a).

General background

Job satisfaction is an orientation of emotion that employees process towards the role
they are performing at the workplace (Vroom, 1964). Hoppok&Spielgler(1938)
defined job satisfaction as the integrated set of psychological, physiological and
environment conditions that encourage employees to admit that they are satisfied or
happy with their jobs. Further, the role of employees at workplace is emphasized as
there is an influence of various elements on an employee within the organization. If
the employees are not satisfied with the task assigned to them, their rights, working
conditions, co-workers, supervisor and if they are not considered in the decision
making process then this will result to feel them separate from the organization
(Clark,1997).

Job satisfaction can be defined as a pleasurable or positive emotional state that is

related to the work that individual performs the attitude of worker toward job,
rewards, social, organizational and physical characteristics of the environment in
which one performs in working activities. Furthermore, job satisfaction is a pleasant
or positive response to the individual's work. Job satisfaction stems from the
perception that an employee has about their job and what receives related with the
work that is performed and the working condition (Locke,1996).

Job satisfaction is a multi-dimensional attitude; it is made up of attitude towards pay,

promotion, relationship with co-workers, supervision, work conditions, benefits,
contingent rewards, nature of work, communication, participation, performance
evaluation system of the company etc. (Cascio,2002). Employee job satisfaction is
one of the significant aspects of organizational effectiveness (Chapagai,2011).
Generally, it is an employee general attitude toward the job. Moreover, a job
satisfaction is the extent to which a person is gratified or fulfilled by his or her work.

Job satisfaction is related with human resource management (HRM). Research has
shown time and again that HRM practices can make important and practical
differences in terms of three key organizational outcomes: productivity, quality of life
and profit (Cascio,2002). The level of job satisfaction of the employees in the
organization play vital role for the retention and attraction of the competent human
capital in the organization. A satisfied worker tends to be less absent from his or her

1
job, contribute for the benefit of the company and would like to stay in the
organization (Adhikari,2009). On the other hand, a dissatisfied worker has negative
attitudes and prefers to remain absent too often, always remains unhappy with the
supervisor, tries to leave the company once an opportunity is available, and remains in
stress (Adhikari,2009). Therefore, it is very essential for the organization to create a
job satisfied environment within it.

Employees overall feelings towards the job is influenced by job security, pay and
benefits, training and career advancement opportunities, opportunity to use skills and
knowledge, relationship with immediate co-workers, supervisors and managers,
recognition of performance, job characteristics, working environment, autonomy and
independency, participation in decision making, corporate culture etc (Locke,1976).
Job satisfaction can be an important indicator of how employees feel about their jobs
and a predictor of work behaviors such as absenteeism and turnover. It is common
that employees who are satisfied with their jobs are more likely to stay with their
employers. Keeping a cadre of happy and motivated employees, however, is often
elusive as the expectations of employees shift. As life becomes more challenging,
employees may become more stressed. Therefore, the factors long thought to satisfy
employees may be shifting, depending on attributes such as the gender and age of
employees. In addition to demographic factors, the economic landscape in which most
companies are operating is of particular interest (Jenaibi, 2010).

In the current competitive business environment, the banking companies are facing a
lot of challenges and among these issues, getting the right employees and retaining
them is one of the most important ones. In addition, today, the benefit of human
resource is measured to be one of the most important advantages of any organization;
and in order to acquire the results with the highest efficiency and effectiveness from
human resource, motivation of employee is very essential. In fact, employees will do
their highest when they feel or hope that their hard work are to be rewarded by their
managers. In this regard, many factors are available that change employees
performance such as worker and employer relationship, working conditions, job
security, training and opportunity of development, and overall rewarding policies of
the company. In addition, among the factors which impact employee job satisfaction,
motivation, as a result of rewards, is the most important aspect (Priya&Eshwar,2016).

2
The study reveals that the physical working condition also creates the dissatisfaction
towards the job. So, the lack of adequate physical infrastructures, poor working
conditions with non- existent safety procedures have posed risk to physical, metal and
overall well being of workers. The study identifies work related physical ailments and
discomforts dominate brick industries of Nepal. This study found that presence of
inferior physical environment, working conditions and practices has contributed to
musculoskeletal injuries and problems exposing working workers to risks and
hazards. Workers are required to use physical strength, carry heavy loads and remain
in a squatted posture for longer periods doing repetitive tasks posing threats to
musculoskeletal system (Joshi et al., 2013).The above discussion shows that the
studies dealing with impact of working condition, workload, job security, and salary,
supervisors, and promotions practices on Job Satisfaction are of greater significance.
Though there are these findings in the context of different countries and Nepal, no
such findings using more recent data exist in the context of Nepal. Hence this study
attempts to analyze the impact of various impact of working condition practices on
Job satisfaction in Nepalese commercial banks.

b). Statement of the problem

The banking sector has under gone structural changes in past two decades, which has
put new stress and authenticities in front of bank employees. Bank employees have
extreme work pressure and have to deliver timely service in order to meet
organizational goals and customer satisfaction. Increased use of technology and
equipment, online transactions, increased banking habits of customers; growth of
economic condition has increased more work stress and decreased in job satisfaction.
Bank employees felt plenty of problems in relation to provision of diversity of
products and services it is a cause of poor work life in bank place (Subramaniam &
Saravanan, 2012).

Proper working condition is important to banking business performance. It is

important factor in creating motivation at work place. It has two objectives, first to
increase organizational performance and second, the satisfaction of employees
(Gadon, 1984). Banking employees expect several monetary and non-monetary
benefits from the bank. The bank policy makers to identify the underlining situation
and brought them into considerations the quality of work life issue. Due to the

3
importance of this industry, it is to evaluate the working environment and its impact
on job satisfaction of employees in this sector. Because employees feel that quality of
work life is not balanced, they may leave a job and seek a better working condition
(Tabassum,2011).

In the current competitive business environment, the banking companies are facing a
lot of challenges and among these issues, getting the right employees and retaining
them is one of the most important ones. In addition, today, the benefit of human
resource is measured to be one of the most important advantages of any organization;
and in order to acquire the results with the highest efficiency and effectiveness from
human resource, motivation of employee is very essential. In fact, employees will do
their highest when they feel or hope that their hard work are to be rewarded by their
managers. In this regard, many factors are available that change employees
performance such as worker and employer relationship, working conditions, job
security, training and opportunity of development, and overall rewarding policies of
the company. In addition, among the factors which impact employee job satisfaction,
motivation, as a result of rewards, is the most important aspect (Priya&Eshwar,2016).

Working condition is associated with adequate and fair competition, safe healthy
working condition, opportunities to develop human capabilities, opportunities for
continuous growth and job security, more flexible working schedule and job
assignment, careful attention to the job workflow, better union-management co-
operations and less structural supervision (Skinner and Ivancevich,2008).

In order to identify the relationship between the working condition and job
satisfaction of employees in Nepalese commercial banks following research questions
will be derived based on the above statement.
i. What is the perception of employee on working condition, workload, job
security, salary, supervisors and promotions in the context of Nepalese
commercial banks?
ii. What is the perception of employee on job satisfaction in the context of
Nepalese commercial banks?
iii. Is there any relation of working condition and workload with job satisfaction
of Nepalese commercial banks?
iv. Are job security and salary related to job satisfaction of Nepalese commercial
banks?
4
 v. What is the impact of supervisors and promotions on job satisfaction of
Nepalese commercial banks?
vi. To what extent working condition and work load affect job satisfaction of
Nepalese commercial banks?
vii. Which independent variable contributes most to job satisfaction?

c). Purpose of the study

The main objective of the study will be to analyze the relationship between working
condition and job satisfaction of employees in Nepalese commercial banks. The
specific objectives of the study will include:

a) To analyze perception of employee regarding job satisfaction (working

condition, work load, job security, salary, promotion, supervisors) in the
context of Nepalese commercial Banks.
b) To examine the relationship between working condition and job satisfaction in
Nepalese commercial Banks.
c) To determine the impact of workload, salary and supervisors on employee job
satisfaction in Nepalese commercial Banks.
d) To find out most influencing factor on employee job satisfaction of Nepalese
commercial Banks.

d). Significance of the study

This study will be the first attempt to explore the working condition in commercial
banks of Nepal and its impact on job satisfaction to the employees. This study will
hoped to flourish academicians or students of research or any other field where an
individual is willing to do the extensive study to get relevant information about
working condition and its impact on job satisfaction among the employees in
commercial banks of Nepal. When work becomes interesting, workers get pleasure
from work.

The reason underlying job dissatisfaction vary some employees are board in their
current position or they believe the company is not utilizing their talent other
employees are dissatisfied due to overall working condition or poor relationship with
their supervisor. Depending on circumstances, promotion can be in workable situation

5
for improving job satisfaction (Naveed et.al,2011). More specially, the personal
pleasure that a worker get from a job of his choice gives him tremendous
psychological satisfaction. Working condition is an important role to make employees
job satisfaction as well as organizational effectiveness. It is a critical variable which
effects the employee’s management and whole organization as well as other variables
like profit. Employees are the pillar of organization and their strength is job
satisfaction. Job satisfaction is the psychological factor of employees which is
continuously changing according to time. Yousef (1998) the relationship between
satisfaction with job security, and both organizational commitment and job
performance vary across national cultures. Working under intense time pressure has
been shown to cause stress and job dissatisfaction as well as burnout (Mustapha &
Ghee, 2013). Saleem et al.( 2010)carried out work motivation on job satisfaction in
mobile telecommunication service organizations of Pakistan. The employees in the
telecom organizations were quite satisfied by working condition at their jobs. Most of
the employees will look for payment systems that believed to be fair, definite and
aligned with their expectations. Satisfaction is expected to be achieved if the payment
seems to be equitable, equal with job demands, individual skill level and community
payment standards (Robbins et al. 2003).

The study will be helpful for policy makers and organizations who want to improve
their employee’s performance by satisfying them. It will also contribute to develop
sound working environment. This study will also encourage conducting similar study
including other components of working condition resulting in job satisfaction among
employees.

e). Operational definitions, hypothesis and assumptions

An operational definition is the functional definition defines something (e.g.

Variables, terms or objects) in terms of specific process or set of validation tests used
to determine its presence and quality.

Salary
Taylor and West (1992) figured out that job satisfaction is affected by the payment
levels. It is reported that most public employees will feel less satisfy with their jobs if
they compare their salaries to those who work for the private sector. Robbins et al.

6
(2003) examined that most employees will look for payment systems that believed to
be fair, definite, and aligned with their expectations. Satisfaction is expected to be
achieved if the payment seems to be equitable, equal with job demands, individual
skill level and community payment standards. Higher the qualification and experience
higher should be the salary level. Management should determine the salary on the
basis of post and job performance. The company should share certain percentage of
profit they earn on regular basis (Absar et.al, 2010).

The results showed that compensation was ranked as the number one job element for
job satisfaction and increase in salary for performance was ranked as the number one
job element for motivation. Compensation is very valuable tool for retention and
turnover. It is also a motivator for an employee in commitment with the organization
which in result enhances attraction and retention (Zobal, 1998; Moncarz et. al. 2009;
Chiu et. al.). Based on this, the study will develop following hypothesis:

H1: There is a positive relationship between financial reward (salary) and job
satisfaction performance.

Working condition
The factors that affect work satisfaction can be discussed as “individual” and
“organizational” The personnel’s personal characteristics, genetic inclination, family,
the education they have received, value judgments, work experience, the social
structure,working environment play important roles in work satisfaction
(Groenewegen & Hutten, 1991).

Bakotic & Babic(2013) found that for the workers who work under difficult working
conditions, working condition is an important factor for job satisfaction, so workers
under difficult working conditions are dissatisfied through this factor. To improve
satisfaction of employees working under difficult working conditions, it is necessary
for the management to improve the working conditions. This will make them equally
satisfied with those who work under normal working condition and in return overall
performance will increase. Raziq& Maulabakhsha (2015) indicated a positive and
significant relationship between working environment and employee job satisfaction.

There are two main elements which are the office layout plan and also the office
comfort (Amir,2010). Amir(2010) also stated that a physical workplace is an area in

7
an organization that is being arranged so that the goal of the company could be
achieved. Masood (2014) found significant positive relationship between working
conditions and employees’ job performance. Based on this, the study will develop
following hypothesis:
H2: There is positive relation between physical working condition of organization
and job satisfaction.

Work load
Workload is defined as demands assigned on the employee by the job, the amount of
work to be done, especially by a particular person in a limited period of time.
Excessive job demands can often lead to job dissatisfaction, stress, and burnout all of
which can influence retention. Workload is often studied in two different ways. One
way is qualitative workload, which refers to the difficulty of job tasks either physical
or mental. Job stress becomes an important agenda for managers and management
scholars now a days and it will remain in future. Organizational Stress is receiving
increasing attention in the academic literature and has become a salient issue for the
organizations.

Bakotic & Babic(2013) found that for the workers who work under difficult working
conditions, working condition is an important factor for job satisfaction, so workers
under difficult working conditions are dissatisfied through this factor. To improve
satisfaction of employees working under difficult working conditions, it is necessary
for the management to improve the working conditions. This will make them equally
satisfied with those who work under normal working condition and in return overall
performance will increase. Raziq& Maulabakhsha (2015) indicated a positive and
significant relationship between working environment and employee job satisfaction.

The results showed that personnel workload was not excessively high, but that work
satisfaction was low. The job satisfaction and the workload of the working personnel
have direct effects on the guests in the establishments. For this reason, establishments
should take the necessary measures to develop and encourage positive attitudes in the
personnel towards their jobs (Sahin&Sahingoz,2013). Based on this, the study will
develop following hypothesis:
H3: There is negative relationship between workload and job satisfaction of
employees.

8
Promotion
Promotion can be reciprocated as a significant achievement in a life. It promises and
delivers more pay, responsibility, authority, independence, status. Thus, opportunity
for promotion determines the degree of satisfaction to the employees. The employee’s
promotion highly depends upon tenure, qualification of employees and how
employees performs job assigned to them. Promoting employees to increase job
satisfaction can be tricky unless there is justification that promotion will actually
resolve issue pertaining to job satisfaction. The reason underlying job dissatisfaction
vary some employees are board in their current position or they believe the company
is not utilizing their talent other employees are dissatisfied due to overall working
condition or poor relationship with their supervisor. Depending on circumstances,
promotion can be in workable situation for improving job satisfaction (Naveed et.al,
2011).

Employees who are dissatisfied with the opportunity available for promotion show a
greater intention to leave the organization (Shields & Ward, 2001). Pergamit&Veum
(1989) found that greater the chances of promotion higher will be the job satisfaction
of employees. Apart from employee’s satisfaction in job, promotion cab be one of the
factors that an employee can see as an aspect of job satisfaction. When employees
perceive that there are golden chances for promotion they feel satisfied for the
respective place in the organization (De Souza, 2002). Based on these statements the
following hypothesis will be formulated.
H4: There is positive relationship between promotion and job satisfaction of
employees.

Job security
Job as a unit of analysis best expresses the notion of fulfilling survival needs via the
income that a job generates, whereas insecurity over loss of valued job features is
more akin to fulfilling human wants. Both insecurities may have great importance to
individuals, but the job (loss) has primacy in the context of survival. Job insecurity as
an individual level perception specific to job loss and define it as the perceived
stability and continuance of one’s employment with an organization. Job insecurity
presents an indirect problem for organizations. Employees do so by summoning
resources to do both their tasks and to respond to their perceived job threat. The added

9
burden of job is anxiety provoking to employees; decreases job satisfaction, and
ultimately represent a distraction that may negatively affect performance and
organizational productivity (Reisel et al, 2010).

Job security is one of the implications of security. In job security, there are issues
such as job changes, missing the job and non achieving proper jobs. According to
industrial and organizational psychologists, job security is one of the creators of job
satisfaction and commitment (Thomas et al., 2006). Job satisfaction is individual’s
overall attitude on his/her job (Robbins, 1999). According to Smith, Kendall and
Hullin, there are five job traits which show remarkable characteristics of a job
including job satisfaction, satisfaction from superior, satisfaction from colleagues,
satisfaction from promotion and satisfaction from wage/salary (Hosseinzadeh &
Saemian, 2002).

Katuwal and Randhawa (2007) reveal that the textile workers in Nepal have a high
dissatisfaction with the facets of the job that involve the monetary expenditure of the
organization, the behavioral aspects of management and the employment policy of the
organization. Yousef (1998) indicate that satisfaction with job security is positively
correlated with both organizational commitment and job performance. Furthermore,
employees’ age, educational level, job level, monthly income, marital status, tenure in
present job, tenure in present organization and an organization’s activity contribute
significantly to the variations in satisfaction with job security among employees.
Based on this, the study will develop following hypothesis:
H5: There is positive relationship between job security and job satisfaction of
employees.

Supervisory understanding and communication

All areas of social interactions, keep people together, and help to perfect
organizational communication. Similarly, communication satisfaction results the
effective organizational communication in organizations and effective communication
is a major part of supervisor’s strategy for success. It facilitates supervisors to share
data and information with subordinates in smooth and trust relationship. Likewise,
communication satisfaction enables supervisors to facilitate strong and mutual
relationship with subordinates effectively. Generally it builds and improves
confidence between them as well as strengthens trust and stewardship. It is
10
indisputable that all supervisors call for effective communication to ensure
subordinates participation in decision making, by means of providing essential
information. More over subordinate’s efficiency of decision making is improved
based on healthy communication (Alsayed et al. 2012).

Employee job satisfaction have positively affected by supervisors’ support and

recognition of employees (Yang et al., 2011).Since the supervisors are representative
for the institution, if they are supportive and helpful, employees perceive the
organization as the same (Emhan et al., 2014). Saeed et al. (2013) found that there is a
positive relationship between the manager’s attitude and employee’s job satisfaction.

The results indicated that significant differences exists between employees of

Public Sector and Private Sector Banks of Kurukshetra regarding various aspects
of job satisfaction, pay and fringe benefits, supervision, training and development
(Devi and Suneja, 2013).The immediate supervisor support is very important in
organizational change. Although the support of supervisor is not very crucial in
satisfaction but it has positive impact on satisfaction (Griffin, Patterson and West,
2001). According to Chakrabarty, Oubre, and Brown (2008), “perhaps the finest way
in which supervisors can portray himself as a role model is to personally demonstrate
proper techniques so that employee could understand how job should be done.” Politis
(2001) found that the leadership styles that involve human interaction and encourage
participative decision-making are related positively to the skills and essential
knowledge acquisition. Based on this, the study will develop following hypothesis:
H6: There is positive relationship between supervisory understanding and
communication in employee’s job satisfaction.

f). Organization of the study

The study will be organized into five chapters. Chapter one will contains general
background of the study, statement of the research problem and objectives and scope
of the study. The chapter will signify the rational of this study. Chapter two will
devoted to theoretical foundation of working condition and its impact on job
satisfaction among the employees of commercial banks including hypothesis
development, and review of empirical works. Chapter three will consists of
methodological approach employed of the study. Particularly, this chapter will focus
on nature and sources of data, sampling techniques, survey method, econometric

11
modeling, description of variables, the proxies of those variables, and methodological
limitations of the study. This chapter will be important in case of empirical study
because the consistencies of the findings are solely based on empirical methodology it
has employed. Chapter four will consists of presentation and analysis of data with
different financial and statistical tools. An analysis of survey of the respondents’
opinion on various aspects of job satisfactions will also presented. Chapter five will
consists of the summary and major findings of this study and recommendation for
further research.

g). Review of literature

The purpose of this section is to present a review of literature related to the current
study, in order to provide background information and justification for the study
framework. This section will give the clear understanding about the studies that have
been carried out previously in the context of both the developed and underdeveloped
countries. This section will provide conceptual framework of study and deals with the
review of empirical studies associated with the working condition and job satisfaction
of employees in Nepalese commercial Bank. A literature review is a critical analysis
of a segment of a published body of knowledge through summary, classification and
comparison of prior studies, review of literature and theoretical studies. A literature
review is a text of a scholarly paper, which includes the current knowledge including
substantive findings as well as theoretical and methodological contributions to a
particular topic.

Review of literature section presents the thorough review of literature on relationship

between working condition and job satisfaction taken from different studies. A
literature review is a concise overview of what has been studied, argued and
established about a topic. It is a text of a scholarly paper, which includes the current
knowledge including substantive findings, as well as theoretical and methodological
contributions to a particular topic. It is the act of analyzing as well as critically finding
the similarities and difficulties in the previous related studies. It also entails about the
major findings as well as reviewing the tools and techniques used by the previous
studies. It is believed that the review of literature is helpful to show the needs of the
research work and to justify the work. The available empirical literature is surveyed
into three categories that are review of major literatures, review of recent literatures,

12
and review done in the context of Nepal associated with working condition and job
satisfaction. The review literature has been organized as under:

i. Review of major literature

ii. Review of recent literature

iii. Review of Nepalese studies

i. Review of major studies

There were various studies that were carried out on working condition and its impact
on job satisfaction of employee in various organizations. The major literature review
related to the working condition, job satisfaction of employee is shown in Table 1.

Table-1: Review of major literature

Study Major findings
Harris (1989) Some successful elements on employee’s performance include
work conditions, the connection between employee and
employer, process of training and improvement opportunities,
job security and complete policies of firm rewarding motivation,
as the result of rewarding, affects the staff’s behavior and their
performance directly.

Groenewegen & The personnel’s personal characteristics, genetic inclination,

Hutten (1991) family, the education they have received, value judgments, work
experience, the social structure he/she lives in and environment
play important roles in work satisfaction.
Locke (1996) Job satisfaction as a pleasurable or positive emotional state that
is related to the work that individual performs, the attitude of
worker toward his job, rewards which he/she gets, social,
organizational and physical characteristics of the environment
Marchand et al.( In the workplace, job insecurity and social support are important
2005) determinants, but greater decision authority increases the risk of
psychological distress. Workplace constraints-resources are not
moderated either by the other structures of daily life or by agent
personality.

13
Noorhead&Griffin The result showed that the employee needs compensation,
(1999) developmental opportunities for the job satisfaction.

Srivastava (2008) Participants who perceived their work environment as to be

adequate and favorable scored comparatively higher on the
measure of job satisfaction, performance and perceived
organizational effectiveness.

ii. Review of recent studies

The review of recent studies is summarized in Table 2. This section will deal with the
review of recent studies on working condition and its impact on job satisfaction of
employees in various organizations.

Table-2: Review of recent literature

Study Major findings

Chan et al. (2010) Supervisor supportive behavior has been found to be related
to employee job satisfaction
Saleemet al. (2010) The study shows that there is positive relationship between
the job satisfaction and independent variables such as
working condition and nature of work but not a strong
relationship
Reiselet al. (2010) Job insecurity as a perceptual phenomenon that varies in
intensity even when employees are confronted by identical
job threats was negatively related to job satisfaction.
Naavedet al (2011) The study shows that change in promotion will changes in
job satisfaction in a positive direction and a moderate and
positive relationship between promotion and job
satisfaction. The employees perceive management to be
supportive in climbing up their professional ladder.
Shafiq & Ramzan The regression analysis showed that income and gender are
(2012) significant predictors of job satisfaction.

14
Rast & Tourani (2012) Findings suggested that employees were moderately
satisfied with their job and there was no significant
difference between male and female employees’ job
satisfaction.
Aktar et al.(2012) The study showed positive relationship between rewards
and employees; performance.

Sahin & The job satisfaction and the workload of the working
Sahingoz(2013) personnel have direct effects on the guests in the
establishments. Establishments should take the necessary
measures to develop and encourage positive attitudes in the
personnel towards their jobs.

iii. Review of Nepalese studies

The review of Nepalese studies is summarized in Table 3. This section will deal with
the review of Nepalese studies on working condition and its impact on job satisfaction
of employees in various organizations.

Table-3: Review of Nepalese studies

Study Major findings

Baniya (2006) The study revealed that cooperation and coordination between
management and employee is crucial for effective and efficient
functioning of an organization.

Katuwal and Reveal that the textile workers in Nepal have a high
Randhawa dissatisfaction with the facets of the job that involve the monetary
(2007) expenditure of the organization, the behavioral aspects of
management and the employment policy of the organization.

Adhikari & The empirical result showed that level of salary and wages is one
Gautam(2010) of the most dissatisfying and de-motivating factors for Nepalese
employees.

15
Chapagain There is positive relationship between employee participation and
(2011) job satisfaction in Nepalese banks. The findings reveal that
employee participation is an important determinant of job
satisfaction. Increased employee participation makes a positive
effect on job satisfaction of Nepalese banking employees.
Chaulagain and Job satisfaction has a strong correlation with job performance, it
Khadka (2012) is necessary to strengthen relevant human resources polices,
improving working conditions and compensation.
Maharjan (2012) The result indicated there is a positive and significant impact of
motivation on employee performance

Shrestha et al. Study shows that male employees, employees below the age of
(2013) 30, undergraduate employees and assistant level employees are
dissatisfied with their present job position in the banks, and the
pay package offered by the banks.

h). Conceptual framework

Conceptual framework is the theoretical structure of assumptions, principles, and

rules that holds together the ideas comprising a broad concept. It can act like a map
that give coherence to empirical inquiry as the conceptual framework are potentially
so close to empirical inquiry, take different forms depending upon the research
question or problem.

The major literatures have highlighted some key issues on working condition
practices and its impact on employee job satisfaction in Nepalese commercial bank.
This study has taken job satisfaction as dependent variables whereas working
condition, workload, job security, salary, supervisors, and promotions are taken as
independent variable. Based on these, the relationship between job satisfaction and its
determinants are constructed to form the study framework. Thus, conceptual
framework is presented in Figure 1.

16
Figure 1: Schematic representation of relationship between working condition and
job satisfaction of Nepalese commercial banks
This figure shows the theoretical framework of the study. Physical working condition,
workload, job security, salary, supervisors and promotion denote independent
variables. Dependent variable is job satisfaction. All these independent variables are
expected to influence the dependent variables.

Figure-1: Schematic diagram of impact of working condition on job satisfaction

Physical working

Workload

Job security Job Satisfaction

Salary Job satisfactions

Supervisors

Promotions

Independent variables Dependent variable

The above conceptual framework shows the different variables to link working
condition practices and job satisfaction in Nepalese commercial bank. The study helps
to examine the relationship between dependent variable and independent variable.

i). Concluding remarks

A conceptual framework is an analytical tool with several variations and contexts. It is

used to make conceptual distinctions and organize ideas. It is a theoretical structure of
assumptions, principles and rules holds together the ideas comprising a broad concept.
This consists of concepts that are placed within a logical and sequential design which
is based on specific concepts and propositions, derived from empirical observation
and intuition. This study focuses on examining the relationship between working
condition and job satisfaction of commercial banks operating in Nepal. The
conceptual framework in this study will consist of one dependent variable along with

17
the six independent variables which are to be tested through the statistical tools. Based
on the literature, conceptual framework has been framed as in figure 1.

The empirical results found in the other country cannot be generalized in the context
of Nepal. A study on Nepalese banks’ working condition may be helpful in improving
job satisfaction and determining management plan to help in increasing the chance for
the banks to survive in competitive markets. Furthermore, this study will be important
guidance towards enhancing the economy since banks do contribute to economic
growth and stability. Bakotic and Babic, (2013) found that the satisfaction with
working conditions is higher in the case of workers who work in the administration
than in the case of workers who work in difficult working conditions. And finally, it is
discovered that in the case of workers who work under difficult working conditions,
the working conditions are important factor of their overall job satisfaction (Bakotic
and Babic 2013).

The above studies revealed that employees’ satisfaction is the major indicator for
predicting banks performance. But there is no any uniformity is the findings of the
precious studies. The empirical results found in the other country cannot be
generalized in the context of Nepal. This study is all about level of employees'
satisfaction. In the context of Nepal some effort has been made to examine some of
the issues associated with the relationship between working condition and employees’
satisfaction. Still there are no any empirical studies that consider the both the working
condition and employees’ satisfaction using both the primary as well as secondary
data. There is need to conduct research to understand the level of employees’
satisfaction in the different banks and the key determinants of banks’ performance in
the context of Nepal. Job satisfaction and its determinants in Nepalese banks have
emerged as a new research area in the present context of Nepal.

j). Research Methodology

Research methodology sets out overall plan associated with a study. It provides a
basic framework on which the study is based. Before presenting the analysis and
interpretation of data, it is necessary that research methodology be described first.
This presents all the necessary steps to be followed throughout this research work in
order to achieve and accomplish the objectives of the study. Research methodology

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discussed in this section helps to guide the research study providing different issues
and aspects. This section will explains the methodology that is employed in this study
which includes nature and sources of data, sample selection and classification of
variables, validity and reliability test, techniques and steps adopted in interpreting and
analyzing the data. Specially, this provides the overall plan for the collection, analysis
and presentation of data required to fulfill the objectives of the study.

k). Research plan and design

This study will based upon descriptive research design and causal comparative
research design to deal with issues associated with the working condition and its
impact on employee job satisfaction of commercial banks in context of Nepal. This
study adopts descriptive research design for fact-finding and searching adequate
information about factors affecting employees’ job satisfaction and working
condition.

This study will also base on causal comparative design that helps to investigate the
possible causes and effect relationship between various dependent and the
independent variables. The casual comparative research design has been used in order
to determine the effect of working condition, workload, job security, salary,
supervisory understanding and communication and promotion on employees on job
satisfaction.

l). Description of sample

The study will include 20 commercial banks within Kailali District. Total number of
observation for the study will consists of 200 respondents for analyzing the
relationship between working condition and job satisfaction of employee. For the
selection of the sample respondent, convenience sampling will be used.

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Table-4: Number of banks selected for the study along with number of
observations

S.N Types of the Total Name of the banks Number of

banks observations
Nepal Bank Limited 10
A Public banks Rastriya Banijya Bank 10
3 Agriculture Development Bank 10
Nabil Bank Limited 10
Himalayan Bank Limited 10
B Joint venture Nepal SBI Bank Limited 10
banks 5 Nepal Bangladesh Bank Limited 10
Everest Bank Limited 10
Nepal Investment Bank Limited 10
Bank of Kathmandu Limited 10
Megha Bank Limited 10
Siddhartha Bank 10
Laxmi Bank Limited 10
Global IME Bank Limited 10
Prabhu Bank Limited 10
C Private banks 12 NMB Bank Limited 10
Sanima Bank Limited 10
NCC Bank Limited 10
NIC Asia Bank 10
Machhapuchrae bank ltd 10
Total 20 200

Thus, the study is based on 200 observations.

m). Instrumentation and tools

This study will base on primary data. The primary sources of data are used for the
qualitative research. The instrument for data collection will via questionnaire method.
Self-administered survey questionnaire will be used as the main primary data
gathering instrument to assess the opinion of employees regarding the relationship

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between working condition and job satisfaction of employee in Nepalese commercial
bank. The questionnaire will contain the respondent personal detail and the Likert
scale questions.

The questionnaire will be designed to collect various information regarding working

condition and its impact on job satisfaction. First part of the questionnaire will deal
with the demographic information such as age, education, designation, gender.
Similarly, second part of questionnaire will be designed to analyze the relationship
between working condition and job satisfaction of employee. There will be five
statements that characterized each factor that affects job satisfaction and employee
motivation. Each statement will be measured on Likert scale where, 1= strongly
disagree and 5= strongly agree used to measure the perception of the respondents
about that statement.

The study will use various tools such as statistical package for the social
sciences SPSS and Microsoft Excel for analyzing the data. These tools will help to
use few statistical techniques such as Cronbach’s alpha, mean, standard deviation,
Pearson’s correlation. Cronbach’s alpha will be used to analyze the reliability and
validity of the data. Different statistical tools such as mean, correlation and regression
will be used for the analysis.

n). Data collection procedure

This study will be designed to understand the opinions of the respondents regarding
relationship between working condition and job satisfaction of employee in Nepalese
commercial bank. The data will be collected from employees of the selected twenty
commercial bank of Nepal. Structured questionnaire will be handed to each sampled
company’s employee by visiting to the respective branches and head offices.
Employees will be humbly requested to provide the degree of agreement and
disagreement in the five-point likert scale questions ranging from (1 - strongly agree
to 5 – strongly disagree). A single follow-up will be done approximately two-weeks
after initial delivery. The questionnaire used in the study will be presented in the
appendix.

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o). Analysis plan

This section will give a presentation on how the empirical data will be used for
research purpose to study on relationship between working condition and job
satisfaction of employee in Nepalese commercial bank First, all data will be collected
through questionnaire and then it will be organized. After gathering all the completed
questionnaires from the respondents, for the analysis and interpretation of the data;
Statistical Package of Social Science (SPSS) computer software and Microsoft Excel
will be used. Total responses collected from the respondent will coded and tabulated
into SPSS worksheet. Depending upon the nature of the question such as Likert scale,
the coding will be followed as per the rule. After the analysis and interpretation of the
responses, the results will be presented. Thus, its reliability and validity test will be
conducted as per the research study by using Cronbach’s alpha.

The questionnaires will been set up according to the five point Likert scale in which
respondent will asked to express to what extent respondent agree or disagree about the
relationship between working condition and job satisfaction of employee and the
coding was followed as per the rule. The questionnaire will include personal
information about respondents such as gender, academic qualification, designation
and work experience.

The final part of data analysis will describe regression analysis of primary data. In
order to derive the results various tools will be used such as frequencies, descriptive
statistics for mean values along with statistical test of significance such as regression
analysis, t-test, F-test and adjusted R².

p). Model specification

Following econometrics model equation will be employed to test different hypothesis

that there is positive relationship between working condition and job satisfaction of
employees in Nepalese commercial banks. The physical working condition, work
load, job security, salary, supervision and promotion will work as proxy for job
satisfaction of employees.

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Model: Job satisfaction will be dependent variable and working condition will be
independent variable
JS= β0 + β1WC+ β2 WL+ β3JS+ β4 SA+ β5 SU + β6 PR+ e
Where,
JoS= Job satisfaction,
WC= Physical working condition,
WL= Work load,
JS= Job security,
SA= Salary,
SU= Supervisors,
PR= Promotion,
β0 = Intercept of the dependent variable
e= error term and
β1, β2, β3, β4, β5 and β6 are the beta coefficients of the explanatory variables to be
estimated.

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