Motivation Analysis: A Comparative Study of SBI and ICICI Banks

CHAPTER IV Motivation Analysis: A Comparative Study of SBI and ICICI Banks This chapter presents the analysis of employee perceived motivation and respondents profile. It also presents the results of anova and t test performed between motivation and respondents profile. Analysis of Motivation and Respondents Profile 4.1. Gender Distribution Since the days when women first began entering the work force scholars have studied perceived gender differences related to motivation in organizational settings. From the vantage point of the early 21st century, women have entered the workforce in large numbers. Although women have begun to attain leadership positions in government and middle management levels in business, those who reach top positions represent a very small portion of the population. Eagly, Karau, Miner, and Johnson (1994) conducted a meta-analysis of the motivation to manage issue that spanned 30 years. Their study compared male and female motivation to manage research that used the Miner Sentence Completion Scale as it related to gender in hierarchic organizations. The study emphasized that it is critical to understand the hierarchy of traditional business organization and the power that administrators have over subordinates. Since the top administrative positions are predominately male, managerial roles have traditionally been defined from a masculine viewpoint. Eagly et al. (1994) pointed out that a masculine-oriented managerial role description was a barrier to females wanting to assume such a role. He alluded to several other theorists, including Bass (as cited in Eagly et al., 1994), who expressed concern that women would encounter role conflicts. Heilman (as cited in Eagly et al., 1994) stated that a lack of fit would be perceived to exist between women s attributes and the requirements of the managerial role. Motivation continued to be considered a key to attaining management levels Alderfer (1969). Researchers are still studying whether there are gender differences in motivation; hence an attempt has been made to study difference in motivation due to gender. 149

Table No 4.1. Gender Distribution Banks Gender SBI ICICI Total Male 106 71 177 70.7% 47.3% 59.0% Female 44 79 123 Source: Survey 29.3% 52.7% 41.0% Total 150 150 300 100.0% 100.0% 100.0% The above analysis shows that 70.7 percent and 29.3 percent of the respondents were male and female in SBI bank. The respondents in ICICI bank comprise more of female with 52.7 percent and male 47.3 percent. The study has been administered by considering both the genders to be important. 4.2. Age Distribution Research on age and motivation is limited and conceptually ambiguous. Results of literature review indicate that most age-related factors can have a negative impact on the work motivation of older age employees. However, earlier research Paynter (2004), Rhodes (1983) has also found a positive relation between age and work motivation. Furthermore, numerous factors intervene in the relation between the different conceptualizations of age and work motivation. Consequently, the present study wants to address age-related factors influencing the work motivation of bank employees. Age of Respondents Table No 4.2. Age Distribution SBI Banks ICICI Total Upto 25 years 15 35 50 10.0% 23.3% 16.7% 26 to 35 years 38 73 111 25.3% 48.7% 37.0% 36 to 45 years 52 39 91 34.7% 26.0% 30.3% 150

46 Years and above 45 3 48 30.0% 2.0% 16.0% Total 150 150 300 Source: Survey 100.0% 100.0% 100.0% Mean 35.7967 Mode 29.00 Std. Deviation 9.36059 Minimum 20.00 Maximum 58.00 Findings showed that of all respondents in SBI, more than 34.7 percent were aged between 36 45yrs followed by the age groups of above 46 yrs and 26 35yrs which accounted for 30 percent and 25.3 percent respectively. At ICICI bank 48.7 percent respondents were in the age group of 26 35yrs followed by 36 45yrs and below 25yrs which accounted for 26 percent and 23.3 percent respectively. Interestingly only 2 percent of the respondents were in the age group of above 46yrs, this might be due to issues relating to stress and job security. Whereas at SBI above 46yrs accounted for 30 percent this situation might be due to promotions and other benefits of superannuation. The young respondents aged below 25yrs were 10 percent at SBI and at ICICI were 23.3 percent. This can be due to most of the public sector banks have certain selection formalities which restricts the entry level of the candidates where as at private banks the situation is different. The mean age of employees is 35.7967 and S.D is 9.36059. Most of the sample employees are in the age of 29 years, the minimum age being 20 yrs and maximum being 58 yrs. 151

4.3. Job Experience Work Tenure provides job a financial security, as well as the ability to take risks in one's job. Studies showed that job experience may influence behavioral outcomes indirectly by affecting goal level and goal commitment, as well as work motivation. Longer the tenure of working higher the confidence and motivational levels of individuals. Table No 4.3. Job Experience Job Experience Banks Total SBI ICICI 1yr--5 yrs 21 58 79 14.0% 38.7% 26.3% 6yrs--10yrs 13 46 59 8.7% 30.7% 19.7% 11yrs--15yrs 36 32 68 24.0% 21.3% 22.7% 16yrs--20yrs 27 10 37 18.0% 6.7% 12.3% 21yrs--25yrs 20 4 24 13.3% 2.7% 8.0% Above 26yrs 33 0 33 22.0%.0% 11.0% Total 150 150 300 Source: Survey 100.0% 100.0% 100.0% Mean 12.7400 Mode 12.00 Std. Deviation 8.90290 Minimum 1.00 Maximum 38.00 152

Experience wise the statistics show that at SBI 24 percent of the respondents are having experience between 11 15yrs. At ICICI bank 38.7 percent, 30.7 percent and 21.3 percent were the number of respondents having work experience between 1 5yrs, 6 10yrs and 11 15yrs respectively. The study finds that nearly 90 percent of the samples at ICICI are having experience from 1---15yrs. This trend can be due to quick promotions and performance based incentives which motivate the employees stay in the organization for a longer period. The mean and SD are 12.7400, 8.90290. The mode is 12 which indicate that most of the sample respondents have 12 yrs of job experience. The minimum and maximum job experience is 1 yr and 38 yrs. 4.4. Educational Background A person can enhance his/her social and economic status through education. Higher levels of education are generally expected to have a broader outlook and so are their attitudes, values, perceptions and motivations. Table No 4.4. Educational Background Banks Total Education SBI ICICI Graduate 90 44 134 60.0% 29.3% 44.7% Post Graduate 57 86 143 38.0% 57.3% 47.7% Professional 3 20 23 2.0% 13.3% 7.7% Total 150 150 300 Source: Survey 100.0% 100.0% 100.0% Education wise the study finds that 60 percent and 29.3 percent of the respondents are graduates followed by 38 percent and 57.3 percent post graduates at SBI and ICICI banks. Professionals account for 2 percent and 13.3 percent respectively. 153

4.5. Designation The type of employment and the job characteristics inherent to the job also have an impact on work motivation. Studies show that motivation levels of employees can significantly go up or down with change in their official designations. Looking at it relatively, how important are designations when placed against other factors like pay package, relationships with peers, overall work responsibilities, etc. in modern day organizations. According to Debasis Chatterji, CEO, Netxcell most service sectors such as telecom, banking, hospitality, retail, etc. has a lot of people working in areas where they directly have to deal with customers or clients at such times if the designation is attractive as it instills confidence in the individual and equips him/her to handle the situation with confidence. No wonder workplaces today are coming up with interesting roles like chief executive officer, executive operations so on. Also with designation there is a certain level of authority that is given and the individual feels elated to work with that kind of authority. The following table presents the designations of sample employees at SBI and ICICI. Table No 4.5. Designation Designation Banks Total SBI ICICI within bank Manager 28 39 67 18.7% 26% 22.3% Assistant Manager 48 28 76 32% 18.7% 25.3% Clerk 63 63 126 42% 42% 42% Chief Manager 3 15 18 2% 10% 6% Assistant General Manager 2 5 7 1.3% 3.3% 2.3% Deputy Manager 6 0 6 4% 0% 2% Total 150 150 300 100% 100% 100 Source: Survey The analysis finds that 18.7 percent of the respondents are managers at SBI banks followed by assistant managers and clerks with 32 and 42 percent respectively. 2 percent are chief managers. 154

The study finds that at ICICI 26 percent and 18.7 percent of the respondents are managers and assistant managers and 42 percent are clerks, 10 percent of the sample are chief managers The respondent designations are different as career planning is based on the employee performance. 4.6. Income Distribution Employees are most valuable assets of any organization. They are motivated in many different ways, such as by recognition, promotional opportunities, and by money. Money has been recognized as a chief source of satisfying the needs of people. Money not only satisfies psychological needs but also the security and social needs. Every employee want to earn fair wages and salaries, and employers want their workers to feel that is what they are getting. To that end, it is logical that employees and employers alike view money as the fundamental incentive for satisfactory job performance. The use of monetary or other financial incentives in the classic work performance paradigm is based primarily on reinforcement theory. Reinforcement theory focuses on the relationship between a target behavior like work performance and its consequences on pay. The following table depicts the annual salaries of sample employees in banks. Table No 4.6. Income Distributions Banks Total Annual Salary SBI ICICI bank Upto Rs 3 lakhs 18 27 45 12% 18% 15% Rs 3 lakhs to Rs 6 lakhs 118 40 158 78.7% 26.6% 52.7% Rs 6 lakhs to Rs 9 lakhs 14 31 45 9.3% 20.7% 15% Rs 9 lakhs to Rs 12 lakhs 0 15 15 0 10% 5% Above Rs 12 lakhs 0 37 37 0 24.7% 12.3% Total 150 150 300 100% 100% 100% Source: Survey 155

Mean 6.3429 Mode 4.00 Std. Deviation 4.15490 Minimum 1.12 Maximum 20.00 An interesting finding of the study is that SBI bank has no respondent having annual salary above 9 lakhs, whereas 10 percent and 24.6 percent of the respondents of ICICI bank have annual salary between 9 12 lakhs and above 12 lakhs (10 +37 repondents). 78.7 percent of the respondents at SBI have annual salary between 3-6 lakhs followed by 12 percent and 9.3 percent drawing salary below 3 lakhs and 6 9 lakhs respectively. Respondents at ICICI drawing annual salary between 3---6 lakhs and 6---9lakhs is 26.6 percent and 20.7 percent and below 3 lakhs is 18 percent. The reason for drawing more salary might be due to performance and promotions which are based on quantity and quality of work they perform. The mean and SD are 6.3429 and 4.15490. The mode is 4. The minimum and maximum annual salary drawn by sample employee is Rs 112000 and Rs 2000000. 4.7. Job Security Job motivation and job security are issues both of which are related to working. Motivation factors do change though as the economy goes up or down. During these tough times, job security is a major concern for employees. They have to try their best, even when job security is uncertain, for the sake of keeping self-esteem intact and knowing they are doing the best job possible. It is observed that job security is one of the most effective factors on job motivation due to its eliminating employee s future anxiety. Job security, which is crucial for an employee in terms of keeping his or her job or finding a new job, is also important for the employers since it enables them to keep their employees or find new ones. The following table depicts the job security of employees at SBI and ICICI. 156

Table No 4.7. Job Security Banks Total Job Security SBI ICICI Uncertain 0 150 150.0% 100.0% 50.0% Certain 150 0 150 100.0%.0% 50.0% Total 150 150 300 Source: Survey 100.0% 100.0% 100.0% The study finds that Job security is certain at SBI and uncertain at ICICI banks. 4.8. Shifts Work that is scheduled outside normal daylight hours (i.e. 9 am to 5 pm) is called Shift work. Shift work schedules can vary from one workplace to another. Workers may rotate through shifts or remain on a single shift (i.e. permanent nights). The modern expectation of a regular work schedule is a 45-hr workweek, 8-hrs a day, Monday-through-Saturday. With the introduction of shift work, a 6-day workweek may change to a 4 or 3-day workweek depending on the length of a single shift. Studies have examined the differences between various workweek schedules. When comparing a 6-day/8-hr work schedule to a 5-day/10-hr work schedule, most studies found that employees are more tired at the end of a 10-hr shift. Studies also found employees to be more fatigued following a 12-hr shift when compared to an 8-hr shift. The table below shows shifts in work. 157

Table No 4.8. Shifts Banks Total Shifts SBI ICICI Yes 0 48 48.0% 32.0% 16.0% No 150 102 252 100.0% 68.0% 84.0% Total 150 150 300 Source: Survey 100.0% 100.0% 100.0% As per the above analysis 100 percent of the respondents at SBI and 68 percent at ICICI do not work in shifts. Table No 4.9. Working in Shifts Working in Shifts Banks Total SBI ICICI No Shift 150 102 252 100.0% 68.0% 84.0% General/Day Shift 0 31 31.0% 20.7% 10.3% Alternative Shift 0 17 17.0% 11.3% 5.7% Total 150 150 300 Source: Survey 100.0% 100.0% 100.0% The above analysis reveals that 20.7 percent of the respondents work in day shift, and 11.3 percent work in alternate shift. 100 percent sample of SBI and 68 percent of ICICI do not work in shifts 158

Table No 4.10. Working Days Working Days in a Banks Total week SBI ICICI 5 0 95 95.0% 63.3% 31.7% 6 150 55 205 100.0% 36.7% 68.3% Total 150 150 300 Source: Survey 100.0% 100.0% 100.0% Almost 100 percent of SBI work for 6 days in a week and 63.3 percent of the ICICI respondents work 5 days and 36.7 percent work for 6 days in a week. 4.9. Working Hours Working hours are one of the important factors which effect employee motivation. A recent study by University of Latvia examines certain aspects of employment conditions, such as self assessment at work and people s attitude towards working for long hours. The report was based on the Survey on Human Capital in Latvia. The findings of the study revealed that Latvia workers have long working hours and low pay which led to low motivation and fatigue. The following table examines the working hours of sample employees. Table No 4.11. Working Hours Working Hours in a Banks Total Week SBI ICICI 8 hrs 78 26 104 52.0% 17.3% 34.7% 8 hrs--10 hrs 56 75 131 37.3% 50.0% 43.7% 10 hrs--12hrs 16 31 47 10.7% 20.7% 15.7% 159

12 hrs--14 hrs 0 10 10.0% 6.7% 3.3% Above 14 hrs 0 8 8.0% 5.3% 2.7% Total 150 150 300 Source: Survey 100.0% 100.0% 100.0% At SBI no respondent works for more than 12 hrs, 52 percent of the sample work for 8 hrs followed by 37.3 percent and 10.7 percent for 8 10 hrs and 10---12 hrs respectively. Comparatively at ICICI 20.7 percent work for 10---12 hrs. 6.7 percent work for 12---14 hrs and 5.3 percent work for more than 14 hrs. Most of the ICICI sample employees work for 8 to 10 hrs which is 50 percent of the sample. This situation might be due to most of the times private banks work for more long working hours. 4.10. Work Motivation and Satisfaction The world of work has changed dramatically over the past decade. Organizations are being assessed against international standards and best practices. This is due to downsizing and expanding, increasing globalization, workforces diversifying, new organizational forms and benchmarking. All these changes have a profound influence on how organizations, including banking organizations, attempt to motivate their employees in order to have a competitive edge. The importance of employee motivation and job satisfaction is growing all the time in the organizations. Motivation is believed to lead to an increase in employees work performance. That in turn leads to an increase in overall organizational productivity levels. Furthermore, motivation is said to improve employee job satisfaction. Many researchers have been made to find out the effect the job satisfaction and motivation have in the productivity of the company. According to Oosthuizen (2001), motivation is one of the key factors in getting employees to increase performance. He further adds that in today s competitive world and market it is essential that an organisation have positively motivated employees to improve productivity and efficiency. Furthermore, Ströh (2001) outlined that some employees do not produce the quality 160

of work or maintain a consistent level of work outputs, which they are capable of. This may be attributed to many factors, including the under utilization of their skills, lack of a challenge, or unstimulating leadership styles. This could result in motivation levels decreasing, and hence overall job satisfaction levels decreasing. Research shows that employees are motivated by various factors, which in turn should satisfy certain needs and expectations Luthans (1989). Analoui s (2000) research indicates that in terms of motives, managers are interested in power, status, achievement, income and advancement. These are specifically related to the job itself (known as intrinsic factors) and factors related to the work environment (known as extrinsic factors) Buitendach & De Witte, (2005); Mehta et al., (2000). Managers are continually challenged to motivate a workforce to do two things. The first challenge is to motivate employees towards helping the organization achieve its goals. The second is to motivate the employees towards achieving their own personal goals Motivation is a need satisfying process. It is an interaction between the individual and his/her situation or background. One factor that may motivate one employee may not be the motivating factor for another. According to research, a great number of employees are motivated by interesting work content and good wages. As for other factors there is inconsistency in the order of what motivates one from another, which is dependent upon his/her education, cultural differences, financial condition and other contexts in which he works. The concept of employee motivation has been the subject of study in many different disciplines. However, within each discipline different theories prevail about what motivates people to go to work each day and how these motivations can be affected by changing the rewards of working. While economic theory attributes changes in behaviour to changes in relative prices, psychology generally focuses on people s preferences Frey et al (2002). Psychologists have argued for a long time that people are not only motivated to do things because of rewards from the outside. According to these psychologists, people can also be motivated to do things even though there is no external reward but the behaviour itself. In this case people are said to be intrinsically motivated Deci (1975). Luthans (1998) asserts that motivation is the process that arouses, energizes, directs, and sustains behaviour and performance. That is, it is the process of stimulating people to action and to 161

achieve a desired task. One way of stimulating people is to employ effective motivation, which makes workers more satisfied with and committed to their jobs. Money is not the only motivator. There are other incentives which can also serve as motivators. Vroom (1964) defined motivation as an internal force, based on an individual s conscious and unconscious needs that drive him/her to achieve. Robbins (1993) further defines motivation as a needs-satisfying process that reveals that when an individual s needs are satisfied or motivated by some factors (motivators), the individual will exert high levels of effort towards organizational goals. Motivators are referred to as factors of motivation. Motivators are the factors that influence or lead to positive willingness, and include specific needs, wants, drives or impulses Hersey & Blanchard (1988). These factors (for example, recognition, work content, promotion, supervision, salary and working conditions) could trigger this willingness to achieve organizational goals. Work motivation is shaped by the interplay between individuals and their work organizations. Organizations hire high potential people under the expectation that they will work to the full extent of their abilities, and exert all their effort and mental resources in their job. This expectation recognizes the existence of two important factors such as potential physical and mental resources, and motivational forces that energize and regulate the allocation of those resources to work related activities. Motivation regulates the amount of resources to be allocated, the direction or goal towards which those resources will be allocated, and the persistence of allocation and direction over time. Motivation affects choice, action, and performance. Individuals engage in work activities because work is a source of satisfying their basic needs for existence, relatedness and growth, and because work creates opportunities for developing a sense of self-worth and well-being Erez & Earley (1993; Locke (1991). However, these expectations are not always fulfilled. For several decades, the Roper Organization in New York City has been polling about twelve hundred employees every few years, and has found job satisfaction in America to be at its lowest level during the early 1990 s. Similarly, the Hay Group, a Philadelphia consulting firm whose clients included American Airlines, Disney, GE, Chase Manhattan, Maytag and others, has surveyed 750,000 middle managers in 1000 large corporations, and found that the Work Motivation percentage expressing favorable attitudes towards their companies dropped from 65% in 1987 to 55% in 1990 Fisher (1991). Dissatisfied 162

employees are not motivated to allocate effort and mental resources to do their work, and they often show withdrawal behavior of lateness, absenteeism, and turnover, which is detrimental to productivity. Therefore, motivating employees is essential for maintaining the competitive advantage of the modern workplace. 4.11. Public and Private Sector Work-Motivation and Satisfaction Overview The purpose of this study is to research the different motivational factors that affect employees motivation in the SBI and ICICI Banks. The banks represent one from public sector and the other one being from private sector. Based on previous research it is viewed that employees employed in the public sector will prioritize work motivation in different ways than their counterparts employed in private sector. It is also observed that public sector and private sector employment differ at a number of levels. Today's work environment is undergoing a major shift; factors such as globalization, growing economies, and improved technology are constantly presenting new challenges and creating new opportunities for people. With these changes, people's perceptions regarding their jobs are also changing. In this grow-or-die marketplace, the success of any organization relies on its workforce. Satisfied and committed employees are the most significant assets of any organization, including banks. As banking institutions are the backbone of a nation's economy, the efficient management of human resources and the maintenance of higher job satisfaction levels affect the growth and performance of an entire economy. The Indian banking sector is a fast-growing financial service sector that has seen tremendous progress following liberalization. The Indian banking system can be broadly categorized into "scheduled commercial banks" and "non-scheduled commercial banks". Scheduled commercial banks can be further classified into public sector banks, private sector banks (old and new) and foreign banks. Over time, differences have been observed between public sector banks and private sector banks in terms of various operational and efficiency parameters. 163

Literature indicates that the performance of the private and foreign banks have been stronger than that of public sector banks IBA (2008). A recent study Selvaraj (2009) reveals that private banks are more successful than public sector banks in terms of implementing Total Quality Management (TQM) initiatives, such as human resource management, customer focus, and top management commitment. Furthermore, public and private sector banks differ with respect to their compensation structures, working environments, technology, growth opportunities, and job security provided to the employees. Public sector banks structure compensation in a way such that there are lower pay differentials between the employees, long-term tenure is rewarded and there is a high base pay, whereas in the private sector banks, there are larger pay differentials, fewer rewards for tenure, and pay for performance D'Souza (2002). In addition, the working environment in private sector banks has been found as growth driven, technologically advanced, and devoid of bureaucracy, where employees' promotions are highly contingent on their performance and merit. However, private sector banks do not provide job security and would lay off their employees in cases of poor performance or adverse market conditions (Jha, Gupta & Yadav, 2008; Singh & Kohli, 2006; Thakur, 2007). Bajpai and Srivastava (2004) studied the satisfaction levels of employees of two public sector and two private sector banks in India. The results indicated that layoff threats, quick turnover, less welfare schemes, and less scope for vertical growth increased job dissatisfaction. In contrast, secure job environment, welfare policies, and job stability increased the degree of job satisfaction. In their study, Kumudha and Abraham (2008) compared 100 managers from 13 public and private sector banks and found that the programs related to self-development, information about job openings, opportunities to learn new skills and retirement preparation programs greatly influence the feelings of career satisfaction. Public and private sector banks also differ with respect to their background and work culture. It has been observed that the work culture of public sector banks was based on the concept of socio-economic responsibility, in which profitability is secondary. On the other hand, private sector banks work towards profitability. Because these differences between the sectors hold an important factor in shaping the work culture of an organization, it needs to be explored how they would likely affect job satisfaction. For the success and sustained growth of Indian banks, it is 164

imperative to create a pool of committed employees by determining whether they are job satisfied. Their satisfaction would affect their performance and commitment, which would eventually influence the banks' growth and profitability. The aim of this research is to analyze the levels of employee motivation and job satisfaction in SBI and ICICI banks. The questionnaire was specifically designed to accomplish the objectives of the study. The questionnaire consists of 62 questions, besides 11 questions on profile of the respondents. A population refers to the entire group of people from which data can be sourced and investigated and from which the researcher can make inferences (Cooper & Schindler, 2001; Saunders, Lewis & Thornhill, 2000; Sekaran, 2000). In this study the total numbers of respondents were 300, with 150 employees coming from SBI and ICICI banks. A non-probability sampling design, namely, convenience sampling was used to draw the sample. Convenience sampling involves collecting information from members of the population who are most easily accessible and conveniently available to provide the required information (Kerlinger, 1986). The rationale for using this method is that it is convenient, quick and cost effective (Neuman, 1997; Terre Blanche & Durrheim, 1999). A quantitative method was used to gather data for the research. The measuring instruments included the Work Satisfaction and Motivation Questionnaire developed by De Beer (1987) and a self developed questionnaire. The self developed questionnaire was used to determine the personal information of Sample respondents. It includes variables such as age, gender, experience, designation, education, salary, job security and so on. 4.12. Testing for reliability and Validity In order to ensure credibility of findings by empirical research, the survey instrument should have reliability and validity. Reliability refers to consistency. It suggests that the same thing repeated or recurs under identical or very similar conditions. The opposite of reliability is a measurement that yields erratic, unstable, or inconsistent results Neuman (2000). Validity is the match between a construct, a conceptual definition, and a measure. It refers to actually measuring what you define. 165

4.12.1. Reliability In this study, statistical analysis is performed by SPSS package of computer to verify the dimensionality of constructs. The Cronbach coefficient alpha is used to measure the internal consistency of the variables; the Cronbach s and item to correlation are adopted. To test the validity of the survey instrument, the questionnaire was pilot tested. 30 questionnaires were distributed to the employees of both SBI and ICICI banks and the results were analysed using SPSS package. Cronbach Coefficient Alpha is used to measure internal consistency of the data, it is a commonly used measure of reliability. If the Cronbach Alpha is greater than 0.70 means it has high reliability, if the Cronbach Alpha is between 0.50 and 0.60 the internal consistency is still acceptable and if the Cronbach Alpha is smaller than 0.30 it has low reliability. The second section contained the items, measuring work motivation. It is a 43-item questionnaire using a Likert scale with responses ranging from Strongly Disagree = SD; Disagree = D; NS = Not Sure; Agree = A; and Strongly Agree= SA; The items were adapted from De Beers (1987) standardized questionnaire for work satisfaction and motivation was used to collect data. The tool is a standardized tool and has been widely used by various researchers for studying employee motivation. The tool was administered individually, with minor modifications, to all the respondents and doubts (if any) were removed. De Beers tool measures motivational orientation with sub dimensions, hence it can be said that it is difficult to measure the motivational orientation directly and motivational orientation is a constraint. Motivational orientation can be quantified with the help of its nine factors viz. work content, payment, promotion, recognition, working conditions, benefits, personal, supervisor and general. The modification yielded an r = 0.74 Cronbach Alpha. The questionnaire incorporates the sixteen factors of Herzberg s two-factor theory De Beer (1987). The following categories were measured: Work itself/ Work Content According to Hackman and Oldman s job characteristics model, the core job dimensions are skill variety, task identity, task significance, autonomy and feedback (Pearson, 1991; Robbins, 1998). 166

It probed the respondents feelings about the type of work they do. Questions from 1 to 17 in the questionnaire measured the work content opinions of the respondents. Payment Payment refers to the employee s monthly salary, overtime, and increases. It considers whether these are fair and equitable Kruger et al. (1996). It probed respondents satisfaction with their salaries. Questions from 18 to 21 in the questionnaire measured the opinions of the respondents on payment. Promotion Promotion and advancement refer to all changes in status or organisational hierarchy that include more responsibility and power (Prinsloo, 1996). It probed for the opportunity that the organization offers for promotion. Questions from 22 to 24 in the questionnaire measured the opinions of the respondents on promotion opportunities. Recognition Recognition is the perception of rewards that is related to performance and what is required to earn this recognition Sherman et al. (1996). Recognition can be received from management, colleagues or clients Prinsloo, (1996). It probed whether the respondent was receiving the recognition and feedback for the jobs they perform. Questions from 25 to 28 in the questionnaire measured the opinions of the respondents on recognition. Working Conditions Working conditions refer to the physical working environment, the availability of facilities and aids and the quantity of work Prinsloo (1996). It also includes the general work rules that apply to an individual French (2003). This was probed as the fifth factor and looked at opportunity to mix with colleagues and interpersonal relations. Questions from 29 to 31 in the questionnaire measured the opinions of the respondents on working conditions. 167

Benefits Benefits are an indirect form of compensation that is mainly intended to improve the quality of work life for an employee (Sherman & Bohlander, 1992 cited in Swanepoel, 1998). It looked at whether the benefits such as pension, medical schemes and leave were satisfactory. Questions from 32 to 34 in the questionnaire measured the opinions of the respondents on benefits. Personal Personal refers to whether the individual s qualities, knowledge and skills are utilized appropriately Prinsloo (1996). It probed the respondents feelings towards their job. Questions from 35 to 36 in the questionnaire measured the opinions of the respondents on personal. Supervision An individual can have an agreeable relationship with a supervisor because there are certain characteristics of the supervisor s role that need to be learnt. The competence and the proficiency of the supervisor entail job knowledge, leadership skills and solving of problems Prinsloo (1996). It probed the level of satisfaction with the manager. Questions from 37 to 40 in the questionnaire measured the opinions of the respondents on leader supervision. Security and overall satisfaction Security (General) refers to overall satisfaction and whether the employee has considered resigning or changing jobs. According to Prinsloo (1996), an individual can experience a sense of security in the work that an individual does. It probed if the respondents had considered alternative employment, and hence their level of satisfaction with the organization. Questions from 41 to 43 in the questionnaire measured the opinions of the respondents on general and overall satisfaction. 4.13. Statistical Techniques The Statistical Package for the Social Sciences (SPSS) was used for all statistical calculations. This assisted in describing the data more succinctly and to make inferences about the characteristics of populations on the basis of data from the sample. The accomplished survey forms were collated, encoded and statistically analyzed. Analysis was carried out through the 168

Statistical Package for the Social Sciences (SPSS). A total score is calculated for each respondent in terms of the nine categories. Further to measure the motivation levels to be high or low, the average of each of the nine dimensions has been taken. The average value above 2.5 is considered to be high motivation and below 2.5 is considered as low motivation. Anova was employed to determine whether there is a difference in the motivation dimensions based on respondent s profile (namely age, educational background, job experience, annual salary, designation, working in shifts, working days, and working hours). The respondent s profile of both SBI and ICICI are compared with the application of t test namely banks, gender, job security and shifts. 4.13.1. Descriptive Statistics Descriptive analysis aims to describe the data by investigating the distribution of scores on each variable, and by determining whether the scores on different variables are related to each other Terre Blanche & Durrheim (1999). The descriptive statistics used in this study included means, frequencies, percentages and standard deviations. The mean is a measure of central tendency, which provides an arithmetic average for the distribution of scores Coolican (1999), Neuman, (1997). 4.13.2. Analysis of Variance (ANOVA) According to Coolican (1999), anova procedures test the significance of the differences between sample means where more than two conditions are used, or when several independent variables are involved. In this study, this statistical method isused to establish if a statistically significant difference exists between levels of motivation and biographical variables. According to Hinkle et al (1982), in anova, the hypothesis is that the mean performance in the population is the same for all groups (equality of population means). They add that mean differences are tested for statistical significance. Mouton and Marais (1990) further states that anova makes it possible to appraise the separate and joint influence of several independent variables on the experimental criterion. 169

4.13.3. Independent Samples t-test The t-test is used to compare the values of the means from two samples and test whether it is likely that the samples are from populations having different mean values. The t test is used for analysis as it compares the means between two unrelated groups on the same continuous, dependent variable. 4.14. Descriptive Statistics of the Work Satisfaction and Motivation Questionnaire Table No 4.12. Descriptive Statistics Source: Survey Descriptive Statistics Variable Mean Std. Deviation Work Content 1.99 0.081 Payment 1.52 0.5 Promotion 1.81 0.392 Recognition 1.89 0.305 Working Conditions 1.79 0.408 Benefits 1.65 0.477 Personal 1.62 0.486 Leader Supervision 1.92 0.272 General 1.57 0.496 As per the dimensions of work motivation assessed by the Work Satisfaction and Motivation Questionnaire, the above table indicates that the means for the work content, payment, promotion, recognition, working conditions, benefits, personal, leader/supervisor and general ranged from a high of 1.99 to a low of 1.52. It therefore appears that staff in the sample is relatively motivated; however, the mean values for payment, benefits, personal and general were the lowest. These mean values indicate the areas that employees were most likely to be de motivated and dissatisfied. 170

As per the above table the respondents in the sample are most likely to be motivated due to their work content, working conditions, promotion, recognition and leader supervision. They are least motivated by the remuneration they receive, general, personal and benefits. Furthermore, the rank order of dimensions of motivation from most motivated to least motivated by the sample respondents is depicted in the following table. 4.15. Rank order of motivational factors from most motivating to least motivating Table No 4.13. Rank Order Descriptive Statistics Variable Mean Std. Deviation Work Content 1.99 0.081 Leader Supervision 1.92 0.272 Recognition 1.89 0.305 Promotion 1.81 0.392 Working Conditions 1.79 0.408 Benefits 1.65 0.477 Personal 1.62 0.486 General 1.57 0.496 Payment 1.52 0.5 Source: Survey 4.16. Work Content/Work Itself Motivation influences productivity and organizations need to understand what motivates employees to reach peak performance. It is not an easy task to increase employee motivation because employees respond in different ways to their jobs and their organization's practices. Motivation is the set of processes that moves a person toward a goal. Thus, motivated behaviors are voluntary choices controlled by the individual employee. 171

Herzberg's Two-Factor Theory describes needs in terms of satisfaction and dissatisfaction. Frederick Herzberg examined motivation in the light of job content and contest. Motivating employees is a two-step process. First provide hygiene s and then motivators. One continuum ranges from no satisfaction to satisfaction. The other continuum ranges from dissatisfaction to no dissatisfaction. Satisfaction comes from motivators that are intrinsic or job content, such as achievement, recognition, advancement, responsibility, the work itself, and growth possibilities. Herzberg uses the term motivators for job satisfiers since they involve job content and the satisfaction that results from them. Motivators are considered job turn ons. They are necessary for substantial improvements in work performance and move the employee beyond satisfaction to superior performance. Motivators correspond to Maslow's higher-level needs of esteem and selfactualization. Dissatisfaction occurs when the following hygiene factors, extrinsic or job context, are not present on the job: pay, status, job security, working conditions, company policy, peer relations, and supervision. Herzberg uses the term hygiene for these factors because they are preventive in nature. They will not produce motivation, but they can prevent motivation from occurring. Hygiene factors can be considered job stay-ons because they encourage an employee to stay on a job. Once these factors are provided, they do not necessarily promote motivation; but their absence can create employee dissatisfaction. Hygiene factors correspond to Maslow's physiological, safety, and social needs in that they are extrinsic, or peripheral, to the job. They are present in the work environment of job context. Motivation comes from the employee's feelings of accomplishment or job content rather than from the environmental factors or job context. Motivators encourage an employee to strive to do his or her best. Job enrichment can be used to meet higher-level needs. To enrich a job, a supervisor can introduce new or more difficult tasks, assign individuals specialized tasks that enable them to become experts, or grant additional authority to employees. Work content measures the actual content of the job and its positive or negative effect upon the employees. It views whether the job is characterized as interesting or boring, varied or routine, 172

creative or stultifying, excessively easy or excessively difficult, challenging or non-demanding. The following table depicts the motivational level of employees of SBI and ICICI. Table No 4.14. Work Content Banks Work Content SBI ICICI Total 2 0 2 Low 100.0%.0% 100.0% 148 150 298 High 49.7% 50.% 100.0% Total 150 150 300 50.0% 50.0% 100.0% Source: survey As per the above analysis almost all the sample respondents of SBI and all the sample respondents ICICI have high work content. It is interesting to note that almost all the sample respondents view the work to be interesting, creative and challenging. 4.17. Payment The question of money and pay as a motivator in the workplace is not new. Years of research, and countless books and articles on motivation include references to money and pay. The use of monetary or other financial incentives in the classic work performance paradigm is based primarily on reinforcement theory. Reinforcement theory focuses on the relationship between a target behavior (e.g., work performance) and its consequences (e.g., pay), and it is premised on the principles and techniques of organizational behavior modification. Organizational behavior modification is a framework within which employee behaviors are identified, measured and analyzed in terms of their functional consequences (i.e., existing reinforcements) and where an intervention is developed using principles of reinforcement. Organizations use a variety of pay structures in an effort to use pay as a motivator. Straight- 173

salary pay seems to fall most obviously into Herzberg's hygiene or maintenance factors, which means it is necessary, but not motivating. Other pay structures that include commissions, bonuses and other incentives may have more ability to motivate performance. Some psychologists and analysts indicate that pay may have varying levels of motivational influence on employees. The biggest problem with a straight-pay structure is that employees quickly become used to earning a certain level of income regardless of the results they produce. This prompts them to seek or need alternative types of motivation to push beyond meeting basic expectations and to pursue higher standards of excellence. Payment refers to the employee s monthly salary, overtime, and increases. It considers whether these are fair and equitable Kruger et al (1996). The following table depicts the motivational levels of employees of SBI and ICICI with respect to payment. Table No 4.15. Payment Banks Payment SBI ICICI Total Low 78 67 145 53.8% 46.2% 100.0% High 72 83 155 46.5% 53.5% 100.0% Total 150 150 300 50.0% 50.0% 100.0% Source: Survey As per the above table 53.8 percent and 46.2 percent of the sample respondents of SBI and ICICI banks considered payment to be low. Which shows that pay or pay related benefits are not motivating employees. 46.5 percent and 53.5 percent of SBI and ICICI have shown a high level. This trend can be due to ICICI salaries and incentives are based on performance. 174

4.18. Promotion Promotions are regular prizes offered to encourage more effort at the lower levels, properly reward the promoted and sort employees into more senior jobs that better match their relative abilities and accumulated human capital. Promotion ladders and promotion tournaments supplement theories of careers that are built on the accumulation of general and specific human capital by introducing implicit contracts that commit workers to higher levels of effort and employers to reward this with pay rises and periodic promotions later in careers. The simplest form of incentive pay is a promotions ladder. This requires recruits to accept lower paid port-ofentry jobs. This early period of employment is a screening process. Good performance leads to promotion. When promotion ladders are used as deferred compensation, almost all junior workers who prove themselves are promoted. The prospect of promotion encourages the good workers to stay and invest in specific human capital. Job seekers will self-select by limiting their applications to the type of jobs where they expect to succeed and be promoted out of the less well paid port-of-entry jobs. More talented workers are usually more productive higher up in organizational hierarchies. Promotions assign workers to jobs better suiting their abilities and quickly move up talented workers. These are other purposes of promotions. They can be used to reward past employee efforts, promote investments in specific human capital and lower job turnover Lazear (1998). The following table depicts the motivational level of employees of SBI and ICICI with regard to promotion. Table No 4.16. Promotion Banks Promotion SBI ICICI Total Low 9 48 57 15.8% 84.2% 100.0% High 141 102 243 58.0% 42.0% 100.0% Total 150 150 300 50.0% 50.0% 100.0% Source: Survey 175

The above table shows that the majority of the sample respondents of both SBI and ICICI are highly satisfied and motivated with promotional opportunities provided at banks. Career advancement and hierarchical changes influence employee to perform well as responsibility and power motivates every employee. 4.19. Recognition Employees want to be recognized for the work they do. Especially when working in a pair or committee, they want to be recognized for their contributions. There are many effective and creative ways to motivate employees and recognize their accomplishments. As noted, Herzberg's theory suggests that opportunities for promotions and actual promotions are more likely to motivate higher performance than regular pay structures. This is supported by Maslow's earlier needs theory, which ranks self-esteem and self-actualization as higher-order needs compared with physiological needs, which would include pay, as lower-order needs. Promotions do usually increase pay, but the motivational influence stems from recognition, increased responsibility, more challenging work and a personal sense of accomplishment. All of which are motivating factors. Herzberg even notes "opportunities for advancement" specifically as a motivator. The following table presents the employee motivational levels based on recognition. Table No 4.17. Recognition Banks Recognition SBI ICICI Total Low 12 19 31 38.7% 61.3% 100.0% High 138 131 269 51.3% 48.7% 100.0% Total 150 150 300 50.0% 50.0% 100.0% Source: Survey 176

As per the above analysis majority of the respondents are highly motivated and satisfied with the recognition they receive from organization, clients, and colleagues. 4.20. Working Conditions/ Environment The organization must provide opportunities which satisfy employee needs. It must ensure to provide a motivating environment in the work place. Each person is different and unique and has a different mix of needs in different degree in him/her. This must be appreciated and the working environment must be so structured that it provides opportunities for satisfying their needs. A motivating environment in which people are challenged to stretch beyond their comfort zone, grow and learn. A highly energizing and creative environment in which people had the opportunity to experiment and explore new ways of thinking and new ideas. An environment that encouraged participation, collaboration, sharing, and team spirit. An environment in which people have the freedom and flexibility to do their job and make decisions about their work inspiring and motivating. An environment that provides meaningful work and is emotionally and intellectually stimulating A positive environment which is supportive, open, and caring Prinsloo (1996) Work environment is a major factor in motivating employees. Social relationships, creative freedom, working hours, general work rules and quantity of work all play a role in the workplace motivation. Hence an attempt has been made to study how these factors influence motivation at SBI and ICICI banks. Table No 4.18. Working Conditions Working Banks Conditions SBI ICICI Total Low 25 38 63 39.7% 60.3% 100.0% High 125 112 237 52.7% 47.3% 100.0% 177