Relationship Between Job Satisfaction and Absenteeism of the Employees in the Private Commercial Banks in Bangladesh

1. Relationship Between Job Satisfaction and Absenteeism of the
Employees in the Private Commercial Banks in Bangladesh

2. Course Name: Organizational Behavior (THM – 225)
Submitted To:
Md. Shariful Alam Khandakar
Lecturer
Department of Tourism and Hospitality management,
Faculty of Business Studies
University of Dhaka
Submitted By:
Name Roll No.
Md. Saifullar Rabbi 84
Shimu Akter 85
Md. Armaan Rashid Shovon 86
Mohammad Zahedul Islam 87
Lijon Rema 88
Date of Submission: December 04, 2013
Letter of Transmittal
December 04, 2013
Md. Shariful Alam Khandakar

3. Lecturer,
Department of Tourism and Hospitality management,
Faculty of Business Studies,
University of Dhaka.
Subject: Submission of Report on “RelationshipBetween Job Satisfaction and Absenteeism
of the Employees in the Private Commercial Banks in Bangladesh”.
Dear Sir,
We are proud to present you our group’s report, which is entitled “Relationship Between Job
Satisfaction and Absenteeism of the Employees in the Private Commercial Banks in
Bangladesh”, which was done under your instruction. We would like to thank you for giving
us the opportunity to work on such a report. By doing this report, we gained lots of valuable
knowledge not only on creating a report, but also on understanding the significance of
analyzing a particular company. The entire report is based on our practical experience in
SIBL, IBBL & NCC Bank Limited. We have tried our level best to provide what we have
learned during our academic course, Organizational Behavior.
We sincerely hope that this report meets your approval and demonstrates our ability to present
reports. We would be glad to furnish you with any clarification if required.
Sincerely Yours,
Team Inception,
Dept. of Tourism & Hospitality Management (5th
Batch),
University of Dhaka
Acknowledgement
At the very beginning, we would like to express our gratitude to Almighty Allah for
whose kindness we are enough sound mentally and physically to prepare this report.
Then we must express our deep gratitude to our course teacher, Md. Shariful Alam
Khandakar, Lecturer, Dept. of Tourism & Hospitality Management, for his guidance and
instructions in conducting the survey program successfully.
Then we would like to thank the Human Resource Department of SIBL, IBBL & NCC
Bank Limited for granting us the opportunity to make this survey program in their
organizations.
Finally, we would like to thank all the officials of SIBL, IBBL & NCC Bank Limited
for their co-operation, support and love. This was truly an excellent environment to
work with and gain practical experience. We would like to thank from the bottom of

4. our heart to those people who had contributed in making this report a huge success.
We are grateful to all for their supportive and friendly behavior.
Table of Contents
Serial No.
Topic Page No.
1 Executive Summary
2 Introduction
3 Objective of the Study
4 Limitations of the Study
5 Literature Review
6 Methodology
7 Determinants of Job Satisfaction
8 Results

5. 9 Findings from the Result
10 Recommendations
11 Conclusion
12 References
13 Appendix
Executive Summary
The purpose of this study is to present and test a model that identifies employees’
work related attitudes which enhance organizational goals in relationship with the
practices of motivation, job security and job satisfaction in private commercial banks of
Bangladesh. Research world is getting more and more importance on how employees’
work related attitude is fluctuating with different types of HRM practices. Job
satisfaction describes how content an individual is with his or her job. The happier
people are within their job, the more satisfied they are said to be. Job satisfaction is
not the same as motivation, although it is clearly linked.
This part is based on the analysis of three private banks’ employees’ behavior and
cooperation to the customer and concluding part of that report. In Bangladesh similar
type of studies were not more conducted before. This paper, therefore, aims to
identify the relationship among the factors such as motivation, job security and job
satisfaction of employees works related feelings.
The sample for this study was the current employees of SIBL, IBBL & NCC Bank
Limited. Printed questionnaires were distributed among 36 respondents and all the
questionnaires have been collected and taken as the data for the research. In this
study, the correlation value was satisfactory, which proved that the items of
questionnaires were appropriate with this study. Therefore, the current study was

6. meaningful to access the level of job satisfaction among the current employees of
IBBL, SIBL & NCC Bank Limited.
Key Words:
Job Satisfaction, Motivation, Absenteeism, Bank, Employee.
Introduction:
Job satisfaction is a matter of growing interest, for it is concerned with the individual's
quality of working life and organizational efficiency. The expectations and values
vary with different person and their culture. In the present situation bankers are
not stable in their current job. The rate of changing job increased very fast.
The reason might be the lack of satisfaction with their present job. It is well
established that job dissatisfaction affects both banks and bankers. In many
cases public sector bankers are switching to the private sector banks,
at the same time they are switching from one private bank to another.
In the context of banking in developing countries like Bangladesh, it is well
known that private sector banks are characterized by higher salary, close
supervision, recognition of good work, and good relation with the co-
workers leading to congenial work atmosphere. But it is also assumed that
private banks Executives especially conventional banks are more satisfied
with their job satisfaction than those employed in Islamic banks. It is
because of the fact that Islamic banks executives have to work under the
strict control and supervision of the Sariah board.
Again, job satisfaction may also vary in terms of occupational level. It is also
assume that job satisfaction of the top level executives is higher than those
at the mid-level management. Under this circumstance, the question may
arise: Do the executives of conventional banks enjoy prevailing in the work
place? On the other hand do the top-level executives enjoy more job
satisfaction than the mid-level executives? Therefore, the paper is an
attempt to find answer of the above question and the study tries to
compare job satisfaction of bankers and employee in conventional banks or

7. in Islamic banks in one hand, and top-level executives, mid-level
executives and others.
Objective of the Study:
We had determined our objectives behind preparing the report on the topic
“Relationship Between Job Satisfaction and Absenteeism of the Employees in the
Private Commercial Banks in Bangladesh”. This study is aimed at providing us
invaluable practical knowledge about banking operation system in Bangladesh.
It will also help us to develop our concept of banking and its performance.
The objectives of preparing this report can be divided into two parts:
Major Objective:
Primary objective of the report is to know about employees’ performance & job
satisfaction & to acquire practical knowledge about overall banking system.
Secondary Objective:
 To study the employees perception towards organization
 To study the attitude of the employees towards their works
 To identify the factors that motivates the employees
 To identify that whether employees are loyal to their organization
 To identify that whether employees are satisfied
Limitations of the Study:
 Limited access to the information has been the major constraint of the report.
 SIBL, IBBL, NCC Bank Limited has very rigid policy of not letting surveyors get too
deep within the operations of the bank. They did not disclose such information
that hampers the organizational confidentiality.
 The websites were not operating properly time to time, which caused a great
amount of trouble.
 Since bank officials had to remain very busy, they could provide me only a little
time and attention.
 Time period for the report is not sufficient.
 Moreover I have a very low accessibility in the banking operations since I have
a very low knowledge about banking activities.

8. Literature Review:
The following paragraphs deal with a brief review of literature on the existing subject:
Chowdhury (2007) has examined the “Job Satisfaction of Bank Employee: A
Comparative Study of Public and Private Sector Banks”. The main finding of the study
was that the private sectors bank employees are more satisfied than public sectors
bank employees. There is also difference of job satisfaction in different management
levels in both the sector except in the mid-level.
Hossain (1992) has examined the “Job Satisfaction and Job Behavior of Private Sector
Industrial Workers and Supervisors in Bangladesh”. The result reveals that job
satisfaction scored of the workers were higher than that of the supervisors. The study
also indicates that job satisfaction has significant impact on performance of the
enterprise. Moreover Job insecurity poor salary has been considered as the most
important cause of job dissatisfaction of the employees.
Saari and Judge (2004) have examined the relationship between “Employee Attitude and
Job Satisfaction”. In this study they have identified the causes ofemployee attitude, the
results of positive or negative job satisfaction and also measuring influence of
employee attitude.
Malik (2011) conducted a study on “Job Satisfaction Factors of Faculty Members at
University of Balochistan”. The findings of the study are that the faculty members are
generally satisfied with their jobs; however male faculty members were less satisfied
than female faculty member.
Purohit and Belal (1996) have conducted a study on “Job Satisfaction of Employed
Professional Accountants in Bangladesh: An Empirical Study”. The result of the study
has showed that the professional Accountants in Bangladesh are moderately satisfied
with their job. The results also show that there is a positive correlation between age
and job satisfaction.
Islam (2004) has made a study to assess and compare the job
satisfaction, Absenteeism and Turnover of workers of the Textile Industry in Bangladesh.
One of the main finding of the study is that job satisfaction has significantly negative
correlation with Absenteeism and turnover.

9. Methodology
Sample Selection:
The sample for this study was private banks in Bangladesh. A purposive sampling
technique was used to select the organizations. Initially, we identified three private
banks, Islami Bank Bangladesh Limited, Social Islami Bank Limited & NCC Bank
Limited. Then, we distributed questionnaires among ten executives of NCC Bank
Limited, fifteen executives of SIBL and ten executives of IBBL. In a way, thirty five
persons were used for the study as an ultimate sample.
Data Collection:
The questionnaire was constructed to measure the job satisfaction with some of the
job related factors. It contains some specific factors of the job (such as job contents,
job security, promotional opportunities, salary, job-status, benefits, working
environment, job autonomy, work schedule, management policies, recognition
for good work, participation with decision making, coworkers and
supervision). The respondents would indicate their satisfaction & dissatisfaction with
each of the specific determinants of the job by checking the 3 point scale. The
questionnaire consisted of both the open end and close end questions.

10. Survey Instrument:
A three step Likert scale was used to measure the level of job satisfaction of the
employees of the banks. The responses of respondents were categorized into three
groups and given them weight from minimum 1 to maximum 3; then assigned point 1
for the response ‘Disagree’; 2 for ‘Somewhat Agree’ and 3 for ‘Agree’. After getting
the responses on different organizational variables, the responses of each variable were
multiplied by the respective point, to get the overall value or significance of each
organizational variable. Then these values were used to calculate the mean values and
standard deviations to measure the level of job satisfaction on different aspects.
Likert scale is the measurement of attitudes designed to allow respondents to rate how
strongly they agree or disagree with carefully constructed statements, ranging from very
positive to very negative attitudes towards same object. In this study Likert scale was
used to measure the job satisfaction level (attitude towards the job) because attitude
is usually measured with an interval scale and where more than five factors are
considered to draw a conclusion. Attitude takes on meaning when one person’s
response is compared to another or through some other comparison.
A single attitude score alone contain little useful information. So in this study Likert
scale was more appropriate to measure the level of job satisfaction of the employees
of SIBL, IBBL & NCC Bank Limited.
Data Analysis:
The collected data were tabulated and processed through computer using SPSS
software. Before feeding data into computer, all data were converted into numerical
codes.
Statistical Tools Used:
Simple percentages were calculated to identify the perceived causes of job satisfaction
and to find whether the employees are significantly satisfied or dissatisfied.
Determinants of Job Satisfaction

11. Job satisfaction depends on many interrelated factors. Although these factors can never
be completely isolated from one another, they can, however be discussed separately
to give an indication of their relative importance to job satisfaction. Some important
determinants of job satisfaction are discussed below:
Salary:
Salary is a significant factor in job satisfaction. Money not only helps people attain
their basic needs but is instrumental in providing upper level need satisfaction. But
there has been a persistent controversy over importance of salary to job satisfaction or
dissatisfaction. It has been suggested that satisfaction resulting from the receipt of
remuneration is dependent not on its absolute amount but on the relationship between
that amount and some standard of comparison used by the individual.
Promotion:
The opportunities for promotion have often been found to influence job satisfaction
significantly. Number of investigators has found positive relationship between the
fulfillment of promotional expectations and job satisfaction.
Supervision:
Supervision is, without question, one of the most important factors related to job
satisfaction. Putnam (1930), stressing the importance of supervision in influencing
workers attitudes observes: “The relationship between the first line supervisors and the
individual workman is of more importance in determining the attitude, morale, general
happiness, efficiency of that employee than any other single factor.
Benefits:
Like salaries, benefits are other important determinants of job satisfaction. Fringe
benefit included medical allowance, conveyance allowance etc. The more the fringe
benefits the more would be the job satisfaction and vice versa.
Operating Procedure:
This is another important determinant of job satisfaction. If the management policies or
operating procedures are favorable for the employees there will be a definite
improvement in job satisfaction.
Co-Workers:

12. The relationship with one’s work associates is undoubtedly an important factor in job
satisfaction. In this connection, Mayo (1945) observes: “Man’s desire to be
continuously associated in work with his fellows is a strong, if not the strongest,
human characteristic”.
Nature of Work:
The nature or content of the work is one of the important factors, which contributes
to job satisfaction or dissatisfaction.
Working Environment:
This is another important facet of job satisfaction. If the working environment is
congenial there will be more job satisfaction undoubtedly and vice versa.
Results
The results of the study are presented below:
Table 01: Results In Terms of Total Number of Employees
Criteria/Variables Dissatisfied Somewhat Satisfied Satisfied
Salary 5 10 20
Promotion 5 10 20
Supervision 4 4 27

13. Benefits 1 12 22
Rewards 1 17 17
Operating Procedure 10 10 15
Co-Worker 5 7 23
Nature of Work 1 4 30
Working Environment 5 5 25
Table 02: Results In Terms of Percentages of Total Employees
Criteria/Variables Dissatisfied Somewhat Satisfied Satisfied
Salary 14.29 28.57 57.14
Promotion 14.29 28.57 57.14
Supervision 11.43 11.43 77.14
Benefits 2.86 34.29 62.86
Rewards 2.86 48.57 48.57
Operating Procedure 28.57 28.57 42.86
Co-Worker 14.29 20 65.71

14. Nature of Work 2.86 11.43 85.71
Working Environment 14.29 14.29 71.43
Table 03: Ratio of Satisfaction-Dissatisfaction & Overall Level of Satisfaction
of the Employees
Criteria/Variables Ratio of Satisfied &
Dissatisfied Respondents
Overall Level of Satisfaction
Salary 7:3 Somewhat Satisfied
Promotion 7:3 Somewhat Satisfied
Supervision 8:2 Satisfied
Benefits 8:2 Satisfied
Rewards 7:3 Somewhat Satisfied
Operating Procedure 6:4 Not Very Satisfied
Co-Worker 8:2 Satisfied
Nature of Work 9:1 Satisfied
Working Environment 8:2 Satisfied

15. Findings from the Result:
In Table 01, results in terms of total number of employees are given. In Table 02,
results in terms of percentages of total employees are given. And, In Table 03, ratio
of satisfied-dissatisfied employees and overall level of satisfaction are given.
From Table 01 it can be seen that 20 employees out of 35 are satisfied with their
salaries. 5 were dissatisfied and the rest 10 were somewhat satisfied. So, the ratio of
satisfied-dissatisfied employees in salaries is 7:3 (Table 03) and the overall level of
satisfaction is somewhat satisfied (Table 03).
20 employees out of 35 are satisfied with their promotion. 5 were dissatisfied and the
rest 10 were somewhat satisfied (Table 01). So, the ratio of satisfied-dissatisfied
employees in promotion is 7:3 (Table 03) and the overall level of satisfaction is
somewhat satisfied (Table 03).
From Table 01 it can be seen that 27 employees out of 35 are satisfied with
supervision. 4 were dissatisfied and 4 were somewhat satisfied. So, the ratio of
satisfied-dissatisfied employees with supervision is 8:2 (Table 03) the overall level of
satisfaction is satisfied (Table 03).
22 employees out of 35 are satisfied with their benefits. 1 was dissatisfied and 12
were somewhat satisfied (Table 01). So, the ratio of satisfied-dissatisfied employees
with benefits is 8:2 (Table 03) and the overall level of satisfaction is satisfied
(Table 03).
From Table 01 it can be seen that 17 employees out of 35 are satisfied with
rewards. 1 was dissatisfied and 17 were somewhat satisfied. So, the ratio of
satisfied-dissatisfied employees with rewards is 7:3 (Table 03) the overall level of
satisfaction is somewhat satisfied (Table 03).

16. 15 employees out of 35 are satisfied with operating procedure. 10 was dissatisfied
and 10 were somewhat satisfied (Table 01). So, the ratio of satisfied-dissatisfied
employees with operating procedure is 6:4 (Table 03) and the overall level of
satisfaction is not very satisfied (Table 03).
From Table 01 it can be seen that 23 employees out of 35 are satisfied with their
co-workers. 5 were dissatisfied and 7 were somewhat satisfied. So, the ratio of
satisfied-dissatisfied employees with their co-workers is 8:2 (Table 03) the overall
level of satisfaction is satisfied (Table 03).
30 employees out of 35 are satisfied with nature of their works. 1 was dissatisfied
and 4 were somewhat satisfied (Table 01). So, the ratio of satisfied-dissatisfied
employees with nature of their works is 9:1 (Table 03) and the overall level of
satisfaction is satisfied (Table 03).
Finally, when it comes to the point of working environment, then from table 01 it can
be seen that 25 employees out of 35 are satisfied with their working environment. 5
were dissatisfied and 5 were somewhat satisfied. So, the ratio of satisfied-dissatisfied
employees with their working environment is 8:2 (Table 03) and the overall level of
satisfaction is satisfied (Table 03).
Recommendations:
The recommendations for improvement of the level of job satisfaction of private bank
officers are as follows:
 Salary is the primary and most important factor for satisfaction. It should be
high enough to maintain the living standard of employees. The authority should

17. consider that salary structure and benefits should be reasonable and comparable
with that of other banks and or other similar institutions.
 The bank should have a transparent standing policy for promotion of employees
so that an officer not getting promotion can clearly understand the causes
behind it and may devote him to be fit for promotion. So that they can
improve their working standard with a competitive attitude to make themselves fit
for the future promotion.
 A congenial and supportive atmosphere should be maintained in the working
place so that officers can enjoy their job. The helpful attitude of co-workers to
each other should be maintained.
 Operating procedure of the bank should be simple and transparent. The
employees should feel at home and find satisfaction in their job if the working
procedure is easily understandable to them. In this regard provisions in service
training and guidance should be provided to perform banking job efficiently.
 Sharing of information among different divisions within the organization should be
possible; so that the employees feel belongingness.
 All the superiors at each level should be cordial and friendly to their
subordinates.
 There should be provision for different kind of rewards for better performance. It
will encourage them to take responsibility and also will improve their willingness
to perform better.
Conclusion:
SIBL, IBBL & NCC Bank Limited play a vital role in the development process of the
country through financing industrial and agricultural process, local and foreign trade,
and allocation of funds to various off-firm employment and self-employment projects.
In the investment arena of the country, these three banks play important role by
mobilizing people’s savings into the form of deposits. The performance of a bank
mostly depends upon the level of its customer satisfaction. Bank, as a service
oriented organization, will lose confidence of the clients if it fails to serve them
properly. Any problem related to customer service causes customer dissatisfaction.
Everybody will confess the truth that a set of dissatisfied employees can’t satisfy its
customers perfectly. Privatization of national bank is not a solution for making a bank
profitable rather job satisfaction of officers is important. So, the authority should

18. concentrate to build a set of satisfied employees. It must be admitted and appreciated
because total success of the bank depends on the employees’ performance, efficiency,
honesty, diligence and integrity. So special care should be taken to increase and
maintain their level of job satisfaction and thereby assist them to increase their
efficiency and productivity since they are playing a vital role in the economic
development of the country.
References:
1. Bullock, R.P. (1952). Social Factors Related to Job Satisfaction, Research
Monograph, 70, Ohio State University, Bureau of Business Research, Columbus.
2. Cranny, C.J, Smith, P.C.& Stone, E.F.(1992). Job Satisfaction: How people feel
about their job and how it affects their performance, New York: Lexington Books.
3. Haque, S. (1995). Job Satisfaction and Job Involvement of the mid-level Industrial
Managers. Dhaka University Journal of Psychology, 14: 33-42.
4. Hoppock, R. (1935). Job Satisfaction. New York: Happer and Brothers.
5. Jahan, R. & Haque, S.M.S. (1993). Effects of Organizational Climate on Job
Involvement, Job Satisfaction and Personality of Mid-Level Managers. The Bangladesh
Journal of Psychology, 14: 33-42.

19. Appendix:
Survey Questionnaire

20. A Survey on the Relationship Between Job Satisfaction & Absenteeism in the
Private Commercial Banks of Bangladesh
Bank Name:
Branch Name:
Date:
1. Salary matches with the responsibility and the level of satisfaction.
A. Disagree B. Agree c. Somewhat Agree
2. My coworkers are very friendly and helpful.
A. Disagree B. Agree c. Somewhat Agree
3. I can receive the directions and advices from others in my organization.
A. Disagree B. Agree c. Somewhat Agree
4. I believe that I feel motivated and engaged in my job.
A. Disagree B. Agree c. Somewhat Agree
5. I feel that motivational altitude depend by the rewards and benefits which are
given by the company.
A. Disagree B. Agree c. Somewhat Agree
6. I can share my ideas and thoughts to “make a variation” or to add to the overall
achievement of the organization.
A. Disagree B. Agree c. Somewhat Agree
7. The organization provides sufficient benefits and sufficient salaried leave.
A. Disagree B. Agree c. Somewhat Agree
8. The operational environment is excellent and secure.
A. Disagree B. Agree c. Somewhat Agree
9. I will switch my job in the next year.
A. Disagree B. Agree c. Somewhat Agree
10. Job security and level of satisfaction are good.
A. Disagree B. Agree c. Somewhat Agree
11. The organizational supports for its employees‟ welfare are satisfactory.
A. Disagree B. Agree c. Somewhat Agree
12. The corporation visions its human resources as valuable asset.
A. Disagree B. Agree c. Somewhat Agree
13. I feel totally secured in my job.
A. Disagree B. Agree c. Somewhat Agree
14. I can contract cooperation from other sections in the organizations.
A. Disagree B. Agree c. Somewhat Agree
15. Working hours and level of satisfaction are good.

21. A. Disagree B. Agree c. Somewhat Agree
16. Recognition for contribution and level of satisfaction.
A. Disagree B. Agree c. Somewhat Agree
17. I find it hard to agree with my organization’s practices and strategies.
A. Disagree B. Agree c. Somewhat Agree
18. Administration understands the importance of matching my effort and
individual life.
A. Disagree B. Agree c. Somewhat Agree
19. My organization is better compared to others.
A. Disagree B. Agree c. Somewhat Agree
20. I am very proud to tell others that I am a part of my organization.
A. Disagree B. Agree c. Somewhat Agree