Meezan Bank Thesis Final

CHAPTER 1
Attitudes and Perceptions of Employees towards Islamic Banking INTRODUCTION

HAILEY COLLEGE OF BANKING & FINANCE 1

CHAPTER 1

Chapter 1
Introduction
Islamic banking in theory has evolved since 1920s while its implementation
started in 1960s for as a mean of alternative to the conventional banking in an effort to
establish an interest free banking system based on Islamic Laws of justice and
welfare. Pakistan is one of the three countries (others include Iran and Sudan) in
which efforts to establish an interest free economic system have been made officially.
In response to these efforts, the first Islamic bank started its operation in 2002 as
Meezan Bank Limited. With the passage of time, six banks are operational in
Pakistan. While these banks are performing well in terms of profits it is argued
whether these institutions truly follow the Sharias guidelines or not. Justification,
arguments are resolved or being in a process of resolution to completely adopts a
system that present a complete Islamic economic structure in whole world.
As concerned the criticism that are real in nature but still justification is
required while using KIBOR as a benchmark rate. Fact relating to this dilemma that
92 % of banking structure prevailing in Pakistan is on interest base or conventional
Banking system and only 8% sector represent Islamic Banking. Logic that is needed
to determine the KIBOR as per the policy of State Bank of Pakistan is not fulfilled in
representation of only 8% Islamic Banking system.
Many of view those are very much concerned to find a justification how to
differentiate the conventional banking with Islamic banking due to apparently same
presentation of products are offering by both systems. Meanwhile with the
responsibility of taking Islamic Banking system in a successful way along with the
education factor is necessary.
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Area of concerned here is Meezan Bank that is established in 2002 with the
aim to initiate the step toward Islamic Banking and distribution of equal justice in
society. Due to assets base banking the economic activity generate that reinstate the
economy towards stabilization. Todays whole world is following the role of our
Islam to make their economy better or asset base where the chance of risk minimum
and distribution of equal rights along with economic activity generation prevail.
Meezan Bank Alhamdulillah with the blessing of God open its 275 branches in the
end of 2011 and showing increasing trend on after tax profit of 130% on the end of
their third quarter as compare to the last year in same period.
1.1 Problem Statement
Do the employees of Meezan Bank Satisfied with their working and its products?

1.2 Significance of this Study
This research will explore the attitude and perception with which the
employees are working for the bank. It will also elaborate the motivation behind the
working for Meezan Bank i.e. whether they are working for the growth of Islamic
Banking as the Vision of Meezan Bank states, or they are just working for monitory
benefits.
This research will help the bank
To identify whether the Employees are satisfied with their job and the
perquisite attached with it.
To identify the Employees attitude and perception towards Meezan Banks and
its product (Now offering)
To identify the misconceptions of the employees related to available products
(if any)
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To identify whether there is any need to amend the products to compliance
with Sharia absolutely.
1.3 Limitations
Owing to the time and cost of our study, it is confined to the area of Lahore
only. Its sample includes Meezan Bank Ltd due to providing a complete Islamic Bank
in Pakistan. Sample will collect data on the basis of convenient sample method.
CHAPTER 2
Attitudes and Perceptions of Employees towards Islamic Banking LITERATURE REVIEW

CHAPTER 2

Chapter 2

Literature Review

A positive emotional state resulting from evaluating ones job experience
(JOHN H. JACKSON, 2007)
It is most adequately conceptualized as a personality evaluation of conditions
existing on the job (work, supervision) or outcome that arises as a result of having a
job (Pay, security). It is the perception of internal responses (i.e. feelings) (Rao,
2003)
Job Diagnostic Survey identified five job characteristics thats determined
job satisfaction: skill variety, task identity, task significance, and autonomy and job
feedback (Hackman and Oldhams, 1974)
Job satisfaction determinants such as distributive justice, supervisory
support, the internal labor market, integration among coworkers, and pay (Agho,
Mueller and price, 1993)
The attainment of ones important job values, providing these values are
congruent with or help to fulfill ones needs ( Locke, 1976)
The most important values of conditions conductive to job satisfaction are:
(1) mentally challenging (2) personal interest in the work itself (3) work which is not
physically tiring (3) reward for performance (6) high self-esteem on the part of the
employee (p. 1328) (Frazier, 2009)

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Human life has become very complex and complicated now-a-days. In modern
society the needs and requirements of the people are ever increasing and ever
changing. Any business cab achieve success and peace only when the problem of
satisfaction and dissatisfaction of workers are felt understood and solved, problem of
efficiency absenteeism labor turnover require a social skill of understanding human
problems and dealing with them scientific investigation serves the purpose to solve
the human problems in the industry.
Job satisfaction is not independent in all job facets and that satisfaction with
one facet might lead to satisfaction with another. Female employees were found to be
less satisfied with all facets except pay. Those with lower educational qualifications
were least satisfied. Self-reported job performance was found to increase with tenure
(Alf Crossman, 2003)
Job Satisfaction indicates that personal, job, and organizational climate factors
influenced the ego investment or job involvement of people in their jobs, which in
turn influenced the intrapsychic reward of sense of competence that they experienced,
which then directly influenced employees' job satisfaction (Sekaran, 2006)
Job satisfaction and organizational commitment of employees have a
significant impact on service quality delivered. The affective component of
commitment was found to be more important than job satisfaction in determining
service quality of customer-contact employees (Neeru Malhotra, 2004)
Job satisfaction resulted from high job rewards and low job costs whereas
strong job commitment was produced by high rewards, low costs, poor alternative
quality, and large investment size. Whereas the impact of job rewards on satisfaction
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and commitment remained relatively constant, job costs seemed to exert an
increasingly powerful influence over time. Investment size also exerted greater impact
on job commitment with the passage of time. Just prior to their leaving, the job
commitment of Ss who left was best predicted by a combination of rewards, costs,
and alternatives. Ss who stayed and those who left differed from one another with
regard to changes over time in each investment model factor, those who left
experienced greater decline in rewards, increase in costs, and increase in alternative
quality, and decrease in investment size than those who stayed (Rusbult & Farrell,
1983)
Quality leader member exchange mediated positive relationship between a
mastery organization and leader rated in role job performance leader rated innovative
job performance, and job satisfaction. In contrast, a performance orientation was
negatively related or unrelated to those outcomes. These findings suggest that
employees with strong mastery orientation are more effective on the job because they
tend to establish higher quality exchange with their supervisors (Onne Janssen, 2004)
Pay satisfaction, therefor refer to an employees liking for or disliking of the
employers compensation package, including pay and benefits. Even though at least
3500 scholarly articles have been written about pay satisfaction, research on it is not
very definitive. It has failed to find convincing evidence that workers satisfaction
leads to increase the productivity. And although it seems logical to assume that
employees derive satisfaction from being paid well or getting desired benefits or
services (Ivancevich)
This research study analyzed the impact of organizational justice as
encompassed by two components, namely distributive justice and procedural justice
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on employees job satisfaction, organizational commitment, and turnover intention.
And the finding implied that the higher the level of employees perception towards
fairness to the means used to determine outcomes (procedural justice) and fairness of
the outcomes employees receive (distributive justice) tended to increase the level of
employees job satisfaction, organizational (Choong Kwai Fatt, 2010)
This report covered the social interactions that occur within supported
employment settings between worker with disabilities and nondisabled coworkers.
This report also covered the job support at work settings, to understand the
relationship between formal, job coach support service and natural job support
(Hagner, 1989)
This research paper estimates the impact of promotion and promotion
expectations on the job satisfaction. Having received a promotion in the past two year
leads to increase job satisfaction, even while controlling for the workers current
wage, wages rank within her peer group and wages growth. Workers who believe a
promotion is possible in the next two years also report higher job satisfaction.
Additionally, past promotion have lingering, but fading impacts on the job satisfaction
(Kosteas, 2007)
In this report two major question were addressed. First, it was proposed that
supervisor support would be weaker source of job satisfaction in companies with
higher level of team working. Multiple analyses indicated that the extension of
teamwork at the company level of analysis moderated the relationship between
individual perception of supervisor support and job satisfaction. Second, it was
proposed that the extend of teamwork would be positively related to perception of job
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autonomy but negatively related to perception of supervisory support (MARK A.
GRIFFIN, 2001)
Worker with higher level of education is generally more satisfied than worker
with lower educational levels. Employees who are too highly educated (or too skilled
or too intelligent) for their job tend to be more dissatisfied (Richard W. Sears (Psy.D.),
2006)
The relationship of age to job satisfaction was investigated. Subjects were
1707 public employees in the United States who responded to questionnaires. The
results showed that job satisfaction increased with age. Younger employees were less
satisfied overall with their jobs, but especially with the intrinsic characteristics of the
work. Older employees were more satisfied with the extrinsic characteristics (Wilbur,
1985)
Job satisfactions in relation with performance are very important issues. In job
satisfaction approaches that suggest the satisfaction leads to exerting more effort by
employees and result in higher level of performance. And the performance indirectly
leads to satisfaction as performance level effect the rewards employees receive. And
last approach that suggests that there is no specific relation between job satisfaction
and performance (Saiyadain, 2006)
This article cover the meta-analysis to determine the relation between
satisfaction turnover correlations across studies and unemployment rates at the time
those studies was conducted. On the basis of theoretical work by Muchinsky and
Morrow (1980), we hypothesized that low relations would be found in studies
conducted during times of high unemployment and limited employment opportunity,
and high relations would be found in studies conducted during times of low
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unemployment and expanded opportunity. Results supported the hypothesis;
correlations were found that ranged from .18 to .52 between unemployment rates and
the magnitude of satisfactionturnover relations across studies (Carsten & Spector,
1987)
This paper is concerned with the relationship of job satisfaction to certain
factor in workers behavior, especially workers attendance in work. The term Job
Satisfaction has been taken to include not only personal satisfaction with work but
also efficiency and satisfactory work relationships. In fact optimum labor productive,
minimum per unit cost of production and maximum personal satisfaction have come
to be universally considered as goal of the satisfaction (Sinha, 1965)
The strongest determinant of creativity at work is the opportunity to engage in
citizenship behavior exactly the same pattern as for the job satisfaction. Creativity,
however, has fewer additional causes. Mismanagement, resistance, and infighting do
not directly influence creativity at work as they do job satisfaction. Mismanagement
has a large influence on creativity, but this influence is realized indirectly through
mismanagements negative effects on all three aspects of worker agency. Professional
settings, conversely, encourage greater creativity at work. The positive effect of
professional setting on creativity at work rests on the training. The deep knowledge
base, and the substantial autonomy of professionals to decide how best to do their
work (Friedson 1994) (Hodson, 2001)
Attitude is your general disposition your mental starting point for viewing
life and the people and event in it. From your viewpoint, attitude is the way you look
at thing mentally and it all starts inside your hand. For others, your attitude is the
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overall mood they interpret from what they see you say and do (Elwood N. Chapman,
2001)
Nowhere is your positive attitude more appreciated by the other then when
you are at work. Business competition is very demanding due to its fast moving pace,
budget are tight, and the work itself be physically demanding. A person with positive
attitude makes the work more satisfactory and confortable for him and for others.
Everyone I an organization maintain positive attitude to build a team spirit. Some
people have difficulties in their home life. So its a positive attitude that helps them to
sustain their behavior and work in a clam environment and does the other jobs easy.
Employees spend hour while performing their assigned task so its a positive attitude
thats provide them courage to suffer all that stuff (Elwood N. Chapman, 2001)
Perception of social environment as being subjective group culture that is
learned through cognitive structure (belief, association, stereotypes) that are specific
to the culture and which modulate evaluation (Triandis (1977)
Individuals perception with relation to work environment that allow them to
situate themselves to identify places, to do their job, to face danger and an emotional
evaluation and thus to consider it as a factor of job satisfaction or dissatisfaction. One
of the important modes of this interaction is the perception of the environment that
brings to light two phenomena that we will look at more closely: individual carry with
them image of space as well as idea on work; at the same time, these image are an
evaluation of the environment (Fischer, 1997)
Thirty years ago, Islamic banking was unheard of. It was considered as,
mentioned by the authors, as "wishful thinking". It is only in the early 1970s, and
especially after the launch of the First International Conference on Islamic Economics
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organized by King Abdul Aziz University in Makkah, Saudi Arabia and the
establishment of the first commercial Islamic Bank, Dubai Islamic Bank (DIB) in the
United Arab Emirates followed by the establishment of the international Islamic
Development Bank (IDB) in Jeddah, Saudi Arabia and the many private and semi-
private commercial Islamic banks that were established after that in Egypt, Sudan,
Kuwait, Bahrain, etc. that Islamic banking established itself not only as a feasible and
viable alternative of financial intermediation but also as an efficient and productive
way of undertaking financial intermediation between surplus and deficit economic
units (MOLYNEUX, 2006)
If on the maturity of his quad Hasan the debtor is experiencing hardship and is
unable to pay, no extra charges or any form of interest should be imposed. On the
contrary, the debtor should be given time utile he is able to repay the loan. According
to Quran the best course of action would be to forgo even the principal and so relieve
the suffering of the debtor altogether if the creditor can afford to do so. The Quran
says: it is better if you give (even the principal) as charity (Saeed, 1996)

CHAPTER 2

2.1 History of Islamic Banking

During the Islamic Golden Age, early forms of proto-capitalism and free
markets were present in the Caliphate, where an early market economy and an early
form of mercantilism were developed between the 8th-12th centuries, which some
refer to as "Islamic capitalism". The monetary economy of the period was based on
the widely circulated currency the dinar, and it tied together regions that were
previously economically independent.
A number of economic concepts and techniques were applied in early Islamic
banking, including bills of exchange, partnership (mufawada) such as limited
partnerships (mudaraba), and forms of capital (al-mal), capital accumulation (nama
al-mal), cheques, promissory notes,

trusts (Waqf), transactional accounts, loaning,
ledgers and assignments. Organizational enterprises independent from the state also
existed in the medieval Islamic world, while the agency institution was also
introduced during that time. Many of these early capitalist concepts were adopted and
further advanced in medieval Europe from the 13th century onwards (Wikipedia,
2009)
Islamic finance has gripped the world with a strong fervor and passion.
Interest in this Discipline has proliferated to almost 60 countries, going beyond the
Islamic world to the leading global financial centers. For quite some time, United
Kingdom has adopted an open door policy and provided a level playing field to
Islamic finance and now Singapore is following its lead. Every day, Islamic finance is
breaking new boundaries and new frontiers. Leading Islamic banks have fast spread
their network from home base to develop a regional and global reach. Some of the
Middle East banks are now entering into African and Central Asian markets and are
sizing up Australian financial market.
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Motivation and renewed interest in Islamic finance industry stems from its
strong economic, financial and social considerations, backed by its unique features.
Most significant is its appeal to add to financial diversity and innovation being
skewed towards (i) asset backed and equity based transactions, which promote
entrepreneur friendliness and consideration of project viability; (ii) equitable
distribution of risks and rewards among the stakeholders; and (iii) inculcating market
discipline and higher ethical standards given its emphasis on non-exploitation and
social welfare. In the wake of high Asian domestic savings rates and buildup of the
regions foreign exchange reserves as well as oil surpluses of Middle East in the last
few years, Islamic finance is now also emerging as a way to wealth management, both
of richer nations and high net worth individuals. (Akhtar, 2007)

While the world is now recognizing the significance of Islamic finance
industry, in Pakistan, as early as in 1948, Mr. Muhammad Ali Jinnah emphasized the
virtues of Islamic principles and in his address at the inauguration of the State Bank of
Pakistan (SBP), said:
I shall watch with keenness the work of your Organization in evolving banking
practices compatible with Islamic ideas of social and economic life. We must work
our destiny in our own way and present to the world an economic system based on
true Islamic concept of equality of manhood and social justice.
1

1
Quaid-e-Azam: Speech at the foundation laying stone of the State Bank of Pakistan, 1st July 1948.
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2.2 About Meezan Bank

14 August 1947, the inception of Pakistan as the first Islamic Republic created
in the name of Islam. CII presents report on the elimination of Interest genuinely
considered to be the first major comprehensive work in the world undertaken on
Islamic banking and finance in 1980. Commercial banks transformed their
nomenclature stating all Rupee Saving Accounts as interest-free. In 1985, however,
foreign currency deposits in Pakistan and foreign loans continued as before.
Procedure adopted by banks in 1985 was declared un-Islamic by the Federal Shariat
Court (FSC). The Government and some banks/DFIs made appeals to the Shariat
Appellate Bench (SAB) of the Supreme Court of Pakistan in 1991. In 1997 Al-
Meezan Investment Bank is established with a mandate to pursue Islamic Banking.
Mr. Irfan Siddiqui appointed as first and founding Chief Executive Officer. In 1999,
the Shariat Appellate Bench of the Supreme Court of Pakistan rejects the appeals and
directs all laws on interest banking to cease. The government sets up a high level
commission, task forces and committees to institute and promote Islamic banking on
parallel basis with conventional system. In 2001, the Shariah Supervisory Board is
established at Al- Meezan Investment Bank led by Justice (Retd.) Muhammad Taqi
Usmani (Chairman). State Bank of Pakistan sets criteria for establishment of Islamic
commercial banks in private sector and subsidiaries and stand-alone branches by
existing commercial banks to conduct Islamic banking in the country. In 2002,
Meezan Bank acquires the Pakistan operations of Societal Generals and concurrently
Al Meezan Investment Bank converts itself into a full-fledged Islamic commercial
bank. The first Islamic banking license is issued to the Bank and it is renamed Meezan
Bank. President General Pervez Musharraf inaugurates the new Islamic Commercial
Bank at a formal ceremony in Karachi. Meezan Bank establishes itself as the pioneer
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of Islamic Banking in Pakistan and quickly establishes branches in all major cities of
the country. A wide range of products are developed and launched consolidating the
Banks position as the premier Islamic Bank of the country Al Meezan Investment
Management Limited (AMIM), the asset management arm of Meezan Bank,
introduces Meezan Islamic Fund (MIF), the countrys first open-end Islamic Mutual
Fund in 2003. In 2004, the State Bank establishes a dedicated Islamic Banking
Department (IBD) by merging the Islamic Economics Division of the Research
Department with the Islamic Banking Division of the Banking Policy Department. A
Shariah Board has been appointed to regulate and approve guidelines for the emerging
Islamic Banking industry. The Government of Pakistan awards the mandate for debut
of international Sukuk (Bond) offering for USD 500 million. The offering is a success
and establishes a benchmark for Pakistan. Meezan Bank acts as the Shariah first
customer of Islamic Insurance (Takaful) by signing the first Memorandum of
Understanding MOU with Pak-Kuwait Takaful Company Limited (PKTCL). The
signing of this MOU has ushered Pakistan into a new era of Islamic Insurance
(Takaful). In 2006, a number of new dedicated Islamic Banks, namely Bank Islamic
and Dubai Islamic Bank, commence operations in Pakistan. Meezan continues its
leadership position in the industry by more than doubling its branch network to a total
of 62 branches in 21 cities, clearly establishing itself as the largest Islamic Bank of the
country. Meezan Bank becomes the first Islamic bank to introduce 8 am to 8 pm
banking at selected branches in Karachi. (Bank, 2011)

CHAPTER 2

2.3 Bank under Study
Private Bank
o Meezan Bank Ltd

CHAPTER 2

2.4 Theoretical Framework
Pay, Distributive Justice, Promotion, Supervisory Support, Level of education,
age, Products & Services are such an impact on Employees Job Satisfaction.

PAY
(Ivancevich)

Distributive Justice
(Choong Kwai Fatt, 2010)

Promotion
(Kosteas, 2007)

Supervisory Support
(MARK A. GRIFFIN, 2001)

Level of Education
(Richard W. Sears (Psy.D.), 2006)

Job Satisfaction
(Frazier, 2009)
Products & Services
(Meezan Bank Ltd)
Age
(Wilbur, 1985)

Dependent Variable
Independent Variables
Perception
(Fischer, 1997)

Attitude
(Elwood N. Chapman,
2001)

CHAPTER 3
Attitudes and Perceptions of Employees towards Islamic Banking RESEARCH METHODOLOGY

CHAPTER 3

Chapter 3
Research Methodology
The Methodology describes the different research methods and gives explanation of those
chosen methods for a study and the reason for the choice. Furthermore, this chapter will
describe the chosen sampling technique, the way the data for the study chosen, and the
statistical technique used to analyze the data.
3.1 Research Design
The design of the research is a path that leads the whole research work from
starting point to the end. It is like the blueprint of research work, which defines the
whole research process. It describes the type of research, variables and their
relationships, sphere of the research and its limitations etc.

The area of Employees Satisfaction toward organization and products in the
sphere of Islamic banking is not new to the researcher. There is a considerable volume
of research work in the area, though the literature of Islamic banking is under the
development process yet. We chose descriptive study keeping in view the research
work already done in the field of Islamic banking. Descriptive research is carried out
in those areas where a lot of research work has been done and basic understanding of
the variables and their effects has been established. Our research design is based on a
pre-developed tool for the testing of satisfaction level in reference of organizational
provided perquisites and available Islamic Banking products. In describing the effects
and relationships of the variables involved this tool will serve as a scale.
An understanding of the variables and the scale has already been established
using secondary data collection through literature review in the previous chapter. The
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data for the research purpose will be collected using questionnaire developed on the
basis of the literature review.
3.1.1 Population of the Study
Population of the study refers to the entire group of people, events or things of
interest i.e. the whole universe of the area of study. In our research, population
comprises of Meezan Bank employees only.
3.1.2 Element of the Study
Element of the study means each individual unit of the population. In our
study it refers to each Employee working in Meezan Bank is the element of the study.
3.1.3 Sample of the Study
Sampling means selecting a few elements out of whole population for the
purpose of study as studying the whole population is impossible. Sample is selected
using some pre-determined method. Keeping in view the limitations applied to this
study, we chose convenient sampling. We selected only those respondents for the
purpose of our research who were easily available and willing to provide information.
We chose a sample of 60 respondents from different areas of Lahore city.
3.1.4 Sphere of the Study
Sphere of the study describe the applicability of the research work. In our case
the applicability of the research is very limited as we chose only the area of Lahore
city keeping in view the time and cost limitations.
3.2 Variables
In our study of the previous literature about the topic nine variables are
identified which effect the Employees attitude and perception towards Islamic
Banking. These variables are Pay, Distributive justice, Promotion, Supervisory
support, Level of education, Age, Product & Services, Attitude and Perception.
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3.3 Data Collection
Data collection is paramount in the research work and quality of data ensures
the quality of research work. Data collection is carried out in two different stages.
Firstly data is collected for understanding of the topic of the research and building
research design. This data is mostly collected using already published research work
and other sources like Internet, library books, Govt. censures etc. Such data is called
Secondary Data. This constitute the second chapter of our study i.e. Literature
Review. We collected our secondary data mostly through online available journals
and articles through Internet.
Secondly, data is collected specifically for the topic Attitude and Perception of
employees towards Islamic Banking using tools like questionnaires, surveys,
interviews, group discussion etc. Such data collected typically by the researcher
himself is called Primary Data. We developed a questionnaire using the variables
identified from the secondary data or literature review, for the purpose of primary data
collection. The questionnaires were personally administered by the researchers to the
respondents and have filled thereof.
3.4 Data Analysis
Data analysis is an important step in the research process. It involves not only
analyzing data for interpretation but also for possible errors of omission or
perceptional biases etc. The type of analysis to be carried out depends on the type of
data collected. In the case of quantitative data, which is the data collected in this
study, statistical tools are applied to quantify the data collected and interpreting
thereafter. With the advent of computer technology this analysis and interpretation
can be performed by special developed software called SPSS. We used SPSS version
14 and Microsoft Excel for the purpose of our data analysis and interpretation.
CHAPTER 4
Attitudes and Perceptions of Employees towards Islamic Banking DATA COLLECTION & ANALYSIS

CHAPTER 4

Male
85%
Female
15%
Gender
Chapter 4
4.1 Data Analysis

The data gathered through questionnaire will be analyzed using SPSS and Microsoft
Excel software. In order to make our analysis comprehensive and easy to understand, the
data interpretation will be assisted with Pie-chart diagrams. This data analysis comprises of
the comparison of data collected against ten variable of interest.

Total 60 people participated in Survey Questionnaire for the project Attitudes
and Perceptions of Employees towards Islamic Banking in which the ratio of male
respondent is greater than female due to no hiring of female staff but according to
their management now they are emphasizing to provide equal rights to both gender.

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60%
24%
13%
3%
Age
20 - 30
31 - 40
41 - 50
Above 50

Many of the respondents belong to the category of 20-30. This shows and as
per MBL management they are rather interested to hire new blood with good
education to provide a better service to compete in banking industry.

33 of the respondents out of 60 are single and 27 are married. Which shows a
significant trend of hiring new blood or talent is to promote the Bank.

Single
55%
Married
45%
Merital Status
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Under
Graduate
0%
Graduate
35%
Post Graduate
65%
Educational Qualification

21 respondents out of total 60 are Graduate, 39 are Post Graduate and not a
single one is Under Graduate. Which shows the bank hiring process is improving day
by day. By virtue of providing good service to stand in aggressive competition bank
HR Department is hiring educated employees.
As per the Bank management or on the basis of interview conducted Meezan
Bank adopting a strategy to preferably hire the people that possess a Islamic Banking
background due to developed better understanding and promote the bank in positive
way.

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3%
10%
5%
3%
2%
8%
2%
8%
10%
8%
12%
10%
2%
17%
Designation
Area Manager
Branch Manager
Cashier
CD Incharge
Chief Cashier
Clearing Officer
Manager SQC
Operation Manager
Operation Officer
PBM
PBO
SQC
Supervisor
Trainee Officer
Less 2
32%
3 - 5
28%
6 - 10
20%
Greater 10
20%
Job Experience

Diversified portfolio of the people with common objective is very helpful for
fulfillment our research. The people that we chose on convenient basis for our
research questionnaire, most of them belong to or come from conventional banking.
So the area of our research will also conclude the reality of joining the Meezan Bank
either on the basis of Islamic Banking or for the sake of promotion and perquisite
attached with offered post.

19 out of 60 respondents are having less than 2 year experience, 17 having 3 to
5 year of experience, 12 having 6 to 10 year and remaining 12 possess more than 10
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10K - 20K
34%
21K - 30K
33%
31K - 40K
5%
Greater Then
41K
28%
Monthly Salary
2%
3%
37%
28%
30%
I have a good understanding about organization
mission and objectives
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
year of Banking experience. Which show the Bank policy to hire most experience
people that provide the bank with ideas to develop the product or design the strategy
to grow in aggressive competition

Major portion of the respondents fall in the salary range of 10 to 30 which
present the trend of this remuneration depicting that Meezan bank is offering
competitive salary packages as per the market standing.

A number of respondents chose disagree, mildly disagree and mildly agree due
to multiple reasons as misunderstanding of Islamic Banking concepts or most of the
respondents belong to other conventional Banking system. Major reason behind
disagreement is lack of training. But now a days bank concentrate to hire new blood
in the system by providing them proper training.
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8%
12%
32%
30%
18%
Policies and procedures are well defined
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
5%
8%
18%
37%
15%
15%
2%
Employees are encouraged to contribute / share their
ideas and feedback with management
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
N/A

Disparity between agreement levels is due to adoption of routine procedure.
One of the basic reasons that reveal when we interviewed the bank officers that
polices need to be update many disputed point still in policies that doesnt provide
clear understanding to cater real situation.

As per interviewed with the management some of the confusion that tackled
by the management at branch end identified. Employees from the other organizations
hired by Meezan HR Department feel hesitate to contact to higher management or
might be they possess the viewpoint that they might be afraid of taking initiated or
being exposed.

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8%
12%
10%
17%
42%
8%
3%
Events / Changes in the organization are
communicated well in time to employees
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
7% 2%
18%
51%
22%
My supervisor communicates well with
subordinates
Strongly Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree

Many of the respondents chose agree thats includes upper level staff
(Regional Manager, Branch Manager, Operation Manager). Reason that the above
said employees are having email account allocated by the IT Department and the
problem of disagreement level starts from the non-dissemination of information to
lower staff.

Most of the employees are satisfied with the above said statement due to
friendly environment at Branch level. And a major portion of the respondent chose
disagreement due to the working condition in all branches is not same its depend on
the management of that particular branch.
CHAPTER 4

2%
25%
42%
28%
3%
My relation with my supervisor
Disagree
Mildly agree
Agree
Strongly Agree
N/A
3%
13%
37%
32%
15%
Behavior
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree

1 of the respondent out of 60 disagreed, 15 are mildly agreed, 25 are agreed, 17
are strongly agreed and remaining 2 respondents not answer the above said statement.
59 respondents are satisfied with their relation to their supervisor. This is because of
the good management of Meezan Bank.

Many of the respondent agree with above statement of behavior but as per the
interview with the branch staff mostly the behavior problems raised thats includes the
factor of favoritism, professional jealousy and personal grudges at work place.
CHAPTER 4

8%
22%
34%
28%
8%
Appreciation
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
3%
12%
13%
25%
33%
12%
2%
Interaction
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
N/A

Many of the employees are agreed with the statement that there work is
appreciated by their seniors in Meezan Bank. But a number of respondents disagreed
due to manifold factor as favoritism, professional jealousy and attitude of the
employees.

Reason of disagreement is at branch level where employees that belong to
other organization are hesitate to contact or discuss the issue with higher management
due to disclosure of their personality thats they think having negative effect on their
future correspondents.

CHAPTER 4

12%
5%
18%
35%
20%
10%
The salary level in my organization compare
well with those of similar organizations
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
12%
13%
23%
22%
17%
13%
My salary is fair for my level of responsibility
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree

Many of the respondents respond in negative manner due to the un-satisfaction
exist between employees regarding the salary offered by Meezan Bank with the other
bank offering.

As per interviewed by MBL management that a salary level is not up to the
standard that is offered by other banks with the same responsibilities.

CHAPTER 4

13%
11%
27% 20%
17%
12%
Connection between Pay and Performance
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
6%
17%
27%
22%
20%
8%
You are satisfied with present
salary
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree

A number of respondents disagreed with the above statement and as per
conducted interview with MBL staff that the reason behind non connection is the
factor that

Meezan Bank as per the Market rate is offering a low wage to their employees.
Only 8% respondent chose strongly satisfied due to their experience or they are from
other bank and join MBL due to high salary offering.

CHAPTER 4

13%
25%
7%
14%
14%
27%
If you are given a chance on higher salary in
conventional bank you will switch
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
5%
3%
5%
37% 37%
13%
I am satisfied with the physical working
condition in my organization
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree

55 percent of respondent are in favour of shifting the bank on higher salary.
Reason of shifting is the trend that is compulsory for your promotion in grade and
salary exist in the banks. Or the bank higher the person that is not aware of Islamic
Banking concepet or they dont know about its importance.

Many of the respondents are satisfied with the above statement due to
changing the working environment in private organization that believe in providing
best services to their customers and employees are aware of the challenges or obstacle
at their work place.

CHAPTER 4

5%
17%
19%
38%
21%
Job security
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
5%
3%
17%
30%
32%
13%
My organization has good training programs
for improving my skills and abilities
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree

Most of the employees are very much satisfied with job security due to Bank
HR policy and their perquisites. Focal point of their satisfaction is Meezan Bank
continuous growth which is safeguarding the interest of their employees regarding
their job.

Training in banking industry is very much important to upgrade employees
knowledge and their skills to cater the day to day operating problems. MBL is now
with their effective training programs trying to enhance the skills and knowledge of
their employees.

CHAPTER 4

5% 2%
22%
33%
28%
10%
When I take on a new job or responsibility, I
receive adequate in house or external training and
support
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
8%
7%
7%
22%
43%
10%
3%
Bank offer on the job training time to time
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
N/A

Many of the respondents are in favor of above said statement and also
confirmed through interviewing the training head of MBL about the training program.
Change in training program to keep the employees equipped with updated knowledge
to cater day to day problems and queries.

Agreement level in above said statement is presenting the fact of providing on
the job training trend in MBL. MBL management is very much conscious to provide
proper training and clearing the doubt about their primer Islamic Bank representation.

CHAPTER 4

7%
18%
8%
25%
32%
7%
3%
Bank has an effective system for dealing with
employee grievances
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
N/A
2% 5%
12%
40%
41%
Bank has best Shariah Compliance in all
Islamic Banks
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree

57 percent of the respondents are in favor of statement that their grievances in
MBL are resolved in very effective and efficient way. Thats represent that bank
human resource department is very quick or serious to resolve employees grievances.

Numbers of respondents are agreed with the Shariah compliance in MBL and
their ZERO tolerance policies in this regard. Also a test is conducted in this regard to
check the employees knowledge about Shariah.

CHAPTER 4

13%
7%
18%
12%
18%
32%
You chose MBL due to Islamic Banking
Strongly Disagree
Disagree
Mildly Disagree
Mildly agree
Agree
Strongly Agree
12%
71%
17%
Satisfaction Level Of employees
Low Satisfied
Medium Satsfied
Highly Satisfied

Most of the respondents join MBL with the intention of provided Riba free
banking and Shariah compliance procedure approved by Shariah Supervisory board of
MBL that is providing their service to many of the institution that are having intention
to initiate the Riba free banking system in the world.

This pie chart is depicting the overall satisfaction level of MBL employees
regarding their attitude perception towards Islamic Banking and its Products. 71% of
the respondent are medium satisfied that presenting the fact of MBL employees are
satisfied with the current provided perquisite and Shariah compliance of their product.

CHAPTER 4

0 20 40 60 80 100
Disagree
Agree
A
g
r
e
e
m
e
n
t

L
e
v
e
l

Employees View on Objective
Policies and procedures are
well defined
I have a good
understanding about
organization mission and
objectives
0 20 40 60 80 100
Disagree
Agree
A
g
r
e
e
m
e
n
t

L
e
v
e
l

Employees view on Work Environment
I am satisfied with the
physical working
condition in my
organization
Job security
4.2 Variable Wise Analysis

CHAPTER 4

0 20 40 60 80 100
Disagree
Agree
A
g
r
e
e
m
e
n
t

L
e
v
e
l

Employees View on management
Interaction
Appreciation
Behavior
0 20 40 60 80 100
Disagree
Agree

A
g
r
e
e
m
e
n
t

L
e
v
e
l

Employees Views on Training &
Development
Bank offer on the job training
time to time
When I take on a new job or
responsibility, I receive
adequate in house or external
training and support
My organization has good
training programs for
improving my skills and
abilities

CHAPTER 4

0 20 40 60 80 100
Disagree
Agree

A
g
r
e
e
m
e
n
t

L
e
v
e
l

Employees View on relationship with
Supervisor
My relation with my
supervisor
My supervisor
communicates well with
subordinates
0 20 40 60 80 100
Disagree
Agree
A
g
r
e
e
m
e
n
t

L
e
v
e
l

Employees View about MBL
You chose MBL due to
Islamic Banking
Bank has best Shariah
Compliance in all Islamic
Banks
If you are given a chance on
higher salary in conventional
bank you will switch

CHAPTER 5
Attitudes and Perceptions of Employees towards Islamic Banking CONCLUSION AND RECOMMENDATION

CHAPTER 5

Chapter 5
Conclusion and Recommendation

The final Chapter of the study Conclusion and Discussion entails a detailed overview
of the results and in the light of the independent commenting made in the previous
chapter a complete result of the study. This is also important as this chapter actually
depicts our learning and understanding of the topic. This conclusion and the
discussion might not be widely applicable pertaining to the limitations of the study
but it does add knowledge in the literature of Attitude and perception of Employees
toward Islamic Banking.
5.1 Conclusion
Taking in to consideration the satisfaction element of the employees while working in
an organization that is claiming to be the Premier Islamic Banking or providing
100% Riba Free Banking in Pakistan. For attainment of this purpose and to proving
the satisfaction level of the employees towards Islamic banking and their product
offering we chose Meezan Bank. By taking the sample of 60 people we conduct our
research and on the basis of our result we are able to draw the conclusion that a
satisfaction level of employees depend on multi factor that determined the satisfaction
level which includes Organizational Objective, Management, Work environment,
Training and development , MBL products and Shariah Compliance.
Based on the performed evaluation mentioned above the following conclusion can be
made. First of all most of the employees join Meezan Bank rather they belongs to
other financial institutions with the only reason of its Shariah Compliance by Shariah
Supervisory Board encompasses of the most renowned personality of Pakistan Justice
(Retd.) Muhammad Taqi Usmani and MBL approved product are highly transparent
in procedure according to Shariah rules. This is the only reason that differentiates
CHAPTER 5

MBL from other Financial Institutions. This research also suggests that some of the
respondent also express their view in reference to joint MBL by providing a reason of
their Salary and other perquisites increment.
Trend of hiring new blood in MBL main streamline to promote the Islamic Banking in
Pakistan and make their practices in whole branch network standardized. Survey
suggested some of very important result of Employees view on objectives that
policies and procedure for adapting standardized practices is well define but some of
the respondents are disagreed. Reason of disagreement is that they were worked in
other banks and try to implementing the same in MBL but the structure of MBL
product and execution is too different.
Work environment of any place is most important variable for the people working in
particular organization. As our result indicated that the work environment of MBL is
very friendly, co staff is so much cooperative and mostly employees are satisfied with
the physical working condition in MBL. Most of the staff is satisfied with the issue of
their job security due to active respond of MBL Human resource department to cater
employees grievances.
Training and development is an ongoing process, having core importance in
implementing new or updated policies, procedures and also equipped the employees
with updated knowledge. Survey result suggested that MBL is very conscious in
respect of training and development of their staff with updated tools and knowledge.
Organization grows when their upper management is cooperative or a good listener to
their lower staff. As this factor is an integral part of our survey and our result
suggested that Meezan Banks management is very cooperative and down to earth
while solving employees related issues and grievances. Most of the respondent
CHAPTER 5

agreed with the management behavior, interaction and their appreciation related to
their work environment. The overall view about management prospective is positive
as per our suggested results.
5.2 Recommendations

Meezan Bank is continuously growing due to its Shariah Compliance product
offering. Mostly people joined MBL with the only reason that in the presence of
interest based economy someone takes an initiative to break the curse and make this
Banking Industry according to Shariah Compliance Principles. But still this process of
changing something is improving aggressively.
One of the important factor that can heart this initiative is the hiring of those people
that came from other interest based institution and their weak knowledge in Islamic
Banking process. MBL must have some arrangement to train all those employees that
is hired from other institution to enhance their understanding and knowledge on
Islamic Banking.
As our result suggested that adopted polices and procedure to perform day to day
operation is not standardized in whole MBL. So keep them in standardized manner
there is need to revise their policies time to time to keep the same practice in whole
organization.
Salary structure of MBL is not up to the standard that is offered by other
organizations. It should be revised for the better performance of employees and their
satisfaction.
Upper management behavior is very important for the implementation of their
policies in a smooth way. Same can be better with healthy interaction with lower staff
CHAPTER 5

by providing them chance to participate in decision making process because they are
running the organization they better know how to improve and which area need more
concentration.
Organizational growth is based on the satisfaction of the employees but most
importantly the people that are contributing their investment with the only believe that
the organization is following Islamic rules of financing. For better understanding of
this process MBL must have to organize seminar to educate the general public about
Shariah rules and principle of financing.

CHAPTER 5

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CHAPTER 1

Attitudes and Perceptions of Employees towards Islamic Banking INTRODUCTION

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