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Chapter 1
Introduction
1.1 Background of the Study
The public enterprises have made significant contribution in the development of the
enterprise in private sector or public sector, its success depends upon the good human
resource planning. The study mainly centralized on the employee motivation practice in the
company.
Management is supposed to get the work done by the subordinate towards the attainment of
the common goals. This is the most important function of management to inspire and
stimulate the personal to do work for the accomplishment of the organizational objectives in
other words it is motivation of the people. A successful management knows that the issue of
direction however will conceive does not mean that may will fellow in its true spirit. He
should be in trust of the people to do the work for the achievement of established goals. He
should also know that motivation is an unending process. The management has to provide for
their employee constantly.
The purpose of this report is to provide information on methods and practices to evaluate the
employee motivation while recognizing that all element of the suggested principles.
Employee motivation may not always implement effectively. Organizations that monitor
effectiveness and strive to improve weakness are consistently the best performer.
Human motives are based on certain needs that may be primary or secondary need and may
vary in their industry according to situation and time. The management must ready those
needs try to understand the intensity and the responsibility to satisfy there in order to work.
Motivation means that process which creates an inspiration in a person. Motivation is derived
from the word ‘motive’ which means the latest power in a person which impels him to do a
work.
Motivation is one of the most important aspects of human resource management performance
results from the interaction of physical and human resource. The management can attain
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control over them but in the case of physical and financial factors, management can
accurately predict the input-output relationship and can vary the factors it choose in order to
achieve desired rate of production. In dealing with the employees, however, an intangible
factors of will or freedom of choice is introduced and workers can increase or decrease their
productivity as they choose. Thus human quality gives rise to the need for productive
motives.
Motivation is the process of steering a person’s inner drives and actions towards certain goals
and committing his energies to achieve these goals. It involve a chain reaction starting with
felt needs, resulting in motives which give rise to tension which census action towards goals.
It is the process of stimulating people to strive willingly towards the achievement of
organizational goals. Motivation may be defined as the work a manager performs in an order
to Induced subordinates to act on the desired manner by satisfying their needs and desires.
Thus motivations is concerned with how behaviour gets started, is energized, sustained and
directed.
This research was conducted to study the employee motivation and how it affects on the work
of employees. The research was conducted in, Rastriya Banijya Bank ltd.
1.2 Introduction of the Company
Rastriya Banijya Bank is fully government owned, and the largest commercial bank in Nepal.
RBB was established on January 23, 1966 (2022 Magh 10 BS) under the RBB Act. RBB
provides various banking services to a wide range of customers including banks, insurance
companies, industrial trading houses, airlines, hotels, and many other sectors. RBB has
Nepal's most extensive banking network with 160 branches.
RBB Ltd. established on January 23, 1966. A synonymous of stable and people's bank in
Nepal. It is one of the pioneer Bank in the country with the history of nearly a half century.
Earlier constituted under RBB act 2021 with the full ownership of the government of Nepal,
the Bank has been running under Bank and Financial Institute Act ( BAFIA ) and Company
Act (CA) 2063 at present. The Bank licensed by NRB as a 'A' class commercial Bank of the
country, has grown up as an indispensable component of the Nepalese economy.
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Rastriya Banijya Bank has made glorious history of contributing for the monetization of the
economy, eliminating dual currency in the market, initiating preliminary financial literacy,
help flourish industrial, commercial and financial sector of the country has now emerged as a
modern and strong financial institute of the country. The Bank with 2600 hands has expanded
its wings in the most part of the country through multiple distribution outlets of 160 branches,
17 counters, 28 branch less banking (BLB) and 80 ATMs. The Bank with the highest public
confidence reflected in the highest deposit base and growing demand for branch
establishment in the various parts has stood as a pyramid in the financial arena of the country.
The Bank with as many as 1.7 millions satisfied customers ranging from poor to elite ones
and millions of indirect ones, has drawn important imprint in the picture of country's
economy through its significant involvement in the best use of its resources to enhance the
production, income and employment opportunities. The Bank is fully committed to contribute
its best for the socio economic development of the country and people in the days to come.
The bank serve their valued customers through e-delivery points like Mobile Banking,
Automated Teller Machines (ATMs) and Online Banking service for corporate and retail
customers.
Department of Rastriya Banijya Bank are Human Resource, LRDR, Treasury, Electronic
Banking, Legal department, Institution and small medium credit department, Infrastructure
consolidatium department, Training department, Finance dept, Inter branch reconciliation
dept, Assets management dept, MIS and Budget dept, Marketing and development dept,
Branch operational dept, Internal audit dept, General service dept, IT dept, Credit Agriculture
and social dept.
Services Currently Offered by Rastriya Banijya Bank Credit- Business loan, Housing Loan,
Vehicle Loan, Educational loan, Apartment Loan, Loan Against Gold, Loan against fixed
deposit, receipt Loan against the government bond,Loan against shares, Loan against the first
class bank guarantee, Rastra Sewak, Loan ,Teachers Loan, Personal, Loan Agricultural Loan.
Deposit - Current Account, Saving account, Fixed Deposit, Karma yogi Bachat Khata, Maha
laxmi Bachat Khata, Chhuna muna Bachat Khata, Sikshak Bachat Khata.
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Table 1: The Board of Directors Mr. Dr. Rewat Bahadur Karki Chairperson
Mr. Dilli Prasad Shiwakoti Director
Mr. Dr .Jitendra Prasad Upadhya Director
Mr. Guamemdra Raj Koirala Director
Mr. Batuknath Dhakal Director
Mr. Hari Prasad Munakami Director
Ms. Shiva Devi Kafle Director
Mr. Krishna Prasad.Sharma CEO
Source: www.rbb.com.np
The board is collectively responsible for the success of the Bank. Directors are responsible
for bringing independent judgment and scrutiny to decisions taken by the Board. In addition
to their statutory duties, the Directors must ensure that the Board focuses effectively on all its
accountabilities. The Board determines the strategic objectives and policies of the Bank to
deliver long-term value, providing overall strategic direction within an appropriate
framework of rewards, incentives and controls.
The board delegates the responsibility for the day- to -day management of the bank to the
chief Executive and Managing Director and he is responsible for ensuring that the business is
operating effectively. The Chief Executive chairs the Central Management Committee, which
supports him in his role.
The Central management Committee is supported by a number of management committees,
including the Market Risk Management Committee, the Operational Risk Management
committee, the credit risk management committee, the operational risk management
committee, the NPA and the NBA Management Committee.
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1.2.1 Banking in Nepal: A history of Banking system in Nepal
In the context of Nepal, it is very difficult to trace the correct chorological history of the
Banking systems in Nepal because there are no sufficient historical records and data about
Banking in Nepal.
Nepal bank Ltd. is the first modern bank of Nepal. It is taken as the milestone of modern
banking of the country. Nepal bank marks the beginning of a new era in the history of the
modern banking in Nepal. This was established in 1937 A.D. Nepal Bank has been
inaugurated by King Tribhuvan Bir Bikram Shah Dev on 30 th Kartik 1994 B.S. Nepal bank
was established as a semi government bank with the authorized capital of Rs.10 million and
the paid -up capital of Rs. 892 thousand. Until mid-1940s, only metallic coins were used as
medium of exchange.
So, the Nepal Government (His Majesty Government on that time) felt the need of separate
institution or body to issue national currencies and promote financial organization in the
country. Nepal Bank Ltd. remained the only financial institution of the country until the
foundation of Nepal Rastra Bank is 1956 A.D. Due to the absence of the central bank, Nepal
Bank has to play the role of central bank and operate the function of central bank. Hence, the
Nepal Rastra Bank Act 1955 was formulated, which was approved by Nepal Government
accordingly, the Nepal Rastra Bank was established in 1956 A.D. as the central bank of
Nepal. Nepal Rastra Bank makes various guidelines for the banking sector of the country.
A sound banking system is important for smooth development of banking system. It can play
a key role in the economy. It gathers savings from all over the country and provides liquidity
for industry and trade.
In 1957 A.D. Industrial Development Bank was established to promote the industrialization
in Nepal, which was later converted into Nepal Industrial Development Corporation (NIDC)
in 1959 A.D.
Rastriya Banijya Bank was established in 1965 A.D. as the second commercial bank of
Nepal. The financial shapes for these two commercial banks have a tremendous impact on the
economy. That is the reason why these banks still exist in spite of their bad position.
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As the agriculture is the basic occupation of major Nepalese, the development of this sector
plays in the prime role in the economy. So, separate Agricultural Development Bank was
established in 1968 A.D. This is the first institution in agricultural financing.
For more than two decades, no more banks have been established in the country. After
declaring free economy and privatization policy, the government of Nepal encouraged the
foreign banks for joint venture in Nepal.
Today, the banking sector is more liberalized and modernized and systematic managed. There
are various types of bank working in modern banking system in Nepal. It includes central,
development, commercial, financial, co-operative and Micro Credit (Grameen) banks.
Technology is changing day by day. And changed technology affects the traditional method
of the service of bank.
Banking software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid Card
etc. services are available in banking system in Nepal. It helps both customer and banks to
operate and conduct activities more efficiently and effectively.
For the development of banking system in Nepal, NRB refresh and change in financial sector
policies, regulations and institutional developments in 1980 A.D. Government emphasized
the role of the private sector for the investment in the financial sector. These policies opened
the doors for foreigners to enter into banking sector in Nepal under joint venture.
Some foreign ventures are also established in Nepal such as Nepal Bangladesh Bank,
Standard Chartered Bank, Nepal Arab Bank, State Bank of India, ICICI Bank, Everest Bank,
Himalayan Bank, Bank of Kathmandu, Nepal Indo-Suez Bank and Nepal Sri Lanka Merchant
Bank etc.
The NRB will classify the institutions into “A” “B” “C” “D” groups on the basis of the
minimum paid-up capital and provide the suitable license to the bank or financial institution.
Group ‘A’ is for commercial bank, ‘B’ for the development bank, ‘C’ for the financial
institution and ‘D’ for the Micro Finance Development Banks.
1.3 Objective of the Company
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1.3.1 Strategic objectives
The key elements of overall strategic goal are to build an open and honest corporate culture
and to engage actively on mutual beneficial relationship with all stakeholders to create value
for them. The six key objectives are:
Focus on providing innovative financial services.
Increase in capital base of the Bank by meeting the minimum capital requirement.
Business growth and increase in market share.
Enhance operational efficiency.
Sustainable increase in profits.
Focus on empowerment of deprived class.
1.3.2 Vision and Mission
Vision: "To provide innovative banking services to everyone, everytime and everywhere for
the economic development of the nation".
Mission: "To provide easy and innovative banking products and services for our customers
by implementing one stop service concept from our wide network using our modern
technology qualified human resources in competitive environment. We always look for the
benefit of the local communities supporting entrepreneurship, social responsibility and
economic prosperity of the nation".
1.4 Research Methodology
Research methodology is composed of two words: ‘Research’ and ‘methodology’. Research
is the systematic and organized effort to investigate a specific problem that needs a solution.
This process of investigation involves a series of well thought out activities of gathering,
recording, analyzing, and interpreting the data with the purpose of finding answer to problem.
Thus, the entire process by which we attempt to solve problem is called research, while
‘methodology’ is the research method used to test different statistical tools in order to make
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conclusion. A sound and systematic methodology is required to carry out any study, if it is to
be worthwhile.
Research Methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In research
methodology, we study the various steps that are generally adopted by a researcher, studying
his/her research problem among with the logic behind them.
Research is a systematic method of finding out the solution to a problem whereas research
methodology refers to the various sequential steps to adopt by a researcher in studying a
problem with certain objective in view.
1.4.1 Research Design
Research design is the plan, structure and strategy of investigation conceived so as to obtain
answer to research questions and control variance. It serves as a framework for the study,
guiding the collection and analysis of the data, the research instruments to be utilized and the
sampling plan to be followed. This report is a combination of descriptive as well as
explorative research design.
1.5 Objective of the Study
The basic objective of the study is to analyze the motivation of employee in Rastriya Banijya
Bank Ltd. The following are the main objectives of the study:
General overview of employee motivation in the company.
To analyze the level of job satisfaction.
To analyze the basis of performance evaluation.
1.6 Limitation of the Study
Limitations exist everywhere and this study is also not on exception of it. Following are some
limitations of the study:
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This study has done only for partial fulfilment on MBS, so this is not comprehensive
study.
This study only concerned with one banks not all commercial banks.
This study does not cover the whole staffs.
Due to time and resource constraints detail study and deep research could not be done.
The study covers only few tools and technique.
1.7 Structure of the Report
This study has been organized in five chapters they are Introduction, Work done and Lesson
Learnt, Literature Review, Analysis, Summary, Conclusion and Recommendation,
In the first chapter i.e. Introduction includes the Background of the study, introduction of the
company, History of Banking system in Nepal, objective of the company, Research
Methodology, objective of the study and limitation of the study has also been laid down in
this first chapter.
In the Second chapter i.e. Work done and lesson learnt covers Introduction, work done,
collection of data, Interview and lesson learnt.
In the Third chapter i.e. Literature Review covers introduction, definition of motivation,
Importance of Motivation and theories of motivation has been laid down in this chapter.
In the Fourth chapter i.e. Analysis covers Presentation of data and the analysis of the
presented data have been stated. In this chapter, employee satisfaction, recruitment
procedure, performance evaluation of employee has been explained.
In the Fifth chapter the summary, conclusion and the recommendation has been done.
Bibliography and appendices provides the references information, tabulation and diagrams to
support the study, Bibliography includes information related to annual report, previous thesis
reports, official websites, book and journals.
1.8 Conclusion
This study is about employee motivation in Rastriya Banijya Bank. The introduction
chapter provides information on research background, research aims and research
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objectives. It is necessary to find out what should be done to motivate workers in this
type of company to work with their best effort.
Chapter 2
Work done and Lesson learnt
2.1 Introduction
Our field work is mainly based on the motivation of employee in the Rastriya Banijya Bank.
It was established in 23, January 1966. It is one of the pioneer Bank in the country with the
history of nearly a half century. Earlier constituted under RBB act 2021 with the full
ownership of the government of Nepal, the Bank has been running under Bank and Financial
Institute Act and Company Act 2063 at present. The Bank licensed by NRB as a 'A' class
commercial Bank of the country, has grown up as an indispensable component of the
Nepalese economy. In this bank more than forty two thousand six hundred forty seven staff
were working in which eight hundred twenty were officer, one thousand seven hundred and
one were assistant, one hundred and three were contract staff and three were others. The
employees is fully committed to contribute its best for the socio economic development of the
country and people in the days to come.
2.2 Work done
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The major work done during the field work is to prepare the questionnaire and made
available to employees and they had time to answer the question based on their views at the
company. On the basis of questionnaire result analysis is done.
2.2.1 Collection of Data:
i) Primary data collection Sources:
The primary data are collected personally through questionnaires, direct observations and
interviewing method. This highlights the real function of information about the company.
ii) Secondary data collection Sources:
As a general rule, no research should be conducted without undertaking exploratory
investigations of secondary data. All the relevant literature published and unpublished is
collected and reviewed in order to make the study meaningful and reliable. The data from
various sources are collected and only proper data are arranged and analyzed. So the main
source of data collection is the secondary data collection method. The main sources are:
Annual report of Rastriya Banijya Bank.
Website of Rastriya Banijya Bank.
Different related books, journals, magazines, report published by different research
center.
2.2.2 Interview
The formal Interview of employees is taken on the basis of self- developed questionnaire.
This questionnaire includes different motivation aspect of employee. The questionnaire was
distributed randomly to a sample of employee and take individual interview. Questionnaires
were distributed over 20 employees who are working in various departments, with different
job responsibilities and organization position.
2.3 Lesson learnt
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This field work has been very fruitful, exciting and equally challenging experience for us to
study, analyze and understand the functioning of the organization. The banking sector is the
one of the service sectors which is vital for the uplift of the economy for the country and is
dominant in the present context. The work in the bank is a really challenging one which was
learnt during the Field work at the Rastriya Banijya Bank.
Moreover, willingness to learn and taking initiative is essential to gain comprehensive
knowledge about the work. During this field work gave us an opportunity to learn about the
basic activities of the various departments but also helped to shape personality and character
to greater extend.
Some of the lesson learnt during this field work is stated below:
The corporate working environment which is the basic lesson for the career
development
Importance of being punctual, manage time and being patient.
Bulled up self-confidence and good communication while dealing with any member
of organization.
The importance of time management and the need of the communication skills during
the field work.
Never to enter in any executives room when there is any discussion or conversations
going on with other people.
The difference between the theoretical knowledge in the classroom and the working
environment in the real world and realized everyone in the work place has to be
enthusiastic, cooperative and hardworking.
2.4 Conclusion
Work done and lesson learnt is analysed in this chapter. Work done include survey
questionnaire, formal interview with the employee of RBB, self observation and data
collection technique is analysed and learned.
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Chapter 3
Literature Review
3.1 Motivation
The word motivation has been derived from motive which means any idea, need or emotion
that prompts a man in to action. Whatever may be the behaviour of man, there is some
stimulus behind it. Stimulus is dependent upon the motive of the person concerned. Motive
can be known by studying his needs and desires. There is no universal theory that can explain
the factors influencing motives which control mans behaviour at any particular point of time.
In general, the different motives operate at different times among different people and
influence their behaviours.
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The process of motivation studies the motives of individuals which cause different type of
behaviour. Motivation is the core of management. Motivation is an effective instrument in the
hands of the management in inspiring the workforce. It is the major task of every manger to
motivate his subordinate or to create the will to work among the subordinates. It should also
be remembered that the worker maybe immensely capable of doing some work, nothing can
be achieved if he is not willing to work. Creation of a will to work is motivation in simple but
true sense of term. Motivation is an important function which every manager performs for
actuating the people to work for accomplishment of objectives of the organization. Issuance
of well conceived instructions and orders does not mean that they will be followed. A
manager has to make appropriate use of motivation to enthuse the employees to follow them.
Effective motivation succeeds not only in having an order accepted but also in gaining a
determination to see that it is executed efficiently and effectively. In order to motivate
workers to work for the organizational goals, the managers must determine the motives or
needs of the workers and provide an environment in which appropriate incentives are
available for their satisfaction. If the management is successful in doing so, it will also be
successful in increasing the willingness of the workers to work. This will increase efficiency
and effectiveness of the organization. There will be better utilization of resources and
workers abilities and capacities.
3.2 Definition of Motivation
According to Edwin B Flippo, "Motivation is the process of attempting to influence others to
do their work through the possibility of gain or reward. According to Michal J Jacius,
Motivation is the act of stimulating someone or oneself to get a desired course of action or to
push the right button to get a desired reaction. According to Dalton E. Mcfarland, "The
concept of motivation is mainly psychological. It related to those forces are many and keep is
mainly psychological. It related to those forces are many and keep on changing with time
motives are invisible and directed towards certain goals
3.3 Importance of Motivation
Motivation is one of the most important factors determining organizational efficiency. All
organizational facilities will go to waste in absence of motivated people to utilize these
facilities effectively. Every superior in the organization must motivate is subordinates for the
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right types of behaviour. The performance of human beings in the organization is dependent
on the ability in the motivation. Rensis Likert called motivation as "the cost of the
management". Motivation is an effective instrument in the hands of management in inspiring
the workforce. Motivation increases the willingness of the workers to work, thus increasing
efficiency and effectiveness of the organization.
3.4 THEORIES OF MOTIVATION
3.4.1 Maslow’s Hierarchy of Needs Theory:
Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943.
This theory is a classical depiction of human motivation. This theory is based on the
assumption that there is a hierarchy of five needs within each individual. The urgency of
these needs varies. These five needs are as follows-
Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In
other words, physiological needs are the needs for basic amenities of life.
Safety needs- Safety needs include physical, environmental and emotional safety and
protection. For instance- Job security, financial security, protection from animals, family
security, health security, etc.
Social needs- Social needs include the need for love, affection, care, belongingness, and
friendship.
Esteem needs- Esteem needs are of two types: internal esteem needs (self-respect,
confidence, competence, achievement and freedom) and external esteem needs (recognition,
power, status, attention and admiration).
Self-actualization need- This include the urge to become what you are capable of becoming
what you have the potential to become. It includes the need for growth and self-contentment.
It also includes desire for gaining more knowledge, social- service, creativity and being
aesthetic. The self actualization needs are never fully satiable. As an individual grows
psychologically, opportunities keep cropping up to continue growing.
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According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs
is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the
five needs into two categories -Higher-order needs and Lower-order needs. The physiological
and the safety needs constituted the lower-order needs. These lower-order needs are mainly
satisfied externally. The social, esteem, and self-actualization needs constituted the higher
order needs. These higher-order needs are generally satisfied internally, i.e., within an
individual. Thus, we can conclude that during boom period, the employees lower-order needs
are significantly met.
Our field work is mainly based on the motivation of employee in the Rastriya Banijya Bank.
Implications of Maslow’s Hierarchy of Needs Theory for Managers
1. As far as the physiological needs are concerned, the managers should give employees
appropriate salaries to purchase the basic necessities of life. Breaks and eating opportunities
should be given to employees.
2. As far as the safety needs are concerned, the managers should provide the employees job
security, safe and hygienic work environment, and retirement benefits so as to retain them.
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3. As far as social needs are concerned, the management should encourage teamwork and
organize social events.
4. As far as esteem needs are concerned, the managers can appreciate and reward employees
on accomplishing and exceeding their targets. The management can give the deserved
employee higher job rank / position in the organization.
5. As far as self-actualization needs are concerned, the managers can give the employees
challenging jobs in which the employees’ skills and competencies are fully utilized.
Moreover, growth opportunities can be given to them so that they can reach the peak.
The managers must identify the need level at which the employee is existing and then those
needs can be utilized as push for motivation. Limitations of Maslow’s Theory it is essential to
note that not all employees are governed by same set of needs. Different individuals may be
driven by different needs at same point of time. It is always the most powerful unsatisfied
need that motivates an individual. The theory is not empirically supported. The theory is not
applicable in case of starving artist as even if the artist’s basic needs are not satisfied, he will
still strive for recognition and achievement
3.4.2 Herzberg’s Two-Factor Theory of Motivation:
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the
motivator hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to
Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of
“Dissatisfaction” is “No Dissatisfaction”. Fredrick Hertz (1959), the two-factor theory also
known as the hygiene theory, where he referred to satisfiers as motivators, dissatisfies as
hygiene factors. He found out that motivators were related to job experience and dissatisfies
related to environmental conditions. These are classified in the table below.
Table 2: Motivation satisfiers and dis-satisfiers.
Motivators(satisfiers) Maintenance factor (dis-satisfier)
Challenging work Status
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Achievement Interpersonal relations
Growth of the job Quality supervision
Responsibility Company policy
Advancement Working condition
Recognition Salary
Herzberg’s view of satisfaction and dissatisfaction Herzberg classified these job factors into
two categories:
1. Hygiene factors:
Hygiene factors are those job factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long-term. But if these factors are
absent / if these factors are non-existent at workplace, then they lead to dissatisfaction. In
other words, hygiene factors are those factors which when adequate/reasonable in a job,
pacify the employees and do not make them dissatisfied. These factors are extrinsic to work.
Hygiene factors are also called as dissatisfies or maintenance factors as they are required to
avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene
factors symbolized the physiological needs which the individuals wanted and expected to be
fulfilled.
Hygiene factors include:
Pay - The pay or salary structure should be appropriate and reasonable. It must be
equal and competitive to those in the same industry in the same domain.
Company Policies and administrative policies - The company policies should not be
too rigid. They should be fair and clear. It should include flexible working hours,
dress code, breaks, vacation, etc.
Fringe benefits - The employees should be offered health care plans (medical claim),
benefits for the family members, employees help programme, etc.
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Physical Working conditions - The working conditions should be safe, clean and
hygienic. The work equipments should be updated and well-maintained.
Status - The employees’ status within the organization should be familiar and
retained.
Interpersonal relations - The relationship of the employees with his peers, superiors
and subordinates should be appropriate and acceptable.
2. Motivational factors:
According to Herzberg, the hygiene factors cannot be regarded as motivators. The
motivational factors yield positive satisfaction. These factors are inherent to work. These
factors motivate the employees for a superior performance. These factors are called satisfiers.
These are factors involved in performing the job. Employees find these factors intrinsically
rewarding. The motivators symbolized the psychological needs that were perceived as an
additional benefit. Motivational factors include:
Recognition - The employees should be praised and recognized for their
accomplishments by the managers.
Sense of achievement - The employees must have a sense of achievement. This
depends.
Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
Responsibility - The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control but
retain accountability.
Meaningfulness of the work - The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
Limitations of Two-Factor Theory the two factor theory is not free from limitations:
The two-factor theory overlooks situational variables.
Herzberg assumed a correlation between satisfaction and productivity. But the
research conducted by Herzberg stressed upon satisfaction and ignored productivity.
The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters
may spoil the findings by analyzing same response in different manner.
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No comprehensive measure of satisfaction was used. An employee may find his job
acceptable despite the fact that he may hate/object part of his job.
The two factor theory is not free from bias as it is based on the natural reaction of
employees when they are enquired the sources of satisfaction and dissatisfaction at
work. They will blame dissatisfaction on the external factors such as salary structure,
company policies and peer relationship. Also, the employees will give credit to
themselves for the satisfaction factor at work.
The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-
Factor theory is acceptable broadly.
Implication of Two Factor Theory implies that the managers must stress upon guaranteeing
the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers
must make sure that the work is stimulating and rewarding so that the employees are
motivated to work and perform harder and better. This theory emphasize upon job-
enrichment so as to motivate the employees. The job must utilize the employee’s skills and
competencies to the maximum. Focusing on the motivational factors can improve work-
quality.
3.4.3 Expectancy Theory of Motivation:
The expectancy theory was proposed by Victor Vroom of Yale School of Management in
1964. Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and
Herzberg. The theory states that the intensity of a tendency to perform in a particular manner
is dependent on the intensity of an expectation that the performance will be followed by a
definite outcome and on the appeal of the outcome to the individual. The Expectancy theory
states that employee’s motivation is an outcome of how much an individual wants a reward
(Valence), the assessment that the likelihood that the effort will lead to expected performance
(Expectancy) and the belief that the performance will lead to reward (Instrumentality). In
short, Valence is the significance associated by an individual about the expected outcome. It
is an expected and not the actual satisfaction that an employee expects to receive after
achieving the goals. Expectancy is the faith that better efforts will result in better
performance. Expectancy is influenced by factors such as possession of appropriate skills for
performing the job, availability of right resources, availability of crucial information and
getting the required support for completing the job. Instrumentality is the faith that if you
perform well, then a valid outcome will be there. Instrumentality is affected by factors such
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as believe in the people who decide who receives what outcome, the simplicity of the process
deciding who gets what outcome, and clarity of relationship between performance and
outcomes.
Thus, the expectancy theory concentrates on the following three relationships
Effort-performance relationship: What is the likelihood that the individual’s effort be
recognized in his performance appraisal?
Performance-reward relationship: It talks about the extent to which the employee
believes that getting a good performance appraisal leads to organizational rewards.
Rewards-personal goals relationship: It is all about the attractiveness or appeal of the
potential reward to the individual Vroom was of view that employees consciously
decide whether to perform or not at the job. This decision solely depended on the
employee’s motivation level which in turn depends on three factors of expectancy,
valence and instrumentality.
Advantages of the Expectancy Theory
It is based on self-interest individual who want to achieve maximum satisfaction and
who wants to minimize dissatisfaction.
This theory stresses upon the expectations and perception; what is real and actual is
immaterial.
It emphasizes on rewards or pay-offs.
It focuses on psychological extravagance where final objective of individual is to
attain maximum pleasure and least pain.
Limitations of the Expectancy Theory
The expectancy theory seems to be idealistic because quite a few individuals perceive
high degree correlation between performance and rewards.
The application of this theory is limited as reward is not directly correlated with
performance in many organizations. It is related to other parameters also such as
position, effort, responsibility, education, etc.
22
3.4.4 Theory X and Theory Y:
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of
human behaviour at work, or in other words, two different views of individuals (employees):
one of which is negative, called as Theory X and the other is positive, so called as Theory Y.
According to McGregor, the perception of managers on the nature of individuals is based on
various assumptions.
Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it whenever
possible.
Since the employee does not want to work, he must be persuaded, compelled, or
warned with punishment so as to achieve organizational goals.
A close supervision is required on part of managers. The managers adopt a more
dictatorial style.
Many employees rank job security on top, and they have little or no aspiration/
ambition.
Employees generally dislike responsibilities.
Employees resist change. An average employee needs formal direction.
Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their physical
and mental efforts in an inherent manner in their jobs.
Employees may not require only threat, external control and coercion to work, but
they can use self-direction and self-control if they are dedicated and sincere to achieve
the organizational objectives.
If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.
An average employee can learn to admit and recognize the responsibility. In fact, he
can even learn to obtain responsibility.
The employees have skills and capabilities. Their logical capabilities should be fully
utilized.
In other words, the creativity, resourcefulness and innovative potentiality of the employees
can be utilized to solve organizational problems. Thus, we can say that Theory X presents a
23
pessimistic view of employees’ nature and behaviour at work, while Theory Y presents an
optimistic view of the employees’ nature and behaviour at work. If correlate it with Maslow’s
theory, we can say that Theory X is based on the assumption that the employees emphasize
on the physiological needs and the safety needs; while Theory Y is based on the assumption
that the social needs, esteem needs and the self-actualization needs dominate the employees.
McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he
encouraged cordial team relations, responsible and stimulating jobs, and participation of all in
decision-making process.
3.4.5 Vroom’s Expectancy Theory:
The expectancy theory of motivation was established by Victor Vroom with the belief that
motivation is based on the expectation of desired outcomes. The theory is based on three
concepts: valence, expectancy, and force. Valence is the attractiveness of potential rewards,
outcomes, or incentives. Expectancy is a person’s belief that they will or will not be able to
reach the desired outcome. Force is a person’s motivation to perform. “In general, people will
work hard when they think that it is likely to lead to desired organizational rewards”.
3.4.6 Alderfer’s ERG Theory
As a refinement of Maslow’s theory Alderfer proposes a hierarchy of three core needs:
existence, relatedness and growth. The existence category of needs refers to the provision of
basics material existence requirements, embodying items which Maslow described as
physiological and safety needs. The relatedness group of needs refers to the urge for
maintaining significant interpersonal needs (or social and status desires) involving interaction
with others and allied items, which Maslow considered as social and the external esteem
needs. The group of growth needs refers to an intrinsic desire for one’s personal development
and includes items which Maslow designated as self-actualisation needs.
Although there does not exist definitive empirical evidence to support Alderfer’s theory, it
deals effectively with the problem of overlapping inherent in Maslow’s theory by
differentiating between survival, social and personal growth needs. Thus, it avoids the
assumption that the lower needs (i.e. existence) must be adequately satiated before the higher
order needs (i.e. relatedness) can emerge. The importance or the driving force of a category
of needs is a function of an individual’s divergent characteristics, including educational,
24
family and cultural backgrounds. A theory of motivation can have cross-cultural validity if it
either avoids the assumption that all people proceed through a specific sequential need
hierarchy or refines the theory to identify factors which differentiate them into homoge.
3.4.7 McClelland’s Theory
McClelland proposed three needs which are important in organisational settings, for
understanding motivation. These needs include achievement power and affiliation.
i) Achievement motivation has been intensively studied by McClelland and his associates and
described in their treatise the Achievement motive. It has been defined as a desire to succeed
in competitive situations based on a standard of excellence determined by others’ or one’s
own preceding standards.
The individual propelled by achievement motivation is constantly preoccupied with the desire
for improvement and better performance in his position and tends to prefer situations where
he can get quick and precise feedback on his performance. Individuals who are equipped with
high achievement motivation are fond of taking calculated risks and search for environments
conducive to challenging opportunities, personal responsibility, autonomy and a sense of
mastery. Such individuals derive greater excitement from the solution of a complex problem
rather than the accompanying money or praise and tend to make outstanding executives or
entrepreneurs. Organizations which have a sizeable number of such individuals make rapid
progress.
25
It has also been demonstrated by McClelland in his empirical work, The Achieving Society
that the economic development of a country has high positive correlation with the level of
achievement motivation obtained among its population. According to him, if attempts are
made to detect need for achievement in individuals or nations, it can facilitate faster
economic development in developing countries like India.
McClelland’s theory implies that managers with high achievement motivation may set high
standards of performance for themselves and their subordinates and are likely to be
improvement and innovation-minded in their positions.
ii) Power motivation has been defined as a desire to affect the behavior of other individuals
and to control and manipulate the surroundings. It has been assumed that power motivation
becomes strong in people who feel themselves to be inadequate to achieve respect and
recognition from other individuals and subsequently, go out of their way to seek the attention
of others. Individuals with high power motivation either emerge as successful leaders or
alcoholics. McClelland stresses that the power motivation is closely related to managerial
success. However, it is not certain which the cause is and which is the effect.
Power motivation may be in negative and un-socialised or positive and socialized forms.
Such motivation is likely to energize and people to seek leadership roles. But it is also likely
that in such roles, individuals with high power motivation, involving negative orientation
may tend to adopt an exploitative autocratic style, whereas those with low power motivation
may resort to a laissez- faire style. Moderately high power motivation, involving positive
orientation, leads to a participative democratic leadership style.
iii) Affiliation motivation is a desire to interact with other individuals to be liked by them, to
different groups, etc. Thus, it is related to social needs. Schachter in his treatise titled The
Psychology of Affiliation, has also analyzed this motivation. He has assumed that individuals
tend to seek affiliation to substantiate their beliefs and not merely to have good
companionship. Such substantiation provides them with some kind of uncertainty provides
them with some kind of certainty in life-situations which there is likely to be a lot of
confusion especially, when one’s beliefs are shattered.
26
Basically, affiliation motive is the desire to socialize as a goal in itself. People tend to seek
good company, good family life and popularity in groups just for its own sake. Leaders with
high affiliation motivation are likely to be relations-oriented, warm, friendly and supportive
while those with low affiliation motivation may be impersonal, bureaucratic and inaccessible
in organizational settings. High affiliation motivation must, however be accompanied by high
achievement motivation in the leader otherwise he is likely to sacrifice standards performance
for the sake of his popularity and be exploited by his subordinates.
3.5 Conclusion
Though these theories are very basic in nature, they provide a platform for future generation
of management theorists. Herzberg’s hygiene and motivation factors and Maslow’s hierarchy
of needs still have broad applicability in the business world. These theories cover major
aspects of human behaviour related with their motivation.
Chapter 4
27
Analysis
4.1 Introduction
In this chapter, the presentation of data is systematically linked to the format of the self-
developed questionnaire attached in the appendix. The data for the research has been
collected using questionnaire. The questionnaire was distributed randomly to a sample of
employee, over 20 employees who are working in various departments, with different job
responsibilities and organization position.
This chapter will focus on the analysis and interpretation of data that was collected for this
study. The analysis and interpretation of data is carried out in two phases. The first part,
which is based on the results of the questionnaire, deals with a quantitative analysis of data.
The second, which is based on the results of the interview and focus group discussions, is a
qualitative interpretation. According to De Vos, data analysis entails that the analyst break
down data into constituent parts to obtain answers to research question and to test hypotheses.
The analysis of research data does not in its own provide the answers to research questions.
The purpose of interpreting the data is to reduce it to an intelligible and interpretable form so
that the relations of research problems can be studied and tested, and conclusions drawn. On
the other hand, when the researcher interprets the research results, he/she studies them for
their meaning and implications.
4.2 Analysis
Under this chapter, the collected data through primary sources have been represented in the
suitable formats (i.e. on tables and charts). To analyse motivation, Recruitment, Performance
evaluation, Motivating factor, Promotion criteria, Incentive and Money is enough to motivate
employees in the company.
28
4.2.1 EMPLOYEE RESPONSE ON THE CURRENT MOTIVATIONAL SYSTEM
Table No.3
SI. No. Responses Number of
respondents
Percentage of
responds
1 High 5 25%
2 Medium 13 65%
3 Low 2 10%
Total 20 100%
From the above table, it is clear that 65% employees are motivated in medium level or in
other word we can say that majority of employees not highly satisfied. Similarly 25 %
employees get the high level of motivation and 10% employees get the low level of
Motivation. We can say that majority of employee are not fully motivated in the organization.
The data in above table can be shown in the graph below:
EMPLOYEE RESPONSE ON THE CURRENT MOTIVATIONAL SYSTEM
Figure No.1
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
High Medium Low
25.00%
65.00%
10%
29
4.2.2 EMPLOYEE RESPONSE TOWARDS THE SOURCE OF RECRUITMENT
Table No. 4
SI. No. Responses Number of
respondents
Percentage of
responds
1 Internal 3 15%
2 External 13 65%
3 Both 4 20%
Total 20 100%
From the above table, it is clear that 15% or 3 respondents believe that recruitment is done
through Internal factor, 65% or 13 respondents believe that recruitment is done through
External factor and 20% or 4 respondents believe that recruitment is done through Both
(Internal and External). Therefore, it is clear that recruitment is done through external factor.
EMPLOYEE RESPONSE TOWARDS THE SOURCE OF RECRUITMENT
Figure No.2
30
4.2.3 EMPLOYEE RESPONSE TOWARDS THE PERFORMANCE EVALUATION
Table No. 5
SI. No. Responses Number of
respondents
Percentage of
responds
1 Age 0 00%
2 Experience 10 50%
3 Work done 7 35%
4 Position 3 15%
Total 20 100%
The above table shows 50% or 10 respondents given emphasis on experience, whereas, 35%
or 7 respondents given emphasis on work done and 15%or 3 respondents given emphasis on
Position. Therefore, it is clear that Performance evaluation of employee is done on the basis
of experience.
0%
10%
20%
30%
40%
50%
60%
70%
Internal External Both
15%
65%
20%
31
EMPLOYEE RESPONSE TOWARDS THE PERFORMANCE EVALUATION
Figure No. 3
4.2.4 EMPLOYEE RESPONSE TOWARDS THE FACTOR THAT WILL
MOTIVATE
Table No. 6
SI. No. Responses Number of
respondents
Percentage of
responds
1 Job Security 2 10%
2 Financial Reward 0 00%
3 Job Satisfaction 12 60%
4 Promotion 6 30%
5 Award 0 00%
Total 20 100%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Age Experience Work done Position
0%
50%
35%
15%
32
The above table shows 10% or 2 respondent motivate with job security. Whereas 60% or 12
respondents motivate with job satisfaction and 30% or 6 respondents motivate with
promotion. Therefore, it shows job satisfaction motivate the employee to work more.
EMPLOYEE RESPONSE TOWARDS FACTOR THAT WILL MOTIVATE
Figure No. 4
4.2.5 EMPLOYEE RESPONSE ON PROMOTION CRITERIA
Table No. 7
SI. No. Responses Number of
respondents
Percentage of
responds
1 Exam 13 65%
2 Interview 0 00%
3 Performance 1 5%
4 Evaluation 5 25%
5 All 1 5%
0%
10%
20%
30%
40%
50%
60%
70%
Job Security Financial
Reward
Job Satisfaction Promotion Award
10%
0%
60%
30%
0%
33
Total 20 100%
The above table shows that 65% or 13 respondents believe that promotion is done on the
basis exam, 5% or 1 respondent believe that promotion is done on the basis of performance,
25% or 5 respondents believe that promotion is done on the basis of Evaluation and 5% or 1
respondents believe that promotion is done on the basis of all criterion. Therefore it is clear
that promotion of employee is done on the basis of exam.
EMPLOYEE RESPONSE ON PROMOTION CRITERIA
Figure No. 5
4.2.6 EMPLOYEE RESPONSE ON INCENTIVE
Table No. 8
SI. No. Responses Number of
respondents
Percentage of
responds
1 Monetary Incentive 1 5%
2 Non Monetary Incentive 0 00%
3 Both of above 19 95%
0%
10%
20%
30%
40%
50%
60%
70%
Exam Interview Performance Evaluation All
65%
0%5%
25%
5%
34
4 None of above 0 00%
Total 20 100%
From the table, it is clear that 95% or 19 respondents believe that both monetary and non
monetary incentive motivates and 5% or 1 respondent believe that monetary incentive
motivates. Therefore, it shows both monetary and non monetary incentive motivates
employees.
EMPLOYEE RESPONSE ON INCENTIVE
Figure No. 6
4.2.7 EMPLOYEE RESPONSE ON MONEY IS ENOUGH TO MOTIVATE
Table No.9
SI. No. Responses Number of
respondents
Percentage of
responds
1 Yes 1 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Monetary
IncentiveNon Monetary
IncentiveBoth of above Non of above
5%0%
95%
0%
35
2 No 19 95%
Total 20 100%
From the table, it is clear that 95% or 19 respondents think that money is not enough to
motivate and 5% or 1 respondent think that money is enough to motivate. Therefore, it shows
employees are not satisfied with money.
EMPLOYEE RESPONSE ON MONEY IS ENOUGH TO MOTIVATE
Figure No. 7
4.3 Major Findings
During this survey what we found majority of employee working in Rastriya Banijya
Bank ltd are not highly satisfied. Employees were satisfied at medium level rather it
needed to be high.
Recruitment of employee is done externally.
Performance evaluation of employee is done on the basis of work experience.
Job satisfaction motivates the employee to work more.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No
5%
95%
36
Promotion of employee is done on the basis of evaluation.
Both monetary and Non-monetary incentive motivates the employee to work at their
peak.
Majority of employee are not satisfied with the money given by the company.
4.4 Conclusion
To summarize the findings of the questionnaire, the employees in Rastriya Banijya Bank are
satisfied but not in high level. They also show high work motivation. The workers of the
company are not satisfied with the current salary and fairness of the wages system compared
to the tasks they do. Also the jobs that Rastriya Banijya Bank offers to its employee are quite
satisfied with the working condition.
Chapter 5
Conclusion and Recommendation
37
5.1 Summary
Rastriya Banijya Bank Ltd was established on January 23, 1966 as a second commercial bank
of Nepal to uplift the Nepalese economy and develop the trade and commence of the country.
Besides, this it was established to liquidate the poor from the exploitation of the money
lenders. Since that period it has been playing a vital for the economic development of the
country. It is also one of the public enterprises having multipurpose objectives such as profit
earning and social service. Therefore for this purpose there should be efficient and effective
management of this bank and employees should be properly motivated.
It needs a sound organization and efficient management for the proper functioning of an
institution. The sound organization and efficient management depends upon the behaviour,
attitude and perception of the persons which are situated in different levels in the
organization. The behaviour, attitude, and perception of the persons are based on the
motivation aspects or factors. Therefore this study is concerned with the motivational aspects
of Rastriya Banijya Bank Ltd. The basic objective of this study is to find out the level of
Motivation among the employees.
Motivation increases the willingness of the workers to work, thus increasing efficiency and
effectiveness of the organization. Some Theories developed by difference human
behaviourists have been reviewed. These theories cover major aspects of human behaviour
related with their motivation. Besides this a number of research studies have also been
reviewed. These studies were carried with a view to find out the motivating factors
employees. The conclusion of these different studies help the researcher to know the
difference motivating factors as perceived by difference type of persons at different
circumstances.
This study is based on the survey of Motivation of employee in Rastriya Banijya Bank Ltd. A
questionnaire was prepared covering different areas or motivating factors. The presentation of
the collected data is shown on suitable formats (i.e. on tables and charts). To analyse
motivation, Recruitment, Performance evaluation, Motivating factor, Promotion criteria,
Incentive and Money is enough to motivate employees in the company.
5.2 Conclusion
38
The project is a study on employee motivation in Rastriya Banijya Bank Ltd is mainly
conducted to identify the motivation level of employees in the organization and the factors
which provide motivation to the employees. The study enables to find out the effectiveness and the drawback of the facilities given to the
employee in Rastriya Banijya Bank Ltd. The study analyzed that the most of employees are
satisfied with the facilities provided by the company can take more steps to improve welfare
facilities mainly company should take necessary steps to improve the environmental factors.
5.3 Recommendation
The following recommendations are made to the company based on the findings and
conclusions of this study on employee motivation and its most influencing factors, for the
purpose of enhancing the overall level of employee motivation in the company and increasing
work efficiency.
Provide more competitive wages to the "low-income" segment of the company.
Increase the possibility of employee promotion in the company by promoting from
within rather than hiring from the outside.
Encourage more frequent communication between managers and their employees and
relationship and trust between the two groups.
Put effort into ensuring that employees are properly credited and receive recognition
for the good work they do in their respective positions.
Offer more opportunities for job advancement and education, in order to allow
employees to completely master their respective positions.