Chapter 1

Introduction

1.1 Background of the Study

The public enterprises have made significant contribution in the development of the

enterprise in private sector or public sector, its success depends upon the good human

resource planning. The study mainly centralized on the employee motivation practice in the

company.

Management is supposed to get the work done by the subordinate towards the attainment of

the common goals. This is the most important function of management to inspire and

stimulate the personal to do work for the accomplishment of the organizational objectives in

other words it is motivation of the people. A successful management knows that the issue of

direction however will conceive does not mean that may will fellow in its true spirit. He

should be in trust of the people to do the work for the achievement of established goals. He

should also know that motivation is an unending process. The management has to provide for

their employee constantly.

The purpose of this report is to provide information on methods and practices to evaluate the

employee motivation while recognizing that all element of the suggested principles.

Employee motivation may not always implement effectively. Organizations that monitor

effectiveness and strive to improve weakness are consistently the best performer.

Human motives are based on certain needs that may be primary or secondary need and may

vary in their industry according to situation and time. The management must ready those

needs try to understand the intensity and the responsibility to satisfy there in order to work.

Motivation means that process which creates an inspiration in a person. Motivation is derived

from the word ‘motive’ which means the latest power in a person which impels him to do a

work.

Motivation is one of the most important aspects of human resource management performance

results from the interaction of physical and human resource. The management can attain

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control over them but in the case of physical and financial factors, management can

accurately predict the input-output relationship and can vary the factors it choose in order to

achieve desired rate of production. In dealing with the employees, however, an intangible

factors of will or freedom of choice is introduced and workers can increase or decrease their

productivity as they choose. Thus human quality gives rise to the need for productive

motives.

Motivation is the process of steering a person’s inner drives and actions towards certain goals

and committing his energies to achieve these goals. It involve a chain reaction starting with

felt needs, resulting in motives which give rise to tension which census action towards goals.

It is the process of stimulating people to strive willingly towards the achievement of

organizational goals. Motivation may be defined as the work a manager performs in an order

to Induced subordinates to act on the desired manner by satisfying their needs and desires.

Thus motivations is concerned with how behaviour gets started, is energized, sustained and

directed.

This research was conducted to study the employee motivation and how it affects on the work

of employees. The research was conducted in, Rastriya Banijya Bank ltd.

1.2 Introduction of the Company

Rastriya Banijya Bank is fully government owned, and the largest commercial bank in Nepal.

RBB was established on January 23, 1966 (2022 Magh 10 BS) under the RBB Act. RBB

provides various banking services to a wide range of customers including banks, insurance

companies, industrial trading houses, airlines, hotels, and many other sectors. RBB has

Nepal's most extensive banking network with 160 branches.

RBB Ltd. established on January 23, 1966. A synonymous of stable and people's bank in

Nepal. It is one of the pioneer Bank in the country with the history of nearly a half century.

Earlier constituted under RBB act 2021 with the full ownership of the government of Nepal,

the Bank has been running under Bank and Financial Institute Act ( BAFIA ) and Company

Act (CA) 2063 at present. The Bank licensed by NRB as a 'A' class commercial Bank of the

country, has grown up as an indispensable component of the Nepalese economy.

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Rastriya Banijya Bank has made glorious history of contributing for the monetization of the

economy, eliminating dual currency in the market, initiating preliminary financial literacy,

help flourish industrial, commercial and financial sector of the country has now emerged as a

modern and strong financial institute of the country. The Bank with 2600 hands has expanded

its wings in the most part of the country through multiple distribution outlets of 160 branches,

17 counters, 28 branch less banking (BLB) and 80 ATMs. The Bank with the highest public

confidence reflected in the highest deposit base and growing demand for branch

establishment in the various parts has stood as a pyramid in the financial arena of the country.

The Bank with as many as 1.7 millions satisfied customers ranging from poor to elite ones

and millions of indirect ones, has drawn important imprint in the picture of country's

economy through its significant involvement in the best use of its resources to enhance the

production, income and employment opportunities. The Bank is fully committed to contribute

its best for the socio economic development of the country and people in the days to come.

The bank serve their valued customers through e-delivery points like Mobile Banking,

Automated Teller Machines (ATMs) and Online Banking service for corporate and retail

customers.

Department of Rastriya Banijya Bank are Human Resource, LRDR, Treasury, Electronic

Banking, Legal department, Institution and small medium credit department, Infrastructure

consolidatium department, Training department, Finance dept, Inter branch reconciliation

dept, Assets management dept, MIS and Budget dept, Marketing and development dept,

Branch operational dept, Internal audit dept, General service dept, IT dept, Credit Agriculture

and social dept.

Services Currently Offered by Rastriya Banijya Bank Credit- Business loan, Housing Loan,

Vehicle Loan, Educational loan, Apartment Loan, Loan Against Gold, Loan against fixed

deposit, receipt Loan against the government bond,Loan against shares, Loan against the first

class bank guarantee, Rastra Sewak, Loan ,Teachers Loan, Personal, Loan Agricultural Loan.

Deposit - Current Account, Saving account, Fixed Deposit, Karma yogi Bachat Khata, Maha

laxmi Bachat Khata, Chhuna muna Bachat Khata, Sikshak Bachat Khata.

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Table 1: The Board of Directors

Mr. Dr. Rewat Bahadur Karki Chairperson

Mr. Dilli Prasad Shiwakoti Director

Mr. Dr .Jitendra Prasad Upadhya Director

Mr. Guamemdra Raj Koirala Director

Mr. Batuknath Dhakal Director

Mr. Hari Prasad Munakami Director

Ms. Shiva Devi Kafle Director

Mr. Krishna Prasad.Sharma CEO

Source: www.rbb.com.np

The board is collectively responsible for the success of the Bank. Directors are responsible

for bringing independent judgment and scrutiny to decisions taken by the Board. In addition

to their statutory duties, the Directors must ensure that the Board focuses effectively on all its

accountabilities. The Board determines the strategic objectives and policies of the Bank to

deliver long-term value, providing overall strategic direction within an appropriate

framework of rewards, incentives and controls.

The board delegates the responsibility for the day- to -day management of the bank to the

chief Executive and Managing Director and he is responsible for ensuring that the business is

operating effectively. The Chief Executive chairs the Central Management Committee, which

supports him in his role.

The Central management Committee is supported by a number of management committees,

including the Market Risk Management Committee, the Operational Risk Management

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committee, the credit risk management committee, the operational risk management

committee, the NPA and the NBA Management Committee.

1.2.1 Banking in Nepal: A history of Banking system in Nepal

In the context of Nepal, it is very difficult to trace the correct chorological history of the

Banking systems in Nepal because there are no sufficient historical records and data about

Banking in Nepal.

Nepal bank Ltd. is the first modern bank of Nepal. It is taken as the milestone of modern

banking of the country. Nepal bank marks the beginning of a new era in the history of the

modern banking in Nepal. This was established in 1937 A.D. Nepal Bank has been

inaugurated by King Tribhuvan Bir Bikram Shah Dev on 30th Kartik 1994 B.S. Nepal bank

was established as a semi government bank with the authorized capital of Rs.10 million and

the paid -up capital of Rs. 892 thousand. Until mid-1940s, only metallic coins were used as

medium of exchange.

So, the Nepal Government (His Majesty Government on that time) felt the need of separate

institution or body to issue national currencies and promote financial organization in the

country. Nepal Bank Ltd. remained the only financial institution of the country until the

foundation of Nepal Rastra Bank is 1956 A.D. Due to the absence of the central bank, Nepal

Bank has to play the role of central bank and operate the function of central bank. Hence, the

Nepal Rastra Bank Act 1955 was formulated, which was approved by Nepal Government

accordingly, the Nepal Rastra Bank was established in 1956 A.D. as the central bank of

Nepal. Nepal Rastra Bank makes various guidelines for the banking sector of the country.

A sound banking system is important for smooth development of banking system. It can play

a key role in the economy. It gathers savings from all over the country and provides liquidity

for industry and trade.

In 1957 A.D. Industrial Development Bank was established to promote the industrialization

in Nepal, which was later converted into Nepal Industrial Development Corporation (NIDC)

in 1959 A.D.

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Rastriya Banijya Bank was established in 1965 A.D. as the second commercial bank of

Nepal. The financial shapes for these two commercial banks have a tremendous impact on the

economy. That is the reason why these banks still exist in spite of their bad position.

As the agriculture is the basic occupation of major Nepalese, the development of this sector

plays in the prime role in the economy. So, separate Agricultural Development Bank was

established in 1968 A.D. This is the first institution in agricultural financing.

For more than two decades, no more banks have been established in the country. After

declaring free economy and privatization policy, the government of Nepal encouraged the

foreign banks for joint venture in Nepal.

Today, the banking sector is more liberalized and modernized and systematic managed. There

are various types of bank working in modern banking system in Nepal. It includes central,

development, commercial, financial, co-operative and Micro Credit (Grameen) banks.

Technology is changing day by day. And changed technology affects the traditional method

of the service of bank.

Banking software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid Card

etc. services are available in banking system in Nepal. It helps both customer and banks to

operate and conduct activities more efficiently and effectively.

For the development of banking system in Nepal, NRB refresh and change in financial sector

policies, regulations and institutional developments in 1980 A.D. Government emphasized

the role of the private sector for the investment in the financial sector. These policies opened

the doors for foreigners to enter into banking sector in Nepal under joint venture.

Some foreign ventures are also established in Nepal such as Nepal Bangladesh Bank,

Standard Chartered Bank, Nepal Arab Bank, State Bank of India, ICICI Bank, Everest Bank,

Himalayan Bank, Bank of Kathmandu, Nepal Indo-Suez Bank and Nepal Sri Lanka Merchant

Bank etc.

The NRB will classify the institutions into “A” “B” “C” “D” groups on the basis of the

minimum paid-up capital and provide the suitable license to the bank or financial institution.

Group ‘A’ is for commercial bank, ‘B’ for the development bank, ‘C’ for the financial

institution and ‘D’ for the Micro Finance Development Banks.

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1.3 Objective of the Company

1.3.1 Strategic objectives

The key elements of overall strategic goal are to build an open and honest corporate culture

and to engage actively on mutual beneficial relationship with all stakeholders to create value

for them. The six key objectives are:

Focus on providing innovative financial services.

Increase in capital base of the Bank by meeting the minimum capital requirement.

Business growth and increase in market share.

Enhance operational efficiency.

Sustainable increase in profits.

Focus on empowerment of deprived class.

1.3.2 Vision and Mission

Vision: "To provide innovative banking services to everyone, everytime and everywhere for

the economic development of the nation".

Mission: "To provide easy and innovative banking products and services for our customers

by implementing one stop service concept from our wide network using our modern

technology qualified human resources in competitive environment. We always look for the

benefit of the local communities supporting entrepreneurship, social responsibility and

economic prosperity of the nation".

1.4 Research Methodology

Research methodology is composed of two words: ‘Research’ and ‘methodology’. Research

is the systematic and organized effort to investigate a specific problem that needs a solution.

This process of investigation involves a series of well thought out activities of gathering,

recording, analyzing, and interpreting the data with the purpose of finding answer to problem.

Thus, the entire process by which we attempt to solve problem is called research, while

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‘methodology’ is the research method used to test different statistical tools in order to make

conclusion. A sound and systematic methodology is required to carry out any study, if it is to

be worthwhile.

Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In research

methodology, we study the various steps that are generally adopted by a researcher, studying

his/her research problem among with the logic behind them.

Research is a systematic method of finding out the solution to a problem whereas research

methodology refers to the various sequential steps to adopt by a researcher in studying a

problem with certain objective in view.

1.4.1 Research Design

Research design is the plan, structure and strategy of investigation conceived so as to obtain

answer to research questions and control variance. It serves as a framework for the study,

guiding the collection and analysis of the data, the research instruments to be utilized and the

sampling plan to be followed. This report is a combination of descriptive as well as

explorative research design.

1.5 Objective of the Study

The basic objective of the study is to analyze the motivation of employee in Rastriya Banijya

Bank Ltd. The following are the main objectives of the study:

General overview of employee motivation in the company.

To analyze the level of job satisfaction.

To analyze the basis of performance evaluation.

1.6 Limitation of the Study

Limitations exist everywhere and this study is also not on exception of it. Following are some

limitations of the study:

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This study has done only for partial fulfilment on MBS, so this is not comprehensive

study.

This study only concerned with one banks not all commercial banks.

This study does not cover the whole staffs.

Due to time and resource constraints detail study and deep research could not be done.

The study covers only few tools and technique.

1.7 Structure of the Report

This study has been organized in five chapters they are Introduction, Work done and Lesson

Learnt, Literature Review, Analysis, Summary, Conclusion and Recommendation,

In the first chapter i.e. Introduction includes the Background of the study, introduction of the

company, History of Banking system in Nepal, objective of the company, Research

Methodology, objective of the study and limitation of the study has also been laid down in

this first chapter.

In the Second chapter i.e. Work done and lesson learnt covers Introduction, work done,

collection of data, Interview and lesson learnt.

In the Third chapter i.e. Literature Review covers introduction, definition of motivation,

Importance of Motivation and theories of motivation has been laid down in this chapter.

In the Fourth chapter i.e. Analysis covers Presentation of data and the analysis of the

presented data have been stated. In this chapter, employee satisfaction, recruitment

procedure, performance evaluation of employee has been explained.

In the Fifth chapter the summary, conclusion and the recommendation has been done.

Bibliography and appendices provides the references information, tabulation and diagrams to

support the study, Bibliography includes information related to annual report, previous thesis

reports, official websites, book and journals.

1.8 Conclusion

This study is about employee motivation in Rastriya Banijya Bank. The introduction

chapter provides information on research background, research aims and research

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objectives. It is necessary to find out what should be done to motivate workers in this

type of company to work with their best effort.

Chapter 2

Work done and Lesson learnt

2.1 Introduction

Our field work is mainly based on the motivation of employee in the Rastriya Banijya Bank.

It was established in 23, January 1966. It is one of the pioneer Bank in the country with the

history of nearly a half century. Earlier constituted under RBB act 2021 with the full

ownership of the government of Nepal, the Bank has been running under Bank and Financial

Institute Act and Company Act 2063 at present. The Bank licensed by NRB as a 'A' class

commercial Bank of the country, has grown up as an indispensable component of the

Nepalese economy. In this bank more than forty two thousand six hundred forty seven staff

were working in which eight hundred twenty were officer, one thousand seven hundred and

one were assistant, one hundred and three were contract staff and three were others. The

employees is fully committed to contribute its best for the socio economic development of the

country and people in the days to come.

2.2 Work done

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The major work done during the field work is to prepare the questionnaire and made

available to employees and they had time to answer the question based on their views at the

company. On the basis of questionnaire result analysis is done.

2.2.1 Collection of Data:

i) Primary data collection Sources:

The primary data are collected personally through questionnaires, direct observations and

interviewing method. This highlights the real function of information about the company.

ii) Secondary data collection Sources:

As a general rule, no research should be conducted without undertaking exploratory

investigations of secondary data. All the relevant literature published and unpublished is

collected and reviewed in order to make the study meaningful and reliable. The data from

various sources are collected and only proper data are arranged and analyzed. So the main

source of data collection is the secondary data collection method. The main sources are:

Annual report of Rastriya Banijya Bank.

Website of Rastriya Banijya Bank.

Different related books, journals, magazines, report published by different research

center.

2.2.2 Interview

The formal Interview of employees is taken on the basis of self- developed questionnaire.

This questionnaire includes different motivation aspect of employee. The questionnaire was

distributed randomly to a sample of employee and take individual interview. Questionnaires

were distributed over 20 employees who are working in various departments, with different

job responsibilities and organization position.

2.3 Lesson learnt

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This field work has been very fruitful, exciting and equally challenging experience for us to

study, analyze and understand the functioning of the organization. The banking sector is the

one of the service sectors which is vital for the uplift of the economy for the country and is

dominant in the present context. The work in the bank is a really challenging one which was

learnt during the Field work at the Rastriya Banijya Bank.

Moreover, willingness to learn and taking initiative is essential to gain comprehensive

knowledge about the work. During this field work gave us an opportunity to learn about the

basic activities of the various departments but also helped to shape personality and character

to greater extend.

Some of the lesson learnt during this field work is stated below:

The corporate working environment which is the basic lesson for the career

development

Importance of being punctual, manage time and being patient.

Bulled up self-confidence and good communication while dealing with any member

of organization.

The importance of time management and the need of the communication skills during

the field work.

Never to enter in any executives room when there is any discussion or conversations

going on with other people.

The difference between the theoretical knowledge in the classroom and the working

environment in the real world and realized everyone in the work place has to be

enthusiastic, cooperative and hardworking.

2.4 Conclusion

Work done and lesson learnt is analysed in this chapter. Work done include survey

questionnaire, formal interview with the employee of RBB, self observation and data

collection technique is analysed and learned.

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Chapter 3

Literature Review

3.1 Motivation

The word motivation has been derived from motive which means any idea, need or emotion

that prompts a man in to action. Whatever may be the behaviour of man, there is some

stimulus behind it. Stimulus is dependent upon the motive of the person concerned. Motive

can be known by studying his needs and desires. There is no universal theory that can explain

the factors influencing motives which control mans behaviour at any particular point of time.

In general, the different motives operate at different times among different people and

influence their behaviours.

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The process of motivation studies the motives of individuals which cause different type of

behaviour. Motivation is the core of management. Motivation is an effective instrument in the

hands of the management in inspiring the workforce. It is the major task of every manger to

motivate his subordinate or to create the will to work among the subordinates. It should also

be remembered that the worker maybe immensely capable of doing some work, nothing can

be achieved if he is not willing to work. Creation of a will to work is motivation in simple but

true sense of term. Motivation is an important function which every manager performs for

actuating the people to work for accomplishment of objectives of the organization. Issuance

of well conceived instructions and orders does not mean that they will be followed. A

manager has to make appropriate use of motivation to enthuse the employees to follow them.

Effective motivation succeeds not only in having an order accepted but also in gaining a

determination to see that it is executed efficiently and effectively. In order to motivate

workers to work for the organizational goals, the managers must determine the motives or

needs of the workers and provide an environment in which appropriate incentives are

available for their satisfaction. If the management is successful in doing so, it will also be

successful in increasing the willingness of the workers to work. This will increase efficiency

and effectiveness of the organization. There will be better utilization of resources and

workers abilities and capacities.

3.2 Definition of Motivation

According to Edwin B Flippo, "Motivation is the process of attempting to influence others to

do their work through the possibility of gain or reward. According to Michal J Jacius,

Motivation is the act of stimulating someone or oneself to get a desired course of action or to

push the right button to get a desired reaction. According to Dalton E. Mcfarland, "The

concept of motivation is mainly psychological. It related to those forces are many and keep is

mainly psychological. It related to those forces are many and keep on changing with time

motives are invisible and directed towards certain goals

3.3 Importance of Motivation

Motivation is one of the most important factors determining organizational efficiency. All

organizational facilities will go to waste in absence of motivated people to utilize these

facilities effectively. Every superior in the organization must motivate is subordinates for the

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right types of behaviour. The performance of human beings in the organization is dependent

on the ability in the motivation. Rensis Likert called motivation as "the cost of the

management". Motivation is an effective instrument in the hands of management in inspiring

the workforce. Motivation increases the willingness of the workers to work, thus increasing

efficiency and effectiveness of the organization.

3.4 THEORIES OF MOTIVATION

3.4.1 Maslow’s Hierarchy of Needs Theory:

Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943.

This theory is a classical depiction of human motivation. This theory is based on the

assumption that there is a hierarchy of five needs within each individual. The urgency of

these needs varies. These five needs are as follows-

Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In

other words, physiological needs are the needs for basic amenities of life.

Safety needs- Safety needs include physical, environmental and emotional safety and

protection. For instance- Job security, financial security, protection from animals, family

security, health security, etc.

Social needs- Social needs include the need for love, affection, care, belongingness, and

friendship.

Esteem needs- Esteem needs are of two types: internal esteem needs (self-respect,

confidence, competence, achievement and freedom) and external esteem needs (recognition,

power, status, attention and admiration).

Self-actualization need- This include the urge to become what you are capable of becoming

what you have the potential to become. It includes the need for growth and self-contentment.

It also includes desire for gaining more knowledge, social- service, creativity and being

aesthetic. The self actualization needs are never fully satiable. As an individual grows

psychologically, opportunities keep cropping up to continue growing.

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According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs

is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the

five needs into two categories -Higher-order needs and Lower-order needs. The physiological

and the safety needs constituted the lower-order needs. These lower-order needs are mainly

satisfied externally. The social, esteem, and self-actualization needs constituted the higher

order needs. These higher-order needs are generally satisfied internally, i.e., within an

individual. Thus, we can conclude that during boom period, the employees lower-order needs

are significantly met.

Our field work is mainly based on the motivation of employee in the Rastriya Banijya Bank.

Implications of Maslow’s Hierarchy of Needs Theory for Managers

1. As far as the physiological needs are concerned, the managers should give employees

appropriate salaries to purchase the basic necessities of life. Breaks and eating opportunities

should be given to employees.

2. As far as the safety needs are concerned, the managers should provide the employees job

security, safe and hygienic work environment, and retirement benefits so as to retain them.

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3. As far as social needs are concerned, the management should encourage teamwork and

organize social events.

4. As far as esteem needs are concerned, the managers can appreciate and reward employees

on accomplishing and exceeding their targets. The management can give the deserved

employee higher job rank / position in the organization.

5. As far as self-actualization needs are concerned, the managers can give the employees

challenging jobs in which the employees’ skills and competencies are fully utilized.

Moreover, growth opportunities can be given to them so that they can reach the peak.

The managers must identify the need level at which the employee is existing and then those

needs can be utilized as push for motivation. Limitations of Maslow’s Theory it is essential to

note that not all employees are governed by same set of needs. Different individuals may be

driven by different needs at same point of time. It is always the most powerful unsatisfied

need that motivates an individual. The theory is not empirically supported. The theory is not

applicable in case of starving artist as even if the artist’s basic needs are not satisfied, he will

still strive for recognition and achievement

3.4.2 Herzberg’s Two-Factor Theory of Motivation:

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the

motivator hygiene theory. According to Herzberg, there are some job factors that result in

satisfaction while there are other job factors that prevent dissatisfaction. According to

Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of

“Dissatisfaction” is “No Dissatisfaction”. Fredrick Hertz (1959), the two-factor theory also

known as the hygiene theory, where he referred to satisfiers as motivators, dissatisfies as

hygiene factors. He found out that motivators were related to job experience and dissatisfies

related to environmental conditions. These are classified in the table below.

Table 2: Motivation satisfiers and dis-satisfiers.

Motivators(satisfiers) Maintenance factor (dis-satisfier)

Challenging work Status

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Achievement Interpersonal relations

Growth of the job Quality supervision

Responsibility Company policy

Advancement Working condition

Recognition Salary

Herzberg’s view of satisfaction and dissatisfaction Herzberg classified these job factors into

two categories:

1. Hygiene factors:

Hygiene factors are those job factors which are essential for existence of motivation at

workplace. These do not lead to positive satisfaction for long-term. But if these factors are

absent / if these factors are non-existent at workplace, then they lead to dissatisfaction. In

other words, hygiene factors are those factors which when adequate/reasonable in a job,

pacify the employees and do not make them dissatisfied. These factors are extrinsic to work.

Hygiene factors are also called as dissatisfies or maintenance factors as they are required to

avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene

factors symbolized the physiological needs which the individuals wanted and expected to be

fulfilled.

Hygiene factors include:

Pay - The pay or salary structure should be appropriate and reasonable. It must be

equal and competitive to those in the same industry in the same domain.

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Company Policies and administrative policies - The company policies should not be

too rigid. They should be fair and clear. It should include flexible working hours,

dress code, breaks, vacation, etc.

Fringe benefits - The employees should be offered health care plans (medical claim),

benefits for the family members, employees help programme, etc.

Physical Working conditions - The working conditions should be safe, clean and

hygienic. The work equipments should be updated and well-maintained.

Status - The employees’ status within the organization should be familiar and

retained.

Interpersonal relations - The relationship of the employees with his peers, superiors

and subordinates should be appropriate and acceptable.

2. Motivational factors:

According to Herzberg, the hygiene factors cannot be regarded as motivators. The

motivational factors yield positive satisfaction. These factors are inherent to work. These

factors motivate the employees for a superior performance. These factors are called satisfiers.

These are factors involved in performing the job. Employees find these factors intrinsically

rewarding. The motivators symbolized the psychological needs that were perceived as an

additional benefit. Motivational factors include:

Recognition - The employees should be praised and recognized for their

accomplishments by the managers.

Sense of achievement - The employees must have a sense of achievement. This

depends.

Growth and promotional opportunities - There must be growth and advancement

opportunities in an organization to motivate the employees to perform well.

Responsibility - The employees must hold themselves responsible for the work. The

managers should give them ownership of the work. They should minimize control but

retain accountability.

Meaningfulness of the work - The work itself should be meaningful, interesting and

challenging for the employee to perform and to get motivated.

Limitations of Two-Factor Theory the two factor theory is not free from limitations:

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The two-factor theory overlooks situational variables.

Herzberg assumed a correlation between satisfaction and productivity. But the

research conducted by Herzberg stressed upon satisfaction and ignored productivity.

The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters

may spoil the findings by analyzing same response in different manner.

No comprehensive measure of satisfaction was used. An employee may find his job

acceptable despite the fact that he may hate/object part of his job.

The two factor theory is not free from bias as it is based on the natural reaction of

employees when they are enquired the sources of satisfaction and dissatisfaction at

work. They will blame dissatisfaction on the external factors such as salary structure,

company policies and peer relationship. Also, the employees will give credit to

themselves for the satisfaction factor at work.

The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-

Factor theory is acceptable broadly.

Implication of Two Factor Theory implies that the managers must stress upon guaranteeing

the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers

must make sure that the work is stimulating and rewarding so that the employees are

motivated to work and perform harder and better. This theory emphasize upon job-

enrichment so as to motivate the employees. The job must utilize the employee’s skills and

competencies to the maximum. Focusing on the motivational factors can improve work-

quality.

3.4.3 Expectancy Theory of Motivation:

The expectancy theory was proposed by Victor Vroom of Yale School of Management in

1964. Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and

Herzberg. The theory states that the intensity of a tendency to perform in a particular manner

is dependent on the intensity of an expectation that the performance will be followed by a

definite outcome and on the appeal of the outcome to the individual. The Expectancy theory

states that employee’s motivation is an outcome of how much an individual wants a reward

(Valence), the assessment that the likelihood that the effort will lead to expected performance

(Expectancy) and the belief that the performance will lead to reward (Instrumentality). In

short, Valence is the significance associated by an individual about the expected outcome. It

is an expected and not the actual satisfaction that an employee expects to receive after

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achieving the goals. Expectancy is the faith that better efforts will result in better

performance. Expectancy is influenced by factors such as possession of appropriate skills for

performing the job, availability of right resources, availability of crucial information and

getting the required support for completing the job. Instrumentality is the faith that if you

perform well, then a valid outcome will be there. Instrumentality is affected by factors such

as believe in the people who decide who receives what outcome, the simplicity of the process

deciding who gets what outcome, and clarity of relationship between performance and

outcomes.

Thus, the expectancy theory concentrates on the following three relationships

Effort-performance relationship: What is the likelihood that the individual’s effort be

recognized in his performance appraisal?

Performance-reward relationship: It talks about the extent to which the employee

believes that getting a good performance appraisal leads to organizational rewards.

Rewards-personal goals relationship: It is all about the attractiveness or appeal of the

potential reward to the individual Vroom was of view that employees consciously

decide whether to perform or not at the job. This decision solely depended on the

employee’s motivation level which in turn depends on three factors of expectancy,

valence and instrumentality.

Advantages of the Expectancy Theory

It is based on self-interest individual who want to achieve maximum satisfaction and

who wants to minimize dissatisfaction.

This theory stresses upon the expectations and perception; what is real and actual is

immaterial.

It emphasizes on rewards or pay-offs.

It focuses on psychological extravagance where final objective of individual is to

attain maximum pleasure and least pain.

Limitations of the Expectancy Theory

The expectancy theory seems to be idealistic because quite a few individuals perceive

high degree correlation between performance and rewards.

21

The application of this theory is limited as reward is not directly correlated with

performance in many organizations. It is related to other parameters also such as

position, effort, responsibility, education, etc.

3.4.4 Theory X and Theory Y:

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of

human behaviour at work, or in other words, two different views of individuals (employees):

one of which is negative, called as Theory X and the other is positive, so called as Theory Y.

According to McGregor, the perception of managers on the nature of individuals is based on

various assumptions.

Assumptions of Theory X

An average employee intrinsically does not like work and tries to escape it whenever

possible.

Since the employee does not want to work, he must be persuaded, compelled, or

warned with punishment so as to achieve organizational goals.

A close supervision is required on part of managers. The managers adopt a more

dictatorial style.

Many employees rank job security on top, and they have little or no aspiration/

ambition.

Employees generally dislike responsibilities.

Employees resist change. An average employee needs formal direction.

Assumptions of Theory Y

Employees can perceive their job as relaxing and normal. They exercise their physical

and mental efforts in an inherent manner in their jobs.

Employees may not require only threat, external control and coercion to work, but

they can use self-direction and self-control if they are dedicated and sincere to achieve

the organizational objectives.

If the job is rewarding and satisfying, then it will result in employees’ loyalty and

commitment to organization.

An average employee can learn to admit and recognize the responsibility. In fact, he

can even learn to obtain responsibility.

22

The employees have skills and capabilities. Their logical capabilities should be fully

utilized.

In other words, the creativity, resourcefulness and innovative potentiality of the employees

can be utilized to solve organizational problems. Thus, we can say that Theory X presents a

pessimistic view of employees’ nature and behaviour at work, while Theory Y presents an

optimistic view of the employees’ nature and behaviour at work. If correlate it with Maslow’s

theory, we can say that Theory X is based on the assumption that the employees emphasize

on the physiological needs and the safety needs; while Theory Y is based on the assumption

that the social needs, esteem needs and the self-actualization needs dominate the employees.

McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he

encouraged cordial team relations, responsible and stimulating jobs, and participation of all in

decision-making process.

3.4.5 Vroom’s Expectancy Theory:

The expectancy theory of motivation was established by Victor Vroom with the belief that

motivation is based on the expectation of desired outcomes . The theory is based on three

concepts: valence, expectancy, and force. Valence is the attractiveness of potential rewards,

outcomes, or incentives. Expectancy is a person’s belief that they will or will not be able to

reach the desired outcome. Force is a person’s motivation to perform. “In general, people will

work hard when they think that it is likely to lead to desired organizational rewards”.

3.4.6 Alderfer’s ERG Theory

As a refinement of Maslow’s theory Alderfer proposes a hierarchy of three core needs:

existence, relatedness and growth. The existence category of needs refers to the provision of

basics material existence requirements, embodying items which Maslow described as

physiological and safety needs. The relatedness group of needs refers to the urge for

maintaining significant interpersonal needs (or social and status desires) involving interaction

with others and allied items, which Maslow considered as social and the external esteem

needs. The group of growth needs refers to an intrinsic desire for one’s personal development

and includes items which Maslow designated as self-actualisation needs.

Although there does not exist definitive empirical evidence to support Alderfer’s theory, it

deals effectively with the problem of overlapping inherent in Maslow’s theory by

23

differentiating between survival, social and personal growth needs. Thus, it avoids the

assumption that the lower needs (i.e. existence) must be adequately satiated before the higher

order needs (i.e. relatedness) can emerge. The importance or the driving force of a category

of needs is a function of an individual’s divergent characteristics, including educational,

family and cultural backgrounds. A theory of motivation can have cross-cultural validity if it

either avoids the assumption that all people proceed through a specific sequential need

hierarchy or refines the theory to identify factors which differentiate them into homoge.

3.4.7 McClelland’s Theory

McClelland proposed three needs which are important in organisational settings, for

understanding motivation. These needs include achievement power and affiliation.

i) Achievement motivation has been intensively studied by McClelland and his associates and

described in their treatise the Achievement motive. It has been defined as a desire to succeed

in competitive situations based on a standard of excellence determined by others’ or one’s

own preceding standards.

The individual propelled by achievement motivation is constantly preoccupied with the desire

for improvement and better performance in his position and tends to prefer situations where

he can get quick and precise feedback on his performance. Individuals who are equipped with

high achievement motivation are fond of taking calculated risks and search for environments

24

conducive to challenging opportunities, personal responsibility, autonomy and a sense of

mastery. Such individuals derive greater excitement from the solution of a complex problem

rather than the accompanying money or praise and tend to make outstanding executives or

entrepreneurs. Organizations which have a sizeable number of such individuals make rapid

progress.

It has also been demonstrated by McClelland in his empirical work, The Achieving Society

that the economic development of a country has high positive correlation with the level of

achievement motivation obtained among its population. According to him, if attempts are

made to detect need for achievement in individuals or nations, it can facilitate faster

economic development in developing countries like India.

McClelland’s theory implies that managers with high achievement motivation may set high

standards of performance for themselves and their subordinates and are likely to be

improvement and innovation-minded in their positions.

ii) Power motivation has been defined as a desire to affect the behavior of other individuals

and to control and manipulate the surroundings. It has been assumed that power motivation

becomes strong in people who feel themselves to be inadequate to achieve respect and

recognition from other individuals and subsequently, go out of their way to seek the attention

of others. Individuals with high power motivation either emerge as successful leaders or

alcoholics. McClelland stresses that the power motivation is closely related to managerial

success. However, it is not certain which the cause is and which is the effect.

Power motivation may be in negative and un-socialised or positive and socialized forms.

Such motivation is likely to energize and people to seek leadership roles. But it is also likely

that in such roles, individuals with high power motivation, involving negative orientation

may tend to adopt an exploitative autocratic style, whereas those with low power motivation

may resort to a laissez- faire style. Moderately high power motivation, involving positive

orientation, leads to a participative democratic leadership style.

iii) Affiliation motivation is a desire to interact with other individuals to be liked by them, to

different groups, etc. Thus, it is related to social needs. Schachter in his treatise titled The

Psychology of Affiliation, has also analyzed this motivation. He has assumed that individuals

25

tend to seek affiliation to substantiate their beliefs and not merely to have good

companionship. Such substantiation provides them with some kind of uncertainty provides

them with some kind of certainty in life-situations which there is likely to be a lot of

confusion especially, when one’s beliefs are shattered.

Basically, affiliation motive is the desire to socialize as a goal in itself. People tend to seek

good company, good family life and popularity in groups just for its own sake. Leaders with

high affiliation motivation are likely to be relations-oriented, warm, friendly and supportive

while those with low affiliation motivation may be impersonal, bureaucratic and inaccessible

in organizational settings. High affiliation motivation must, however be accompanied by high

achievement motivation in the leader otherwise he is likely to sacrifice standards performance

for the sake of his popularity and be exploited by his subordinates.

3.5 Conclusion

Though these theories are very basic in nature, they provide a platform for future generation

of management theorists. Herzberg’s hygiene and motivation factors and Maslow’s hierarchy

of needs still have broad applicability in the business world. These theories cover major

aspects of human behaviour related with their motivation.

26

Chapter 4

Analysis

4.1 Introduction

In this chapter, the presentation of data is systematically linked to the format of the self-

developed questionnaire attached in the appendix. The data for the research has been

collected using questionnaire. The questionnaire was distributed randomly to a sample of

employee, over 20 employees who are working in various departments, with different job

responsibilities and organization position.

This chapter will focus on the analysis and interpretation of data that was collected for this

study. The analysis and interpretation of data is carried out in two phases. The first part,

which is based on the results of the questionnaire, deals with a quantitative analysis of data.

The second, which is based on the results of the interview and focus group discussions, is a

qualitative interpretation. According to De Vos, data analysis entails that the analyst break

down data into constituent parts to obtain answers to research question and to test hypotheses.

The analysis of research data does not in its own provide the answers to research questions.

The purpose of interpreting the data is to reduce it to an intelligible and interpretable form so

that the relations of research problems can be studied and tested, and conclusions drawn. On

the other hand, when the researcher interprets the research results, he/she studies them for

their meaning and implications.

4.2 Analysis

Under this chapter, the collected data through primary sources have been represented in the

suitable formats (i.e. on tables and charts). To analyse motivation, Recruitment, Performance

27

evaluation, Motivating factor, Promotion criteria, Incentive and Money is enough to motivate

employees in the company.

4.2.1 EMPLOYEE RESPONSE ON THE CURRENT MOTIVATIONAL SYSTEM

Table No.3

SI. No. ResponsesNumber of

respondents

Percentage of

responds

1 High 5 25%

2 Medium 13 65%

3 Low 2 10%

Total 20 100%

From the above table, it is clear that 65% employees are motivated in medium level or in

other word we can say that majority of employees not highly satisfied. Similarly 25 %

employees get the high level of motivation and 10% employees get the low level of

Motivation. We can say that majority of employee are not fully motivated in the organization.

The data in above table can be shown in the graph below:

EMPLOYEE RESPONSE ON THE CURRENT MOTIVATIONAL SYSTEM

Figure No.1

28

High Medium Low0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

25.00%

65.00%

10.00%

4.2.2 EMPLOYEE RESPONSE TOWARDS THE SOURCE OF RECRUITMENT

Table No. 4

SI. No. ResponsesNumber of

respondents

Percentage of

responds

1 Internal 3 15%

2 External 13 65%

3 Both 4 20%

Total 20 100%

From the above table, it is clear that 15% or 3 respondents believe that recruitment is done

through Internal factor, 65% or 13 respondents believe that recruitment is done through

External factor and 20% or 4 respondents believe that recruitment is done through Both

(Internal and External). Therefore, it is clear that recruitment is done through external factor.

29

EMPLOYEE RESPONSE TOWARDS THE SOURCE OF RECRUITMENT

Figure No.2

Internal External Both0%

10%

20%

30%

40%

50%

60%

70%

15%

65%

20%

4.2.3 EMPLOYEE RESPONSE TOWARDS THE PERFORMANCE EVALUATION

Table No. 5

SI. No. ResponsesNumber of

respondents

Percentage of

responds

1 Age 0 00%

2 Experience 10 50%

3 Work done 7 35%

4 Position 3 15%

30

Total 20 100%

The above table shows 50% or 10 respondents given emphasis on experience, whereas, 35%

or 7 respondents given emphasis on work done and 15%or 3 respondents given emphasis on

Position. Therefore, it is clear that Performance evaluation of employee is done on the basis

of experience.

EMPLOYEE RESPONSE TOWARDS THE PERFORMANCE EVALUATION

Figure No. 3

Age Experience Work done Position0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0%

50%

35%

15%

4.2.4 EMPLOYEE RESPONSE TOWARDS THE FACTOR THAT WILL

MOTIVATE

Table No. 6

SI. No. ResponsesNumber of

respondents

Percentage of

responds

1 Job Security 2 10%

31

2 Financial Reward 0 00%

3 Job Satisfaction 12 60%

4 Promotion 6 30%

5 Award 0 00%

Total 20 100%

The above table shows 10% or 2 respondent motivate with job security. Whereas 60% or 12

respondents motivate with job satisfaction and 30% or 6 respondents motivate with

promotion. Therefore, it shows job satisfaction motivate the employee to work more.

EMPLOYEE RESPONSE TOWARDS FACTOR THAT WILL MOTIVATE

Figure No. 4

Job Security Financial Reward Job Satisfaction Promotion Award0%

10%

20%

30%

40%

50%

60%

10%

0%

60%

30%

0%

32

4.2.5 EMPLOYEE RESPONSE ON PROMOTION CRITERIA

Table No. 7

SI. No. ResponsesNumber of

respondents

Percentage of

responds

1 Exam 13 65%

2 Interview 0 00%

3 Performance 1 5%

4 Evaluation 5 25%

5 All 1 5%

Total 20 100%

The above table shows that 65% or 13 respondents believe that promotion is done on the

basis exam, 5% or 1 respondent believe that promotion is done on the basis of performance,

25% or 5 respondents believe that promotion is done on the basis of Evaluation and 5% or 1

respondents believe that promotion is done on the basis of all criterion. Therefore it is clear

that promotion of employee is done on the basis of exam.

EMPLOYEE RESPONSE ON PROMOTION CRITERIA

Figure No. 5

33

Exam Interview Performance Evaluation All0%

10%

20%

30%

40%

50%

60%

70% 65%

0%5%

25%

5%

4.2.6 EMPLOYEE RESPONSE ON INCENTIVE

Table No. 8

SI. No. ResponsesNumber of

respondents

Percentage of

responds

1 Monetary Incentive 1 5%

2 Non Monetary Incentive 0 00%

3 Both of above 19 95%

4 None of above 0 00%

Total 20 100%

From the table, it is clear that 95% or 19 respondents believe that both monetary and non

monetary incentive motivates and 5% or 1 respondent believe that monetary incentive

motivates. Therefore, it shows both monetary and non monetary incentive motivates

employees.

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EMPLOYEE RESPONSE ON INCENTIVE

Figure No. 6

Monetary In-centive

Non Monetary Incentive

Both of above Non of above0%

10%20%30%40%50%60%70%80%90%

100%

5%0%

95%

0%

4.2.7 EMPLOYEE RESPONSE ON MONEY IS ENOUGH TO MOTIVATE

Table No.9

SI. No. ResponsesNumber of

respondents

Percentage of

responds

1 Yes 1 5%

2 No 19 95%

Total 20 100%

35

From the table, it is clear that 95% or 19 respondents think that money is not enough to

motivate and 5% or 1 respondent think that money is enough to motivate. Therefore, it shows

employees are not satisfied with money.

EMPLOYEE RESPONSE ON MONEY IS ENOUGH TO MOTIVATE

Figure No. 7

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5%

95%

4.3 Major Findings During this survey what we found majority of employee working in Rastriya Banijya

Bank ltd are not highly satisfied. Employees were satisfied at medium level rather it

needed to be high.

Recruitment of employee is done externally.

Performance evaluation of employee is done on the basis of work experience.

Job satisfaction motivates the employee to work more.

Promotion of employee is done on the basis of evaluation.

Both monetary and Non-monetary incentive motivates the employee to work at their

peak.

Majority of employee are not satisfied with the money given by the company.

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4.4 Conclusion

To summarize the findings of the questionnaire, the employees in Rastriya Banijya Bank are

satisfied but not in high level. They also show high work motivation. The workers of the

company are not satisfied with the current salary and fairness of the wages system compared

to the tasks they do. Also the jobs that Rastriya Banijya Bank offers to its employee are quite

satisfied with the working condition.

Chapter 5

Conclusion and Recommendation

5.1 Summary

Rastriya Banijya Bank Ltd was established on January 23, 1966 as a second commercial bank

of Nepal to uplift the Nepalese economy and develop the trade and commence of the country.

Besides, this it was established to liquidate the poor from the exploitation of the money

37

lenders. Since that period it has been playing a vital for the economic development of the

country. It is also one of the public enterprises having multipurpose objectives such as profit

earning and social service. Therefore for this purpose there should be efficient and effective

management of this bank and employees should be properly motivated.

It needs a sound organization and efficient management for the proper functioning of an

institution. The sound organization and efficient management depends upon the behaviour,

attitude and perception of the persons which are situated in different levels in the

organization. The behaviour, attitude, and perception of the persons are based on the

motivation aspects or factors. Therefore this study is concerned with the motivational aspects

of Rastriya Banijya Bank Ltd. The basic objective of this study is to find out the level of

Motivation among the employees.

Motivation increases the willingness of the workers to work, thus increasing efficiency and

effectiveness of the organization. Some Theories developed by difference human

behaviourists have been reviewed. These theories cover major aspects of human behaviour

related with their motivation. Besides this a number of research studies have also been

reviewed. These studies were carried with a view to find out the motivating factors

employees. The conclusion of these different studies help the researcher to know the

difference motivating factors as perceived by difference type of persons at different

circumstances.

This study is based on the survey of Motivation of employee in Rastriya Banijya Bank Ltd. A

questionnaire was prepared covering different areas or motivating factors. The presentation of

the collected data is shown on suitable formats (i.e. on tables and charts). To analyse

motivation, Recruitment, Performance evaluation, Motivating factor, Promotion criteria,

Incentive and Money is enough to motivate employees in the company.

5.2 Conclusion

The project is a study on employee motivation in Rastriya Banijya Bank Ltd is mainly

conducted to identify the motivation level of employees in the organization and the factors

which provide motivation to the employees.

38

The study enables to find out the effectiveness and the drawback of the facilities given to the

employee in Rastriya Banijya Bank Ltd. The study analyzed that the most of employees are

satisfied with the facilities provided by the company can take more steps to improve welfare

facilities mainly company should take necessary steps to improve the environmental factors.

5.3 Recommendation

The following recommendations are made to the company based on the findings and

conclusions of this study on employee motivation and its most influencing factors, for the

purpose of enhancing the overall level of employee motivation in the company and increasing

work efficiency.

Provide more competitive wages to the "low-income" segment of the company.

Increase the possibility of employee promotion in the company by promoting from

within rather than hiring from the outside.

Encourage more frequent communication between managers and their employees and

relationship and trust between the two groups.

Put effort into ensuring that employees are properly credited and receive recognition

for the good work they do in their respective positions.

Offer more opportunities for job advancement and education, in order to allow

employees to completely master their respective positions.

39