In this diagram it is identified that 55% express satisfaction with Supervisor & coworker’s behavior (especially informal), 45% remain neutral.

4. Job nature (job autonomy, work schedule, job stress, creativity of job etc.)

a. Strongly dissatisfied

b. Dissatisfied

c. Neutral

d. Satisfied

e. Strongly satisfied

Figure: 15. Nature of job

Explanation

From the above graph it is found that 59% respondents are satisfied with their job nature (job autonomy, work schedule, job stress, creativity of job etc.) & 41% respondents express neutral view.

5. Working condition

a. Strongly dissatisfied

b. Dissatisfied

c. Neutral

d. Satisfied

e. Strongly satisfied

Figuere:16. Working Condition

Explanation

In this diagram, it is identified that 68% respondents are satisfied with their working condition whereas 32%arefoundneutralattheirview.

6. Management policies

a. Strongly dissatisfied

b. Dissatisfied

c .Neutral

d. Satisfied

e. Strongly satisfied

s

Figure: 17. Management policies

Explanation

From the above diagram, it is seen that 55% respondents are expressed satisfaction with the management policies, 18% expressed strong satisfaction & 27% expressed neutral view.

7. Recognition and promotion

a) Strongly dissatisfied

b) Dissatisfied

c) Neutral

d) Satisfied

e) Strongly satisfied

Figure: 18. Recognition & promotion

Explanation

From the above graph, it is showed that 55% respondents are satisfied with their recognition & promotion, 45% respondents remain neutral with this statement.

8. Job status and job security

a) Strongly dissatisfied

b) Dissatisfied

c) Neutral

d) Satisfied

e) Strongly satisfied

Figure: 19: Job status & job security

Explanation

In this diagram, it is seen that 55% respondents are strongly satisfied with their job status & job security & 45% respondents are found satisfied with their job status & job security.

9. Overall job satisfaction

a) Strongly dissatisfied

b) Dissatisfied

c) Neutral

d) Satisfied

e) Strongly satisfied