Employee Motivation of Public & Private Sector Banks – A Comparative Study
Volumn 2

Employee Motivation of Public & Private Sector Banks – A Comparative Study

Mrs. Bhavna S. Pendke,
Research Scholar
RTM Nagpur University, Nagpur.

Abstract:

The purpose of this study is to compare employee job satisfaction, stress level and work motivation of the public and private sector banks. Comparison of the employees of Public sector and Private sector banks can be done on several parameters. The researcher has specifically chosen the three parameters viz. motivation level, stress level and satisfaction level of the employees to compare. The relevant data for this piece of research work has been collected by referring to the secondary data resources. It was concluded that the employees of public sector bank employees are satisfied with their job and they experienced less level of job stress as compared to private sector bank employees.

Keywords – Public, Private, sector, Banks

Objectives of the study

  1. To compare job satisfaction level of the employees of public and private sector banks
  2. To compare the stress experienced by public and private sector bank employees.
  3. To compare work motivation of public and private sector bank employees.

Introduction

Banking is considered as one of the vital contributors to the economic growth of a country. It serves as the central channel for all economic activities. After nationalisation of banking sector the industry had become the monopoly of the public sector. Barring the cooperative banks which mostly function in the limited area and were driven by local compulsion and factors majority of huge volume of banking transformation were done by the nationalized banks. Due to some peculiar factors like the government support, monopoly and the condition of the seller’s market, they never felt the need for change. The employees due to strong unionization and guarantee of life time job started taking everything for guaranteed.

However after the beginning of the era of financial reforms (Liberalization, Privatization and Globalization), new Private sector banks with huge financial muscle power, global expertise and the inherent deficiency of public sector bank started growing at a very rapid rate. Due to the technological evaluation, rising customer expectation, and intense competition no organization has luxury of remains in one comfort zone. Now the survival of the fittest has become the Universal Mantra.

In such situation it is very interesting to compare both the sectors considering various aspects

Job Satisfaction of the employees

Comparative Study on Job Satisfaction of Bank Employees” Following the recent circular by Independent University, Bangladesh (IUB), Kinetic Researchers (Ltd.) was delighted to present the Research Proposal for conducting a research titled “Comparative study of job satisfaction in Public and Private sector bank. Having a large pool of excellent and expert researchers, through this research study an attempt had been made not only to ascertain the degree of overall job satisfaction prevailing among the Bank executives but also to elicit officer’s views on the different factors contributing to their job satisfaction, in the light of current realities. With this research, IUB aimed to restructure its competitive advantage by making corrections to its course curriculum. (Comparative study on Job satisfaction of Bank Employees, 04,2011)

In the Analysis of “Employee Satisfaction in Banking Sector” done by M.L. Meena and G.S. Dangyach, both the author think that Employee satisfaction is important for organization’s success and survival. It is an established indicator to measure employee satisfaction. Survey questionnaire structure is based on office environment. Office environment are based on lighting, furniture, noise, temperature and others arrangement. Three hundred fifteen responses have been received from different banks. The purpose of this study was to analysis the employee satisfaction in banking sector. Employee need and satisfaction have been identified, elements have been established and analyze. The results show differences in employee satisfaction with the office environment between employees in public sector banks and private sector banks, many of which were statistically significant. Differences between employee’s satisfactions with their banks with regard to health, wellbeing, improvement in employee productivity, best services, good behaviour between staff, socially, economically, improvement in banking sector and job satisfaction were analyzed. (Dangayach, 2012)

Amuthu (2012) the banking system is facing challenges with stiff competition and advancement of technology. It becomes imperative for all service providers to meet or exceed the target customers’ satisfaction with quality of services expected by them. Hence the present research was attempted to study customers’ perception of quality of services, both transaction based and IT enabled in terms of its constituent factors in public sector, private sector and cooperative banks. Also through the present study, we would gauge the extent of IT adoption in public sector, private sector and cooperative banks in this electronic age. The present investigation in planned with the objective to assess the extent of use of services especially the IT enabled services in these banks and to analyze the constituent factors affecting customer satisfaction with the quality of services. The present study was conducted in public sector, private sector and cooperative banks of Villupuram district of Tamil Nadu. Multistage random sampling was used for selection of samples. The study was proposed to be conducted in eight talukas of Villupuram district. One branch of above banks in each taluka of Villupuram taluk was selected randomly. While selecting the branch, care was taken to see that the branch should provide at least five IT enabled services. This step was followed to have interbank comparison. The study has revealed that the customers of nationalized banks and cooperative banks were not satisfied with the employees’ behaviour and infrastructure.

Stress experienced by the employees

The research done on “A comparative analysis of differences in overall job stress of permanent employees in Private and Public sector banks” was done with the purpose to determine the some differences level of job stress of permanent employees in public sector and private sector banks Islamabad, Pakistan. 6 banks in Islamabad selected at randomly for survey and collected data through structured and close ended questionnaire.7 dimensions were used for measuring job stress construct which developed by NIOSH (National Institute of Occupational Safety and Health). 200 questionnaires were distributed among the employees who were working in these public and private banks and 104 employees responded out of 200 employees. The result showed that there are some differences in overall job stress level of permanent employees in Private and Public sector banks. Results founded the public sector banks’ employees significantly affected more by stress due to no control on their jobs, social unsupported by the mangers, and mechanistic and strict organizational structure than the private sector bank’s employees. So public sector banks managers and top management executive body should establish new rules and regulations as well as hire MBA qualified managers who increase the motivation level of their employees and subordinates. They were sure it would be first research which conducted in Pakistani public sector and private sector banks for examining the stress level differences of these banks’ permanent employees. (Khurram, 2012)

Development of Scale for Measurement of Stress and Performance Status of Public and Private Sector Bank Employees: The study was conducted among the bank employees of Nagpur and Bhilai city. The author revels that in an age of highly dynamic & competitive World Bank employees are exposed to all kinds of stressors that can affect than on all realms of life hence effect on their performance. To measure the effect of these stressors, a questionnaire was administrator to selected population of bank employees in Nagpur and Bhilai city. Based on the questionnaire administrator to selected sample population of bank employees and subsequent statistical analysis, it was concluded that public sector bank employees showed disagreement towards almost all the factors causing stress but employees from private sector banks showed agreement towards inter role distance, role expectation conflict and role overload as factors causing stress. As the formulated scale was found to be reliable and valid the scale can be used by researchers to measure stress and performance status of bank employees with respect to other parameters and different sample population.

In an age of highly dynamic & competitive World Bank employees are exposed to all kinds of stressors that can effect than on all realms of life hence effect on their performance. To measure the effect of these stressors, a questionnaire was administrator to selected population of bank employees.

Based on the questionnaire administrator to selected sample population of bank employees and subsequent statistical analysis, it was concluded that public sector bank employees showed disagreement towards almost all the factors causing stress but employees from private sector banks showed agreement towards inter role distance, role expectation conflict and role overload as factors causing stress. (Borkar, 2012)

Sonit Dutta and Dr Ramananda Singh has studied Stress and its study in the banking sector of India and Abroad. Only secondary data was used to prove the hypothesis. The author had concluded from his study that there is no relationship between the age of the employees and the stress of the employees. The study shows that employees in the banking sector score higher levels of stress and insecurity and show evidence of significantly worse health indicators with respect to those of employees working in other sectors. If taken positively, results are positively and if taken negatively, the results are negative. Recent research reveals that low moderate level of stress enable an employee to perform better. However a high level of stress spread over a long period eventually takes it toll and the performance declines. Hence it is the need of the hour that the management of banks should take corrective measures to overcome the dysfunctional effects of stress. In recent days management are adopting stress management techniques such as employee assistance programmes, stress audit, recreation facilities, participative management, equitable performance appraisal and reward system and the like. (Singh, 2011)

Mishra in 1997 conducted a study to compare the occupational stress among public and private sector public relations officers. The occupational stress index (A.K. Srivastava and A.P. Singh, 1981) was administered to the sample population. Critical ratio test was used to find out the difference between perceived occupational stress among public and private sector public relations officers. The analysis of the data revealed that public relations officers of public sector experienced significantly higher occupational stress on the dimensions of role ambiguity, role conflict, unreasonable group and political pressures, powerlessness, poor peer relations at work, intrinsic impoverishment, low status and strenuous working condition as compared to public relations officers of private sector. Second, no significant difference was found between the PRO’s of public and private sector on the dimensions of responsibility for persons, under participation and unprofitability. Lastly, the PRO’s of private sector scored significantly higher on role overload that the PRO’s of public sector.

Work motivation of the employees

Rashid Federal (2012) “Work Motivation Differences between Public and Private Sector” Motivation is complex and multifaceted phenomenon. Work place motivation is an endless struggle for both employers and employees. The aim of this research was to identify and discuss the factors that influence employees’ motivation and major emphasis on the differences between public and private sector employees’ motivational constructs in the Banking Industry. A survey method was designed to collect data from 150 employees of public and private sector banks. Results indicated that employees’ motivation was affected by the several work related factors. Public sector employees were more motivated by work contents and experience more balance between work and family life, whereas, private sector employees are more motivated by financial rewards, career development opportunities, and supportive environment, as shown in the literature cited and proved by our results. Consequent to these results, recommendations to enhance employee work motivation were made.

Conclusion

It can be concluded that employee of the public sector banks are more satisfied with their banks as compared to private sector banks to some extent. The difference in the satisfaction level is because of their different working conditions.

Employees in the banking sector score higher levels of stress. When it comes to compare between the public and private sector banks, private sector bank employees experienced more stress than the public sector banks employees. The difference in the stress level is because of their different work culture.

Public sector employees were more motivated by work contents and experience more balance between work and family life, whereas, private sector employees are more motivated by financial rewards, career development opportunities, and supportive environment.

References

  1. Amuthu. (May 2012). Comparative study of customer satisfaction Between Public and Private sector banks in India. Villupuram(TN).
  2. Bagga, R. A. (2008). Quality of work life ”Public Vs Private sector bank. Mangalmay Journal of Managemant & Technology , 34-46.
  3. Borkar, S. R. (2012, Aug 7). Development of Scale for Measuement of Stress
  4. Cheboly, R. M. (2007). Culture Compatibility. HRM Review , 17-22.(04,2011). Comparative study on Job satisfaction of Bank Employees. Studymode.com.
  5. Dangayach, M. M. (2012). Analysis of Employee Satisfaction in Banking. Int Journal of Humanities and Applied Sciences .
  6. Kajal chaudhari, M. S. (june2011). Performane of Indian public and Private sector banks: A comparative studt. Internatioal Journal of 47) Innovation,Management and Technology, , 249-256.
  7. Kaur, R. (2011). A study of organizational citizenship behaviour and justice of employees in selected pub and prv sector banks in Chandigarh. Prabandhan : Indian Journal of managemant , 34-41.
  8. 49) Khurram, Z. A. (2012). diferences in overall job stress level of permanant employees in Private and public sector bank. International journal of economics and Management science , 45-58.
  9. Rao, D. P. (2013). Examining Assets Quality of Banks: A Comparative study of Public, Private and Foreign sector banks operating in India. Anvesha , 45-50.
  10. Singh, S. D. (2011). Stress and its study in the Banking Sector of India and Abroad. Prabandhan: Indian Journal of Management , 11-15.
  11. Vinita Kaura (2013) “Antecedents of customer satisfaction: a study of Indian public and private sector banks”, International Journal of Bank Marketing, Vol. 31 Iss: 3, pp.167 – 186

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