Real World Implementation of Motivational Theories in

Banking Sector of Pakistan

Prepared for

Mr. Faisal Azeem Malik

Lecturer, CIIT Wah Campus

Prepared by

Shaffaq Rashid Khan

Sadaf Shaheen

Beenish Ali

Aasia Rafique

January 05, 2006

C E R T I F I C A T E

This is to certify that MBA thesis titled “Real World

Implementation of Motivational Theories in Banking Sector of

Pakistan”, prepared by Enrollment # fa04-mba-064, fa04-mba-

018, fa04-mba-057 and fa04-mba-001, and has been approved

for submission.

Mr. Malik Faisal AzeemProject Supervisor

Letter of Transmittal

To: Mr. Faisal Azeem Malik, Lecturer COMSATS Institute of Information Technology, Wah Cantt. From: Shaffaq Rashid Khan, on behalf of the grooup

Date: January05, 2006.

Subject: Real world implementation of motivational Theories in Banking Sector of Pakistan

Respected Sir,

Here is the report you assigned on November 01, 2005 on the issue

of Real world implications of motivational theories in banking

sector of Pakistan. Motivation is the key factor for the ultimate

achievement of organizational goals. A motivated employee is more

productive than a merely satisfied employee. That is why over the

past few years’ importance of Human Resources Management has

increased a lot. It’s mainly the duty of a human resource manager

to keep an organization’s employees motivated.

As a group we found this research activity interesting,

challenging and most of all, hopefully, rewarding in studying and

solving the problem of motivational related areas.

We are thankful to Mr. Malik Faisal Azeem for their help and

making this task easy for us.

Thanks for giving us an opportunity to work on this research

area. It’s been a real education. We have successfully completed

the job given to us and is submitted for your kind consideration.

Executive Summery

This research topic evolves around the very critical issue. This

issue is related to human resources management. Our basic purpose

for conducting this study is to see that to what extent

motivational theories do have their practical implication? The

area which we have selected is Banking Sector of Pakistan. The

reason for selecting this issue for research purpose is the one

and only very important factor –Motivation. “Motivation is the

inner state that causes an individual to behave in a way that

ensures the accomplishment of some goals”. For this reason it is

necessary to obtain an understanding of the theory behind

motivation so that when we come to implement motivation type

activities, we can tailor them to suit the requirements of a

given situation.

Many students and managers are put off by the word “theory.” 

They want to learn real world techniques to help them become

better managers.  They believe that textbooks do not generally

represent the real world.  We often hear comments like, “that's

fine in theory, but it doesn't work in the real world.”  To some

extent, this is true.  The formal theories found in textbooks

often do not represent every situation found in actual

organizations.  On the other hand, every decision that we, as

managers, make is based on the theory (or mental model) of how

and why people behave in organizations. 

Human Resource Managers have to create an environment in which

their employees are likely to be motivated sufficiently to learn

and then to repeat the learned processes or activities. The sole

purpose of learning about motivation is that they can get their

people to act according to what they want done in the department

and/or company.

Different motivational theories have been presented in different

times. These theories are widely used by managers in one way or

other. Now what we have to do is to see that to what extent these

theories are implemented in our sector and in what state?

Table of Contents

1.Dedication 05

2.Executive Summary 07

3.Research Proposal 11

3.1. Executive Summary 12

3.2. Statement of the problem 12

3.3. Limitations 12

3.4. Review of Literature 13

3.5. Research Objectives 13

3.6. Methodology 14

3.7. Hypothesis 14

3.8. Research design 15

The Surveys 15

Interviews 15

3.9. Nature and forms of result 15

3.10. Qualification of researchers 15

3.11. Schedule 16

4.Research Design 17

4.1. Diagram 17

4.2. Explanation 17

5.Data Collection Methods 19

5.1. Primary & Secondary Data collection 19

5.2. Sampling 20

Technique 21

Size 21

6.Research Process 22

6.1. Broad problem Area 23

6.2. Preliminary Data Collection 24

6.3. Theoretical Framework 26

6.4. Hypothesis Development 29

7.Operational Definition

7.1. 5 dimensions, 3 elements of dimensions 30

7.2. Questionnaire for both interviewer and 33

8.Comparisons / Results 35

8.1. Comparison Sheet 35

8.2. Result 35

Explanation 37

Tables 37

Graphs 37

9.Conclusion 38

10. Suggestions 40

11. References & Bibliography 41

12. Appendix 43

1. INTRODUCTION

1.1Statement of the Problem

“How our (managers) problem solving and decision-making processes

are based on our personal mental models (also called theories-in-

use)? What is the real world implication of motivational theories

as it is often said that that's fine in theory, but it doesn't

work in the real world”.

Limitations

“How our (managers) problem solving and decision-making processes

are based on our personal mental models (also called theories-in-

use)? What is the real world implication of motivational theories

as it is often said that that's fine in theory, but it doesn't

work in the real world”.

But this is a huge area! We need to determine some appropriate

boundaries in order to make the project manageable. So for this

research process we would only focus on banking sector of

Pakistan i.e. what is the real world implication of these

theories on this sector. Theories which we would cover are:

Maslow Need Hierarchy Theory

Two-Factor Theory

Cognitive Evaluation Theory

Goal Specificity Theory

Expectancy Theory

1.3 Research Objectives

One of the most important concerns of a manager is to motivate

people to make their optimum contribution to the achievement of

organizational goals. It, therefore, becomes important for him to

understand what motivates people to behave, as he wants them to

do. Since the needs of the employees and the organization are not

always the same, the manager can better integrate these two sets

of needs by gaining an insight into the needs of his employees

and then channelise them in the direction of organizational

needs. This research study can be beneficial in so many areas.

Let us have a look on some of its key objectives:

To develop a better understanding of banking sector

particularly from motivational standpoint

In the extensive literature about the motivational level of

employees in the banking sector of Pakistan, little has been

written about the relation ship between managers & employees

and what are the ways through which managers can motivate

their employees.

To study the relationship between real world motivational

practices and the proposed motivational theories

To prove that these theories-in-use drive managerial

decision-making and problem solving and they are the basis

of the development of our style of leadership

The present study will enhance the limited research about

employees’ perception of manager and what sort of manager

employee relation-ship should be build to enhance employee’s

organizational commitment and job satisfaction to motivate

them.

It would seem to be an opportune time to undertake such a

study in the light of present banking climate where there is

demonstrated need for satisfaction and commitment of

employees.

The approach used in this study may encourage further

research and provide use full guideline for the promotion of

employee’s job satisfaction and commitment hence improving

their motivational level.

It is hoped that this study will contribute to the ongoing

research about the real world implementation of motivational

theories in banking sector of Pakistan.

1.4 Qualification of researchers

The following members are currently taking responsibility for

sections of the project:

Shaffaq Rashid

Sadaf Shaheen

Beenish Ali

Aasia Rafique

We are senior students of COMSATS Institute of information

technology (Wah Cantt), and we have a strong track record of

basic research process.

The main role in order to conduct this research is of our kind

teacher “Mr. Faisal Azeem Malik” who is the faculty member of

COMSATS Institute of Information and Technology (Management

Science Department).

1.5 Schedule

Preparation of questionnaires November 2005

Completion of questionnaires December 2005

Conducting of interviews with some of the bank managers,

December 2005

Translation/interpretation of responses December 2005

Drafting of reports January 2006

2. Literature Review

Importance of the review of the literature is in the fact that

it provides the background knowledge of the problem to be

studied. Research can be completed successfully by consulting

the good literature. For completing this research books as well

as the former research was consulted that helped a lot to make

this research activity successful.

With the introduction of new technology to increase

efficiency and improve quality, automation of some areas of

work has increased job insecurity and workload pressures,

and resulted in deskilling and loss of social status for

employees (de Keyser, Decortis and Crommen, 1988). On the

other hand however, there is little evidence of any

technological change in the tasks performed by mail delivery

employees, whose job remains very physical and labour

intensive, and who are required to work long hours doing

repetitive and solitary work in harsh working conditions

(American Postal Workers’ Union, 2001). Such conditions –

involving heavy, physical and monotonous tasks – increase

the risk of musculoskeletal problems, ill-health and

consequently sickness absence (Voss, Floderus and

Diderichsen, 2001), and can be predictors of workplace

violence (see figure 1 below).

Apart from a number of personal and organizational factors

associated with workplace violence, Barling (1996) suggests

that we must consider the interaction of the individual with

their environment, including relationships and expectations.

Effective communication therefore, would be a key to

ensuring that change initiatives are clearly understood and

that employee concerns are dealt with adequately (Giga,

Faragher and Cooper, 2002). Such steps will ultimately

increase the motivational level of employees.

Various studies of workplace violence and stress have been

found. Of specific concern to employees is the lack of

control that they have over their work, with reports of

monotonous tasks and a general move towards deskilling of

jobs, leaving very little opportunity for personal

development.

The costs of stress both to individuals and organizations

are extensive (Lim and Teo, 1999; Chappell and Martino,

2000; Hoel, Sparks and Cooper, 2001).

Stress is particularly high among workers who experience

regular acts of violence, or threats of violence. In

particular, younger workers and workers on fixed-term

contracts report violence as a major cause of stress in the

workplace (Communication Workers’ Union, 2001).

Research within the postal sector has shown that

organizational outcomes of stress

Include:

Low productivity,

High absenteeism and

High turnover

2.1 Motivational Theories

2.1.1 Contemporary Views of Work Motivation

The previous theories are well known but unfortunately, have

not held up well under close examination. However, all is not

lost. There are a number of contemporary theories that have one

thing in common each has a reasonable degree of valid

supporting documentation. Of course, this doesn’t mean that the

theories we are about to introduce are unquestionably right. We

call them “contemporary theories” not because they necessarily

were developed recently, but because they represent the current

state of the art in explaining employee motivation.

2.1.2 ERG Theory

Clayton Alderfer of Yale University has reworked Maslow’s need

hierarchy to align it more closely with the empirical research.

His revised need hierarchy is labeled as ERG theory

Alderfer argues that there are three groups of core needs

Existence_ (group is concerned with providing our basic

material existence requirements.)

Relatedness_ (the desire we have for maintaining

important interpersonal relationships.)

Growth – (an intrinsic desire for personal development.)

Hence, the label is known as ERG theory...

Aside from substituting three needs for five, how does

Alderfer’s ERG theory differ from Maslow’s? In contrast to the

hierarchy of needs theory, the ERG theory demonstrates that:

(1) More than one need may be operative at the same time,

(2) If the gratification of a higher – level need is stifled,

the desire to satisfy a lower-level need increases.

Inability to satisfy a need for social interaction, for

instance, might increase the desire for more money or better

working conditions. So frustration can lead to a regression to

a lower need.

In summary, ERG theory argues, like Moslow’s theory,

that satisfied lower-order needs lead to the desire to

satisfy higher-order needs; but

Multiple needs can be operating as motivators at the

same time, and frustration in attempting to satisfy a

higher-level need can result in regression to a lower-

level need.

The evidence demonstrating that people in other cultures rank

the need categories differently – for instance, natives of

Spain and Japan place social needs before their physiological

requirements – would be consistent with ERG theory. Several

studies have supported ERG theory, but there is also evidence

that it doesn’t work in some organization. Overall, however,

ERG theory represents a more valid version of the need

hierarchy.

2.1.3 McClelland Theory of Needs

David McClelland and others have proposed three major relevant

motives or needs in the workplace:

1. The need for achievement (nAch): The drive to excel, to

achieve in relation to a set of standards, to strive to

succeed

2. The need for power (nPow): The need to make other behave

in a way they would not have behaved otherwise.

3. The need for affiliation (nAff): The desire for friendly

and close interpersonal relationships.

From research into the need for achievement, McClelland found

that high achievers differentiate themselves from others by

their desire to do things better. High achievers perform best

when they perceive their probability of success as 50-50 chance

of success

The need for power is the desire to have an impact, to be

influential, and to control others.

The need isolated by McClelland is affiliation. Individuals

with a high nAff strive for friendship, prefer cooperative

situations rather than competitive ones, and desire

relationships involving a high degree of mutual understanding.

2.1.4 Cognitive Evaluation Theory

In the late 1960s, one researcher proposed that the

introduction of extrinsic rewards, such as pay, for work effort

that had been previously intrinsically rewarding due to the

pleasure associated with the content of the work itself would

tend to decreases the overall level of motivation. This

proposal-which has come to be called the cognitive evaluation

theory-has been extensively researched, and a large number of

studies have been supportive. As we’ll show, the major

implications for this theory relate to the way in which people

are paid in organizations.

Historically, motivation theorists generally assumed that

Stimulation of one intrinsic motivator such as achievement,

responsibility, and competence would not affect the other. That

is, they were independent of extrinsic motivators. But the

cognitive evaluation theory suggests otherwise. It argues that

When extrinsic rewards are used by organizations as payoffs

for superior performance, the intrinsic rewards, which are

derived from individuals doing what they like, are reduced.

In other words, when extrinsic rewards are given to someone

for performing an interesting task, it causes intrinsic

interest in the task itself to decline.5

2.1.5 Goal-Setting Theory

This theory states that specific goals increase performance and

that difficult goal, when accepted; result in higher

performance than do easy goals. This proposition has been

labeled goal-setting theory. It’s not necessary to review the

evidence again, but the results are important, so let’s

summarize what we know about goals as motivators.

Intention to work toward a goal is a major source of job

motivation. Studies on goals setting have demonstrated

the superiority of specific and challenging goals as

motivating forces.

While we can’t say that having employees participate in

the goal-setting process is always desirable,

participation is probably preferable to assigning goals

when you expect resistance to accepting more difficult

challenges. Difficult goals will lead to higher

performance only if they’re accepted.6

People will do better when they get feedback on how well

they are progressing toward their goals because feedback

helps to identify discrepancies between what they have

done and what they want to do; that is, feedback acts to

guide behaviour. Self-generated feedback-for which the

employee is able to monitor his or her own progress more

powerful motivator than externally generated feedback.

Goal-setting theory presupposes that an individual is

committed to the goal; that is determined not to lower or

abandon the goal. This is most likely to occur when goals

are made public, when the individual has an internal

locus of control, and when the goals are self-set rather

than assigned.

Self-efficacy refers to an individual’s belief that he or

she is capable of performing a task. The higher our self-

efficacy, the more confidence we will have in our ability

to succeed in a task.

2.1.6 Reinforcement Theory

In behaviour modification, four types of reinforcement are

available to help managers influence behaviour; positive

reinforcement, negative reinforcement, extinction, and

punishment.

Positive Reinforcement: Aimed at increasing a desired

behaviour, Positive reinforcement involves providing a

pleasant, rewarding consequence to encourage that behaviour,

the rewarding consequence, such as praise, a raise, or time

off, is said to be a positive reinforcer if it leads to

repletion of the desired behaviour. Since individuals differ

in regard to what they find pleasant and rewarding, managers

need to monitor the effects of a particular reinforcer to

determine whether it is effective in encouraging the desired

behaviour.

Negative Reinforcement: Like positive reinforcement,

negative reinforcement focus on increasing a desired

behaviour, but it operates in a different way. The desired

behaviour is reinforced in a negative way because the

individual must engage in the behaviour in order to get rid

of an unpleasant condition. For example, an engineer may

work hard to finish a project on time (desired behaviour) in

order to stop (Consequence) the chief engineer’s nagging or

yelling (noxious stimuli). Negative reinforcement may also

make the individual feel negatively toward the person

providing the reinforcement. It may also foster immature

behaviour.

Extinction involves withholding previously available

positive consequences associated with a behaviour in order

to decrease that behaviour. Suppose that the first few times

an employee engages in clowning behaviour. The employee’s

clowning behaviour would be gradually extinguished if the

manager proceeded to refrain from laughing in response to

it.

Punishment involved providing negative consequence in order

to decrease or discourage behaviour. Examples are

criticizing the unwanted behaviour wherever it occurs,

suspending an individual without pay, denying training

opportunities, or withholding resource such as new

equipment. Punishment differs from negative reinforcement as

it aims to decrease or discourage an undesirable behaviour

and it is usually applied after the individual has engaged

in undesirable behaviour. Arguments against the use of

punishment are that it can have undesirable side effects

(e.g. negative feelings toward the punisher) and that it may

eliminate the undesirable behaviour only as long as the

threat of punishment remains. Also, it does not prove a

model of correct behaviour. Punishment is likely to be most

effective if there are recognized company polices that

govern the situation; the punishment is given as soon as

possible after the undesirable behaviour; the punishment is

moderate, rater than were; and it is applied consistently.

2.1.7 Expectancy Theory

The Vroom expectancy theory of motivation encompasses some of

these complexities like the needs-goal theory, the Vroom

expectancy theory is based on the premise that felt needs cause

human behaviour. However, the Vroom theory also addresses the

issue of motivation strength and this is individual’s degree of

desire to perform a behavior. As this desire increases or

decreases, motivation strength fluctuates correspondingly.

2.1.8 Motivation and Perceptions

Vroom’s expectancy theory is shown in equation form in Figure.

According to this theory, motivation strength is determined by

the perceived value of the result of performing a behaviour and

the perceived probability that the behaviour performed will

cause the result to materialize. As both of these factors

increase, so does motivation strength, or the desire to perform

the behaviour. In general, people tend to perform the

behaviours that maximize their personal rewards over the long

term.

2.2 Banking Sector of Pakistan

The banking sector is experiencing drastic changes forcing

the players to redefine their strategies. State Bank of

Pakistan continues to update and amend its regulations and

instructions to enable the commercial banks to improve their

solvency and to enhance their capital strength and

competitive capabilities. The central bank has opened new

business opportunities by eliminating certain restrictions.

Now banks are allowed to implement their own credit

policies. They enjoy more freedom to tap many segments of

the market, which were previously unexplored.

The consumer banking activities has enhanced as many players

are coming up with branded products. The competition in this

area has intensified as larger banks continue to play a

significant role by improving the quality of products and

services they offer. New players have joined them with

innovative solutions and new services benchmarks.

Competition in this area is expected to get fiercer. The

winners will be those who could excel in customer services,

improve quality of products and continue innovations.

Larger banks, having the advantage of greater reach, are

threatening the existence of smaller banks. Larger banks

have adopted a more aggressive but accommodating approach by

focusing on client needs, improving response time and

increasing use of technology. Many banks have started

exploring rural areas with special focus on advances to

agriculture sector and related activities.

Local banks in Pakistan can be categorised as:

Nationalized Banks

Commercial Banks

Privatized Banks

Specialized Private Scheduled Banks

Provincial (Now Scheduled) Banks and

Investment Banks.

Most of the banks, which are providing the online facility,

are as follows:

1. ABN Amro Bank

2. ABL

3. Askari Bank

4. Bank Of Punjab

5. City Bank

6. Emirates Bank

7. Habib Bank

8. Industrial Development Bank Of Pakistan

9. Muslim Commercial Bank

10. National Bank Of Pakistan

11. Prime Bank

12. State Bank Of Pakistan

13. Standard Chartered Bank

14. UBL

What this research paper is all about is the real world

implementation of motivational theories in banking sector of

Pakistan. Since while watching the motivational level of any

employee in any organization or in any industry, main focus

will be on the study of the behaviour of individuals with

regard to their motivational levels in organizations. The

basic purpose of studying the behaviour of individuals in

organizational are settings an attempt to explain and

predict patterns of behaviours of organizational members:

their direction and amount of effort, their levels of

performance, and their membership and tenure within these

organizations.

In short form manager who believes that employee who is

motivated ultimately his performance will increased by

increasing employee satisfaction, and manager might do

everything in his power to keep employees satisfied in an

effort to improve their level of performance. Here, his

actions will be based on a very simple mental model

comprised of two variables:

1. Dependent variable (employee performance)

2. Independent variable (employee satisfaction).

This mental model can be represented as:

Employee Performance Satisfaction

2.3 Banking Sector and Current HRM Practices

Over the past few years importance of Human Resources

Management has increased a lot. It’s mainly the duty of a

human resource manager to keep an organization’s employees

motivated. The focus of HRD activities during 2003-04 as

founded during this research in banking sector has been in

the implementation of modern management practices in the

areas of:

Performance management,

Career advancement,

Training and development,

Recruitment.

During the past year, HRD focused on consolidating the changes

already introduced, through creating awareness, responding to

user feedback on simplification of procedures and updating allied

policies and procedures to ensure effective implementation of the

new initiatives.

The HR focus in the area of automation during the year has

been on maximizing the return on investment through

utilizing the automated processes and strengthening the

linkages/integration between various automated modules. As a

result most of the decisions are being made on the basis of

this automated system, which has aided in promoting

transparency and efficiency in decision-making.

2.3.1 Recruitment

Starting this year most of the banks incorporated web-based

application processing and automated its whole recruitment

process through adopting the recruitment sub module of

Oracle HRMS the most obvious and prominent name in this

regard is State Bank of Pakistan.

Further more, to promote diversity within the banking sector

and encourage greater participation of educated females in

economic activity, a special recruitment processes are often

conducted through the various Bank’s Officials Training

Scheme.

2.3.2 Training and Development

Training has been an important aspect of the strategy

adopted by the banking sector to enhance the quality of

human resources and to keep employees more motivated.

Continued training and process of learning have played a

vital role towards successful accomplishment of the mandated

responsibilities in recent times.

By providing the employees with an opportunity for

acquisition and enhancement of skills, linking the learning

process with results and making learning an inherent part of

the Performance Management System (PMS), training has been

transformed into a requirement and not just an option.

In order to improve the effectiveness of training and

development activities and align them more closely with the

overall capacity building and various change initiatives at

most of the banks is that the Training Department has been

merged into the HRD as one of its divisions.

While our survey for secondary data we have found that most

of the banks have designed special kind of training tracks

for the development of their employees so they may remain

motivated and perform well. Special names in this regard are

1. Askari Bank

2. State Bank Of Pakistan

3. Alfalah Bank.

Training Tracks

The training policy has been designed to provide skill

development and enhancement opportunities through the

introduction of the concept of Training Tracks, in line with

career growth in the organization. These multidimensional

training tracks are designed to provide the pre-requisite

trainings to career progression in different grades. In

addition to the usual focus on central banking skills, the

scope of the training include management and specialized

skills development as an integral part of the training

policy.

Courses

Similarly according to data different courses are being

offered to employees over the period of time for their

career development. With the coordinated efforts of the

Training Division,

National Institute of Banking and Finance (NIBAF)

and the

Departmental Training Coordinators (DTCs)

Employees are being trained and promoted to above scales.

This increase reflects the higher awareness amongst the

officers about the importance of these programs in their

career development. Moreover, greater availability of one-

week duration modules could have been another contributory

factor, which allowed the participants to go for training

without any severe setback to their work schedule.

Foreign Training Programs

To keep pace with the on-going changes in the field of

monetary management taking place throughout the world, due

importance was given to availing the maximum number of

fully-funded program at the IMF, most of the banks are now

promoting their employees for attending the relevant

foreign training Programs. These programs are mostly offered

in:

Risk management,

Banking supervision,

Banking inspection,

Financial programming and policies,

Payment system,

International rules of auditing,

Inflation targeting,

Foreign exchange management and many other areas of

special interest to banks.

2.3.3 Types of Training

Common Training Programme (CTP): An officer before being

assigned to a job is required to complete CTP at the Civil

Services Academy. The CTP suffers from inappropriate length,

irrelevant curriculum, lack of rigor in the subject matter,

and poor quality of the resource persons.

Specialised Training Programme (STP): In STP the main

emphasis is on the development of technical skills and

little attention is paid to areas like information

technology and management skills. Officers in the field

informed us that STP lacked practical orientation and was of

very limited use in their actual jobs. The curriculum,

training design, and faculty skills all contribute to the

poor quality of the training programme.

National Institute of Public Administration (NIPA): The

programme at NIPA is well organised and has a good learning

environment. The content however, is of little direct

relevance to the trainee’s job assignments. It has a general

administrative orientation and has no technical component

suitable for middle management. The programme is deficient

in the areas of leadership skills, human resource management

and negotiation skills.

Pakistan Administrative Staff College (PASC): The National

Management Course at PASC is an advanced management

programme aimed at enhancing management skills. The quality,

objective and duration of the course was assessed as

satisfactory and meeting the training needs of senior

officers of tax administration.

Other Training: Officers of tax administration receive

limited short-term training inside and outside Pakistan.

There is no systematic assessment to identify employees’

training and development needs, resulting in an absence of a

comprehensive training plan.

2.3.4 Employee Recognition Policy

A formal employee recognition policy and program are also

introduced in most of the banks. This policy provides the

required tools to reward and recognize employees who

demonstrate positive behaviour through their performance

towards achieving goals or enhancing the image of their

bank. The reward and recognition encompasses non-monetary as

well as monetary awards. It ranges from a simple pat-on-the-

back to giving substantial monetary awards, which can be

given to individual employees as well as to a group or a

team.

Employee Recognition Awards

Most of the banks conduct workshops to create awareness

about Employee Recognition Program for all employees of the

banks. Safeguards against the discretionary powers exercised

to recognize a few favourites or immediate personal staff of

the Heads of Departments have to be built in. The need to

align this reward and recognition policy with the core

values of the Bank has also been identified to promote

greater employee interest towards adoption of Core Values.

2.3.5Promotion Policy

A merit-based and competency driven promotion policy, in

line with introduction of modern management concepts is also

introduced in banks. Under the new promotion policy a merit

list of employees is prepared, based on evaluation of their

performance in the last three years, improvement in

qualification, marks obtained in training and seniority.

Employees short-listed on the basis of this initial merit

list are evaluated by a promotion committee through

competency-based interviews for their suitability to perform

in higher jobs. All promotions in this fiscal year took

place under the new merit based promotion policy. Employee Recognition Awards

Level 1- Individual Contribution Award

(Thank you note, No cash Award)

Level 2-Departmental Commitment Award

(Cash Award)

Level 3-Organizational Competence Award

(Cash Award)

Level 4- Excellence Award

(Cash Award)

2.3.6 Succession Planning

Implementation of interdepartmental rotation of officers is

also intensified to:

Enhance development of broad based skills set.

Improve employees’ career advancement opportunities.

Provide flexibility for the organization to address

succession demands in an effective manner.

Officers who had completed 3 years of service in their

present grade or department will be rotated to other

departments. Managerial jobs are now internally posted and

options are sought. The applicants are then screened,

interviewed and short-listed for the jobs based on their

competencies and future aspirations.

3. Research Process

3.1 Broad Problem Area

The broad problem area refers to the entire situation

where one sees a possible need for research and problem

solving. There are some issues may be existing in

following situations like as follows:

1. ObservationBroad area of

research interest

identified

1. ObservationBroad area of

research interest

identified

2. Preliminary Data GatheringInterviewingLiterature survey

2. Preliminary Data GatheringInterviewingLiterature survey

3. Problem Definition

Research problem

delineated

3. Problem Definition

Research problem

delineated

7. Data Collection

Analysis, and Interpretation

7. Data Collection

Analysis, and Interpretation

8. DeductionHypotheses substantiated?Research question answered?

8. DeductionHypotheses substantiated?Research question answered?

4. Theoretical Framework

VariablesClearly

Identifiedand

Labelled

4. Theoretical Framework

VariablesClearly

Identifiedand

Labelled

5.

Generation of

Hypothesis

5.

Generation of

Hypothesis

6.Scienti

ficResear

chDesign

6.Scienti

ficResear

chDesign

9. Report Writing9. Report

Writing

11. Decision

Making

11. Decision

Making

10. ReportPresentation

10. ReportPresentation

1. Problems currently existing in an organizational

setting that need to be solved

2. Areas that a manager believes need to be improved in

the organization

3. A conceptual or theoretical issue that need to be

tightened up for the basic researcher to understand

certain phenomena

4. Some research questions that a basic researcher

wants to answer empirically

3.1.1 Statement of broad Problem Area

“How our (managers) problem solving and decision-making

processes are based on our personal mental models (also

called theories-in-use)? What is the real world implication

of motivational theories as it is often said that that's

fine in theory, but it doesn't work in the real world”

This research will focus on 3rd and 4th points because its

main objective is to see the “Real world implication of

motivational theories in the banking sector of Pakistan”.

These two points will correctly and strongly present the

broad problem area for which this research activity is

conducted.

3.2 Preliminary Data Gathering

3.2.1 Literature Survey

Literature survey is the documentation of a comprehensive

review of the published and unpublished work from the

secondary source of data in the areas of specific interest

to the researcher.

A large pool of data was searched out from internet which

contributed a lot to this research activity by giving a

solid framework regarding motivation, motivational theories

and their importance.1

3.2.2 Questionnaire

A questionnaire was also distributed at initial level to

develop a better understanding of this topic. Copies

distributed of this general questionnaire were 75.2

3.3 Theoretical Framework

A theoretical framework is conceptual model of how one

theorizes or makes logical sense of the relationship among

the several factors that have been identified as important

to the problem. This theory flows logically from

documentation of previous research in the problem area. Form

the theoretical framework testable hypothesis can be

developed to examine whether the theory formulated is valid

or not. The hypothesized relationship can be tested through

appropriate statistical analysis. Thus the entire research

based on the basis of the theoretical framework.

There are four types of variables involved in the

theoretical framework they can be as follow:

1. Dependent variable

2. Independent Variable

3. Moderating Variable

4. Intervening Variable

1 Literature review has already been presented in section 2.2 Questionnaire I is attached in appendix.

Dependent Variable

A variable of primary interest to the researcher is known as

“Dependent Variable”.

Independent Variable

An independent variable is one that influences the dependent

variable in either positive or negative way.

IV DV

Moderating Variable

The moderating variable is one that has a strong contingent

effect on the independent- dependent variable relationship.

Achievement of organizational

Goals

Individual Efforts

Intervening variable

An intervening is one that surfaces between the time the

independent variables start operating to influence the

dependent variable and the time their impact is felt.

Achievement of organizational

Goals

Individual Efforts

Organizational

Rewards

IVDV

MV

Explanation

It is clear from above figure that achievement of

organizational goals is dependant on the efforts put by

individuals. It means that Individual efforts are

independent variable. But the factor, which will motivate

employees to put maximum of their efforts, is ultimate

organizational rewards, which they will be having after the

achievement of organizational goals so Organizational

Rewards are moderating variables. This may be the case. But

here we can introduce another variable, named as intervening

variable, that surfaces between the time the independent

variables start operating to influence the dependent

variable and the time their impact is felt.

Individual Efforts

Organizational

Rewards

IndependentVariable

DependantVariable

Moderating Variable

JobSatisfaction

Achievement of organizational

Goals

InterveningVariable

That variable is job satisfaction, which individuals will be

having, and it will then positively affect their

performances to achieve organizational goals.

3.4 Hypothesis Development

Once we have identified the Important variables in a

situation and established the relationships among them

through logical reasoning in the theoretical framework we

are in a position to test whether the relationship that have

been theorized do in fact hold true. Formulating such

testable statement is called “Hypothesis Development”.

Hypothesis

Null Hypothesis

“Motivational Theories do have real world implication in

banking sector of Pakistan”.

Alternate Hypothesis

“Motivational Theories do not have real world implication in

banking sector of Pakistan”.

4. Research Design

Explanation

4.1 Purpose of the study

Hypothesis testing offers an enhanced understanding of the

relationship that exists among variables. It can also

establish cause and effect relationship.

In this research topic of “Real world implication of

motivational theories in banking sector of Pakistan”, there

are certain variables upon which the motivational level

depends.

4.2 Type of investigation

The study in which the researcher wants to delineate the

important variables associated with the problems is called

Correlational study.

In this research topic of Motivational theories in banking

sector, those factors or variables will be found out that

contribute to motivational level of employees. To study the

real world implication on motivational theories, we must be

aware of the related factors, which are, ultimately, related

with motivation. We are not interested in studying the cause

and effect relationship.

4.3 Extent of researcher interference

The level of interference of researcher, while conducting

the research on THIS area of interest, is minimal because we

are interested in knowing the relationship between different

variables. In order to know the relationship, there is need

to conduct a very few interviews and to distribute some

questionnaire to gather necessary data. So the level of

interference is minimal.

4.4 Study setting

As this research topic or area is based on correlation

investigation so this study setting is of non-contrived

nature. It means that main focus was to conduct research

activity in the natural environment where work proceeds

normally.

4.5 Unit of analysis

As well as this research area is concerned, the basic unit

of analysis working at different level in different banks of

Pakistan. But to study the overall implication of this

research topic, these individuals will be converted into

focus groups. So, at initial level, basically, unit of

analysis was individuals but later on it was converted into

groups as per the requirement of this research topic.

4.6 Sampling

A sample of 75 questionnaires was distributed at initial

level to have a clear picture of employees’ motivation.

After finding this research activity worthwhile, further 50

questionnaires specifically related with this research issue

were distributed among employees working at different level

in different banks. These banks are located in Wah Cantt and

the twin cities of Islamabad and Rawalpindi. The data for

this study was collected through self-administered

questionnaires distributed by researchers. A series of

interview with some of the managers of these financial

institutions’ managers was also conducted.

Technique

In order to collect primary and secondary data, interview

and questionnaire technique was used in order to meet

research objective. Round about 75 at initial level and 50

questionnaires were distributed to support hypothesis of

this research study.

4.7 Operational Definition

Looking at the behavioural dimensions, facets or

properties denoted by the concept does operational zing or

operationally defining a concept to render it measurable.

These are then translated into observable and measurable

elements so as to develop an index of measurement of the

concept.

From Individuals’ Perspective

Achievement Motivation

D1 D2 D3 D4

E E

E EE E

Operational Definition Of Motivational Factors For

Individuals:

Driven by Work Impatience

withIneffectiven

Seek moderate challenges

Seek feedback

Reluctant to take time off for anything

Asks for feed back of how the job has been

done

Constantly Working

Opts to do a challenging

rather than a routine job

Is impatient for immediate

feedback

Does not like to work with

slow or inefficient

Motivation

D1 D2 D3 D4

E

E

E EE E

5. Data Collection methods

5.1 Primary & secondary data collection

5.1.1 Primary data

Job satisfaction Rewards

Working conditions

Opportunity To grow

Extrinsic motivation Career

development

Intrinsic motivatio

n

Ergonomics

Training

Program

Pay

Promotion

Achievement etc.

Organizational culture

E

Primary data was gained through direct interviews and

questionnaire from respondents. The general contents of the

questionnaire were:

1. Respondent’s basic information

2. Variables regarding important factors which become

motivator for respondents

3. To identify the needs of the employees from their

respective organizations

4. To study the implication of motivational theories

5. To prove that these theories-in-use drive our

managerial decision-making and problem solving, and

they are the basis of the development of managers’

style of leadership

A. The Survey

Sampling was done by mean of questionnaires3 distributed

to employees working on different level in different

banks. Focus group was all employees ranging from lower

level to upper level.

B. Interviews

Subjects were selected at random from each area for more

detailed interviews, in order to gain a deeper

understanding that will assist in the interpretation of

the survey. Furthermore, bank officials and departments

were interviewed. The first interview was conducted of

3 Questionnaire II is attached in appendix.

Mr. Muhammad Arshad, Branch Manager, Bank Alfalah, Sadar

Branch. Mr. Zulfiqar Ali, Branch Manager of Union Bank

was also interviewed.

5.1.2 Secondary Data

Secondary data means the data, which is readily

available. In this research report, for initial level

data was collected through various secondary sources e.g.

articles, web sites and research papers.

5.2 Nature and forms of results

The result of the research will be in the form of the

interpretation of questionnaires and interviews in

relation with the theories in discussion so that one

could be able to have a clear view of what practices are

being implemented or how these theories are implemented

in banking sector of Pakistan.

5.3 Data Analysis

5.3.1 Maslow Hierarchy Theory

Responses which we have obtained through our survey

regarding this theory was that people working on different

level lie at different level of this hierarchy i.e. some of

them were on safety needs level and many of them were on

esteem level(major responses). And a very few people have

indicated that they are on self-actualization level.

Employees who were at lower end of the middle level

indicated that they lie on safety level. And the individuals

employed at upper end of the middle level indicated that

they lie on Social belongingness.

Figure 1

Practical Implication

If we see the practical implication of Maslow Hierarchy

Theory on the banking sector then one thing is very much

clear that people at lower level of management lie on lower

physiological needs and vice versa. But the point of

discussion here is very interesting. When we compiled our

results then we came to know that, to some extent, responses

given by the employees working at same level but employed in

different banks were different. E.g. the cashiers of two

different banks presented interestingly very different

results- in one bank cashiers were on level one while in

other the cashiers were of the view that they consider

themselves, by being on this designation, at social

belongingness level.

5.3.2 Two Factor Theory

A small study was also conducted via questionnaires to check

the ratio of hygiene and motivational factors in regard to

there importance for employees. The purpose behind this was

to analyze the two-factor theory proposed by Fredrick

Herzberg. He was of the view that Intrinsic factors are

related with job satisfaction whereas dissatisfaction is

caused by Extrinsic factors. To study this theory, we gave

them some options, consisting some of the intrinsic and

extrinsic factors, and asked them to indicate their level of

agreement with each of these factors from scale 1-5 in terms

of those factors importance.

Analysis

PART-I

After collecting information regarding this theory, rather

than evaluating every respondent’s response separately,

responses were analyzed in the form of group. Final group

figures were multiplied with their respective numbers

assigned by respondents and at the end, when the intrinsic

and extrinsic factors were added up separately, then the

results obtained were like this.

Motivational Factors=642

Hygiene Factors =539

Practical Implication

If we see the practical implication of this study, then it

is clear that there are certain factors which do affect an

individual performance and lead them towards satisfaction or

dissatisfaction. But, for employee, motivation factors are

much more important than hygiene factors (as presented by

Fredrick Herzberg).

PART-II

Herzberg has also presented a view that was totally opposite

to traditional view i.e. satisfaction leads to

dissatisfaction. Herzberg disagrees with this. Instead this,

he says that opposite of satisfaction is no satisfaction and

opposite of dissatisfaction is no dissatisfaction.

Equation #1Equation #1

No Satisfaction ________________ Satisfaction

Motivators

It says that if people are not satisfied; they search for

satisfaction, if motivation factors are there.

Equation#2Equation#2

Dissatisfaction ________________No Dissatisfaction

Hygiene Factors

It says that hygiene factors lead employees towards

dissatisfaction. In this case, employees leave things as

they are. They do not search for satisfaction.

Practical Implication

Employees were also questioned that what they will do if

they are dissatisfied with their work or job or any other

working condition. The response receive was quiet

interesting. Majority of the respondents have given the same

answer i.e. either they will try to find out the best

solution to go through it or they will seek opportunities to

go through it.

This is totally different to Herzberg view that says that in

presence of hygiene factors, dissatisfaction lead towards no

dissatisfaction, so we can say on the basis of our study

that dissatisfaction leads towards satisfaction that is a

traditional view.

These responses can also be presented in the form of job

dissatisfaction matrix i.e.

According to this matrix if we see that where respondents

lie, then majority of them i.e. 38% lies at Voice. Because

these are people who try to find out solutions by actively

and constructively attempting to improve conditions. They

might be attempting and suggesting improvements, discussing

problems with supervisors and some form of union activity.

The other major portion of respondent i.e. 35% lies at

Loyalty as they will be seeking opportunities to go through

it. 15% of the respondents lie at Exit level as they will

leave the organization. Remaining 12% of the respondents lie

at Neglect level as they will do nothing to come out of this

situation.

Results

Part-I is particularly similar to that of the theory i.e.

motivation factors are more important for employees and

hygiene factors will affect their work.

Part-II results’ obtained are different from book, according

to our study.

Dissatisfaction-----------------------Satisfaction

Whereas Two factor theory says

Dissatisfaction------------------No Dissatisfaction

5.3.3 Cognitive Evaluation Theory

This theory tells that how employees are going to be

motivated. Motivational factors for every individual differ.

According to Cognitive Evaluation Theory, every individual

employee draws a line between factors which are motivational

for him or which are not. Except these motivational factors,

he considers all other motivational factor negative.

Analysis

When questions, regarding this theory, were asked from

employees then responses received were like this;

Pay2%

Rewards 11%

Recognition25%

Achievement9%

Promotion33%

Responsibility20%

It’s been clear from above figure that maximum percentage is

of factor promotion which is extrinsic factors. But on the

other side, for some respondents’ responsibility and

achievement factors are very important intrinsic factors.

These are the factors that are attributed by individuals to

themselves.

To get a clear result about intrinsic and extrinsic factor,

we have merged the statistics obtained under two main heads.

Overall View

54%

46%

Intrinsic Factors

Extrinsic Factors

Figure 3(ii)

As it’s clear from above figure, that

Maximum percentage is of Intrinsic factors.

Maximum percentage of intrinsic factors represents that

for maximum number of employees’ intrinsic factors are

motivational factors rather than extrinsic factors.

Practical Implication

From this study it’s been proved that motivated factors do

vary from individual to individual. There are certain

intrinsic and extrinsic factors that work differently for

different individuals. Cognitive theory says that when

individuals, who can be intrinsically motivated, are

extrinsically rewarded then intrinsic rewards, which are

derived from individual doing what they like, are reduced.

But what is found is that people, who are intrinsically

rewarded, receive some part of extrinsic rewards, and then

their desire to achieve intrinsic rewards will not reduce.

The fact is that if someone has a greater sense of

achievement, then he cannot be satisfied unless or until he

has accomplished it.

Results

The theory applies on our area of research, the banking

sector, in perspective of intrinsic and extrinsic rewards.

But according to our study, the point of difference is that

if an individual gets reward (extrinsic or intrinsic) other

than what he wants, it will not reduce his actual intrinsic

or extrinsic motivational factor.

5.3.4 Goal Setting Theory

This theory says that following factors, while setting

goals, affect the performance of any individual.

Specificity of goals

Feedback regarding performance

Participation in goal setting

Self efficacy

Analysis

When we have studied the behaviour of the people/employees

then we came to know that many of them consider

participation in goal setting most important and the others

specificity of goals and so. But, the most often obtained

result was that maximum number of employees were of the view

that all of these factors are very important for them and

will lead them towards better performance.

The point of importance is that the employees who were at

higher management level as compare to others consider

participation in goal setting most important. But majority

of people on the same level and lower level employees

consider all of those factors important. Besides this

finding, we have also found that maximum number of employees

were of the view that if goals are specifically communicated

to them, then it would lead them towards better

productivity. Let us have a look on the following figure:

Specificity of Goals

90%

10% 0%

YesSomehow No

As its clear from the above figure that maximum number of

employees was of the opinion that they would be able to

perform in the more productive way if goals are specifically

communicated to them.

Results

This theory also applies on our area of research. In

nutshell, employees consider all factors of Goal-setting

Theory important. And if goals were specifically

communicated to them then it would lead them towards better

performance.

5.3.5 Expectancy Theory

Expectancy theory, proposed by Victor Vroom, says that if an

individual is not getting what he expects from organization

then it leads him towards demotivation. In simple words, if

an individual is not getting rewards according to his

expectations, then it affects his productivity.

Figure 5

Analysis and Practical Implementation

When employees were asked that if they are not getting

rewards then would it affect their performance, then we came

to know that most of the employees were of the view that

Yes! If they are not getting reward as per their

expectation, then it will affect their performance

77%

23% 0%

Yes

Somehow

No

As it is clear from the above figure that 77% employees

agreed that if they are not getting rewards then it would

affect their performance. Remaining 23% were also somehow

and other agreed with this statement.

If we relate it with Figure5 then this is obvious that an

individual puts his maximum efforts to perform better. And

against it he expects rewards. These rewards are

motivational factors for individuals and ultimately if they

Individual Effort

Organizational Rewards

Individual Performance

Personal Goals

are satisfied then the similar goals become their personal

goals.

Results

Expectancy theory applies on our research area because

employees put their efforts to perform better, so that they

could get what they expect from their organization.

COMPARATIVE STATEMENTS:

Q #1 How long you have worked at this organization?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

Alfalah Bank

Less than 6 months -- -- -- -- --6 months to 1 year -- -- -- 11.111

%--

1 to 2 years 50% 83.333%

75% 88.889%

75% 55.55%

3 to 5 years 50% 16.666%

25% -- 25% 33.33%

More than 5 years -- -- -- -- -- 11.11%

Q #2 overall how satisfied you are with your overall position?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

Alfalah Bank

Dissatisfied -- -- -- -- --Somewhat dissatisfied

-- -- -- -- --

Neutral 50% 50% 25% 22.222% 25%Satisfied 25% 33.333

%50% 66.667% 25% 77.78%

Very satisfied 25% 16.666%

25% 11.111% 50% 22.22%

Q #3 Your organization clearly communicates its goals and strategies to you?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

Strongly disagree -- -- -- -- --Somewhat disagree

-- -- -- -- 75%

Neutral 25% 50% -- 33.333%

25%

Somewhat agree 50% 33.333%

75% 55.556%

-- 44.44%

Strongly agree 25% 16.666%

25% 11.111%

-- 55.56%

Q #4 If goals are specifically communicated to you, would it lead you towards better productivity?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

Yes 100% 100% 75% 100% 100% 66.67%Somehow -- -- 25% -- -- 33.33%No -- -- -- -- --

Q #5 What factors will affect your performance while you have to work on your targeted goals?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

Specific goals 100% -- -- -- -- 22.22%

Your participation in goal setting on which you have to work

-- 66.666%

-- -- -- 11.11%

Feedback regarding your performance

-- -- -- -- 25% 11.11%

Your belief in your abilities

-- -- -- -- 25% 11.11%

All of the above -- 33.333%

100% 100% 50% 44.44%

Q #6 How flexible this organization is with respect to your family responsibilities or in case of any emergency?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

Alfalah Bank

Very inflexible -- 16.666%

50% -- --

Somewhat inflexible

-- -- -- -- --

Neutral 25% 16.666%

50% 11.111%

25%

Somewhat flexible 50% 50% -- 88.889%

25% 44.44%

Very flexible 25% 16.666%

-- -- 50% 55.55%

Q #7 If you are dissatisfied with your work or working conditions due to any related reason. What will you do?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

Leave it as it is -- -- -- -- 25%Wait for conditions to improve

-- -- -- -- 25% 11.11%

Seek opportunities to go through it

25% 50% 50% 77.778%

--

Try to find out solutions

-- 16.66%

50% 22.222%

50% 88.89%

Leave the organization 75% 33.33 -- -- --

%

Q #8 Do you think that your satisfaction or dissatisfaction can affect your productivity?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

Yes 100%

100%

100% 77.778%

100% 77.77%

Somewhat

-- -- -- 22.222%

-- 33.33%

No -- -- -- -- --

Q #9 If you are not getting reward, would it affect your performance?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

Yes 100%

50% 100% 100% 75% 66.66%

Somewhat

-- 50% -- -- 25% 33.34%

No -- -- -- -- --

Q #10 What factors will affect your performance while working on any particular task?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

Pay -- -- -- -- 25%Rewards -- 16.66% -- -- --Recognition -- 16.66% -- -- 50%Achievement -- -- -- -- -- 33.34

%Competence -- -- -- -- --Promotion 50% 33.33% 100% 88.889

%25%

Responsibility 50% -- -- 11.111%

-- 66.66%

Q #11 You feel comfortable while working?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

On individual basis

25% -- 25% -- -- 100%

In Teams 75% 100% 75% 100% 100%

Q #12 Do you think that employee involvement in decision making, regarding his/her particular area, is must to achieve the goals efficiently?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

Yes 100%

100% 75% 100% 75%

Some how -- -- 25% -- 25% 77.77%No -- -- -- -- -- 11.11%

Q #13 Please indicate that where do you place yourself by being on this job?

ABL UnionBank

FaysalBank

PICIC Std.Ch.’d Bank

AlfalahBank

I’m comfortable enough now

-- -- 25% 22.22% 50% 11.11%

I feel safe enough -- 33.33% 25% 55.556% --I’m part of a group

50% 16.66% -- 22.222% 50%

I’m known 50% 33.33% 25% -- -- 77.77%

I’m me -- 16.66% 255 -- -- 11.11%

6. Limitations of the Study

This study is limited by number of factors.

The sample population is limited in terms of size and

composition. The sample was drawn from Wah Cantt and

Islamabad and did not include branches from other

states.

The data were collected at a single point in time

providing insight through a snap shot view but not an

ongoing picture.

The study was limited to bank employees, managers and

bank experts only. Perception of the individuals or

group outside the banking sector in the wider community

were not investigated

7. Conclusion

The review of existing literature on motivation related

issues identifies the absence of universal techniques and

approaches in measuring motivation level within an

organization, in particular within banking industry

environment.

Corporate governance has become a topical issue at the

moment. The reason behind this concept gaining increasing

importance in the corporate world is that most of the

organizations, especially in third world context like ours,

are rife with mismanagement, lack of corporate ethics and

professionalism. The lack of corporate governance has become

the root cause for the failure of most of the organizations

and hence, it is high time that all the organizations

aspiring for success and survival practice good corporate

governance and accord top priority to this.

The value of the Human capital in such organizations is not

recognized at all. This is indeed a strategic flaw and major

bottleneck to implement the very notion of good corporate

governance. As an organization is made up mostly of

employees one cannot and should not undermine and

underestimate their power and importance.

One of the most important concerns of a manager should be to

motivate people to make their optimum contribution to the

achievement of organizational goals. It, therefore, becomes

important for him to understand what motivates people to

behave as they do. Since the needs of the employees and the

organization are not always the same, the manager can better

integrate these two sets of needs by gaining an insight into

the needs of his employees and then channelise them in the

direction of organizational needs.

Let’s go back to the late 1970s. An article "Mastering

Management in Creative Industries" was published in Business

Week, According to managers in the creative industries,

motivating their employees is a more difficult task than in

other types of industries. They argue that when you are in

an industry where artistic ability and not an established

formula for success reigns, then greater attention must be

given to motivate the artists to give their ability and

opinions.

As far as, the Real world implementation of Motivational

theories in banking sector of Pakistan is concerned then

its’ been proved that these theories do have real world

implementation. Though they are in reality not applied by

managers in their actual form but results have significantly

proved this fact that in one way or other, all these

theories contribute to the motivational level of employees.

8. Suggestions

Motivation is must for employees so that they can perform

work in the more productive manner. Motivated person wants

to do work and performs tasks in the more productive way as

compare to satisfied worker. If one is motivated for an

organization, he/she will give benefit to the organization

with his/her full potential.

This research paper has covered in greater detail the

banking sector and the level of motivation of its employees,

plus it has also analyzed that why employees are satisfied

and why they are not?

To keep the employees motivated, some suggestions are

presented below:

Maximum employee involvement in decision-making

Motivate the employees as per their requirements;

see where they exist in Maslow Hierarchy. If you

will not do so, employees will not be able to move

ahead.

Communicate goals because if goals are

communicated to employees, then they will be more

motivated because they will be aware that on what

basis they will be evaluated.

Clear, worthwhile, challenging goals. The need for

clarity is self-evident. While "worthwhile" and

"challenging" support each other, they aren’t the

same. Performers can find work worthwhile and

still be bored by it, or be challenged by work.

The more those goals embody all three of these

attributes, the greater the chance that the

performer will be motivated to accomplish them.

Practical standards and useful feedback. Most

people are far more likely to work at meeting

goals when they are confident they know just what

they need to accomplish and how well they are

doing along the way.

Design separate motivational job for each

individual

Practice Ergonomics i.e.; analyze that how much a

person is at ease by performing a task

Employees must be individually recognized.

As per analysis, maximum number of employees was

somewhat dissatisfied with the opportunity for

their career advancement. So career development

programs must be there.

Getting higher performance through pay alone is

expensive – and it often doesn’t work. But pay

does matter. Most performers have a good sense of

The proper balance between the effort they expend

and the money they earn. They simply will not put

in more effort than they believe their pay

deserves. Money acts as a powerful motivator not

only because of its ability to satisfy

physiological need, but also because of its

ability to satisfy higher level needs such as need

for status, power, recognition, achievement, etc.

Money is often considered to be a measure of

success.

Performance improves when it is recognized – as

long as the recognition fits in with the

employee’s perception of his performance.

Unfortunately, most formal "recognition"

programmes don’t fulfill this function well.

Reward Chart

They must implement the following Reward chart

REWARDS

Intrinsic Extrinsic

Financial

Participate in Decision-making

Greater job freedom

More Responsibility

Interesting Job

Opportunity for Career advancement

Profit Sharing

Variable pay Plan

Incentive Plan

Preferred work assignments

Impressive Titles

Preferred office furnishing

Performance Dimensions

This figure shows that there is an inter-link between

Ability, Opportunity and Motivation and all these dimension

lead towards better Performance. There is a direct

relationship between Ability and Performance and for this

Motivation and Opportunity are must. The reason is if you

have Ability and Opportunity then it means that

Opportunity=Strength

Ability

Motivation

Opportunity

PERFORMANCE

It will ultimately increase your motivational level so

overall performance will increase. It represent the fact

that to design the motivational jobs for employees, such

tasks should be assigned to them which match with their

abilities and which ultimately lead them towards better

performance because of increased motivation.

For designing the motivational jobs the following model

should be taken into consideration

The Job Characteristics Model

The following models best describes about the basic

characteristics of a job and their relatedness to personal

and work outcomes. We can have a clear view that how an

individual can be motivated and perform better in relation

to these five basic job characteristics.

In the above model, first of all the core dimensions are

explained. Then it’s being told that how these dimensions

are related with an individuals’ psychological state and

finally how they lead towards personal and work outcomes.

The first three dimensions create meaningful work. If

these three dimensions are present in the job then

employee will consider the job valuable, important and

worthwhile.

Presence of Autonomy indicates that the employee will

feel responsibility for the results.

Feedback means that employee will know that how

effectively he is performing?

From Motivational Perspective

Internal rewards are obtained by individuals when they

Learn knowledge of results

Personally experience responsibility

Experience meaningfulness

The more these three psychological states are there in

a job the greater will be employee motivation,

performance and satisfaction and the lower the

absenteeism and the likelihood of leaving the

organization.

Appendices

Appendix-I

Q. Please place the number on a scale of 1____5 on the line before each factor: for example

Very Important Somewhat Important Not Important5 4 3 2 1

An interesting Job □ □ □ □ □A Good Boss □ □ □ □ □Recognition and appreciation for advancement □ □ □ □ □The opportunity for advancement □ □ □ □ □A prestigious or status job □ □ □ □ □Job responsibility □ □ □ □ □Good working conditions □ □ □ □ □Good company rules, regulations and procedures □ □ □ □ □A job you can do well and succeed it □ □ □ □ □Job security □ □ □ □ □Opportunity to grow through learning new things

□ □ □ □ □

Q. Are you satisfied with your management regarding following aspects?

StronglyDisagree   

Disagree Neutral     Agree StronglyAgree

Gives fair and equal treatment

□ □ □ □ □Is available to discuss job-related issues

□ □ □ □ □

Welcome suggestions and encourages feedback

□ □ □ □ □

Maintain consistent policies& procedures

□ □ □ □ □

Provides recognition for achievement

□ □ □ □ □

Q. Please indicate your level of agreement with each of the following statements:

Very   satisfied   

Somewhat   satisfied   

Neutral     Somewhat  

dissatisfied

Very    dissatisfied

Salary □ □ □ □ □Benefits □ □ □ □ □Frequency and amount of bonuses □ □ □ □ □Workload □ □ □ □ □Flexibility of work hours □ □ □ □ □Physical working environment □ □ □ □ □Opportunity for career advancement □ □ □ □ □Opportunity to use new technologies □ □ □ □ □Recognition received from your supervisor □ □ □ □ □Your relationship with your co-workers

□ □ □ □ □Your overall satisfaction with your □ □ □ □ □

company

Job Security □ □ □ □ □Appendix-II

Ob jective: We have been assigned a project in which we have to study the

motivational level of employees, while being on their jobs, and that what they feel

about their jobs. What are their expectations from their organizations? Our main

focus is on Banking Sector. The basic motive for conducting this study is to see

whether Motivational Theories are applicable in real life or not?

Your’ Name: _____________________________________________

Your’ Bank:_______________________________________________

Your’ Designation: _________________________________________

Responsibilities: __________________________________________

Q. How long you have worked at this organization?

□ Less than 6 months

□ 6 months to 1 year

□ 1 to 2 years

□ 3 to 5 years

□ More than 5 years

Q. Overall how satisfied you are with your overall position?

□ Dissatisfied

□ Somewhat dissatisfied

□ Neutral

□ Satisfied

□ Very satisfied

Q. Your organization clearly communicates its goals and strategies to you?

□ Strongly disagree

□ Somewhat disagree

□ Neutral

□ Somewhat agree

□ Strongly agree

Q. If goals are specifically communicated to you, would it lead you towards better productivity?

□ Yes

□ Somehow

□ No

Q. What factors will affect your performance while you have to work on your targeted goals?

□ Specific goals

□ Your participation in goal setting on which you have to work

□ Feedback regarding your performance

□ Your belief in your abilities

□ All of the above

Q. How flexible this organization is with respect to your family responsibilities or in case of any emergency?

□ Very inflexible

□ Somewhat inflexible

□ Neutral

□ Somewhat flexible

□ Very flexible

Q. If you are dissatisfied with your work or working conditions due to any related reason. What will you do?

□ Leave it as it is

□ Wait for conditions to improve

□ Seek opportunities to go through it

□ Try to find out solutions

□ Leave the organization

Q. Do you think that your satisfaction or dissatisfaction can affect your productivity?

□ Yes

□ Somewhat

□ No

Q. If you are not getting reward, would it affect your performance?

□ Yes

□ Some how

□ No

Q. What factors will affect your performance while working on any particular task?

□ Pay

□ Rewards

□ Recognition

□ Achievement

□ Competence

□ Promotion

□ Responsibility

Q. You feel comfortable while working;

□ On individual basis

□ In Teams

Q. Do you think that employee involvement in decision making, regarding his/her particular area, is must to achieve the goals efficiently?

□ Yes

□ Some how

□ No

Q. Please indicate that where do you place yourself by being on this job?