I want to research on supply chain and logistic management.

American International University-Bangladesh (AIUB) INTERNSHIP REPORT ON Job Satisfaction Of Shahjalal Islami Bank Limited An Internship Report Presented to the Faculty of Business Administration in Partial Fulfillment of the Requirements for the Degree of Bachelor of Business Administration Supervised By: Mr. Abdul Kader Nazmul Head, Dept. of Management & Assistant Professor, Faculty of Business Administration, AIUB Submitted By; Rahman Md. Shamiur ID: 05-05462-1 Human Resource Management Date of Submission: 11/05/2009 Mr. R. Tareq Moudud (FCMA, ACS, ACMA (UK)) Director, Office of Placement & Alumni American International University-Bangladesh Subject: Submission of Internship Report. Dear Sir, With a great pleasure I have submitted the report on the “Job satisfaction of Shajalal Islami Bank Limited (SJIBL)” which has been done as the main part of the requirement of the course under the supervision of Mr. A.K Nazmul. While doing my internship, I have the opportunity to meet all employees in the Branch. Almost each of the people I came across had been very helpful. However, should you need any clarification I will be obligated to provide with further explanation. Thank you Yours sincerely Rahman Md. Shamiur I.D: 05-05462-1 Acknowledgement Definitely all praises be to Allah. So, first of all, I express my deep gratitude to the Almighty Allah who created and nurture us in this transitory world. I also have to put my heartfelt respect and gratitude for His kindness and help that were provided to me to complete my assigned report on the topic “Job Satisfaction of Shahjalal Islami Bank Limited’. I would like to thank my honorable director, Office of Placement & Alumni Mr. R. Tareq Moudud & course instructor “Mr. A. K Nazmul” for asking me to prepare this report and for providing me proper guidance to work on this company analysis. It is an opportunity for me to translate into action the directives of my learned instructor and prove my worth in the preparation of the report confidently. I gathered a lot of knowledge and information and practical experience while working on it. I really want to express my heartiest gratitude to him for his valuable advice and time that he gave me, which helped me prepare this company analysis. I am very grateful to Md. Nazrul Islam, Senior Assistant Vice President & Manager of Shahjalal Islami Bank Ltd. Kawran Bazar Branch where I completed my internship program and all the employees of SJIBL, for their hearty co-operation in the learning process about Shahjalal Islami Bank Ltd. General Banking System in particular. I would also convey my thanks to all the employees for their beloved manners and attitudes shown to me during the program. Last of all I would like to express my thanks to the authors, researchers, article writers whose books and articles I consulted and friends who helped me in every stage of the report by providing valuable information and suggestion in respect of preparing this report. Executive Summary The banking system plays a vital role in underpinning the economic development of a country. In the backdrop of Financial Sector Reform Policy streamlining the country’s economy, Shahjalal Islami Bank Limited (SJIBL) has achieved great success in all areas of operations with ultimate objective of improving the socio-economic development of the country This study attempts to evaluate job satisfaction of bank officers of the SJIBL. It focuses on the relative importance of job satisfaction factors and their impacts on the overall job satisfaction of officers. It also investigates the impacts of bank type, work experience, age, and sex differences on the attitudes toward job Satisfaction. The result shows that salary, efficiency in work, fringe supervision, and co-worker relation are the most important factors contributing to job satisfaction. The bank officers of SJIBL have higher levels of job satisfaction and they enjoy better facilities and supportive work environment. Work experience is found as the second most important factor affecting job satisfaction. Sex and age differences have relatively lower level of impact on it. The overall job satisfaction of the bank officers of the SJIBL is at the positive level. TABLE OF CONTENT Letter of Transmittal Acknowledgements Executive Summary TOPIC PAGE 1.0 Introduction 1 1.1 Statement of the Problem 2 1.2 Rationale of the Study 2 1.3 Objectives of the report 3 1.4 Scope of the report 4 1.5 Limitations 4 1.6 Methodology 5 2.0 Historical Background of SJIBL 7 2.1 Shahjalal Islami Bank Limited at a glance 7 2.2 Vision of SJIBL 9 2.3 Mission of SJIBL 9 2.4 Objectives of SJBL 10 2.5 Strategies of SJIBL 11 2.6 Motto of the SJIBL 11 2.7 Social Welfare Activities 11 2.8 Business Activities of SJBL 12 2.9 Credit Rating Report 18 2.10 Net Worth of SJIBL 18 2.11 Hierarchy of SJIBL 19 3.0 Job Satisfaction 21 3.1 Relative Importance of Attitude toward Job Satisfaction 26 3.2 Impact of Bank type, work experience, age and sex Differences on Job Satisfaction 27 4.0 Methodology 30 4.1 Research design 30 4.2 Research Approach 30 4.3 Research Instruments 30 4.4 Data Collection 31 4.5 Data Collection Procedure 32 4.6 Data Analysis Procedures 33 5.0 Analysis 35 5.1 Interpretation of the data 45 6.0 Findings 48 7.0 Recommendation 52 8.0 Conclusion 54 Appendices Bibliography Chapter- 1 Introduction _____________________________________________ 1.0: Introduction: With the opening up of the economy of Bangladesh, a dramatic change has been observed both in manufacturing and in service sectors. This has brought higher employment opportunities, increases in income level, and changes in consumption pattern and consequently there emerges a competitive environment in the country. Specifically, the expansion of private banking business, along with customized services, has created a severe implied competition in this sector. This competition has made the service gap wider as private banks offer better services to their internal and external customers. The scenario has created an urge to the bank policy makers to identify the underlying reasons and brought them into consideration the job satisfaction issue. It will investigate that officer of Shahjalal Islami Bank Limited play the key role in manipulating their services through implementing policy. 1.1: Statement of the Problem: Job satisfaction is the reaction of the workers against the role they play in their work (Vroom) (1967, 1999). The studies will designee to investigate the level of achievement of employee’s job satisfaction of Shahjalal Islami Bank Limited in Bangladesh. 1.2: Rationale of the Study: Today’s business world is dynamic and competitive therefore organizations looking for talent, extrovert graduates who belong to high degree of adaptability quality. Today’s business graduates will be the core part of business organization. So business graduates need to have both theoretical & practical knowledge to manage the business activity properly. In order to be familiar with organizational culture and to gain some practical knowledge about an organization our Department provides Eight to twelve week internship program as a part of the BBA program. After completion of the program period a student must submit the report on the assigned topic to the Supervisor and the department. This program carries three (3) credit hours out of 126 credit hours of the BBA program. 1.2.1: Rationale of selecting SJIBL I was assigned in Shahjalal Islami Bank Limited through my Internship supervisor I was selecting Bangladesh Shahjalal Islami Bank Limited to perform my internship program as my honorable supervisor inspired me. I thought SJIBL being the prime development financing institution continued its effort to make an effective contribution towards expansion of industrialization process of Bangladesh. It seems to me that in SJIBL there is a sufficient opportunity to gain practical knowledge about the activities of a bank. The working environment is good and the employees are very much cooperative to provide practical knowledge about different functions of the bank. I selected a topic named "Job Satisfaction of Shahjalal Islami Bank Ltd." On the basis of this topic I have prepare my Internship Report. 1.3: Objective of the Report: 1.3.1: Broad Objective: The attitudes regarding job satisfaction are broadly related to the areas of intrinsic nature of work, wage and security, supervision, and company policies and practices. The broad objective of the study is descriptive analysis that employee satisfaction of Shahjalal Islami Bank Limited. 1.3.2: Specific Objective: The Specific objective of the study is findings the results from the balancing and summation of many specific likes and dislikes of employees experienced in connection with their jobs The present study deals with the two issues to analyze the job satisfaction of bank officers of the SJIBL in. The issues are: (i) The relative importance of job satisfaction factors. (ii) The impact of bank type, work experience, age and sex differences on the attitudes toward job satisfaction. 1.4: Scope of the Report: Since I have worked in the Shahjalal Islami Bank Limited, Kawran Bazar Branch, I get the opportunity to gain knowledge of different part of banking system. The supervisor divided into the whole banking in three parts as a result I got the opportunity to work in all three divisions (investment division, credit division, foreign exchange division). And from these three different departments or divisions, I hope that I will be capable of doing these types of jobs in the future. Moreover, as I am a HR student so my supervisor helps me to communicate with HR Department. 1.5: Limitation: On the way of my study in Shahjalal Islami Bank Limited, I faced the following problems, which may be termed as the limitations of the study. The major limitations of this study are given as follows i. There were some restrictions to have access to the information confidential by concern authority. ii. I worked only on Kawran Bazar branch of Shahjalal Islami Bank Limited, so I gather knowledge about activities of Head Office only by reading/hearing not in practical way. iii. Sufficient records, publications regarding customer service were not available as per requirement. iv. Three-month is not sufficient time to gain practical knowledge and prepare a report. v. The employees of the bank are so much busy so they cannot provide me to give information. vi. I have no proper experience to do this kind of report. So, inexperience creates obstacle to follow the systematic and logical research methodology. 1.6: Methodology: 1.6.1: Sources of Data Collection: 1.6.1.1: Primary Sources: Primary data will be collecting by different sources.  Observation of banking activities.  Face to face Interviews.  Employee survey data were gathering by analyzing responses to questionnaire.  Experiences gained during performing duties for General Banking department and HR department.  Discussion with officers of Shahjalal Islami Bank Limited. 1.6.1.2: Secondary Sources:  Annual reports of Shahjalal Islami Bank Limited.  Various documents from General Banking department.  Different websites, books.  Internal Records. Chapter- 2 Background of the study _____________________________________________ 2.0: Historical Background of SJIBL: The “Shahjalal Islami Bank Limited” was incorporated as a public limited company as on 1st day of April 2001 under the Companies Act. 1994. The Bank started its commercial operation on May 10, 2001. The Bank has made a significant progress within a very short period of its existence and occupied an enviable position among its competitors after achieving remarkable success in all areas of business operation. The Authorized Capital of the Bank is TK. 1872 million as on 31.12.2007. Total equity was TK. 3041 million as on 31.12.2007. The Bank has raised its paid up capital of TK. 936 million through Initial Public offering (IPO) in the month January – February 2007. 2.1: Shahjalal Islami Bank Limited at a glance: With a view to materialize the dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam, a group of highly successful entrepreneurs conceived an idea of floating a commercial bank styled as “Shahjalal Islami Bank Limited” which is named after the name of the renowned saint Hajrat Shahjalal ® who dedicated his life for the cause of peace in this world and hereafter and for the service of humanity. The sponsors are reputed personalities in the field of trade & commerce, industry and finance. “Shahjalal Islami Bank Limited” offers the full range of banking services for personal and corporate customers, covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, real estate to software and is backed by the latest technology. The Bank is being managed by a group of highly experienced professionals with diversified experience in finance and banking. The Management of the bank constantly looks after customers’ satisfaction and believes that a satisfied customer is a great Ambassador. The Bank has already achieved tremendous progress within only five years. The bank has already ranked as one of the quality service providers & is known for its reputation. The offers the full range of banking services for personal and corporate customers, covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. By now, the Bank established correspondent Banking relationship with 18 Banks covering their global network of 385 branches/units of International repute at different important locations. It also established accounting relationship with 10 Banks and maintaining 22 NOSTRO Accounts in 8 (eight) major Currencies at different convenient locations. The Board of Directors of our Bank consists of reputed Industrialists and Businessmen who are successful in their respective fields headed by Mr. Sajjatuz Jumma, the Chairman of the Board who is an eminent Industrialist & reputed businessman in Bangladesh and current Chairman of Islamic Banks Consultative Forum (IBCF). The Board generally deals with policy matters relating to management of Business and sets goal for the growth & development of the Bank as a whole, review of the same from time to time and gives necessary guidance to the management. The Bank is managed by a Team of professional Executives and Officials having profound banking knowledge & expertise in different areas of management and operation of Banks. The Team is headed by the immediate past Executive President and CEO of Islami Bank Bangladesh Ltd. (IBBL) for about 7 years. During his Incumbency, IBBL attained a remarkable growth & development. Above all, he had the opportunity to hold the position of Chairman of the Board of Directors of Islami General Insurance Company & then he Joined Shahjalal Islami Bank Ltd on February 25, 2004 as the Managing Director and Chief Executive Officer (CEO) to enrich Islamic Banking methodology in the Country. During the short span of time, Shahjalal Islami Bank so far introduced a good number of attractive deposit products to broaden the resource base and also Investment products to deploy the deposit resources so mobilized. Some more schemes covering the deposits, Investments & Services will be introduced gradually in near future suiting to the taste and requirement of the clients. The Bank has a strong Shariah Council consisting of prominent Ulama, Fuquah & Economists who meet periodically to confer decisions on different Shariah issues relating to Banking Operation & to address them and to give necessary guidance to the management on Shariah Principle. Since inception, Bank has been performing in all the sectors i.e. general Banking, Remittance, Import, and Export & Investment. All our branches are fully computerized having on line Banking facility for the clients. All activities of the Bank including its products and services are mainly for different economic groups of Bangladesh at home & abroad. Bangladeshi expatriates living abroad in different countries form a strong economic group who contribute greatly towards the economic development of the country. 2.2: Vision of SJIBL: To be the modern Islami bank in Bangladesh and to make significant contribution to the national economy and enhance customer’s trust & wealth, quality, investment, employees’ value and rapid growth in shareholders’ equity. 2.3: Mission of SJIBL: • To provide quality services to customers • To set high standards of integrity • To make quality investment • To ensure sustainable grow in business • To ensure maximization of shareholders’ wealth • To extend our customers innovation services acquiring state-of –the-art technology blended with Islamic principles. • To ensure human resource development to meet the challenges of the time. 2.4: Objectives of SJBL: From time immemorial Banks principally did the functions of moneylenders or "Mohajans" but the functions and scope of modern banking are now a days, very wide and different. They accept deposits and lend money like their ancestors, nevertheless, their role as catalytic agent of economic development encompassing wide range of services is very important. Business commerce and industries in modern times cannot go without banks. There are people interested to abide by the injunctions of religions in all sphere of life including economic activities. Human being is value oriented and social science is not value-neutral. Shahjalal Islami Bank believes in moral and material development simultaneously. "Interest" or "Usury" has not been appreciated and accepted by "the Tawrat" of Prophet Moses, "the Bible" of Prophet Jesus and "the Quran" of Hazrat Muhammad (sm). Efforts are there to do banking without interest Shahjalal Islami Bank Limited avoids "interest" in all its transactions and provides all available modern banking services to its clients and wants to contribute in both moral and material development of human being. No sustainable material well-being is possible without spiritual development of mankind. Only material well being should not be the objective of development. Socio-economic justice and brotherhood can be implemented well in a God-fearing society. The objectives of Shahjalal Islami Bank include: A To conduct interest-free and welfare oriented banking business based on Islamic Shariah. B To implement and materialize the economic and financial principles of Islam in the banking arena C To contribute in sustainable economic growth. D To help in poverty alleviation and employment generations. E To remain one of the best banks in Bangladesh in terms of profitability and assets quality F To earn and maintain a 'Strong' CAMEL Rating G To introduce fully automated systems through integration of information technology. H To ensure an adequate rate of return on investment I To maintain adequate liquidity to meet maturing obligations and commitments. J To play a vital role in human development and employment generation K To develop and retain a quality work force through an effective Human Resources Management System. L To ensure optimum utilization of all available resources M To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels. 2.5: Strategies of SJIBL: The strategies of Shahjalal Islami Bank include: • To strive for customers best satisfaction & earn their confidence. • To manage & operate the bank in the most effective manner. • To identify customers need & monitor their perception towards meeting those requirements. • To review & update policies, procedures & practice to enhance the ability to extend better services to the customers. • To train & develop all employees & provide them adequate resources so that the customers needs are reasonably addressed. • To promote organizational efficiency by communicating company plans, policies & procedure openly to the employees in a timely fashion. • To cultivate a congenial working environment. • To diversify portfolio both the retail & wholesale markets. 2.6: Our Motto: The motto of Shahjalal Islami Bank Limited is “Committed to Cordial Service.” 2.7: Social Welfare Activities: With a view to providing financial assistance to the poor and needy people of the society and also for the welfare of the community, to this perspective, bank has established “Shahjalal Islami bank Foundation” with the objective to provide health care, relief and rehabilitation, education, humanitarian of winter clothes during the winter etc. Shahjalal Islami Bank Foundation has a planning to establish the following projects and programs: • Shahjalal Islami Bank International School and College • Shahjalal Islami Bank Hospital The foundation have also drawn up programs to look after the education, health and medical requirements of all the people of rural areas where the bank has launched Rural Investment Programs with vision 2020. The foundation already introduced a program to reward poor student who passes SSC and HSC exam. Students who are not financially sound, the foundation gives financial assistance to them. The bank has started it from 2006 under these project 111 poor and meritorious students awarded by monthly scholarship and lump sum money at yearly basis. This will motivate students to do better in future. The bank appreciates the good things in the society. 2.8: Business Activities of SJBL: Shahjalal Islami Bank Limited accepts deposits on the basis of Mudaraba in the following types of accounts, and pays profit, like that of dividend in these accounts, except Alwadia Current Account. The relationship between banker and customer is not debtor-creditor relationship of conventional banks. The depositor is a partner in business with SJIBL. Attractive Deposit and Investment Schemes Deposit Schemes Investment Schemes Mudaraba Monthly Income Scheme Household Durable Purchase Scheme Mudaraba Multiple Benefit Deposit Scheme Housing Investment Scheme Mudaraba Millionaire Scheme Small Business Investment Scheme Mudaraba Monthly Savings Scheme Car Purchase Investment Scheme Mudaraba Hajj Deposit Scheme Bai-Muajjal (F.O.) Investment Scheme Membership of Different Organization / Chamber: 1. Bangladesh Institute of Bank Management (BIBM) 2. The Institute of Bankers Bangladesh (IBB) 3. Bangladesh Association of Banks (BAB) 4. Bangladesh Foreign Exchange Dealers' Association (BAFEDA) 5. Central Shariah Board for Islamic Banks of Bangladesh 6. Islamic Banks Consultative Forum (IBCF) 7. International Chamber of Commerce- Bangladesh 8. Society for Worldwide Inter-bank Financial Telecommunication (SWIFT) Corporate Banking: We provide personalized solutions to all our customers. The Bank distinguishes and identifies corporate customers' need and designs appropriate solutions accordingly. Shahjalal Islami Bank Limited offers a complete range of financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities. We offer accurate solution whether it is project finance, term Investment, import or export deal, working capital requirement. We are pledged bound to render efficient services to satisfy customer needs. Our experience in handling Corporate Banking business covers a wide span of businesses and industries. We hold leverage on our expertise in the following sectors particularly: • Textile Spinning, Dyeing / Printing • Ready Made Garments • Agro processing industry • Edible Oil, Consumer and Diversified Industries • Industry (Import Substitute / Export oriented) • Food & Allied products • Paper & Paper Products • Engineering, Steel Mills • Chemical and chemical products etc. • Telecommunications. • Information Technology • Real Estate & Housing • Wholesale trade • Project Finance • Lease Finance, Hire Purchase, International Banking • Transport • Pharmaceuticals • Export Finance • Import Finance Remittance arrangements: Shahjalal Islami Bank Limited (SJIBL) established Taka Drawings Remittance arrangements with Kushiara Financial Services Limited UK one of the largest Remittance Company in London. Since the date of commencement of business with them during the last 10 (ten) months we have handled 17,160 Numbers of remittance successfully. Every working day we are handling around 100 remittances of Kushiara UK. In the meantime we are going to execute deal with Western Union and Placid NK for handling their foreign Remittances. Shahjalal Islami Bank Limited ensures disbursement & payments to beneficiaries against remittance under following norms:  Execution of payment to beneficiaries of SJIBL's branches of Dhaka city within same business day.  Execution of payment to beneficiaries of Other Dhaka City Bank branches (other than SJIBL branches) within next business day.  Execution of payment to beneficiaries of SJIBL’s branches outside Dhaka City within next business day.  Execution of payment to beneficiaries of branches of other Banks outside Dhaka City within 3 (three) business days.  SJIBL notify / contact the beneficiary of the remittance, using the best mode of communications available. . SMS Service: Welcome to the convenience of accessing your banking needs from anywhere anytime. Shahjalal Islami Bank again fulfilled the demand of time in the era of modern banking technology by introducing the Mobile banking i.e. SMS / Push Pull Service. We offer a range of ways for you to access and manage your money. So that you are always in control of your financial transactions, it is fast, secure and economical. Get real-time banking information on your handset. Mobile Banking is a secured & flexible solution that delivers the banking services to its customers through a range of mobile devices using SMS / Push Pull technology. It provides banking services to the registered clients access to account information and real-time transaction capabilities from the mobile phones at a true “Anywhere, Anytime, Anyhow” convenience. It works using Shot Message Services (SMS) Technology. It works through a set of text message. With SMS, client can perform a wide range of query-based transactions from his/her mobile phone. It also provides pre-defined Alert Message Service. The Service is designed to serve the bank customers by informing the real-time data about their account such as current balance, recent transaction statement, cheque status etc. as SMS reply within about half a minute in response to their SMS query in a defined simple syntax. It can also serve the customers to stop a cheque, receiving statement request and other request / order at the branch for processing through SMS. In today’s business environment, with so many deadlines to fulfill appointments to meet and meetings to attend, you are hard pressed for time. Don’t you wish you could do all your important activities while traveling from one place to another? As a leading private sector bank in Bangladesh the Shahjalal Islami Bank Limited presents the Mobile banking i.e. SMS / Push Pull service. Services: 1. Balance Inquiry 2. Cheque Book Request 3. Cheque Leaf Status 4. FC Rate Information 5. Cheque Stop Payment Instruction 6. Statement Request by Courier/Post 7. Statement request by E-mail 8. Last Three Transaction Statement 9. Help inquiry 10. PIN Change SJIBL VISA Card: Card is considered as a new dimension of product resulting from technological development in the banking arena. In line with our affiliation with VISA International for VISA ATMs and POS, the following two products are launched broadening service products of the Bank to the clients’: 1. VISA Electron (SJIBL VISA Debit Card - local) 2. VISA Prepaid (SJIBL VISA Prepaid Card) SJIBL VISA Debit Card: To a customer, “My card, my money” concept is used for Debit Card. Any accountholder of SJIBL can apply for a SJIBL VISA Debit Card against his/her Al-Wadiah Current Deposit (AWCD), Mudaraba Savings Deposit (MSD) or Mudaraba Short Notice Deposit (MSND) Account. He/she is fully authorized to enjoy the benefits of cash withdrawal from ATMs, liberty of shopping, dining, paying utility bills and having access account information through SMS, etc. round the clock. SJIBL VISA Prepaid Card (Local): SJIBL VISA Prepaid Local Cards are open to the customers even having no account with Shahjalal Islami Bank Limited. Cardholders can have the card against prepayment and have access from anywhere in Bangladesh. SJIBL VISA Prepaid Local Cards are accepted locally at all VISA labeled merchant outlets, ATMs, etc. SJIBL VISA Prepaid Card (International): SJIBL VISA Prepaid International Cards are also open to the customers even having no account with Shahjalal Islami Bank Limited. Cardholders can have the card endorsing US Dollar paying against Travel Quota, Exporters Retention Quota or marking Lien of his/her FC Account. SJIBL VISA Prepaid International Cards are accepted world wide at all the VISA labeled merchant outlets, ATMs, etc. SJIBL VISA Prepaid Card (Dual): The Dual Card is a hassle free product, no need to carry two separate plastic cards for local and international card. Now, with one plastic card the Cardholders can enjoy all the benefits and make transactions locally & globally from their Prepaid card account at all the VISA labeled merchant outlets, ATMs, etc. SJIBL VISA Souvenir Card (Gift Card – Local): SJIBL Souvenir Card is a very attractive and stylish product. Like a Gift Card, SJIBL Souvenir Card can be used by anyone wishes to. The intending customer may have the card instantly or may customize the card as required. The SJIBL Souvenir Cards are accepted locally at the entire VISA labeled merchant outlets, ATMs, etc. SWIFT Service: Shahjalal Islami Bank Limited is a member of the society for Worldwide Inter Bank Financial Telecommunication (in abbreviation S.W.I.F.T). SWIFT is the industry-owned co-operative supplying secure, standardized messaging services and interface software to nearly 8,100 financial institutions in 207 countries and territories. SWIFT members include banks, broker-dealers and investment managers. The broader SWIFT community also encompasses corporate as well as market infrastructures in payments, securities, treasury and trade. 2.9: Credit Rating Report: Long Term Short Term Entity Rating A ST- 2 Date of Rating 27 June, 2007 Credit Rating Information and Services Limited (CRISL) has assigned ‘A’ (pronounced single A) rating in the Long Term and ST– 2 rating in the Short Term to the Shahjalal Islami Bank Limited. The above rating has been done in consideration of its significant improvement in asset quality, capital adequacy, and financial performance, operating efficiency as depicted through its financials up to 31 December 2006 along with other operating performances. Financial Institutions rated ‘A’ in the long term are adjudged to offer adequate safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. Risk factors are more variable and greater in periods of economic stress than those rated in the higher categories. Bank rated ST-2 in the short term is characterized by high certainty of timely payment, Liquidity factors are strong and supported by good fundamental protection factors. Risk factors are very small. 2.10: Net Worth of SJIBL: The net worth of Shahjalaj Islami Bank Limited as on 30th June stood at Tk. 960.64 million against 9,358,250 of Tk. 100 each representing a book value of Tk. 102.65 per share. 2.11: Hierarchy of SJIBL: Managing Director (MD) Deputy Managing Director (DMD) Senior Executive Vice President (SEVP) Executive Vice President (EVP) Senior Vice President (SVP) Vice President (VP) Senior Assistant Vice President (SAVP) Assistant Vice President (AVP) First Assistant Vice President (FAVP) Junior Assistant Vice President (JAVP) Senior Executive Officer (SEO) Executive Officer (EO) First Executive Officer (FEO) Junior Executive Officer (JEO) Assistant Executive Officer (AEO) Senior Officer (SO) Officer Chapter- 3 Review of the literature _____________________________________________ This study attempts to evaluate job satisfaction of bank officers in Bangladesh. It focuses on the relative importance of job satisfaction factors and their impacts on the overall job satisfaction of officers. It also investigates the impacts of bank type, work experience, age, and sex differences on the attitudes toward job Satisfaction. The result shows that salary, efficiency in work, fringe supervision, and co-worker relation are the most important factors contributing to job satisfaction. Private bank officers have higher levels of job satisfaction than those from public sectors as they enjoy better facilities and supportive work environment. Work experience is found as the second most important factor affecting job satisfaction. Sex and age differences have relatively lower level of impact on it. The overall job satisfaction of the bank officers is at the positive level. 3.0: Job Satisfaction: The concept of job satisfaction has numerous definitions. Some of these definitions may be listed as follows: According to Vroom (1967:99), job satisfaction is the reaction of the workers against the role they play in their work. Similarly, Blum and Naylor (1968:364) define job satisfaction as a general attitude of the workers constituted by their approach towards the wages, working conditions, control, promotion related with the job, social relations in the work, recognition of talent and some similar variables, personal characteristics, and group relations apart from the work life. Job satisfaction is the total of the sentiments related with the job conducted. If the worker perceives that his/her values are realized within the job, s/he improvises a positive attitude towards h is/her job and acquires job satisfaction (Mc Cormic and Tiffin 1974:74). Job satisfaction has received extensive attention in organizational research during the past two decades (Farber, 1983; Hackman. & Oldham, 1980; Holtzman & Glass, 1999; Jayarantne & Chess, 1984; Kim, 2002; Maslach, 1986; Wagner & Rush, 2000; Zhao, Thurman, & He, 1999). Job satisfaction has been found to have a significant influence on job performance, absenteeism, turnover, and psychological distress (Andrisani, 1978; Davis, 1992). Thus, as an antecedent condition, job satisfaction influences employees’ job-related performance, which in turn affects employees’ occupational attainment (Felmlee, 1995). Job satisfaction can also be viewed as the consequence of factors that impinge on it. Such as the work environment and the reward structure offered on the job, as well as the family obligations of the employee (Andrisani, 1978; Davis, 1992). For instance, research with employees has demonstrated that job characteristics such as supervisor and co-worker support, pay, benefits, and job security increase employees’ job satisfaction as well as their attachment to their employer and the labor force in general (DeSai & Waite, 1991; Greenberger, Goldberg, Hamill, O’Neil, & Payne, 1989). Job satisfaction has also been linked to positive workplace outcomes such as increased organizational commitment (Brown, 1993; Johnston et al., 1990). Workers with high levels of job satisfaction are more likely to be committed to the organization (Brown, 1993). Furthermore, individuals with higher levels of job satisfaction demonstrate decreased propensity to search for another job (Sager, 1994) and a decreasing propensity to leave (Brown, 1993). Employee job satisfaction is an important factor in an organizational context because of the costs associated with hiring and training new personnel, as well as the costs associated with not having that individual contributing his/her work efforts towards organizational goals. These findings suggest that job satisfaction is one of the most important attitudinal issues facing employers in the workplace. Wagner and Rush (2000) have investigated organizational performance in the context of job satisfaction, pay satisfaction, and trust in management and peers, and organizational commitment as an antecedent of organizational performance in U.S. populations. Wagner and Rush argued that job satisfaction has, perhaps, been most consistently associated with organizational performance. They pointed out that the younger and the older workers may view work and self in fundamentally different ways. As a result, job satisfaction will differ for an employee in his/her life-career-stage. Wagner and Rush suggested that the early years (20-34) are years of establishment and settling down; later years (35-50) are associated with a stronger sense of self and location vis-a-vis life and work. Therefore, younger and older workers’ job satisfaction may differ in regard to their orientations towards self, others, and work. These differences may lead to different salient motives for altruistic performance among younger and older employees. Another study carried by Richmond and McCroskey (2000) also establishes as did the earlier research that employees’ job satisfaction will result in positive outcomes for the organization as a whole. They argue that supervisors’ positive behavior will increase employees’ job satisfaction, and will create a positive affect on the organization. The corollary in their study is that if the employees like their immediate supervisors, then they will have greater motivation towards their work and more satisfaction with that work. Kim (2002) noted that for public organizations to enhance performance and accountability human resources management strategies are required. He argued that in particular employees’ job satisfaction is related to employees’ performance. Kim conducted a study exploring the relationship between participative management in the context of strategic planning and job satisfaction in public organizations in US public organizations. The results show that managers’ use of a participative management style and employees’ perceptions of participative strategic planning processes are positively associated with high levels of job satisfaction. The study also finds that effective supervisory communication in the context of the strategic planning process is positively associated with high levels of job satisfaction. The study suggests that participative management that incorporates effective supervisory communications can enhance employees’ job satisfaction. Kim argued that in this regard organizational leaders in the public sector should emphasize changing organizational culture from the traditional pattern of hierarchical structure to participative management and empowerment. He further elaborated that increased job satisfaction leads to improved performance by the employees. Almost all theories of job satisfaction begin with a focus on the workplace itself (Zhao, Thurman, & He, 1999). Zhao et al. explored employee’s job satisfaction not only based on work environment but also in relation to employees’ demographic variables. Their study included employees’ education level, ethnicity, gender, rank, and years of service. Study results suggest that employees’ education level have a positive relationship with employees’ job performance and job satisfaction. The employees with master degrees tended to demonstrate the lowest levels of positive attitudes toward their jobs. Their study suggests that employees with and without a college degree have a different level of job satisfaction. Regarding ethnicity and gender, findings show that employees who are both white and male tend to be more satisfied with their jobs compared to both minority and female counterparts. Zhao et al. also noted that female employees are the least satisfied with their jobs. The study results suggest that employees’ rank and year or service is associated with job satisfaction. One of the primary researchers on job satisfaction, Vroom (1964), developed the expectancy theory to explain the dependence on an individual’s evaluation of a task assignment and level of satisfaction, based on his or her willingness to perform the expected functions of a job. The tow-factor theory of job satisfaction developed by Herzberg (1968) was formulated from research on 1,685 employees in 12 different investigations. Findings from investigations suggest that satisfaction in the workplace is intrinsic to the job with which an employee is directly involved. That is, the stimulus for employees’ satisfaction is derived from job content that is found in the work environment (Herzberg 1968). Herzherg (1968) identified several important sources of job satisfaction in the work environment: (1) the importance of the wok itself; (2) the responsibility one has while doing the work; and (3) the recognition received from doing one’s work. In contrast, job dissatisfaction is a result of strict policies, overemphasis on rules, inadequate working conditions, and poor interpersonal relationships. Therefore, from a theoretical perspective, it seems reasonable to argue that a more comprehensive test of job satisfaction must include variables that measure a variety of job characteristics as well as individual employees’ demographic attributes. One of the most influential models for investigating various dimensions of the immediate job environment was developed by Hackman and Oldham (1980). One key feature of this approach is its ability to measure some of the most important dimensions that can be commonly identified in a workplace at the individual employee level (Griffin & McMahan, 1994; Idaszak & Drasgow, 1987). On the basis of extensive research conducted to refine their measures, Hackman and Oldham (1980) identified five “core” dimensions for evaluating the immediate work environment they found that these core dimensions were correlated significantly with job satisfaction and employees’ motivation. Key among the underlying characteristics are the meaningfulness of the work (to what extend the individual perceives the work as significant and important), responsibility for the job (how far the individual feels personally accountable for the outcomes of the work), and the extent to which the employee has knowledge about the results of his or her efforts. According to Hacman and Oldham (1980), job meaningfulness is conceptualized as the product of five dimensions: skill variety (activities that challenge skills and abilities, dimension 1); task identity (the extent to thick the job requires completion of a “whole,” identifiable piece of work, Dimension 2); task significance (how substantially the job of affects other people’s lives, Dimension 3); responsibility (the extent of the employee’s autonomy over how he or she will perform the work, Dimension 4); knowledge of results (feedback to the employee about the effectiveness of his or her efforts Dimension, 5) . Other groups of researchers define job satisfaction as a positive emotional state resulting from the appraisal of one’s job situation and as linked with the characteristics and demands of one’s work (Arches, 1991; Butler, 1990; Dressel, 1982; Locke, 1976; Smith, Kendall, & Hulin, 1967). From the above discussion it can be seen that organizational researchers have identified a number of possible antecedent constructs of job satisfaction. These include a variety of actionable work-related perceptions and attitudes. For example, supportive supervision is related to increased job satisfaction (Johnston et al., 1990). Likewise, other supportive aspects of the work environment may result in higher levels of job satisfaction (boles & Babin, 1996). Role stress, on the other hand, is negatively related to job satisfaction (Fisher & Gitelson, 1983). In fact, role conflict and role ambiguity may be the most important predictors of job satisfaction in many work settings. The literature concerning job satisfaction is very extensive. The purpose of this study is not to provide an exhaustive review of the job satisfaction literature. The literature cited in this section, however, does indicate that, across a variety of work settings, job satisfaction is an important construct in the workplace and one that is of concern for effective management. 3.1: Relative Importance of Attitude toward Job Satisfaction: The attitudes toward job satisfaction need clarification for exploring their relative importance as they are linked to intra-personal disposition of human beings. In this context, job satisfaction projects individuals’ attitudes involving information that is generally acquired by an employee about workplace over a period of time. It results from the balancing and summation of many specific likes and dislikes of employees experienced in connection with their jobs (Haung, 1999; Ganguli, 1994; Locke, 1976). The attitudes regarding job satisfaction are broadly related to the areas of intrinsic nature of work, wage and security, supervision, and company policies and practices (Ganguli, 1994). The widely used instruments for measuring job satisfaction are: Job Descriptive Index (JDI) and Minnesota Satisfaction Questionnaire (MSQ) that measure mentally challenging work, equitable rewards, and opportunities for promotion, supportive working conditions, and supportive colleagues (Haung, 1999). This factor provides the maximum insights of job satisfaction of bank officers in Bangladesh. It broadly includes the areas of job satisfaction such as, salary, company policies and practices, and promotion chance. The eight variables contain in the factor “salary” are: satisfied with present salary, bank is sympathetic to the officers view, bank appreciates performance, satisfied with increment allocation method, income is higher than other banks, satisfied with the chances of promotion, satisfied with the welfare facilities, and satisfied with the chances of income increase. Hence, the policy makers in the banking sector in Bangladesh should give greater importance on these variables concerning salary, company policies and practices, and chance for promotion to increase job satisfaction of the officers. The second important factor is efficiency in work that accounts for 9.37% of the variance and it broadly covers areas of job satisfaction including job security, supervision, and supportive colleagues. The variables are namely, not lose job if worked efficiently, immediate supervisor is reasonable, satisfied with the recognition by colleagues, and superior encourages suggestions for improvement. The other six factors are almost equal in their ability to account for the variation of level of job satisfaction with comparatively low exigent values. 3.2: Impact of Bank type, work experience, age and sex Differences on Job Satisfaction: Previous researchers have found relationships between job satisfaction and age, sex, (Pugliesi, 1995; Cheung and Scherling, 1999) and work experience (Steffy and Jones, 1990). In this section, the impacts of bank type, work experience, gender, and age on the attitudes, rather than factors, toward job satisfaction of bank officers is assessed. This has been done with a view to obtaining more insights on the impact. The results shows that the variables recovery significantly with the type of bank – public and private. It means that there is a variation in the level of job satisfaction of bank officers depending on the type of bank in Bangladesh In other words; type of bank is a significant explanatory variable for the job satisfaction level. Fourteen job satisfaction variables, broadly representing the areas of company policies and practices, salaries and facilities, opportunities for promotion, and relationship between union and management, are significantly related to the bank type. Work experience has the second most importance on four variables taken in the study (job gives chances to do things felt best, satisfied with increment allocation method, income is higher than other banks, and would not leave job if similar job offer to other organization). These variables confirm a significant relationship with experience of bank officers. These relationships broadly indicate that experience affects the areas of job satisfaction including policies and practices (job gives chances to do things felt best and satisfied with increment allocation method), salary and facilities (income is higher than other banks), and loyalty to the company (would not leave job if similar job offer to other organization). It could be explained that officers with higher experience hold higher level of work freedom, have more financial and non-financial benefits, are more familiar with organizational policies and practices, and have greater loyalty to the bank. Sex and age differences have relatively lower level of impact on the entire set of variables, which are manifested through the significance of ‘bank is sympathetic to officers views’ and ‘banks policy is to overdrive workers to get the maximum’ respectively in the test. Sex differences have only impact on the bank’s sympathy to the officers’ views, while age differences leave impact on bank’s policy to overdrive workers to get the maximum. Sex differences in particular could be described as an interesting issue in the socio-economic context of Bangladesh. It is generally viewed that female employees are somewhat neglected in their work places and consequently, they are prone to a relatively lower level of job satisfaction. This study defies this view endorsing almost no sex discrimination in the female bank officers. Age differences of bank officers have also negligible impact on the full set of variables of job satisfaction. None of the interactions from these four factors – bank type, work experience, sex, and age - was found significant. Chapter- 4 Research Methodology _____________________________________________ 4.0: Methodology: Methodology can properly refer to the theoretical analysis of the methods appropriate to a field of study or to the body of methods and principles particular to a branch of knowledge. Methodology has been increasingly used as a pretentious substitute for method in scientific and technical contexts. “Methodology” is a system of precise rules and procedures on which research is based and against which claims for knowledge and evaluation. This method is neither closed nor flawless. Rather the rules and measures are constantly being improved (David Nachmias, 1992). 4.1: Research design: The researchers for this study have chosen correlation research design. According to the proposed framework the researchers are finding the significant positive or negative change in variables (dependent) because of change in one (independent) variable. The previous graphical representation of the proposed model portrays the pattern and structure of the relationships among the set of measured variables. The purpose of the study is to investigate the relationship of the measured variables and the correlation among the variables. 4.2: Research Approach: To investigate the research questions, the researcher gathered information from bank employees, bank managers and bank experts. All participation was voluntary. If the participants wished to take out, they were free to do so at any time without any condition. All the participants were given a letter from the researcher explaining the context of the research focus. Participants signed a consent form and held in reserve a copy as their record. A signed copy was returned to the researcher. 4.3: Research Instruments: The researcher required primary data to investigate the research problem. Because, it was found that there was lack of secondary data (e.g. articles, journals, magazine, and records on human resource management) in the case of SJIBL. To collect data from the primary sources, the researcher used questionnaire and interview methods. In order to gain information from the bank employees the researcher used the questionnaire method. The questionnaire was a useful method to collect data from employees for the following reasons. First of all, survey about 25 employees of the kawran bazaar branch of SJIBL. Second of all, the existing study was about achievement motivation and employees’ performance, and employees might felt unenthusiastic to confer these issues with an interviewer. The researcher selected the interview method not only for in-depth information but to verify the information gather from responses gained from the employees’ questionnaires. 4.4: Data Collection: 4.4.1: Pilot Test of Questionnaire: The first tread in the data collection was distribution of the pilot test of the questionnaire. The questionnaire was pre-tested with 8 SJIBL employees who were attending training in Bangladesh Institute of Bank Management (BIBM). These employees have worked in different SJIBL branches in Bangladesh. Burns and Bush (1998) suggested that a pre-test of 5-10 representative respondents is usually adequate to identify problems with a questionnaire. Pilot study is done to check out procedures that are to be incorporated into a more extensive study. The results of a pilot study can considerably improve the planning and increase the chances for success of a subsequent larger scale experiment (Saslow, 1987). 4.4.2: Survey Instruments: 4.4.2.1: Questionnaire: The data for the present study were obtained by the administration of a questionnaire, which contained two parts, the first part contained columns for personal information and the second part contained achievement satisfaction scale as constructed and standardized by Au (1979) to measure achievement motivation. The scale consisted of 20 statements concerning achievement themes, namely anti—traditionalism, regularity and punctuality, work habit, initiative, sense of responsibility, risk taking, spirit of independence, optimism, leadership quality and ability to guide, concern for efficiency, spirit of competition and anti fatalism. 4.4.2.2: Interview Schedule: The interview is also used semi-structured interviews as an instrument to collect data from the bank managers and the bank experts. To collect data, the researcher carried out each interview in a face-to-face situation. This draw near to data collection is extremely useful in situations where either in-depth information is needed or little is known in the area (Kumar, 1997). Cooper and Schindler (1998) noted that if the researcher has sample size, a self-administered questionnaire would be most effective in regard to time and cost. The in¬-depth interview distant exceeds the information secured by self-administered studies. Cooper and Schindler also affirm that interviewers can ask additional questions, and gather supplemental information through observation. Both managers and experts are comprised of a small group; hence, the study has utilized the semi-structured interview method. The most important advantage was derived from the capability of the interview technique to enable discussions of multifarious topics and thus endow with rich and more complete data (Smith, Thorpe, & Lowe, 2002). 4.5: Data Collection Procedure: The questionnaire was administered individually to the 25 employees in the study. Respondents were assured that it was purely an academic research and that their personal identity would be kept secret. Any difficulties in understanding the instructions and in the methods of- answering the questionnaire was made clear and it took 20 minutes to answer the questionnaire. After the questionnaires were filled in by the respondents, these were collected and checked for consistency. Scoring of the responses were done following the procedure provided by the author of the achievement satisfaction scale(Ali, 1979).After collection of data, performance of each respondent was taken from the concerned bank manager of each subject. The data were collected during the month of October, 1997. The content of the semi-structured interview consists of question which will be predetermined to gain information about the way managers saw themselves using power, motivational esteems in relation to their employees. 4.6: Data Analysis Procedures: To analyze the quantitative data, the researcher explored the internal structure and measurement qualities of the proposed hypothetical constructs job satisfaction and employees’ performance. The output of the research has shown in graph by using graphical method. Chapter- 5 Analysis & Interpretation _____________________________________________ 5.0: Analysis: The present study deals with the three issues to analyze the job satisfaction of bank officers in Bangladesh. The issues are: (i) the relative importance of job satisfaction factors; (ii) the impact of bank type, work experience, age and sex differences on the attitudes toward job satisfaction. It also investigates the impacts of bank type, work experience, age, and sex differences on the attitudes toward job Satisfaction. The result shows that salary, efficiency in work, fringe supervision, and co-worker relation are the most important factors contributing to job satisfaction. Work experience is found as the second most important factor affecting job satisfaction. Sex and age differences have relatively lower level of impact on it. The overall job satisfaction of the bank officers is at the positive level. 1. A job where the pay is very good. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 0 0 0 0 Disagree 4 16 16 16 Neutral 15 60 60 76 Agree 5 20 20 96 Strongly Agree 1 4 4 100 Total 25 100 100 2. A job where there is considerable is creative and innovative. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 3 12 12 12 Disagree 5 20 20 32 Neutral 10 40 40 72 Agree 5 20 20 92 Strongly Agree 2 8 8 100 Total 25 100 100 3. A job where you are often required to make important decisions. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 3 12 12 12 Disagree 4 16 16 28 Neutral 12 48 48 76 Agree 5 20 20 96 Strongly Agree 1 4 4 100 Total 25 100 100 4. A job in which greater responsibility is given to those who do the best Work. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 0 0 0 0 Disagree 0 0 0 0 Neutral 10 40 40 40 Agree 10 40 40 80 Strongly Agree 5 20 20 100 Total 25 100 100 5. A job in which greater responsibility is given to loyal employees who have the most seniority. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 0 0 0 0 Disagree 2 8 8 8 Neutral 10 40 40 48 Agree 5 20 20 68 Strongly Agree 8 32 32 100 Total 25 100 100 6. A job in which you are not allowed any say whatever in how your work is scheduled, or in the procedures to be used in carrying it out. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 0 0 0 0 Disagree 3 12 12 12 Neutral 10 40 40 52 Agree 8 32 32 84 Strongly Agree 4 16 16 100 Total 25 100 100 7. A job where your co-workers are not very friendly. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 20 80 80 80 Disagree 2 8 8 88 Neutral 3 12 12 100 Agree 0 0 0 100 Strongly Agree 0 0 0 100 Total 25 100 100 8. A job with a supervisor who is often very critical of you and your work in front of other people. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 20 80 80 80 Disagree 2 8 8 88 Neutral 3 12 12 100 Agree 0 0 0 100 Strongly Agree 0 0 0 100 Total 25 100 100 9. A job, which prevents you from using a number of skills that you, worked develop. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 20 80 80 80 Disagree 2 8 8 88 Neutral 3 12 12 100 Agree 0 0 0 100 Strongly Agree 0 0 0 100 Total 25 100 100 10. A job with a supervisor who respects you and treats you fairly. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 0 0 0 0 Disagree 0 0 0 0 Neutral 10 40 40 40 Agree 10 40 40 80 Strongly Agree 5 20 20 100 Total 25 100 100 11. A job which provides constant new and interesting opportunities for you to learn. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 0 0 0 0 Disagree 0 0 0 0 Neutral 15 60 60 60 Agree 8 32 32 92 Strongly Agree 2 8 8 100 Total 25 100 100 12. A job where there is a real chance you could be laid off. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 20 80 80 80 Disagree 2 8 8 88 Neutral 3 12 12 100 Agree 0 0 0 100 Strongly Agree 0 0 0 100 Total 25 100 100 13. A job in which there is a real chance for you to develop new skills and advance in the organization. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 0 0 0 0 Disagree 3 12 12 12 Neutral 10 40 40 52 Agree 8 32 32 84 Strongly Agree 4 16 16 100 Total 25 100 100 14. A job which provides lots of vacation time and an excellent fringe benefit package. Frequency Percentage % Valid Percentage % Cumulative Percentage % Strongly Disagree 0 0 0 0 Disagree 0 0 0 0 Neutral 15 60 60 60 Agree 8 32 32 92 Strongly Agree 2 8 8 100 Total 25