1.

Background of the Study

Satisfaction in life is to get what you desire. In other words satisfaction is a fulfilment of a
persons requirements. Job satisfaction is important in an organization because when the
employees are satisfied they work more effectively and efficiently resulting in increasing
productivity and growth of an organization. It also affects the quality of the services of the
employees.Job satisfaction is defined as a positive emotional state of an employee derived
from happiness and pleasure that an employee seeks from his job (Spector, 1997)
A satisfied, happy and hardworking employee is the biggest asset of any organization. In a
challenging world employee satisfaction is a key factor to meet the rapid changes that takes
place in the Sri Lankan market.
Competitiveness of the banking industry over the past two decades has a significant impact
on the level of job satisfaction among bank employees. This in turn led to a tremendous need
for new skills and knowledge in the industry. Currently employees in government banking
organisations require more attention than in the past due to the complexity of their duties.
Employees of any bank are responsible to a large extent for its productivity and profitability.
The management must maintain a higher job satisfaction level in order to increase the
efficiency levels of its employees.This is important because it directly enables the banks to
achieve its corporate strategy and goals. Therefore, the higher management should look into
factors which could affect job satisfaction of their employees.

1.1 Significance of the Study

The study is directed at recognizing the factors affecting job satisfaction, which influence job
performance, of middle level managers of government banksin Sri Lanka. Therefore, the
findings in the study will have both theoretical and practical contribution. It will contribute to
the existing knowledge on factors that can enhance job performance in Sri
Lankangovernment banks. The results have practical use as mangers of government banks
may use it to motivate their employees to improve job performance. This study will helps
banks to know where they are lacking in having satisfied employees in the middle
management level and how they can modify their strategies to address such issues.
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The factors identified as contributing variables towards job satisfaction have been identified
worldwide by different studies. (Jehanzeb et al,. 2012), (Saleem et al,. 2013).However there
is less concern drawn in the context of Sri Lankan Banking industry in identifying the impact
of such variables on the job satisfaction which will ultimately affect the organisational
performance.
Hence this research focuses on identifying whether there is a significant relationship between
the selected variables of working conditions, opportunity for advancement, level of
empowerment, job security and job satisfaction in Sri Lankan Banking industry focusing on
middle level managers in government Banks.

2. Identification of the Problem

2.1 Empirical Gap
No study has been done before on job satisfaction of middle level managers in government
banks in Sri Lankan context although there have been several studies carried out to find out
the factors influencing job satisfaction of common employees of an organization. Therefore
the focus of this study has been to fill such empirical gap where a specific employee segment
is selected by relating the factors with a country specific moderator which is the culture.
Hence this study has been conducted to fulfill the following objectives.

To analyze the employee satisfaction level in state banks.

To analyze the effect of different factors affecting job satisfaction in state banks.
To find out the relationship between job satisfaction and employee performance.

2.2 Research Question

What are the factors affecting the job satisfaction of middle level managers in government
banks in Sri Lanka?

Sub questions for the proposed study are as follows,

Does opportunity for advancement affects job satisfaction in government banks of Sri

Lanka.
Does level of empowerment affects job satisfaction in government banks of Sri

Lanka.
Does working condition affects job satisfaction in government banks of Sri Lanka.
Does job security affects job satisfaction in government banks of Sri Lanka.

Literature Review

Job satisfaction
Job satisfaction is defined as a positive feeling about one's job resulting from an evaluation of
its characteristics. (Stephen, Timothy & Vohra, 2013). Further, amongst the several
definitions which have been put forwarded by many authors, job satisfaction is defined as
pleasurable, emotional state resulting from appraisal of one's job (Pestonjee, 1991).
Significance of Job Satisfaction
In considering the significance of job satisfaction as a subject to be researched on, the book
"organizational behaviour "states that happy workers whom are satisfied with their jobs are
more likely to be productive workers. Accordingly this derives the importance of job
satisfaction to the organizational success which ultimately results in high organizational
performance.(Stephen, Timothy & Vohra, 2013).This fact has been identified in previous
studies in the Banking industry as well where as it has been identified that high level of job
satisfaction increases employees work involvement and task performance. (Zaman, 2013)
Variables affecting job satisfaction
Many studies in the past have worked on in proving the contributing variables for job
satisfaction such as motivation, fringe benefits, working conditions, participative decision
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making process, job stress, communication, organisational policy & strategy, nature of work,
recruitment and selection procedure etc.It has found that there is a significance relationship
between motivation and job satisfaction in the study conducted in Saudi Arabian public and
private sector Banks. This derives the conclusion that the motivation is a common variable
for both public and private sector Banks to achieve job satisfaction. (Jehanzeb et al., 2012)
In the study of identifying determinants of job satisfaction of Bank employees in
Bahawalpur,the study has identified that there is

a relationship between job

stress,communication,organisational policy & strategy, nature of work, recruitment and

selection procedure.Amongst the tested variables,organisational policy & strategy and nature
of work has a strong impact on job satisfaction whilst job stress and communication has a
weak impact on job satisfaction. (Saleem et al., 2013).
Further,a link between fringe benefits and job satisfaction in USA has been
identified,however the research indicates that the level of impact on job satisfaction is not yet
clearly identified (Artz, 2010).In Sri Lanka, focusing on the government sector, the sector
itself does not provide fringe benefits to the employees, hence it would not be feasible to test
this variable in Sri Lankan context.
Another study which took a survey in Nigerian Banking industry considers salary, promotion,
incentives, award, relationship, and benefits all as motivating factors and concludes that
salary and promotion has a high impact on job satisfaction (Osibanjo et al,. 2014).This
signals that promotion in other terms which can be classified as opportunity for growth as a
variable to focus more in the context of Sri Lankan Banks.
Further studies on variables affecting job satisfaction has identified the importance of the
open and development climate providing the employees more autonomy, participation in the
decision making process. The study has not taken opportunity for advancement specifically
as a variable, however it can be considered that the development culture would facilitate
opportunity for advancement.Further, the study stressed that job security which is already

proved to be a positive variable towards job satisfaction is not merely sufficient to achieve
high level of job satisfaction in present circumstances (Chowdhary, 2013).
Differences in the factors affecting job satisfaction in public sector Banks in
Comparison with Private sector Banks
In concentrating on the variables which affects job satisfaction in the public sector Banks,
there are several studies which have studied the differences of job satisfying variables in
public sector and private sector. As such factors which satisfy private sector Banks
employees more is pay increments, training and development. Hence it was recommended
for public sector Banks focus more on these two variables in order to enhance the level of job
satisfaction (Sehgal, 2012).
Further, it can be identified that job satisfaction is derived from different variables for private
sector employees and government sector employees. There are certain factors which are
hygiene factors for private sector employees whereas same can be applied as motivational
factors for government employees.Accordingly, government sector employees can be
motivated by achievement, advancement, interpersonal relations, working conditions, policy,
personal life where as private sector Bank employees can be motivated through
achievement,interpersonal relations, supervision, policy (Azash, 2011).
Motivation to work which ultimately derives job satisfaction. Motivation to work is a product
of salary, fringe benefit, efficiency in work, quality supervision, and co-worker relationship
and private sector employees are enjoying these factors more compared to public sector
employees. Further,in absence of such factors in public sector motivation to work is derived
from factors such as job content, self-development, recognition, autonomy, interesting work
(Rashid, 2012).
Factors affecting job satisfaction in Sri Lankan context
Having the factors affecting job satisfaction identified worldwide, the concentration in this
study leads towards studying the link between these variables in terms of Sri Lankan context.
One such studied factor is job stress and it has not been able to establish a strong negative
5

relationship between job stress and job satisfaction whereas job stress is an inevitable
phenomena (Harees, 1998).
Some other factors such as payment, happy to work, promotion, subordinatesupervisor
relationship, direction of supervisor, achievement, appreciation, participation in decision,
making, proud to work and enough descriptions as determinants of job satisfaction in Sri
Lankan Banking sector. (Sivesan&Velnampy, 2012).
However, the variables of working conditions, opportunity for advancement, level of
empowerment, job security are not tested empirically in the context of government Banks of
Sri Lanka,focusing on middle level managers.Accordingly,the present research extends the
research focusing on said variables in the context of Sri Lankan government Bank industry.

Development of Hypothesis

Based on the above literature review following hypotheses have been developed.

H1: There is a significant positive relationship between opportunity for advancement

and job satisfaction.

H2: There is a significantpositive relationship between working condition and job

satisfaction.

H3: There is a significantpositive relationship between level of empowerment and job

satisfaction.

H4: There is a significantpositive relationship between job security and job

satisfaction.

H5: Sri Lankan culture significantly moderates the relationship between Job
Satisfaction and Working Condition, Opportunity for advancement, level of
empowerment, Job security.

Conceptual Framework

Figure 1: Proposed Conceptual Model

Working Condition

Opportunity for
Advancement

Job Satisfaction

Level of
Empowerment
Job Security

Culture

Source: Authors
Based on the above literature review, wepropose the conceptual model shown in the Figure 1.
As illustratedin Figure 1, Working Condition, and Opportunity for Advancement, Level of
Empowerment, and Job Security are the observed independent variables

Independent Variables
Following are the independent variables which affects the job satisfaction level of the middle
level managers in public sector banks in Sri Lanka.
Working Condition:
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Gerber et al (1998) Defined working condition as: working conditions are created by the
interaction of employee with their organizational climate, and includes psychological as well
as physical working conditions Therefore, we adopt the definition of working conditions as
follows: Working conditions refers to the working environment and aspects of an
employees terms and conditions of Employment ( Ali et al.,2013, p.69, as cited in Gerber et
al., 1998)
The conditions under which a job is performed can be different from those completely
comfortable to those very difficult and dangerous to employees life and health. Difficult
working conditions can be influenced by:
external factors that include climate meteorological conditions, temperature, humidity, drafts,
lighting in the workplace, noise and interference, gases, radiation, dust, smoke and other
harmful factors; (2) subjective factors that include gender an d age of the worker, fatigue,
monotony, unfavourable posture during work, etc.; (3) factors related to the organization of
production such as duration of the work shift, work schedule, working time, work pace,
excessive strain etc (Bakotic & Babic, 2013)

Opportunity for Advancement:

Opportunity for advancement is one of motivational factors of the Hertzbergs Two Factor
Theory which creates a positive job attitude in the mind of an employee and establishes a
ultimate result of Job satisfaction in the long run.
Level of Empowerment:
Empowerment involves giving employees the autonomy to make decisions about how they
go about their daily activities (Carless, 2004; Haas, 2010). As service industries become more
competitive, the importance of empowerment in service industries is increasingly recognized
as a key to catering to more and more demanding customers (Boshoff and Allen, 2000).
Job Security:
Employment security is a concept that is relatively new in the policy debate as well as in the
8

academic arena. It is used rather loosely and not always conceptualized in a very precise
manner. It is often used as a synonym for job-security, which is a related concept, but not
entirely the same. Employment security generally refers to protection against unfair or
unjustified dismissals. According to the most commonly used definition, employment
security means that workers have protection against arbitrary and shortnotice dismissal from
employment, as well as having long-term contracts of employment and having
employment relations that avoid actualisation (ILO 1995, p.18).
Dependent Variable
Job Satisfaction:In the proposed study, job satisfaction is taken as the dependent
variable.There are various factors affecting job satisfaction. In the proposed study working
condition, opportunity for advancement, level of empowerment and job security are
considered as the factors which affects positively on job satisfaction.

Moderator
Culture:
Schhneider (1983) describes organizational culture as value systems and assumptions which
guide the way the organization runs its business. Desatnic et al. (1986) define culture as the
personality of the organization. According to Gutkinecht and Milller (1990) culture
represents the organizations soul, purpose and foundation. Kerego and Muthupha (1997)
describe that organization and people positively influence one another to achieve better
results. He argues that employees in the organization are the role model and because of them
organizations become more successful.

Methodology

6.1 Research Design

This research will adopt the correlation research method with quantitative approach. Data
will be collected in the form of questionnaire which will be filled by the middle level
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managers (assistant manager, deputy manager, manager, senior manager & chief manager
levels) working in public sector banks of Sri Lanka. There are four public sector banks
operating in Sri Lanka namely; Peoples Bank, Bank of Ceylon, National Savings Banks and
State Mortgage and Investment Bank. Out of these four banks, three of them have more than
50 branches island-wide namely; Peoples Bank, Bank of Ceylon and National Savings
Banks, thus these three banks were chosen for the proposed study. This study will focus on
working condition, opportunity for advancement, job security and level of empowerment
asindependent variables and job satisfaction is considered as the dependent variable. Purpose
of the study is to determine a relationship among these measured variables

6.2 Survey Instruments

The survey instrument for the proposed study will be a self-administrated questionnaire
which will be distributed to the middle level managers of the selected banks.Selfadministrated questionnaire method, rather than making personal interviews, will be used due
to the convenience of gathering responds from large number of middle level managers in the
selected banks. The survey will consists of questions regarding the identified variables where
response will be based on 5 point Likert scale ranging from 1=strongly disagree to
5=strongly agree.

6.3 Data Collection and Sampling Techniques

The target population for the proposed study will be the middle level managers of the
selected public sector banks in Sri Lanka.Three main public sector banks, namely Bank of
Ceylon, National Savings Bank, and Peoples Bank will be selected for P rimary data
collection for the researchand it will be conducted through a questionnaire survey. The population
of the middle managers of three banks is approximately around 5000 out of which 357 will be
selected for the sample keeping a provision for the margin of error 5%. (Lewis

&Saunders,

2007) and an employee will be treated as the sample unit. Stratified sampling technique will

be used to gather data. The sample selected will be based on bank and gender.
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Employeesproductivity In Manufacturing Companies In Sub-Saharan African Context: Case
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Artz, B. (2010). Fringe benefits and job satisfaction.International journal of manpower,
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Azash, S. M., Safare, R., & Kumar, M. S. (2011). The Motivational Factors And Job
Satisfaction: A Study On Selected Public And Private Sector Bank Employees In Kadapa
District, Andhra Pradesh. International Refereed Research Journal, 2(4), 161-168.
Bakoti, D., &Babi, T. (2013). Relationship between Working Conditions and Job
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commercial banking sector.
ILO. (2001) "Employment Security: Conceptual and Statistical Issues," Geneva:International
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Jehanzeb, K., Rasheed, M. F., Rasheed, A., &Aamir, A. (2012).Impact of rewards and
motivation on job satisfaction in banking sector of Saudi Arabia.International Journal of
Business and Social Science, 3(21), 272-278.
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Lewis, P., Thornhill, A., & Saunders, M. (2007).Research methods for business
students.Pearson Education UK.
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