Businesses get established, they achieve this by selling products and services, from which they profit. What forced banks to continually provide excellent services to its customers was globalization and Intense competition. A bank relies on largely upon well are they able to sell their products and services. It is a fact that only bank employees who are trained, satisfied and most of all motivated are able to sell products professionally and/or provide quality service.
Why is there a need for businesses to motivate employees? The answer stands to be survival, higher earnings and an overall better bank performance. Banks value employees that are motivated and are in constant demand in rapidly changing banks' working environments. Employees as mentioned tend to be more productive and help banks sustain and thrive in a fierce competitive environment. Thus is implies that It's the duty/responsibility of the organization's management to effectively carry out bank operations, to gain an understanding of what their employees want from work and what interests them related to their role. Amongst all the functions management performs, motivation of the employees is arguably the most complex because the needs of an employee change constantly. In the last ten years, there has been a dramatic change in the competitive environment. With the customer needs changing, it has been the bank's part to make the take up the important developments in existing products and services to suffice the customer needs or to offer new competitive products. What good is a complete portfolio of financial products and services if they are not able to sell them? So its the need of the bank to motivate their staff and try and fill the competitive gap by using their staff who want to see their organization grow.
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How important is motivation for banks in Kashmir and how the performance of bank employees is affected by motivational factors?
To examine the importance of motivation and effects of motivational factors on the employees of J&K Bank and ICICI Bank, Srinagar, Kashmir
Obtain and analyze the available literature on motivation and motivational factors.
To assess what are the needs of the employees of a bank and what are the motivating factors?
To determine through the use of questionnaires the extent to which the motivation factors affect the employees' satisfaction, his development, and performance.
To perform a comparative analysis of J&K Bank and ICICI Bank on the level of motivation of their employees.
To analyze the results and conclude with recommendations to the management
Background: Research Significance and Problem Identification
Despite of this topic's importance, theoretical research work has been mostly done on motivation. There has been little attention given on the research on how to motivate bank employees and what are the impacts of different types of motivation. Additionally it is hard to gather data or research regarding motivation or any other topic for banks in Kashmir. Even though numerous organisations such as banks work to motivate their staff to work effectively and achieve higher levels within the organisation hierarchy, little has been aimed motivate employees in the need for a better overall bank performance and efficiency. Performance based banking sector and continuously changing environment of banking are affecting the ways the banks operate and this leads to the fact that banks require employees with a high level of skill that is attained by continuous on the job development and other means of training. It is imperative to believe that an employee can perform well without the proper training and motivation. In business management studies, motivating the employees as a topic is increasingly affecting the line of management and is becoming one of the most important topics. This in the context of banks is very related and they need to take up motivation and training need of the employees as a primary requisite in their operations.
This research serves the purpose to observe and research the motivational analysis of the workforce of the State Bank of India and ICICI Bank, for analysing the contentment levels and the affect they may have on their everyday operations. Another purpose of this work includes examining the motivational requirements of the staff and to evaluate if their current job profile fulfils their pursuit for job contentment. This dissertation focuses on the how do the motivational factor effect the performance of the bank's employees. Focus has also been given to increase the understanding of the relationship between the performance of the bank and motivation work, by empirically testing features of existing theoretical frameworks. This work will also evaluate and discuss the means for motivation of employees in the banking environment and impact of important factors on motivation. Explanations which are detailed on kinds and techniques of motivation, manager's role, and employees' requirements will also be considered. The final section will concentrate on the need of appraisal and evaluation of employees. After an analysis of the influence of motivation on the employees it will be linked to a bank's performance. A debate on issues related to motivations, arguments and counter arguments by scholars will also be provided. This purpose of this research will be to focus on the motivational factors and its effects on the employees of banks. A comparison on the research carried out on the banks and the literature will be carried out and at the end a conclusion based on the effects of motivating employees of the banks will be made.
Hypothesis and Rationale
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A bank can increase its performance and productivity by motivating its staff and training them with appropriate skills. An increase in the efficiency of the employees can be achieved by developing and motivating the staff appropriately. Banks usually take up techniques that were effective in the past and now are inadequate but cannot exist in the current scenario. The banks tend to ignore tailored methods for the motivation of the staff according to the individual culture and banking environment. For a better overall performance of the bank it will have to take up new ways that can motivate the staff appropriately.
Motivation stands to one of the most interesting topics in the social sciences. According to Kanfer and Gilad (2008), scholars have developed substantial efforts developing a master theory of motivation, trying to incorporate various characteristics to the concept. Researchers usually link together a network of subordinate concepts and portray work motivation as a unifying topic. In literature the linkage between performance, goals, jo satisfaction and work motivation is well established. According to Erez et al. (2008), many academics have tried to explain the basis of motivation, very little attention has been given to understanding the individual differences. Although, Gillen, (2002) said Work psychology has since long attempted to understand the factors which cause the variations in the work motivation of every individual, and how these individual scopes are affected by the bank factors to determine the satisfaction level of the individuals. These theories propel the modern day organizations to achieve better organizational results through motivating their employees. Motivation is the force driving the actions of employees (Gillen, 2002). Motivation relies on emotions and goals that are achievement-related. Milne in 2007 argues Motivation is the inner force that derives individuals to achieve personal and professional goals.
What a bank wants to achieve from the motivation its providing to its employees has to be decided by the bank. Scholars like Milne (2007) said that the goals should be realistic and should be attainable for both the banks and the employees. Decker (2009) suggests that in order to achieve these goals banks need to develop a strategic plan for training and motivating the employees that are involved in any part of bank operations. Latham (2007) advises that the bank should assess what kinds of training it requires to motivate the employees. He adds on that the banks must get there employees to get involved enthusiastically in their jobs.
Banks urge employees for better output, success of the bank and sometimes even survival. According to Franken (1998 cited by Forster, 2005), motivated employees are needed in quickly changing bank's working environment. Employees who are motivated aid banks survive and grow (Deckers, 2009). Steer and Porter (1992 cited by Deckers, 2009) believe that banks need motivated employees to generate revenue and to operate effectively. Employees who are motivated tend to be more productive and they induce positive energy into the workplace. After the understanding of needs and ways for motivating the employees the banks chalk out a strategy for implementing motivation plan. Motivation of employees for banks is necessary to perform tasks better and more effectively (Deckers, 2009).
Manolopoulos (2008) argued that for introduction of effective systems of banking, they must understand the patterns of motivation of people they employ. Researchers such as Larson (2009) have observed what is happening around bank employees that could be contributing to their productive or unproductive behavior. Larson (2009) suggests that to determine the employees' behavior, they have to determine the expectations of the bank, asses the reasonability of those expectations are, and their implementation. People select a place of work for a few reasons, pay and benefits, home near to the workplace, the types of products and services the company is involved in, the employee's area of expertise, and the working environment (Kuvaas and Dysvik, 2009). Employees will base their expectations based on nature of the work they are to perform and the positions they would hold. Some work for their living and some work for the love of what they do. people part of a workforce have differing mindsets for which they work for. But, the work they do gives them something they want. This directly relates to the motivational level of each employee. In order to create positive employee motivation banks need to treat their employees as if they matter. In these harsh economic times, managers should assess ways maximize their resources (Latham, 2007). They need to ensure that their employees are provided with what they require for the best output. It is not a pay raise, the key is motivation.
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Most of the studies dealing with job satisfaction and motivation have focused on factors like pay and mentoring which really pertain to the company or the situation at the company (Decker, 2009), but have not considered the differences between each person. Reeve (2004) found that people with similar job descriptions and responsibilities tend to carry various perceptions. This underlines the importance of taking into account the differences in personalities of different people affecting their attitudes towards their job. According to Dickinson (2006), the perceptions of the workplace and work environment are strongly influenced by the individual's disposition or the dispositional factors, and this impacts the choice of desired jobs. Aswathappa (2005) believed that intrinsic factors like the need for recognition, appreciative feedback and systems of rewards work strongly in case of extroverts with their outgoing disposition.
Larson believed that employees are a bank's livelihood. Their feelings about the work and the results received from that work directly impact a bank' overall performance and, ultimately, its stability. A stable organization ultimately performs (Lauby, 2005). Beckas (1999 cited by Latham, 2007) states that if a bank's employees will do whatever is necessary to achieve the bank goals when they are highly motivated as well as able to address any potential challenges Productivity can be detrimental to a bank's performance and future success. Low level of motivation of employee could be because of unsuccessful business of the bank, unsuitable work conditions, or drastic changes or uncertainty within the bank (Latham, 2007).
Numerous data collection techniques will be applied. Methods which are cheap and fast will be utilised because of the financial and time constrains. Only data that is relevant will be used to minimise the irrelevant data. Two main sources namely Internal (banks' information will be discussed and analysed) and external which consist of newspapers, magazines, journals, reports and websites. Deductive approach of reasoning will be applied as demanded by management or social research and because it directs a structured research that involves testing. This reasoning approach will assist to collect data and problem definition. Research methodology will include both primary and secondary methodologies. Primary data will be collected through a purposeful approach. Bank motivation being a unique topic, the literature and data is limited; although the research material along with the primary data will be good enough for the structure of the literature. Books and articles relevant to the Motivational theories formed the backbone of the structure. Primary data will have interviews and questionnaires and for secondary research data on the internet, books, latest articles will be searched. Both types of data will be "Qualitative" and a little "Quantitative". Collection for qualitative data was easy and quantitative data was collected using techniques of scaling. Results were based on the data collected from both the forms. Structured questionnaires for which the answers were predetermined were used for quantitative data. Measurements were objective and valid statistically. On the contrary qualitative data was subjective and based on the interviews with the management. Numerical values were assigned for conclusion of data that was coded for quantitative purposes.
Interviews will be held with the management as it is believed that it is a suitable way to extract from the management's experience. The management is expected to be co operative during the interviews and also expected to assist in the collection of primary data. Initial interviews will be carried out the on telephone. Latest information and communication technology will be used in this research such as using teleconferencing and video-conferencing methods for detailed interviews with the management later in the research process. Informal approach for the interviews will be selected for the collection of data. For quantitative data questionnaires will be used as it is helpful to analyse scholarly data. It is expected to be cost efficient and the bank employees are well aware of it. Closed-ended questions will be used with predetermined answers, for the employees to just select the most favourable option. This will help in gathering the information easily and computing percentages. Questions made will be aimed to collect data only that is relevant. At last, the research findings will be scanned for validity as well as reliability. Suitable procedures will be taken while gathering and generating data which will be later confirmed for its reliability and validity to keep the facts factual.
Internet will be the preferred mode of communication because it makes collecting the data easy and fast. Latest technology such as teleconferencing and video-conferencing will be used to liaise with the management of both banks. Data will be processed and graphs will be drawn using Microsoft excel spread-sheet. The data will be structured and analysed making it easier to draw the conclusions from. 'Microsoft Word - 2010' has been used as a design tool due to its ability to sync with variety of graphical alternatives.
Due to natural limitations data could not be collected from all the available sources and all the employees, therefore random sampling was applied. Management of both banks were chosen for interviews. 50 employees from each bank will be selected and questionnaire will be sent to them through electronic mail. The sample of 50 employees each will be selected as it will represent more than half of the total employee count at each bank. This will aid us in drawing conclusions using the percentages and diagrams.
Due to the financial constraints, most of the interviews will be done through the telephones; questionnaires will be also filled through electronic mails. Self representation at the bank is not feasible because of the time and money constraint. Many books and journals will be ignored and rejected using Bell's checklist (Bell, 2005). Literature on bank employee motivation is limited and no files and documents (reports, statistics, essays, and researches) are available on bank motivation in the context of Kashmir. Another important limitation of the research is the sample size of employees. This is because of the time limitation and resources scarcity.
Usefulness of the Research
The focus of this dissertation will be to find out the relevant factors to motivation, it's importance in motivating the employee to outperform and how is this related to the overall effectiveness of the operations. The research can be a handful to ICICI bank and J&K bank in Kashmir. Additionally this work can be used by other banks as a benchmark for motivating their employees and evolving a culture that would utilise the benefits that will reap off from motivating the employees. Further, it can be used for any research studies carried out by others.
Summary of the Research
Chapter 1 of this research is introduction in which summary of the whole research is given. Aims and objectives are also overviewed. Research problem is identified; its importance, usefulness, hypothesis and rationale are also briefly explained.
Chapter 2 of this research comprise of the literature review in which issues related to motivation are discussed and critically analysed. This chapter has been broken down into different relevant sections. This chapter has examined the motivational requirements of the employees and evaluated whether management could fulfil their pursuit for job contentment. In this chapter of the dissertation, the effects of motivational factors on bank employees' performance as well as on bank's performance are studied. It has also been considered to advance the understanding of the relationship between bank performance and work motivation, by empirically testing features of existing theoretical frameworks. Detailed explanations on type and techniques of motivation and bank's management role in motivation are also considered. The final section focused on need of employee appraisal and evaluation. Several authors' views on motivation of employees are assessed and later linked to bank performance and other related factors. Debate on motivation related issues, arguments and counter arguments by scholars are also provided. This chapter specifically examined motivation of employees in banks specifically focusing on motivational factors and its effects.
Chapter 3 reviewed the methodology of the research. Types and methods of research appropriate for this dissertation are discussed in this chapter. Reasons of why such methods are chosen and some other techniques ignored are provided. The benefits of using chosen methods to validate the research are clearly explained. Research process is examined in detail as well as the limitations and constraints faced. Information about sampling method and data analysis tools is also provided.
Chapter 4 analysed all the collected data and presented in graphical format. Research findings and data analysis sections are combined for this dissertation. Results from interviews and questionnaires are critically analysed in the context of banking sector of Kashmir. Questionnaires results are graphically presented. Comparison of both banks is also provided.
Chapter 5 summarised all the literature and findings and arrived at the research conclusion. Recommendations are proposed that give insight into the requirements for better motivation. This section also highlighted the areas on which Kashmir banks can focus and research in near future.