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i IMPACT OF EMPLOYEE EMPOWERMENT ON JOB SATISFACTION IN BANKING SECTOR WITH REFERENCE TO CHENNAI CITY A THESIS Submitted by KOKILA.P in partial fulfillment for the award of the degree of DOCTOR OF PHILOSOPHY Department of Management Studies FACULTY OF MANAGEMENT STUDIES Dr.M.G.R. Educational and Research Institute University (Declared as Deemed to be University u/s.3 of UGC Act 1956) Maduravoyal, Chennai – 95 (An ISO 9001 : 2008 Certified Institution) FEBRUARY 2016
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IMPACT OF EMPLOYEE EMPOWERMENT ON JOB
SATISFACTION IN BANKING SECTOR WITH
REFERENCE TO CHENNAI CITY
A THESIS
Submitted by
KOKILA.P
in partial fulfillment for the award of the degree
of
DOCTOR OF PHILOSOPHY
Department of Management Studies
FACULTY OF MANAGEMENT STUDIES
Dr.M.G.R.
Educational and Research Institute
University (Declared as Deemed to be University u/s.3 of UGC Act 1956)
Maduravoyal, Chennai – 95
(An ISO 9001 : 2008 Certified Institution)
FEBRUARY 2016
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DECLARATION BY THE CANDIDATE
I declare that the thesis entitled “IMPACT OF EMPLOYEE EMPOWERMENT
ON JOB SATISFACTION IN BANKING SECTOR WITH REFERENCE TO
CHENNAI CITY” submitted by me for the degree of Doctor of Philosophy is a bonafide
record of work carried out by me during the period from September 2011 to April 2015
under the guidance of Dr. S. RAMALINGAM and has not formed the basis for the
award of any degree, diploma, associate-ship, fellowship, titles in this or any other
University or other similar institution of higher learning and withoutany plagiarism.
I have also published my papers in International Journals (Scopus rated) as per list of
publications in the Annexure.
Signature of Research Scholar
iii
BONAFIDE CERTIFICATE
Certified that the thesis entitled “IMPACT OF EMPLOYEE EMPOWERMENT ON
JOB SATISFACTION IN BANKING SECTOR WITH REFERENCE TO
CHENNAI CITY” is the bonafide work of Mrs. KOKILA. P who had carried out
the research under my supervision and devoid of any plagiarism to the best of my
knowledge. Certified further, that to the best of my knowledge, the work reported herein
does not form part of any other thesis or dissertation on the basis of which a degree or
diploma was conferred on an earlier occasion on this or any other scholar.
Prof. Dr. S. RAMALINGAM, Ph.D., D.Litt
Senior Professor & Research Supervisor
Faculty of Management Studies
Dr. MGR Educational and Research Institute University,
Maduravoyal, Chennai- 600 095.
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ABSTRACT
Empowered employees believe that their task are significant, they have
considerable freedom in deciding how to command and control organization and they each
handle a whole identifies piece of work. The empowerment comes from individual's
perception by influencingthe desired effects of working environment. It represents the
degree to which an individual feels that his input into their organization's administrative or
strategic decisions is up to the level. Jobs that provide discretion and that are central to be
organizational purpose increase access to these empowering structures.
The hypothesis can be stated as “Impact of Employee Empowerment on Job
Satisfaction in Banking Sector with reference to Chennai city”.
Both primary and secondary data were used for this research. Primary data was
collected to assess the level of empowerment and the level of job satisfaction of the
respondents. Secondary data was collected from various sources. On the beginning, to gain
knowledge about the banking industry secondary data was used. The secondary sources of
data include reports, books, manuals, newspapers, journals and published and unpublished
sources and bank employees associations etc. The method used for primary data collection
is through questionnaires. To assess the level of employee empowerment questions have
chosen from different authors. Similarly to assess the level of job satisfaction a
standardized instrument namely the MSQ - Minnesota Satisfaction Questionnaire
developedbyWeiss et al in 1967 was used.
The population of the study was more than 7825 in number and with this
population; a pilot study was conducted on a sample of 50 respondents in order to arrive at
the appropriate sample size for the research. Hence sample size was derived using the
formula as 513.
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Findings from the Experimentation:
1. The Correlation Coefficient between the overall employee empowerment and
employee satisfaction is 0.795 which indicate 79 percentage positive relationships between
overall empowerment and employee satisfaction and is significant at 1 percent level. This
implies that employee empowerment has very strong influence on employee job
satisfaction.
2. The Multiple Regression Analysis on job satisfaction implies that the impact of
employee self-esteem is the most important variable to improve employee job satisfaction.
The next important variable to induce satisfaction is employee leadership. The next
variable to induce satisfaction is employee power, next follows the employee reward,
employee information and finally the variable employee knowledge is the last to improve
satisfaction.
3. The Structural Equation Model on employee empowerment and employee job
satisfaction reveals that the impact of “employee knowledge” which is a dimension of
employee empowerment is the most important dimension to induce satisfaction. This is
followed by next important dimension “employee self esteem”. This is followed by
dimensions “employee leadership” and “employee power” and finally the dimension
“employee information”.
Conclusion:
The study relates the relationship between employees’ satisfaction and various
dimensions of Empowerment practices. Also findings indicate that employee
empowerment in an employee has very strong relationship to trigger employee satisfaction
in them. Taken together these findings confirm the strong impact of the dimensions of
employee empowerment on employee job satisfaction.
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ACKNOWLEDGMENT
This thesis has served as one of the most profound and challenging learning experiences in
this researcher's career. Indeed, it has provided a strong foundation for my current
initiatives and its impact will certainly continue for many years to come.
I wish to express my profound sense of gratitude and indebtedness to my supervising guide
Dr. S.Ramalingam for his invaluable and untiring guidance, constructive suggestions and
continuous encouragement all through the tenure of my research work.
I offer my sincerest gratitude to my expert member Dr.Ashwini Ravi who have supported
and guided. I am indebted to Dr.R.Jayam for her valuable inputs and encouragements.
I am grateful to Dr. MaliniPande, Head of the Department of Management Studies for her
insightful advices and valuable suggestions.
Special thanks to Dr.S. ArchanaBai, Dr.B. Neeraja, Dr.K. Vimala, Dr.A. Devendran,
Dr. J. Srideviand other Faculties of the department for their encouraging support, positive
attitude throughout the process.
I express my sincere thanks to the Research office staff and Library staff of Department of
Management Studies who were always available and lend a helping hand.
My heartfelt thanks to all the respondents of various banks, who took time away from their
busy schedule for responding to the questionnaire.
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I am indebted to my husband Mr.S.Parthasarathy and our kid Adithi for her kind
understanding, patience, encouragement and unwavering support throughout my extended
student life.
I express my sincere gratitude to my parents and thanks to my mother-in-law and father-in-
law for their unconditional love, support and encouragement throughout the years.
P.KOKILA
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DEDICATION
I would like to dedicate this thesis work of mine,
to my husband and my daughter
who have always been my strength and enduring support behind all my efforts.
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TABLE OF CONTENTS
CHAPTER
NO.
CONTENTS PAGE
NO.
ABSTRACT iv
List of Tables xvi
List of Figures xix
List of Symbols and Abbreviations xxi
1 INTRODUCTION 1
1.1 Rationale behind the study 1
1.2 Background of the Research 2
1.2.1 Importance of Human Resources 2
1.2.2 Human Resource Development in Banks 2
1.2.3 Industry Profile 3
1.2.4 Banking System in India 5
1.2.5 Classification of Banks in India 6
1.2.5.1 Government Banks 6
1.2.5.2 Nationalized Banks 6
1.2.5.3 Private Sector Banks 7
1.2.5.4 Co-operative Banks 7
1.2.5.5 Foreign Banks 8
1.2.6 Banking as a Profession 8
1.3 Justification for the Study 8
1.4 Research Problem and Hypothesis 9
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CHAPTER
NO.
CONTENTS PAGE
NO.
1.4.1 Objective of the study 10
1.4.2 Basics for formulation of Hypothesis 10
1.5 Methodology 13
1.5.1 Method of Study 13
1.5.2 Sampling Design 13
1.5.3 Selection of Respondents 13
1.5.4 Sources of Data 14
1.5.4.1 Primary Data 14
1.5.4.2 Secondary Data 14
1.5.4.3 Tools for Data Collection 14
1.5.4.4 Data Analysis 14
1.6 Definition 15
1.6.1 Human Resource Management 15
1.6.2 Employee Empowerment 15
1.6.3 Power 15
1.6.4 Reward 15
1.6.5 Information 15
1.6.6 Knowledge 15
1.6.7 Leadership 15
1.6.8 Self Esteem 15
1.6.9 Employee Satisfaction 16
1.6.10 Employee Motivation 16
1.6.11 Training and Development 16
1.6.12 Bank 16
1.6.13 Banking Sector 16
1.6.14 Research Methodology 16
1.6.15 Pilot Study 16
1.6.16 Likert Scale 17
1.6.17 Research Design 17
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CHAPTER
NO.
CONTENTS PAGE
NO.
1.6.18 Sampling Error 17
1.6.19 Significance Level 17
1.6.20 Survey 17
1.6.21 Variable 17
1.6.22 Structural Equation Model 17
1.7 Outline of the Report 18
1.7.1 Chapter 1 18
1.7.2 Chapter 2 18
1.7.3 Chapter 3 18
1.7.4 Chapter 4 19
1.7.5 Chapter 5 19
1.8 Delimitations of Scope and Key Assumptions 19
1.9 Conclusions 19
2 REVIEW OF LITERATURE 20
2.1 Introduction 20
2.1.1 What is Employee Empowerment 21
2.1.2 Various Definitions of Employee Empowerment 21
2.1.3 Importance of Employee Empowerment 22
2.2 Parent Disciplines and Classification Models 24
2.2.1 The Conger and Kanungo Model 25
2.2.2 Thomas and Velthouse Mode 28
2.2.3 Altizer Model 31
2.2.4 Thomas and Thymon Model 32
2.2.5 The Spreitzer Model 33
2.3 Developing and Current Literature 35
2.4 Classic Empowerment Approaches 36
2.4.1 Social Structural Empowerment Approach 36
2.4.2 Psychological Empowerment Approach 41
2.5 Earlier Literature 44
2.5.1 Power and Empowerment 44
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CHAPETER
NO.
CONTENTS PAGE
NO.
2.5.2 Knowledge and Empowerment 45
2.5.3 Reward and Empowerment 46
2.5.4 Information and Empowerment 47
2.6 Immediate Discipline 48
2.6.1 Employee Satisfaction 48
2.6.2 Definition of Employee Satisfaction 48
2.6.3 Importance of Employee Satisfaction 49
2.6.4 Factors that influence Employee Satisfaction 49
2.6.5 Sustain the Employee Satisfaction 51
2.7 Theories and Analytical Models 51
2.7.1 Intrinsic and Extrinsic Factors 51
2.7.2 Content Theories 52
2.7.3 Motivation/Hygiene (Two Factor Theory) 52
2.7.4 Process Theories 53
2.7.5 Expectations and Equity Theory 54
2.7.6 Reference Group Theory 54
2.7.7 Need and Fulfillment Theory 55
2.7.8 Work Adjustment Theory 55
2.7.9 Job Characteristic Model 56
2.7.10 Dispositional Theory 56
2.7.11 Affect Theory 57
2.8 Measuring Job Satisfaction 57
2.9 The Gaps Identified from the Review of Literature 58
2.9.1 Gap Identified 60
2.10 Area of the Study Identified 60
2.11 Conclusion 61
3 RESEARCH METHODOLOGY 62
3.1 Introduction 62
3.2 Justification of Methodology 62
3.3 Scope of the Research 63
xiii
CHAPTER
NO.
CONTENTS PAGE
NO.
3..3.1 Independent and Dependent Variables 63
3.4 Methodology 63
3.4.1 Descriptive Study 64
3.5 Population 64
3.6 Sample 65
3.6.1 Determination of Sample Size 66
3.7 Research Instruments for Data Collection 66
3.7 Measurement Scale Used 66
3.8 Pilot Study 66
3.8.1 Validity 67
3.8.2 Content Validity 67
3.8.3 Reliability 67
3.8.4 Confirmatory Factor Analysis 69
3.9 Research Method 70
3.10 Method of Data Collection and Analysis 70
3.10.1 Data Collection 70
3.11 Method of Study 71
3.11.1 Sampling Design 71
3.11.2 Selection of Respondents 72
3.12 Sources of Data 72
3.12.1 Primary Data 72
3.12.2 Secondary Data 72
3.13 Tools for Data Collection 72
3.14 Data Analysis 73
3.15 Descriptive Analysis 73
3.16 Structural Equation Modeling 74
3.17 Ethical Considerations 74
4 ANALYSIS OF DATA 78
4.1 Introduction 78
4.2 Descriptive Analysis on Sample 78
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CHAPTER
NO.
CONTENTS PAGE
NO.
4.3 Profile of the Respondents 78
4.4 Inferential Analysis on Sample 90
4.6 Structural Equation Model on Employee Empowerment 118
4.7 Conclusion 124
5 SUMMARY OF FINDINGS, CONCLUSION AND
SUGGESTIONS
125
5.1 Introduction 125
5.2 Summary of Findings 127
5.2.1 Profile of Employees 127
5.2.2 Level of Empowerment 128
5.2.3 Level of Employee satisfaction 128
5.2.4 Difference between Gender and dimensions of
employee empowerment
128
5.2.5 Difference between Types of Bank and dimensions
of employee empowerment
129
5.2.6 Difference between Age Group and dimensions of
employee empowerment
129
5.2.7 Difference between Educational Qualification and
dimensions of employee empowerment
130
5.2.8 Difference between Designation and dimensions of
employee empowerment
131
5.2.9 Difference between Experience and dimensions of
employee empowerment
131
5.2.10 Difference between Number of Training
anddimensions of employee empowerment
132
5.2.11 Difference between Monthly Incomes and
dimensions of employee empowerment
132
5.2.12 Association between Gender and dimensions of
employee Satisfaction
133
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NO.
CONTENTS PAGE
NO.
5.2.13 Association between power, rewards, information,
knowledge, self-esteem and leadership
134
5.2.14 Relationship between dimensions of employee
empowerment and dimensions of employee
Satisfaction
135
5.2.15 Relationship between dimensions of employee
empowerment and dimensions of employee
Satisfaction
135
5.2.16 Structural Equation Model on Employee
Empowerment
137
5.3 Suggestions 138
5.4 Implications of the Study 140
5.5 Scope of Further Research 140
5.6 Conclusions
APPENCIES
REFFERENCES
LIST OF PUBLICATIONS
141
143
148
161
xvi
LIST OF TABLES
TABLE
NO.
CONTENT PAGE NO.
3.1
3.2
3.3
3.4
3.5
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
List of Selected Banks in Chennai
Reliability Test for Data Collection Instrument
Cronbach Alpha Values
Confirmatory Analysis Test for Data Collection Instrument
Confirmatory Analysis Test for Data Collection Instrument
Frequency Distribution of Gender of Employees
Frequency Distribution of Age Group of Bank Employees
Frequency Distribution of Educational level of the Bank
Employees
Frequency Distribution of Designation of Bank Employees
Frequency Distribution of Level of Experiences of Bank
Employees
Frequency Distribution of Level of Trainings of Bank
Employees
Frequency Distribution of Category of Bank Employees
Frequency Distribution of Level of Monthly Income of Bank
Employees
Frequency Distribution of Level of Employee Empowerment
of Bank Employees
Frequency Distribution of Level of Employee Satisfaction of
Bank Employees
65
68
69
69
69
80
81
82
83
84
85
86
87
88
89
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TABLE
NO
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
CONTENT
Student Test for Significant Difference between Male and
Female with respect to Dimensions of Employee
Empowerment
Student Test for Significant Difference between Public and
Private with Respect to Dimensions of Employee
Empowerment
ANOVA for Significant Difference between Age Group and
Dimensions of Employee Empowerment
ANOVA for Significant Difference between Educational
Qualification and Dimensions of Employee Empowerment
ANOVA for Significant Difference between Designations and
Dimensions of Employee Empowerment
ANOVA for Significant Difference between Experiences and
Dimensions of Employee Empowerment
ANOVA for Significant Difference between Number of
Training Attended and Dimensions of Employee
Empowerment
ANOVA for Significant Difference between Monthly Income
and Dimensions of Employee Empowerment
Chi-Square Test for Association between Gender and Level
Of Employee Satisfaction Of Bank Employees
Chi-Square Test for Association between Age Group and
Level Of Employee Satisfaction Of Bank Employees
Chi-Square Test for Association between Educational
Qualification and Level Of Employee Satisfaction Of Bank
Employees
Chi-Square Test for Association between Categories of Bank
And Level Of Employee Satisfaction of Bank Employees
Chi-Square Test for Association between Monthly Incomes
And Level Of Employee Satisfaction of Bank Employees
PAGE NO.
90
92
93
95
96
98
99
101
103
104
105
106
107
xviii
TABLE
NO.
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31
CONTENT
Chi-Square Test for Association between No. of Training
Attended And Level of Employee Satisfaction of Bank
Employee
Chi-Square Test for Association between Level of Employee
Empowerment and Level of Employee Satisfaction of Bank
Employees
Friedman Test for Significant Difference between Mean
Ranks towards Dimensions of Employee Empowerment.
Pearson Correlation Coefficient between Power, Rewards,
Information, Knowledge, Self Esteem and Leadership
Pearson Correlation Coefficient between Dimensions of
Employee Empowerment and Employee Satisfaction.
Variables in Multiple Regression Analysis
Variables in the Structural Equation Model Analysis
Model fit summary
PAGE NO.
109
110
111
112
114
116
122
123
xix
LIST OF FIGURES
FIGURE
NO.
CONTENT PAGE NO.
2.1
2.2
2.3
2.4
3.1
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
Five stages in the process of empowerment
Cognitive Model of Empowerment
Empowerment Grid
Nomological Network of Psychological Empowerment in the
Workplace
Conceptual Model discussing the Impact of Employee
Empowerment on Job Satisfaction
Bar Diagram Represents Gender of Bank Employees
Bar diagram represents age group of the employees in years
Bar diagram represents Educational qualification of the bank
employees
Bar diagram represents the designation of bank employees
Bar diagram represents the levels of Experiences of bank
employees
Bar diagram represents the Level of Trainings of bank
employees
Bar diagram represents the Category of bank employees
Bar diagram represents the monthly Income of bank
employees
26
30
33
34
75
80
81
82
83
84
85
86
87
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FIGURE
NO.
4.9
4.10
4.11
CONTENT
Bar diagram represents the Level of Employee Empowerment
of bank employees
Bar diagram represents the Level of Employee Satisfaction
Structural Equation Model on Employee Empowerment on
Employee Job Satisfaction
PAGE NO.
88
89
121
xxi
LIST OF ABBREVIATIONS& SYMBOLS
AGFI : Adjusted Goodness of Fit Index
ANOVA : Analysis of variance
CEO : Chief Executive Officer
CFA : Confirmatory Factor Analysis
CFI : Comparative Fit Index
DMRT : Duncan Multiple Range Test
DV : Dependent Variable
EE : Employee Empowerment
EFM : Enterprise Feedback Management
ES : Employee Satisfaction
GDP : Gross Domestic Product
GFI : Goodness of Fit Index
HRD : Human Resource Development
IBA : Indian Bank’s Association
ILO : International Labour Organization
IRT : Item Response Theory
IV : Independent Variable
JCM : Job Characteristics Model
xxii
JDI : Job Descriptive Index
JSS : Job Satisfaction Survey
MPS : Motivating Potential Score
MSQ : Minnesota Satisfaction Questionnaire
OB : Organizational Behavior
PE : Psychological Empowerment
PNB : Punjab National bank
POS : Perceived organization support
QWL : Quality of Working Life
RMR : Root Mean Square Residual
RMSEA : Root Mean Square Error of Approximation
SBI : State Bank of India
SEM : Structural Equation Modeling
SPSS : Statistical Package for the Social Science
1
CHAPTER 1
INTRODUCTION
Our country, India is an independent democratic nation. With nearly one billion
citizens, India is the second most thickly populated nation in the world. It is very tricky to
speak of any one Indian culture, although there is deep intellectual steadiness that attaches
its people together. India's journey on the path of economic reforms has transformed it to
one of the world's best growing economies. Its large and increasing population is its best
asset and can quadruple GDP and propel India to the confederation of urbanized
economies over the next decade. All this is possible, if a billion can be transformed
into productive employees.The economy of India is the tenth largest in the world
by nominal GDP and the third biggest by purchasing power parity.
The Indian money market is classified into the organized sector like private, public
and foreign commercial banks and cooperative banks which together known as scheduled
banks and the unorganized sector which includes individual or bankers or money
lenders and non-banking financial companies.
1.1. RATIONALE BEHIND THE STUDY
Many managers feel that their passion is not echoed thought the organization. They
complain that staffs are coming to work late, leaving early, and not completing tasks on
time, taking more days off due to illness and complying about all the new plans for future.
Employees are totally frustrated by the lack of enthusiasm, low morale; suspicion and
general apathy that surround the employees should be jumping for joy because they have a
job.
Employees in many businesses carry out at only 10-25 percent of their capacity.
Others may be working flat out but not realizing much for their hard work except for a
high level of stress and job burnout. When arising in performance is desired, as Charles
2
handy has observed, a redoubling of effort is often the result. Unfortunately the efforts are
often wrongly placed and fail to achieve decided objectives. This can be due to the
information that is irrelevant or unreachable and unrealistic objectives, even though have
skills and personal competencies that are necessary for successful performance and attain
satisfaction.
The world of work is shifting so fast that employees are anguishing from low job
satisfaction, poor morale, stress, absenteeism and poor job performance. There will be no
letting up on the pressure to perform at work. When people are given a repetitive job,
which is too small for them, they become bored, uninterested and probably make costly
errors. Over a long period of time people can become resentful and depressed. Others turn
to outward expression of hostility and may even damage equipment and sabotage
production. Mounting evidence from studies of job satisfaction and stress at work supports
this view. Many of these problems come from treating people simply as machine that has
to complete a specific task in a given period.
Much managerial work is conducted at breakneck peace, a peace that may even
have a clear direction but is passed out at a fur ion rate that is a rate that may have an
unpredictable pattern and comes in fits and starts. Planting people to these occupational
conditions makes demands on them that they have little control over and are ill- prepared
to deal with. Work itself should be the arena for the personal satisfaction and vibrant
performance of people. If you accept anything less you will get less. Simply expecting
employees to be happily, contended and outstanding at work, whatever they do is wishful
thinking. Being clear about people have to achieve at work is important. People and
organizations need to know the direction they are travelling in. but equally, if they are band
of unwilling travelers, they will be a drag on the direction of the organization. The obvious
is that people are the sources of all success. By creating the conditions for significant
personal learning amongst employees in the organization, the likelihood of its success is
increased. It requires management commitment and practical counseling skills that
facilitate and empower employees to deal with their problems at work and to make that
most of them in their organizational employee satisfaction.
Empowered employees strongly believe that their task are significant, they have
significant freedom in deciding how to command and manage organization and they each
touch a whole recognize piece of work. Empowerment provides for a more efficient, cost-
3
efficiency kind of control than command and manages organization, argues Jim
Durcan(1974).
Hence empowerment motivates people from inside. Money is important but is not
the sole or primary criterion influencing employee motivation. Job satisfaction,
opportunity to develop new skills, decision making etc are often equal to financial rewards
in employee scale of standards.
But empowerment is relatively a new concept in India. Studies, of course, have
been made on the effect of motivation from sources other than empowerment. Hence the
motivational aspects of empowerment in Indian condition become an interesting topic for
research.
1.2 BACKGROUND OF RESEARCH
1.2.1 Importance of Human Resources
The human resource is, of all resources delegated to man, the most productive, the
most versatile and the most resourceful. Human resources constitute the most important
and indispensible constituent in any economy. Their uniqueness renders it basically
impossible to alternate them with any other reason, however important it might be, as
nobody can match the human mind in working out astonishing sensations at times. Hence
human resource world have come to claim “a dominant importance in organizing of human
resources”.
The human factor comprises skills, aptitude, knowledge and innovative strength
protect in human minds concerned in a particular organization. An observation made by
Adam Curle in this regard is that a country’s under development is a direct consequence of
the under development of its nation. Additionally, “the dissimilarity in the height of
economic growth of the countries is largely a reflection of differences in the brilliance of
their human resources.” The key ingredient in this proposition is that values, attitudes
general direction and value of the people of a kingdom choose its financialprogress.
1.2.2 Human resource development in banks
HRD is a nonstop process to guarantee the expansion of employee competencies,
dynamics, motivation and effectiveness in a systematic and planned manner. The idea of
HRD is gaining widespread currency in India as well as several other developing countries
of the world. Some pursue it like Zealots, while curtain others see it as the current fad in
4
management circles, which must be trailed to keep up with the Joneses. Yet, there are
shutter others who see it with absolute distrust. However idea is still developing and taking
shape, it is not fair to delimit its scope and coverage.
The HRD movement in banks is gradually building ahead. A majority of the banks
have setup separate HRD departments (HRDDs) within a decade of functioning; HRDDs
in some banks have gained certain creditable success. The comprehensive criticism of the
presenting HRD function as “Ornamental Appendages” cannot be justified. On the other
hand, it is true that HRDDs functioning in a majority of the banks is far from satisfactory.
There are many banks, along with training; assured other activities like manpower
planning and performance appraisal have been introduced. Yet, some other banks have
made rapid strides as far as the introduction of new HRD activities and sub-systems, such
as methodical training, quality circles and staff meetings are concerned. Besides
introducing these systems, some banks have also taken significant efforts in perfecting
certain systems like training and performance appraisal. Nevertheless, there is a broad
spread feeling in banking industry that there are no sufficient pay off from the HRD
functions and system at the operational level are regulated to level of rituals.
1.2.3 Industry profile
The banking system in India is in a state of significance change that began with the
economic liberalization policies that were established in 1991. Fundamentally, the
strategies allowed for privatization of banking through changes in regulation that provided
to reduce the barricade to entry in the organization.
While the process began in 1991, it was in 1993 when the Reserve Bank of India presented
new entrants into the banking markets. Despite this, the movement towards allowing the
new private banks to enter has been slow with nine new banks being formed them fewer
than 10% with the remainder being state owned. Although banks in India have slowly been
incorporating technology, the difference of technology has been somewhat slow with
relatively greater usage occurring primarily among the newer.
The new banks in India are characterized by a strong emphasis on the traffic side of
banking as well as their use of technology. In other words, their way of operating is not
different from the ones witnessed not different from the ones witnessed in the US or
Europe. Although the presence of these private banks has served to increased competitive
pressure on the state-owned banks currently, efforts to foster competitive among the
5
nationalized banks have, in general, not been very effective. However, the Reserve Bank of
India continuous to move toward greater economic liberalization. The Indian financial and
credit policy has adopted in early 1997 as broad economic implication.
1.2.4 Banking System in India
Banking industry is the backbone for our Indian economy and is the key indicator
to see and analyze the level of development of a country. The first bank in India, called
The General Bank of India was recognized in the year 1786. The East India Company
established The Bank of Bombay (1840), Bank of Bengal/Calcutta (1809) and Bank of
Madras (1843). The following bank was Bank of Hindustan which was recognized in 1870.
These three entity units (Bank of Calcutta, Bank of Bombay, and Bank of Madras) were
called as Presidency Banks. Allahabad Bank which was recognized in 1865 was for the
first time totally sprints by Indians. Punjab National Bank Ltd was set up in 1894 with
headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,
Canara Bank, Indian Bank, and Bank of Mysore were associated. In 1921, all presidency
banks were combined to 22 from the Imperial Bank of India which was loped by European
Shareholders. After that the Reserve Bank of India was recognized in April 1935. At the
time of first stage the expansion of banking sector was very deliberate. Between 1913 and
1948 there were about 1100 small banks in India. To modernize the functioning and
behavior of commercial banks, the Government of India came up with the Banking
Companies Act, 1949 which was later on altered to Banking Regulation Act 1949 as per
modifying Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with
widespread powers for the administration of banking in India as a Central Banking
Authority.
After self- governance, Government has taken most imperative steps in regard of
Indian Banking Sector reforms. In 1955, the Imperial Bank of India was publicly owned
and was given the name "State Bank of India", to act as the major agent of RBI and to
handle banking dealings all over the country. It was reputable under State Bank of India
Act, 1955. Seven banks forming subsidiary of State Bank of India was publicly owned in
1960. On 19th July, 1969, major procedures of nationalization were passed out. At the
same time 14 major Indian commercial banks of the nation were nationalized.
6
In 1980, an extra six banks were publicly owned, and therefore increase the number
of nationalized banks to 20. Till the year 1980 roughly 80% of the banking section in India
was under government’s ownership. On the implication of Narsimhan Committee, the
Banking Regulation Act was amended in 1993 and thus the gates for the new private sector
banks were unlocked.
The various banking system accessible in India are as follows:
Financial System.
Monetary System.
Ministry of Finance.
Reserve Bank of India.
Indian Bankers Association.
1.2.5 Classification of banks in India:
All the banks in India are grouped as per the classifications:
Government Banks
Nationalized Banks
Private Banks
Co-operative Banks
Foreign Banks
1.2.5.1 Government Banks
RBI and government banks (SBI) were created by an Act of Parliament. RBI is the
single largest share holders of the bank 59.73% of share holding and balance government
banks (SBI). SBI is the largest bank in India in terms of profit, assets, deposits, branches
and employees. It has 9000 branches in India and 51 foreign offices in 32 countries. The
bank command 1/5th
of the total deposit and loan in all scheduled commercial branches in
the country.
1.2.5.2 Nationalized Banks
Until independence, the banks were primarily annunciated with city culture. In
order to attain the social and economic objective of the country, the banks have to extend
out into rural and unbanked regions and make credit accessible to large operates of these
areas. In 1st April 1980, in order to offer government more power and authority over credit
7
delivery, six more commercial banks in India be nationalized. In 1993, New Bank of India
amalgamated with Punjab National Bank (PNB), which brings the number of nationalized
banks in India to 19. It is the only combination between two Indian nationalized banks in
India. It is also the only merger between two Indian nationalized banks in India that saw an
expansion rate of around 4%, which was close to standard growth rate of country
economy.
1.2.5.3 Private sector Banks
In the rise of the Swedish movement, an associate of private banks with Indian
management was recognized in country in 1985. There have been a number of hinders to
the banking industries. the majority of the banks unsuccessful due to incorrect policies
followed by their management so that government with its socialist control over the
commercial bank was nationalized. Today there are 32 private banks including a newly
formed private sector bank.
1.2.5.4 Co-operative Bank
The co-operative primary societies in a particular area of group into a central
society, because which is called central bank or banking union. When the co-operative
societies act approved in 1904 there was no stipulation for the creation of central bank. The
subsidized of the co-operative movement expected that the rural credit civilization would
be able to attract considerable deposit from the members and well to do. Sections of the
village society and their savings would be obtainable to meet the wants of the deprived in
the villages. The remote and badly administered societies failed, in the first example, to tap
fund from the richer, secondly they possibly will not augment their own capital by hopeful
thrift and self-help among their members.
As the group gained in commonly, the societies in progress rising in number by
leaps and bounds. But the financial arrangements envisaged did not yield enough money to
meet their growing requirements. The co-operative societies act was therefore, amended in
1912 with a view to permitting registration of a central societies.
The captain objects of central co-operative banks in to meet the credit requirements
of meet the credit requirements of member’s societies. They finance agricultural credit
societies for production purpose, market societies for marketing and supply operation and
industrial and other societies for working expenses.
8
1.2.5.5 Foreign Bank
The foreign Banks are fundamentally commercial banks like any other. They
operate mostly in big cities like New Delhi, Mumbai, Kolkata, Chennai and Bangalore.
Today there are 18 foreign banks operation in India.
1.2.6 Banking as a Profession
Banking as a profession has been present since the man in progress trading among
cities and countries around the world. It has altered its shape and form. The Banking
industry as we know it today is a result of modernism that took place in the 16th, 17th and
19th century, and banking industry has become one of the most controlling driving forces
of the systems around us.
Today’s modern Banking industry can be separated into several different sectors or
categories, and within these sectors there are professions that a business graduate can
apply. In defining a “profession”, there will always be a requirement for extensive
education and some formal qualification usually achieved through assessment. A
“profession” will have one or more narrow bodies. There will be a code of principles. All
concepts of professionalism compriseanobligation for knowledge and understanding.
1.3 JUSTIFICATION FOR THE STUDY
A main goal of organizations is to assist employees satisfy their wants in warp that
promote both the individual and organizational. The impact of miserable employees can be
costly through decreased productivity and possibly high income.
Empowerment is additional a tool that organization can use to promote employee
trustworthiness and increase productivity. It is a process that influences all the
relationships with an organization and influences many areas such as pay, promotion, job
design, training opportunities and reporting relationships. Therefore, business can motivate
employees by paying equitably, rewarding dedication and recognizing exceptional
performance and creativity.
Empowerment is inexpensive motivation that causes us to act. The motivation may
be a required or a drive that energies positive manners. At work, empowering is a mixture
of all factors in our operational environment that leads to positive and negative effects. In
the point of view, all organizations make some effort to motivate employees. Thus, an
9
increasing number of organizations are introducing new strategies, including different
reward packages, as means of empowering today’s employees.
Normally the performance of employee’s increases feels satisfied during the middle
effects of reward. In order to empower employees for better organizational performance, it
would be essential to offer incentives and situational factors in such a way that their
personnel wants are incorporated with organizational goals.
Empowerment is a purpose of interaction between the requirements in the
individual and the incentives in the setting as he perceives them. Hence, in empowering
employees, power information reward knowledge leadership self esteem plays an
important role and therefore, the bank pays a special notice to these areas.
Thus, a great emphasis is laid on the present study.
1.4 RESEARCH PROBLEM AND HYPOTHESIS
The bank employees in Chennai city face enormous number of problems. At the
same time they also possess fascinating avenues for the prospective development.
Employee satisfaction is a primary concern of the employees to realize their personal and
career growth. The employees prefer economic independence and proper organization
status to devote their abilities to increase individual efficiency as well as organizational
efficiency. The productivity and services of employees is proportionate to the
organizational development, employee development and their total efficiency in
production and services.
This study clearly aims at ascertaining level of empowerment towards level of
satisfaction of the employees in banks at Chennai city. It also identifies the events of the
banks and their industry in empowering the employees. The study mainly focuses in
studying the present factors of empowerment. Empowerment outputs of the bank and its
incidental impact on individual level employee satisfaction. This problem is exactly
encountered in the thesis to throw certain lights on the relationship between empowerment
and satisfaction of employees in banking sector at Chennai city.
The review of pertinent literature showed that employee empowerment and
employee satisfaction has been studied extensively in relation to different variables. But
much of it has done on the industrial set up; hence there is lack clear cut information on the
socio economic organization such as a ‘bank’. Further no comparisons have been reported
10
of employee’s empowerment and employee satisfaction in public and private banks in
Chennai city.
Considering the amount of knowledge obtained, a study should be undertaken to
shed off the shyness over the private and public sector bank in Chennai city. In recent
years the banking industry has undergone a great many changes. Banks are increasing in
number, and with each new branch being opened more number of persons are recruited.
The attitude of these persons which is one of human relation leads us to study their level of
empowerment towards level of satisfaction of the employees in banks.
The problems addressed for this study are:
What is the degree of employee empowerment in banks?
Do employees in banks have more empowered in terms of power, knowledge,
information, reward, leadership and self-esteem?
Does employee empowerment impact on job satisfaction of employees?
1.4.1 Objective of the study
The objectives of the study are as follows:
To find the significant difference between demographic variables with regard to
employee empowerment.
To find the association between employee demographic features and employee
satisfaction.
To find the most significant factor toward employee empowerment.
To find the factor influence employee empowerment towards employee
satisfaction.
To find the relationship between factors towards employee empowerment.
To find the relationship between employee empowerment and employee
satisfaction.
To validate the conceptual model developed by the researcher through Structural
equation modeling (SEM).
1.4.2 Basics for formulation of hypothesis
A serious review of literature pointed out a few facts contains behavioral
constructs.
11
Wagner and Harter (2006) says empowered employees with advanced levels of
satisfaction than organizations with more planned, hierarchical, and less flexible work
atmosphere. In this atmosphere where employees were empowered, employees were
contracted the power to recognize problems, provide solutions, and make important effect.
Improved responsibility, bendable work schedules, a pleasurable work culture, and public
gratitude for success legend all contributed to the employees’ sense of feeling empowered.
In return, employees rate their satisfaction levels as high evaluated to other organizations
with cultures that illegality employee empowerment.
There are a number of aspects affecting job satisfaction related to the
establishment, such as employment status (permanent, temporary), period of employment,
position of the organization, content of the work, employment position. Opportunities to
hone skills, decision-making style of superiors, the schedule of the work, wages,
promotion opportunities, chance for self-development, physical conditions, shifts, job-
family variation, organizational support, input in the decision-making process, kindred
with colleagues, benefits, job security, organizational culture, organizational climate, job
orientation, employee empowerment, understaffing and job-employee adaptation, as well
as such demographic factors as age, gender, marital status, and level of education.
Hypothesis I
There is no significant difference between male and female with respect to
dimensions of Employee Empowerment of Bank Employees.
Hypothesis II
There is no significant difference between Public Bank and Private Bank with
respect to dimensions of Employee Empowerment of Bank Employees.
Hypothesis III
There is no significant difference between age group and dimensions of Employee
Empowerment of Bank Employees.
Hypothesis IV
There is no significant difference between Educational Qualification and
dimensions of Employee Empowerment of Bank Employees.
12
Hypothesis V
There is no significant difference between Designations and dimensions of
Employee Empowerment of Bank Employees.
Hypothesis VI
There is no significant difference between Experiences and dimensions of
Employee Empowerment of Bank Employees.
Hypothesis VII
There is no significant difference between number of training attended and
dimensions of Employee Empowerment of Bank Employees.
Hypothesis VIII
There is no significant difference between Monthly Income and dimensions of
Employee Empowerment of Bank Employees.
Hypothesis IX
There is no association between gender and level of employee satisfaction of bank
employees.
Hypothesis X
There is no association between age group and level of employee satisfaction of
bank employees.
Hypothesis XI
There is no association between educational qualification and level of employee
satisfaction of bank employees.
Hypothesis XII
There is no association between category of bank and level of employee
satisfaction of bank employees.
13
Hypothesis XIII
There is no association between monthly income and level of employee satisfaction
of bank employees.
Hypothesis XIV
There is no association between no. of training attended and level of employee
satisfaction of bank employees.
Hypothesis XV
There is no association between Level of Employee Empowerment and level of
Employee Satisfaction of bank employees
Hypothesis XVI
There is no significant difference between mean ranks towards dimensions of
Employee Empowerment satisfaction of bank employees.
1.5 METHODOLOGY
A descriptive research design has been used for the purpose of this study. The
purpose of descriptive research is to describe the state of dealings as it exists at present.
The researcher can report on what has happened and what is happening. This design is
used to describe the prevailing practice of employee empowerment towards employee
satisfaction.
1.5.1 Method of study
The researcher adopted survey method to collect data for the study.
1.5.2 Sampling Design
The researcher takes on Multi Stagesampling technique.
1.5.3 Selection of Respondents
The respondents for the study are drawn from low level employees to top level
employees as they have equal importance in their roles and responsibilities. By using Multi
stage sampling method 513 respondents from the banking sector have been selected for
14
this research. The respondents were selected randomly from among those working for a
minimum period of 6 months. The minimum age of respondents is in the minimum range
of 22 to 25 years and maximum is 55 years. The educational qualification is an
undergraduate while choosing respondents; care was taken to represent all functional areas
so that the sample can be considered as truly representative of the population.
1.5.4 Sources of Data
1.5.4.1 Primary Data
This study is mostly based on primary data collected from the 513 employees
working in selected banks in and around Chennai.
1.5.4.2 Secondary Data
The secondary data has been collected from books, journals, reports, personal
meeting, seminars and web based resources.
1.5.4.3 Tools for Data Collection
The tool used for study is Questionnaire.
In any service setting survey, a rapport between the researcher and the respondents
is crucial for its success. Bearing this in mind, the researcher has been to these banks under
study to meet the respondents, explain to them the purpose of the study and seek their
cooperation.
1.5.4.4 Data Analysis
Once the data collection, the questionnaire was checked for wholeness. The
statistical package for social science SPSS Version 15.0 was used for processing and
analyzing primary data.
The following statistical tools were used for the analysis of data.
Reliability analysis
Confirmatory test analysis
Chi square test
ANOVA test
Pearson correlation analysis
Regression analysis
15
Multiple regression analysis
1.6 DEFINITIONS
1.6.1 Human Resource Management: Human resource management is the planning;
organizing, directing and controlling of the securing, advancement, and resources to the
end those individual and societal objectives are accomplished.
1.6.2 Employee Empowerment: Management practice of sharing information, rewards
and power with employees so that they take initiative and formulate choice to solve
problemsand improve service and performance. Empowerment is pedestal on the idea that
providing employees skills, resources, authority, opportunity, motivation, as well
holdingthem responsible and accountable for outcomes of their actions, will provide to
their competence and satisfaction.
1.6.3 Power: the capability or ability to direct or manipulate the behavior of others or the
course of events.
1.6.4 Reward: Compensation and benefits is a sub-discipline of human resources,
paying attention on employee compensation and benefits policy-making.
1.6.5 Information: Data that is (a) precise and timely, (b) exact and organized for a
purpose, (c) existing within a context that gives it meaning and relevance and (d)
can lead to an increase in sympathetic and decrease in uncertainty.
1.6.6 Knowledge: Awareness or sympathetic of a condition or fact, gained
throughout association or experience.
1.6.7 Leadership: The act of inspiring subordinate to perform and engage in achieving a
goal.
1.6.8 Self-esteem: confidence in one's own worth or capability; self-respect.
16
1.6.9 Employee Satisfaction: Employee satisfaction explains if an employee is pleased
with their job and the manager. Some of the factors that donate to employee satisfaction
include empowerment of the employee, good salary, good benefits and distinguishing good
performance.
1.6.10 Employee Motivation: Employee motivation illustrates an employee's basic
eagerness about work and enticement given to accomplish work. Motivating employees
about work is the intermingle of satisfying the employee's requirements and prospect from
work and workplace factors that facilitate employee motivation.
1.6.11 Training and Development: The official and ongoing educational activities
within organization calculated to enhance the fulfillment and performance of employees.
Training and development programs obtainable by a business might include a variety of
educational techniques and programs that can be listen on a obligatory or voluntary basis
by staff.
1.6.12 Bank: An organization authorized by a government to believe deposits,
pay interest, clear checks, make loans, act as an mediator in monetary transactions, and
provideother financial services to its customers.
1.6.13 Banking sector: Banks and other fiscalinstitutions whichprovide lending and
investments.
1.6.14 Research methodology: The development used to collect information and data for
the reason of construction business decisions. The methodology canembrace publication
research, interviews, surveys and other research techniques and can include both present
and historical information.
1.6.15 Pilot Study:Research passed out before starting the actual study plan when it is
required to test the research tools. In a pilot study a small number of trial interviews are
carried out to check whether all questions from the questionnaire are obvious to the
respondents and whether they make sense etc.
17
1.6.16 Likert scale: One of the majority known measurement scales, extensively used in
marketing, market and social research. The name of the scale comes from the name of its
organizer, Likert and used to be more complex; currently a simplified version is used.
1.6.17 Research design: A Printed description of the way of carrying out a research
project.
1.6.18 Sampling Error: Sampling error is an error, which is unspecified, with a defined
value to the consequences of a study carried out on a random sample; the value of the error
gets smaller with the growing size of the sample. Sampling error is also called standard or
statistical error.
1.6.19 Significance Level: A determined probability that the correlation between
variables, pragmatic in a sample is also pertinent to the whole research population. The
level of significance can be from 0 to 1. The smaller the inference, the higher the
probability that the increase result is real in a statistical sense. The value of the significance
level is usually assumed as 0.05.
1.6.20 Survey: A survey carry out on random, delegate samples of citizens of the whole
country or selected cities or regions. Surveys are usually used to determine social hold up
for supporting parties and party leaders, confidence for the government and public
organization, measurement of the current situation in the country, customs, rules, law etc.
1.6.21 Variable: Variable is each characteristic of the tested person, object or occurrence
which can have at least two values.
1.6.22 Structural equation modeling: Structural equation modeling (SEM) is a statistical
technique for erection and testing statistical models, which are often causal models. It is a
mixture technique that encompasses aspects of confirmatory factor analysis, path analysis
and regression, which can be seen as particular cases of SEM.
18
1.7 OUTLINE OF THE REPORT
1.7.1 Chapter 1 aims to build with introduction, foundation of the study, then
background of research, importance of human resource development in banks. This
chapter will outline the principle of the conducted research. Then it brings detailed
industry profile, banking system in India. Which methodology was used, what are
justifications of the study? Most importantly it will outline the research problem and
hypothesis. It also gives a brief set of definitions, outline of the report, delimitations of
scope and key assumptions, conclusion.
1.7.2 Chapter 2 deals with a detailed review of literature conducted for the present study
with respect to Empowerment practices, studies on job satisfaction. It also brings parent
discipline, immediate disciplines and earlier literature. The gaps indentified through this
process are also discussed.
Introduction employee empowerment
Parent disciplines
Developing and current literature
Earlier Literature
Immediate discipline
Research Gap
1.7.3 Chapter 3 vividly discusses the on the methodology, which consists of two major
parts. In the first part, the relevant items (Variables) for employee empowerment are
reviewed based on the previous studies and the data analyzed from the preliminary survey.
Sixteen hypotheses were developed for test. The second part discusses the research method
employed. This study attempts to design the research based on perception of employees,
managers. The methodology is to be employed is discussed through the following
procedures:
Conceptualization and development of model.
Identification of research variables.
Development of hypothesis and preliminary survey.
Structured questionnaire and data collection.
Data analysis and interpretation.
19
1.7.4 Chapter 4 presents evaluation based on the descriptive statistics about demographic
variables of employees. It also carries the inferential analysis of employee empowerment
on employee satisfaction. It also deals with employee’s empowerment in banking industry
towards job satisfaction and testing the hypothesis using various software using in
currently in the industry.
1.7.5Chapter 5This chapter discusses findings, conclusions and suggestions to banks,
employees and banking industry. Based on the findings, suggestions for impact on job
satisfaction have discussed. The chapter ends with conclusions for the study and
recommendations for future research. The chapter also confers the scope for future
research.
1.8 DELIMITATIONS OF SCOPE AND KEY ASSUMPTIONS
During the work with this thesis delimitations are
The study has taken 513 respondents as sample for the primary data collection and
the area has been restricted to the city of Chennai only due to limitations of
coverage.
Here the study chooses the area of interest as employee empowerment only and the
decision making person for study is employees and managers of the bank only and
not the non-clerical staff inside the banks.
Hence the study was clearly restricted till private and public concern and not the
foreign concerns.
1.9 CONCLUSION
This chapter deal with preface to human resource development, backdrop to the research,
develops the research problems and hypothesis, justified the research parameters, shows
the methodology, describes the outline of the report, stated the definitions confined to
empowerment concepts and the research. It also affirms the delimitations and assumptions
of the study.
20
CHAPTER 2
REVIEW OF LITERATURE
2.1 INTRODUCTION
Empowering employees is the long-term process of providing the tools, training
and motivate the workers to perform at the optimum level. If organization is looking for a
method to speed processes and still create quality materials and services, focus on
employee empowerment. When an employee trusted, and given timely information and the
authority to find solutions. Employee will be able to solve problems and provide solutions
more quickly than someone without that empowerment. Empowerment offers employee
with a sense of sovereignty, which will increase employee job satisfaction. It will be more
comfortable at work because it develops self-confidence and a sense of worth. A happy
worker gives the most excellent customer service, and leaves a good thought of company
with whomever it addresses. This translates into personal or career growth for individual
and increased sales for an organization. In a world in which technology changes every day,
and customers get information, products and services in more and more diverse ways, the
workers need to make rapid decisions that advantage the operation. The spent time and
effort on training in decision-making, the employees most likely will react to change
speedily and find new ways to meet customer demands.
Empowerment has wide-ranging and definite countless meaning and this various
definitions and approaches, faced the honesty of this concept with problem. The definition
of empowerment factors can be used as intrinsic motivation, understanding and
commitment, job structure, and the sharing of resources and data broadcast, power or
authority. The original definition of empowerment, back in 1788 that empowerment
identify as delegating power to the organization role of individual. This authority should be
established to an individual or seen in his organization's task Soofali (2003). In the
21
dictionary, empowerment suggests the different meanings. Empowerment is a compilation
of systems, methods and measures to develop the ability and competence of individuals to
develop and augment productivity, organization progress, growth and prosperity and
human resources according to the organization's goals are used. Empowerment is not only
giving control to employees but cause employees with educating the skills and motivation,
could recover their performance. Empowerment is to afford the essential resources
available to employees and empowerment of growth process. "Important" is also meant to
make stronger impression that cause employees to solve problems and improve the ability
of supporting vision and communal of staff and allow them to identify environmental
issues under control Soofali (2003).
2.1.1What is Employee Empowerment?
A management practice of distribution information, rewards and power with
employees so that they take initiative and make choice to solve problems and develops
services and performances. Empowerment is based on the thought that providing
employees skills, resources, authority, opportunity, motivation, as well holding them
accountable and liable for results of their actions, will donate to their employee
satisfaction.
2.1.2Various definitions of Employee Empowerment
The literature contains numerous definitions of empowerment, each of which offers
a somewhat different viewpoint. Empowerment is the process of enhancing the capability
of individuals or collection to make option and to change those choices into favorite
proceedings and result.
The involvement of employees in the decision building procedure (Mitchell 1973;
Vroom and Jago 1988; Cole et al. 1993).
Tempting the member of the organization to consider deliberately and to be
individually responsible of the quality of their tasks (Bowen and Lawler 1995).
Animating, favoring and rewarding that employee behave always as they believe
more suitable to satisfy customers and to develop the organization’s practice
(Bowen and Lawler 1992; Hermel 1990).
22
However, empowerment does not leave out an initial management to organise,
teach and direct employees, as well as convinced self-discipline (Geroyet al. 1998;
Lawler 1993).
Burke (1986) explain empowerment as “To empower involve the giving way of
power-delegation of power.”
Cornwall (1990) identify empowerment as, “the process of having power given
from the traditionally powerful director in an organization and motivate everyone.”
Randolph (1995) defines empowerment as, “by recognizing and discharge into the
organization the power that employees previously have in their wealth and useful
knowledge and internal passion
Conger and Kanungo (1988) define empowerment as: A process of enhancing
thoughts of self-efficacy among organizational members during the identification
of conditions that foster powerlessness and during their removal by both formal
organizational practices and informal method of providing efficiency information.
Batman and Snell (1999) defines, “empowerment is the process of allocation power
with people”.
Newstrom and Davis (1998) define empowerment as any procedure that provides
better autonomy through the sharing of pertinent information and the provision of
control over factors affecting job performance.
According to Nancy Foy (1994), “empowerment is simply receiving the power to
make your voice heard, to donate the plans and decisions that involve you, to use
your skill at work to improve your performance and with it the performance of your
whole organization”.
David Clutter Buck (1994) defines empowerment as, “finding new traditions to
contemplate power in the hands of people who needs it most to get the job done”.
2.1.3Importance of Employee Empowerment
Employee empowerment can be an authoritative tool for organizations. This new
management technique can increase competence and usefulness inside an organization. It
augments employee productivity. By empowering employees, privileged and managers
have the autonomy to contribute their time to more important matters (Spreitzer 1995).
Empowerment also convey s many profit to employees. It makes them feel enhanced about
their contributions to the organization, it enhances employees’ minds to find improved
23
ways to carry out their jobs and it gives workers the feeling of self-assurance in themselves
and their organizations (Bourke 1998).
The following are some of the benefits of empowerment, as emphasized by many
researchers and authors in the field (e.g., Altizer 1993; Quinn and Spreitzer 1997; Spreitzer
1995)
Rapidly responding to changing surroundings.
Improving efficiency and quality of work.
Generating and strengthen a positive work culture.
Cheering employees to use their talents and to be original.
Resolve troubles quickly.
Maintaining pride and confidence among employees.
Assembling employees act more responsibly.
Creating flexibility and innovation.
Make easy knowledge sharing.
Escalating job satisfaction.
Those coming from a psychological perspective emphasized the personality,
motivational characteristic of the empowerment process” (Kizilos 1990) while
“management theorists, focused on empowerment to explain the performance of
individuals in relation to others within the organization”. (Conger and Kanungo 1998)
were the first to combine the approaches to empowerment found in the management and
psychology literatures and conceptualize it as a motivational process. They found that
employees’ thoughts of empowerment correlated positively with their perceptions of their
managers as being empowered and in control as well as with managerial support;
“employees feel most empowered when they distinguish that their managers are both
empowered and helpful” (Parker and Price 1994).In Management theory and practice, our
sympathetic of the construct is limited and often confusing. For instance, most
management theorists have agreed with empowerment as a set of managerial techniques
and have not paid sufficient responsiveness to its environment or the processes underlying
the construct. This may reflect the sensible or practice direction of theorists, and the result
may be an inadequate kind of the notion of empowerment and its theoretical rationale for
24
related practices. Since a construct, empowerment has not conventional the same analytical
treatment from management scholars as the construct of power. In recent years we have
seen the appearance of the idea that the effective manager is not just a boss but an enabler
and facilitator, drawing the best out of everybody who works in the organization whatever
its line of business. We have seen the idea of reverse the corporate pyramid so that
awareness focuses on the ability of the front line employees to provide the customer more
successfully rather than looking over their shoulders to see what their manager is capable
of.
2.2 PARENT DISCIPLINES AND CLASSIFICATION MODELS
It can be simple to imagine empowerment is just a new occurrence in that standard
texts on participation and contribution make scant reference to the term (Brannen 1983;
Marchington 1992; Poole 1986). Therefore many financial records write as if
empowerment is entirely a product of the times and do not see it in a historical context.
Nevertheless, one could argue that, though empowerment in its present form reflects recent
developments, the basics and thoughts undergone it go much deeper. Empowerment can be
seen in many aspects as a rejection of the traditional classical model of management linked
with Taylor and Ford where standardized products were made through economies of scale
and the division of labour, and workers carried out disjointed and recurring jobs. Economic
man was seen as uncomplaining a tradeoff of high wages (extrinsic motivation) for poor
quality of working culture. Two broad sets of arguments have been used to rationalize the
utilization of empowerment. Connected with growth managers, this view of human life can
be seen in the work of McGregor and his Theory X and Theory Y constructs. Whereas
Theory X presumes employees detest work and avoids accountability and is annoyed
simply by fiscal considerations, Theory Y takes a more optimistic view of human life,
assuming employees would favor to exercise self-control and donate to the organization so
as to assemble their needs for self-actualization. These sets of assumptions were also
reflected in the work of humanist psychologists such as Maslow with his model of the
hierarchy of needs, and also Herzberg’s motivation-hygiene theory (Watson and Slack
1995). Contribution would satisfy human growth desires of self-actualization and
achievement and through this mechanism enhance motivation and performance. The socio-
technical systems school strained the need to design scientific and social mechanism
alongside each other to optimize the two and their powerful study of coalmining in Britain
25
showed how work could be re-designed within the obtainable technical basis so as to
preserve customary features such as skill diversity and a degree of autonomy (Trist et al.
1963). In the 1970s the quality of working life (QWL) society combine and developed
these ideas and put them into practice, most notably in the Swedish car plants such as
Volvo at Kalmar. additionally it has been argued that developments in the larger sustaining
and social environment including more knowledgeable workers has led to a higher level of
anticipation pertaining to quality of working life (Cotton 1993). The term “Empowerment”
was used in different areas previous to being used in management. These areas contain
political and social actions. According to Potterfield (1999), the academic roots of
empowerment can be traced to a broad display of movements and ideas over the past few
centuries, culminating in wide spread function of empowerment-related ideas to various
social reform movements in the 1960 and 1970 social modification engagements such as
the social rights movement, feminism, and others. Potterfield (1999) indicates that in the
course of personal discussion with management and employee empowerment power, he
establishes that these specialists were uncertain about when and where the term was used
in management and organizational studies. At the same time, Honold (1999) argues that it
utilize the impression in management was set up in the socio-technical
approach,Lewin(1951) the idea of job improvement, and employee attachment.
CLASSIFICATION OF MODELS
Different models connected to empowerment are very useful to read in this chapter.
Some of the most familiar are the following:
2.2.1 The Conger and Kanungo Model
In their article “The empowerment process: Integrating theory and practice,”
Conger and Kanungo (1988) define empowerment as: A method of enhancing feelings of
self-efficacy among organizational members during the recognition of circumstances that
promote powerlessness and through their removal by mutually formal organizational
practice and informal techniques of giving self-efficacy information. They argue that
relational elements, such as delegation of power and sharing information and resources, are
only conditions that may hold up and allow the empowerment process. They designate that
there is another set of conditions should be considered besides those essentials. Conger and
Kanungo (1998) created a five-stage model of the process of empowerment. In the process,
26
they include diagnosis of organizational circumstances that are accountable for feelings of
powerlessness, method to eliminate some of the circumstances leading to powerlessness,
providing low level employees with self-efficacy information, subordinates’ emotion of
being empowered, and behavioral effects of empowerment (Conger and Kanungo 1988)
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Conditions The use of To Provide Results in Leading
LeadingManagerial Self-Efficacyempoweringto
To a strategies information to experience behavioral
Psychological& Subordinates of efffects
State oftechhniques Using 4 sources subordinate
Powerlessness
Fig 2.1 Five stages in the process of empowerment
The five stage model of empowerment is:
The first stage is a diagnosis process. In this stage, it is dangerous to find out the
specific circumstances that are accountable for feelings of powerlessness among
subordinates. According to conditions that may be responsible for sentiment powerless are
as follow:
a. Organizational factors including:
(a) Important organizational changes.
(b) Competitive stress.
(c) Start-up business enterprise.
Organizational
Factors
Supervision
Reward System
Nature of Job
Participative
management
Goal Setting
Feedback
System
Modeling
Contingent/
Competence
Based reward
Job
Enactive
attainment
various
experience
virtual
persuasion
Emotional
arousal
Strengthening
of effort-
performance
expectancy or
belief in
personal
efficacy
Initiation/
Persistence of
behaviors to
accomplish
task objectives
Remove
conditions
listed in
stage 1
+
27
(d) Cool bureaucratic climate.
(e) Poor interactions.
(f) Highly federal organizational resources.
b. Supervisory style:
(a) High control.
(b) Negativism (emphasis on failure).
(c) Lack of reason for actions.
c. Reward systems:
(a) Non contingency.
(b) Low incentive value of rewards.
(c) Lack of competence-based rewards.
(d) Lack of innovation-based rewards.
d. Job Design:
(a) Lack of role clarity.
(b) Lack of teaching and technological support.
(c) Impractical goals.
(d) Lack of proper power.
(e) Low task variety.
(f) Limited contribution in programs, meetings, decisions that have a direct impact
in job performance.
(g) Lack of proper and necessary resources.
(h) Lack of network-forming occasion.
(i) Highly recognized work routines.
(j) High law agreement.
(k) Low progression opportunities.
(l) Lack of significant goals.
(m) Limited contact with senior organization.
After the diagnosis stage, managers in stage 2 implement empowerment strategies,
such as participative organization and its necessity for goal setting, job enhancement,
28
feedback systems, replica and capability based rewards. The purpose of implementing
these strategies is to remove some of the external conditions responsible for powerlessness
and to offer subordinates with self-efficacy information in the next stage.
In stage 3, the source of information is offer through inactive attainment, vicarious
experience, verbal affiliation, and emotional stimulation.
The consequence of receiving information talk about in stage 3 is that subordinates
feel empowered in stage 4.
In the final stage, the behavioral effects of empowerment are observed and can be
shown, through beginning and perseverance of behavior to achieve task objectives.
To summarize, in “The Empowerment Process,” Conger and Kanungo (1998) look
at empowerment as “a process whereby an individual’s trust in his or her self-efficacy is
improved. To empower means to “strengthen this belief or to weaken one’s faith in
Personal powerlessness”. They identify several context factors that can lower the
powerlessness feeling between employees.
2.2.2 Thomas and Velthouse Model
Thomas and Velthouse (1990) build on Conger and Kanungo’s (1998) work with
their cognitive model of empowerment. They define empowerment in terms of intrinsic
motivation. He declared “To empower means to bestow power to”. Power, though, has
several meanings. Here in legal sense, power means authority, so that empowerment can
mean authorization. Power also perhaps used to describe capacity, as in the self-efficacy
definition of Conger and Kanungo (1998). Though, power also means energy. Thus, to
empower also can mean to energize. The authors indicate that they improve Conger and
Kanungo’s model in three ways. First, they identify the empowerment concept with a type
of motivation. Second, they detail a complete set of task assessments. Third, their model is
built in a way that it can reflect the process that employees use for task appraisal. Thomas
and Velthouse classify four task assessments they feel to be the basis of employee
empowerment. Those task assessments are impact, competence, meaningfulness, and
choice, are the employees’ judgments regarding the task they are performing.
The authors define the task assessments as follows
29
Impact
“Refers to the degree to which performance is seen as (making a difference) in terms of
completing the purpose or task, that is, producing the future effects in one’s task
environment”
Meaningfulness
“Refers to anxiety the value of the task goals or purpose reviewer in relation to the
individual’s own ideals or standards”
Competence
“Refers to the degree to which a person can perform task behavior competently when he
or she endeavor
Choice
Refers to “employ informal daily tasks of a employees actions” In addition to the task
assessment, increase a model that confine the procedure by which employees disembark
at task assessment.
The elements of this process are:
Environmental events: “a source of data about the consequences of the individual’s
ongoing behavior and about conditions relevant to that person’s future behavior.
The task assessments, as mentioned earlier, are impact, choice, competence, and
meaningfulness.
Behavior includes activity, concentration, initiative, resiliency, and flexibility.
Global Assessments “are an individual’s globalised attitude about impact, competence,
meaningfulness, and choice. These are abstract beliefs in contrast to the specific
assessment that motivate a person’s behavior in a given task situation”
Interpretative styles include attributing, evaluating, and envisioning.
Intervention “refers to deliberate attempts to produce empowerment (increased intrinsic
task motivation) through changes in the environmental events that impinge upon
individuals, or through changes in individuals’ manner of interpreting those events”.
In their representation, “environmental proceedings provide information to the
individual about the consequences of ongoing task behavior and about situations and
events relevant to prospect performance”. This data, together with global assessment,
shapes and influences the individual’s task assessments comparative to impact,
30
competence, meaningfulness, and choice. Additional information is added to the task
assessment by the interpretive styles through external events.
The interpretive styles provide information concerning “how well things are going,
about what may have caused past events and about what could happen in the future”.
Global estimation are “cumulative learning from past task assessments and are used to help
(fill in the gaps) in assessing a novel situations” (Thomas and Velthouse 1990). Through
the interventions element, changes are made to facilitate implementing of empowerment.
In conclusion, Thomas and Velthouse (1990) build upon (Conger and Kanungo’s 1988)
model. They recognized four task assessments and they came up with a model that
reproduce the process by which employees reach the task assessment that is responsible for
motivation.
Fig 2.2 Cognitive Model of Empowerment
Sourcefrom Thomas and Velthouse 1990
5
Interpretive
Styles
_ Attributing
_ Evaluating
_ Envisioning
4
Global
Assessment
_ Impact
_ Competence
_ Meaningfulness
_ Choice
2
Task
Assessment
_ Impact
_ Competence
_ Meaningfulness
_ Choice
1
Environmental
Events
3
Behavior
_ Activity
_ Concentration
_ Initiative
_ Resiliency
_ Flexibility
6
Intervention
31
2.2.3 The Altizer Model
In his article, “Four Steps to Empowerment,” Altizer (1993) identifies four tactics
of empowerment used in his company. He starts his article by emphasizing the significance
of empowerment and total quality management. Furthermore, he states that empowerment
is not optional; it is a must if the organization aims to improve its quality system. He
continues his article by importance what he considers to be the four steps to empowerment.
These steps are:
Review Employee Authority Level
In this step, the author argues that there is no need for high procedure controls in
the organization, if the employees are well trained and educated. Furthermore, Altizer
(1993) states: Authority limits serve a useful purpose, but when the circumstances that
precipitated their use have changed, the empowering manager removes them for three
reasons: 1. to allow employees the freedom to meet customer requirements, 2. to fully
develop employee skills, and 3. to demonstrate the deepening trust in employee abilities.
Delegate, Delegate, Delegate
Altizer (1993) emphasizes that management should allow their employees to find
solutions to the process problems they encounter. The author agrees that employees often
present problems without solutions because: “they feel their own solutions would be (or
have been) disregarded, or because it’s just easier to get the boss to make the decision”
(Altizer 1993). Furthermore, he states: “The empowering manager provides parameters
and solution resources, but requires employees to solve the problems” (Altizer 1993).
Encourage Innovation
The author stresses that employee initiative and innovation should be encouraged
for quality improvement. He argues that for quality improvement, employee initiative and
innovation are demolished when managing employees with restricted rules.
Recognize and Reward Empowered Actions
The author emphasizes the importance of the reward system for empowerment, and
states that the ultimate goal for this step is to encourage empowered actions. In this context
32
he says that “The empowering manager identifies and rewards desired actions with public
praise, letters, or by just receiving out of the way” (Altizer 1993).
To recapitulate, Altizer provides managers with a number of steps to adopt
employee empowerment in the work place. At the end of his article he states: “Continuous
improvement requires knowledgeable, capable employees who have the power to examine
the status quo and make changes” (Altizer 1993).
2.2.4 The Thomas and Tymon Model
Built upon the earlier work of Thomas and Velthouse (1990), Thomas and Tymon
developed the “Empowerment Inventory.” They state that “people sense empowered when
they are energized by the tasks they carry out” (Thomas and Tymon 1993). Like Thomas
and Velthouse (1990), Thomas and Tymon use task assessments as a foundation for their
work, with the exception of using progress instead of task assessment impact.
Task assessments, which are called feelings in the Thomas and Tymon model, are
defined by the authors as follow:
Choice: is the opportunity you feel to select task activities that make sense to you
and to perform them in ways that seem manner. The sensation of being free to
choose our own judgment and act out of our own understanding for task.
Competence: is the accomplishment you feel in skillfully performing task activities
you have chosen. The feeling of competence involves the sense that you are doing
good, quality work on task.
Meaningfulness: is the opportunity you feel to pursue a worthy task purpose. The
feeling of meaningfulness is the feeling that you are on a corridor that is worth your
time and energy – that you are on a valuable duty, which your purpose matters in
the larger scheme of things.
Progress: is the accomplishment you feel in attain the task purpose. The feeling of
progress engages the sense that the task is moving forward, that your activities are
really accomplishing something (Thomas and Tymon 1993).
The authors clarify that these feelings resulted from both “task actions (behaviors) you
perform and the task purpose (goal or mission) are trying to achieve” (Thomas and Tymon
1993).
33
SENSE OFSENSE OF
OPPORTUNITYACCOMPLISHMENT
Fig 2.3 EMPOWERMENT GRID
Source from Thomas and Tymon 1993
Furthermore, the authors identify the elements that increase each of the four
feelings of empowerment. The authors call these elements the building blocks. For each
building block, the authors set up two sets of actions: the first lists actions the manager can
take to empower his employees, these are called team actions; the second lists actions that
the individual can take to empower himself, these are called personal actions.
To summarize, the Thomas and Tymon expanded the work of Thomas and
Velthouse (1990) by identifying building blocks for every of the four feelings (task
assessments). Furthermore, they came up with two types of actions for each building
block. These actions are labeled as team and individual actions that can be taken by both
managers and individuals to increase empowerment.
2.2.5 The Spreitzer Model
Spreitzer, in her work “Psychological Empowerment in the Workplace,” validates
and develops a multidimensional measure of empowerment in the workplace. In her
model, she supports the idea of Thomas and Velthouse (1990) that there are four distinct
dimensions of empowerment. Those dimensions are impact, competence, meaning, and
choice, which she calls self-determination. She also finds that each dimension combines to
produce an overall measure of psychological empowerment. In this context she states
(Spreitzer 1995) that the four dimensions are argued to combine preservative to create an
Feelings of
CHOICE
Feelings of
COMPETENCE
TASK
ACTIVITIES
TASK
PURPOSE
Feelings of
MEANINGFULNESS
Feelings of
PROGRESS
34
overall construct of psychological empowerment. In other words, the lack of any single
dimension will collapse, though not completely eliminate, the overall degree of felt
empowerment.
Furthermore, Spreitzer (1995) developed a partial nomological network of
psychological empowerment in the workplace. In this network, the author identified and
confirmed antecedents and consequences of psychological empowerment as well as social
structural characteristics of the work unit. The antecedents are locus of control, self-
esteem, access to information and rewards. Two consequences of empowerment are
specified as effectiveness and innovation. To summarize, Spreitzer (1995) sees
empowerment as a continuous variable, where employees can be viewed as being
empowered to a greater or lesser degree, not simply whether or not they are empowered.
She developed and validated a multidimensional measure of empowerment in the
workplace along with a partial nomological network of psychological empowerment in the
work place.
Fig 2.4 Partial Nomological Network of
Psychological Empowerment in the Workplace
Source from Spreitzer 1995
The model combines concepts from all of the models reviewed, including, Conger
and Konungo (1988) Thomas and Velthouse (1990), Altizer (1993), Thomas and Tymon
(1993) and Spritzer (1995). However; the model proposed is more inclusive than any of the
reviewed models. It captures the concept of empowerment through simultaneous and
Psychological
Empowerment
Meaning
Competence
Self-Determination
Impact
Locus of Control
Self-Esteem
Across to Information
(Mission and Performance)
Rewards
Social Desirability Stability Across Time
Managerial
Effectivenes
s
Innovation
35
mutual interaction between the main components of the organization, namely, the human
resources (individuals), the work structures (management practices) and the work
environment. On the other hand, each of the reviewed models considers only some parts of
the organization’s components.
2.3 DEVOLEPING AND CURRENT LITERATURE
The concept of employee empowerment was introduced to the management
literature over thirty years ago by Kanter (1977). Empowerment exists in an organization
when lower level employees feel that they are anticipated to exercise initiative in good
faith on behalf of the mission even if it goes outside the bounds of their normal
responsibilities; and if their plan should lead to a mistake even a serious one they trust that
they will not be randomly discipline for having taken that initiative. Empowerment,
participation or participative management is a traditional concept in business management
literature, since studies about democratic supervision and participation are being published
frequently from the thirties onwards. Making decisions is not a simple act, but a full
process (Ford and Fottler 1995).
The decision making process could be divided into several stages, starting with the
identification of the problem intelligence stage, alternatives’ design also called conception
stage, election of the decision, and finally implementation and revision. Thus, the
manipulation of managers and employees can be shared at any stage, without underrating
one stage against another. When he authorizes through the representation of someone else
or someone who acts in his name, either his superior, or the handover of his group, or
another partner, participation is oblique (Córdova 1982; Dachler and Wilpert
1978;Harberet al. 1991; Cole et al.1993) consider empowerment is characterized for being
direct instead of through intermediates. As well Dachler and Wilpert (1978) insist that the
ideal way of empowerment is the immediate and direct involvement of the members of the
organization in the decision making process.
The need to empower the workforce can be critical when they feel powerless and it
is, consequently, critical to find out the reason why there is this sense of powerlessness.
Once these situations are found empowerment policy and tactics can be used to remove
them. However, this state can only do well if the plan and strategy directly offer personal
efficacy information to them. Currently, self-efficacy theory has much to offer with respect
to considerable impact of such changes on employees and specific actions to take with
36
respect to training and retraining communication programmers, feedback systems, and
goal-setting activities. In looking at empowerment, for example wherever an employee
would make confident and effective bottom-line decisions, this creates supplement for that
person to have a sense of capability to make that decision, in other words a strong sense of
decision-making self-efficacy (Appelbaum and Hare 1996).
Today, more than 70 percent of organizations have adopted some kind of
empowerment initiative for at smallest part of their workforce Lawler, Mohrman
andBenson (2001). To be flourishing in today’s global business surroundings, companies
need the knowledge, ideas, energy, and creativity of every employee, from front line
workers to the top level managers in the executive suite. The best organizations completing
this by empowering their employees to take initiative without pushing, to serve the
collective interests of the company without being micro-managed, and to act like owners
of the business (O’Toole and Lawler 2006).
2.4 CLASSIC EMPOWERMENT APPROACHES
Over the last two decades, two complementary perspectives on empowerment at
work have appeared in the literature (Liden and Arad 1996). The first is more macro and
focuses on the social-structural (or contextual) circumstances that allow empowerment in
the workplace. The second is more micro in direction and focuses on the psychological
occurrence of empowerment at work. The two perspectives can be distinguished by a focus
on among empowering structures, policies, and practices and a focus on insights of
empowerment (which focuses on individuals’ reactions to the structures, policies, and
practices they are embedded in; Eylon and Bamberger 2000). Each viewpoint acting a
significant role in the development of a theory of empowerment and is described in the
sections below.
2.4.1 Social-Structural Empowerment
The social-structural perspective on empowerment is rooted in theories of social
replace and societal power. The classic study in the development of a social-structural
theory of empowerment was Kanter’s (1977) Men and Women of the Corporation, an
award-winning ethnographic study of an industrial organization conducted at an occasion
when newer women were entering work organizations. She showed how women were
often “tokens” as a function of their small numbers and as a consequence their successful
37
progression was impeded as they lacked access to “power tools” defined as opportunity,
information, support, and resources. Kanter’s (1977) original research has now served as
the groundwork of the large body of empowerment research from a social-structural
perspective explained under.
The social-structural perspective is embedded in the values and ideas of democracy
where power ideally resides within individuals at all levels of a system (Prasad 2001
Prasad and Eylon 2001). Employees at low levels of the organizational hierarchy can be
empowered if they have access to opportunity, information, support and resources. Even
the secretary, mail clerk, or janitor has potential in an organization with democratic
principles. Of course, in contrast to a formal democracy, where each individual has a
identical vote in the system and the majority rules, most organizations stop short in
behaving as a real democracy (Eylon 1998). Yet, employees at all levels can still have a
voice in a system even if they don’t have a formal vote when they have access to
opportunity, information, support and resources.
The essence of the social-structural perspective on empowerment is the idea of
sharing power between superiors and subordinates with the goal of cascading pertinent
decision-making power to lower levels of the organizational system (Liden and Arad
1996). Empowerment from the social-structural perspective is about sharing power (i.e.,
formal authority or control over organizational resources; Conger and Kanungo 1988)
throughout the delegation of responsibility throughout the organizational chain of
command. By sharing decision-making power, upper management may thus have more
free time to think strategically and innovatively about how to move the organization
forward. In this perspective, power means having formal power or control over
organizational resources and the ability to make decisions pertinent to a person’s job or
role (Lawler 1986).
Relevance is solution for empowered employees have the power to make decisions
that fit inside the scope and area of their work. For example, manufacturing employees
might not be making decisions about solid strategy but instead make decisions about how
and when to do their own work. Thus, social-structural empowerment is about employee
participation through increased admission to opportunity, information, support and
resources throughout the organizational sequence of command.
The social-structural perspective focuses on how organizational, institutional, social,
economic, political, and cultural forces can root out the conditions that foster
38
powerlessness in the workplace (Liden and Arad 1996). Practically, organizations can
change organizational policies, processes, practices, and structures away from top-down
control systems toward high participation practices where power, knowledge, information
and rewards are shared with employees in the lower level of the organizational hierarchy
(Bowen and Lawler 1995). For example, management can change practices to allow
employees to decide on their own how they will recover from a service problem and then
revelation and amusement customers by exceeding their prospect rather than waiting for
approval from a supervisor.
Specific practices that indicate a high involvement or self-managing system include:
Participative decision-making: Employees and teams could have input into and
influence over decisions ranging from high-level strategic decisions to routine day-
to-day decisions about how to do their own jobs. Increasing self-managing teams are
the mechanisms for building authority and accountability.
Skill based pay: Employees share in the profit of the organization and are
compensated for increases in their own expertise and knowledge.
Open flow of information: This includes the downward flow of information (about
clear aim and tasks, strategic direction, competitive aptitude, and financial
performance in terms of costs, output, and quality) and the upward flow of
information (concerning employee attitudes and upgrading ideas). The position is to
create transparency so that employees have “line of view” about how their
performance influences firm performance. Those with better information can work
elegant and thus make improved decisions.
Flat organizational structures: Empowering organizations inclined to be decentralized
where the span of control (lower level per manager) is broad. It becomes very
difficult to micro-manage when managers have many people to manage.
Training: Educative efforts enable employees to build knowledge, skills, and abilities
not only to do their own jobs better but also to learn regarding skills and the
economics of the larger organization.
Greatly the researches on social-structural empowerment have been conducted under
the terms high involvement work practices and high performance work systems has
focused mainly at the unit or firm level. Programmatic research on high involvement work
39
practices has been carry out by researchers in both industrial relations and human resource
management. This research has exposed that high involvement practices which engross
sharing power, information, knowledge, and rewards with employees at all levels
frequently have positive outcomes for organizations, particularly in conditions of
improvements to employee quality of work life, the quality of products and services,
customer service, productivity, and reduced income.
Broader research in the area of high performance work systems (these include
employee involvement but also things like long-term job security, flexible scheduling, and
multiskilling) shows similar findings (Guthrie 2001). MacDuffie(1995)Research in this
area also documents the higher labor costs that are incurred with these practices (Cappelli
and Neumark 2001) but that those costs are offset by the higher productivity these firms
generate (Pfeffer 1996). Yet, other studies have shown marginal or mixed effects (Huselid
and Becker 1996; Staw and Epstein 2000). It may be that there are tradeoffs intrinsic in
realize the high involvement practices. For instance, Gibson et al. (in press) found that
dissimilar high involvement or empowering practices were connected to distinctively
different outcomes (information sharing → financial performance, boundary setting →
customer service, and team enabling → quality). No single practice was connected to more
than one aspect of performance.
A considerable body of research has focused on structures, systems, and processes
for building empowered or self-managing teams. An alternative to traditional hierarchical
management, these empowered teams can be cross-functional and often operate virtually
(where team members are not co-located and may even be located across time zones and
continents; Cohen and Bailey 2007). Empowered teams direct and control their own work,
having the responsibility for scheduling work hours and holiday, placing commands,
employ and firing team members and determining wages (Lawler 1986). Thus, managers
of empowered teams need to play quite a different role from traditional managers in
helping these teams be effective.
To this conclusion, (Arnold et al. 2000) behavior a qualitative learns to determine the
key position for leaders of empowered teams. They establish that empowering team leaders
(a) coach, (b) inform, (c) lead by example, (d) show concern and (e) encourage
participative decision-making. They then developed and validated a measure of
empowering leadership, showing that it clarifies more than traditional leadership measures
such as the Self-Management Leadership Questionnaire (Manz and Sims 1987). Using this
40
newly created measure with a sample of senior leadership players of hotel properties,
(Srivastava, Bartol and Locke 2006) found that empowering team leadership is associated
with more knowledge allocation and team effectiveness, which in turn predicted unit
performance. Burpitt and Bigoness (1997) found that empowering leader behavior was
also related to team innovation among professional project teams as well as insight of
justice by team members (Keller and Dansereau 1995). This is likely because those
subordinates are involved in decision-making and thus have a say about what is fair.
Other researchers focus more on the relational aspects of empowerment (Fletcher
1998). Derived from a women’s experience in relationships, this relational perspective on
empowerment focuses on shaping joint and consequential connections with others. It is
through these connections that people are empowered and produce and develop as human
beings (WalshBartunek and Lacey 1998). This is provocative addition to the social-
structural perspective, but has conventional rather limited attention in the literature thus
far.
In summing up, many researchers have scrutinized the empowering individuality of
systems and structures as well as the leaders who design them. In seems diagonally this
stream of research on social-structural empowerment, it emerges that empowering systems
and structures, while often more expensive to implement, for the majority part have
optimistic outcomes for organizations in terms of firm, unit, and team performance.
Fascinatingly, this flow of research pays less attention to their effects on individual
employees. The second part of empowerment research on psychological empowerment
seeks to fill that void. In this way, it helps identify the method by which empowerment
constitution and practices crash on organizational behavior and performance.
In summary, then, the social-structural perspective resting on empowerment is
entrenched in theories of social exchange and power. However, even as this perspective
has gather much attention from practitioners since it links specific managerial practices to
performance, it is inadequate because it make available an organizationally centric
perspective on empowerment. It does not speak to the environment of empowerment as
experienced by employees. This is significant because in some circumstances, all of
Kanter’s (1977) empowerment tools are power, knowledge, information and rewards that
have been provided to employees, yet they still feel disempowered. And in other
circumstances, individuals lack all the purpose features of an empowering work
environment yet still sense and act in empowered ways. These restraints help to urge the
41
emergence of the psychological perspective on empowerment which is described in the
next section.
2.4.2 Psychological Empowerment Approach
Psychological empowerment refers to a place of psychological states that are
essential for individuals to feel a sense of control in relation to their work. Rather than
meeting point on managerial practices that share authority with employees at all levels, the
psychological perspective is focused on how employees experience their work. This
perspective refers to empowerment as the personal attitude that employees have
concerning their role in relative to the organization.
The document that provoked researchers to think in a different way about
empowerment was a hypothetical piece by Conger and Kanungo (1988). They quarrel that
a social-structural perspective was imperfect because the empowering decision-making
practices confer over would have little effect on employees if they deficient in a sense of
self-efficacy. To them, empowerment was a “process of attractive feelings of self-efficacy
among organizational element through the identification [and removal] of circumstances
that foster powerlessness” (Conger and Kanungo 1988).
Thomas and Velthouse (1990) comprehensive Conger and Kanugo’s (1988) ideas
with the progress of an organizational structure rationalize empowerment as intrinsic task
motivation obvious in four cognitions that reflect their direction to job. Fairly than a
dispositional trait, Thomas and Velthouse (1990) defined empowerment as a position of
cognitions or states inclined by the work setting that helps generate an active-orientation to
one’s job.
To guarantee that these four dimensions really captured the essence of
empowerment, Spreitzer (2007) refine the interdisciplinary literature on empowerment,
sketch on psychology, sociology, social work, and education. She found broad support for
these four dimensions of empowerment transversely these disparate literatures.
Based on these results, she further polished these four dimensions as follows:
Meaning involves a fit between the needs of one's work task and one's attitude,
values and behaviors (Hackman and Oldham 1980).
Competence refers to self-efficacy precise to one's effort, or a belief in one's ability
to perform work performance with skill (Bandura 1989).
42
Self-determination is a sense of choice in starting and modifiable one's actions
(Deci, Connell and Ryan 1989). It imitates a sense of autonomy or choice over the
starting and continuation of work behavior and procedure.
Impact is the degree to which one can pressure strategic, administrative, or
operating outcomes at work (Ashforth 1989).
Jointly, these four cognitions replicate an active, rather than passive, direction to
one's work role. In other words, the knowledge of empowerment is obvious in all four
dimensions. If any one of the dimensions is absent, then the experience of empowerment
will be incomplete (Spreitzer 1995). For illustration, if people have diplomacy to make
decisions (i.e., self-determination) but they don’t mind about the kinds of decisions they
can make (i.e., they lack a sense of meaning), they will not feel empowered. On the other
hand, if people consider they can make an impact but don’t feel like they have the skills
and capability to do their job well (i.e., they lack a sense of competence), they will not feel
empowered as well. Thus, employees feel psychologically empowered when they
understanding all four psychological states. In this way, empowerment is the “gestalt” of
the four dimensions.
Contrastingly the social-structural perspective where there are many different
appliances which have been used to calculate empowerment, a single 12-item (3 items per
dimension) measure of psychological empowerment developed by Spreitzer (1995) has
been used predominately in empirical research. Using a 7-point Likert scale, the measure
of psychological empowerment supposed that empowerment is incessant rather than
dichotomous – employees may distinguish different degrees of empowerment slightly than
feeling empowered or not. A second-order confirmatory factor analysis confirmed that the
four dimensions are distinct but do donate to an overall sense of empowerment. Spreitzer
(1995) also found that the calculation was not inclined to social-desirability bias. The
measure was additionally validated at the individual level by Kraimer, Seibert and Liden
(1999) and at the team level by Kirkman and Rosen (1999).
Both convergent and discriminant validity of the four dimensions have been
established, the structure of the measure has been exposed to be invariant across gender
(Boudarias, Gaudreau and Laschinger 2004), and the measure has been interpret and
authenticate in Chinese (Aryee and Chen, 2006). It has also been worn across cultures in
Turkey (Ergeneli et al. 2007), the Philippines (Hechanova, Alampay and Franco 2006),
43
Singapore (Avolio et al. 2004), United Kingdom (Holdsworth and Cartwright 2003),
Australia (Carless 2004) and Canada (Laschinger et al. 2004). The team edition of the
psychological empowerment device (Kirkman and Rosen 1999) has been translated into
Flemish and Finish as well as used in the Philippines (Kirkman and Shapiro 2001).
This measure of psychological empowerment has been worn and found to be valid
in a diversity of different contexts a sampling includes big box retail (Chen et al. 2007); the
insurance industry (Spreitzer 1995), teams of engineers (Seibert et al. 2004), high tech
project teams (Chen and Klimoski 2003), sales and service teams (Kirkman et al. 2004),
the hospitality industry (Corsun and Enz1999), manufacturing (Spreitzer 1996), health care
(Koberg et al. 1999), aerospace (Mishra, Mishra and Spreitzer 1998), and education
(Moye,Henkin and Egley 2004). It is appealing to see that findings about empowerment
appear to simplify across so many different work contexts. Having a well-validated,
theoretically-driven measure has permitted this substantive stream of research to thrive
because researchers can build on each other’s work. This stands in difference to the social-
structural perspective where empowerment has been deliberate in many unusual ways
(high involvement practices, involvement, and empowering leadership to name just a few).
While such, variety of measures in social-structural empowerment has complete it more
difficult to build a cohesive body of empirical findings.
Psychological empowerment studies have focused on several different levels of
analysis together with individual (e.g., Spreitzer 1996), team (e.g., Kirkman and Rosen
1999; Kirkman et al. 2004; Srivastava et al. 2006), and work unit level (e.g., Seibert, Silver
and Randolph 2004). Together team and unit level studies have conceptualized team or
unit empowerment as shared insight of experienced empowerment. For illustration, for
team empowerment, all four dimensions are conceptualized as team level constructs
(Kirkman and Rosen 1999): (a) team meaningfulness is defined the team valuing its tasks
as significant and valuable, (b) effectiveness, or fitness, is the collective believe the team
can be useful, (c) independence involves the team members understanding substantial
liberty and discretion in their work and (d) collision is about the team producing work that
is significant and imperative for the organization.
Recent research has offered multi-level design to examine the interaction between
team and individual empowerment (Chen et al. 2007). This is important since of the need
to decide whether it is the team as total or individual team members who are empowered
44
differentially. Furthermore, we do not know whether a different set of practices empower
individuals in compare to those that empowered teams.
This research found that team empowerment was powerfully related to individual
empowerment and that team empowerment restrained the relationship between individual
empowerment and performance.
It is attractive to see that findings about empowerment come out to generalize
across so many different work framework and levels. In the subsequent sections, we
appraisal recent research findings of the nomological network of psychological
empowerment at work.
Research indicates that positive types of people are likely to details the stronger
feelings of empowerment. Spreitzer (1995) found that those with stronger self-esteem
achieve account more empowerment, as locus of control materialize to have no
relationship to empowerment. In terms of demographics, employees with higher levels of
education, more tenure, and greater rank statement more feelings of empowerment
(Spreitzer 1995). At the team level, ethnic diversity on a team, and between the team
leaders and their teams, was found to be negatively related to empowerment (Kirkman et
al. 2004). Thus far other forms of demographic diversity, such as gender diversity, tenure
diversity, and age diversity, had no manner on empowerment. Drawing on social
classification hypothesis, it may be that these other foundation of diversity are less
“conspicuous” than competition and thus have less method on power distribution in the
workplace.
As converse above, while the social-structural perspective is unfinished because it
is organizationally centric, the psychological perspective is also incomplete because it is
independently centric. A complete sympathetic of empowerment at work require the
combination of both perspectives. We necessitate appreciating how social-structural
empowerment can permit psychological empowerment as glowing as appreciate how
approach of psychological empowerment can allow the growth of additional social-
structural empowerment during practical behaviors aimed at changing the systems.
2.5 EARLIER LITERATURE
2.5.1 Power and Empowerment
“Power can be distinct as the quantity of control over textile, human, intellectual
and financial resources implement by different sections of civilization. The control of these
45
resources becomes a starting place of individual and social power. Power is lively and
relational, rather than absolute it is exercised in the social, economic and political relations
among individuals and groups. It is also unevenly distributed some individuals and groups
having better control over the sources of power and others having modest or no control.
The degree of power of an individual or group is correlated to how many unusual kinds of
capital they can access and control. Different amount of power are continued and
perpetuated through social divisions such as gender, age, caste, class, ethnicity, race, north
and south; and through establishment such as the family, religion, education, media, the
law, etc. Our understanding of power would be incomplete, except we recognize its
partner, ideology. Ideology is a complex structure of beliefs, values, attitudes, and ways of
perceiving and analyzing social reality. Philosophy are extensively separate and required
during social, economic, political and religious institutions and structures such as the
family, education system, religion, the media, the economy, and the state, with its
managerial, legislative and armed wings. The financial, political, legal and judicial
organization and structures set up and arbitrate by the state tend to strengthen the leading
ideology and the power of the leading collection within it, even though their affirmed
objectives and policies may be apparently democratic. While philosophy does a far more
effective job of behind an unequal power organization than basic, overt compulsion and
power, we supposed to not forget that it is always being reinforced by the hazard of force,
should anyone seek to rebel against the overriding system. But neither power, ideology,
nor the state are static or monolithic. There is a continuous process of struggle and
confront by the fewer powerful and marginalized sections of society, resulting in various
degrees of change in the structure of power. When these challenges become strong and
extensive enough, they can consequence in the total alteration of a power structure.”
2.5.2 Knowledge and empowerment
Knowledge and empowerment are predictable to be related constructs and the rise
of knowledge work has been foreseen for many years (Cortada 1998). In a longitudinal
empirical study between 1987 and 1990, Lawler et al. (1992) have strained the significance
of knowledge and skill development and concluded that: Without the right skills, it is
impractical for individuals to contribute in the business and authority its direction. At an
additional basic level, it is unfeasible for persons devoid of skills to do most jobs
effectively.
46
The word “knowledge employee”, explain by Peter Drucker (1989) in his book,
The New Realities, indication to the great transfer from the industrial worker into
theknowledge worker where knowledge is certainly an unseen asset; “an invisibleasset that
exist largely in the mentality of human beings and somanagement can no longer be about
close observation and scrutinize(Davenport 2001). As such, familiarity, skill and
knowledge are verysignificant conditions of empowered staff to act and deal with patrons
basedon that skill or knowledge (Peter Drucker 1989). Merely, knowledge of the
jobcontent and context will allow service employees to solve customers’ tribulationsand
answer customers’ questions punctually saving time and attempt for thecustomer, the
manager and themselves. Knowledge is at present being advertise asthe basis of prospect
competitiveness (Swan et al. 2000). What is new aboutapproach to knowledge today is the
gratitude of the need to attach, manageand use it like any other asset. A significant goal of
knowledge and informationregeneration (Ballantyne 2000) is to enhance the customer
awareness ofemployees. Others researchers, like Thomas and Velthouse (1990),
Spreitzer(1995) and Goodale and Koerner (1997), relate knowledge, skill and knowledge
to self-efficacy (i.e., the insight of self-assurance in one’s ability to carry out well).
Therefore, knowledge augments an employee’s confidence in their decisions and
more prominently in serving their customers. Still, while knowledge and skill have been
deeply researched and many articles and books have undertaken the issue, still there is a
lack in empirically discover the relationship Customer contact employee.
2.5.3 Reward and Empowerment
Rewards have been considered from the perspective of many different part,
including organizationalbehavior (OB), organizational theory, industrial/organizational
psychology, sociology, economics, labor economics and law to plan and international
management (Werner and Ward 2004). Rewarding employees is an additional important
ingredient in employees’ empowerment. Except employees feel that their good
performance is esteemed, they will have no incentive to make familiar performance.
Spreitzer (1995) states that Individual-performance-based rewards are argued to be
important for empowerment. Individual incentives augment empowerment by: (a)
recognizing and reinforcing personal competencies and (b) Individuals are given incentives
for participating and involving decision making process at work. In the same context,
Lawler (1986) states that employees will be motivated to perform well when three
47
conditions exist there off (a) Rewards are perceived to be attached to performance (b) The
rewards that are tied to performance are esteemed. (c) Effective performance is perceived
to be attainable. If the organization expects competency, innovation and good routine from
its employees, it should provide a reward system that is cherished by the employees. To
develop an effective empowering environment within an organization, both aspects of
empowerment, psychological and relational, should be measured. Empowerment involve
that both individual and organizational goals are united. Otherwise, people will be
empowered to do things that are not in the organization’s interest and, alternatively, people
will be empowered to do things in the organization’s interest but not motivated to do so
since it is not in their own self attention.
Spreitzer (1997) states that relational and psychological empowerments are alleged
to be connected since psychological empowerment may be a result of relational
empowerment. Likewise, Quinn and Spreitzer (1997) highlight that one perspective of
empowerment be supposed not to be considered more imperative than the other. They
claim that empowerment agenda fail possibly because organizations decision makers
highlight either the relational or the psychological approach in their challenge to find the
best way to empower their employees. Quinn and Spreitzer(1997) suggest that an accurate
empowering program must hold elements pinched from both prospective.
Information and empowerment
2.5.4 Information and Empowerment
It means statistics, including information on the amount and superiority of business
unit output, costs, revenues, productivity, and customer response. A major challenge for
managers are high-involvement work system is to generate an information system that
supply employees with data that is suitable and applicable to their particular work process,
that they can permit personally by whichever expending or conservation effort, or that they
can recognize.
The more translucent managers can make the firm’s operations, the more
successful employees can contribute to the firm’s success. Transparency is significant
because it helps employees see the link between their actions and the performance of the
firm, thereby enhancing the cognitive aspect of engagement. Hence, transparency is
essential for employees to see what they are doing that is working and what isn’t. As CEO
Ricardo Semler says about his 800-person high- involvement manufacturing firm in Brazil,
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“nothing matters more than those vital statistics – short, frank, frequent reports on how the
company is doing”.
2.6 IMMEDIATE DISCIPLINE
2.6.1 Employee satisfaction
Employee satisfaction or job satisfaction is, quite simply, how happy or satisfied
employees are with their work. Employee satisfaction is naturally calculated using an
employee satisfaction survey. These surveys deal with topics such as compensation,
workload, perceptions of management, flexibility, teamwork, resources, etc. These things
are all vital to organizations who want to keep their employees happy and reduce turnover,
but employee satisfaction is only a part of the overall solution. In detail, for some
organizations, satisfied employees are better off.
Employee satisfaction and employee engagement are comparable concepts on the
plane, and many people use these terms interchangeably. Employee satisfaction envelops
the basic distress and needs of employees. It is a good starting point, but it generally stops
short of what really matters.Employee satisfaction is important to the success of any
business. A high rate of employee satisfied is directly associated to a lower turnover rate.
Thus, keeping employees’ satisfied with their job should be a major concern for every
manager. While this is a well known fact in management practices, economic depression
like the current one seem to cause manager to ignore it. There are various motives why
employees can become depressed with their jobs and resign, including high stress, lack of
communication within the company, lack of recognition, or limited opportunity for growth.
Management should energetically seek to improve these factors if they expect to lower
their turnover rate. Even in an economic recession, turnover is an expense to avoid.
2.6.2 Definitions of Employee Satisfaction
According to Nancy (1997) “Satisfaction means to the level of completion of one
need, desires and want. Satisfaction depends essentially upon what an individual
requirements from the humanity, and what he gets.”
According to Locke (1976), “Job satisfaction is as a agreeable or positive exciting
state resulting from the evaluation of one job or job experience”.
As defined by Feldman and Arnold (1983),“Job satisfaction as the quantity of
overall positive influence (or feelings) that individuals have towards their work”.
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Robert Kreitner and Angelo Kinicki (1995) explain, Job satisfaction is a moving or
emotional response toward various surface of one’s job. This characterization
explains job satisfaction is not a unitary concept.
Newstrom and Dawis (1998) elucidate Job satisfaction is a set of positive or
unfavorable feelings with which employees view their work.
Andrew (1988) stated that job satisfaction is the amount of enjoyment or
contentment associated with a job.
2.6.3 Importance of Employee Satisfaction
Employee satisfaction is crucial to the success of any company. A high rate of
employee satisfaction is directly connected to a lower turnover rate. Thus, keeping
employees’ satisfied with their careers should be a major precedence for every boss. While
this is a well-known fact in management practices, economic recession like the current one
seem to cause employers to ignore it. There are numerous reasons why employees can
become depressed with their jobs and quit, including high stress, lack of communication
within the company, lack of recognition, or limited opportunity for intensification.
Management should actively ask for improve these factors if they expect to lower their
turnover rate. Even in an economic decline, turnover is an expenditure best avoided
Significance of employee satisfaction for employees
• Employee will believe that the organization will be satisfying in long team
• They will concern about the quality of their work.
• They will create and bring superior value to the customer.
• They are more dedicated to the organization.
• Their works are more creative.
• They will care about the quality of their work.
• They will generate and transport superior value to the customer.
• They are more dedicated to the organization.
2.6.4 Factors that influence employee satisfaction
An employee's overall satisfaction with his job is the result of a mixture of factors -
- and financial compensation is only one of them. Management's role in developing
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employees' job satisfaction is to make confident the work environment is optimistic,
morale is high and employees have the resources they need to achieve the tasks they have
been allocate.
It can comprise factors as following:
(a)Organizational development factors
• Brand of organization in commerce field and association with leading contestant.
• Assignment and visualization of organization.
• Possible growth of organization.
(b) Policies of compensation and benefits aspect
• Wage and salary
• Benefits
• Rewards and penalties
(c)Promotions and career development aspect
• Opportunities for encouragement.
• Training program participating.
• Capacity of career development
(d)Work task factors
• Quantity of task
• complicated level of task
(e)Relationship with supervisor aspect
• Level of coaching
• Level of obligation for employee
• management to employee
(f)Working conditions and environment aspect
• Tools and equipment
• operational methods
• Working atmosphere
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(g)Corporate culture factors
• Relationship with associate
• Level of sharing etc
2.6.5 Sustain the Employee Satisfaction
Determining appropriate frequency of appraisal
Appraisal frequency must be at least 3 or 6 months’ time. It helps you regularly
review satisfaction tendency of employees.
For some subdivision, it must increase appraisal frequency for them because of lack
of management skills or inappropriate personality.
Many organizations only carry out considerable satisfaction of employees 1 time
per year, simply by applying the standard management rather than the desires of the
organization. This is a very long time since the dissatisfaction of employees can happen at
any time.
Implementation of feedback program frequently
Satisfaction cannot asses’ employee every month because it is time consuming. So
what is the opinion of employees? Implementation program can occur on the response of
employees monthly or suddenly when the problem occur
The feedback of the staff is their explanation, attitudes about problems that will
occur or has happen.
The feedback can carry out independent or attached to the appraisal of the work
monthly.
2.7 THEORIES AND ANALYTICAL MODELS
Before illuminating the theories of job satisfaction, the researcher needs to make
obvious about two factors, intrinsic and extrinsic, as follows.
2.7.1 Intrinsic and Extrinsic Factors
Job conclusion includes intrinsic and extrinsic work outcomes. The difference
between intrinsic and extrinsic outcomes is imperative for understanding the response of
people to their jobs. In a general sense, intrinsic results are objects or events, which follow
from the employees, own efforts, not need the involvement of any other person. More
minimally, it is an outcome clearly linked to action on the employees’ element. Such
52
outcomes naturally are thinking to be exclusively in the region of professional and
technical work; and yet all jobs have potentially opportunities for intrinsic result. Such
outcomes engage feeling of accountability, challenge, and recognition; the outcomes result
from such job characteristics as variety, self-sufficiency, individuality, and connotation.
Extrinsic outcomes, however, are objects or actions, which follow from the
employees own hard work in conjunction with other factors or persons not directly
concerned in the job itself. Pay, working conditions, co-workers, and even management are
objects in the work place which are potentially job-outcomes, but which are not a
fundamental part of the work. Dealing with others and acquaintance interactions are
sources of extrinsic outcomes.
2.7.2 Content Theories
Content theories were concerned with the specific identity of what it is within an
individual or his/her environment that energizes and sustains behavior. In other words,
what specific things motivate people (Campbell et al. 1970). Maslow (1954) suggested that
people are driven by unsatisfied needs that shape their behavior. He theorized that after a
person has moved from a lower to a higher level of need, the higher-level needs assume
less prominence since they have been adequately met. Although lower level needs may at
times increase in importance as a consequence of progressing through stages of
psychological development, a person tends to develop a “personality structure” in which
his various needs form a hierarchical system. (Maslow 1954; Hoppock1935) suggested that
job satisfaction and dissatisfaction share a single continuum. They reasoned that both
intrinsic and extrinsic factors have the capacity to create satisfaction and dissatisfaction.
Maslow described one end of this continuum as a “growth” needs and, at the other end of
the continuum “deficiency” needs. Pinder (1998) describes the first set of needs as basic
survival needs, which can be looked at as those needs being concerned with the avoiding
of pain and discomfort and as providing primary needs such as sex, thirst, and hunger.
Pinder(1998) describes the second set of growth needs as those that express themselves in
attempts by people to become all that they are capable of becoming.
2.7.3 Motivator/Hygiene Theory (Two-Factor Theory)
Herzberg et al. (1957) used Maslow’s needs hierarchy to formulate the
motivator/hygiene theory of employee motivation. In 1968, Herzberg wrote about the two
53
different needs of man. The first need is the one that comes from human’s animal nature –
or the ingrained drive to avoid pain from the environment or the learned practices that arise
as a response to the basic biological needs. The other set of needs relates to the unique
characteristics of humans, the ability to achieve. It is through this attainment that a person
experiences psychological growth (Gruneberg 1976). Herzberg also theorized that growth
or motivation factors intrinsic to the job are: achievement, recognition for achievement, the
work itself, accountability, and increase for advancement (Gruneberg 1979). He also
theorized that the hygiene factors or those factors that produce dissatisfaction are:
company policy and administration, supervision, interpersonal relations, working
environment, salary, status, and safety (Gruneberg 1979). Herzberg’s two-factor theory
was tested by Schmidt (1976), when he conducted a study using 74 educational
administrators in Chicago. Schmidt (1976) collected data using a modification of
Herzberg’s interview technique and a questionnaire on characteristics of the job. Each
principal was asked to think of an incident that made him feel exceptionally good or
exceptionally bad about his job as an administrator, either in his present position or in
previous administrative positions. Each participant was limited to four specific sequences
of events: two positive and two negative. The written responses were then coded by a set
of encoders.
Using an ANOVA to determine relationships, Schmidt (1976) found that
achievement, recognition, and advancement, significant at the 0.01 level were perceived to
be major determinants of his subjects’ overall satisfaction. The author also reported that
interpersonal relations with subordinates, policy and administration, interpersonal relations
with superiors, and interpersonal relations with peers were perceived to be major
determinants of overall dissatisfaction.
2.7.4 Process Theories
Process theories try to clarify and explain the process of how behavior is energized,
directed, sustained, and stopped. To explain and describe behavior these theories try to
define the major variables that are important for explaining motivated people (Campbell et
al. 1970). Process theorists see job satisfaction as being determined not only by the nature
of the job and its situation within the organization, but also by the needs, values and
expectations that the individuals have in relation to their work (Gruneberg 1979). For
example some persons have a greater need for pay and achievement than others and where
54
a job gives no opportunity for increased pay or achievement; such individuals are likely to
be more frustrated than those whose need for higher pay and achievement is less. Three
sub-theories of process theory have been developed by theory based on inconsistency
between what the job offers and what is expected, theory based on what an individual
needs, and theory based on what the individual principles.
2.7.5 Expectations and Equity Theory
Equity theory was most heavily influenced by James Adams and originated around
1965 (Pinder 1998). Equity theory was based upon three main assumptions. First, that
people develop beliefs about what constitutes a fair and equitable return for their
contributions to their jobs.
Secondly, equity theory assumes that people tend to compare what they perceive to
be the exchange they have with their employers to that which they perceive co-workers
have with their employers. Thirdly, equity theory holds that when people believe that their
own treatment is not equitable, relative to the exchange they perceive others to be making,
and they will be motivated to do something about the inequity (Pinder 1998). For example,
one employee believes that another employee makes twice as much as they do. Whether
that belief results in dissatisfaction depends on their beliefs about the value of
contributions they make as compared to their coworker. People can tolerate seeing others
earn more in pay and benefits if they do believe that others are contributing more in the
way of inputs (Pinder 1998). One main criticism of equity theory is that issues of fairness
and justice can be a matter of “satisfaction”. There is always the opportunity that what one
thinks or believes is not congruent with what is actually happening. Another limitation to
this theory is that it can be hard to compare one organization to another, thus this theory is
localized for the person.
2.7.6 Reference Group Theory
Reference group theory gave rise to the thought that employees contrast their inputs
and outputs from individuals job to others, such as his/her friends, co-workers, and others
in the industry. One can easily see this is prevalent in the field of education as teachers and
administrators often compare salary and benefits between districts and states. Theorists,
such as Hulin and Blood (1968) have argued that the understanding of the groups to whom
the individuals relate is critical to understanding job satisfaction.
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2.7.7 Needs/Fulfillment Theory
Fulfillment theorists believed that people’s satisfaction is a function of how much
of a reward or outcome they are receiving for their work. Theorists simply viewed
satisfaction depending on how much of a given outcome or group of outcomes a person
receives (Lawler 1994). The weakness of this theory was that in the researchers failing to
take into account the individual-difference factors of a person. The individual-difference
factor is how people feel about what they receive and what outcomes they feel they should
receive for their work. A person who expects to be paid more for their work is more likely
to be dissatisfied than someone who feels that he is paid adequately for his work.
“Individual-difference factors suggest that the fulfillment-theory approach to job
satisfaction is not valid, since this approach fails to take into account differences in
people’s feelings about what the outcomes they should receive” (Lawler 1994). Theorists
believed that satisfaction is determined by the differences between the actual outcomes a
person receives and some other outcome level. They would say that what is received
should be compared with another outcome level, and when the outcome level is below the
other outcome level, dissatisfaction results (Lawler 1994). This theory is clearly evident in
teacher salaries. Teachers who feel their salaries or benefits are below the state or regional
level become dissatisfied with their employer. Vroom (1964) developed two forms of need
fulfillment theory. The first model was the subtractive model which states that job
satisfaction is negatively related to the degree of discrepancy between what the worker
needs and the extent to which the job meets those needs. His second model is the
multiplicative model in which the need for importance is taken into account by multiplying
the perceived amount of need fulfillment offered by the job by the importance of the
individual of that need (Gruneberg 1979).
2.7.8 Work Adjustment Theory
In 1964, the first version of work adjustment theory was published by Dawis,
England and Lofquist. The theory was revised in 1968, and extended forms of the theory
were published in book form (Lofquist andDawis 1968). The theory of work adjustment is
based on the concept of correspondence between the individual and environment (Dawis
and Lofquist 1984). This theory includes a basic assumption that the individual seeks to
achieve and to maintain correspondence with the environment. While many kinds of
56
environments exist for an individual – home, school, work, church – to which an individual
must relate, achieving and maintaining correspondence with one environment may affect
the correspondence with other environments.
Work then represents one such environment in which one must relate. Satisfaction
then indicates the correspondence between the individual and the work environment
(Dawis and Lofquist 1984).
Dawis, England and Lofquist (1964)formulated a theory of vocational psychology
that was based on the idea that the individual is a responding organism. As individuals
respond to their environment, their responding becomes associated with reinforces in the
environment Dawis et al. (1964).
2.7.9 Job Characteristics Model
Hackman and Oldham (1980) proposed the Job Characteristics Model, which is
extensively used as a framework to study how particular job characteristics impact on job
conclusion, including job satisfaction. The model states that there are five core job
characteristics (skill variety, task identity, task significance, autonomy, and feedback)
which impact three dangerous psychological states (knowledgeable meaningfulness,
experienced accountability for outcomes, and knowledge of the actual results), in turn
manipulate work result (job satisfaction, absenteeism, work incentive, etc.).The five core
job characteristics can be united to form a motivating potential score (MPS) for a job,
which can be used as an index of how likely a job is to affect an employee’s approach and
behaviors. A meta-analysis of studies that evaluate the framework of the model offer some
support for the validity of the JCM.
2.7.10 Dispositional Theory
An additional well-known job satisfaction theory is the Dispositional Theory. It is a
very universal theory that suggests that people have inborn dispositions that cause them to
have inclination toward a certain level of satisfaction, not considering of one’s job. This
approach became a prominent explanation of job satisfaction in illumination of
confirmation that job satisfaction tends to be steady over time and across careers and jobs.
Research also indicates that identical twins have comparable levels of job satisfaction. A
significant model that narrowing the scope of the Dispositional Theory. The Self-
evaluations Model, proposed by Timothy A. Judge in 1998. He argued that there are four
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Core Self-evaluations that determine one’s disposition towards job satisfaction are self-
esteem, general self-efficacy, locus of control, and neuroticism. This model states that
higher levels of self-esteem and general self-efficacy lead to higher work satisfaction.
Lastly lower levels of neuroticism guide to higher job satisfaction.
2.7.11 Affect Theory
Locke’s Range of Affect Theory (1976) is debatably the most famous job
satisfaction model. The main principle of this theory is that satisfaction is unwavering by a
discrepancy between what one needs in a job and what one has in a job. Additionally, the
theory states that how much one values a given facet of work (the degree of autonomy in a
position) reasonable how satisfied or dissatisfied one develop into when expectations are
or not met. When a person principles a particular facet of a job, his satisfaction is more
really impacted both positively (when expectations are convene and negatively (when
expectations are not convene), compared to one who doesn’t value that aspect. To
demonstrate, if Employee A values autonomy in the workplace and Employee B is
unresponsive about autonomy, then Employee A would be more satisfied in a place that
offers a high degree of autonomy and less satisfied in a position with little or no autonomy
compared to Employee B. This hypothesis also states that too much of an exacting facet
will create stronger feelings of disappointment the more a worker values that facet.
2.8 MEASURING JOB SATISFACTION:
There are many methods for measuring job satisfaction. By far, the most common
technique for collecting data regarding job satisfaction is the Likert Scale (named after
RensisLikert). Other less common technique of for gauging job satisfaction include:
Yes/No questions, True/False questions, point systems, checklists, and forced choice
answers. This statistics is normally collected using an Enterprise Feedback Management
(EFM) system. The Job Descriptive Index (JDI), shaped by Smith, Kendall andHulin
(1969), is a specific questionnaire of job satisfaction that has been extensively used. It
measures one’s satisfaction in five facets: pay, promotions and promotion opportunities,
coworkers, supervision, and the work itself. The scale is simple participants react either
yes, no, or can’t decide in response to whether given statements precisely describe one’s
job. The Job in General Index is an overall measurement of job satisfaction. It is an
development to the Job Descriptive Index because the JDI focuses too greatly on
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individual facets and not enough on work satisfaction in all-purpose. Other job satisfaction
questionnaires include the Minnesota Satisfaction Questionnaire (MSQ), the Job
Satisfaction Survey (JSS), and the Faces Scale. The MSQ measures job satisfaction in 20
facets and has a long form with 100 questions (five items from each facet) and a short form
with 20 questions (one item from each facet). The JSS is a 36 item questionnaire that
actions nine facets of job satisfaction. Finally, the Faces Scale of job satisfaction, one of
the first scales worn extensively, measured overall job satisfaction with just one item
which participants respond to by choosing a face.
2.9 THE GAPS IDENTIFIED FROM THE REVIEW OF LITERATURE
The present review of literature carried out as a part of the research has given rise
the following gaps
According to Len Holden (1999), there is a perception gap in communicational
forms of empowerment in a British and Swedish bank. The findings are contextualized
against a rapidly changing environment which differentiates the banking sector in the
1990s. Research of this nature is frequently carried out in a mono cultural background
although the fact there is increasing evidence that managerial practices, together with
empowerment, are highly influenced by communal factors. The research confirms previous
statement that Swedish workers have greater contribution than the British in the workplace,
but the power of participation is reconciled by external factors such as like labour law,
social values, technological change and economic conditions. Such factors can
pessimistically impact on alternative forms of communication via trade unions. In such
periods effectual employee involvement is controlled to micro levels, regardless of
expectations by employees of more involvement in organizational issues at macro levels.
According to Maryam Hashmi (2013) this study scrutinizes the influence of
psychological empowerment on organizational commitment in background to banking
sector of Pakistan. This study is inimitable in a way that it has deliberated the impact of
psychological empowerment on organizational obligation at three managerial levels i.e. top
level, middle level and lower level. Primary data is gathered from employees working in
different banks in four main cities of Pakistan. The study has used survey approach for
data collection. The study papers that psychological empowerment affects organizational
commitment for senior and middle level managers in banking sector of Pakistan. The
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outcome of psychological empowerment on organizational commitment for lower level
managers was irrelevant. However, in Pakistan lower level employees are less empowered
and perhaps their level of empowerment donates infrequently in their level of
organizational commitment.
According to Sergio Fernandez and TimaMoldogaziev(2011) public organizations
have been assuming employee empowerment with the aim of civilizing performance and
job satisfaction and encouraging innovativeness. Our perceptive of employee
empowerment has been over-involved by a shortage of empirical research on its uses and
consequences in the public sector. Based on Bowen and Lawler’s theoretical law of
employee empowerment, this study explores the link between various empowerment
practices and alleged performance in centralized agencies. It is found that empowerment
practices intended at providing employees with access to job-related knowledge and skills
and at giving way them judgment to change work processes have a positive and
substantively significant influence on alleged performance. Other empowerment practices
geared toward providing employees with information about goals and performance and
contributing them rewards based on performance are identifed, however, to have little
bearing on observation of performance.
According to Maryam SaeedHashmi (2012) the purpose of this study is to detailed
the role of psychological empowerment in committing employees with organization. This
study experienced the effect of dimensions of psychological empowerment on
organizational commitment in banking sector of Pakistan. Data was collected from
employees working in banks of Pakistan. Results indicated the significant outcome of all
dimensions of psychological empowerment (meaning, competence, self-determination and
impact) on organizational commitment. This study is a donation to theory and practice
with an increased understanding on importance of psychological empowerment in
entrusting the employees with the organization.
According to Saad Hassan, Masoodul Hassan and Muhammad Shoaib (2014)
Banking industries is below strong pressure from the need to fight and respond to speedy
changes in the market. Banks, furthermore, have to motivate their employees to keep their
organization concurrent with the challenges they face. For this, banks have to provide their
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employees with the factors that not only employ their employees in the work but also assist
in crafting satisfied workforce. As a result, the present study aims to examine the result of
perceived organization support (POS), psychological empowerment (PE) and rewards on
employee satisfaction through the conciliation of employee engagement in five big banks
of Pakistan. Data has collected from the 200 employees of five big banks of Pakistan
(HBL, UBL, ABL, MCB and NBP). SPSS 17 has been used for factor analysis, reliability
and correlation and regression analysis. The results confirm that employee engagement
somewhat arbitrate the relationship between POS, PE and employee satisfaction and fully
mediates the association between the rewards and satisfaction. Theoretical and managerial
inferences along with limitations and recommendations for future research have also been
discussed in the paper.
2.9.1 Gap Identified
In banking sector, employees are less satisfied and less empowered than employees
in other streams of work (Kelley 1990). There are no satisfactory studies connecting
structural empowerment and job satisfaction among employees of banking sector. Lack of
structural empowerment might be a reason for these problems faced by banking sector.
Further majority of studies in structural and psychological empowerment are carried out in
manufacturing sector and studies in service sector are concentrated on hotel industry and
hospitals. Empowerment takes different forms in different contexts (Zimmerman 1995). In
the light of above discussion, the present research is directed to travel around the
dimensions of structural empowerment of employees in banking sector and to find out
whether high empowerment can increase job satisfaction among employees in banking
sector.
2.10 AREA OF THE STUDY IDENTIFY
Small empirical work has been done on empowerment, even though it has been
discussed by several management scholars (Conger and Kanungo 1988). Empowerment
literature also divulges a lack of interest in the employee’s perspective of empowerment.
Although a few earlier studies have scrutinized empowerment from the employee’s
perspective (Spreitzer 1995; Corsun and Enz 1999) majority of the empirical work has
been focused on management perspectives (Brymer 1991; Bowen and Lawler 1995;
Lashley 1999; Psoinos and Smithson 2002). However, this study will be of importance
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from academic point of view, as the results of this study may enrich the literature of
empowerment with reverence to employees’ perspective.
2.11CONCLUSION
This study focused on employee empowerment and how empowerment is related to
job satisfaction. In this chapter, a six-dimensional empowerment model is developed.
Different empowerment models were highlighted. These models were developed by some
interested management experts. Most of the models share similar principles. These six
dimensions interact with one another to form an empowered organization. The model
mingles concepts from all of the models reviewed including Conger and Konungo (1988)
Thomas and Velthouse (1990), Altizer (1993), Thomas and Tymon (1993) and Spritzer
(1995). Job satisfaction represents one of the most complex areas facing today’s managers
when it moves toward to managing their employees. Even though thousands of papers and
research have been conducted on job satisfaction all over the world, many studies have
demonstrated an unusually large impact on the job satisfaction. There is a considerable
impact of the employee perceptions for the nature of his work and the level of overall job
satisfaction.
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CHAPTER 3
RESEARCH METHODOLOGY
This section explains the methods applied in researching the thesis. The empirical
approach has been chosen to examine perceptions concerning the banking industry, as well
as the impact on job satisfaction. The sampling procedures are described, followed by the
ways of data collection. Justification of methodology and the ethical consideration of the
research are discussed. Finally the structure for this research is introduced.
3.1 INTRODUCTION
The literature refers to plentiful variables that could contribute toward practicing
the empowerment approach. However for the present study, the six components of
empowerment as recommended by various researchers have been considered for testing the
hypothesis. The present research problem addresses several questions relating to job
satisfaction and empowerments practice such as, what are the dimensions of empowerment
with respect of service industry? What is the relationship between empowerment and job
satisfaction?
3.2 JUSTIFICATION OF METHODOLOGY
Descriptive research methodology was applied for this research. The descriptive
research is defined as “a study designed to depict the participants in an accurate way. In
other words, descriptive research is all about describing people who take part in the study.
The justification for use of this methodology to think about contemporary phenomena in
different areas including psychology, history, sociology, political science, anthropology,
economics management has been recognized by many researchers (Eisenhardt 1989; Perry
1998; Dubois and Gadde 2002; Halinen and Tornroos 2005). The descriptive research is
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concerned with developing decision models rather than real world phenomena. Descriptive
study is highly appropriate for the impact of empowerment on satisfaction among
employees in banking industry with respect to Chennai. Descriptive study is highly
appropriate for the impact of empowerment on satisfaction among employees in banking
industry with respect to Chennai.
3.3 SCOPE OF THE RESEARCH
The scope of the present study is limited to the banking sectors of Chennai city
(India). The banks are chosen from the list of Indian Bank’s Association (IBA).
3.3.1 Independent and Dependent variables
An independent variable is one “that influences the dependent variable in either
positive way or negative way” (Cavana et al. 2001 and Sekaran 1992). Dependent
variables are the ones that are observed and measured in response to the independent
variable. The independent and the dependent variables are listed below:
3.3.1.1Independent variables
Employee empowerment (EE)
Power (EP)
Information (EI)
Reward (ER)
Knowledge (EK)
Self-esteem (ESE)
Leadership (EL)
3.3.1.2 Dependent variable
Employee Satisfaction (ES)
3.4 METHODOLOGY
A two stage research design was proposed for the present study. It is a descriptive
study research.
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3.4.1 Descriptive study
Descriptive studies are typically structured with clearly stated hypothesis and
statistical tools used for testing the hypothesis.
3.5 POPULATION
The intended population of this research study consists of front line bank
employees who directly deal with customers during business hours. Front line employees
are the employees working in the front office of the bank; customers are present during the
service delivery process. Front line employees might include counter clerks, junior
executives or some supervisory grade people who have direct and regular dealings with
customers. They are considered as “customer advocates”, doing whatever it takes to please
customers.
The population is defined in terms of (a) element, (b) units, (c) extent and (d) time
(a) Elements
Employees who are working in the banking sectors that are public sector and
private sector were considered for the study. They were drawn from all the levels of
hierarchy to ensure a fair representation.
(b) Units of the study
Totally 20 banks are selected from Indian Bank’s Association IBA 2012 out of
which 10 public sector banks and 10 private sector banks.
The study is based on survey covering a sample of 513 front line employees
working in both public sector and private sector. The plan was to select approximately 270
employees from each sector (private and public). The sampling employed is Multi Stage
sampling technique. All ten private and ten public sector banks were randomly selected
from the list of IBA.
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Table 3.1 List of Selected Banks in Chennai
Private Bank Public Bank
Axis Bank Indian overseas Bank
City union Bank Bank of Baroda
HDFC Bank Syndicate Bank
ICICI Bank Punjab national bank
Indusind Bank Vijaya Bank
Karnataka Bank State Bank of India
Karurvysya Bank Central Bank
Kodak Mahindra Bank Canara Bank
South Indian Bank Corporation Bank
Tamil Nadu Mercantile Bank Indian Bank
Source: Indian Banks Association (IBA)
(c) Extent
Private sector bank and public sector bank that is located in Chennai city, Tamil
Nadu, India.
3.6 SAMPLE
Sampling is a device by which an estimate of a population’s characteristic can be
obtained and based on probability; a numerical measure of the accuracy of the estimate can
be given (Sprent 1998).
Multistage sampling refers to sampling plans where the sampling is carried out in
stages using smaller and smaller sampling units at each stage.
The Advantages are,
Cost and speed that the survey can be done in
Convenience of finding the survey sample
Normally more accurate than cluster sampling for the same size sample
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3.6.1 Determination of sample size
Sample size n = (ZS/E)2
Where
Z = Standardized value corresponding to a confidence level of 95% = 1.96
S = Sample SD from Pilot Study of sample = 0.587
E = Acceptable Error =5% = 0.05
Hence, Sample size = n = (ZS/E)2
= (1.96*0.578/0.05)2
= 513.37
= 513
Questionnaire was distributed to 270 employees in private sector and 270 employees in
public sector banks.
3.7 RESEARCH INSTRUMENTS FOR DATA COLLECTION
Structured questionnaire was used for data collection. One questionnaire for every
employee was granted. Discussions, with front line employees in the concerned field and
the literature survey helped in created the potential scale of items pertinent for the study.
The questionnaire was conversed with the senior members of bank before the pilot study.
The items were evolved through exploratory study. Cronbach’s Alpha reliability was done
to determine the reliability of questionnaire.
3.7.1 Measurement Scale used
Likert rating scale is used where 1= Strongly Disagree, 2 = Disagree, 3 = Neutral, 4
= Agree, 5 = Strongly Agree
3.8 PILOT STUDY
A pilot study is a mini-version of a full-scale study or a test run done in preparation
of the complete study. The latter is also called a ‘feasibility’ study. It can also be a specific
pre-testing of research apparatus, including questionnaires or interview schedules (Polit
and Baker 1999; Van Teijlingen and Hundley 2001).
The pilot study shaped the platform for the research. It was conducted on 50
samples, Front line employees working in banking industry in Chennai region.
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3.8.1 Validity
Babbie (1990) defined validity as “the point to which an experiential measure
sufficiently reflects the real meaning of the concept under deliberation”. In other words
validity means accuracy of amount.
3.8.2 Content Validity:
“Content validity is the delegate sampling adequacy of the content. This is the
judgment of the researcher, backed by other specialist or researchers or past authors in the
field. Content validity is guided by a query: Is the content of this measure a representative
of the universe of content of the possessions measured” (Kerlinger et al. 1973). “In content
validity, we essentially check the process against the relevant content domain for
construct” (Trochim 2003). There are three ways to achieve content validity (Canava et al.
2001; Kumar 1996), namely from the literature, from qualitative research and from the
judgment of the panel of experts in the field.
As per the pilot study, each completed questionnaire was checked to ensure that the
member had no problem in understanding or answering the questions (Fink 1995). It was
ensured that the respondents followed all the instructions properly.
3.8.3 Reliability
Reliability is an appraisal of how a scale can be relied on to fabricate similar
measurements every time the scales are used. A measure is considered reliable if it would
give the same result over and over again.
Reliability refers to the quantity to which an appraisal tool produces steady and
reliable results. Thus to assess the data collection instrument reliability test are considered.
Inter rater or inter-observer reliability: it is used to assess the degree to which
different observers give reliable estimates of the same experience. The completed
pilot study questionnaire was examined for percent agreement between the raters.
Test-retest reliability: it is used to assess the consistency of the measure from one
time to another. This is analyzed after the final data collection to find out whether
there is consistency in reaction from one time to another.
Cronbach’s Alpha Score: This will generally improve as the inter correlations
amongst test items increase, and is thus known as an internal consistency estimate
of reliability of test scores. Because inter correlations among test items are
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maximized when all items measure the same construct, Cronbach's alpha is broadly
alleged to not directly indicate the degree to which a set of items measures a single
uni-dimensional latent construct.
The present study has developed two schedule of questionnaire. Schedule I thirty
nine questions questionnaire to measure what is the level of empowerment among
employees in both sectors of banks and schedule II twenty two questions of questionnaire
to measure what is the level of satisfaction among employees in both sectors of banks.
Each question was a 5-point Likertitem from “strongly disagree” to “strongly agree”. In
order to understand whether all the questions in this questionnaire reliably measure the
same latent variable (feeling of safety) (so a Likert scale is constructed), a Cronbach's
alpha was run on a sample size of 50 employees.
Table 3.2 Reliability Test for Data Collection Instrument
Sl.No Variables Cronbach’s-Alpha value
1 Power 0.634
2 Information 0.773
3 Rewards 0.739
4 Knowledge 0.695
5 Leadership 0.832
6 Self esteem 0.809
7 Employee Satisfaction 0.694
From the above tables shows that Cronbach’s alpha for all dimensions are above
0.60 which indicates a high level of internal consistency for the scale and also acceptable.
A commonly accepted for describing internal consistency using Cronbach's alpha is
as follows. However, a greater number of items in the test can synthetically inflate the
value of alpha and a sample with a constricted range can reduce it, so this rule should be
used with caution:
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Table 3.3 Cronbach Alpha Values
Cronbach’s Internal Consistency
α ≥ 0.9 Excellent (High-Stakes testing)
0.7 ≤ α < 0.9 Good (Low-Stakes testing)
0.6 ≤ α < 0.7 Acceptable
0.5 ≤ α < 0.6 Poor
α < 0.5 Unacceptable
3.8.4 Confirmatory Factor Analysis
Confirmatory factor analysis (CFA) is used to study the relationships between a set
of observed variables and a set of continuous concealed variables. When the observed
variables are categorical, CFA is also referred to as Item response theory (IRT) analysis
(Baker and Kim 2004; Du Toit 2003; Fox 2010).
Table 3.4 Confirmatory Analysis Testfor Data Collection Instrument
Factors No. of
items
Chi square
value P value
No. of
items
Power 8 20.235 0.123 7
Rewards 7 19.041 0.122 7
Information 7 7.643 0.106 5
Knowledge 7 2.829 0.829 8
Self esteem 8 25.893 0.059 8
Leadership 8 11.790 0.161 6
Employee
Satisfaction
22 8.530 0.665 22
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Table 3.5 Confirmatory Analysis Test for Data Collection Instrument
Factors GFI AGFI CFI RMR RMSEA No. of
items
Power 0.908 0.816 0.919 0.106 0.095 7
Rewards 0.908 0.810 0.905 0.109 0.097 7
Information 0.936 0.761 0.952 0.058 0.136 5
Knowledge 0.982 0.939 1.000 0.024 0.000 8
Self esteem 0.904 0.783 0.935 0.028 0.112 8
Leadership 0.929 0.813 0.961 0.029 0.098 6
Employee
Satisfaction
0.961 0.901 1.000 0.092 0.000 22
From the above table it is found that the calculated P value for above variables
which is greater than 0.05 which indicates perfectly fit. Here GFI (Goodness of fit index)
value and AGFI (Adjusted Goodness of Fit Index) value for above variables which is
greater than 0.9 which represents it is a excellent fit. The calculated CFI (Comparative Fit
Index) for the above variables is greater than 0.9 which represent it is a perfectly fit and
also it is found that RMR (Root Mean Square Residuals) and RMSEA (Root Mean Square
Error of Approximation) value which is less than 0.10 which indicates it is perfectly fit.
3.9 RESEARCH METHOD
Field research method was adopted to collect the necessary data for the studies.
Structured questionnaires were used in collecting the data from the employees. However,
to support the findings, secondary data was collected from the library archives,
government offices, journals, magazines, non-government agencies and supporting
institutions.
3.10 METHOD OF DATA COLLECTION AND ANALYSIS
3.10.1 Data Collection
Questionnaire survey was the principal method of primary data collection. The
questionnaire has three parts. Part A is related to the data pertain to personal background
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factors such as age, sex, marital status and education. In part B, the extent to which the
respondents have been empowered is evaluated, based on the response choice made by the
respondents. Part B of the questionnaire consists of thirty nine statements, which are scaled
from ‘Strongly agree’ (5) to ‘Strongly Disagree’ (1). The first element power is studied by
the first seven statements 1-7, and the second the element reward is studied by the next
seven statements 8-14, the third element information is studied by the next five statements
15- 19, the fourth element knowledge is studied by the next six statements 20-25, the fifth
element self esteem is studied by the next eight statements 26-33, the sixth element is
studied by the next six statements 26-27. In Part C, the extent to which the respondents
have been satisfied is evaluated based on the response choice made by the respondents.
Part C of the questionnaire consists of twenty two statements, which are scaled from
‘Strongly agree’ (5) to ‘Strongly Disagree’ (1).
The questionnaire consisting of altogether 61 statements was used to measure each
of six variables; Power, Rewards, Information, Knowledge, Self esteem and Leadership
and its impact on employee satisfaction. Respondents were asked to indicate the extent of
their own agreement or disagreement with each statement by checking one of the graded
series of 5 points.
The questionnaires were distributed among the respondents. The objectives of the
research is not revealed to the respondents so that, they will not be biased in answering the
questions. Each respondent are asked to fill the questionnaire individually and also will be
given one week time to return. So respondents can take home and fill it leisure, because
respondents can understand English.
3.11 Method of Study
The researcher adopted survey method to collect data for the study. A Field of applied
statistics, survey methodology studied the sampling of individual units from a population
and the associated survey data collection techniques, such as questionnaire construction
and methods for improving the number and accuracy of Reponses to surveys.
3.11.1 Sampling Design
The researcher takes on Multi Stage sampling techniques.Multistage sampling refers to
sampling plans where the sampling is conceded out in stages using smaller and smaller
sampling units at each stage. In a two-stage sampling design, a sample of primary units is
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selected and then a sample of secondary units is selected within each primary unit. This
researchdelineate the growth of estimators under the general situation of two-stage
sampling, believes the allocation question under the setting of equal sized primary and
secondary units.
3.11.2 Selection of Respondents
The respondents for the study are drawn from low level employees to top level
employees as they have equal importance in their roles and responsibilities. By using Multi
Stage sampling method 513 respondents from the banking sector have been selected for
this research. The respondents were selected randomly from among those working for a
minimum period of 6 months. The minimum age of respondents is in the minimum range
of 22 to 25 years and maximum is 55 years. The educational qualification is an
undergraduate while choosing respondents; care was taken to represent all functional areas
so that the sample can be considered as truly representative of the population.
3.12 SOURCES OF DATA
3.12.1 Primary Data
This study is mostly based on primary data collected from the 513 employees
working in selected banks branches all around Chennai.
3.12.2 Secondary Data
The secondary data has been collected from books, journals, reports, personal
meeting, seminars and web based resources.
3.13 TOOLS FOR DATA COLLECTION
The tool used for study is Questionnaire.
In any service setting survey, a rapport between the researcher and the respondents
is crucial for its success. Bearing this in mind, the researcher has been to these banks under
study to meet the respondents, explain to them the purpose of the study and seek their
cooperation.
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3.14 DATA ANALYSIS
After data collection, the questionnaire was checked for completeness. The
statistical package for social science SPSS Version 15.0 was used for processing and
analyzing primary data.
The following statistical tools were used for the analysis of data.
Reliability analysis
Confirmatory test analysis
T- test
ANOVA Test
Chi square test
Pearson correlation analysis
Regression analysis
Multiple regression analysis
3.15 DESCRIPTIVE STATISTICS
Data analysis consisted of descriptive statistics such as mean, standard deviation
and test of hypothesis such as correlation. Regression analysis was further conducted to
study the impact of empowerment on job satisfaction. Structural equation modeling was
also used to validate the regression analysis.
Hypothesis 1-2 were proved by analyzing the data using “t” test. It is conducted to
find out whether the two sets of ratings are “significantly different” from each other or not.
In this research,‘t’ test was conducted to study the significant difference in the mean of
demographic characteristics such as gender and sector of banks with respect to
empowerment among employees in banking sector.
Hypothesis 3-8 were proved by analyzing the data using one way ANOVA. It was
used to determine whether there are any significant differences between the means of three
or more independent variables. In this research, ANOVA test was conducted to study the
significant difference in the mean of demographic characteristics such as age, experience,
training program, level and educational qualification of banks with respect to
empowerment among employees in banking sector (Moore et al. 2003).
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Hypothesis 9-15 were proved by analyzing the data using chi square test. A Chi-
square test is a statistical test commonly used for testing independence and goodness of fit.
Testing independence determines whether two or more observations across two
populations are dependent on each other (that is, whether one variable helps to estimate the
other). Testing for goodness of fit determines if an observed frequency distribution
matches a theoretical frequency distribution. In this research, chi square test was conducted
to study that there is a significant difference between the expected frequencies and the
observed frequencies in one or more categories of demographic characteristics such as
gender, sector of bank, age, experience, training program, level and educational
qualification of banks with respect to satisfaction among employees in banking sector.
Hypothesis 16 was proved by Friedman test. The Friedman test is a nonparametric
test that compares three or more paired groups. In this research, Friedman test was
conducted to study that there is any significant difference between the mean ranks of
employee power, reward, knowledge, information, self esteem and leadership with respect
to empowerment among employees in banking sector.
Impact of empowerment on job satisfaction was analyzed using multiple regression
analysis. The main objective of regression analysis was to explain the variation in one
variable called the dependent variable, based on the variation in one or more variables
called the independent variables. If there is one independent and one dependent variable
then it is called simple regression. If multiple independent variables are used to explain the
variation in a dependent variable, it is called a multiple regression model.
The general regression model (Linear) is of the type
Y = a+ b1x1+ b2x2+...............+bnxn,
Where Y is the dependent variable and x1, x2………, xnare the independent variable
expected to be related to Y and expected to explain or predict Y. b1,
b2,…………bncoefficients of the respective variables, which will be determine from the
input data.
Assuming the model is statistically significant at the desired confidence level,
usually 90-95%, the coefficient of determination or the R2
of the model is an important part
of the output. The R2
value is the percentage (or proportion) of the total variance in Y
explained by all the independent variables in the regression equation. (RajedraNargundkar
2011)
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Fig 3.1 Conceptual Model discussing the Impact of
Employee Empowerment on Job Satisfaction
Multiple regression equation:
JS = ao+ b1 (EP) + b2 (ER) + b3 (EI) + b4 (EK) + b5 (ES) + b6 (EL)………….. Equation
3.16 STRUCTURAL EQUATION MODELING (SEM)
Structural equation modeling, shortly called as SEM is a statistical technique used
for testing and estimating casual relationship using a combination of statistical data and
qualitative casual assumptions. It is also a powerful multivariate technique. It is
confirmatory, rather than exploratory technique, i.e., a researcher is more likely to use
structural equation modeling to determine whether a certain model is valid rather than to
find a suitable model. Path diagram plays an integral part in SEM. They are like
flowcharts, showing the variables interconnected with lines that are used to indicate the
casual flow. Casual models can involve manifest variables, latent variables, latent or both.
SEM can also be used as an extension of linear regression analysis. Structural equation
Empowerment
Power
Reward
Information
Knowledge
Self Esteem
Leadership
Job satisfaction
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modeling is verified using AMOS software, Analysis of Moments. In AMOS the Model
parameters stand out precisely.
The regression models are studied for validity under SEM. Exogenous latent
variables are synonyms to independent variables. They are the sources of fluctuation in the
values of other latent variables in the model. Endogenous latent variables are synonymous
with dependent variable and as such influenced by the exogenous variables in the model
either directly or indirectly. The exogenous and endogenous are indicated along with
regression equations.
3.17 Ethical Considerations
The reflection of ethics in research, and in general business for that matter is of
budding importance. It, for that reason, understands the basics of ethical research and how
this might affect your research project. This is particularly important if the research
involves communication with businesses or members of the common community who
serve as participants (i.e., respondents) in your research.
The subsequent Code of Ethics for the process of conduction of the present research:
Respondents have participated in the survey willingly and fully knowledgeable
about the aims and objectives of the study.
Texts belonging to other authors that have been used in any part of this study have
been fully referenced with standard Referencing System.
The questionnaires did not contain any demeaning, judicious or any other
undesirable language that could be unpleasant to any members of the sample group.
The questionnaire has been deliberated to collect information directly related to the
research questions, and no private or personal questions were asked from
respondents.
Informed consent of participants has been received before involving them in the
study.
Members of the sample group have not been subjected to compulsion in any ways.
Privacy of the research applicant has been guarantee, so that no personal data were
collected form respondents.
Participation in surveys and in-depth interviews are intentional.
Falsification, fabrication and misinterpretation of data are implicated.
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Respect for the self-esteem of research participants had been prioritized.
The safety of the privacy of research participants was guarantee.
Any dishonesty or exaggeration about the aims and objectives of the research was
avoided.
Any type of statement in relation to the study was done with honesty and
transparency.
Any type of false information, as well as representation of primary data findings in
an inclined way was avoided.
78
CHAPTER 4
ANALYSIS OF DATA
4.1 INTRODUCTION
Analysis and interpretation are central steps in the research process. The aim of the
analysis is to organize, classify and then, summarize the collected data so that they can be
better comprehended and interpreted to give answers to the questions that triggered the
research. Interpretation is the search for the broader meaning of findings. Analysis is not
fulfilled without interpretation; and interpretation cannot proceed without analysis. So,
both are inter dependent.
In this chapter a detailed analysis of the collected data has been attempted as per
the objectives stated earlier. Hypotheses were also tested based on the findings of the
study, interpretations and conclusions drawn. In this chapter the following statistical
techniques for the analysis of the data gathered for the present study viz., Descriptive
analysis and Inferential statistics etc.
4.2 DESCRIPTIVE ANALYSIS ON SAMPLE
Percentage analysis is one of the statistical measures used to describe the
characteristics of the sample or population in totality. Percentage analysis involves
computing measures of variables selected of the study and its finding will give easy
interpretation for the reader.
4.3 PROFILE OF THE RESPONDENTS
In social sciences research personnel characteristics of respondents have very
significant role to play in expressing and giving the responses about the problem.
79
The identification of the demographic profile of the sample was necessary in order
to study the relationship between various demographic variables and structural
empowerment. Age of the respondents is one of the most important characteristics in
understanding their views about the particular problems; by and large age indicates level of
maturity of individuals in that sense age becomes more important to examine the response.
Gender is another important variable in a given Indian social situation which is
variably affected by any social or economic phenomenon and globalization is not an
exception to it. Hence the variable gender was investigated for this study.
Marriage is one of the most important social institutions. In a developing country
like India, it has undergone many changes. The perceptions and attitudes of the person can
also differ by the marital status of the persons because the marriage might make the
persons little more responsible and matured in understanding and giving the responses to
the questions asked.
Education is one of the most important characteristics that might affect the person’s
attitudes and the way of looking and understanding any particular social phenomena. In a
way, the response of an individual is likely to be determined by his educational status and
therefore it becomes imperative to know the educational background of the respondents.
Income of a person plays an important role in shaping the economic conditions of
an individual which in turn is likely to have bearing on the responses about a problem
posed to him. The researcher, therefore in this study attempted to investigate the income as
variable and the data related to income of the respondents.
The demographic questions enabled to assess the personal characteristics of
individuals in the sample with respect to gender, age, education level and designation.
These demographic items are designed vis-à-vis the purpose of the research, which was to
investigate the employee's basic and specific individual situations in the selected banks in
Chennai.
In present day banking environment, men and women work with each other in
availing banking services.
80
Gender Profile
The gender issues in empowerment are relevant. So the genders of respondents’
were examined.
Table 4.1 Frequency Distribution of Gender of Employees
Gender Frequency Percentage
Male 273 53.2
Female 240 46.8
Total 513 100.0
Fig.4.1 Bar Diagram Represents Gender of Bank Employees
Despite the progress made by women in the workplace during the last three
decades, International Labour Organization (ILO) reports that women represent only over
40% of the global workforce as cited by Hechanova et al. (2006). Among the 513
employees covered in the survey, 53.2% of the sample (n=513) belonged to male category
and only 46.8 % (n =513) were females as shown in the Table 5.4. Thus the male-female
ratio in the sample is almost 2:1.
0
10
20
30
40
50
60
Male Female
Pe
rce
nta
ge
Gender
81
Age profile
The employees grow older their needs and preferences may change and people may
be bored with their present jobs and they require challenges, (Mondy,Noe and Premeaux
2002). So aging may influence perceived empowerment and hence age of the respondents
was collected to see whether there is any link between the age of the employee and
structural empowerment. The entire sample is categorized into four age groups.
Table 4.2 Frequency Distribution of Age Group of Bank Employees
Age Group Frequency Percent
Below 35 106 20.7
36-45 212 41.3
46-55 108 21.1
Above 55 87 17.0
Total 513 100.0
Figure 4.2 Bar diagram represents age group of the employees in years
0
5
10
15
20
25
30
35
40
45
Below 35 36-45 46-55 Above 55
Pe
rce
nta
ge
Age Group
82
The number of respondents in each age category is presented in Table 4.3. The
largest percentage of respondents in the present sample is in the age group of 36-45(41.3,
n=513). 20.7% of the respondents are in the age group below 35, 21.1% in the age group of
46-55 and 17.0% in the age group of above 55.Thus majority of the sample (41.3%)
belongs to the age group of 36-45 years.
Education Profile
It has been argued that people who have high level of education are more careers
driven (Kram 1983). They would be more likely to perceive that they are empowered.
Thus, educational profile of the respondents is surveyed on the assumption that the level of
education would affect the structural empowerment of the respondents.
Table 4.3Frequency Distribution of Educational level of the bank employees
Educational Qualification Frequency Percent
UG 198 38.6
PG 136 26.5
Professional 179 34.9
TOTAL 513 100.0
Figure 4.3Bar diagram represents Educational qualification of the bank employees
0
5
10
15
20
25
30
35
40
45
UG PG Professional
Pe
rce
nta
ge
Educational Qualification
83
Majority of the respondents among the sample were undergraduates (38.6%) and almost
26.5% were postgraduates. Nearly 34.9% of the respondents were professional graduates.
Designation of Employees
As there is no homogeneity in the designations in different banks, the employees
are categorized on the basis of their designation into three levels - senior level, middle
level and junior level. Junior level employees are those coming under the clerical staff and
assistant managers, middle level includes those employees in the managerial level above
assistant managers and senior level employees includes the senior manager, chief manager
and branch manager category. Break up of employees with respect to their employment
level are given in Table 4.4.
Table 4.4Frequency Distribution of DesignationofBank Employees
Designation Frequency Percent
Senior level 123 24.0
Middle level 220 42.9
Junior level 170 33.1
Total 513 100.0
Figure 4.4Bar diagram represents the designation of bank employees
0
5
10
15
20
25
30
35
40
45
50
Senior level Middle level Junior level
Pe
rce
nta
ge
Designation
84
From the above table 24 percent of employees fall in the group of senior level and
42.9 percent of employees fall in the group of middle level and remaining 33.1 percent of
employees fall in the group of junior level. Hence middle level employees are more in
representation.
Level of Experience
The professional experience brings with it the maturity for any person to decide
precisely what he requires from bank. According to experience, the employees of the banks
are divided into three groups. The employees of first group (E1) have the experience of
below 10 years, second group employees (E2) have 11-20 years’ experience and the third
group employees (E3) have above 20 years’ experience.
Table 4.5 Frequency Distribution of Level of Experiences of Bank Employees
Experienceinyears Frequency Percent
Below 10 174 43.9
11-20 170 33.1
Above 20 169 22.9
Total 513 100.0
Figure 4.5Bar diagram represents thelevels of Experiences of bank employees
0
10
20
30
40
50
Below 10 11 to 20 Above 20
Pe
rce
nta
ge
Experience in years
85
Majority of the respondents were experienced below 10 years (n=174, 43.9%). And
170 of the respondents have 11-20 years experience of which (33.1%). Remaining 169
respondents have above 20 years experience of which (22.9%).
Level of training
The challenges associated with the changing nature of work and the workplace
environment is as real for the campus as elsewhere. Rapid change requires a skilled,
knowledgeable workforce with employees whoare adaptive, flexible, and focused on the
future. Previous Research found that the frequency of training received have an impact on
job performance.
Table 4.6 Frequency Distribution of Level of Trainings ofBank Employee
No. of training attended Frequency Percent
Upto 2 168 32.7
3-5 166 32.4
Above 6 179 34.9
Total 513 100.0
Figure 4.6Bar diagram represents the Level of Trainings of bank employees
0
5
10
15
20
25
30
35
40
Upto 2 3 to 5 6 and above
Pe
rce
nta
ge
No.of Training
86
It can be observed that 168 employees had training below 2 (32%). Of the
respondents 166 had received 3 to 5 trainings which come to (33%). The remaining
respondents 179 persons had got 4 and above trainings (34%). Actually this is considerable
percentage and this is another indicates of empowerment.
Category of bank
Two categories of banks namely: public sector and private sector banks were studied.
Table 4.7 Frequency Distribution ofCategory of Bank Employees
Category of Bank Frequency Percent
Public Sector 253 49.3
Private Sector 260 50.7
Total 513 100.0
Figure 4.7 Bar diagram represents the Category of bank employees
0
10
20
30
40
50
Public Sector Private Sector
Pe
rce
nta
ge
Category of Bank
87
Out of the total population of 513 respondents, 253 of employees are from public
sector bank. And remaining of 260 employees was from private sector bank. Compare to
the categories of bank, private sector employees are higher in representation.
Level of monthly income
As the income level of a person improves, it brings about a change in his/her life
style. Bank customers are no exception to this general phenomenon observed everywhere.
Table 4.8Frequency Distribution ofLevel of Monthly Incomeof Bank Employees
Monthly Income Frequency Percent
Below 20000 140 27.3
20000-30000 92 17.9
30000-40000 116 22.6
40000-50000 98 19.1
Above 50000 67 13.1
Total 513 100.0
Figure 4.8 Bar diagram represents themonthly Income of bank employees
0
5
10
15
20
25
30
Below 20000 20000-30000 30000-40000 40000-50000 Above 50000
Pe
rce
nta
ge
Monthly Income
88
From the above table, 27% of employees are below 20000, 18% of employees are
between 20000 and 30000, 23% of employees are between 30000 and 40000, 19% of
employees are between 40000 and 50000, 13% of employees are above 50000. Compare to
the monthly income of employees, employees below 20000 are higher in representation.
Level of Empowerment
Table 4.9 Frequency Distribution ofLevel ofEmployeeEmpowerment
of BankEmployees
Level of Employee Empowerment Frequency Percent
Low 129 25.1
Moderate 249 48.5
High 135 26.3
Total 513 100.0
Figure 4.9 Bar diagram represents the Level of Employee Empowerment of
bank employees
0
10
20
30
40
50
60
Low Moderate High
Per
cen
tage
Level of Employee Empowerment
89
Table 4.9 clearly shows that with regard to the structural empowerment, out of the
513 respondents, 25.1% fall in the low category; nearly 48.5% fall in the medium category
about 26.3% fall in the high category. This means that majority of the respondents
belonged to the medium category as far as their structural empowerment is concerned.
Level of employee Satisfaction
Table 4.10 Frequency Distribution of Level of Employee Satisfaction
of Bank Employees
Level of Employee Satisfaction Frequency Percent
Low 134 26.1
Moderate 240 46.8
High 139 27.1
Total 513 100.0
Figure 4.10Bar diagram represents the Level of Employee Satisfaction
0
5
10
15
20
25
30
35
40
45
50
Low Moderate High
Pe
rce
nta
ge
Level of Employee Satisfaction
90
As far as Job Satisfaction is concerned, 26.1% of the respondents fall in the low
category, more than 46.8% fall in the medium category and about 27.1% fall in the high
category. This is shown in the Table 4.10
4.4 INFERENTIAL ANALYSIS ON SAMPLE
Inferential statistics are statistics which are used to make inferential statements
about a population. These statistics rely on the use of a random sampling technique which
ensures that a sample is representative of the population at large. They differ from
descriptive statistics, which describe only the data itself in statistical terms.
In this section, the population was intended to analysis. The results are derived
from statistical tools. The tools are t-test, ANOVA test, Chi-Square test, Correlation
analysis, Regression analysis, Friedman test.
HYPOTHESIS I
Null Hypothesis: It is observed that there is no significant difference between male
and female and dimensions of Employee Empowerment of Bank Employees
Table 4.11 Student Test for Significant Difference between Male and Female and
Dimensions of Employee Empowerment
Dimensions of
Employee
Empowerment
Gender
t value
P value Male Female
Mean SD Mean SD
Power 25.21 2.99 25.84 2.95 2.391 0.017*
Rewards 26.47 3.87 27.05 3.03 1.870 0.061
Information 18.13 2.59 18.52 2.14 1.842 0.066
Knowledge 23.42 3.87 24.21 3.52 2.409 0.016*
Self Esteem 41.11 7.39 43.16 4.76 3.682 0.000**
Leadership 15.10 2.92 15.76 2.78 2.624 0.009**
Overall Employee
Empowerment 149.43 16.14 154.53 11.00 4.129 0.000**
91
Note: 1. ** Denotes significant at 1% level
2. * Denotes significant at 5% level
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level
with regard to self esteem, leadership and overall employee empowerment. Hence, it is
concluded that there is significant difference between male and female with respect to self
esteem, leadership and overall employee empowerment. Based on Mean Square, female
employee have more self esteem, leadership and over all employee empowerment.
Since P value is less than 0.05, the null hypothesis is rejected at 5 Percent level
with regard to power and knowledge. Based on Mean Square female employee have more
power and knowledge than male employee.
It is observed that there is no significant difference between male and female with
respect to reward and information. Since P value is greater than 0.05. Hence the null
hypothesis is accepted at 5 Percent level with regard to reward and information.
92
HYPOTHESIS II
Null Hypothesis: It is observed that there is no significant difference between
Public Bank and Private Bank with respect to dimensions of Employee Empowerment of
Bank Employees.
Table 4.12 Student Test for Significant Difference between Public and Private with
Respect to Dimensions of Employee Empowerment
Dimensions of
Employee
Empowerment
Category of Bank
t value
P value
Public Sector Private Sector
Mean SD Mean SD
Power 25.93 2.87 25.09 3.04 3.216 0.001**
Rewards 27.11 3.11 26.38 3.83 2.366 0.018*
Information 18.50 2.20 18.13 2.55 1.761 0.079
Knowledge 24.45 3.15 23.15 4.12 4.032 0.001**
Self Esteem 42.67 5.58 41.48 7.03 2.116 0.035*
Leadership 15.84 2.50 14.98 3.14 3.399 0.001**
Overall Employee
Empowerment 154.50 10.99 149.21 16.33 4.293 <0.001**
Note: 1. ** Denotes significant at 1% level
2. * Denotes significant at 5% level
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level
with regard to power, leadership and knowledge and overall employee empowerment.
Hence, it is concluded that there is significant difference between public sector and private
sector with respect to power leadership knowledge and overall employee empowerment.
Based on Mean Square, public sector employees have more power and knowledge and
over all employee empowerment.
Since P value is less than 0.05, the null hypothesis is rejected at 5 Percent level
with regard to reward and self-esteem. Based on Mean Square, public sector employees
have more reward and self-esteem than private sector employee.
93
It is observed that there is no significant difference between public sector and
private sector with respect to information. Since P value is greater than 0.05. Hence the
null hypothesis is accepted at 5 percent level with regard to information.
HYPOTHESIS III
Null Hypothesis: It is observed that there is no significant difference between age
group with respect to dimensions of Employee Empowerment of Bank Employees
Table 4.13 ANOVA for Significant Difference between Age Group
With Respect to Dimensions of Employee Empowerment
Dimensions of
Employee
Empowerment
Age Group in years
F value
P value Below 35 36-45 46-55 Above 55
Power 25.90
b
(2.80)
25.97b
(2.89)
24.81a
(2.89)
24.74a
(3.05) 6.3770 <0.001**
Rewards 27.07
bc
(2.80)
27.32c
(3.16)
26.31ab
(3.10)
25.45a
(4.94) 6.8990 <0.001**
Information 18.60
b
(2.11)
18.64b
(2.09)
18.24b
(2.30)
17.26a
(3.13) 7.7130 <0.001**
Knowledge 24.10
b
(2.84)
24.56b
(3.04)
23.63b
(3.34)
21.74a
(5.52) 12.993 <0.001**
Self Esteem 42.50
bc
(5.18)
43.22c
(5.64)
41.08ab
(6.24)
39.94a
(8.57) 6.7820 <0.001**
Leadership 15.56
b
(2.53)
15.86b
(2.64)
15.19b
(2.84)
14.37a
(3.54) 6.0460 <0.001**
Overall
Employee
Empowerment
153.73c
(10.70)
155.57c
(10.90)
149.28b
(12.70)
143.49a
(21.19) 18.423 <0.001**
Note: 1.The value within brackets refers to standard deviation
2. ** Denotes significant at 1% level
94
3. Different alphabet between years of age group denotes significant at 5% level
using Duncan Multiple Range Test (DMRT)
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level
significance with regard to all dimension of employee empowerment. Hence, it is
concluded that there is significant difference between age group with respect to all
dimension of empowerment. Based on Duncan Multiple Range Test (DMRT) the age of
above 55 is significantly differ with other age group at 5 percent significant level in
information, knowledge and leadership. The age group above 46 is significantly differs
with all other age group at 5 percent significant level in power. For reward and self esteem
the age group above 55 is significantly differ with age group in below 35, between 36 and
45 and also the age group between 36 and 45 is significantly different with age group of
46-45.
The age group below 45 is significantly differs with all other age group at 5 percent
significant level in over all employee empowerment.
95
HYPOTHESIS IV
Null Hypothesis: It is observed that thereis no significant difference between
Educational Qualification and dimensions of Employee Empowerment of Bank Employees
Table 4.14 ANOVA for Significant Difference between EducationalQualifications
With Respect To Dimensions of Employee Empowerment
Dimensions of
Employee
Empowerment
Educational Qualification
F value P value UG PG Professional
Power 24.88
a
(3.15)
25.65b
(2.80)
26.07b
(2.82) 7.897 <0.001**
Rewards 25.95
a
(4.07)
27.32b
(2.71)
27.16b
(3.22) 8.438 <0.001**
Information 18.00
a
(2.67)
18.38ab
(2.15)
18.61b
(2.21) 3.189 <0.001**
Knowledge 22.74
a
(4.48)
24.25b
(2.95)
24.60b
(3.01) 13.757 <0.001**
Self Esteem 41.01
a
(7.14)
42.51b
(6.23)
42.89b
(5.38) 4.627 <0.001**
Leadership 14.87
a
(3.22)
15.58b
(2.51)
15.87b
(2.63) 6.132 <0.001**
Overall
Employee
Empowerment
147.45a
(17.41)
153.70b
(10.81)
155.21b
(10.93) 16.637 <0.001**
Note: 1.The value within brackets refers to standard deviation
2. ** Denotes significant at 1% level
3. Different alphabet between years of age group denotes significant at 5% level
using Duncan Multiple Range Test (DMRT)
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is significance difference between all
96
dimension of employee empowerment and educational qualification. Based on Duncan
multiple range test (DMRT), the educational qualification of Under Graduates are
significantly differ at lower level of empowerment than Post Graduate and professional in
factors of power, reward, knowledge, self esteem, leadership and overall employee
empowerment.At information construct, educational qualification of Under Graduates are
significantly differ at lower level of empowerment than professional employee, but post
graduatecategory does not differ with any other category.
HYPOTHESIS V
Null Hypothesis: It is observed that there is no significant difference between
designations and dimensions of Employee Empowerment of Bank Employees
Table 4.15 ANOVA for Significant Difference between Designations
With Respect To Dimensions of Employee Empowerment
Dimensions of
Employee
Empowerment
Designation
F value P value Senior
level
Middle
level
Junior
level
Power 26.40
b
(2.75)
25.42a
(3.04)
24.96a
(2.95) 08.632 <0.001**
Rewards 27.75
b
(2.88)
26.65a
(3.10)
26.12a
(4.21) 07.991 <0.001**
Information 19.12
c
(1.98)
18.31b
(2.15)
17.74a
(2.78) 12.528 <0.001**
Knowledge 25.12
a
(2.51)
23.86b
(3.30)
22.74a
(4.59) 15.520 <0.001**
Self Esteem 41.25
a
(6.82)
43.00b
(4.63)
41.44a
(7.73) 04.257 <0.015*
Leadership 16.21
b
(2.17)
15.39a
(2.70)
14.84a
(3.37) 08.360 <0.001**
Overall
Employee
Empowerment
155.85c
(10.56)
152.63b
(11.22)
147.84a
(18.37) 12.557 <0.001**
97
Note: 1.The value within brackets refers to standard deviation
2. ** Denotes significant at 1% level
3. * Denotes significant at 5% level
3. Different alphabet between years of designation denotes significant at 5% level
using Duncan Multiple Range Test (DMRT)
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is a significant difference between
designation of bank employee and dimensions of employee empowerment. Based on
Duncan multiple range test (DMRT), the designation of senior level are significantly differ
with higher level of empowerment than middle level and junior level employees in power,
reward and leadership.
Since P value is less than 0.05, the null hypothesis is rejected at 5 percent level of
significance. The designations of middle level are significantly differs with higher level of
empowerment than senior and junior level employees in self esteem and knowledge.
In overall employee empowerment, all the three level of designation are significant
difference at 5 percent level.
98
HYPOTHESIS VI
Null Hypothesis: It is observed that there is no significant difference between
Experiences with respect to Dimensions of Employee Empowerment of Bank Employees
Table 4.16 ANOVA for Significant Difference between Experiences
With Respect To Dimensions of Employee Empowerment
Dimensions of Employee
Empowerment
Experience in years F value P value
Below 10 11-20 Above 20
Power 25.17
a
(3.03)
25.84b
(2.96)
25.51ab
(2.95) 02.168 0.115
Rewards 26.02
a
(4.09)
27.21b
(3.13)
27.00b
(3.11) 05.798 0.003**
Information 17.99
a
(2.72)
18.54b
(2.17)
18.42ab
(2.22) 02.559 0.078
Knowledge 22.85
a
(4.52)
24.31b
(3.20)
24.24b
(3.12) 08.648 <0.001**
Self Esteem 40.12
a
(7.84)
43.11b
(5.54)
43.02b
(4.87) 12.841 <0.001**
Leadership 14.91
a
(3.27)
15.67b
(2.51)
15.65b
(2.72) 03.997 0.019*
Overall Employee
Empowerment
147.05a
(17.96)
154.68b
(10.77)
153.84b
(11.34) 15.896 <0.001**
Note: 1.The value within brackets refers to standard deviation
2. ** Denotes significant at 1% level
3. * Denotes significant at 5% level
4. Different alphabet between experiences in years denotes significant at 5% level
using Duncan Multiple Range Test (DMRT)
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is a significant difference between
experience in years and dimensions of employee empowerment. Based on Duncan multiple
range test (DMRT), employees below 10 years experience are significantly differ with
99
experience between 11 and 20 years, but above 20 does not differs with other category in
reward, knowledge, self esteem and overall employee empowerment.
Since P value is less than 0.05, the null hypothesis is rejected at 5 percent level of
significance. Based on Duncan multiple range test (DMRT), employees below 10 years
experience are significantly differ with experience between 11 and 20 years and also above
20 years in leadership.
Employees have no significant difference with experience in years for employee
power and information.
HYPOTHESIS VII
Null Hypothesis: It is observed that there is no significant difference between No.
of training attended and dimensions of Employee Empowerment of Bank Employees
Table 4.17 ANOVA for Significant Difference between Numbers Of
Training Attended With Respect To Dimensions of Employee Empowerment
Dimensions of Employee
Empowerment
No. of training attended F value P value
Up to 2 3-5 5-7
Power
25.29
(3.11)
25.54
(2.90)
25.67
(2.95) 0.712 0.491
Rewards
26.17a
(4.14)
27.08b
(3.06)
26.95b
(3.19) 3.393 0.034*
Information
18.10
(2.77)
18.46
(2.24)
18.38
(2.13) 1.033 0.357
Knowledge
22.98a
(4.67)
24.21b
(2.87)
24.16b
(3.32) 6.004 0.003**
Self Esteem
40.31a
(7.85)
42.84b
(5.67)
43.00b
(4.99) 9.843 <0.001**
Leadership
14.93a
(3.38)
15.56b
(2.43)
15.70b
(2.69) 3.500 0.031*
Overall Employee
Empowerment
147.79a
(18.85)
153.69b
(10.14)
153.87b
(11.29) 10.461 <0.001**
100
Note: 1.The value within brackets refers to standard deviation
2. ** Denotes significant at 1% level
3. * Denotes significant at 5% level
3. Different alphabet between numbers of training attended denotes significant at
5% level using Duncan Multiple Range Test (DMRT).
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is a significant difference between number of
training attended and knowledge, self esteem and overall employee empowerment. Based
on Duncan multiple range test (DMRT), training attended up to 2 are significantly differ
with training attended between 3 and 4, between 5 and 7 in knowledge, self esteem and
overall employee empowerment.
Since P value is less than 0.05, the null hypothesis is rejected at 5 percent level of
significance. Hence, it is concluded that there is a significant difference between number of
training attended and Reward and leadership. Based on Duncan multiple range test
(DMRT), training attended between 3 and 4 and between 5 and 7 at 5 percent level.
In power and information, Employee has no significant difference between the numbers of
trainings attended.
101
HYPOTHESIS VIII
Null Hypothesis: It is observed that there is no significant difference between
Monthly Income and dimensions of Employee Empowerment of Bank Employees
Table 4.18 ANOVA for Significant Difference betweenMonthly Incomes
With Respect To Dimensions of Employee Empowerment
Note: 1.The value within brackets refers to standard deviation
2. ** Denotes significant at 1% level
3. * Denotes significant at 5% level
3. Different alphabet between monthly incomes denotes significant at 5% level
using Duncan Multiple Range Test (DMRT)
Dimensions of
Employee
Empowerment
Monthly Income(in thousands)
F value P value < 20 20-30 30-40 40-50 > 50
Power
24.83a
(3.10)
25.39ab
(2.66)
25.73b
(3.21)
26.13b
(2.57)
25.75b
(3.13) 03.247 0.012*
Rewards
25.90a
(4.14)
26.87ab
(2.98)
26.92ab
(3.48)
27.38b
(3.07)
27.04b
(3.15) 03.101 0.015*
Information
17.64a
(2.78)
18.68b
(2.18)
18.58b
(1.91)
18.43b
(2.50)
18.58b
(2.16) 04.018 0.003*
Knowledge
22.24a
(4.78)
24.65b
(3.04)
23.77b
(3.10)
24.74b
(2.80)
24.49b
(3.29) 10.129 <0.001**
Self Esteem
40.13a
(8.02)
41.16ab
(7.24)
42.26bc
(5.13)
43.80cd
(4.35)
44.49d
(3.77) 08.413 <0.001**
Leadership
14.82
(3.38)
15.88
(2.62)
15.42
(2.71)
15.66
(2.42)
15.57
(2.81) 02.352 0.053
Overall
Employee
Empowerment
145.56a
(18.85)
152.64b
(12.25)
152.68b
(9.65)
156.14b
(10.87)
155.93b
(11.85) 11.542 <0.001**
102
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is a significant difference between monthly
income and knowledge, self esteem and over all employee empowerment. Based on
Duncan multiple range test (DMRT) in knowledge and overall employee empowerment,
monthly income below 20 are significantly differ with monthly income between 20 and 30,
between 30 and 40, between 40 and 50 and also above 50. In self esteem below 20
significantly differs with above 50 but between 20 and 30, between 30 and 40, between 40
and 30 of monthly income are not significant with other group of income.
Since P value is less than 0.05, the null hypothesis is rejected at 5 percent level of
significance. Hence, it is concluded that there is a significant difference between monthly
income and power, reward and information. Based on Duncan multiple range test
(DMRT), in power and reward, the income below 20 are significantly differ with income
between 30 and 40, between 40 and 50 and also above 50. In information, income below
20 is significantly differing with income between 20 and 30, between 30 and 40, between
40 and 50 and also above 50.In leadership, employees have no significant difference in
monthly income.
103
ASSOCIATION BETWEEN GENDER OF BANK EMPLOYEES AND LEVEL OF
SATISFACTION OF EMPLOYEES
HYPOTHESIS IX
Null Hypothesis: It is observed that there is no association between gender and
level of employee satisfaction of bank employees
Table 4.19 Chi-Square Test for Association between Gender and
Level of Employee Satisfaction of Bank Employees.
Gender Level of Employee Satisfaction
Total Chi-square
value P value
Low Moderate High
Male
79
(28.9)
[59.0]
125
(45.8)
[52.1]
69
(25.3)
[49.6]
273
2.610 0.271
Female
55
(22.9)
[41.0]
115
(47.9)
[47.9]
70
(29.2)
[50.4]
240
Total 134 240 139 513
Note: 1. The value within ( ) refers to Row Percentage
2. The value within [ ] refers to Column Percentage
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is association between employee gender and
level of employee satisfaction. 28.9 percent of males have low level of employee
satisfaction and 25.3 percent of females have high level of employee satisfaction where as
22.9 percent of females have low level of employee satisfaction and 29.2 percent of
females have high level of employee satisfaction. From this, it is concluded that more
number of males have low level of satisfaction and more number of females have high
level of satisfaction.
104
HYPOTHESIS X
Null Hypothesis: It is observed that there is no association between age group and level of
employee satisfaction of bank employees
Table 4.20 Chi-Square Test for Association between Age Group and Level of
Employee Satisfaction of Bank Employees
Age Group
in years
Level of Employee Satisfaction Total
Chi-square
value P value
Low Moderate High
Below 35
18
(17.0)
[13.4]
49
(46.2)
20.4]
39
(36.8)
28.1]
106
48.117 <0.001**
36-45
43
(20.3)
[32.1]
97
(45.8)
[40.4]
72
(34.0)
[51.8]
212
46-55
49
(45.4)
[36.6]
40
(37.0)
[16.7]
19
(17.6)
[13.7]
108
Above 55
24
(27.6)
[17.9]
54
(62.1)
[22.5]
9
(10.3)
[6.5]
87
Total 134 240 139 513
Note: 1. The value within ( ) refers to Row Percentage
2. The value within [ ] refers to Column Percentage
3. ** Denotes significant at 1% level
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is association between employee age group
and level of employee satisfaction. 17.0 percent of age below 35 have low level of
employee satisfaction and 36.8 percent of age below 35 has high level of employee
satisfaction and 20.3 percent of ages between 36 and 45 have low level of employee
satisfaction and 34.0 percent of ages between 36 and 45 have high level of employee
105
satisfaction.45.4 percent of ages between 46 and 55 have low level of employee
satisfaction and 17.6 percent of ages between 46 and 55 have high level of employee
satisfaction. 27.6 percent of ages above 55 have low level of employee satisfaction and
10.3 percent of ages above 55 have high level of employee satisfaction. From this, it is
concluded that more number of age group below 35 and between 36 and 45 have high level
of employee satisfaction where as more number of age group between 46 and 55 and above
55 have low level of employee satisfaction.
HYPOTHESIS XI
Null Hypothesis: It is observed that there is no association between educational
qualification and level of employee satisfaction of bank employees
Table 4.21 Chi-Square Test for Association between Educational
Qualification and Level of Employee Satisfaction of Bank Employees
Educational
Qualification
Level of Employee
Satisfaction Total Chi-square
value P value
Low Moderate High
UG
63
(31.8)
[47.0]
91
(46.0)
[37.9]
44
(22.2)
[31.7]
198
10.879 0.028* PG
30
(22.1)
[22.4]
72
(52.9)
[30.0]
34
(25.0)
[24.5]
136
Professional
41
(22.9)
[30.6]
77
(43.0)
[32.1]
61
(34.1)
[43.9]
179
Total 134 240 139 513
Note: 1. The value within ( ) refers to Row Percentage
2. The value within [ ] refers to Column Percentage
3. * Denotes significant at 5% level
106
Since P value is less than 0.05, the null hypothesis is rejected at 5 percent level of
significance. Hence, it is concluded that there is association between employee educational
qualification and level of employee satisfaction. 31.8 percent of UG qualification has low
level of satisfaction and 22.2 percent of UG qualifications have high level of satisfaction.
22.1 percent of PG qualification has low level of satisfaction and 25.0 percent of PG
qualification has high level of satisfaction. 22.9 percent of professional qualification has
low level of satisfaction and 34.1 percent of professional qualification has high level of
satisfaction. From this, it is concluded that more number of UG qualification have low
level of satisfaction and more number of PG and Professional qualification have high level
of satisfaction. It is further added that the level of employee satisfaction is depend upon the
educational qualification.
HYPOTHESIS XII
Null Hypothesis: It is observed that there is no association between category of
bank and level of employee satisfaction of bank employees
Table 4.22 Chi-Square Test for Association between Categories of Bank
And Level Of Employee Satisfaction of Bank Employees
Category
of Bank
Level of Employee Satisfaction Total
Chi-square
value P value
Low Moderate High
Public
Sector
59
(23.3)
(44.0)
118
(46.6)
[49.2]
76
(30.0)
[54.7]
253
3.098 0.212 Private
Sector
75
(28.8)
[56.0]
122
(46.9)
[50.8]
63
(24.2)
[45.3]
260
Total 134 240 139 513
Note: 1. The value within ( ) refers to Row Percentage
2. The value within [ ] refers to Column Percentage
Employees have no association between category of bank and level of employee
satisfaction.
107
HYPOTHESIS XIII
Null Hypothesis: It is observed that there is no association between monthly
income and level of employee satisfaction of bank employees
Table 4.23 Chi-Square Test for Association between Monthly Incomes
and Level Of Employee Satisfaction of Bank Employees
Monthly
Income
Level of Employee Satisfaction Total
Chi-square
value P value
Low Moderate High
Below
20000
38
(27.1)
[28.4]
75
(53.6)
[31.3]
27
(19.3)
[19.4]
140
20.025 0.010**
20000-
30000
31
(33.7)
[23.1]
44
(47.8)
[18.3]
17
(18.5)
[12.2]
92
30000-
40000
27
(23.3)
[20.1]
56
(48.3)
[23.3]
33
(28.4)
[23.7]
116
40000-
50000
21
(21.4)
[15.7]
42
(42.9)
[17.5]
35
(35.7)
[25.2]
98
Above
50000
17
(25.4)
[12.7]
23
(34.3)
[9.6]
27
(40.3)
[19.4]
67
Total 134 240 139 513
Note: 1. The value within ( ) refers to Row Percentage
2. The value within [ ] refers to Column Percentage
3. ** Denotes significant at 1% level
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is association between employee monthly
income and level of employee satisfaction.27.1 percent of employees having monthly
108
income below 20,000 have low level of employee satisfaction and 19.3 percent of
employees have high level of employee satisfaction.33.7 percent of employees having
monthly income between 20,000 and 30,000 have low level employee satisfaction and 18.5
percent of employees have high level of employee satisfaction. 23.3 percent of employees
having monthly income between 30,000 and 40,000 have low level employee satisfaction
and 28.4 percent of employees have high level of employee satisfaction. 21.4 percent of
employees having monthly income between 40,000 and 50,000 have low level employee
satisfaction and 35.7 percent of employees have high level of employee satisfaction. 25.4
percent of employees having monthly income above 50,000 have low level employee
satisfaction and 40.3 percent of employees have high level of employee satisfaction. From
this, it is concluded that more number of employees having monthly income below 20,000
and between 20,000 and 30,000 have low level of employee satisfaction where as
employees having monthly income between 30,000 and 50,000 and above 50,000 have
high level of employee satisfaction.
109
HYPOTHESIS XIV
Null Hypothesis: It is observed that there is no association between no. of training
attended and level of employee satisfaction of bank employees.
Table 4.24 Chi-Square Test for Association between No. of Training Attended And
Level of Employee Satisfaction of Bank Employee
No. of
training
attended
Level of Employee satisfaction
Total Chi-square
value P value
Low Moderate High
Up to 2
54
(32.1)
[41.9]
76
(45.2)
[30.5]
38
(22.6)
[28.1]
168
12.226 0.016* 3-4
32
(19.3)
[24.8]
94
(56.6)
[37.8]
40
(24.1)
[29.6]
166
5-7
43
(24.0)
[33.3]
79
(44.1)
[31.7]
57
(31.8)
[42.2]
179
Total 129 249 135 513
Note: 1. The value within ( ) refers to Row Percentage
2. The value within [ ] refers to Column Percentage
3. * Denotes significant at 5% level
P value is less than 0.05; the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that there is association between number of training
attended and level of employee satisfaction. Respondents attend up to 2 trainings have low
and high level of satisfaction, accounting for 32.1 percent and22.8 percent respectively.
Respondents attend 3-4 trainings have low and high level of satisfaction, which comes to
19.3 and 24.1 percent respectively. Respondents attend 5-7 trainings have low and high
level of satisfaction, which comes to 33.3 percent and 42.2 percent respectively. From this
110
it is concluded that employees attended trainings upto 2 have low level of satisfaction
where as employees attended trainings 5-7 have high level of satisfaction.
HYPOTHESIS XV
Null Hypothesis: It is observed that there is no association between Level of
Employee Empowerment and level of Employee Satisfaction of bank employees
Table 4.25 Chi-Square Test for Association between Level of Employee
Empowerment and Level of Employee Satisfaction of Bank Employees
Level of
Employee
Empowerment
Level of Employee
Satisfaction Total Chi-square
value P value
Low Moderate High
Low
75
(58.1)
[56.0]
54
(41.9)
[22.5]
0
(0.0)
[0.0]
129
200.967 <0.001** Moderate
47
(18.9)
[35.1]
150
(60.2)
[62.5]
52
(20.9)
[37.4]
249
High
12
(8.9)
[9.0]
36
(26.7)
[15.0]
87
(64.4)
[62.6]
135
Total 134 240 139 513
Note: 1. The value within ( ) refers to Row Percentage
2. The value within [ ] refers to Column Percentage
3. ** Denotes significant at 1% level
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that, there is association between employee
empowerment and level of employee satisfaction. 58.1 percent of employees having low
level of empowerment have low level of employee satisfaction and 0.0 percent of
employees having low level of empowerment have high level of employee satisfaction.
111
18.9 percent of employees having moderate level of empowerment have low level of
employee satisfaction and 20.9 percent of employees having moderate level of
empowerment have high level of employee satisfaction.
Also 8.9 percent of employees having high level of empowerment have low level
of employee satisfaction and 64.4 percent of employees having high level of empowerment
have high level of employee satisfaction. From this, it is concluded that, more number of
employees having low level of empowerment have low level of employee satisfaction
where as more number of employees having moderate and high level of empowerment
have high level of employee satisfaction.
HYPOTHESIS XVI
Null Hypothesis: It is observed that there is no significant difference between mean
rank towards dimensions of Employee Empowerment satisfaction of bank employees.
Table 4.26 Friedman Test for Significant Difference between
Mean Rank towards Dimensions of Employee Empowerment.
Dimensions of Employee
Empowerment Mean Rank
Chi-square
value P value
Power 2.55
537.582 <0.001**
Rewards 3.32
Information 2.70
Knowledge 4.13
Self Esteem 4.77
Leadership 3.53
Note: 1. ** Denotes significant at 1% level
Since P value is less than 0.01, the null hypothesis is rejected at 1 percent level of
significance. Hence, it is concluded that, there is difference between mean ranks towards
dimensions of employee empowerment. Based on mean rank employee self esteem (4.77)
is the most effective dimension of employee empowerment, is followed by employee
knowledge (4.13), employee leadership (3.53), employee rewards (3.32), employee
information (2.70), employee power (2.55).
112
CORRELATION COEFFICIENT BETWEEN POWER, REWARDS,
INFORMATION, KNOWLEDGE, SELF ESTEEM AND LEADERSHIP
Table 4.27 Pearson Correlation Coefficient between Power, Rewards,
Information, Knowledge, Self Esteem and Leadership
Dimensions of
Employee
Empowerment
Power Rewards Information Knowledge Self
Esteem Leadership
Power 1.000 0.432** 0.148** 0.440** 0.183** 0.276**
Rewards - 1.000 0.437** 0.514** 0.187** 0.196**
Information - - 1.000 0.466** 0.140** 0.266**
Knowledge - - - 1.000 0.299** 0.531**
Self Esteem - - - - 1.000 0.109*
Leadership - - - - - 1.000
Note: 1. ** Denotes significant at 1% level
2. * Denotes significant at 5% level
The correlation coefficient between power and reward factor is 0.432 which
indicate 43 percentage positive relationships and is significant at 1 % level. The correlation
coefficient between power and information factor is 0.148 which indicate 14 percentage
positive relationships and is significant at 1 % level. The correlation coefficient between
power and information factor is 0.440 which indicate 44 percentage positive relationships
and is significant at 1 % level. The correlation coefficient between power and knowledge
factor is 0.183 which indicate 18 percentage positive relationships and is significant at 1 %
level. The correlation coefficient between power and self esteem factor is 0.276which
indicate 27 percentage positive relationships and is significant at 1 % level. The correlation
coefficient between reward and information factor is 0.437 which indicate 43 percentage
113
positive relationships and is significant at 1 % level. The correlation coefficient between
reward and knowledge factor is 0.514 which indicate 51 percentage positive relationships
and is significant at 1 % level. The correlation coefficient between reward and self esteem
is 0.187 which indicate 18 percentage positive relationships and is significant at 1 % level.
The correlation coefficient between reward and leadership is 0.196 which indicate 19
percentage positive relationships and is significant at 1 % level. The correlation coefficient
between information and knowledge is 0.466 which indicate 46 percentage positive
relationships and is significant at 1 % level. The correlation coefficient between
information and self esteem is 0.140 which indicate 14 percentage positive relationships
and is significant at 1 % level. The correlation coefficient between information and
leadership is 0.266 which indicate 26 percentage positive relationships and is significant at
1 % level. The correlation coefficient between knowledge and self esteem is 0.299 which
indicate 29 percentage positive relationships and is significant at 1 % level. The correlation
coefficient between knowledge and leadership is 0.531 which indicate 53 percentage
positive relationships and is significant at 1 % level. The correlation coefficient between
self esteem and leadership is 0.109 which indicate 10 percentage positive relationships and
is significant at 5 % level.
114
CORRELATION COEFFICIENT BETWEEN DIMENSIONS OFEMPLOYEE
EMPOWERMENT AND EMPLOYEE SATISFACTION
Table 4.28 Pearson Correlation Coefficient betweenDimensions
ofEmployee Empowerment and Employee Satisfaction.
Dimensions of Employee
Empowerment Employee Satisfaction
Power 0.467**
Rewards 0.450**
Information 0.378**
Knowledge 0.575**
Self Esteem 0.609**
Leadership 0.480**
Overall Employee Empowerment 0.795**
Note: 1. ** Denotes significant at 1% level
The correlation coefficient between power factor and employee satisfaction is
0.467 which indicates 46 percentage positive relationships and is significant at 1 % level.
The correlation coefficient between Reward factor and employee satisfaction is 0.450
which indicates 45 percentage positive relationships and is significant at 1 % level. The
correlation coefficient between Information factor and employee satisfaction is 0.378
which indicates 37 percentage positive relationships and is significant at 1 % level.
The correlation coefficient between Knowledge factor and employee satisfaction is
0.575 which indicates 57 percentage positive relationships and is significant at 1 %
level.The correlation coefficient between Self Esteem factor and employee satisfaction is
0.609 which indicates 60 percentage positive relationships and is significant at 1 %
level.The correlation coefficient between Leadership factor and employee satisfaction is
0.480 which indicates 48 percentage positive relationships and is significant at 1 %
level.The correlation coefficient between overall empowerment factor and employee
115
satisfaction is 0.795 which indicates 79 percentage positive relationships and is significant
at 1 % level.
4.5 REGRESSION ANALYSIS ON EMPLOYEE EMPOWERMENT AND
EMPLOYEE SATISFACTION
Regression is the determination of statistical relationship between two or more
variables. In simple regression two variables are used. One variable (independent) is the
cause of the behavior of another one (dependent). When there are more than two
independent variables the analysis concerning relationship is known as multiple
correlations and the equation describing such relationship is called as the multiple
regression equation. In statistics, regression analysis is a statistical process for estimating
the relationships among variables. It includes many techniques for modeling and analyzing
several variables, when the focus is on the relationship between a dependent variable and
one or more independent variables.
Regression analysis is concerned with the derivation of an appropriate
mathematical expression is derived for finding values of a dependent variable on the basis
of independent variable. It is thus designed to examine the relationship of a variable Y to a
set of other variables X1, X2, X3………….Xn. the most commonly used linear equation in
Y=b1 X1 + b2 X2 +……+ bnXn + b0
Here Y is the dependent variable, which is to be found. X1 , X2 ,… and Xn are the
known variables with which predictions are to be made and b1, b2 ,….bn are coefficient of
the variables.
In this study, the dependent variable is Employee Satisfaction, Independent variables are
power, reward, information, knowledge, self esteem, and leadership is discussed as
follows:
Dependent variable : Employee satisfaction (Y)
Independent variables : 1.Power (X1)
2.Reward (X2)
3.Information (X3)
4.Knowledge (X4)
5.Self Esteem (X5)
6.Leadership (X6)
Multiple R value : 0.814
R Square value : 0.663
116
F value : 165.714
P value : 0.000**
Table 4.29 Variables in MultipleRegression Analysis
Model
Un-standardized
Coefficients
Standardized
Coefficients t value P value
B
Std.
Error Beta
1. (X1) 1.373 0.214 0.195 6.428 <0.001**
2. (X2) 0.782 0.197 0.131 3.967 <0.001**
3. (X3) 1.008 0.269 0.115 3.746 <0.001**
4. (X4) 0.451 0.214 0.080 2.102 0.036*
5. (X5) 1.576 0.089 0.479 17.618 <0.001**
6. (X6) 2.010 0.226 0.275 8.905 <0.001**
7. (Constant) 94.724 6.525 - 14.516 <0.001**
Note: 1. ** Denotes significant at 1% level
2. * Denotes Significant at 5% level
The multiple correlation coefficient is 0.814 measures the degree of relationship
between the actual values and the predicted values of the Adjustment. Because the
predicted values are obtained as a linear combination of power (X1), reward (X2),
information (X3), knowledge (X4), self esteem (X5), leadership (X6) the coefficient value
of 0.814 indicates that the relationship between employee satisfaction and the six
independent variables is quite strong and positive.
The Coefficient of DeterminationR-square measures the goodness-of-fit of the
estimated Sample Regression Plane (SRP) in terms of the proportion of the variation in the
dependent variables explained by the fitted sample regression equation. Thus, the value of
R square is 0.6630 simply means that about 66.30% of the variation in adjustment is
explained by the estimated SRP that uses power, reward, information, knowledge, self
esteem, leadership as the independent variables and R square value is significant at 1 %
level.
117
The multiple regression equation is
Y =-94.724 + 1.373X1 + 0.782X2+ 1.008X3 + 0.451X4+ 1.576X5 + 2.010X6
Here the coefficient of X1 is 1.373 represents the partial effect of power on
employee satisfaction, holding reward, information, knowledge, self esteem, leadership as
constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 1.373 for every unit increase in power and this coefficient
value is significant at 1% level. The coefficient of X2 is 0.782 represents the partial effect
of reward on employee satisfaction, holding power, information, knowledge, self esteem,
leadership as constant. The estimated positive sign implies that such effect is positive that
employee satisfaction would increase by 0.782 for every unit increase in reward and this
coefficient value is significant at 1% level. The coefficient of X3 is 1.008 represents the
partial effect of information on employee satisfaction, holding power, reward, knowledge,
self esteem, leadership as constant. The estimated positive sign implies that such effect is
positive that employee satisfaction would increase by 1.008 for every unit increase in
information and this coefficient value is significant at 1% level. The coefficient of X4 is
0.451represents the partial effect of knowledge on employee satisfaction, holding power,
reward, information, self esteem, leadership as constant. The estimated positive sign
implies that such effect is positive that employee satisfaction would increase by 1.008 for
every unit increase in knowledge and this coefficient value is not significant at 5% level.
The coefficient of X5 is 1.576 represents the partial effect of self esteem on employee
satisfaction, holding power, information, knowledge, reward, leadership as constant. The
estimated positive sign implies that such effect is positive that employee satisfaction would
increase by 1.576 for every unit increase in self esteem and this coefficient value is
significant at 1% level. The coefficient of X5 is 2.010represents the partial effect of
leadership on employee satisfaction, holding power, information, knowledge, reward, self
esteem as constant. The estimated positive sign implies that such effect is positive that
employee satisfaction would increase by 2.010for every unit increase in leadership and this
coefficient value is significant at 1% level.
Based on standardized coefficient value, X5 (employee self esteem) is the most
important factor to improve employee satisfaction followed by X6 (employee leadership),
X1 (employee power), X2 (employee reward), X3 (information), X4 (knowledge).
118
4.6 STRUCTURAL EQUATION MODEL ON EMPLOYEE EMPOWERMENT
Basic Introduction on SEM
Structural equation modeling, or SEM, is a very general, chiefly linear, chiefly
cross-sectional statistical modeling technique. Factor analysis, path analysis and regression
all represent special cases of SEM.
SEM is a largely confirmatory, rather than exploratory, technique. That is, a
researcher are more likely to use SEM to determine whether a certain model is valid.,
rather than using SEM to "find" a suitable model--although SEM analyses often involve a
certain exploratory element.
A structural equation model implies a structure of the covariance matrix of the
measures (hence an alternative name for this field, "analysis of covariance structures").
Once the model's parameters have been estimated, the resulting model-implied covariance
matrix can then be compared to an empirical or data-based covariance matrix. If the two
matrices are consistent with one another, then the structural equation model can be
considered a plausible explanation for relations between the measures.
Compared to regression and factor analysis, SEM is a relatively young field, having
its roots in papers that appeared only in the late 1960s. As such, the methodology is still
developing, and even fundamental concepts are subject to challenge and revision. This
rapid change is a source of excitement for some researchers and a source of frustration for
others. The strengths of SEM is the ability to construct latent variables: variables that are
not measured directly, but are estimated in the model from several measured variables,
each of which is predicted to 'tap into' the latent variables. This allows the modeler to
explicitly capture the unreliability of measurement in the model, which in theory allows
the structural relations between latent variables to be accurately estimated. Factor
analysis, path analysis and regression all represent special cases of SEM. When SEM is
used as a confirmatory technique, the model must be specified correctly based on the type
of analysis that the researcher is attempting to confirm. When building the correct model,
the researcher uses two different kinds of variables,
namely exogenous and endogenous variables. The distinction between these two types of
variables is whether the variable regresses on another variable or not. As in regression,
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the dependent variable (DV) regresses on the independent variable (IV), meaning that the
DV is being predicted by the IV. In SEM terminology, other variables regress on
exogenous variables, but exogenous variables never regress on other variables. In a
directed graph of the model, an exogenous variable is recognizable as any variable from
which arrows only emanate, where the emanating arrows denote which variables that
exogenous variable predicts. Any variable that regresses on another variable is defined to
be an endogenous variable, even if other variables regress on it. In a directed graph, an
endogenous variable is recognizable as any variable receiving an arrow.
It is important to note that SEM is more general than regression. In particular, a
variable can act as both independent and dependent variable.
Two main components of models are distinguished in SEM: the structural
model showing potential causal dependencies between endogenous and exogenous
variables, and the measurement model showing the relations between latent variables and
their indicators. Exploratory and Confirmatory factor analysis models, for example,
contain only the measurement part, while path diagrams can be viewed as SEMs that
contain only the structural part.
In specifying pathways in a model, the modeler can posit two types of
relationships: (1) free pathways, in which hypothesized causal (in fact counterfactual)
relationships between variables are tested, and therefore are left 'free' to vary, and (2)
relationships between variables that already have an estimated relationship, usually based
on previous studies, which are 'fixed' in the model.
A modeler will often specify a set of theoretically plausible models in order to
assess whether the model proposed is the best of the set of possible models. Not only must
the modeler account for the theoretical reasons for building the model as it is, but the
modeler must also take into account the number of data points and the number of
parameters that the model must estimate to identify the model. An identified model is a
model where a specific parameter value uniquely identifies the model, and no other
equivalent formulation can be given by a different parameter value. A data point is a
variable with observed scores, like a variable containing the scores on a question or the
number of times respondents buy a car. The parameter is the value of interest, which might
be a regression coefficient between the exogenous and the endogenous variable or the
factor loading (regression coefficient between an indicator and its factor). If there are
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fewer data points than the number of estimated parameters, the resulting model is
"unidentified", since there are too few reference points to account for all the variance in the
model. The solution is to constrain one of the paths to zero, which means that it is no
longer part of the model.
The variables used in the structural equation model are
I. Observed, endogenous variables
Employee empowerment
Employee satisfaction
II. Unobserved, exogenous variables
Employee Power
Employee Rewards
Employee Information
Employee Knowledge
Employee Self Esteem
Employee Leadership
III. Unobserved, exogenous variables
e1: Error term for Power
e2: Error term for Rewards
e3: Error term for Information
e4: Error term for Knowledge
e5: Error term for Self Esteem
e6: Error term for Leadership
Hence the numbers of variables in the SEM are
Number of variables in this model 5
Number of observed variables 7
Number of unobserved variables 8
Number of exogenous variables 8
Number of endogenous 7
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Fig.4.11 Structural Equation Model on Employee Empowerment
and Employee Job Satisfaction
Power
Rewards
Information
Knowledge
Self Esteem
Leadership
Employee
Satisfaction
1.00
Employee
Empowerment
1.56
2.15
1.26
3.20
2.22
1.60
5.20
6.47
e11
7.68
e21
4.11
e3
3.63
e41
35.64
e51
5.67
e61
126.36
e7
1
1
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Table 4.30 Variables in the Structural Equation Model Analysis
Variables
Un-
standardized
co-efficient
S.E Standar
dized
co-
efficient
t
value.
P value
Employee
Power
Employee
Empowerment
1.559 0.134 0.523 11.598 <0.001**
Employee
Rewards
Employee
Empowerment
2.146 0.154 0.612 13.948 <0.001**
Employee
Information
Employee
Empowerment
1.265 0.108 0.529 11.761 <0.001**
Employee
Knowledge
Employee
Empowerment
3.201 0.152 0.859 21.096 <0.001**
Employee
Self Esteem
Employee
Empowerment
2.218 0.299 0.348 7.423 <0.001**
Employee
Leadership
Employee
Empowerment
1.601 0.128 0.558 12.505 <0.001**
Employee
Satisfaction
Employee
Empowerment
5.202 0.573 0.420 9.080 <0.001**
Note: ** denotes significant at 1% level
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Table 4.31 Model fit summary
Here the coefficient of power is 1.559 represents the partial effect of power
towards Employee empowerment on employee satisfaction and holding the other variables
as constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 1.559 for every unit increase in power and this coefficient
value is significant at 1% level. The coefficient of reward is 2.146 represents the partial
effect of reward towards employee empowerment on employee satisfaction and holding the
other variables as constant. The estimated positive sign implies that such effect is positive
that employee satisfaction would increase by 2.146 for every unit increase in reward and
this coefficient value is significant at 1% level. The coefficient of information is 1.265
represents the partial effect of information towards employee empowerment on employee
satisfaction and holding the other variables as constant. The estimated positive sign implies
that such effect is positive that employee satisfaction would increase by 1.265 for every
unit increase in information and this coefficient value is significant at 1% level. The
coefficient of knowledge is 3.201 represents the partial effect of knowledge towards
employee empowerment on employee satisfaction and holding the other variables as
constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 3.201 for every unit increase in knowledge and this
Variable Value Suggested value
Chi-square value 20.314
P value 0.121 >0.05 (Hair et al., 1998)
GFI 0.922 >0.90 ( Hair et al. 2006)
AGFI 0.915 > 0.90 (Daire et al., 2008)
CFI 0.955 >0.90 (Hu and Bentler, 1999)
RMR 0.074
RMSEA 0.048
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coefficient value is significant at 1% level. The coefficient of self esteem is 2.218
represents the partial effect of self esteem towards employee empowerment on employee
satisfaction and holding the other variables as constant. The estimated positive sign implies
that such effect is positive that employee satisfaction would increase by 2.218 for every
unit increase in self esteem and this coefficient value is significant at 1% level. The
coefficient of leadership is 1.601 represents the partial effect of leadership towards
employee empowerment on employee satisfaction and holding the other variables as
constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 1.601 for every unit increase in leadership and this
coefficient value is significant at 1% level. The coefficient of employee empowerment is
5.202 represents the effect of employee empowerment and holding the other variables as
constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 5.202 for every unit increase in employee empowerment
and this coefficient value is significant at 1% level.
From the Table 4.31, it is found that the calculated P value is 0.121, which is
greater than 0.05 which indicates perfect fit. Here GFI (Goodness of Fit Index) and AGFI
(Adjusted Goodness of Fit Index)values are greater than 0.9 which represent as a good fit.
The calculated CFI (ComparativeFit Index) is 0.955 which means that it is a perfect fit and
also it is found that RMSEA (Root meansquare error of approximation) value is 0.048
which is lesser than 0.10 which indicates that it is perfect fit.
4.7 CONCLUSION
Thus various hypothesis that were formulated, pertaining to the research were used
by means of various statistical tools on the collected data. The interpretation of the
statistical table is done below each table. Also the feasible reason for such findings in the
research is also enclosed therein.
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CHAPTER 5
SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTION
5.1 Introduction
The human resource is, of all resources entrusted to man, the most productive, the
most versatile and the most resourceful.Human resources constitutes the most important
and indispensible factor in any economy. Their uniqueness renders it practically
impossible to substitute them with any other factor, however important it might be, as
nothing can match the human mind in working out unprecedented marvels at times. Hence,
human resource world have come to claim “a paramount importance in organizing of
human resource.
The human factor comprises skills, aptitude, knowledge and innovative spirit
enshrined in human minds involved in a particular organization. Further, the difference in
the level of economic development of the countries is largely a reflection of differences in
the quality of their human resources. The key element in this proposition is that values,
attitudes general orientation and quality of the people of a country determine its economic
development.
HRD is a continuous process to ensure the development of employee competencies,
dynamics, motivation and effectiveness in a systematic and planned manner. The idea of
HRD is gaining widespread currency in India as well as several other developing countries
of the world. Some pursue it like Zealots, while curtain others see it as the current fad in
management circles, which must be pursued to keep up with the Joneses. Yet, there are
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curtain others who see it with outright cynicism. But since idea is still evolving and taking
shape, it is not fair to delimit its scope and coverage.
The HRD movement in banks is gradually building ahead. A majority of the banks
have setup separate HRD departments (HRDDs) within a decade of functioning; HRDDs
in some banks have gained certain creditable achievements. The blanket criticism of the
existing HRD function as “Ornamental Appendages” cannot be justified. However, it is
true that HRDDs functioning in a majority of the banks is far from satisfactory. There are
also cases of banks, along with training; certain other activities like manpower planning
and performance appraisal have been introduced.
Yet, a few other banks have made rapid strides as far as the introduction of new
HRD activities and sub-systems, such as systematic induction, quality circles and staff
meetings are concerned. Besides introducing these systems, some banks have also taken
significant efforts in perfecting certain systems like training and performance appraisal.
Nevertheless, there is a wide spread feeling in banking industry that there are no sufficient
pay off from the HRD functions and system at the operational level are regulated to level
of rituals.
The bank employees in Chennai city face enormous number of problems. At the
same time, they also posses fascinating avenues for the prospective development.
Employee satisfaction is a primary concern of the employees to realize their personal and
career growth. The employees prefer economic independence and proper organization
status to devote their abilities to increase individual efficiency as well as organizational
efficiency. The productivity and services of employees is proportionate to the
organizational development, employee development and their total efficiency in
production and services.
In recent years, the banking industry has undergone a great many changes. Banks
are increasing in number, and with each new branch being opened more number of persons
are recruited. The attitude of these persons which is one of human relation leads us to study
their level of empowerment towards level of satisfaction of the employees in banks.
The review of pertinent literature showed that employee empowerment and
employee satisfaction has been studied extensively in relation to different variables. But
much of it has done on the industrial set up; hence there is lack clear cut information on the
socio economic organization such as a ‘bank’. Further no comparisons have been reported
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of employee’s empowerment and employee satisfaction in public and private banks in
Chennai city. The present research is carried out with the following objectives.
To find the significant difference between demographic variables with regard to
employee empowerment.
To find the association between employee demographic features and employee
satisfaction.
To find the most significant factor toward employee empowerment of employees.
To find the factor influence employee empowerment towards employee
satisfaction.
To find the relationship between factors towards employee empowerment.
To find the relationship between employee empowerment and employee
satisfaction.
The descriptive research design has been applied for the present study. The Chennai
city has been selected purposively for the present study. The employees of select banks
have been selected for the present study by adopting Multi Stage sampling technique. The
data have been collected from 513 employees of select banks through pre-tested and
structured questionnaire. In order to accomplish the objectives, t-test, ANOVA test, Chi-
Square test, correlation analysis, multiple regressions, Confirmatory Factor Analysis
(CFA) and Structural Equation Model (SEM) have been employed.
5.2 SUMMARY OF FINDINGS
5.2.1 PROFILE OF THE EMPLOYEES
The results show that 53.2% of the employees are males and the remaining 46.8 %
are females. It is clear that the largest percentage of employees are in the age group of 36-
45(41.3%), 20.7% of the employees are in the age group below 35, 21.1% of the
employees are in the age group of 46-55 and 17.0% of the employees are in the age group
of above 55.
Majority of the employees are under graduates (38.6%), almost 26.5% of them are
post graduates and 34.9% of the employees are professional graduates. The results indicate
that 24 per cent of employees fall in the group of senior level and 42.9 per cent of
employees fall in the group of middle level and remaining 33.1 per cent of employees fall
in the group of junior level.
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Majority of the employees have experience of below 10 years (43.9%) and 170 of
the employees have experience of 11-20 years (33.1%). Remaining 169 employees have
work experience of above 20 years (22.9%). It is observed that 32.7% of employees have
attended two trainings, 32.4% of employees have attended 3-5 trainings and 34.9% of
employees have attended above six trainings.
Out of 513 employees, 253 of employees are working in public sector banks and
remaining of 260 employees is working in private sector banks. It is apparent that 27.3% of
employees belong to monthly income of below Rs. 20000, 22.6 % of employees belong to
monthly income of Rs. 30000-40000, 19.1 % of employees belong to monthly income of
Rs. 40000-50000, 17.9 % of employees belong to monthly income of Rs. 20000-30000 and
13.1 % of employees belong to monthly income of above Rs. 50000.
5.2.2 LEVEL OF EMPOWERMENT
The results indicate that 48.5 % of employees have moderate level of
empowerment, 26.3 % of employees have high level of empowerment and 25.1 % of
employees have low level of empowerment.
5.2.3 LEVEL OF EMPLOYEE SATISFACTION
The results show that 46.8 % of employees have moderate level of satisfaction,
27.1% of employees have high level of satisfaction and 26.1 % of employees have low
level of satisfaction.
5.2.4 DIFFERENCE BETWEEN GENDER AND DIMENSIONS OF EMPLOYEE
EMPOWERMENT
The t-value for gender and power is 2.391 which are significant at five per cent
level indicating that there is a significant difference between gender and power.
The t-value for gender and knowledge is 2.409 which are significant at five per cent
level indicating that there is a significant difference between gender and knowledge.
The t-value for gender and self esteem is 3.682 which are significant at one per cent
level indicating that there is a significant difference between gender and self esteem.
The t-value for gender and leadership is 2.624 which is significant at one per cent
level indicating that there is a significant difference between gender and leadership.
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The t-value for gender and overall employee empowerment is 4.129 which is
significant at one per cent level indicating that there is a significant difference between
gender and overall employee empowerment.
5.2.5 DIFFERENCE BETWEEN TYPES OF BANKS AND DIMENSIONS OF
EMPLOYEE EMPOWERMENT
The t-value for types of banks and power is 3.216 which is significant at one per
cent level showing that there is a significant difference between types of banks and power.
The t-value for types of banks and rewards is 2.366 which is significant at five per
cent level showing that there is a significant difference between types of banks and
rewards.
The t-value for types of banks and knowledge is 4.032 which is significant at one
per cent level showing that there is a significant difference between types of banks and
knowledge.
The t-value for types of banks and self esteem is 2.116 which is significant at five
per cent level showing that there is a significant difference between types of banks and self
esteem.
The t-value for types of banks and leadership is 3.399 which is significant at one
per cent level showing that there is a significant difference between types of banks and
leadership.
The t-value for types of banks and overall employee empowerment is 4.293 which
is significant at one per cent level showing that there is a significant difference between
types of banks and overall employee empowerment.
5.2.6 DIFFERENCE BETWEEN AGE GROUP AND DIMENSIONS OF
EMPLOYEE EMPOWERMENT
The F-value for age group and power is 6.3770 which is significant at one per cent
level indicating that there is a significant difference between age group and power.
The F-value for age group and rewards is 6.8990 which is significant at one per
cent level indicating that there is a significant difference between age group and rewards.
The F-value for age group and information is 7.7130 which is significant at one per
cent level indicating that there is a significant difference between age group and
information.
130
The F-value for age group and knowledge is 12.993 which is significant at one per
cent level indicating that there is a significant difference between age group and
knowledge.
The F-value for age group and self esteem is 6.7820 which is significant at one per
cent level indicating that there is a significant difference between age group and self
esteem.
The F-value for age group and leadership is 6.0460 which is significant at one per
cent level indicating that there is a significant difference between age group and
leadership.
The F-value for age group and overall employee empowerment is 18.423 which is
significant at one per cent level indicating that there is a significant difference between age
group and overall employee empowerment.
5.2.7 DIFFERENCE BETWEEN EDUCATIONAL QUALIFICATION AND
DIMENSIONS OF EMPLOYEE EMPOWERMENT
The F-value for educational qualification and power is 7.897 which is significant at
one per cent level showing that there is a significant difference between educational
qualification and power.
The F-value for educational qualification and rewards is 8.438 which is significant
at one per cent level showing that there is a significant difference between educational
qualification and rewards.
The F-value for educational qualification and information is 3.189 which is
significant at one per cent level showing that there is a significant difference between
educational qualification and information.
The F-value for educational qualification and knowledge is 13.757 which is
significant at one per cent level showing that there is a significant difference between
educational qualification and knowledge.
The F-value for educational qualification and self esteem is 4.627 which is
significant at one per cent level showing that there is a significant difference between
educational qualification and self esteem.
The F-value for educational qualification and leadership is 6.132 which is
significant at one per cent level showing that there is a significant difference between
educational qualification and leadership.
131
The F-value for educational qualification and overall employee empowerment is
16.637 which is significant at one per cent level showing that there is a significant
difference between educational qualification and overall employee empowerment.
5.2.8 DIFFERENCE BETWEEN DESIGNATION AND DIMENSIONS OF
EMPLOYEE EMPOWERMENT
The F-value for designation and power is 8.632 which is significant at one per cent
level showing that there is a significant difference between designation and power.
The F-value for designation and rewards is 7.991 which is significant at one per
cent level showing that there is a significant difference between designation and rewards.
The F-value for designation and information is 12.528 which is significant at one
per cent level showing that there is a significant difference between designation and
information.
The F-value for designation and knowledge is 15.520 which is significant at one
per cent level showing that there is a significant difference between designation and
knowledge.
The F-value for designation and self esteem is 4.257 which is significant at one per
cent level showing that there is a significant difference between designation and self
esteem.
The F-value for designation and leadership is 8.360 which is significant at one per
cent level showing that there is a significant difference between designation and
leadership.
The F-value for designation and overall employee empowerment is 12.557 which is
significant at one per cent level showing that there is a significant difference between
designation and overall employee empowerment.
5.2.9 DIFFERENCE BETWEEN EXPERIENCE AND DIMENSIONS OF
EMPLOYEE EMPOWERMENT
The F-value for experience and rewards is 5.798 which is significant at one per cent
level revealing that there is a significant difference between experience and rewards.
The F-value for experience and knowledge is 8.648 which is significant at one per
cent level revealing that there is a significant difference between experience and
knowledge.
132
The F-value for experience and self esteem is 12.841 which is significant at one per
cent level revealing that there is a significant difference between experience and self
esteem.
The F-value for experience and leadership is 3.997 which is significant at five per
cent level revealing that there is a significant difference between experience and
leadership.
The F-value for experience and overall employee empowerment is 15.896 which is
significant at one per cent level revealing that there is a significant difference between
experience and overall employee empowerment.
5.2.10 DIFFERENCE BETWEEN NUMBERS OF TRAINING ATTENDED AND
DIMENSIONS OF EMPLOYEE EMPOWERMENT
The F-value for number of trainings attended and rewards is 3.393 which is
significant at five per cent level revealing that there is a significant difference between
number of trainings attended and rewards.
The F-value for number of trainings attended and knowledge is 6.004 which is
significant at one per cent level revealing that there is a significant difference between
number of trainings attended and knowledge.
The F-value for number of trainings attended and self esteem is 9.843 which is
significant at one per cent level revealing that there is a significant difference between
number of trainings attended and self esteem.
The F-value for number of trainings attended and leadership is 3.500 which is
significant at five per cent level revealing that there is a significant difference between
number of trainings attended and leadership.
The F-value for number of trainings attended and overall employee empowerment
is 10.461 which is significant at five per cent level revealing that there is a significant
difference between number of trainings attended and overall employee empowerment.
5.2.11 DIFFERENCE BETWEEN MONTHLY INCOME AND DIMENSIONS OF
EMPLOYEE EMPOWERMENT
The F-value for monthly income and power is 3.247 which is significant at five per
cent level showing that there is a significant difference between monthly income and
power.
133
The F-value for monthly income and rewards is 3.101 which is significant at five
per cent level showing that there is a significant difference between monthly income and
rewards.
The F-value for monthly income and information is 4.018 which is significant at
five per cent level showing that there is a significant difference between monthly income
and information.
The F-value for monthly income and knowledge is 10.129 which is significant at
one per cent level showing that there is a significant difference between monthly income
and knowledge.
The F-value for monthly income and self esteem is 8.413 which is significant at
one per cent level showing that there is a significant difference between monthly income
and self esteem.
The F-value for monthly income and overall employee empowerment is 11.542
which is significant at one per cent level showing that there is a significant difference
between monthly income and overall employee empowerment.
5.2.12 ASSOCIATION BETWEEN GENDER AND LEVEL OF SATISFACTION
The Chi Square value for gender and level of satisfaction is 2.610 which is not
statistically significant indicating that there is no significant association between gender
and level of satisfaction.
The Chi Square value for age group and level of satisfaction is 48.117 which is
significant at one per cent level indicating that there is a significant association between
age group and level of satisfaction.
The Chi Square value for educational qualification and level of satisfaction is
10.879 which is significant at one per cent level indicating that there is a significant
association between educational qualification and level of satisfaction.
The Chi Square value for types of banks and level of satisfaction is 3.098 which is
not statistically significant indicating that there is no significant association between types
of banks and level of satisfaction.
The Chi Square value for monthly income and level of satisfaction is 20.025 which
is significant at one per cent level indicating that there is a significant association between
monthly income and level of satisfaction.
134
The Chi Square value for number of trainings attended and level of satisfaction is
12.226 which is significant at five per cent level indicating that there is a significant
association between number of trainings attended and level of satisfaction.
The Chi Square value for level of employee empowerment and level of employee
satisfaction is 200.967 which is significant at one per cent level indicating that there is a
significant association between level of employee empowerment and level of employee
satisfaction.
5.2.13 RELATIONSHIP BETWEEN POWER, REWARDS, INFORMATION,
KNOWLEDGE, SELF ESTEEM AND LEADERSHIP
The correlation coefficient between power and reward factor is 0.432 which
indicates 43 percentage positive relationships and is significant at 1 % level. The
correlation coefficient between power and information factor is 0.148 which indicates 14
percentage positive relationships and is significant at 1 % level. The correlation coefficient
between power and information factor is 0.440 which indicated 44 percentage positive
relationships and is significant at 1 % level.
The correlation coefficient between power and knowledge factor is 0.183 which
indicates 18 percentage positive relationships and is significant at 1 % level. The
correlation coefficient between power and self esteem factor is 0.276which indicates 27
percentage positive relationships and is significant at 1 % level.
The correlation coefficient between reward and information factor is 0.437 which
indicates 43 percentage positive relationships and is significant at 1 % level. The
correlation coefficient between reward and knowledge factor is 0.514 which indicates 51
percentage positive relationships and is significant at 1 % level.
The correlation coefficient between reward and self esteem is 0.187 which
indicates 18 percentage positive relationships and is significant at 1 % level. The
correlation coefficient between reward and leadership is 0.196 which indicates 19
percentage positive relationships and is significant at 1 % level. The correlation coefficient
between information and knowledge is 0.466 which indicates 46 percentage positive
relationships and is significant at 1 % level.
The correlation coefficient between information and self esteem is 0.140 which
indicates 14 percentage positive relationships and is significant at 1 % level. The
correlation coefficient between information and leadership is 0.266 which indicates 26
135
percentage positive relationships and is significant at 1 % level. The correlation coefficient
between knowledge and self esteem is 0.299 which indicates 29 percentage positive
relationships and is significant at 1 % level.
The correlation coefficient between knowledge and leadership is 0.531 which
indicates 53 percentage positive relationships and is significant at 1 % level. The
correlation coefficient between self esteem and leadership is 0.109 which indicates 10
percentage positive relationships and is significant at 5 % level.
5.2.14 RELATIONSHIP BETWEEN DIMENSIONS OF EMPLOYEE
EMPOWERMENT AND EMPLOYEE SATISFACTION
`The correlation coefficient between power factor and employee satisfaction is
0.467 which indicates 46 percentage positive relationships and is significant at 1 % level.
The correlation coefficient between Reward factor and employee satisfaction is 0.450
which indicates 45 percentage positive relationships and is significant at 1 % level. The
correlation coefficient between Information factor and employee satisfaction is 0.378
which indicates 37 percentage positive relationships and is significant at 1 % level.
The correlation coefficient between Knowledge factor and employee satisfaction is
0.575 which indicates 57 percentage positive relationships and is significant at 1 %
level.The correlation coefficient between Self Esteem factor and employee satisfaction is
0.609 which indicates 60 percentage positive relationships and is significant at 1 % level.
The correlation coefficient between Leadership factor and employee satisfaction is
0.480 which indicates 48 percentage positive relationships and is significant at 1 %
level.The correlation coefficient between overall empowerment factor and employee
satisfaction is 0.795 which indicates 79 percentage positive relationships and is significant
at 1 % level.
5.2.15 RELATIONSHIP BETWEEN EMPLOYEE EMPOWERMENT AND
EMPLOYEE SATISFACTION
The multiple correlation coefficient is 0.814 measures the degree of relationship
between the actual values and the predicted values of the Adjustment. Because the
predicted values are obtained as a linear combination of power (X1), reward (X2),
information (X3), knowledge (X4), self esteem (X5), leadership (X6) the coefficient value
136
of 0.814 indicates that the relationship between employee satisfaction and the six
independent variables is quite strong and positive.
TheCoefficient of DeterminationR-squaremeasures the goodness-of-fit of the
estimated Sample Regression Plane (SRP) in terms of the proportion of the variation in the
dependent variables explained by the fitted sample regression equation. Thus, the value of
R square is0.6630 simply means that about 66.30% of the variation in adjustment is
explained by the estimated SRP that uses power, reward, information, knowledge, self
esteem, leadership as the independent variables and R square value is significant at 1 %
level.
The coefficient of X1 is 1.373 represents the partial effect of power on employee
satisfaction, holding reward, information, knowledge, self esteem, leadership as constant.
The estimated positive sign implies that such effect is positive that employee satisfaction
would increase by 1.373 for every unit increase in power and this coefficient value is
significant at 1% level. The coefficient of X2 is 0.782 represents the partial effect of reward
on employee satisfaction, holding power, information, knowledge, self esteem, leadership
as constant.
The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 0.782 for every unit increase in reward and this coefficient
value is significant at 1% level. The coefficient of X3 is 1.008 represents the partial effect
of information on employee satisfaction, holding power, reward, knowledge, self esteem,
leadership as constant. The estimated positive sign implies that such effect is positive that
employee satisfaction would increase by 1.008 for every unit increase in information and
this coefficient value is significant at 1% level.
The coefficient of X4 is 0.451represents the partial effect of knowledge on
employee satisfaction, holding power, reward, information, self esteem, leadership as
constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 1.008 for every unit increase in knowledge and this
coefficient value is not significant at 5% level. The coefficient of X5 is 1.576 represents the
partial effect of self esteem on employee satisfaction, holding power, information,
knowledge, reward, leadership as constant.
The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 1.576 for every unit increase in self esteem and this
coefficient value is significant at 1% level. The coefficient of X5 is 2.010represents the
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partial effect of leadership on employee satisfaction, holding power, information,
knowledge, reward, self esteem as constant. The estimated positive sign implies that such
effect is positive that employee satisfaction would increase by 2.010for every unit increase
in leadership and this coefficient value is significant at 1% level.
Based on standardized coefficient value, X5 (employee self esteem) is the most
important factor to improve employee satisfaction followed by X6 (employee leadership),
X1 (employee power), X2 (employee reward), X3 (information), X4 (knowledge).
5.2.16 STRUCTURAL EQUATION MODEL ON EMPLOYEE EMPOWERMENT
The coefficient of power is 1.559 represents the partial effect of power towards
Employee empowerment on employee satisfaction and holding the other variables as
constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 1.559 for every unit increase in power and this coefficient
value is significant at 1% level. The coefficient of reward is 2.146 represents the partial
effect of reward towards employee empowerment on employee satisfaction and holding the
other variables as constant. The estimated positive sign implies that such effect is positive
that employee satisfaction would increase by 2.146 for every unit increase in reward and
this coefficient value is significant at 1% level.
The coefficient of information is 1.265 represents the partial effect of information
towards employee empowerment on employee satisfaction and holding the other variables
as constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 1.265 for every unit increase in information and this
coefficient value is significant at 1% level. The coefficient of knowledge is 3.201
represents the partial effect of knowledge towards employee empowerment on employee
satisfaction and holding the other variables as constant. The estimated positive sign implies
that such effect is positive that employee satisfaction would increase by 3.201 for every
unit increase in knowledge and this coefficient value is significant at 1% level.
The coefficient of self esteem is 2.218 represents the partial effect of self esteem
towards employee empowerment on employee satisfaction and holding the other variables
as constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 2.218 for every unit increase in self esteem and this
coefficient value is significant at 1% level. The coefficient of leadership is 1.601
138
represents the partial effect of leadership towards employee empowerment on employee
satisfaction and holding the other variables as constant.
The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 1.601 for every unit increase in leadership and this
coefficient value is significant at 1% level. The coefficient of employee empowerment is
5.202 represents the effect of employee empowerment and holding the other variables as
constant. The estimated positive sign implies that such effect is positive that employee
satisfaction would increase by 5.202 for every unit increase in employee empowerment
and this coefficient value is significant at 1% level.
5.3SUGGESTIONS
On the basis of findings of the present study, the following suggestions are made to
improve the empowerment and job satisfaction of employees in banking sector.
The banks have to provide clear goals, clear lines of authority and clear task
responsibilities. While the autonomy is present, employees are also aware of their
decision- making boundaries. Clear lines reduce the disabling uncertainty and ambiguity
that so often accompany empowerment efforts.
The information, which is assumed to be critical to empowerment efforts, is related
to mission and the employee’s performance. Information like vision, mission, goals,
financials, performance objectives, quality and productivity needs to be communicated to
employees at all levels. Such information becomes both a need and result of a participative
climate that is so essential to an empowerment process.
In a participative climate high value is placed on trust between different levels of
employees. Those who can achieve results are valued; specialists and experts are highly
trusted. Friendly relations are regarded as valuable. These two attributes require a clear
vision and challenge as well as openness and team work.
In addition to having the need to share information and a participative climate,
training and rewards are also important. Employees need relevant training and knowledge
to be able to take decisions on their own. They must learn how to work collaboratively.
They must also be taught the tools of problem solving and understanding bank
performance. Banks must make structured and continuous efforts to identify training gaps
and upgrade the skills of the employees.
139
Recognition of a job well done is essential to any empowerment programme.
Empowered employees take on increased responsibility and accountability and they need
to be compensated for the same.
A reward system should be perceived as fair and just by all the employees.
Standards against which performance has to e measured should be clearly defined. An
open discussion regarding performance needs to be incorporated in any reward policy.
The banks should facilitate an empowerment climate by changing structures,
policies,procedures and practices, with hopes of creating a non-threatening environment
that signals totheir employees that behaving in an empowered manner is encouraged and
desired.
The systematic leader communication training programmes should be developed to
build an effective hierarchical communication system as it represents a major building
block of internal communication. Since managers interact with their subordinates on a
daily basis, and their demonstrated leadership style influences employees ‘overall
perceptions toward the banks, managers of different levels should be trained to
communicate accurately, clearly, and effectively with their subordinates. Public relations
professionals can help by providing training and coaching to develop effective leader
communication skills, crafting messages, evaluating leadership communication
effectiveness as well as rewarding leaders who do well in communication.
Banks should remove the barriers toself esteem and taking chance, letting
employeesselect choices for meeting his or her own needs.This leads to empowerment and
job satisfaction as wellas flourish and creativity and innovation in the banks.
Banks shouldprovide requirementsfor employees feeling meaningful to prevent
wastingof capacities. Respect and helping people in theirpersonal problems are required to
give a meaning totheir activities. This leads to their encouragementand empowerment,
being more innovate andefficient.Bank manager must support creative, innovative and
responsible work forces, leading to the employee'sempowerment.
The banks should adopt transformational leadership style which is strategic,
inspiring, interactive, empowering, democratic, and relational-orientednot only affects
employees‘ motivation, productivity, and performance, but also shapes employees‘
favorable perception of the banks.
The banks should increase the meaning, self determination, competence and impact
dimensions of empowerment, if they want their employees to attain more satisfaction in
140
their jobs.Thus, to achieve higher performance and job satisfaction, it is suggested that
employee empowerment should be encouraged in banking sector of India.
5.4 IMPLICATIONS OF THE STUDY
This study contributes to theory and managerial practice with anincreased
understanding on importance of empowerment inreducing the job dissatisfaction of
employees in banking sector. Thefindings of the study will be beneficial for the banks in
different ways.This research throws light on the relevance of empowermentamong
different level employees in banking sector. This research contributes to the literature in
terms of both theoretical and empirical evidences in the area of relationship between
employee empowerment and job satisfaction.
5.5SCOPE FOR FURTHER RESEARCH
The finding of the present study suggests several avenues for future research.
Future research could include diverse service sector with increase number of sample and
examine the relationship in greater depth. The present study consider six dimensions;
Power, information, knowledge, Reward, Self esteem and Leadership of which first four
were identified by Bowen and Lawler(1992 and 1995) and remaining two were identified
by Spreitzer (1995) and Kark et al. (2003). Further studies should incorporate multiple
measures of the constructs examined. Finally the present research work was specified by
service contexts. Generalizing the results to the manufacturing industries may not be
possible. Perhaps, a comparative study of empowerment between manufacturing industries
and service industries in Chennai may be a concern for future researchers in this field.
A study on employee empowerment and customer satisfaction in banking sector
may be studied in future research work.
A further study on the impact of employee empowerment on job satisfaction among
employees in new generation banks may be carried out.
The effect of psychological empowerment on job satisfaction and job related stress
among the bank employees may be alone examined in future research work.
141
The future study may be carried out to examine employee empowerment and
organizational effectiveness in foreign banks.
The impact of employee empowerment on job performance in scheduled banks
may be considered for future research work.
5.6CONCLUSION
Nearly half of the employees have moderate level of empowerment and nearly half
of the employees have moderate level of satisfaction. There is a significant difference
between gender anddimensions of employee empowerment except gender and rewards and
gender and information and there is a significant difference between types of bank
anddimensions of employee empowerment except types of bank and information.
There is a significant difference between age group and dimensions of employee
empowerment and there is a significant difference between educational qualification and
dimensions of employee empowerment. There is a significant difference between
designation and dimensions of employee empowerment and there is a significant
difference between experience and dimensions of employee empowerment except
experience and power, experience and information.
There is a significant difference between number of trainings attended and
dimensions of employee empowerment except number of trainings attended and power and
number of trainings attended and information and there is a significant difference between
monthly income and dimensions of employee empowerment except monthly income and
leadership.
There is a significant association between age group and level of employee
satisfaction, educational qualification and level of employee satisfaction, monthly income
and level of employee satisfaction and number of trainings attended and level of employee
satisfaction.
The dimensions of employee empowerment are positively and significantly
correlated with each other and the dimensions of employee empowerment are also
positively and significantly associated with employee satisfaction. Meanwhile, the
dimensions of employee empowerment are positively and significantly influence the
employee satisfaction. In addition, there is a structural relationship between dimensions of
employee empowerment and employee satisfaction.
142
The study relates the relationship between employees’ satisfaction and various
dimensions of Empowerment practices. In this study, we considered six major factors
which represented most of the empowerment practices followed by banking sector. An
employee develops a sense of belonging and feels responsible for organizational
effectiveness. Thus empowerment benefits individual and organization.The study
contributes to employee empowerment literature by developing and validating a model to
improve the satisfaction of employees in the Banking industry. The findings provide useful
information to the policy makers, the human resource department of service sectors of
India and to all those who are concerned with the life of young professionals. In addition to
this, the findings of the present investigation can play a central role as planned change
efforts are designed and carried out in the Banking industry in the country in the recent
years. The employee empowerment and satisfaction questionnaire can be used to obtain
continuous feedback from employees regarding the conditions of the organization. Given
such information, the bank can decide on new organizational priorities and drop or
improve ineffective programs. The findings of the study give quantitative support for the
need of flexible work hours, work life balance, rests in between, providing effective
materials, special consideration for female work force, so that undesirable work
environments may not result. The results of the analysis of the data indicate that several
relationships exist between leadership styles of the managers/team leaders, employee
reward, employee power to their job, occupational self-esteemed feelings of the
employees, employee information in work related activities, employee knowledge about
their company, employee satisfaction. The manager is mainly responsible for creating good
work culture in the department and among the team members. A manager with high task
orientation and congenial relationship with staff creates open work culture while managers
with low task orientation and unfriendly or uncongenial relations with staff are responsible
for creating closed work culture in the organization.
Many management theorists believe that manager is a significant agent in
promoting or retarding change and organizational development. He holds a key position in
the improvement of his professional staff. He is the acknowledged and appointed status
leader. Whether the organization becomes a challenging professional enterprise or a dull
and dreary place for employees depends on the quality of the leadership he/she provides
for his employees. The function of the manager as a leader should be to help the individual
employee to obtain self actualization and the organization to fulfill its objectives.
143
IMPACT OF EMPLOYEE EMPOWERMENT ON JOB
SATISFACTION IN BANKING SECTOR WITH REFERENCE TO
CHENNAI CITY
Dear Sir/Madam,
I am doing a research work on the above topic. I would request you to
kindly spare some time to fill up this questionnaire. Thank you very much for your
cooperation.
Dear sir/Madam,
I am doing a research work on the above topic. I would request you to
kindly spare some time to fill up this questionnaire. Thank you very much for your
cooperation.
1. Name :
2. Gender : (1) MALE (2) FEMALE
3. Age in year :
4. Educational Qualification : (1) UG (2) PG (3) PROFESSIONAL DEGREE
(4) Others
5. Designation : (1) SENIOR (2) MIDDLE (3) JUNIOR
6. Experience in year :
7. Name of Bank :
8. Monthly Income (RS) : (1) <10,000 (2) 10,000-20,000
KokilaParthasarathy,
PhD Research Scholar- management stream,
Dr MGR University,
144
(3) 20,000-30,000 (4) 30,000-40,000
(5) 40,000-50,000 (6)> 50,000
9. No. of Trainings attended :
(Please tick the appropriate box)
Sl.
No. Employee Empowerment
ST
RO
NG
LY
AG
RE
E
AG
RE
E
NE
ITH
ER
AG
RE
E
NO
R D
ISA
GR
EE
DIS
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ST
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DIS
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1 My bank operates quality circle which provides me an opportunity
for contributing my ideas to work related problem.
2 I have the freedom to act suddenly in my job for meeting customer
Expectation.
3 I have autonomy in organizing the way of doing things in my job.
4 Top managers and low cadre employees mix up freely in banks.
5 Non managers are allowed to participate in decision making.
6 Managers do not delegate important task to non managers.
7 Iam involved in making decision that concerns my branch.
8 In past seven days, I have received recognized and praised for my
work.
9 At work am encouraged for my development.
10 In the last six months I have been appreciated for my progress.
11 In the last year, I was given ample opportunity to grow.
12 At bank promotions are fair and equitable.
13 Management recognizes and makes use of my abilities and skills.
14 Iam treated with respect by management and people I work with.
145
15 My bank regularly supplies information to employee about the
performance of our competitors.
16 I have the opportunity for obtaining information about the bank
customer feedback
17 New generation of knowledge workers more comfortable with
technology is incorporating the analysis of information into
everyday work tasks.
18 Iam familiar with the mission statement put forth my department.
19 Does a good job communicating information about changes or that
may affect employees?
20 My bank offers me good opportunity for acquiring skills in team
work.
21 I have opportunity to acquire sufficient skill in business operation
of my bank.
22 Sharing knowledge with my co workers improves the likelihood of
getting a better work assignment for me.
23 In our organization tools and technology for sharing knowledge is
reliable.
24 Iam informed of what knowledge skills, information my colleagues
have.
25 I use email to share knowledge with co workers.
26 I feel that I am a person of worth at least on an equal plane with
others.
27 Iam able to do things as well as most other people.
28 I feel that I do not have much to be proud of.
29 I take a positive attitude toward myself.
30 On the whole I am satisfied with me.
31 I wish I could have more respect for myself.
32 I can understand the ideas and skills taught at my training.
33 My skills are weaker than other people in this training.
146
34 When my team, committee, or bank fails to achieve an objective
my first assumption is that it’s some kind of leadership issue.
35 During discussion or brainstorming seminars, people turn to me and
ask for my advice.
36 I rely on my relationship with others rather than organizational
systems and procedures to get things done.
37 Iam satisfied with the caliber of people who report to me or work
with me.
38 As a leader you have the power to influence motivation.
39 By clarify objectives and explains how the work supports them.
Sl.
No. Employee Satisfaction
41 The chance to be of service to others
42 The chance to try out some of my own ideas
43 The chance to work by myself
44 The chance to have other workers look to me for direction
45 My job security
46 The amount of pay for the work I do
47 The work conditions on this job
48 The opportunities for advancement on this job
49 The chance to work alone on the job
50 The chance to do work that is well suited to my abilities
51 The way my boss handles his/her employees
52 The way my job provides for a secure future
53 Being able to do something much of the time
54 The routine in my work
55 The chance to supervise other people
147
56 The way employees are informed about company policies
57 The pleasantness of the working conditions
58 The way promotions are given out on this job
59 Being able to stay busy
60 The chance to try my own methods of doing my job
61 The way my boss trains his/her employees
148
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LIST OF PUBLICATIONS
I. Scopus Indexed International Journals
Kokila, P &Ramalingam, S 2014, ‘An Empirical Study on Organizational Culture
and its Impact on Employee Motivation with Reference to Industrial Estates in
Chennai’, International Journal of Applied Business and Economic Research, vol.
12, no 4,pp 1127-1117.
Kokila, P &Ramalingam, S 2014, ‘Benchmarking HRM Practices among Banking
Sectors in Chennai’, International Journal of Economic Research, vol. 11, no 3, pp
555-560.
II. Book Author
Kokila, P &Ramalingam, S 2014, ‘Research Referencing’, ‘A Guide to Research
Scholars’ ISBN-978-93-84654-02-3, Edition 2014, Published by Department of
Management Studies, Dr.MGR Educational and Research Institute University,
Maduravoyal, Chennai.
III. Book Chapter
Kokila, P &Ramalingam, S 2012, ‘Writing a Paper: Timeline’, ‘Publishing a
Research Paper: A Panoramic View, ISBN-978-81-925141-0-9, Edition 2012,
162
Published by Department of Management Studies, Dr.MGR Educational and
Research Institute University, Maduravoyal, Chennai.
IV. Case Developed
Kokila, P &Ramalingam, S 2013, ‘Case Method’ ‘Sahara’s OFCD: Case discusses
the manipulative mechanism of Sahara and the landmark decision of Supreme
Court’,Published by Department of Management Studies, Dr.MGR Educational and
Research Institute University, Maduravoyal, Chennai.
III. Refereed International and National conferences
Presented a paper titled “Women Related Gender Issues, Health, Legal and
Educational Aspects” in the National Conferences on ENTIME 2013- Women
Empowerment in Emerging New Trends in Managerial Excellence held at
Sathyabama University Chennai.
Presented a paper titled “Factors Affecting Entrepreneurial Development” in the
International Conferences on BIZAD 2K 14-Entrepreneurship & Management Fest
held at SRM University Kancheepuram.
Presented a paper titled “Performance Management for Competitive Advantage for
Banking Industry” in the National Conferences on Strategies for sustainable
Competitive advantage held at D.J. Academy for Managerial Excellence,
Coimbatore.
II. Work Shop Participated
Participated in Faculty Development Program titled “Role of SPSS in Academic
Research” held at Dr.MGR Educational and Research Institute University,
Maduravoyal, Chennai.
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