Chapter 1: Introduction
1.1 Introduction
Businesses get established, they grow by selling products and services to people and they profit from their interaction. Globalization and fierce competition forced banks to continually provide excellent services to its customers. Their performance depends largely upon how well the sell their packages or provide services. It is true that only trained, satisfied and most of all motivated bank employees can sell products professionally and/or provide quality service.
Why do the businesses need to motivate employees? The answer is survival, earnings and better bank performance. Staff that is motivated is always needed and in constant demand in rapidly changing banks’ working environments. They are more productive and help banks survive and thrive in the fiercely competitive environment. It is the duty/responsibility of bank’s management in order to effectively carry out bank operations, to understand what their employees want from work and what motivates them more in the context of the roles they perform. Of all the functions management performs, employee motivation is arguably the most complex partly because what motivates employees, changes constantly. During the last decade, the competitive environment has dramatically changed. As the needs of bank customers have changed, it has been the bank’s obligation to make the necessary developments to existing products and services to meet those needs or to offer new alternatives. What good is a full menu of financial products and services if the bank can’t sell them? It’s the banks need to effectively motivate the staff to sell products and services that meets customers’ evolving needs.
1.2 Research question
How important is motivation for banks in Kashmir and how the performance of bank employees is affected by motivational factors?
1.3 Background: Research Significance and Problem Identification
Despite of this topic’s importance, the vast majority of research on work motivation is theoretical. Research on how bank employees are motivated and the impact of different type of motivation on bank’s performance has received relatively little attention. Moreover there is literally no data or research available on motivation or any other aspect of banks in Kashmir. Although many organisations like banks motivate their employees to work effectively and progress within the organisation hierarchy, little has been focused upon employee motivation for overall bank performance and efficiency. Performance oriented banking sector and constantly changing banking environment are influencing the ways the banks operate and it leads to increased reliance on skills of employees to perform effectively in providing better services. Employees cannot perform effectively if they are not trained and motivated to deal with the advanced management methods and techniques. In business management studies, this concept is one of the most important topics as this well established topic is increasingly affecting the field of management. This can be particularly for banks seeking effectiveness and better performance.
1.4 Theoretical Framework
The purpose of this research is to observe and research the motivational synopsis of the workforce of the ICICI Bank and State Bank of India, so as to appraise the contentment levels and the influence they may have on their day to day performance. The second purpose of this research will be to examine their motivational requirements and to evaluate if their pursuit for job contentment is being fulfilled by their current job profile. The main purpose of this dissertation is to study the effects of motivational factors on bank employees’ performance as well as on bank’s performance. It has also been considered to advance the understanding of the relationship between bank performance and work motivation, by empirically testing features of existing theoretical frameworks. This dissertation will also discuss and critically analyse motivation and staff development in the banking sector; and requirement of bank employees in the changing nature of the banking environment and impact of important factors on motivation. Detailed explanations on type and techniques of motivation, manager’s role, and employees’ requirements will also be considered. The final section will focus on need of employee appraisal and evaluation. Several authors’ views on motivation of employees will be assessed and later linked to bank performance and other related factors. Debate on motivation related issues, arguments and counter arguments by scholars will also be provided. This research will specifically examine motivation of employees in banks specifically focusing on motivational factors and its effects. Literature will be compared with the research on State Bank and ICICI Bank in Jammu & Kashmir region and conclusion on the benefits of motivating employees in banks and its effects on morale, skills and satisfaction of employees will be provided in the end.
1.5 Hypothesis
The banks can increase their performance and productivity by motivating their staff and training them with appropriate skills. If appropriately motivated staff can prove effective and beneficial by working more efficiently.
1.6 Rationale
Banks tend to apply those obsolete and inadequate motivation techniques which although were successful in the past but that cannot work in banking environment, its situations and operations. The banks often ignore advanced motivation methods suited for individual banking environmental and cultural requirements. In order to improve bank performance, it will have to adapt new ways that can successfully influence staff motivation.
1.7 Usefulness of the Research
This dissertation will focus on the relevant factors related to motivation and importance of motivation to improve employee performance and overall effectiveness of the bank operations. This research can be used by ICICI bank and J&K bank in Kashmir as a helpful document to compare its assessment with updated results of this study. This research can also be useful for banks as a guideline to take measures for improvement and modifying motivating techniques. Further it can be used by future researcher for their studies.
1.8.1 Aim
To examine the importance of motivation and effects of motivational factors on the employees of J&K Bank and ICICI Bank, Srinagar, Kashmir
1.8.2 Objectives
- To analyze the literature on motivation and motivational factors and its effects on Banks
- To examine what bank employees want and to analyze what motivation factors satisfy them?
- To determine the extent motivation factors influence employees’ development, their satisfaction and performance by seeking information through questionnaires and interviews.
- To undertake comparative analysis of ICICI Bank and J&K Bank on motivational level among their employees
- To evaluate the findings and provide recommendations to bank management
1.9 Summary of the Research
Chapter 1 of this research is introduction in which summary of the whole research is given. Aims and objectives are also overviewed. Research problem is identified; its importance, usefulness, hypothesis and rationale are also briefly explained.
Chapter 2 of this research comprise of the literature review in which issues related to motivation are discussed and critically analysed. This chapter has been broken down into different relevant sections. This chapter has examined the motivational requirements of the employees and evaluated whether management could fulfil their pursuit for job contentment. In this chapter of the dissertation, the effects of motivational factors on bank employees’ performance as well as on bank’s performance are studied. It has also been considered to advance the understanding of the relationship between bank performance and work motivation, by empirically testing features of existing theoretical frameworks. Detailed explanations on type and techniques of motivation and bank’s management role in motivation are also considered. The final section focused on need of employee appraisal and evaluation. Several authors’ views on motivation of employees are assessed and later linked to bank performance and other related factors. Debate on motivation related issues, arguments and counter arguments by scholars are also provided. This chapter specifically examined motivation of employees in banks specifically focusing on motivational factors and its effects.
Chapter 3 reviewed the methodology of the research. Types and methods of research appropriate for this dissertation are discussed in this chapter. Reasons of why such methods are chosen and some other techniques ignored are provided. The benefits of using chosen methods to validate the research are clearly explained. Research process is examined in detail as well as the limitations and constraints faced. Information about sampling method and data analysis tools is also provided.
Chapter 4 analysed all the collected data and presented in graphical format. Research findings and data analysis sections are combined for this dissertation. Results from interviews and questionnaires are critically analysed in the context of banking sector of Kashmir. Questionnaires results are graphically presented. Comparison of both banks is also provided.
Chapter 5 summarised all the literature and findings and arrived at the research conclusion. Recommendations are proposed that give insight into the requirements for better motivation. This section also highlighted the areas on which Kashmir banks can focus and research in near future.