119197705 markentile bank internship report

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Employee Job Satisfaction Level at

Employee Job Satisfaction at Mercantile Bank

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Internship Report on

Employee Job Satisfaction Level at Mercantile Bank Limited.Prepared For:

Professor M.A. Ghulam Dastagir Secretary & Professor Internship SupervisorBangladesh University

Prepared By:

Shajhan Shiraz ID# 200811119055Batch: 19thBBA

Date: October 5.2011

Bangladesh UniversityEmployee Job Satisfaction at Mercantile Bank 37


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Eng. Golam DustogirSenior Lecturer School of Business Bangladesh University

Subject: Submission of the final report on Employee Job Satisfaction Level at Mercantile Bank Limited Dear Sir, I like to express my gratitude to give me an opportunity to get oriented into the real job market for the implication of my theoretical knowledge into the practical experience. As a part of my BBA program thisinternship at Mercantile Bank Limited has given me an opportunity to get hands on experience in Banking Arena at Bangladesh perspective.

I enjoyed preparing the report though it was challenging to finish within the stipulated time. In preparing this report, I have tried my level best to furnish all the relevant information and tried to identify the scope of betterment for the employee job satisfaction of Mercantile Bank Limited. I am requesting to acknowledge the report and enable me to fulfill my internship program and oblige thereby.

Thank you Sincerely, Shajhan Shiraz ID# 200811119055


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Executive Summary

A significant portion of the Mercantile Bank Limiteds employees are young peopleand we know that Young people often have a fall back option that is mostly theirparents on which they can depend on to some extent and that plays a role in making them think it is safe to try for another job. Since they are opportunists innature, they tend to find the earliest chance to grab a promotion and move vertically upward through the hierarchy. Discriminations between employees and departments, the lack of coordination between departments have been a major deal breaker for the MBL employees. And for the finance people who have been working in these financial institutions have quite a number of options when it comes to switching jobs. Especially since the employees at Mercantile Bank Limited are paid less than the other competitors in the banking industry, they often consider leaving their jobs. This report looks into the different factors involving the employee dissatisfaction of Mercantile Bank Limited employees and looks to mitigate the issue to some extent.


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Table of ContentsTHE ORGANIZATION PART..........................................................7

1.0 NAME, LOCATION AND HISTORICAL BACKGROUND..................8

2.0 FOUNDERS..........................................................................9

3.0 MISSION, VISION AND OBJECTIVES......................................10

4.0 ORGANIZATIONAL STRUCTURE............................................13

5.0 THE COMPANYS MAJOR FUNCTIONS, DESCRIPTION OF ITS BUSINESS, AND DETAILED DESCRIPTION OF VARIOUS FUNCTIONAL DEPARTMENTS........................................................................14

6.0 THE COMPANYS COMPETITIVE CONDITIONS, INDUSTRY ANALYSIS, AND SWOT ANALYSIS:.............................................24

7.0 STRATEGIC, OPERATIONAL AND LEGAL ISSUES FACED BY MBL ..............................................................................................29

8.0 MBLS CURRENT STATE OF OPERATIONS AND FUTURE DIRECTIONS............................................................................31

THE PROJECT PART..................................................................36

1.0 INTRODUCTION..................................................................37


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2.0 OBJECTIVES OF THE STUDY.................................................39

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..............41

3.0 SIGNIFICANCE OF THE STUDY..............................................41

4.0 METHODOLOGY..................................................................56

5.0 HYPOTHESES.....................................................................60

6.0 FREQUENCY ANALYSIS........................................................68

7.0 CROSS TABULATION ANALYSIS............................................75

8.0 CORRELATION....................................................................90

9.0 REGRESSION ANALYSIS......................................................93

10.0 RECOMMENDATIONS.........................................................96

11.0 LIMITATIONS OF THE STUDY..............................................99

12.0 CONCLUSION..................................................................100


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The Organization Part


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1.0 Name, Location Background

and

Historical

Mercantile Bank Limited is a scheduled private commercial Bank established on May 20, 1999 under the Bank Company Act, 1991 and incorporated as a Public LimitedCompany under Companies Act, 1994. The Bank started commercial Banking operations from June 02, 1999. From then within a short time MBL has established itselfin a strong position in the economy of the country. It has earned significant reputation in the countrys Banking sector as Bank and created a wide image in the eye of the people. The dreams of creating MBL, which is A Bank of 21st Century hasbecome successful because of the initiative of some persons who are the sponsorsof MBL. There are 30 sponsors in Mercantile Bank Limited and all of them are highly regarded for their entrepreneurial competence. The Bank has launched a number of financial products and services since its inception. Among these, MonthlySavings Scheme, Family Maintenance Scheme, Double Benefit Deposit Scheme, Quarterly Benefit Deposit Scheme, 1.5 Times Benefit Deposit Scheme, Advance Benefit Deposit Scheme, Consumer Credit Scheme, Small Loan Scheme, Lease Finance Scheme, Overseas


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Employment Loan Scheme, Car Loan Scheme, Home Loan Scheme and SME Loan have received wide acceptance among the people.

1.1 Deposit Products1. Monthly Saving Scheme 2. Monthly Benefit Deposit Scheme 3. Double Benefit Deposit Scheme 4. Quarterly Benefit Deposit Scheme 5. Times Benefit Deposit Scheme6. Advance Benefit Deposit Scheme

1.2 Loan Products1. Consumer Credit Scheme 2. Small Loan Scheme 3. Lease Finance 4. Doctors

Credit Scheme 5. SME Loan Scheme 6. Personal Loan Scheme 7. Car Loan Scheme 8. HomeLoan Scheme 9. Overseas Employment Loan Scheme

2.0 FoundersMr. Abdul Jolil (M.P.) is a Bangladeshi politician. He is a former minister of Bangladesh Government and the member of Central Committee of Bangladesh Awami League and current general secretary of Awami League. He is founder Chairman of Mercantile Bank Limited. He expressed his satisfaction at the achievement of the bank during the year 2002 and advised the executives and officers to come forwardwith new banking products and innovative ideas. He is a current Member of Parliament and elected from Naogoan District. Employee Job Satisfaction at MercantileBank 37


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3.0 Mission, Vision and Objectives3.1 Mission To become the most caring bank To be focused for equitable growth based on diversified deployment of resources Nevertheless to remain healthy and gainfully profitable Bank.

3.2 Vision MBLs vision is to become the Bank of Choice by transforming the way itdoes business and developing a truly unique financial institution that deliverssuperior growth & financial performance and be the most Recognizable Brand in the financial services in Bangladesh. MBL dreams to become the bank of choice ofthe general public which includes both the consumer and the corporate clients. They want to build such an image that whenever people will think of a bank, theywill think of Mercantile Bank. 3.3 Objectives MBL is always ready to maintain the highest quality to services by upgrading banking technology prudence in management and by applying high standard of business ethics through its established commitment and heritage.

MBL is committed to ensure its contribution to national economy by increasing its profitability through professional and disciplined growth strategy for its customer and by creating corporate culture in international banking arena.


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The objective MBL is not only to earn profit but also to keep the social commitment and to ensure its co-operation to the person of all level, to the businessman, industrialist-specially who are engaged in establishing large-scale industryby consortium and the agro-based export oriented medium & small-scale industriesby self-inspiration.

MBL is always pre-occupied to encourage the inventors for purchasing its share by creating the opportunity of long-term investment and increasing the value of share through prosperity as developed day by day.

MBL is playing a vital role in Socio-economic development of Bangladesh by way of linkage with rest of the world by developing worldwide network in domestic andinternational operations.

3.4 Strategies Mercantile Bank Limited will be a world class organization in terms of service quality and establishing relationships that will help its customers to develop and grow successfully. MBL will be the market leader in the conceptof Excellence in Banking by providing accurate, reliable and timely services. T

hat is the reason it has created some values which support their strategies. Thevalues are given below. Shareholders - Create sustainable economic value for our shareholders by utilizing an honest and efficient business methodology. Community - Committed to serve the society through employment creation, support community projects and events and be a responsible corporate citizen.


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Customers Render state-of-the-art service to our customers, offering diversifiedproducts and aspiring to fulfill their banking needs to the best of our abilities. Employees Be reliant on the inherent merit of the employees and honor our relationship as a tribute to be a part of the renowned financial institution. Worktogether to celebrate and reward the unique background, viewpoints, no matter what the job is. Accountability As a bank, we are judged solely by the successfulexecution of our commitments, and we expect and embrace that form of judgment.We are accountable for providing the highest level of services along with meeting the strict requirements of regulatory standards and ethical business practices. Trust We value mutual trust, which encompasses transparent and candid communications among all parties.


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4.0 Organizational structure4.1 Corporate Hierarchy


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5.0 The companys major functions, description of its business, and detailed description of various functional departments5.1 Major FunctionsThe functions of commercial Banks are now wide and varied. However, the functions of Commercial Banks may broadly be classified under the following two categories1. Primary Functions 2. Secondary Functions

5.1.1 Primary Functions:

The primary functions of Mercantile Bank Limited are same as other Commercial Banks. These functions includesi. Accepting deposits; ii. Lending money; iii. Creating credit; iv. Creating medium of exchange.

5.1.2 Secondary Functions:Modern commercial Banks like MBL, besides performing the functions, cover a widerange of financial and on-financial services to meet the growing needs of the time. Some of these services are available only to the customers while others areavailable to the public in general. The subsidiary services provided by a modern banker may be classified into following three groupsi. Agency Services ii. Generally Utility Services Employee Job Satisfaction at Mercantile Bank 37


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iii. Foreign Exchange Business

5.2 Divisions of Mercantile Bank Limited:If the jobs are not organized considering their interrelationship and are not allocated in a particular department it would be very difficult to control the system effectively. If the departmentalization is not fitted for the particular works there would be haphazard situation and the performance of a particular department would not be measured. Mercantile Bank Limited has nine divisions which areas follows:

5.2.1 Credit Risk Management:


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The primary objective of this division is to evaluate the credit worthiness anddebt payment capability of present loan customers and loan applicants. The respective branches send all loans and advances proposals from the prospective borrowers to the Head office Credit Risk Management (HOCRM) for an approval. If this department finds the loan proposal attractive, it either approves it or sends itfor board approval. It is also responsible for keeping track of the credit portfolio by obtaining regular information from the branches. It sets prices for credits and ensures affecting it at the branches. This department also monitors thevarious loan accounts of the branches and prepares various statements for Bangladesh Bank. The Credit Risk Management Department is assisted by the Credit Administration Department, which is mainly concerned with the post-approval functionsof the division. The aspects that are critically tracked and monitored by Credit Admin are Credit expiry Past dues Excess over limit Document deficiency Reping Credit Administration is involved in basically 2 broad functions: Loan Monitoring Documentation

Loan Monitoring: The important aspects of this part are: Follow approval terms Proper loan disbursement Monitor interest payments


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Monitor principal repayment Balance with general ledger

Documentation: The important functions of this part are: Look at sanction tFill up loan documentation checklist Ensure Proper loan documentation Obtain client sign off Filing with the Registered Joint Stock Corporation ( RJSC) Registered mortgage deed execution

5.2.2 Consumer Banking Division:The mission of Consumer Banking is to serve individual customer throughout everystage of their life stage. The consumer banking activities are being carried out through the 50 branches of Mercantile Bank Limited operating countrywide. Among these branches 19 branches are located in Dhaka. The broad functions of this division are: Settlement of accounts Building strong relationship with individualcustomers Identifying individual needs of the customers and thus helping designproducts that will meet their needs. Providing locker services Providing ancillary services

5.2.3 Human Resources Division:


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The employees are Mercantile Banks most valuable resource. Having competent and professional employees is becoming increasingly important in todays competitive world, and MBL has a significant competitive advantage in this respect. Also the new employees are recruited with sound academic background and given proper training after recruitment to groom up for their responsibilities. The broad functions of this division are: Staffing: An important task of the HR division is to prepare all formalities regarding appointment and joining of the successful candidates. Training: HR department emphasizes on training and development in order tominimize the knowledge and skill gaps and enhance business awareness among the bank employees. To this effect, this department arranges various training programs for the bank employees both at the Banks own Training Institute at Purana Paltan and at various outside locations.

5.2.4 Audit and Compliance Division:The main function of this division is to provide legal assistance to the branches and to ensure strict adherence of rules and policies by all concerned officials of the bank through routine and surprise inspection and audit. The functions of this division are as follows: Implement rescheduling process of stuck-up loanto the branches for obtaining

repayment schedule through strong persuasion and serve final notice etc. as thecondition required. Monitor the individual cases with respect to their securities, value of securities, and

finally review of possibility of recovery of banks stuck-up classified loan. Investigate suspicious or irregular matters being directed by higher management.

Also conduct such inquiry being requested by affected branch-in-charges. Time totime follow-up of stuck-up advances of branches and keep the branches

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Inspect all branches operations at least once in a year. Carry out surprise auditas felt necessary.

5.2.5 Finance and Accounts Division:Finance and Accounts division is a very important division for any Bank, becauseits task is to -- Maintain daily liquidity positions, treasury bills, call money, debentures, placement

of funds etc. Monthly-accrued interest calculation of all interests bearing accounts, inter-branch

calculation for Head Office, amortization of all fixed and other assets. Prepartion of statement of accounts and profit and loss account for the bank. Weekly deposit and advance analysis of the bank. Cost of fund analysis. Maintenance of accounts, preparation of annual report of the bank, maintenance of

provident fund accounts, maintenance of income and expenditure posting, maintenance of salaries and wages of the employees etc. Fulfilling reporting requirements of Bangladesh Bank.

5.2.6 Information Technology Division:With the implementation of Information Technology, the IT division has become a

very important contributor to the banks overall efficiency and profitability. Atpresent, the IT department serves the following functions: Development of softwares for banks operation according to need, their maintenance and purchase of newsoftwares. Maintenance of computer hardwares and upgrading the PCs whenever required. Training of the staff so that they can perform properly in the automated environment. Employee Job Satisfaction at Mercantile Bank 37


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Preparing training materials. Troubleshooting with the new software.

5.2.7 Administration:This department looks after the administrative matters and procurement and supply of all tangible goods to the branches. Some of the main functions of this division are described as follows: Make arrangement for branch opening such as making lease agreement, internal decorations etc. Print all security papers and bankstationery. Purchase necessary stationery items. Distribute this stationery to the branches. Purchase all sorts of furniture and fixtures for the branches. Install and maintain different facilities for the branches etc. Issuance of power ofattorney to the officers of the branches. Issuance of different circulars of Bangladesh Bank and other banks. General correspondence with Bangladesh Bank and other banks. Advertise in the different media about tender notice, general meetings and public interests.


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5.3 Products and Services5.3.1 Small & Medium Enterprise (SME)Over the years, continuous time and effort has been put in to understand the target market and their needs. The SME unit has worked on risk management system tocover the typical needs that the clients might have and has come up with flexible payment patterns which will help all the clients in the long run.

5.3.2 Corporate BankingMercantile Bank Limiteds Corporate Banking team provides banking services as wellas financial support to local large and medium organization. Corporate Bankingis the most conventional mode of business in low risk sectors. Services that corporate team provides are:


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5.3.3 Personal BankingMBL exerts special effort to develop and introduce new products and services through extensive market research to meet every facet of modern business. Differentproducts of Personal Banking are as follows:


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5.3.4 Depository Product:

5.3.5 New Product and servicesThe bank has its concentration for new product and services development for satisfying its customer and increasing its customer base. The bank firmly believes that technology based product and services will play significant role in the performance of the bank as people are getting more conscious about their service quality. There are some new products and services that Mutual Trust Bank Limited has lately introduced. These are:


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6.0 The companys Competitive Conditions, Industry Analysis, and SWOT Analysis:6.1.1 World Economy- An over viewIn the era of trade liberalization, globalization has presented new challenges as well as greater opportunities for countries all over the world. Economic boundaries of nations are being abolished and the world is gradually becoming one global village. E-commerce is becoming the predominant mode of transactions. Revolutionary changes in the fields of cost control, retail channels, range and delivery of services, accessibility and reach are being witnessed.

6.1.2 Bangladesh Economy-An over viewThe macro economic development during financial year 2008-2009 was marked by a healthy GDP growth and moderate inflation. For the second year running bumper rice harvest maintained growth at above 6% and GDP growth during the FY 2008 was at5.59%. On the other hand, the growth performance in industry was slow with manufacturing growth 7.4% being one of the lowest rates in the recent years. Severalunfavorable factors contributed to this situation which included disturbance inthe supply of natural gas which in the turn affected the power supply and production activities. Other than that import of raw materials and private sector credit also affected the manufacturing growth. Furthermore, labor disputes during the second quarter of the year badly affected the operation of Chittagong port. In the services sector, growth in transportation, storage and communication contributed to about 13% to the total GDP but growth in trade sector was slow due tolower import growth. During the year some positive initiative were taken in thebanking sector with improvements in the legal and regulatory environment to impr

ove loan recovery but unfortunately the high quantum of nonperforming assets andunder capitalization continued to plague the entire


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banking sector thus causing a major threat to the macroeconomic stability. The size of classified loans increased significantly which contributed to lower profitability of the banks.

6.1.3 Industry AnalysisWe know that this is a monopolistic competitive market where a companys main focus is to have service differentiation. Banks are competing with each other on thebasis of service differentiation. Bangladesh economy has been experiencing a rapid growth since the 90s. Urbanization and lifestyle changes along with the economic development have created a demand for banking products and services to support consumer investments in a profitable manner. To meet the overgrowing demandof consumers the number of commercial banks in Bangladesh is increasing day byday. The total number of banks operating in Bangladesh is 49. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Bangladesh Bank (BB) regulates and supervises the activities of all banks.

6.1.3.1 Nationalized Commercial Banks (NCBs)1. Sonali Bank 2. Janata Bank 3. Agrani Bank 4. Rupali Bank

6.1.3.2 Private Commercial Banks (PCBs)1. Pubali Bank 2. Uttara Bank 3. National Bank Ltd. 4. The City Bank Ltd. 5. United Commercial Bank Ltd. 6. Arab Bangladesh Bank Ltd. 7. IFIC Bank Ltd. 15. Al-A

rafah Islami Bank Ltd. 16. Social Investment Bank Ltd. 17. Dutch-Bangla Bank Ltd. 18. Mercantile Bank Ltd. 19. Standard Bank Ltd. 20. One Bank Ltd. 21. EXIM Bank 37



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8. Islami bank Bangladesh Ltd. 9. Al Baraka Bank Bangladesh Ltd. 10. Eastern Bank Ltd. 11. & Commerce Bank Bank Ltd.) 12. Prime Bank Ltd. 13. South East Bank Ltd. 14. Dhaka Bank Ltd.

22. Bangladesh Commerce Bank Ltd. 23. Mutual Trust Bank Limited 24. First Security Bank Ltd.

National Credit 25. The Premier Bank Ltd. Ltd. (NCC

26. Bank Asia Ltd. 27. The Trust Bank Ltd. 28. Shah Jalal Bank Limited (Based onIslamic Shariah)

6.1.3.3 Foreign Banks1. American Express Bank 2. Standard Chartered Grindlays Bank 3. Habib Bank Ltd.4. State Bank Of India 5. Credit Agricole Indosuez (The Bank) 6. National Bankof Pakistan 7. Muslim Commercial Bank Ltd. 8. City Bank NA 9. Hanvit Bank Ltd. 10. HSBC Ltd. 11. Shamil Islami Bank Of Bahrain EC 12. Standard Chartered Bank

6.1.3.4 Development Banks1. Bangladesh Krishi Bank 2. RajshahiKrishiUnnayan Bank 4. Bangladesh ShilpaRinSangstha 5. Bank of Small Industries & Commerce Bangladesh Ltd. 3. Bangladesh Shilpa Bank

6.1.3.5 Other Banks

1. Ansar VDP Unnayan Bank 2. Bangladesh Samabai Bank Ltd. (BSBL) 3. Grameen Bank4. Karmasansthan Bank 37



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The banking industry is quite saturated and competitive. Some of the major players in this industry are the Hong Kong and Shanghai Banking Corporation (HSBC), Standard Chartered Bank (SCB), City bank, Islami Bank Limited, BRAC Bank, Prime Bank Limited, Mercantile Bank Limited and Dutch Bangla Bank Limited. Over the years these banks are significantly holding the market share and continuously exerting pressure over one another. This highly competitive and profitable industry therefore inspired others to come forward and thus made this industry even more competitive and tougher. Mercantile Bank Limiteds direct competitors are the:

6.2 SWOT Analysis of MBLSWOT analysis is used to measure views of a single issue from different patterns. From historical data and practical observation, I found the following Strengthopportunity, weakness and threat under SWOT analysis of Mercantile Bank Limited:

6.2.1 Strengths

Not engaged in unfair business practice. Well-known reputed bank in the market.37



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Concentrated market. Officers are highly educated and experienced. Deposit is larger than advance. Attractive credit and deposit schemes than competitive markets. Well-furnished and Air-conditioned Bank. Strictly complies of government banking rules, regulations and acts.

6.2.2 Weakness

Small market shares in Banking-business. Short time experience in the banking sector. Growth is slower than other competitive banks. Training programs to officers are not so effective and adequate. Lack of advance technology utilization inall aspects.

6.2.3 Opportunities

Can provide more attractive and deposit facilities and credit facilities. Take incentives to provide high quality service. Can increase the advertising of the Bank to highlight latest services of

MBL.

Can adopt high technology based inter-branch networking system.

6.2.4 Threats

The number competitors in banking sectors are increasing. Governments increasingrules and regulations are not so inspiring. Competitive performance is in highpositive flow. Competitors are using more advance technological system. Government tendency of imposing tax and VAT is becoming stricter. 37



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7.0 Strategic, Operational and Legal Issues faced by MBL7.1 Issues to be considered1. The current era of banking has become more uncertain and challenging. Traditional concepts have changed and innovative products and channels of delivery suchas: telephone and internet banking are gaining popularity which is resulting inthe reduced necessity for the brick and mortar branch banking system. Another trend that is apparent in the banking sector, is the shifting of focus from corporate banking to accommodate retail and SME banking with a view to minimize riskand diversify the portfolio. Another issue that attracts considerable attentionis the increase in operating costs due to improved service quality level which has become compulsory to meet the requirements of the customers. 2. However, apart from these changes, the major problem that faces Mercantile Bank Limited is the substantial increase in the inflation level worldwide which can be attributedas the primary reason for the growth of the financial sector. This is because, due to sharp changes in industrial inputs and food grains prices, the same volumeof imported resulted in higher bills without bringing in proportionate enhancement in real economic activity. Another issue to consider for Mercantile Bank isthe slowdown in industrial credit because of various socio-political changes.

7.2 Strategies to Address the Issues & Problems1. The approach that Mercantile Bank Limited should take in addressing the various issues and problems is through means of adaptability. But this could only bedone if the bank has a motivated pool of competent, talented and trained employees, who has the Employee Job Satisfaction at Mercantile Bank 37


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ability to foresee the changes and devise business directions accordingly. Therefore, investment in human resources should be of top priority. 2. In addition, the management of the bank has already recognized the elements that will pose risks in the near future in retaining the banks superior position. And accordingly have developed strategies and listed priorities in order to overcome these risks.


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8.0 MBLs Current State of Operations and Future Directions8.1 Current Operations of MBLThe incessant fall out of international credit market due to world economic meltdown resulting sluggish growth has put significant pressure on financial performance of banks and financial institutions worldwide. MBL has achieved continuousgrowth in almost all arenas of its business despite this economic crisis, facingintensified competition of the industry. The bank remained in strong financialstrong position with its continued focus on the vision of becoming countrys finest corporate citizen, providing excellent and need based customer service. The recent fiscal years have all contributed to the achievement of the financial sector of Bangladesh. This performance was praiseworthy considering the worldwide economic downturn. In this time, Bangladesh Bank has increased the capital adequacyrequirement of the banks from 9 percent to 10 percent of RWA (Risk Weighted Assets) and has also introduced general provision on Off-balance sheet items in aneffort to reduce inflation and strengthen lending facilities of Commercial banksfor better asset and liability management. These steps have affected both the banks and the borrowers. And due to the political situation in recent times, thelack of business confidence and cautionary monetary policy resulted in excess liquidity in the banking sector. The growth of deposits and lending activities hasalso slowed down from the level of last year. These incidents will result in areduce return on assets and equity for the sector. The recent trend of the customers to be more interest sensitive has led to the lowering of the spread for thebanks. Even with all these adverse conditions the


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Private Commercial Banks continued to perform better due to balanced diversification of its assets among the Retail, SME and Capital Market. The recent years have been all been fruitful for Mercantile Bank Limited despite of shocks in the economy. The bank was able to make a record operating profit of Tk 1.66 billion in 2010, an increase of 29.73 percent from the previous year. Net profit attributable to shareholders reached Tk. 802.52 million. The return on average equity remained 18.80 percent and earnings per share (EPS) stood at Tk. 37.41 during 2010. The non-performing loan ratio is 2.54 percent. Capital adequacy ratio was at 10.48 percent, which is above the required return of 10 percent. Cost income ratio declined to 32 percent from 34 percent of previous year. This strong performance of the bank can be attributed to its continuous growth of loans and depositsand also to the remarkable performance of the merchant banking division. In thistime, deposits of the bank rose to 58.30 billion from 49.54 billion in 2010. Indicating a growth of 17.68 percent. Loans and advances stood at 48.30 billion which was 41.99 at the end of year 2009. Percent during the year. The bank transacted foreign trade to the amount of 137.84 billion indicating a growth of 26 percent during the current year. (BDT in million) Particulars Authorized Capital Paid-up Capital Assets Investments Deposits Advances Import Export 2006 1200.00 319.77 16383.17 882.47 15150.42 8896.19 15112.50 11377.30 2007 1200.00 639.53 18324.73 1382.29 16285.19 10775.95 20380.80 15250.60 2008 1200.00 799.41 24098.09 2107.26 22385.19 17669.29 28325.20 17411.00 2009 1200.00 999.27 28890.48 3517.68 25727.43 21857.05 33271.90 24108.57 2010 1200.00 1199.12 37159.65 5407.90 33317.6426842.14 N/A N/A


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Profit after tax Earning Per Share Price earning ratio No. of Branches No. of Employees

256.74 70.59 15 663

215.91 57.88 20 879

312.58 31.28 17 times 25 945

386.83 32.26 9 times 28 1,115

494.22 41.22 10 times 31 1315

8.2 Future DirectionsIt is expected that in the years to come, increased remittance flow, good exportperformance, steady industrial growth, accelerated performance in small and medium enterprise and consumer loan, implementation of efficient risk management and corporate governance are the events that will have positive impact on the performance of the banking sector. Mercantile bank is well positioned to meet the challenges of the future as it is expected to continue to harness the potential ofretail, credit card, SME (Small & Medium Enterprise) and remittance market. Thebank will also focus on its large existing customer base to generate more business from them. However, the continued pressure on interest margins, fees, exchange earnings and increased provision requirement for Retail, Credit Card, SME, Of

f-balance sheet items and implementation of BASEL II by 2009 will pose a challenge to the financial sector in the near future. Keeping all these in mind, Mercantile Bank is committed to adhere to good governance and practices and sound riskmanagement policies and strict credit evaluation procedure.

8.3 Employees at Mercantile Bank


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Employee satisfaction is the terminology used to describe whether employees arehappy and contented and fulfilling their desires and needs at work. Many measures purport that employee satisfaction is a factor in employee motivation, employee goal achievement, and positive employee morale in the workplace. Employee satisfaction, while generally a positive in an organization, can also be a downer ifmediocre employees stay because they are satisfied with your work environment.Factors contributing to employee satisfaction include treating employees with respect, providing regular employee recognition, empowering employees, offering above industryaverage benefits and compensation, providing employee perks and company activities, and positive management within a success framework of goals, measurements, and expectations. Employee satisfaction is often measured by anonymous employee satisfaction surveys administered periodically that gauge employee satisfaction in areas such as:

management, understanding of mission and vision, empowerment, teamwork, communication, and Co-worker interaction.

MBL believes that employee satisfaction drives the bank work better and therefore the bank tries to provide every facility it can to the employees. HR policieslaid emphasis on the employee benefits as the bank thinks them as valuable assets and the bank intends to make them more valuable providing them sufficient pecuniary benefits, nurturing their knowledge as well. Good work environment is a very important factor for the employees and MBL does 37



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offer a hygenic work environment. Better career growth has been ensured so thatthe employees can lead a standard life. Attractive compensation bonus, yearly and festival bonuses, training faclity, retirement facility, providend fund facility, gratuity fund, leave fare assistance, disability benefits, health care benefits by permanent doctors and variety of loan facilities at a lower interest rate- these benefits are always available for the employees. Costs incurred for nursing the employees in the year 2010 and 2009 are as follows:

Employee benefitsBasic Salary (BDT in million) Festivals and incentive bonus (BDT in million) Allowances (BDT in million) Training expenses (BDT in million)

Year 2010 Year 2009351.43 218.94 243.27 9.09 255.66 165.96 196.42 7.00

Growth37.45% 31.92% 23.85% 29.85%


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The Project Part


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1.0 IntroductionEmployee satisfaction surveys provide the information needed to improve levels of productivity, job satisfaction, and loyalty. There is a direct link between employee satisfaction and financial results. In addition to the intrinsic desirability of having employees at the workplace who are satisfied, administrators havealso been concerned about the job involvement of employees which enhances the goal commitment and reduces the turnover of employees. Employees with higher jobsatisfaction believe that the organization will be satisfying in the long run, care about the quality of their work, are more committed to the organization, have higher retention rates, and are more productive. Job satisfaction, which has been studied extensively, is a function of several important variables - especially the characteristics of the job itself (Hackman and Oldham, 1975), and the organizational climate (Litwin and Stringer, 1968). Job characteristics have been shown in many studies to influence the job satisfaction of employees (see for instance, the extensive review by Rabinowitz and Hall, 1977). Organizations can identify the root causes of job issues and create solutions for improvements with an accurate perspective of employee views. There is a need to discover what motivates people, what drives loyalty, and what genuinely makes and keeps your employees happy. Satisfaction levels will increase when employees know that their issues are being addressed.

This research has been undertaken with objective of: Finding the areas of employee satisfaction or in other words what are the factors that employees deem important to him/her.


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Analyzing and identifying the key factors that will achieve employee satisfaction to optimum levels.

1.1 Purpose of the ResearchMercantile Bank Limited is operating in such a market where they have high competition as it has become a monopolistic competitive market. MBL is expanding itsbusiness and because of this reason they need employees especially when they open a new branch. Thats the reason Mercantile Bank Limited is popular among the jobseekers but there are plenty of MBL employees who are not satisfied with theirjob. The purpose of this research is to identify the specific reasons why the MBL employees are dissatisfied with their job. The business reason for this research is that I can provide the information to top level management so that they can reduce the employee job dissatisfaction level.

1.2 Research QuestionWhat are the reasons behind the job dissatisfaction of MBL employees? Does it have any real impact on the banks performance? In the report I have tried to find out answers to the following questions: 1. What is the importance of employee satisfaction? 2. What are the factors that influence the employee satisfaction? 3.Reasons behind the job dissatisfaction of MBL employees? 4. How can the top level management minimize the job dissatisfaction level? 5. What are the roles and responsibilities of a branch manager in order to minimize the dissatisfaction level?


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2.0 Objectives of the studyI tried to finish this specific project based on a survey among the employees ofMercantile

Bank Limited. Along with that, to fulfill the requirement of this course (BUS 498) in arealistic and practical way, what I guess it will be helpful for me in future.

2.1 Broad objectiveTo find out the reasons behind the job dissatisfaction among the employees of MBL. The general purpose of this study is to determine the influential factors making the MBL employees dissatisfied with their job and linking these factors with the possible problems that MBL can face in future. This broad objective is to find out the reason why MBL employees are dissatisfied even though this is a lucrative work place for the job seekers.

2.2 Specific objective To present an overview and brief introduction of Mercantile Bank Limited. To find out what may occur if employees are dissatisfied. The possible ways to reducetheir dissatisfaction level.

I decided to pursue my research goal through a questionnaire based survey conducted on the employee of Mercantile Bank Limited. My targeted respondents were theemployees of MBL who have served MBL for at least one year. The questionnaires

were designed as the apparatus with which I could shape this project. They weredesigned on the basis of Relevance, Accuracy and Consistency. The questionnaireswere Relevant in the sense that only the most important questions were entered, Accurate in the sense that the questions were designed to gather accurate and errorfree information from the respondents and finally Consistent in the sense that, some questions were added simply to verify the consistence in the response patterns of the respondents and thus verifying whether they actually understood the topic. Employee Job Satisfaction at Mercantile Bank 37


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2.3 Scope of the StudySince the most important factor for any service sector is to retain the trainedand experienced employees and hence increase productivity. If majority of the employees are dissatisfied then they will eventually quit the company in future and this is a big threat for a company as they are the people who provide the services and earns profit for the company. This report looks to find out the dissatisfaction level of the employees of MBL and the factors on which the job dissatisfaction level depends, which affects the revenue of the bank. The scope is that,this report may give ideas to the management, so that they can take decisions regarding modifying the strategies of providing incentives to the employees to reduce the current job dissatisfaction level.

2.4 Types of InformationThe survey gathered information about employee satisfaction level in these key areas:


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3.0 Significance of the StudyThe purpose of conducting this research is to find out the employee satisfactionlevel and the scope of improvement in order to achieve more productivity. Thisstudy will help MBL to gain more knowledge about the satisfaction level of the employees and will help them to redefine their strategies to increase productivity. It will also assist in developing new ways to keep the employees motivated and reduce cost due to arranging training and workshops. We will be able to get abrief overview of the employee satisfaction level in Financial Sectors in Bangladesh especially in MBL.

3.1 Literature Review 3.1.1 Job Satisfaction and DissatisfactionHezbergs two factor theory of job satisfactionHezbergs two factor theory of job satisfaction (Hygiene Theory): Hezbergs two factor theory attempts to explain satisfaction and motivation in the workplace. According his theory, 37



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satisfaction driven by motivation and dissatisfaction is driven hygiene factors.Motivating factors are considered to be intrinsic to the job, or the work carried out. Motivating factors are factors those make people want to perform, and achieve. Motivating factors provide people with satisfaction, such as achievements, recognition, promotion opportunities etc. Hygiene factors include aspects of the working environment such as pay, company policies, and other working conditions. According to Hezbergs, adequate fulfillment of Hygiene factor influence employees to be Not dissatisfied and inadequate hygiene fulfillment lead to dissatisfaction. What causes job satisfaction: Studies have shown that, job satisfaction isstrongly correlated with the work itself. Enjoying the work itself leads to highest level of job satisfaction. Other job satisfaction facts include, pay, coworkers, opportunity for advancement etc. According to this theory, personality playsa very important role. People with positive personality are generally more satisfied. According to research, money motivates and satisfies employees only up toa certain level. After that level, money cannot satisfy an employee.

Job Dissatisfaction and Retention RateIf the employees are satisfied then they are not going to switch the job howeverif they are dissatisfied with their job then in near future they will switch toanother organization and this will lead to low retention rate for the company,in this case the company is Mercantile Bank Limited. As we know that trained employees are the valuable resources for a company, if they start switching the jobthen it can be possible that the company will be collapsed as they are in the service industry and the service providers meaning the employees are leaving the

company one by one because of the job dissatisfaction. The more employees will switch the job the more retention rate will be going down for Mercantile Bank Limited.

Factors Contributing To Retention


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The literature clearly indicated that there are six keys to retaining personnel.They are recruiting, communications, training, job satisfaction, pay, and benefits. There is a direct link between job dissatisfaction and retention. The otherfactors also play important role in determining the workplace environment and retention.

RecruitingIt is evident that the effort to retain the best personnel begins with recruiting. Attracting potential candidates and retaining the performers are not two different things, but is the same thing. Both of these require creating and maintaining a positive reputation, internally as well as externally. By representing theorganization realistically, a department will attract those who will be contentworking within the culture (Marx, 1995). Denton (1992, p.47) follows this up bystating that, The better the match between recruits and the organization the more likely you are to retain them. Lynn (1997) believes that you must take time during the hiring process to make wise decisions. The employer must be open and truthful about the working conditions, responsibilities, opportunities and other details to reduce the chances of making hiring mistakes. Taylor and Cosenza (1997)emphasized this thought by noting that it is imperative that companies give prospective employees a true picture of the organization, if they hope to match thepersonality type with the climate and culture of the organization so that in future they do not feel cheated and leaves the job.

Communications

Taylor and Consenza (1997) indicate that it is important to communicate the values of the organization to its employees in order to increase their level of consent, participation, and motivation. The vision of the organization must be sharedwith the employee as well as the importance the employees play in helping fulfill it. Lack of communication may result in gaps between managements perceptions of quality employment and the employees desired and


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perceived quality of employment (Taylor &Consenza, 1997). There must be a commonpurpose and trust among employees. People want to feel as if they are a vital piece of something larger (Carney, 1998). As Denton (1992) points out, managers must make sure employees know what they should do and why it is important. (Employee Retention, 1999) In the same article (Employee Retention, 1999) Lynn stated that communications must be a two way street to be effective. Employers must listen to what employees have to say. An atmosphere needs to be created in which employees feel comfortable making suggestions and trying our new ideas. The literature revealed that communication must begin early in the employer/employee relationship. Organizational values and culture must be made clear to all employees and their importance within the organization must be continually emphasized.

TrainingIt is important that the employee feels like a valued member of the organizationwhich will motivate him to take part actively. And in such cases training helpsunderscore this message. Training personnel is a way to show that he/she is respected and have scopes to grow. The department is making an investment in the employee by offering training (Marx, 1995). Good training can de-emphasize salaries and benefits, in part by building a positive work environment and by giving employees advancement opportunities (Lynn, 1997). Lynn also states that training helps strengthen employee loyalty. (Employee Retention, 1999) Training emphasizesto the employee that they are valued and respected and this turn into increasedloyalty.

Job SatisfactionWhile an organization must be competitive in terms of compensation and benefits,it is the relationship with the supervisor that is often a crucial factor in determining whether a person


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stays or goes (Mendonsa, 1998). Employees want more interaction with management,more self-satisfaction on the job, more responsibility and more control over decisions affecting them. They want their work to make a difference and want to bepart of something that matters (Taylor, 1997). Departments should encourage innovation by soliciting the advice and input of their staff members, followed by responses to ideas, complaints or questions (Taylor, 1997). It is difficult to keep people on the job if they have no say in how to do it (Spragins, 1992). Promoting from within the department shows that there is truly room for advancement and growth within the department. Employee involvement, recognition, importance of work, and career advancement opportunities are all important, when dealing with employee satisfaction and retention.

Pay and BenefitsIn general people tend to think that money and benefits are the main reasons people leave their jobs, but this is not always the case. While compensation and benefits may be an important factor in the final decision-making process, there are other important factors that cause people to look for job. Although traditional benefits such as vacation and health are still important, todays workers are also looking for more non-traditional benefits. Benefits such as flexible work hours, availability of childcare, tuition assistance programs and other benefits now top the list. The literature clearly indicates while still factors, money andbenefits are not as important as job satisfaction in terms of employee retention.

3.1.2 Importance of Employee SatisfactionImportance of employee satisfaction for organization Increase productivity.


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Increase customer satisfaction Reduce turnover, recruiting, and training costs. Enhance customer satisfaction and loyalty. Improve teamwork. Higher quality products and/or services.

Importance of employee satisfaction for employee Employee will care about the quality of their work. They will create and deliversuperior value to the customer. They will be more committed to the organization. Their works will be more productive.

3.1.3 Factors influences to employee satisfactionOrganization development factors Brand of organization in business field and comparison with leading competitor. Missions and Vision of organization. Potential development of organization.

Policies of compensation and benefits factors Wage and salary Benefits Rewards and penalties

Promotions and career development factors Opportunities for promotion. Training program participated or will do. 37



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Capacity of career development

Work task factors Quantity of task Difficult level of task

Relationship with supervisor factors Level of coaching Level of assignment for employee Treatment to employee

Working conditions and environment factors Tools and equipment working methods Working environment

Cooperation culture factors Relationship with coworkers Level of sharing

Competencies, Personalities and Expectations of employee factors Employees personality. Employees expectations from job.

3.1.4 Reasons behind the job dissatisfaction among the employees of Mercantile Bank LimitedOrganization without a shared mission and goals to achieve


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If a company doesnt share its mission, vision and goals with its employees at that time employees will not be feeling that they are the part of this team. Teamwork will not be up to the mark at that point and company will be facing coordination problem because all employees will not work in the same direction. Because of this lack of belongingness employees will be dissatisfied. It is very important that whatever the employees will do should lead to the mission or goals that acompany is willing to achieve. For this reason the mission, vision and goals should be shared with the employees. In my internship period I have talked with the employees of MBL and I was surprised to know that no one knows their mission,vision and goals. In some cases they checked it in front of me and that was thefirst time in their life that they went through these statements. According to them, its not really necessary to know these statements because they are the smallplayers in a big game. Lack of sense of belongingness exists among them and it proves that they are dissatisfied with their job.

Rewards do not match expectationsWe all know that different people have different needs. It will be wrong if theorganization start thinking that every employee wants higher salary. There are some employees who prefer to have promotion. In the Mercantile Bank Limited employees are getting less salary compare to their workload. Most of them are dissatisfied because of this reason. However, there is one employee, working in the cash department in my branch where I have done my internship, who is serving MBL for last three years. A few months back she has got an increment of BDT 5000, butshe was expecting a promotion also which she hasnt got and because of this reason

she was very upset for a few days. This is also a case of job dissatisfaction.

Unfair rewards and performance appraisal system


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Favoritism exists in Mercantile Bank Limited. A few days back 18 new employees were joined in MBL family. After talking with one of them I came to know that onthe basis of favoritism or nepotism most of the employees were selected and thisis a trend which they follow form the very beginning. Her uncle is in the top level position in the HR department and in the interview board she was asked: Howis your father and others in the family? She had no prior experience and she hascompleted her honors from Jagannath University in second class but she is enjoying BDT 21,000 salary per month as an entry level post; interestingly her major was in political science. On the other hand an officer, Dhaka University graduates majoring in finance, who is serving MBL for last two and half year is gettingonly BDT 24,500. Though he is very productive and smart his salary is very poorbecause he doesnt have any uncle like her. This officer is also very dissatisfiedbecause of this unfairness. We know that if an employee realizes that the performance appraisal system is unfair, he will not put in his maximum effort. He perceives that his effort will not provide the promotion, salary increase, reward,career advancement and personal growth.

Employee conflictA significant portion of an employees daily life is spent at the office. They need to communicate with the other employees and customers. If employers practice discrimination and favoritism at the workplace, employee conflict is likely to happen. This will further lower the staff efficiency and productivity. In MBL, theassistant officer cannot tolerate the front desk officer because sometimes he has to do some of her office works along with his work which is an extra hassle,

according to him. Even some of the higher officer cannot tolerate her supervisorbecause the supervisor gives her a lot of works.

Lack of reinforcementEmployee Job Satisfaction at Mercantile Bank 37


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An immediate praise for a job well done is motivating. If an employee gets feedback on how well he has done his job, he will do better. A superior can acknowledge an employee s performance by personally congratulating him, offering an incentive or celebrating the success, even in a small way. In my twelve week internship period in Mercantile Bank LimitedI havent seen this happening for single time.In the HR courses we have learned that without reinforcement an employee can

tmeasure his performance and is uncertain of his progress toward the company s objective and even his own goals.

Inadequate tools, insufficient resources and non-supportive working conditionsHaving a supportive, safe and clean working condition with adequate tools makesit comfortable to work and provide employee satisfaction. He is able to facilitate a good job in a situation where he can work with ease and perform at his highest level. A supportive supervisor and a cooperative atmosphere allow him to putin the efforts. Giving coaching, training and development programs will educate, encourage and motivate him to perform better. In MBL, it is seen that there shortage of some very important tools, i.e. red pens, staplers, calculators and punching machines. Some of them have written their names on these tools however because of the shortage employees have to share these with each other. Sometime they do some serious jokes about this. Once my immediate boss was annoyed on another employee as he took his red pen. Though this was very funny for me to but ithappens with them every day and that makes them dissatisfied because at the timeof doing a big calculation if someone doesnt find his pen then it will discomfithim.

Communication breakdown


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When I was in MBL I have found that most of the time it was one way communication, upward to downward. When employees can

t communicate and voice out their opinions and ideas, either because of an imposed barrier or improper communication system, frustration develops and this creates job dissatisfaction.

Lack of trust and integrityIf lack of trust and integrity exist in the company then the employees will be dissatisfied. MBL employees are not integrated at all. They act like selfish people and they start backbiting about everyone in the company. This is also an indication that they are not satisfied with their job.


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3.1.5 How the top level management of MBL can minimize the job dissatisfaction levelAfter finding out the possible reasons behind the job dissatisfaction of the MBLemployees now its time to have a discussion about how to resolve this problem, if not possible at least how to minimize the job dissatisfaction level. Because at this point we all know that it is very necessary for a company to have satisfied employees otherwise the company will suffer huge loss in future. It is easierto find out how to minimize the job dissatisfaction level because right now weknow what the reasons are because of which the MBL employees are dissatisfied. But in reality the difficult part will be to implement these findings as these will increase the total expenses. In short-run this cost may look like a huge expense but truly this is going to be the biggest investment as MBL will be earningprofits through its satisfied loyal employees in future. For the time being, letsonly discuss how the top level management of MBL can minimize the job dissatisfaction level and the implementation part will be discussed later.

Job specification, roles and responsibilitiesEvery employee of MBL should know their roles, responsibilities and job functions appropriately. They should concisely know what is expected from them. An employee must know these from the start of his employment so that it will be easy forhim to decide if he wants to become a part of the establishment.

The leadershipOne of the areas that MBLs top management has to look into if employee dissatisfa

ction is prevalent they have to evaluate the performance of their managers and supervisors. These leaders can make or break the team and the business.


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The ToolsMBL should provide the necessary tools and resources to help the employees become more efficient and productive. Employees should be encouraged to learn and study more about their work and the banking industry. Top level management should keep one thing in their mind that- well trained and motivated staffs are the assets of Mercantile Bank Limited.

Building relationshipBusiness is not only about making profits. Its growth depends on building relationships with everyone involved meaning the stakeholders. Both the clients

and employees interests are important to the business. Well-trained, motivated and satisfied employees render outstanding services and bring satisfaction to clients. Happy clients provide more income and referrals.

Building TrustTrust that MBL employees will do their jobs and that they

ll do them well. Employee should have a say and the power to make decisions relating to his assigned task. If they feel trustworthy then they will be feeling satisfied thus they

ll prove what they are capable of doing.

Working EnvironmentMore organized and healthy working environment should be built as employees spend at least one third of their working hours there. Practicing favoritism, allowing backbiting and encouraging gossiping are some of the examples of a bad workin

g culture. A healthy workplace with equal opportunities should be given to everyone, which will reduce the employee job dissatisfaction.

The reward


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Receiving a bonus is always a delight for employees. Getting a raise and a promotion is every worker

s expectation. Other than this, getting or receiving compliments, recognitions, and approval on a regular basis are also very important. These boost morale and these make one feel appreciated and acknowledged.

Appraisal programTop level management should build the proper evaluation and encourage employeesto perform better. Getting or receiving compliments, recognitions, and approvalon a regular basis are very important. This boost morale and make one feel appreciated and acknowledged.

Organization developmentA corporate culture should be built in which employees will be an integral partof the company. This can be an effective way of satisfying them and getting themost from the talents or competencies brought to the company by each employee.


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3.1.6 Roles and responsibilities of a branch manager to minimize job dissatisfaction level Supervise and manage the overall performance of staff in his branch. Analyzing,reporting, giving recommendations and developing strategies on how to improve the employee dissatisfaction level. Making sure that everyone in his branch knowstheir roles and responsibilities. Inclusion of employee career development programs, succession planning and periodic training for the employees. Appreciate employees good work which will satisfy them. Communicating with the employees and minimize the personal distance. Identifying problems related to job dissatisfaction and report to the top level management.


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4.0 MethodologyThis research is cross sectional by nature. At first phase qualitative researchwas undertaken. It was covered through the secondary literature survey and primary qualitative analysis. To assess all the factors related with this topic, a structured questionnaire was prepared to test the outcome of the decision and discussion. The questionnaire primarily found out the exact reasons because of whichthe employees are dissatisfied in Mercantile Bank Limited. For the survey about50 personnel from Mercantile Bank Limited were approached and most of them reluctantly agreed to take part in the survey. After the survey data were compiled aseries of data analysis were conducted of which the frequency distribution, cross tabulation and regression were most noteworthy. Thereby, assessing the validity of the respondents the dissatisfaction level of the employees is measured.

4.1 Research DesignDuring the proper research paper plan, I had to accumulate, gather and analyze information. It is a framework for the research plane of action. For this research purpose, I have done both quantitative and conclusive research design. After doing exploratory research to find the initial problem, I have done descriptive and causal research for the detail and more depth research. Descriptive researchalso helps to find out the reasons that influence the job dissatisfaction. In research design, I have precise what data to gather, from whom, how and when to collect the data, and how to investigate the data obtained. I have formulated theresearch design plan into few stages.

4.1.1 Problem discovery and definition


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At first, I discovered the problem that MBL employees are dissatisfied. Then after going through exploratory research, I have defined the problem more accurately by giving rise to the hypothesis Compensation is not the only reason for the job dissatisfaction of the MBL employees.

4.1.2 Planning the research designThe research is designed in such a way so that we can have accurate answer formthe respondents and finally I can come to a decision.

4.1.3 Selecting sampleI interviewed some of the employees at the time of doing survey. I have selecteda sample where the employees are serving MBL for at least one year.

4.1.4 Gathering dataI took 50 respondents for the survey. I have personally collected data from 50 employees of the branch. Two of my bosses have helped me too collect the rest ofthe data as they had to attend the training program in other branches.

4.1.5 Data processing and analysisI have used the SPSS for data analysis part. At first I have prepared the codebook by keying the answer options with a specific number then I gave the inputs.

4.1.6 Conclusion and report writingConclusion is drawn based on the research findings and in-depth interpretation o

f the statistical figures.

4.1.7 Survey


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My plan was to develop a questionnaire through which I can ask questions to thetargeted sample and I solely dependent on the results of responses. The planningwas to deal with quantitative information. The method of managing the questionnaires would be through survey.

4.1.8 Primary dataPrimary refers to core data that I have got from primary sources such as SurveyQuestionnaires, Standardized Tests, Observational Forms, etc also known as Raw Data. The research is mostly based on the primary data, which I have collected from the primary sources mostly from the survey. I have also talk with them personally in order to obtain more information. I have conducted a survey on 50 employees to collect the primary data to find out the attitude of the employees of Mercantile Bank Limited. It was rather difficult to manage and convince the employees to take part in the survey. It was often asked to take the data from the internal source of MBL which the HR Division was reluctant to share stating it was classified and they would prefer to have a new perspective from the research instead of inclining the research finding aligned with the internal study.

4.1.9 Secondary dataSecondary data refers to literature studies made by others for their own purpose. As secondary data I have search the relevant information from Internet, newspaper, magazines, researched data etc. Different articles were published in the newspapers and web sites and intra-net of Mercantile Bank Limited but regarding employee satisfaction it was very difficult to get the information because hardly

any information were available in the articles.


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4.1.10 Purpose of descriptive researchIn this research, I have conducted descriptive research to identify 1. Whether employee satisfaction is important or not. 2. How different factors influence theemployee satisfaction level? 3. Reasons behind the job dissatisfaction of MBL employees? 4. Steps that top level management can take to minimize the job dissatisfaction level. 5. How can a branch manager minimize the dissatisfaction level?

4.1.11 Purpose of causal researchIn this case, we have done causal research to identify weather the change of onevariable affect the other variable.

4.1.12 Problem StatementNow a days job satisfaction is an important factor that drives people in workplaces and it is prominent in every sphere of life. In all industries we see job satisfaction directly related to productivity, attitude and dedication. People leave jobs for various reasons but when a large number of people leaves or switchesjobs in a short period of time that makes people curious to find out the reasonbehind such behavior. In Mercantile Bank Limited, it is evident that the employees are dissatisfied though they dont state this to their top level management however they express this when they start gossiping with other employees and some of the customers. This research aims to find out the reasons behind this kind ofjob dissatisfaction. Considering the above, the main research topic or the problem statement has been developed as:


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5.0 Hypotheses5.1 Primary Hypothesis

In order to test the primary hypothesis five supporting hypotheses was used so that we can know whether we can accept the primary null hypothesis or not. Through these series of hypotheses testing it can be found out that compensation is not the only reason for the job satisfaction of an employee. After testing all supporting hypothesis, if we at least find out one Employee Job Satisfaction at Mercantile Bank 37


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supporting hypothesiss null hypothesis not being rejected then it implies that our primary null hypothesis should not be rejected; meaning that compensation is not the only reason for job satisfaction of the MBL employees. In the Discussion of the Results part the author has described this in details. The Five supportinghypotheses are discussed in the following page.


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5.2 Supporting Hypotheses 5.3 Questionnaire Design


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The research was designed to find out the reasons behind the job dissatisfactionof MBL employees. For the research I developed a questionnaire with specific questions designed to find out the relationship between the different variables. Mostly, the questionnaire was developed in the Likert scale with several statementsbeing made and with the options ranging from Strongly Agree to Strongly Disagree. he fundamental reason for conducting this research is to find out the perceptionof the employees about their job. This is why I added a Likert scale attitude test of MBL employees. Later I added a ranking test, in which the respondents are asked to rank the decisive factors that they consider at the time of looking fora job. Brand name, salary, benefits, promotion opportunities, convenience, nature of work, work environment, workload, they were provided with these options sothat I can know which factor they value most and which one is the least according to them. The reason I kept this for last is because I wanted to see finally how my respondents would rate these key areas with respect to job.

5.4 Survey Data EditingEmployee Job Satisfaction at Mercantile Bank 37


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Data editing is a key segment for survey research. This step is very important to get an accurate picture of the overall situation. In an effort to improve thequality of the researchwork, my editing considered the three following parts:

At first, I conducted pretesting of my questions before finally distributing itto the respondents. During the editing process I checked the data for omissionsfor legibility for consistency and thus prepared the collected data for coding.

5.5 Survey Data Entry


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I was very conscious about the data entry process and carefully entered the values in SPSS. The software allowed me to enter and view data in two different ways:

The data view was used to enter the coded data into the software and the variable view was used to describe and code the variables.

5.6 Survey Data Summarization FrequencyI used frequency distribution tables to summarize the gathered data. This is a process where I recorded the number of times a particular value of a variable occurs. The mean, standard deviation and other descriptive statistics were also calculated along with the frequency distribution.

Cross tabulationI used cross tabulation, a technique to organize data by groups, categories, orclasses, and thus facilitating comparisons, and a joint frequency distribution of observations on two or more sets of variables. I also conducted cross tabulation analysis in this research.

Hypothesis TestingThe hypothesis testing method was applied to analyze the data at hand. By this procedure I tried to figure out whether the hypothesis I came up with was justified or not.


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RegressionI also performed linear regressions to understand the relationships between thedifferent variables. This helped me to form the composition of my research sincelinear regression prove or refutes the hypothesis developed.

LimitationsI faced some problems while conducting the research. The respondents were reluctant to give any information. Time was the key constrains of my report. Due to lack of time I had to complete the report in a hurry. There was some uncertainty about few responses. There are scope for social desirability bias and deliberatefalsification.


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6.0 Frequency AnalysisThe frequency analysis is basically done in order to find out what percentage ofthe respondents answered to a specific question. In the frequency analysis partsome of the vital questions were analyzed and interpreted accordingly.

6.1 Age

Age Frequency Valid 23-27 28-32 33-37 38-42 42+ Total System 7 15 18 6 4 50 72 122

Percent 13.9 25.4 18.0 4.9 3.3 65.6 34.4 100.0

Valid Percent 21.3 38.8 27.5 7.5 5.0 100.0

Cumulative Percent 21.3 60.0 87.5 95.0 100.0

Missing Total


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This graph shows the age differences of the respondents. We can observe from thegraph that the majority portion of our respondents is aged between 28 and 37. Ihad the majority 38.8% of the respondents who were aged within the range of 28to 32. 27.5% respondents were aged within the range of 33 to 37; these people are the experienced employees of MBL. Around 21.3% of the respondents were young employees of MBL, who are aged between 23-27. Remarks: Majority of the employeeswere young and these young people if MBL can motivate these people are make themsatisfied then they will stay in this bank and make valuable contribution to this bank.

6.2 GenderGender Frequency Valid Male Female Total System 34 16 50 42 122 Percent 68.0 32.0 65.6 34.4 100.0 Valid Percent 71.3 28.8 100.0 Cumulative Percent 71.3 100.0

Missing Total

This table shows my respondents gender variability. Here, the graph demonstratesthat I have surveyed on 68.0% male and 32.0% female during the research. My mainfocus was to Employee Job Satisfaction at Mercantile Bank 37


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conduct a survey which is independent of any kind of bias effects. In MBL the split between male and female is 70%-30%, my survey was very close to the actual scenario.

Remarks: 68.0% male and 32.0% female respondents will produce a almost bias free, realistic result reflecting employees attitude.

6.3 Job Nature

The job I do is interesting Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total Missing Total System 8 10 6 20 6 50 72 122 Percent 6.68.2 4.9 16.4 4.9 41.0 59.0 100.0 Valid Percent 16.0 20.0 12.0 40.0 12.0 100.0 Cumulative Percent 16.0 36.0 48.0 88.0 100.0

From the frequency analysis above it is observed that a greater percentage of the respondents have agreed to the statement that is 40%, furthermore 12% were strongly agree. Where only 12% went neutral and 20% disagreed and 16% strongly opposed the

statement. Typically, the segment of the respondents who disagreed

(20+16=36%) does not find their job to be interesting and vice versa.

6.4 Relationship with peers

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The peers/colleagues are friendly with me Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total Missing Total System 7 8 13 11 11 50 72122 Percent 5.7 6.6 10.7 9.0 9.0 41.0 59.0 100.0 Valid Percent 14.0 16.0 26.0 22.0 22.0 100.0 Cumulative Percent 14.0 30.0 56.0 78.0 100.0

From the frequency analysis above it is observed that more of the respondents were neutral (13) about the case and also most of them agreed (11+11=22) to have friendly relationship with their peers. However, a minor amount (7+8=15) of theserespondents indicated of having hostile relationship with peers. Apparently this group, no matter what their size is, can be a matter of concern for the organization.


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6.5 Utilization of skill in the given position

I am fully able to use my skills in this position Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total Missing Total System 7 10 8 17 850 72 122 Percent 5.7 8.2 6.6 13.9 6.6 41.0 59.0 100.0 Valid Percent 14.0 20.016.0 34.0 16.0 100.0 Cumulative Percent 14.0 34.0 50.0 84.0 100.0

Regarding this Question, the good numbers of responses were positive (34+16 =50%). Where 14+20=34% disagreed to the statement and 16% remained neutral.


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6.6 Compensation

I am happy with my compensation Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total Missing Total System 7 7 7 26 3 50 72 122 Percent5.7 5.7 5.7 21.3 2.5 41.0 59.0 100.0 Valid Percent 14.0 14.0 14.0 52.0 6.0 100.0Cumulative Percent 14.0 28.0 42.0 94.0 100.0

Answering the question of compensation a mass number of the respondents repliedto be positive about the statement. This is a 58% of the positive responses. However, the other responses were 14% for each of them respectively.


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6.6 The Job Satisfaction

I am happy with this organization Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total Missing Total System 7 11 12 9 11 50 72 122 Percent 5.7 9.0 9.8 7.4 9.0 41.0 59.0 100.0 Valid Percent 14.0 22.0 24.0 18.0 22.0 100.0 Cumulative Percent 14.0 36.0 60.0 78.0 100.0

Here comes the most vital question of the research that is, the satisfaction ofthe employees with the organization. Observing the responses it is found out that a mixed number of employees are showing mixed number of feelings towards the job satisfaction. The Numbers simply indicates 20 of the respondents answered positively where 18 answered negatively and also, 12 remained neutral.


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7.0 Cross Tabulation Analysis7.1 Hypothesis Testing 7.1.1 Primary HypothesisNull Hypothesis (H0): Compensation is not the only factor that affects Job Satisfaction Alternative Hypothesis (H1): Compensation is the only factor that affects Job Satisfaction Before discussing further it should be proved that Compensation is a factor for the job satisfaction of MBL employees. Null Hypothesis (H0):Compensation is a factor for the job satisfaction of MBL employees. AlternativeHypothesis (H1): Compensation is not a factor for the job satisfaction of MBL employees.

I am happy with this organization * I am happy with my compensation - Cross tabulation Count I am happy with my compensation Strongly Disagree I am happy with this organization St

119197705 markentile bank internship report

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