1.

0Research Context
In recent decades, the Economy of Bangladesh has observed a dynamic change in both
manufacturing and in the service sector. This has brought higher employment opportunities,
increases in income level and changes in consumer pattern, results a competitive environment in
the country. This scenario has created an expansion of private banking sectors. Now, the banking
sector is one the major sector in Bangladesh which contributes significantly to the national
economy. According to Bangladesh Bureau of Statistics (BBS), the current contribution of
monetary intermediation (Banks) to GDP is Taka 417,637 million, which is 3.2 percentage of
overall GDP. Moreover, the sector also makes a positive impact in the economic development by
generating employment with the average growth rate of 3.76%. It should be taken into
consideration that the expansion of private banks along with the development of customer
service has created a severe implied competition in this sector. This competition has made the
service gap wider as private banks offer better services to their internal and external customers.
The scenario has created an urge to the bank policy makers to address the job satisfaction issue.
It has been further anticipated that employees in banking sector play the key role in manipulating
their services through implementing policy that has appealed to their customers. In such
situation, the job satisfaction of bank employees becomes an important issue that has to be taken
care of in order to achieve the ultimate goals of the banking sector in Bangladesh.

1.1Problem statement
As discussed earlier, to achieve the ultimate goals of a bank, especial consideration should be
given to the job satisfaction of the employees. Here we want to apply Herzbergs two factor
theory of job satisfaction to identify what factors motivate the private bank employees and what
hygiene factors are essential to avoid dissatisfaction among the employees. Therefore, the
problem statement is The study of Herzbergs two factor theory of job satisfaction in the
context of private banks.
Here the dependent variable will be the Job Satisfaction of private bank employees and
independent variables will be the two factors of Herzbergs theory of job satisfaction.

1.2Research Purpose
The purpose of this research is to identify the key factors that motivate the private bank
employees and what hygiene factors are essential to avoid dissatisfaction among them by using
Herzbergs two factor theory of job satisfaction. The objective of the research is to maximize that
job satisfaction among the private bank employees so that the overall performance of the banks
can be improved.

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1.3Literature review
This study effort to appraise job satisfaction of banks employees in Bangladesh. Therefore,
issues like concepts, definitions of Herzbergs dual job satisfaction theory, dimension and
relationship of job satisfaction and motivation will be dealt thoroughly.

1.3.1Motivation
Motivation features are recognized to intensively change whether or not individuals, are pleased with
their jobs. Motivation has reserved people in crises going throughout the centuries; it has been the
cause of increased standards of living, success, fortune, and satisfaction. Behavior; the reason people
do things. According to many, including Todes et al. (1977), the role of motivation in the job
atmosphere has huge importance. The major factors of inspiration are ones needs, rewards, wealth,
determined goals, values, and dignity (Vroom, 1990). Moreover, failure, achievement or else liability
may motivate employees to carry out forceful devotion to their work. . According to Huglin (2008),
psychologist Frederick Herzberg is one of the best-known theorists regarding workplace motivation. .
Herzbergs two-factor theory of job satisfaction, which is also known as the motivation-hygiene
theory maintained that there are two types of needs that can lead to job satisfaction. MotivatorHygiene defines two factors, (Maidani, 1991). Theory Motivator Needs: internal to work itself. If
conditions are met, job satisfaction occurs-Job enrichment: expand a job to give the employee a
greater role in planning, performing, and evaluating their work. Hygiene Needs: Features of work
environment. If not met, job dissatisfaction occurs. According to Watson (1994) business has come to
realize that a motivated and satisfied workforce can deliver powerfully to the bottom line. Since
employee performance is a joint function of ability and motivation, one of managements main tasks,
therefore, is to motivate employees to perform to the best of their skill (Moorhead & Griffin, 1998).
Moreover motivation is the willingness to exert a persistent and high level of effort towards
organizational goals, conditioned by the effort's ability to satisfy some individual needs , ( Stephen ,
2000; Decenzo, 2001).
Employee motivation is a major issue for any organization. Managers have always tried to motivate
their staff to perform tasks and duties to a high standard (Al-Alawi, 2005; Mullins, 1996, p. 520).
According to MacMillan (2007, p. 207), What motivates an individual is complex, and the biggest
mistake we can make is underestimating the magnitude of the human mind. According to Webster
(2008), motivation can be defined in many different ways, one definition explains that motivation can
be defined as a stimulus, a drive or incentive in this case, that drives individuals to accomplish
personal and organizational goals.

1.3.2 Job satisfaction

Different authors have different approaches towards defining job satisfaction. Some of the most
commonly cited definitions of job satisfaction are analyzed in the text that follows.
Hoppock defined job satisfaction as any combination of psychological, physiological and
environmental circumstances that cause a person truthfully to say I am satisfied with my job
(Hoppock, 1935). According to this approach, although job satisfaction is under the influence of
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many external factors, it remains something internal that has to do with the way how the
employee feels. That is job satisfaction presents a set of factors that cause a feeling of
satisfaction. Vroom in his definition on job satisfaction focuses on the role of the employee in the
workplace. Thus he defines job satisfaction as affective orientations on the part of individuals
toward work roles which they are presently occupying (Vroom, 1964). One of the most often
cited definitions of job satisfaction is the one given by Spector according to whom job
satisfaction has to do with the way how people feel about their job and its various aspects. It has
to do with the extent to which people like or dislike their job. Thats why job satisfaction and job
dissatisfaction can appear in any given work situation.
Job satisfaction can be defined also as the extent to which worker is content with the rewards he
or she gets out of his or her job, particularly in terms of intrinsic motivation (Statt, 2004).
The importance of job satisfaction specially emerges to surface if had in mind the many negative
consequences of job dissatisfaction such a lack of loyalty, increased absenteeism, increase
number of accidents etc. Spector (1997) lists three important features of job satisfaction. First,
organizations should be guided by human values. Such organizations will be oriented towards
treating workers fairly and with respect. In such cases the assessment of job satisfaction may
serve as a good indicator of employee effectiveness.
High levels of job satisfaction may be sign of a good emotional and mental state of employees.
Second, the behavior of workers depending on their level of job satisfaction will affect the
functioning and activities of the organization's business. From this it can be concluded that job
satisfaction will result in positive behavior and vice versa, dissatisfaction from the work will
result in negative behavior of employees. Third, job satisfaction may serve as indicators of
organizational activities. Through job satisfaction evaluation different levels of satisfaction in
different organizational units can be defined, but in turn can serve as a good indication regarding
in which organizational unit changes that would boost performance should be made.

1.3.3Relationship between Motivation and Job satisfaction

The relationship between job satisfaction and motivation at work has been one of the widely
researched areas in the field of management in relation to different professions, but in Bangladesh
very few studies have explored this concept especially on banking sector employees. Compensate is
also a powerful method to bring motivation, because persons can develop it to achieve their most
wanted requirements. As a result, provide a reward that has a huge collision in establishing
employees carefulness and loyalty. Since employee performance is a joint function of ability and
motivation, one of managements primary tasks, therefore, is to motivate employees to perform to
the best of their ability (Hulin and Smith, 1964; Moorhead & Griffin, 1998). Schultz and Schultz
(1998) held the view that job satisfaction encompasses the positive and negative feelings and
attitudes people hold about their jobs, and that these depend on many work-related characteristics,
but also on personal characteristics, such as age, gender, health and social relationships. According to
Cooke (1999) and Fisher (2005), the currency is measured to be the wealthiest motivator for workers.
Conversely revised have shown that pay does not seem to improve efficiency levels in the stretched
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term and money does not improve performance (Whitley, Pearson & Chatterjee, 2002). Job
satisfaction of the managers who have an important place as forerunners of the society will affect the
quality of the service rendered. According to Sempane, Rieger & Roodt (2002), Job satisfaction
relates to peoples own evaluation of their jobs against those issues that are important to
them.Additionally, this knows how to decline employees attitude in which they may work simply
in the attention of high pay. The pay is not only the most important reinforce, other on-financial
factors such as rewards, social acknowledgment and presentation feedbacks are also found to be
positive motivational factors (Smith & Rupp, Spector, Nguyen,Taylor, & Bradley,2003).
According to statistical data from Covalence for the 2007, shows that IBM received the highest score
for the most favorable working condition. Following to this, Anglo American, Cisco systems, Alcoa
Inc, Unilever, Ford, Shell and Pepsi Co are the most prominent corporate examples in their industries
due to the major investment in employee motivation, job security and paying high remuneration.
Consequently, the vastly loyal, skillful and motivated employees will absolutely make massive
economic earnings and on the other way suit customers requirements and happiness. Such as one
employee may be aggravated in his work to earn upper commission, whereas another employee may
be more fascinated for its satisfaction or the surrounding environment solely (According to Syptak,
Marsland, & Ulmer (1999), these factors can show the way to dissatisfaction condition they are not
healthy managed, but they cannot at all guide to positive feelings towards work. Absolutely not, the
motivators, such as determined for development, accomplishment, appreciation and individual
appearance, can create a positive approach of job satisfaction.

1.3.4 Herzberg Two Factor Theory

Herzbergs Two-Factor Theory divides motivation and job satisfaction into two groups of
Factors known as the motivation factors and hygiene factors. According to Ruthankoon,
(2003), as cited by Herzberg (1959): the motivating factors are the six job content factors that
include achievement, recognition, the work itself, responsibility, advancement, and possibility of
growth. Hygiene factors are the job context factors, which include company policy, relationship
with supervisor, work conditions, relationship with peers, salary, personal life, relationship with
subordinates, status, and job security (Ruthankoon, 2003).
Basically, this theory differentiates the factors between intrinsic motivators and extrinsic
motivators. The intrinsic motivators, known as the job content factors, define things that the
people actually do in their work; their responsibility and achievements. These factors are the
ones that can contribute a great deal to the level of job satisfaction an employee feels at work.
The job context factors, on the other hand, are the extrinsic factors that someone as an employee
does not have much control over; they relate more to the environment in which people work than
to the nature of the work itself (Schermerhorn, 2003).Herzberg identifies these factors as the
sources for job dissatisfaction.
Herzberg reasoned that because the factors causing satisfaction are different from those causing
dissatisfaction, the two feelings could not simply be treated as opposites of one another. The
opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. Similarly, the opposite of
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dissatisfaction is no dissatisfaction. Therefore, all of the factors, both motivation and hygiene,
can have positive and negative attributes; however, both will have an effect on the employee
satisfaction or dissatisfaction.

1.4Research Question and Hypothesis

Questions

How Herzbegs two factor theory can use to identify the key elements that lead to job
satisfaction among private bank employees?

How Herzbergs two factor theory can be used to identify the key causes that lead to
dissatisfaction among the private bank employees?

Hypothesis

Herzbergs two factor theory can identify the key elements that lead to job satisfaction
among the private bank employees

Herzbergs two factor theory can identify the key causes that lead to dissatisfaction
among the private bank employees

1.5 Research Methodology

1.5.1 Research Design
The purpose of this study is to identify the factors that lead to the job satisfaction and avoid the
factors that create dissatisfaction among the private bank employees. The aim here is to use the
Herzbergs two factor theory therefore a descriptive research will be conducted. The variables
considered for this study are centered on the main factors according to the literature review
related to the study, namely, job motivators and hygiene factors.
This method is chosen in order to compare and describe job satisfaction phenomena as exist in
the real situation and it is relatively economical in terms of time and resource. Furthermore, this
method is appropriate since the variables cannot easily distinguish and the existing situation does
not yield to the application of an experimental method of study.

1.5.2Data Collection
In order to collect relevant data and to make a systematic description, prediction and explanation
of the phenomena of motivator and hygiene variables among private bank employees, the
researcher utilized the following primary data collection source: Questionnaire response from
respondents.
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The subjects of this study were 100 bank employees from 4 different private banks currently
operating in Bangladesh.

1.5.3Sampling
A probability sampling design was used, based on the method of stratified random sampling.
Probability sampling designs involve elements of randomization and assure each potential
respondent has an equal chance of participating in the research. Some of the advantage of
utilizing probability sampling lays in the fact that high generalizability, generating unbiased
estimator of population mean and suitable for testing of hypotheses. Job satisfaction is a
phenomenon, which is live and experienced daily by male or female, experienced or less
experienced bankers when they interact with their colleagues, customers, supervisor, and the
principal and other stakeholders. For this reason, the most proper sampling method to get
adequate sample representative for this research is stratified random sampling. 75 respondents
were chosen randomly from four different banks.

1.5.4 Methods of Data Collection

The main objective of this study is to identify how Herzberg's theory of job satisfaction applied
to a working population using a questionnaire based on Herzberg's classification scheme. For the
purpose of this research, the Minnesota satisfaction Questionnaire (MSQ) was adapted and used
to measure the two factors of job satisfaction (motivators and hygiene).These items were
measured on a five-point Likert-type scale.
The reason for using MSQ is primarily because it is a well-known instrument designed to
measure job satisfaction, it is also a gender-neutral instrument that could be administered to
either groups or individuals and it helps to extract a detailed picture of the employees specific
satisfactions and dissatisfactions.

1.5.5 Instrument for Data Collection

The instruments used for procuring data for the study were Minnesota satisfaction questionnaire
and personal data schedule. Minnesota satisfaction Questionnaire(MSQ) developed by
University of Minnesota(1977) is a specific questionnaire of job satisfaction that has been widely
used to measure bankers satisfaction in both motivator(intrinsic)and hygiene (Extrinsic)
dimensions. In the present study, the Minnesota Satisfaction Questionnaire was adapted for
procuring data from the respondents.
Items in the original scale were modified to make it suitable for sample (bankers) selected for the
study. Thus, 45 items were incorporated in the adapted version.

1.5.6 Data Analysis

The study was conducted through analyzing the collected data by using STATA. The following
techniques were employed during the Data Analysis; Descriptive Statistics and Crombach alpha
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coefficient to determine reliability of the measurement. Descriptive statistics that is mean, and
standard deviation of the respondents scores to all the statement in each of the sections of the
questionnaire, were computed.

1.5.7 Ethical Consideration

The research was in line with ethical guidelines in that participation was voluntary and
respondents identity was confidential. Participation was voluntary ; the bankers were free to
participate in the research or not as they wished .The response were kept confidential, as the
respondent were not asked to fill their names or give any identification.

1.6 Reliability Test

Reliability refers to whether an instrument is consistent, stable and free from error, despite
fluctuations in test taker, administrator or conditions under which the test is administered.
Alpha coefficient ranges in value from 0 to 1 and may be used to describe the reliability of
factors extracted from dichotomous (that is, questions with two possible answers) and/or multipoint formatted questionnaires or scales (i.e., rating scale: 1 = poor, 5 = excellent).
The reliability coefficients of the tests (motivator variables and Hygiene variables) were tested
using Cronbach alpha formula and the reliability coefficient was found to be 0.8845 and 0.8391
respectively. Therefore, the adopted test was found reliable enough to use for this research
purpose.

Cronbach alpha coefficient

Variable

N of items

= 0.8845

Motivation

14

= 0.8391

Hygiene

25

1.7Descriptive Analysis
1.7.1Descriptive analysis of hygiene factors
Hygiene factors (dissatisfiers) that do not add satisfaction rather they only prevents
dissatisfaction and needs to maintain the motivation. The absence of hygiene factors such as
interpersonal relation, working conditions, status, job security and salary generate job
dissatisfaction, while their occurrence create no job dissatisfaction rather than job satisfaction.
For example according to Herzberg, salary or monitory benefits and working environment etc.
are hygiene factors that prevent dissatisfaction not enhancing satisfaction.
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Table: 1.0 Descriptive results of hygiene factors of job satisfaction

Variables

Policy

Relationship Salary
with the
supervisors

Working Relationship Job

condition with the Co- security
workers

Status

Mean

3.23

3.45

3.93

3.85

4.16

.667658

.9449725

Standard .9805312 .6105676

Deviation

4.00

3.79

.3593454 .5495289 .5993991

To determine what variables in the hygiene factors influence employees of the private factor
most, a descriptive statistics analysis had been conducted using STATA. Here, the following
mean represents company job policy, relationship with supervisors, salary, working condition,
job security, and status respectively: 3.23, 3.45, 4, 3.93, 3.79, 3.85, and 4.16. The mean for job
status is the highest with a mean of 4.16 determines that employees are not dissatisfied with the
social status that they have received for working at a bank. The second highest mean is 4.00
which represent the salary variable. This also shows that employees are not dissatisfied with the
amount they receive from bank. However, the implementation of job policy is low in banks when
compared with the other variables (mean 3.32). It determines that employees are relatively
dissatisfied with implementation of policy when compared with the other variables in the
hygiene factor. It is worth to mention that the survey has been conducted with MTO, TO junior
officers and executive officers. All these posts are holds a different status in the eye of the
society. MTOs and executive officer that are not dissatisfied with their job status, TO and junior
officers are relatively dissatisfied when compared with the other two ranks.

17.3 Descriptive analysis of Motivation Factor

Motivator factors (satisfiers) are based on an individual's need for personal growth. When they
exist, motivator factors actively create job satisfaction. If they are effective, then they can
motivate an individual to achieve above-average performance and effort. Such factors as
achievement, advancement, recognition, responsibility, personal growth and work itself that
enhance job satisfaction or factors contribute to increase job satisfaction and higher productivity
of employees, whereas the nonexistence of these factors generate no job satisfaction rather than
job dissatisfaction.

Table: 2.0 Descriptive analysis of motivator factor of job satisfaction

Variables

Achievement

Advancement

Recognition

Responsibility

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Personal
growth

Work
itself

Mean

3.05

2.72

3.45

3.75

3.01

2.63

Standard
deviation

1.14

1.25

.701

.807

.872

1.22

When Achievement factor is taken into consideration, average job satisfaction level of private
bank employees Mean is 3.05 and Standard Deviation is 1.14. This indicates that the response
from the employees differ greatly when it comes to the feeling of achievement at workplace like
bank. Achievements are the building blocks that enable someone to construct a sense of
themselves as a success. Many of the private bankers expressed a sense of achievement when
talking about the effective use of power and influence. Whilst there was clear frustration about
obstacles in the way of securing leadership roles, when they got to positions of influence they
wanted to do something constructive with their authority. Employees securing higher position in
the organizational organograms are tend to have a positive feeling of achievement where many
of the lower positioned bankers feel that their dependency on the higher authority is so much that
they do not feel the their current positions enable them to give the feeling of achievement.
When advancement factor is taken into consideration, average job satisfaction level of private
bankers Mean is 2.72 and the Standard deviation is 1.25. This indicates that the responding
private bankers were not much satisfied with their advancement opportunity under the current
company policy. MTOs or Probationary Officers, in most cases, enjoy the luxury of getting
promoted earlier, as the program design as well as the company policy to expedite the position of
future the leaders allow them to. On the other hand, Junior Officers, Territory Officers etc. are
obligated to serve the company for elongated periods of time before they see themselves taking
managerial decisions.
When recognition factor is taken into consideration, average job satisfaction level of private
bankers who took part in the survey is, Mean 3.45, Standard deviation 0.701. This shows the
most desirable response, as most of the employees agreed to the fact that their work is well
recognized by collogues, supervisors and customers. They have agreed that the employers value
their hardship and show appreciation in many form of deliberate gratitude.
When Work Itself factor is taken into consideration, average job satisfaction level of private bank
employees Mean is 2.63 and Standard Deviation is 1.22. Some of the employees working in
Relationship manager, Sales Executive etc. feel that their job is complex and interesting enough
to keep the occupied and they can easily indulge themselves in work whenever they find a
challenging assignment, where others who are working of the departments like cash counter feels
no challenge to excel their limit which requires application of high technicalities.
When Responsibility factor is taken into consideration, average job satisfaction level of private
bankers Mean is 3.75 and Standard Deviation is .807. This criterion is one of the lowest deviated
aspect of keeping bankers motivated. Giving employees more responsibility and decisionPage 9 of 12

making authority increases their realm of control over the tasks for which they are held
responsible and better equips them to carry out those tasks. Most of the employees actively seeks
responsibility and but very few of the bankers prefer to be directed or wish to avoid
responsibility, as most of the private bankers have relatively high ambition, and want security
above all.
Finally, when the factor, Personal Growth is taken into consideration, average job satisfaction
level of private bankers who took part in the survey is, Mean 3.01 and Standard Deviation .872.
This criterion also shows more unity among the bankers who participated in the survey. Because
the feel, people who get the chance to grow their skills and expertise take more pride in their
jobs, most of all, everybody including the supervisors value those employees input. Thus the
employees are encouraged to gain new skills. Respondents of the survey have encountered many
on-the-job training and other opportunities to learn new skills, for this reason many employees
feel obliged to have the potential personal growth in their bank.

1.8Conclusion
Private Banks are the major GDP contributor and certainly their employees attitude towards job
will shape its future to remain this sector as lucrative it is in the current economic context. It is
believed that banks pay the highest possible salaries an individual can get in any other similar
industries and our survey validates this finding. Being a nation of scoring high in Uncertainty
Avoidance, people of Bangladesh particularly look for bank jobs as these are considered more
secured. Herzbergs Two-Factory Theory also corroborated the findings of the survey we
conducted.
Private bankers will be highly motivated and have fewer complaints if they have positive
feelings about their Job Status and more Job Responsibilities, as these two factors have scored
the highest in Hygiene and Motivators category respectively. This is the ideal situation for
private bank employees working in Bangladesh where they will be highly motivated and have
few complaints.
Moreover, Company Policy and Advancement Opportunity for the employees need to be
distributed equally. Our survey has identified nonconformity among the respondents of the
survey have answered differently. With the highest Standard Deviation we can assume not all of
the bankers are not happy with the company policy to administer employees and insincerity to be
promote seem to become a headache for many of the employees.

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