This report “organization overview” part, the details of prime bank limited have been provided

This report “Organization Overview” part, the details of Prime bank Limited have been provided.

ORGANIZATION OVERVIEW

The Prime Bank Limited being a banking company has been registered under the Companies

Act 1994 with its Registered Office at 119-120 Motijheel C/A, Dhaka-1000.

The Bank operates as a Scheduled Bank under a Banking license issued by Bangladesh Bank,

the Central Bank of the country.

Vision:

To be the most efficient bank in terms of profitability, customer service and technology

application.

Mission:

Continuous improvement in the business policies and procedures.

Cost reduction through integration of technology at all levels.

The Efforts Are Focused on:

The delivery of quality service in all areas of banking activities with the aim to increase value

to the shareholders’ investments and offer highest possible value to the customers.

Strategic Priority:

To have sustained growth and to broaden and improve the range of products and services.

About the Bank:

In the backdrop of economic liberalization and financial sector reforms, a group of highly

successful local entrepreneurs conceived an idea of floating a commercial bank with different

outlook. For them, it was competence, excellence and consistent delivery of reliable service

with superior value products. Accordingly, Prime Bank Ltd. was created and commencement

of business started on 17th April 1995. The sponsors are reputed personalities in the field of

trade and commerce and their stake ranges from shipping to textile and finance to energy etc.

As a fully licensed commercial bank, Prime Bank Ltd. is being managed by a highly

professional and dedicated team with long experience in banking. They constantly focus on

understanding and anticipating customer needs. As the banking scenario undergoes changes

so is the bank and it repositions itself in the changed market condition.

Prime Bank Ltd. has already made significant progress within a very short period of its

existence. The bank has been graded as a top class bank in the country through internationally

accepted CAMEL rating. The bank has already occupied an enviable position among its

competitors after achieving success in all areas of business operation.

Prime Bank Ltd. offers all kinds of Commercial Corporate and Personal Banking services

covering all segments of society within the framework of Banking Company Act and rules

and regulations laid down by our central bank. Diversification of products and services

include Corporate Banking, Retail Banking and Consumer Banking right from industry to

agriculture, and real state to software.

The bank has consistently turned over good returns on Assets and Capital. During the year

2005, the bank has posted an operating profit of Tk.1520.34 million and its capital funds

stood at Tk.3177.32 million. Out of this, Tk.1400 million consists of paid up capital by

shareholders and Tk.1777.32 million represents reserves and retained earnings. The bank’s

current capital adequacy ratio of 9.96% is in the market. In spite of complex business

environment and default culture, quantum of classified loan in the bank is very insignificant

and stood at less than 0.96%.

Prime Bank Ltd., since its beginning has attached more importance in technology integration.

In order to retain competitive edge, investment in technology is always a top agenda and

under constant focus. Keeping the network within a reasonable limit, our strategy is to serve

the customers through capacity building across multi delivery channels. Our past

performance gives an indication of our strength. We are better placed and poised to take our

customers through fast changing times and enable them compete more effectively in the

market they operate.

The Management :

The management of Prime Bank Limited is consisted of names that reflect the quality of the

bank. They are:

Mr. Azam J. Chowdhury, Chairman

Quazi Sirazul Islam, Vice Chairman

Mrs. Shahnaz Quashem, Vice Chairperson

Mrs. Hasina Khan, Director

Mohammad Aminul Haque, Director

Capt. Imam Anwar Hossain, Director

Qazi Saleemul Huq, Director

Md. Shirajul Islam Mollah , Director

Mrs. Razia Rahman, Director

Meherunnesa Haque, Director

Ms. Saheda Pervin Trisha, Director

Manzur Murshed, Director

Prof. Dr. Ainun Nishat, Ph.D, Director

Mohammad Delwar Hossain, Director

Dr. Mohammed Aslam Bhuiyan, Director

M. Ehsanul Haque, Managing Director

The Executive Committee:

Capt. Imam Anwar Hossain, Chairman

Mrs. Hasina Khan, Vice Chairperson

Mrs. Razia Rahman, Vice Chairperson

Performance at a Glance:

Key Financial Data & Key Ratios

Particulars 2005 2006 2007 2008 2009

Interest income 3446 5199 7170 9096 10831Interest expenses 2271 3698 5267 7126 8426Net interest income 1175 1500 1903 1970 2405Non-interest income 1232 1732 2913 3808 5790Non-interest Expenses 886 1101 1559 1931 2907Net Non-interest income 346 631 1354 1877 2883Profit before provision and tax 1520 2131 3257 3847 5289Provision for loans and assets 320 390 910 1384 700Profit after provision before tax 1201 1741 2347 2463 4589Tax including deferred tax 633 689 946 1232 1805Profit after tax 568 1052 1401 1232 2784Balance Sheet Authorized Capital 4000 4000 4000 10000 10000Paid-up Capital 1400 1750 2275 2844 3555Total Shareholder's equity 2808 3860 5273 6697 11745

Deposits 36022 54724 70512 88021 106956Long-term liabilities 11406 16877 15267 31044 38209Loans and advances 31916 45010 57683 75156 89252Investments 3940 7844 12698 23103 19934Property,Plant and Equipment 372 412 660 1375 1573Earning Assets 37439 55458 72798 100261 109905Net current assets 31 5286 1338 9962 3435Total assets 41506 60899 79588 110437 124806Current ratio 1.00 0.88 0.97 0.88 0.96Equity Debt ratio 7.00% 7.00% 7.10% 6.45% 10.39%Other Business Import 40303 52639 70617 91424 96452Export 28882 41801 51316 68550 76097Remittance 3688 15050 15905 22669 26447Guarantee Business 5303 5386 7033 10010 13673Capital MeasuresTotal risk weighted assets 31890 44324 55485 72253 82710Core capital (Tier-I) 2808 3860 5261 6265 9057Supplementary capital (Tier-II) 369 549 1122 1594 3112Total Capital 3177 4409 6383 7859 12168Tier-I capital ratio 8.80% 8.71% 9.50% 8.67% 10.95%Tier-II capital ratio 1.16% 1.24% 2.00% 2.21% 3.76%Total capital ratio 9.96% 9.95% 11.50% 10.88% 14.71%Credit Quality Non performing loans (NPLs) 308 367 777 1323 1149NPLs to total loans and advances(%)

0.96% 0.82% 1.35% 1.76% 1.29%

Provision for unclassified loans 365 545 895 1040 1303Provision for classified loans 127 309 478 734 631Share Information Market price per share (Taka) 682 529 924 540 653No. of shares outstanding(Million) 14 17.50 22.75 28.44 35.55No. of shareholders (actual) 4467 5262 7368 9180 10339Earnings per share (Taka) 40.59 60.11 61.57 43.32 78.33Dividend 25.00% 30% 35% 25% 40% Cash 0.00% 0.00% 10.00% 0.00% 10% Bonus 25% 30% 25% 25% 30%Effective dividend ratio 29.17% 33.33% 40.00% 27.78% 44.44%Market capitalization 9541 9253 21021 15349 23212Net asset value per share (Taka) 201 221 232 235 330Price earning ratio (times) 16.79 8.80 15.01 12.46 8.34Key Financial RatiosOperating Performance RatioNet interest margin on average earning assets

3.64% 3.23% 2.97% 2.28% 2.29%

Net non-interest margin on average earning assets

1.07% 1.36% 2.11% 2.17% 2.74%

Earning base in assets (average) 87.41% 90.71% 91.29% 91.07% 89.34%

Cost income raito 36.82% 34.07% 32.37% 33.42% 35.47%Credit deposit raito 88.60% 82.25% 81.81% 85.38% 83.45%Cost of funds on average deposits 7.09% 8.15% 8.41% 8.55% 8.41%Yield on average advance 12.50% 13.52% 13.96% 13.69% 13.18%Return on average assets 1.54% 2.05% 1.99% 1.30% 2.37%Return on average equity 22.51% 31.55% 30.68% 20.58% 30.19%Other information No of Branches 41 50 61 70 84No of SME - - - - 5No of employees 1024 1172 1400 1551 1844No of foreign correspondents 517 517 553 518 602Average earning assets 32285 46448 64128 86530 105083Average total assets 36934 51203 70244 95013 117622Average deposit 32046 45373 62618 79266 97488Average advance 27568 38463 51347 66420 82204Average equity 2524 3334 4566 5985 9221

Services Provided by the Bank:

Deposit Schemes:

Bank is the largest mobilizer of surplus domestic savings. For poverty alleviation, we need

self employment, for self-employment we need investment and for investment we need

savings. In the other words, savings help capital formations and the capital formations help

investments in the country. The investment in its turn helps industrialization leading towards

creation of wealth of the country. And the wealth finally takes the country on road to progress

and prosperity. As such, savings is considered the very basis of prosperity of the country. The

more the growth of savings, the more will be the prosperity of the nation.

The savings rate in Bangladesh is one of the lowest in the world rate of domestic saving

being 17.78 %. In order to improve the savings rate, Financial Institutions responsible for

mobilization of savings should offer attractive Savings Schemes so that the marginal

propensity to save increases. The savings do not, of course, depend only on the quantum of

income but largely depend on the habit of savings of the people.

The different saving schemes provided by the bank:

Contributory Savings Schemes

Education Savings Scheme

Short term deposit

Double Benefit Deposit Scheme

Resident Foreign Currency Deposit Account

Non-Resident Taka Account

House Building Deposit Scheme

Monthly benefit Deposit Scheme

Fixed Deposit scheme

Lakhopati Deposit Scheme

Foreign Currency Account

Non-Resident Foreign currency deposit account

Non-Resident Investor’s Taka Account

Prime Millionaire scheme

Loan Scheme :

General Loan

Lease Finance

House Building/Apartment Loan

Small and Medium Enterprise (SME)

Retail Loan

Hire Purchase

Advance against share

Islamic Mode of Operation:

Prime Bank Limited has started its operation as a Conventional Bank in April 1995. But

pretty soon afterwards, within few months, the Bank has taken up the Challenge to start

Islami Banking Operations. The Challenge is not so much as in operating Islamic Banking

but in maintaining both the forms in Parallel. From its inception as an Islami Bank the bank

has proven itself to be worthy of its slogan of ‘Bank with a Difference’, through successful

operation of Islami Banking.

Prime Bank has started its Islami Banking operation through its first Branch being

inaugurated at 19, Dilkusha C/A, Dhaka on 18 December 1995. Since then it has so far has

established four more branches at different locations in the Country. Because of its popularity

and management’s commitment toward social well being gradual expansion of Prime Bank’s

Islami Banking operations is assured. Following are the salient features of Islamic Banking,

as is practiced in Prime Bank Limited:

01. All activities are conducted according to Islamic Shariah.

02. Interest free monetary operations.

03. Building partnership relation between the Bank and its customers.

04. Following Islamic principles in its investment portfolio.

05. While investing special consideration to social needs is given.

06. Through small and long term deposit schemes providing hope to the poor income

group of the society.

07. Client service centric banking, through which making the clients feel special.

08. Conduct welfare activates etc.

Service Portfolio:

Prime Bank Limited provides following services under Islami Banking:

01. Deposit

02. Investment

03. Foreign Trade

04. Remittance and Fund Transfer

Weight age Principle in Distributing Profit to the Depositors:

Deposits of different A/Cs are not given equal weightage in ascertaining profit rate. Bank

gets opportunity to invest fund for long period if the deposit is obtained for long period. If

duration of deposit is long term the risk of deposit is higher. Depositors participate in long

term investment of the bank and face higher risk. As such, Bank fix up profit on the

different weightage against various types of deposit A/Cs on the basis of risk. Profit to the

depositors for the year 2004 has been paid as per following weightage and rates:

Sl. No. Deposit Types Weightage Final rate of profit for

2005

01. Mudaraba Saving Deposits 0.75 6.25%

02. Mudaraba Short Term Deposits 0.52 4.15% - 5.15%

03. Mudaraba Term Deposits for 36

months

1.00 8.60% - 10.75%


months

0.98 8.60% - 10.75%

05. Mudaraba Term Deposits for 12 0.96 8.60% - 10.75%

months


months

0.92 7.85% - 10.50%


months

0.88 7.60% - 10.50%

08. Mudaraba Contributory Savings

Scheme

1.05 9.00% - 9.50%

09. Mudaraba Monthly Profit Deposits

Scheme

1.02 9.00% - 9.15%

10. Mudaraba Education Savings

Scheme

1.20 10.75% - 11.25%

11. Mudaraba Hajj Savings Scheme 1.20 9.00% - 9.50%

12. Mudaraba Special Deposit Scheme 1.02 9.00% - 9.15%

13. Lakhopati Deposit Scheme 1.05 9.00% - 9.50%

Shariah Council:

The bank established a Shariah Council to advice and provide guidance on Islamic Banking

Operations. The following Islamic scholars having vast knowledge and ideas in Islamic

Sharia relating to banking operations sit on the Board:

Name Status in the

Shariah Council

Maulana Mohammad Salahuddin

Ex-Principal Madrasha-e-Alia, Bakshi Bazar, Dhaka

Chairman

Mr. Shah Abdul Hannan

Ex-Chairman, Islami Bank Bangladesh Ltd.

Vice Chairman

Maulana Abul Kalam Azad

Chairman, Bangladesh Masjid Council, Uttara, Dhaka.

Member

Maulana Mohammad Shahidul Islam Member

Professor Dr. Shamsher Ali

Vice Chancellor, Southeast University,Dhaka.

Member

A.S.M Fakhrul Ahsan

Former Deputy Governor, Bangladesh Bank

Member

Azam J Chowdhury Member

Chairman, Prime Bank Ltd.

Capt. Imam Anwar Hossain

Director, Prime Bank Ltd.

Member

Mohammad Ehsanul Haque

Managing Director, Prime Bank Limited

Member

Prime Line (Any branch banking):

Cash withdrawal from his/her account at any branch of the Bank irrespective of

location.

Cash deposit in his/her account at any branch of the Bank irrespective of location.

Cash deposit in other's account at any branch of the Bank irrespective of location.

Transfer of money from his/her account with any branch of the Bank.

Master Card:

Prime Bank Limited obtained Principal Membership of Master-Card International in the

month of May 1999. Within a period of 6 months, the bank successfully launched Master

Card-Credit Card which created a new dimension in its customer service and consumer

financing.

The Special feature of the Prime Bank Master Card is that its bears the card holder’s photo on

the card, which is the first of its kind in Bangladesh and adds security against misuse. Prime

Bank Limited issues 4 types of cards. These are Gold Local & International and Silver Local

& International. Local cards can be used in Bangladesh only.

Followings are the main feature of MasterCard Credit:

Prime Bank Ensure High Level of Security by inserting your Photograph on the Card.

20 to 50 days credit form the date of transaction. When you receive your monthly

statement, you can either choose to pay in full or just minimum due amount shown on

the statement. No interest is charged if you pay in full within payment due date.

24 hours a day, 365 days worldwide service.

No joining/administrative fees.

waiver of annual fees for International Card: If you accumulate 20,000 Prime Bank

Bonus Point for your Gold Card or, 10,000 Bonus Point for your Silver Card in a year

then you enjoy our Card without fees( $ 1 purchase: 1 Bonus).

Waiver of annual fee for Local Card: If you accumulate 10,000 Prime Bank Bonus

Point for your Gold Card or 8,000 Bonus Point for your Silver Card in a year then you

enjoy our Card without fees( Tk. 50/- purchase : 1 Bonus point).

The Highest Prime Bank Bonus Point holder can enjoy free air ticket Dhaka-

Bangkok-Dhaka. (Business Class).

Cash advance facilities.

1, 39, 00,000 locations accept MasterCard worldwide.

SWIFT:

Prime Bank Limited is one of the first few Bangladeshi Banks who have become member of

SWIFT (Society for Worldwide Inter-bank Financial Telecommunication) in 1999. SWIFT

is members owned co-operative, which provides a fast and accurate communication network

for financial transactions such as Letters of Credit, Fund transfer etc. By becoming a member

of SWIFT, the bank has opened up possibilities for uninterrupted connectivity with over

5,700 user institutions in 150 countries around the world.

One Stop Utility Services Scheme:

Like any other country of the world, the people living in the urban areas of our country lead a

very busy life. Time is very valuable to them. Despite this, they are to waste their valuable

time at the counter of different Banks and other Institutions for payment of their monthly bills

of different utility services like Electricity, Telephone, Water, Gas etc. They, as such, face

enormous difficulties for payment of their monthly bills in time. Such inconveniences of the

urban people can be removed by making an arrangement to collect all the bills of various

utility services at One Point.

Scope of the Service:

With this end in view, Prime Bank Limited has introduced a Scheme entitled "ONE STOP

UTILITY SERVICES SCHEME". The scheme is designed to provide all the required services

to the customer in making payment of their following bills on their behalf from the counter of

the Bank:

To pay Electricity Bills

Cash deposit in his/her account at any branch of the Bank irrespective of

location.

Cash deposit in other's account at any branch of the Bank irrespective of location.

Transfer of money from his/her account with any branch of the Bank.

Any amount can be deposited or transferred under Prime Line. In the system, however,

at present there is a limit for cash withdrawal through bearer or by account holder

himself.

Any amount can be deposited or transferred under Prime Line. In the system, however,

at present there is a limit for cash withdrawal through bearer or by account holder

himself.

Terms & Conditions of Online Branch Banking Service

ONLINE BRANCH BANKING SERVICE is designed to serve its valued clients.

Under this system, you shall be able to do the following type of transactions:

Cash withdrawal from your account at any branch of the Bank.

Deposit in your account at any Branch of the Bank.

Transfer of money from your account to any other account with any Branch of the

Bank.

Existing Branches:

Dhaka Division:

Total: 45

01. Motijheel

02. Moulvi Bazar

03. IBB Dilkusha

04. Mohakhali

05. Kawran Bazar

06. Elephant Road

07. Mouchak

08. Gulshan

09. Narayanganj

10. Bangshal

11. Gonakbari

12. Uttara

13. Foreign

Exchange Branch

14. Satmasjid Road

15. New Eskaton

16. Madhabdi

17. Banani

18. IBB Mirpur

19. Pragati Sarani

20. Pragati Sarani

21. Shimrail

22. Asad Gate

23. Tongi

24. Panthapath

25. Dhanmondi

26. SBC Tower

27. Jaydevpur

Chowrasta

28. Mirpur-1

29. Tangail

30. Ashulia

31. Bijoy Nagar

32. Ring Road

33. Pallabi

34. Bashundhara

35. Joypara

36. Adamjee EPZ

37. Gareb-E-Newaz

Avenue

38. Bhairab

39. Mymensingh

40. Faridpur

41. Damudya

42. Serajdikhan

43. Jatrabari

44. Wari

45. Savar

Chittagong Division:

Total: 19

01. Khatungonj

02. AGRABAD

03. Jubilee Road

04. IBB O.R. Nizam

Road

05. IBB Pahartali

06. Fatikchari

07. Laldighi East

08. Hathazari

09. Cox’s Bazar

10. Feni

11. Comilla

12. Raojan

13. Prabartak More

14. Banshkhali

15. Hajigonj

16. Cahumuhani

17. Oxygen More

18. Chauddagram

19. Halishahar

Rajshahi Division:

Total: 09

01. Rajshahi

02. Bogra

03. Naogaon

04. Rangpur

05. Chapai Nawabganj

06. Dinajpur

07. Natore

08. Ishwardi

09. Pabna

Khulna Division:

Total: 02

Khulna

Jessore

Sylhet Division:

Total: 12

01. Sylhet

02. IBB Amberkhana

03. Court Road

04. Tajpur

05. Upashahar

06. Beanibazar

07. Bishwanath

08. Sreemangal

09. Subid Bazar

10. Barelekha

11. Habigonj

12. Nabigonj

Barisal Division:

Total: 01

Barisal

Here, IBB means Islamic Banking Branch.

ATM Locations:

o Dhaka Division: 22

o Chittagong: 05

o Sylhet: 01

SME Service Center: 06

Concerns (Subsidiary Companies):

Prime Exchange Co. Pte. Ltd.:

Prime Bank Limited established its fully-owned subsidiary "Prime Exchange Co. Pte Ltd." to

offer remittance services to Bangladeshi nationals in Singapore, which started its operation

from 8th July, 2006, under remittance license received from Monetary Authority of

Singapore (MAS) and approval of Bangladesh Bank. Mr. Azam J Chowdhury, Chairman of

the Board of Directors of Prime Bank Ltd., is the Chairman of Prime Exchange Co. Pte Ltd.

while Mr. M Ehsanul Haque, Managing Director of the Bank, is the Director of the Prime

Exchange Co. Pte Ltd.

The Exchange Company is located at 2A Desker Road, (2nd floor), Singapore 209549 a very

convenient place at Serangoon area near Mustafa Centre, where Bangladeshi nationals

congregate during weekends for social interaction and money remittance services. Opening of

the fully owned subsidiary in Singapore to offer remittance services to Bangladeshi nationals

will add new dimension to the Bank's remittance operation.

PBL Exchange (UK) Ltd.:

Company in UK established on 19 Nov 2009

Registered office : The Limes 1339 High Road, Whetstone London N209HR, United

Kingdom

Company fully owned by Prime Bank Limited

Board of Directors : Mr. Azam J Chowdhury, Capt Imam Anwar Hossain and Mr. M

Ehsanul Haque

Nature of business: Remittance (Money Transfer)

Office locations : London, Birmingham, Manchester where Bangladeshi community

lives

Tentative date of opening: 26 March 2010;

Mode of payment to beneficiaries :

o Instant Cash Payment through Prime Bank's Branch and SME centers all

connected under online banking

o Over the counter cash payment through 400+ Branch network of BURO

Bangladesh

o Prime Bank's account credit and withdrawal facility through network of 550+

ATMs

o Account credit to any other banks in Bangladesh

Full remittance amount paid to beneficiaries in Bangladesh without deduction of any

charge

Dedicated team of officials of Central Foreign Remittance Cell (CFRC) ensure

efficient customer service

Money transfer operation in UK is carried out through online software

This is second such initiative after success in Singapore (2006)

Initiative in Singapore was first for any private sector bank in Bangladesh.

INTRODUCTION TO THE STUDY:

Rationale of the Study:

Commitment of the employees carries utmost importance as far as an organization is

concerned. It is the employees that create the organization and their motive and focus makes

or breaks the organization. If the employees’ commitment is towards the betterment of the

organization, that organization needs very little to succeed. On the other hand, if the

employees’ commitment is towards his or her own betterment, that means if he or she is in

the organization for the designated post only, then the organization’s road to success will be

full of stumbles.

This is why this study is being proposed. In case of Prime Bank Limited, most of the

employees’ reaction is mixed about their job. Their opinion regarding their satisfaction varies

from time to time. When they are getting promoted, they are very satisfied. Whenever their

bosses or colleagues oppose their ideas, that satisfaction runs out instantly. In my one month

period as an intern, I have not seen that an employee is more satisfied that dissatisfied, or

more dissatisfied than satisfied about their job. Their reactions are very much variable. The

reason should be found out.

Banks have been an important part of the economy of Bangladesh. In the beginning, there

was no private bank. And today, there is no public bank except Bangladesh Bank. Employees

are at the core of an organization, regardless of the type. In all these years, the perception and

thinking pattern of the employees has changed significantly. Organizational commitment is

an important part of the perception of the employees. And in this way, comes my research.

Here, have chosen the employees of Prime Bank Limited as the target group of Bangladesh.

Organizational commitment is the most important driving force for the employees to work

well for the organization. But most of the employees and the organizations fail to recognize

the importance of the term. Other commitments to the job are also important but this

particular commitment is the most contributing factor to employee’s productivity. This

commitment is difficult go grow among the employees. This is a long term procedure if it

grows in an employee. As this deals with the whole organization, formation of these takes

time. Sometimes it may take ten to fifteen years. It is only after that that the employees start

to feel the psychological attachment to the organization and feels reluctant to leave the

organization.

In Bangladesh, in former nationalized banks, most of the employees are there for more that

ten years. And in private banks, there is a question of “gratuity” in front of the employees.

So, I thought that employees of these banks can be the perfect target group for a research in

this field. As my internship was in Prime Bank Limited, chose the employees of this bank as

my target group.

The area of research, according to me, is neither too narrow nor broad. The worked on the

organizational commitment of the employees of Prime Bank Limited. The reason that chose

this area is that I am from the BBA department. This is why my attention always remains on

the business related terms. And organizational commitment is a vast topic to work with.

There are many things to learn from this research. As going to be a future employee of an

organization, this will help to a great deal. will be able to know what factors contribute to the

well being of an employee. Coming back to the area of research, this is the most powerful

element to motivate an employee. If an employee is motivated to work in a better fashion for

the organization, no matter the position or is working in, his or her satisfaction level will be

high. will feel himself as a part of the organization, a proud one. The intend to find the extend

of this in the employees of Prime Bank Limited.

Statement of the Problems:

At the end of the study, the following questions that would be important for conducting my

research should be answered:

In which way the employees of Prime Bank Limited are committed?

Does Job Satisfaction affect their Organizational Commitment?

If yes, then in which way, positively or negatively?

What other factors affect the organizational commitment?

If the commitment that the employees have is not for the best of the bank, what are

the possible ways to cope up with that?

Scope and Delimitation of the Study:

The scope of this study is vast. Such concepts like job satisfaction, workplace environment,

job impact, infrastructural condition of the bank, the creativity that employees can or cannot

practice etc will be used. Through all these variables the commitment of the employees can

be reflected. Through interviews of the employees the primary data will be collected. The

supervisor at the bank, the branch manager will also help me with secondary data. The also

take help from online journals and articles to collect secondary data as well. The only

limitations that will affect the study will be the limitation of time as there is always a scope of

betterment if the time limit increases.

Organizational commitment is a vast issue. What constitutes commitment in organizations?

In one view, commitment is the total capacity to act in ways that meet the organization's

goals and interests. Although a simple enough definition, it is inadequate. The problem is that

commitment has now been defined in a number of widely varying ways. The sociologist

Etzioni argues that commitment, and the authority that organizations have over members, is

rooted in the nature of employee involvement in the organization. It is not constructed by a

single entity. There are some contributing factors to that. In the Bangladeshi context, the

factors that are the most important according to me are: job satisfaction, workplace

environment and job involvement.

Job Satisfaction:

Job satisfaction is the level of satisfaction that the employee feels to be in the respective job.

Job satisfaction, a worker's sense of achievement and success, is generally perceived to be

directly linked to productivity as well as to personal wellbeing. Job satisfaction implies doing

a job one enjoys, doing it well, and being suitably rewarded for one's efforts. Job satisfaction

further implies enthusiasm and happiness with one's work. For the organization, job

satisfaction of its workers means a work force that is motivated and committed to high

quality performance.

Increased productivity, the quantity and quality of output per hour worked, seems to be a

byproduct of improved quality of working life. It is important to note that the literature on the

relationship between job satisfaction and productivity is neither conclusive nor consistent.

Unhappy employees, who are motivated by fear of job loss, will not give 100 percent of their

effort for very long. Though fear is a powerful motivator, it is also a temporary one, and as

soon as the threat is lifted performance will decline.

Probably the most important point to bear in mind when considering job satisfaction is that

there are many factors that affect job satisfaction and that what makes workers happy with

their jobs varies from one worker to another and from day to day. Apart from the factors

mentioned above, job satisfaction is also influenced by the employee's personal

characteristics, the manager's personal characteristics and management style, and the nature

of the work itself. Managers who want to maintain a high level of job satisfaction in the work

force must try to understand the needs of each member of the work force.

For example, when creating work teams, managers can enhance worker satisfaction by

placing people with similar backgrounds, experiences, or needs in the same workgroup. Also,

managers can enhance job satisfaction by carefully matching workers with the type of work.

For example, a person who does not pay attention to detail would hardly make a good

inspector, and a shy worker is unlikely to be a good salesperson. As much as possible,

managers should match job tasks to employees' personalities.

In the opinion, in the context of Bangladesh, the factors that most contribute to job

satisfaction is compensation and the process of performance evaluation

Workplace Environment: An employee’s workplace environment is a key determinant of

their level of productivity. How well the workplace engages an employee impacts their level

of motivation to perform. This then influences that employee’s:

error rate

level of innovation

collaboration with other employees

absenteeism

How long they stay in the job.

The most important of these workplace environment factors that either lead to engagement or

disengagement are shown in the following diagram. A close consideration of each of these

factors is also very useful in ensuring that employees apply the skills they learn during

training programs once they return to their workplace. Tending to the structural and

interpersonal aspects of each of these factors enables employees to apply the required skills in

a consistent and habitual way.

Employees are involved in setting meaningful goals and performance measures for their

work. This can be done informally between the employee and their immediate supervisor or

as part of an organization’s formal performance management process. The key here is that

each employee is actively engaged in the goal-setting process and takes ownership of the

final agreed goals and measures.

The organization has determined what motivates its employees and has set up formal and

informal structures for rewarding employees that behave in the way required. Rewards may

consist of a mix of internal rewards, such as challenging assignments, and external rewards,

such as higher compensation and peer recognition.

Skilled and respected people are available to employees to help them perform better in their

current role and to assist them develop further into a future role. Mentors and coaches may be

internal to an organization or external. Either way, they possess the necessary facilitation

skills to assist employees develop and apply new skills. Time and material resources are

available to employees, enabling them to perform to the best of their ability. Individual

workloads and organizational systems and processes do not hinder employees from applying

established skills or from practicing newly learned skills.

Models of job satisfaction:

Affect Theory:

Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job

satisfaction model. The main premise of this theory is that satisfaction is determined by a

discrepancy between what one wants in a job and what one has in a job. Further, the theory

states that how much one values a given facet of work (e.g. the degree of autonomy in a

position) moderates how satisfied/dissatisfied one becomes when expectations are/aren’t met.

When a person values a particular facet of a job, his satisfaction is more greatly impacted

both positively (when expectations are met) and negatively (when expectations are not met),

compared to one who doesn’t value that facet. To illustrate, if Employee A values autonomy

in the workplace and Employee B is indifferent about autonomy, then Employee A would be

more satisfied in a position that offers a high degree of autonomy and less satisfied in a

position with little or no autonomy compared to Employee B. This theory also states that too

much of a particular facet will produce stronger feelings of dissatisfaction the more a worker

values that facet.

Dispositional Theory:

Another well-known job satisfaction theory is the Dispositional Theory Template:

JacksonApril 2007. It is a very general theory that suggests that people have innate

dispositions that cause them to have tendencies toward a certain level of satisfaction,

regardless of one’s job. This approach became a notable explanation of job satisfaction in

light of evidence that job satisfaction tends to be stable over time and across careers and jobs.

Research also indicates that identical twins have similar levels of job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory was the Core Self-

evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four

Core Self-evaluations that determine one’s disposition towards job satisfaction: self-esteem,

general self-efficacy, locus of control, and neuroticism. This model states that higher levels of

self-esteem (the value one places on his/her self) and general self-efficacy (the belief in one’s

own competence) lead to higher work satisfaction. Having an internal locus of control

(believing one has control over her\his own life, as opposed to outside forces having control)

leads to higher job satisfaction. Finally, lower levels of neuroticism lead to higher job

satisfaction.

Two-Factor Theory (Motivator-Hygiene Theory):

Frederick Herzberg’s Two factor theory (also known as Motivator Hygiene Theory) attempts

to explain satisfaction and motivation in the workplace. This theory states that satisfaction

and dissatisfaction are driven by different factors – motivation and hygiene factors,

respectively. An employee’s motivation to work is continually related to job satisfaction of a

subordinate. Motivation can be seen as an inner force that drives individuals to attain

personal and organizational goals.

Motivating factors are those aspects of the job that make people want to perform, and provide

people with satisfaction, for example achievement in work, recognition, promotion

opportunities. These motivating factors are considered to be intrinsic to the job, or the work

carried out. Hygiene factors include aspects of the working environment such as pay,

company policies, supervisory practices, and other working conditions.

While Hertzberg's model has stimulated much research, researchers have been unable to

reliably empirically prove the model, with Hackman & Oldham suggesting that Hertzberg's

original formulation of the model may have been a methodological artifact. Furthermore, the

theory does not consider individual differences, conversely predicting all employees will

react in an identical manner to changes in motivating/hygiene factors. Finally, the model has

been criticized in that it does not specify how motivating/hygiene factors are to be measured.

Job Characteristics Model:

Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a

framework to study how particular job characteristics impact on job outcomes, including job

satisfaction. The model states that there are five core job characteristics (skill variety, task

identity, task significance, autonomy, and feedback) which impact three critical

psychological states (experienced meaningfulness, experienced responsibility for outcomes,

and knowledge of the actual results), in turn influencing work outcomes (job satisfaction,

absenteeism, work motivation, etc.). The five core job characteristics can be combined to

form a motivating potential score (MPS) for a job, which can be used as an index of how

likely a job is to affect an employee's attitudes and behaviors.

Relationships and practical implications:

Job Satisfaction can be an important indicator of how employees feel about their jobs and a

predictor of work behaviors such as organizational citizenship, absenteeism, and turnover.

Further, job satisfaction can partially mediate the relationship of personality variables and

deviant work behaviors.

One common research finding is that job satisfaction is correlated with life satisfaction. This

correlation is reciprocal, meaning people who are satisfied with life tend to be satisfied with

their job and people who are satisfied with their job tend to be satisfied with life. However,

some research has found that job satisfaction is not significantly related to life satisfaction

when other variables such as nonworking satisfaction and core self-evaluations are taken into

account.

An important finding for organizations to note is that job satisfaction has a rather tenuous

correlation to productivity on the job. This is a vital piece of information to researchers and

businesses, as the idea that satisfaction and job performance are directly related to one

another is often cited in the media and in some non-academic management literature. A

recent meta-analysis found an average uncorrected correlation between job satisfaction and

productivity to be r=.18; the average true correlation, corrected for research artifacts and

unreliability, was r=.30.

Further, the meta-analysis found that the relationship between satisfaction and performance

can be moderated by job complexity, such that for high-complexity jobs the correlation

between satisfaction and performance is higher (ρ=.52) than for jobs of low to moderate

complexity (ρ=.29). Job Satisfaction also has high relationship with intention to quit. It is

found in many researches that Job Satisfaction can lead to Intention to stay / quit in an

organization.

Recent research has also shown that Intention to Quit can have effect like poor performance

orientation, organizational deviance, and poor organizational citizenship behaviors (Krishnan,

Sandeep., and Singh., Manjari, 2010).In short, the relationship of satisfaction to productivity

is not necessarily straightforward and can be influenced by a number of other work-related

constructs, and the notion that "a happy worker is a productive worker" should not be the

foundation of organizational decision-making.

With regard to job performance, employee personality may be more important than job

satisfaction. The link between job satisfaction and performance is thought to be a spurious

relationship; instead, both satisfaction and performance are the result of personality.

Job Involvement:

Job involvement (Employee engagement, or Work engagement,) is a concept that is generally

viewed as managing discretionary effort, that is, when employees have choices, they will act

in a way that furthers their organization's interests. An engaged employee is a person who is

fully involved in, and enthusiastic about, his or her work.

In a study of professional service firms, the Hay Group found that offices with engaged

employees were up to 43% more productive. The most striking finding is the almost 52%

gaps in operating incomes between companies with highly engaged employees and

companies whose employees have low-engagement scores. High-engagement companies

improved 19.2% while low-engagement companies declined 32.7% in operating income

during the study period.

For example, New Century Financial Corporation, a U.S. specialty mortgage banking

company, found that account executives in the wholesale division who were actively

disengaged produced 28% less revenue than their colleagues who were engaged.

Furthermore, those not engaged generated 23% less revenue than their engaged counterparts.

Engaged employees also outperformed the not engaged and actively disengaged employees in

other divisions. It comes as no surprise, then, that engaged employees have been statistically

linked with innovation events and better problem solving.

Kahn was the first scholar to define “personal engagement” as the “…harnessing of

organization member’s selves to their work roles: in engagement, people employ and express

themselves physically, cognitively, emotionally and mentally during role performances”.

Based on this definition a questionnaire was developed that assesses three dimensions:

cognitive, emotional and physical engagement.

An alternative academic considers work engagement as a psychological state of fulfillment

and the positive antithesis of burnout. It is defined as “…a positive, fulfilling, work-related

state of mind that is characterized by vigor, dedication, and absorption”.

Whereby vigor is characterized by high levels of energy and mental resilience while working,

the willingness to invest effort in one’s work, and persistence even in the face of difficulties;

dedication by being strongly involved in one's work, and experiencing a sense of

significance, enthusiasm, inspiration, pride, and challenge; and absorption by being fully

concentrated and happily engrossed in one’s work, whereby time passes quickly and one has

difficulties with detaching oneself from work.

These three aspects are assessed by the Utrecht Work Engagement Scale (UWES), which is

currently available in 20 languages and can be used freely for non-commercial purposes. In

addition a short form and a student version are available. The reliability and validity of the

UWES is documented is various studies.

Research Findings:

Work engagement as measured by the UWES is positively related with, but can nevertheless

be differentiated from, similar constructs such as job involvement and organizational

commitment, in-role and extra-role behavior; personal initiative, Type A, and workaholism.

Moreover, engaged workers are characterized by low levels of burnout, as well as by low

levels of neuroticism and high levels of extraversion. Also they enjoy good mental and

physical health

Work engagement is found to be positively associated with job resources such as social

support from co-workers and from one’s superior, performance feedback, coaching, job

control, task variety, opportunities for learning and development, and training facilities. In

short: engaged workers work in challenging jobs.

Engagement is related to better performance. For instance, engaged contact workers from

hotels and restaurants produce better service quality as perceived by their customers; the

more engaged university students feel the higher their next year’s Grade Point Average; the

higher the level of engagement of flight attendants, the better their in- and extra-role

performance on the flight; and the more engaged restaurant workers, the higher the financial

turnover of the shift.

It has been routinely found that employee engagement scores account for as much as half of

the variance in customer satisfaction scores. This translates into millions of dollars for

companies if they can improve their scores. Studies have statistically demonstrated that

engaged employees are more productive, more profitable, more customer-focused, safer, and

less likely to leave their employer.

Employees with the highest level of commitment perform 20% better and are 87% less likely

to leave the organization, which indicates that engagement is linked to organizational

performance. For example, at the beverage company of MolsonCoors, it was found that

engaged employees were five times less likely than non-engaged employees to have a safety

incident and seven times less likely to have a lost-time safety incident. In fact, the average

cost of a safety incident for an engaged employee was $63, compared with an average of

$392 for a non-engaged employee.

Consequently, through strengthening employee engagement, the company saved $1,721,760

in safety costs in 2002. In addition, savings were found in sales performance teams through

engagement. In 2005, for example, low-engagement teams were seen falling behind engaged

teams, with a difference in performance-related costs of low- versus high-engagement teams

totaling $2,104,823.3 (Lockwood).

Only 29% of employees are actively engaged in their jobs. These employees work with

passion and feel a profound connection to their company. People that are actively engaged

help move the organization forward. 84% of highly engaged employees believe they can

positively impact quality of their organization's products, compared with only 31% of the

disengaged. 72% of highly engaged employees believe they can positively affect customer

service, versus 27% of the disengaged. 68% of highly engaged employees believe they can

positively impact costs in their job or unit, compared with just 19% of the disengaged.

Engaged employees feel a strong emotional bond to the organization that employs them. This

is associated with people demonstrating a willingness to recommend the organization to

others and commit time and effort to help the organization succeed. It suggests that people

are motivated by intrinsic factors (e.g. personal growth, working to a common purpose, being

part of a larger process) rather than simply focusing on extrinsic factors (e.g., pay/reward).

Recent research has focused on developing a better understanding of how variables such as

quality of work relationships and values of the organization interact and their link to

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important work outcomes. 84% of highly engaged employees believe they can positively

impact the quality of their organization's products, compared with only 31 percent of the

disengaged. From the perspective of the employee, "outcomes" range from strong

commitment to the isolation of oneself from the organization.

The study done by the Gallup Management Journal has shown that only 29% of employees

are actively engaged in their jobs. Those "engaged" employees work with passion and feel a

strong connection to their company. About ⅔ of the business units scoring above the median

on employee engagement also scored above the median on performance. Moreover, 54% of

employees are not engaged meaning that they go through each workday putting time but no

passion into their work. Only about ⅓ of companies below the median on employee

engagement scored above the median on performance.

Organizational Commitment:

Organizational commitment in the fields of Organizational Behavior and

Industrial/Organizational Psychology is, in a general sense, the employee's psychological

attachment to the organization. It can be contrasted with other work-related attitudes, such as

Job Satisfaction, defined as an employee's feelings about their job, and Organizational

identification, defined as the degree to which an employee experiences a 'sense of oneness'

with their organization.

Beyond this general sense, Organizational scientists have developed many nuanced

definitions of organizational commitment, and numerous scales to measure them. Exemplary

of this work is Meyer & Allen's model of commitment, which was developed to integrate

numerous definitions of commitment that had proliferated in the literature.

Model of commitment:

According to Meyer and Allen's (1991) three-component model of commitment, prior

research indicated that there are three "mind sets" which can characterize an employee's

commitment to the organization:

Affective Commitment: AC is defined as the employee's positive emotional attachment to the

organization. An employee who is affectively committed strongly identifies with the goals of

the organization and desires to remain a part of the organization. This employee commits to

the organization because he/she "wants to". In developing this concept, Meyer and Allen

drew largely on Mowday, Porter, and Steers's (1982) concept of commitment, which in turn

drew on earlier work by Kanter (1968).

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Continuance Commitment: The individual commits to the organization because he/she

perceives high costs of losing organizational membership, including economic costs (such as

pension accruals) and social costs (friendship ties with co-workers) that would be incurred.

The employee remains a member of the organization because "has to".

Normative Commitment: The individual commits to and remains with an organization

because of feelings of obligation. These feelings may derive from many sources. For

example, the organization may have invested resources in training an employee who then

feels a 'moral' obligation to put forth effort on the job and stay with the organization to 'repay

the debt.' It may also reflect an internalized norm, developed before the person joins the

organization through family or other socialization processes, that one should be loyal to one's

organization. The employee stays with the organization because he/she "ought to".

Types:

Intellectual Commitment

Emotional Commitment

Financial Commitment

Research on commitment outcomes examines whether the different components of

commitment have certain consequences. Employee retention, attendance, organizational

citizenship, and job performance are commitment outcomes that are widely studied. Reichers

(1985) says that “though the literature is fairly clear with respect to the outcomes of

commitment, the antecedents of commitment seem to be much more varied and

inconsistent…due to the several different ways in which commitment has been defined and

operational zed”. Various research studies take place examining the outcomes of employee

commitment.

Employee attendance is the most positively related outcome to affective commitment. Steers

(1997) found that employee commitment was highly related to the attendance of workers.

Gellatlly (1995) found that continuance commitment was related with the how often an

employee was absent. In a study examining a group of nurses Somers (1995) found those

nurses with lower levels of commitment had higher levels of absences. Blau and Boal (1987)

studied a group of insurance workers and found also found that those employees who had

higher levels of commitment had lower levels of absenteeism and turnover.

Retention of employee appears to be one of the most studied outcomes of organizational

commitment. This is due to the numerous studies which have found a correlation between

turnover and commitment (Porter et al, 1974; Meyer & Allen, 1997). Porter et al (1974)

found that employees with lower levels of commitment were more likely to leave then their

counterparts. Meyer and Allen (1997) argue that the different components of commitment

relate to different types of outcomes, therefore continuance commitment may or may not

relate to employee performance.

In regards to employee performance, the research is mixed on finding relationships between

employee performance and their levels of commitment. Meyer et. Al (1993) and Baugh &

Roberts, (1994) both find that committed employees had high expectations of their

performance and therefore performed better. However, Meyer & Allen (1997), continue to

describe reasons why performance and commitment may not be related.

Some of the factors include the seriousness with which supervisors value the appraisal

process, the value of job performance by an organization and the amount of employee control

over outcomes. Research has also found that those employees who are committed to their

profession also have higher levels of commitment to the organization. Baugh and Roberts

(1994) found that those employees who were committed to both their organization and their

profession had high levels of job performance.

Citizen behavior, or extra-role behavior, has also been studied in regards to organizational

commitment. Once again the research is inconclusive about the relationship between citizen

behavior and organizational commitment due to the contradicting findings. For example,

Meyer et al (1993) found a positive relationship between commitment and extra role

behavior, while Van Dyne & Ang, (1998) found no significance between the relationships.

Other studies have found that there was a negative relationship between commitment and

citizen behavior.

Objectives of the Study:

i. Broad/ General Objective: The general objective of the study will be to find out

that whether the employees of Prime Bank Limited are job satisfied or not.

Another objective will be to find out the organizational commitment level of the

employees. Then the comparison between these two will come.

ii. Specific Objectives: Through the specific objectives the general one can be found

out. These will include:

Are the employees satisfied with the salary?

Is the performance evaluation satisfactory??

Is the workplace environment (colleagues, infrastructural condition) up to the

mark?

Are the employees Job Involved?

Each of these objective will have separate questions in the questionnaire and through the

answers, the level of Job Satisfaction will be clear.

HYPOTHESIS

Null Hypothesis:

Job satisfaction aids to organizational commitment. I intend to prove that the employees who

are job satisfied are more organizationally committed.

Alternative Hypothesis:

Job Satisfaction does not aid to Organizational Commitment.

METHODOLOGY

The methodology of the study will include both primary and secondary data collection. The

primary data will be collected on the basis of random sampling. The sample size here is 100.

The samples will be collected from the Mohakhali branch, Gulshan branh and the Principal

Office at Motijheel. As stated earlier a questionnaire will be prepared for the primary data

collection. On the basis of that, the interviews will be conducted. On the basis of the answers,

a percentage will be there for each of the specific objectives. Depending on the nature of

those percentages (high or low), the commitment of the employees can and will be

determined. Thus, one of the above stated hypotheses will be proved.

The relied mostly on the primary data than the secondary one. In my opinion, as Bangladeshi

context is in the research, there are not many data available on this context. Moreover, the

direct response from the employees will reflect the actual level of organizational commitment

in them. As a result, The completed research almost fully on primary data. The prepared a

questionnaire consisting of fifteen questions. The took a sample size of 100. Among them 58

were male and the 42 were female. The chose respondents from Prime Bank Limited. They

were chosen from different hierarchical levels.

The questionnaire had 15 questions. They basically represent the specific objectives. Through

these, it can be found out that whether the employees are job satisfied or not. While

performing the surveys, I asked each respondent a question verbally and in a very informal

manner. The question was that if they had a better opportunity, would they go for that leaving

Prime Bank Limited or not. Form the answer of this question, the organizational commitment

of the employees is clear. After that I matched their satisfaction level with the commitment.

In this way, was able to find out whether job satisfaction aids to organizational commitment

or not.

The took some secondary data from different web sources. The primary objective of this was

to be clearer on the different business terms that used in the research. These sources helped to

be more concise on the topic. This also helped to find the right approach to the employees

who were my respondents.

ANALYSIS AND INPRETATION OF THE DATA

In questionnaire, I divided the questions according to the hypothesis. There were separate

questions for the specific objectives mentioned earlier. In total, there are six questions on

which the whole survey stands. These questions involve Job Involvement, Workplace

Environment and also Job Satisfaction issues. The analysis of the data is provided below.

Job Satisfaction Issues:

Remuneration:

Here, there are two dominant factors aiding to job satisfaction. The first factor is

compensation. People tend to be more satisfied with the job if they are compensated well.

And that in turns aids to organizational commitment. Opposite scenario is noticed if people

are dissatisfied with the compensation.

Question/Statement: You are satisfied with the salary you are drawing at present

Satisfaction with Salary

SA, 12

A, 55

N, 12

D, 17SD, 4

SAANDSD

4 respondents strongly disagreed

17 respondents disagreed

12 people were neutral about it

55 respondents agreed

12 people strongly agreed.

In case of this question, (55+12) = 67 out of 100 respondents were satisfied about the salary

that they are drawing right now. Also, (17+4) = 21 respondents were not satisfied with the

salary. As a result, it can be said that Job Satisfaction is high in this case, as remuneration is a

major part of Job Satisfaction.

To relate this response to organizational commitment, The asked them orally that if there is a

better offer provided, will they be leaving the organization or not. The could not insert this in

the questionnaire. The reason is that the answers may not be given correct. Oral questions are

more casual and got satisfactory response.

The relation with organizational commitment:

4 marked: Strongly Disagree

17 marked: Disagree

Among the 21 people that are dissatisfied with the salary that they are drawing right now, 15

of them responded that they will leave Prime Bank Limited if any better opportunity is

provided. This is a usual response. It is obvious that people will rush for better remuneration

if provided an opportunity.

55 marked: Agree

12 marked: Strongly Agree

Among the 67 people that are satisfied with the salary that they are drawing right now, 41 of

them responded that they will leave Prime Bank Limited if any better opportunity is

provided. That is more than 61% of the satisfied respondents. It seems that though they are

satisfied right now but they can leave the organization at any moment.

So it seems that compensation is a dominant factor to job satisfaction but not in case of

organizational commitment.

Performance Evaluation Process:

The second factor is performance evaluation. People tend to be more satisfied with the job if

they are satisfied with the process. And that in turns aids to organizational commitment.

Opposite scenario is noticed if people are dissatisfied with the process.

Question/Statement: There is biasness in case of performance evaluation

Biasness in Performance Evaluation

SA, 40

A, 15N, 21

D, 12SD, 12 SA

A

N

D

SD






In case of this question, (12+12) = 24 out of 100 respondents were satisfied about the

Performance Evaluation Process. Also, (15+40) = 55 respondents were not satisfied with that.

As a result, it can be said that Job Satisfaction is low in this case, as no one can be satisfied if

the evaluation is biased.



12 marked: Disagree

Among the 24 people that are satisfied with the performance evaluation process, 13 of them

responded that they will leave Prime Bank Limited if any better opportunity is provided. That

is 54.17% of the satisfied respondents. This is not a usual response. It seems that though they

are satisfied right now but they can leave the organization at any moment.

15 marked: Agree


Among the 55 people that are dissatisfied with the performance evaluation process, 42 of


provided. That is 76.36% of the dissatisfied respondents. The Organization Commitment

level is very much low here.

It seems that Performance Evaluation process is a dominant factor to job satisfaction. In case

of organizational commitment, it also does not influence positively.

Overall, about the job satisfaction issue, it has been observed that neither compensation nor

the PE process influences Organizational Commitment positively.

Workplace Environment Issues:

Colleagues:

In this case, there are also two dominant factors aiding to Workplace Environment. The first

factor is colleagues. People tend to be more satisfied with the job if the colleagues are helpful

and treat them well. And that in turns aids to organizational commitment. Opposite scenario

is noticed if people are dissatisfied with the surroundings.

Question/Statement: Your colleagues are helpful to you

Colleagues are Helpfull or Not

SA, 50A, 40

N, 8 D, 2SD, 0SAANDSD







surroundings and colleagues. Also, only 2 respondents were not satisfied with them. As a

result, it can be said that Job Satisfaction is high in this case as far as colleagues are

concerned.



2 marked: Disagree

It seems that employees at Prime Bank Limited are very satisfied with the surroundings that

they have. However, among the 2 people that are dissatisfied with their colleagues, both of


provided.

40 marked: Agree


Among the 90 people that are satisfied with their colleagues, 42 of them responded that they

will leave Prime Bank Limited if any better opportunity is provided. That is 46.66% of the

satisfied respondents. It seems that though they are satisfied right now but they can leave the

organization at any moment.

So it seems that the surroundings of an employee or the colleagues aid to Job Satisfaction but

it is not at all a dominant factor in case of organizational commitment.

Infrastructural Condition:

The second factor is infrastructural condition. People tend to be more satisfied with the job if

they are satisfied with the infrastructure of the organization. That also includes resources

available when needed. And that in turns aids to organizational commitment. Opposite

scenario is noticed if people are dissatisfied with it.

Question/Statement: You are satisfied with infrastructural condition of the organization

Satisfied w ith the Infrastructure or Not

SA, 20

A, 45

N, 19

D, 12 SD, 4SAANDSD







infrastructure and resources available. Also, only (4+12) = 16 respondents were not satisfied

with them. It seems that employees are satisfied with the infrastructural condition of the bank.

As a result, it can be said that Job Satisfaction is high in this case.



12 marked: Disagree

It seems that employees at Prime Bank Limited are very satisfied with the surroundings that

they have. However, among the 16 people that are dissatisfied with their colleagues, 5 of


provided. That implies though they are dissatisfied with the infrastructure, only 31.25% of

them are not organizationally committed. It also points out that satisfaction with

infrastructure may affect Job Satisfaction and Organizational Commitment negatively here.

45 marked: Agree


Among the 65 people that are satisfied with the infrastructure, 48 of them responded that they

will leave Prime Bank Limited if any better opportunity is provided. That is 73.84% of the

satisfied respondents. It seems that though they are satisfied right now but majority of them

may leave the organization at any moment.

So it seems that the surroundings of an employee in terms of infrastructure may aid to Job

Satisfaction but has very little to aid organizational commitment.

Overall, about the Workplace Environment issue, it has been observed that neither colleagues

nor the infrastructure influences Organizational Commitment positively.

Job Involvement Issues:

Willingness to Work Hard:

In this case, there are also two dominant factors aiding to Job Involvement. The first factor is

if the employees are trying to their best to perform well or not. This is the symptom of Job

satisfaction. If an employee is doing that then he loves his job. And that in turns aids to

organizational commitment. Opposite scenario is noticed if people are reluctant to work hard.

Question/Statement: You push yourself to the limit to perform well

Willingness to Work Hard

SA, 41

A, 35

N, 11D, 5 SD, 8

SAANDSD






In case of this question, (35+41) = 76 out of 100 respondents were willing to work really hard

to perform well. As stated earlier, this itself is a sign of Job Satisfaction. Also, 13 respondents

were not that much willing to give everything to his or her work. It is clear that these are the

people who are not that much satisfied with their jobs. As a result, it can be said that Job

Satisfaction is high in this case.



5 marked: Disagree

It seems that employees at Prime Bank Limited are very much willing to work hard.

However, among the 13 people that admitted that they do not want to work that hard, 9 of


provided. That brings 69.23% of the dissatisfied employees into scrutiny.

35 marked: Agree


Among the 76 people that are willing to work hard, 40 of them responded that they will leave

Prime Bank Limited if any better opportunity is provided. That is 52.63% of the satisfied

respondents. It seems that though they are satisfied right now but they can leave the

organization at any moment.

So it seems that Job Satisfaction is there but it is not at all a dominant factor in case of

organizational commitment.

Willing to do Something Extra:

The second factor is whether the employees are satisfied to this extend that they will work

beyond their assigned responsibilities or not. This is the symptom of Job satisfaction. If an

employee is doing that then he loves his job. And that in turns aids to organizational

commitment. Opposite scenario may be noticed if people are reluctant to work hard.

Question/Statement: You are willing to work beyond your assigned responsibilities

Willingness for Additional Work

SA, 28

A, 50

N, 4D, 10

SD, 8SA

A

N

D

SD






In case of this question, (50+28) = 78 out of 100 respondents were willing to work really hard

to perform well, even beyond their responsibilities. As stated earlier, this itself is a sign of

Job Satisfaction. Also, 18 respondents were not that much willing to give everything to his or

her work. It is clear that these are the people who are not that much satisfied with their jobs.

As a result, it can be said that Job Satisfaction is high in this case.



10 marked: Disagree

It seems that employees at Prime Bank Limited are very hardworking. However, among the

18 people that are dissatisfied with their jobs, 12 of them responded that they will leave

Prime Bank Limited if any better opportunity is provided. That implies they are much

dissatisfied with their jobs, 66.66% of them are not organizationally committed. It also points

out that satisfaction with infrastructure may affect Job Satisfaction and Organizational

Commitment positively here.

50 marked: Agree


Among the 78 people that are satisfied with the salary that they are drawing right now, 41 of


provided. That is 52.56% of the satisfied respondents. It seems that though they are satisfied

right now but majority of them may leave the organization at any moment.

So it seems that though these employees are job satisfied but their attitude has very little to

aid organizational commitment.

Overall, even about the Job Involvement issue, it has been observed that it does not influence

Organizational Commitment positively.

Secondary Data:

In my research did not use many secondary sources. The took some secondary data from

different web sources. The primary objective of this was to be clearer on the different

business terms that used in the research. These sources helped me to be more concise on the

topic. This also helped me to find the right approach to the employees who were respondents.

FINDINGS OF THE STUDY

Eventually the null hypothesis has been proven wrong. Theoretically, that should not have

been the case, but it is. There are some reasons behind it. These are elaborated below:

Bangladeshi Context:

Generally, Job Satisfaction is a part of Occupational Commitment. The employees who are

Job Satisfied, mostly they are occupationally committed. But, it has some link to

Organizational Commitment as well. But the result that got out of the research is totally out

of the world. Here, majority of the employees of Prime Bank Limited are Job Satisfied. But a

very low percentage of people are Organizationally Committed. The prime reason is that it is

Bangladesh. Here, traditionally, long term commitments have no value. Here people are

always in search for opportunity. No one is willing to make his or her career in less than three

organizations, let alone a single one.

Employer’s Practice:

The organizations have also some role to play in case of Organizational Commitment.

Organization must make the environment as such that the employees do not wish to change

their organization. Here, in most of the organizations, the employees are a matter of least

concern. If the employers value the employee, only then the employees will value the

organization.

The Concept Still Needs to Come:

In Bangladesh, there is no term as Organizational Commitment. People always run for

opportunities. They start looking for a new job the next day they join one. This is surely not

because they do not like the job, they want more. In such context, according to me, the

concept of Organizational Commitment still needs to be initiated, as it has not been yet.

SUGGESTION

The first step towards Organizational Commitment should come from the organization itself.

If the organization makes the working environment and the design jobs in a manner that the

employee chooses to stay, only then the term can come into use. Employees will always look

for better opportunities. They have their career to deal with. The organizations should also

think that why is that employee leaving? Why is the other company recruiting him? What is

in him or her that the other company wants? Can the organization afford to loose that? If that

is not the case, if the organizations think only about short term profitability, then

Organizational Commitment will never have its existence here.

CONCLUSION

The did not think that my hypothesis would be proven wrong. From the result, the compelled

to conclude that the concept of organizational commitment in our country is yet to build up.

The employees of Prime Bank Limited are enthusiastic, creative and they look for scopes.

That is why they search for newer employment. They are rather occupationally committed.

However, from the research it is clear that neither job satisfaction nor workplace environment

or job involvement aids to organizational commitment positively in Bangladeshi context.

At the end of the study, there were some questions that were important for conducting

research should be answered. The answers are given below with the questions:

In which way the employees of Prime Bank Limited are committed?

o Most of the employees of Prime Bank Limited are occupationally committed.

Does Job Satisfaction affect their Organizational Commitment?

o No it does not. Many of them are satisfied with their jobs but they will switch

if better opportunity is provided.

If yes, then in which way, positively or negatively?

o This cannot be qualified. Majority of the employees are not organizationally

committed. Job Satisfaction does not have anything to do with that.

What other factors affect the organizational commitment?

o In case of the employees of Prime Bank Limited, there are no such factors.

The concept of Organizational Commitment is not there.

If the commitment that the employees have is not for the best of the bank, what are

the possible ways to cope up with that?

o The bank should be proactive in this regard. This point is discussed in the

“Suggestions” section.

There were also some broad objectives and some specific objectives.

Broad/ General Objective:

The general objective of the study was to find out that whether the employees of Prime Bank

Limited are job satisfied or not. The majority of employees are satisfied with their jobs.

Another objective was to find out the organizational commitment level of the employees.

This level is very low among the employees.

Specific Objectives:

Are the employees satisfied with the salary?

o Majority of the employees are satisfied with the salary.

Is the performance evaluation satisfactory?

o Majority of the employees pointed out that the performance evaluation system

is not satisfactory. They have taken it for granted. Though they are not

satisfied with it but they are not willing to do anything about it.

Is the workplace environment (colleagues, infrastructural condition) up to the mark?

o Majority of the employees responded that the workplace environment is up to

the mark.

Are the employees Job Involved?

o Majority of the employees say that they are job involved.

REFERENCE

1. (n.d.). Organizational commitment. Retrieved August 21, 2010, from

http://www.businessdictionary.com/definition/organizational-

commitment.html

2. (n.d.). Job satisfaction. Retrieved August 21, 2010, from

http://www.answers.com/topic/job-satisfaction

3. (n.d.). Job involvement. Retrieved August 21, 2010, from

http://psychology.wikia.com/wiki/Job_involvement

4. (n.d.). Workplace environment. Retrieved August 21, 2010, from

http://www.businessperform.com/html/workplace_environment.html

BIBLOGRAPHY

There is no document that can be included in this part.

http://www.businessperform.com/html/workplace_environment.html

http://psychology.wikia.com/wiki/Job_involvement

http://www.answers.com/topic/job-satisfaction

http://www.businessdictionary.com/definition/organizational-commitment.html

http://www.businessdictionary.com/definition/organizational-commitment.html

APPENDIX:

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