Banking Services Are Very Important Commerce Essay


Banking services are very important in the market economy Pakistan. The health of a countrys economy is banking system. Banks play an important role in the worldwide economy and their employees are the best sources of delivering good services to their customers. Excellent services provided by these bank staff can create a positive perception and a lasting image in the eyes of recent potential customers. Banks in world has grown from few institutions primarily involved in deposit acceptance and trade finance into a complex multi-player markets where a large number of banks are operating with various technologies and activities (Okerly and Boohene, 2012).

The physical structures of banks are maintained by human resources (staff) who enable the delivery of good service. The process of delivering quality service is the motivation of all staff. Employee's motivation has become crucial to employee behavior including loyalty, commitment and job performance levels, a point supported by Bateman and Snell (2007). In today's dynamic environment the highly motivated employees serve as a synergy for accomplishment of company's goals, business plans, high efficiency, growth and performance.

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Another factor for organizational goals accomplishment with efficiency and effectiveness is employee's commitment. According to Raily and Chatman (1986) effective organization commitment refers to attachment of employee with organization goals. According to Abdullah and Ismail (2012) it is observe that banking jobs are very tough due to lengthy working hours, despite of this there are some of the factors that have positively influence on employee commitment with banking industry of Pakistan these factors are job security, empowerment, physical working environment, balance worked and family life and personal development.

The satisfaction of a bank's customers largely depends on the kind of services they receive from the staff of their banks. The satisfaction, loyalty, motivation and commitment of the staff would ensure full satisfaction of the banks' customers. Against this backdrop of staff or individual motivation, the study therefore seeks to determine the factors that influence bank staff motivation in the Pakistan and extent to which these factors explain variance in staff motivation and which of these variables best contribute (predict) to staff motivation of banks in Pakistan. There is already lot of research conducted on banking industry related to motivation and commitment in different ways. But in this research focuses on motivation and commitment of employees side by side and determined some of the factors like as empowerment, social status, balance work and family life, physical working environment and personal development have positive relationship with employee motivation and commitment.


Word motivation derived from motive which means need desire want with a person (Chaudhary & Sharma, 2012) . According to Webster's News Collegiate Dictionary a motive is a "something a need or desire that cause to person to act " Motivate in term means "to provide with a motive" Motivation define as "the act or process of motivating" consequently motivation is a process of presenting an intention that origin a person to capture some accomplishment (Shankas. N.H). According to Butkus & Green (1999) motivation word derive from word motivate means to move push influence to proceed from fulfilling the want (Kalimullah et al ,2010). Motivation derived from Latin word "Movere" which means "to move". Motivation is what move to staff from dullness to interest. It is like as steering of vichles that directs and shapes the employees action. ( Mohsin, Nawaz, Khan)

Motivation is the fuel that drives people towards achieving their goals and objectives. In fact, without this fuel human beings would be inactive, leading to unproductive life. According to Daft (2006) motivation is described as those internal and/or external forces that trigger actions that persist until a certain goals are achieved. These triggers of behavior are various needs that employees are striving to satisfy through various intrinsic and extrinsic rewards they receive at work in business activities (Bateman & Snell, 2007; George & Jones, 2006).

The significant importance of motivation to an individual can be summed up as achieving personal goals as well as self-development. Motivation promotes better quality of work with less wastage as well as developing a greater sense of urgency amongst employees of any organization. According to Armstrong, (2003) motivated workforce leads to empowered workers who in turn encourage team work, more profitability, creativity and motivation will lead to an optimistic and challenging attitude at work place. He further argued that rewards are designed to encourage behavior that will contribute directly to the achievement of the organization's objective. He asserts that extrinsic rewards provided by the employer will be important in attracting and retaining employees. "Motivation is the driving force within individuals that compels them physiologically and psychologically to pursue one or more goals to fulfill their needs or expectations," (Lam and Tang, 2003, p. 61).

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If rewards or recognition offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction (Ali and Ahmed, 2009). Another related study on health workers by Khowaja, Merchant and Hirani (2005) also found recognition, appreciation on their good performance and respect from their managers and colleagues as critical factors for staff motivation. Daschler and Ninemeier (1989) in a research investigated what employees may seek from the working environment. It is worth noting that employees are individuals who come from different backgrounds, have different education with different experiences and their different family classes are all the factors in which their needs may be located. Their primary interest is to satisfy their personal needs, linked to survival and security concerns and a desire to belong, to generate positive feelings from within and from others, and be self fulfilled.

They want all these through fair and consistent company policies in matters affecting them; respect and trust from management; adequate working relationships with managers and co-workers; appropriate job security assurance; challenging work, appreciation and recognition for good performance, increased responsibility and the chance to grow in the job, the feeling of importance and making a contribution to the organization amongst others.

They found out that the various factors such as recognition, role clarity, supervision, perceived competence and job satisfaction can affect staff motivation differently. In their study of game rangers at the Mole National Park in Ghana, they found staff motivation to be affected by job satisfaction, recognition, role clarity, supervision and perceived competence in a decreasing order of importance (Oduro and Kwarteng , 2000).

Organizational commitment

Organizational commitment is an most important issue both for management and owners of the organization. Organizational commitment and job satisfaction both are related with the firm's profitability and also for the good position of the business, organizational commitment has grater effect on the employees performance. That's why organizational commitment is an important issue in the today business. (Shore & Martin,1989; Meyer et al., 1989; Meyer et al., 1993; Siders et al., 2001; Meyer et al., 2002; Jaramillo et al., 2005; Vijayashree and Jagdischchandra., 2011).

Organizational commitment shaped positive behavior among the employee. Committed employees overcome the chance of absenteeism and turnover (Igbaria & Greenhaus, 1992).

There are numerous studies related to concept organizational commitment has been discussed. The results of these studies show that organizational commitment based on some variables: Such as recognition, information sharing, competencies and fair reward, e.g. (Allen & Mayer, 1990). According to Bachanan commitment is strong relationship between employees and organizations.

It is therefore clear that there are many factors affecting employee work motivation and performance and each of these factors has its own unique approach, significance and contribution towards motivation and performance that elevate and maximize organizational progress. The literature as reviewed suggests that various factors including Empowerment, High salary , Seniority based promotion, Chance to Benefit society, Personal development ,A stable and secure future , Balanced work and family life , Physical working environment , opportunity for advancement, Social status , Fringe benefits, Relaxed working environment, Benefits after retirement Recognition, Task Accomplishment, recognition, role clarity, supervision, job satisfaction and perceived competence can affect staff motivation differently.

Theoretical Framework

Independent Variables Dependent Variable


Personal Development

Social Status

Balance work and family life

Employee Motivation

Physical working environment

Employee Commitment


Empowerment is to give permission to employees to formulate decision. Employee Empowerment consists of employee involvement in administration and decision making (Manzoor, 2012). Empowerment results in employee motivation and commitment that lead to organizational growth and effectiveness (Smith, 1997). Empowerment has positive relationship with employee's motivation and commitment.

Personal Development:

Personal development is continuously enhancement in employee skill and abilities. Personal development has positive relationship with employee motivation and commitment

Balance work and family life:

In banking industry of Pakistan most important factor that motivate to employee is balance work and family life. Balance work and family life has positive relationship with employee motivation and commitment. When there is balance in work and employee's family life then employees feel comfortable in job, this create employees motivation and commitment in organization.

Social Status:

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Social Status is employees need for affiliation and respect in the society. The job that gives social status to individual is determined as highly motivation and commitment to organization. Social Status has positive relationship with employee motivation and commitment.

Physical working environment:

Every employee desired to work in comfortable physical working environment. Social Status has positive relationship with employee motivation and commitment.


H1: Empowerment is positively related to employee motivation and commitment.

H2: Personal Development is positively related to employee motivation and commitment

H3: Balance work and family life is positively related to employee motivation and commitment

H4: Social Status is positively related to employee motivation and commitment

H5: Physical working environment is positively related to employee motivation and commitment