This report is elucidating the level of the employees’ satisfaction in the bank of Cyprus and the importance of employees’ job satisfaction. In order to explain the context, the background of the study is given. It can help in understanding the various aspects of the job satisfaction and its merits for the organization. The chapter is then leading towards the formation of the research objectives and research questions. These questions are leading towards the context of the study. At the end of the chapter the limitation of the study is given along with the significant of the study. The future prospects of the study are also discussed in detail at the end of the chapter.
- Background of the Research
There is a great impact of the performance of the employees on the profitability of the organization. The job satisfaction is the key to the increased performance of the employees. The job satisfaction is defined as the about how the employees evaluates the extrinsic and intrinsic factors of their jobs. Different researchers defined job satisfaction differently. According to the Spector (1997), job satisfaction is how much employees feel please about the job they are doing. The industry of the United Kingdom is expanding. It is very important for the organizations to please their employees in order to save the cost of the organization and to increase the efficiency of the organization. The increased level of job satisfaction is promoting the motivation level among the employees. It will lead to the retention of the employees within the organization. It eventually will lead in to the saving regarding the switching cost of the organization in employee turnover rate. The cost of operations is likely to decrease with the increase level of job satisfaction. It is the way of increasing the profit margin of the organization (Simons, 2001).
It is also seen that in the organizations where the employee’s expectations are fulfilled up to the mark, the employee turnover rate decreases to minimum and the motivation level regarding higher performance are present among them. The job satisfaction can be increased by devising better compensation plans, beneficial bonus plans, etc. The satisfied employees are more prone to dedication towards the organization and they perform their duties whole heartedly and with more zeal and zest (Spector, 1997). The national statistical survey has revealed that both the genders are working in great quantities in the banking sector of the country. they are sharing managerial posts with each other. So the job satisfaction plans made by the organizations must fulfill the requirements if the both genders. The role of males and females are crucial for the survival of the organization. So all the genders are treated and cared equally in perspective of the job satisfaction. The basic purpose of the employees is to get more earnings from the organization they are working in. the increased compensation plans and better reward system are the keys for the increased level of the job satisfaction among the employees (Parker, 2003).
- Research Purpose
This research is conducted in order to review the level of the employees’ job satisfaction in the bank of Cyprus following their various compensation plans and benefit plans. It will help in increasing the productivity of the bank. The efficiency of the employees can be increased with the help of it. It is providing the way to attain the goal of the banks at large. It can reveal the true relation between the compensation plan and the level of the employee satisfaction among the employees. So the study is focusing on the effects of the performance of the employees due to the varying level of the compensation on the job satisfaction of the employees.
The requirement for comprehension the essentialness of hierarchical atmosphere has turned into a significant zone of exchange as the accomplishment of an association relies on the execution of its representatives and the representative's execution relies on the level of occupation fulfilment that they have for which the atmosphere of association is capable. The thought of directing this examination is to assess how atmosphere influences worker's sentiments about their occupation. Successful associations understand the essentialness of charming work atmosphere which rouses representatives and upgrade work execution and fulfilment. The Climate inspects representative presumptions about the nature of their association's work atmosphere and it can be utilized to recognize opportunities for working environment upgrades. So this study is expected to explore the level of employee job satisfaction in the Bank of Cyprus with specific parts of their occupation and the vitality of these viewpoints to them.
- Research Objectives
The research objectives are to find the level of the employee job satisfaction in the special reference to the Bank of Cyprus. The research is also aimed at finding the effects of the job satisfaction on the profitability of the firm. The effects of the compensation plans are also the subject matter of the research. Specifically, the research is aimed at the following:
- Research Questions
The accompanying exploration inquiries were investigated and replied all through this study to accomplish the above point and destinations:
- What is the level of the employees’ job satisfaction in the Bank of Cyprus?
- What are the effects of the increased compensation plan on the job satisfaction of the employees?
- What is the level of the contribution of the job satisfaction level on the profitability of the employees?
- Research Hypothesis
H1: The more regular the correspondence between a worker and his supervisor, the more noteworthy the representative general employment fulfillment.
H2: The more prominent the self-governance the worker feels he has in performing their occupation the more prominent the representative general employment fulfillment.
H3: The more prominent the measure of creativity the worker feels is obliged him for performing his occupation, bring down the representative general employment fulfillment.
H4: The more prominent the level of part uncertainty, bring down the workers general occupation fulfillment.
H5: The more prominent the part clash, bring down the worker general employment fulfillment.
- Significance & Impact of the Research
The research is of great significance with special reference to the banking sector at large. The research is focusing on the case of the Bank of the Cyprus. It will give an insight to the banking sector of the country regarding the relationship of the job satisfaction of the employees and the efficiency level of the organization. The research will serve well to the policy makers and the management of the banking sector. It will help them understand about the relation of the job satisfaction level and the profitability of the organization. The research will also give the extensive literature about the employee’s job satisfaction and its various aspects.
- Literature Review
The chapter provides with the literature regarding the employee’s job satisfaction. The chapter begins with the discussion of the preface of the job satisfaction. It proceeds with the further explanation of the results of the different researchers regarding the job satisfaction. The studies have been cited in the literature related to the research in order to expand the idea of the topic more precisely and conclusively.
- Preface of Job Satisfaction
According to the research of the Rowden and Connie in 2005, the imperativeness of considering the subject stems from the impact of the endeavors on their representatives and additionally from the impact of the workers themselves on work associations (Rowden, Conine, 2005).
Similar to it, Choo and Barley (2007) explains that when a representative works in an association where his needs are satisfied and his individual attributes are regarded, he feels satisfied with his occupation (Choo, Bowley, 2007). Hence, being fulfilled has a positive effect on the representative's prosperity, mental wellbeing and riches, which accordingly, expands their benefit (Rowden, 2002; Tlaiss, 2013).
Early studies, for example, that of Laffaldano and Muchinsky scrutinized the effect of workers' occupation fulfilment on their execution. In actuality, later research done by Judge, Thoresen, Bono and Patton (2001) focused around 301 studies in regards to this theme, demonstrated that a relationship between these two variables does exist and it is a positive one (Thoresen, Bono, Patton, 2001).
Moreover, large amounts of employment fulfilment advance workers' dedication with the organization which they work for, something that improves their gainfulness (Lease, 1998 in Shrivastava & Purang, 2009). Along these lines, workers' working conduct influences the nature of an endeavour’s working. As Rust et al. (1996, p. 63) expressed, "associations with fulfilled workers lead to fulfilled clients". Also, work fulfilment diminishes non-attendance and representatives' turnover plans (Al Ajmi, 2001). In this way, thinking seriously about that representatives' fulfilment with their occupation has an extraordinary effect to them as people as well as to alternate parts of the business chain, in particular to associations and clients, it is irreplaceable to study the particular point (Ajmi, 2001).
- Literature on Job Satisfaction
According to the research of the Khalid et. Al. (2001), the different variables determining the satisfaction of the bank employees have been discussed. The focus of this study was on the satisfying and fulfillment variables of the job in the banking sector. These factors include, salary, training, growth, self-fulfillment and the nature of the job. In this study the different elements like advancements, compensation, professional stability, distinguish workplace and so forth were the dependent whereas the satisfaction was measured. Therefore, it was an independent variable. For this study random sampling technique was used and a sample was drawn from various public as well as private sector banks of the country. Questionnaire was used to collect data from 200 respondents of the study. The main focus was to know the factors causing satisfaction among the workers of the banking sector. The questionnaire was designed in such a way to study whether factors like work life balance, salary, working hours and professional growth contributed to the overall satisfaction of the employees. The study was carried out with an objective of measuring satisfaction to know the occupational fulfillment of the employees. After thorough analysis of the data it was proved that the factors like salary, job security and work life balance contribute to the satisfaction of the employees working with the banks. These factors shaped the professional fulfillment of the employees (Khalid et. al., 2001).
Moreover, according to Muhammad and Yasir (2009), the relationship of the job satisfaction with the salary given to the employees of the banking sector is studied. The prime focus of the study was the relationship of the monetary benefits with the job fulfillment. The study also encompasses the other vital factors like responsibility, authority, growth and on job environment. The data collection was conducted from the employees working in different public and private sector banks. The dependent variable of the study was the satisfaction and the independent was all the monetary and non-monetary benefits associated with the job. The main purpose underlying this study was whether all the monetary and non-monetary benefits lead to the satisfaction among the employees. Pay included the salary as well as allowances, bonuses and other non-monetary gains from the job. The results of the study proved the point that there exists a positive relationship between the pay and the satisfaction. The fulfillment of the employees is dependent upon the salary and all the fringe benefits they get while working with the bank (Muhammad, Yasir, 2009).
The researchers as well as organizations are striving to gain increased output levels and lowering the costs associated with the employees. This is possible only by the increased satisfaction among the employees. Muhammad et al. 2010 studied this effect in their research. The researchers related the work life balance, productivity and satisfaction in their study. The proposed that better balance among the work and routine life leads to the satisfaction among the employees. Due to this satisfaction, the productivity increases and the employee turnover decreases. For those organizations having large employee turnover it is an alarming sign that their employees are not satisfied with the job. The satisfaction is not associated with the monetary factors only. The monetary factors like salary, bonuses and fringe benefits cause satisfaction. But if the employees enjoy these benefits but their jobs lack non-monetary benefits like holidays, non-flexible timings and job burden then satisfaction levels are not up to the mark. The result is absence from job, underutilization of the potential and switching jobs. The employees seek growth by switching jobs and this behavior adds to the costs of the organization. Therefore, organizations must consider all the non-monetary as well monetary factors associated with employees to retain their employees, increase productivity and reduce costs. The researchers concluded that all these factors are in a positive relationship with the professional fulfillment of the employees working in the banking sector. The negative relationship brings no usefulness for the banks (Muhammad et. al., 2010).
There are many other aspects on which the satisfaction of the employees is based. Satisfaction is not only affected by the benefits offered to the employees. Chishti et. al. studied a new variable affecting the satisfaction among the employees. The study analyzed the impact of the management style on the satisfaction of the employees. The variables of the study included satisfaction and participative style of the management. The results showed that greater the employee involvement in the job, greater is the satisfaction. The job involvement increases as the decision making power of the employees increases. More empowered employees are more dedicated towards their job and are less likely to switch jobs. This increased productivity and less turnover rate gives organization competitive edge over the other players in the industry (Chishti et. al., 2010).
The chapter provides with the insight of the methodology of the research. The research is using the both the quantitative and qualitative methods of the research. Both the secondary and the primary data are included in conducting the research. The research is being done in three phases. The first phase includes the pilot study of the employees’ job satisfaction as a pretest using the questionnaire. The second phase includes the collection of the responses of the primary data holders with the help of the provided questionnaire. The third phase includes the case study under consideration in order to further explain the work and importance of the employee’s job satisfaction.
- Sample and Sample Size
The workers of the Bank of the Cyprus are the sample for the study. The research has been using the responses of the both managerial and non-managerial employees working in the organization. This is the primary data source of the research. The sampling includes the random sampling technique in order to choose the employees within the organization. The sample size to 122 observations has been used on order to assess the results.
- Data Collection
The data has been collected using both the primary and the secondary sources. The primary sources includes the employees of the Bank of the Cyprus, whereas, the secondary data sources are the journals, researches, internet, blogs, books, etc.
- Data Analysis
In order to analyze the collected data, different analysis tools are applied on the data. The statistical tool of the SPSS is used in order to analyze the data in the form of quantitative data. The tool is used majorly to analyze the data in the form of tabular data. The tool unable the data to be formulated in the form of graphs, percentages, tabular form, etc.
- Ethical Considerations
Some of the ethical considerations must be kept in mind while taking the data from the subjects. The privacy and confidentiality of the data is the biggest ethical concern of the research. Special care has been taken to take care of this ethical issue.
Ahmed, M., Ali, R. (2009). The Impact Of Rewards And Recognition Programs On Employees otivation And Satisfaction An Empirical Study. International Review of Business Research Papers , 5, pp. 270-279.
Akbar, S., Yousaf, M., Haq, N., Hunjra, A. (2011). Impact of Employee Empowerment on Job Satisfaction: An Empirical Analysis of Pakistan ServiceIndustry. Interdisciplinary Journal of Contemporary Research In Business , 2, pp. 680-685.
Bilgiç, R. (1998). The relationship between job satisfaction and personal characteristics of Turkish workers. Journal of Psychology , pp. 549-557.
Calisir, F., Gumussoy, C., Iskin, I. (2010). Factors affecting itention to quit among IT profesionals in Turkey. European Journal of Social Sciences , pp. 270-279.
Chanel, A., Chanel, S., Chanel, J., Chowdhary, B. (2013). Job Satisfaction Among Bank Employees: A Analysis of the Contributing Variables Towards JobSatisfaction. International Journal of Scientific & Technology Research Volume ,2 (8).
Chen, Z. (2001). Further investigation of the outcomes of loyalty to supervisor. Journal of Managerial Psychology , pp. 650–660.
Churchill, A. G.., Peter, J.P. (1995). Marketing: Creating Value for Customers. Burr Ridge, IL: Irwin.
Dunnette, M. (1976). The nature and causes of job satisfaction. Handbook of industrial and organizational psychology , pp. 1297–1349.
Frink, D. (1996). The effects of organizational restructure on employee satisfaction. Group & Organization Management , pp. 278-303.
Goedegeburre, R. (2005). Employee Satisfaction and Customer Satisfaction: Testing the Service-Profit Chain in a Chinese Securities Firm. Innovative Marketing Journal , pp. 122-130.
Halen, V. (2008). Product Service Systems in the automotive industry: an alternative business model for a sustainable satisfaction system. Brunel University Research, pp. 549-556.
Johnson, J. (1997). Linking employee perceptions of service climate to customer satisfaction. Journal of Personnel Psychology , pp. 831-851.
Kaplan, M. (2002). Goals and marital satisfaction: Perceived support for personal goals and collective efficacy for collective goals. Journal of Social and Clinical Psychology , 21, pp. 157-184.
Kashif, U. (2011). Job Satisfaction in Private Banking Sector of Pakistan. Global Journal of Management and Business Research , pp. 84-93.