HUMAN RESOURCE MANAGEMENT AND

EMPLOYEE ORGANIZATION COMMITMENT: A

STUDY OF NEPALESE COMMERCIAL BANKS

Graduate Research Project

Submitted To:
MBA (Finance) Program in Management
Office of the Dean, Faculty of Management
Pokhara University

Submitted By:
Rubina Shrestha
Exam Roll No: 12220503
P.U. Registration No: 2007-2-03-0416

In partial Fulfillment of the Requirements for the MBA (Finance)

Degree in Management

Kathmandu, Nepal
March, 2015
 ACKNOWLEDGEMENTS

The study entitled HUMAN RESOURCE MANAGEMENT AND EMPLOYEE

ORGANIZATION COMMITMENT: A STUDY OF NEPALESE COMMERCIAL
BANKS has been conducted to fulfill the partial requirements for the degree of Masters
of Business Administration (Finance) Pokhara University.

First of all, I would like to express my sincere gratitude to the respected supervisor Mr.
Yam Prasad Chaulagian for his valuable time and consideration throughout the entire
period of the project. Without his support, this research report would not have been
completed on time.

My deepest gratitude goes to our Academic Director Prof. Dr. Radhe Shyam Pradhan for
his valuable support. Without his support, the research report would not be successfully
completed.

I would like to sincerely thank to Research Director Dr. Niraj Poudyal for providing his
valuable idea, suggestion, and guidance while preparing the GRP report.

Furthermore, I would like to thank the respondents of the research for providing their
valuable time in filling up the questionnaire. Without the support of the respondents the
GRP would not be completed. Similarly my deepest thank goes to my family member for
their patience and emotional support. This research project would not be completed
without the support of my friends. I would like to thank Baburam Subedi, Pragati Dahal
for their valuable support. Last but not the least I would like to thank Uniglobe college
Management for providing the resources material, working environment, library facilities
until completion of the project.

Rubina Shrestha

February 20th, 2015

i
 Certificate of Authorship

I certify that the submission of HUMAN RESOURCE MANAGEMENT AND

EMPLOYEE ORGANIZATIONS COMMITMENT: A STUDY OF NEPALESE
COMMERCIAL BANKS is my own work. It contain no material previously published
or written by another person or material which to a substantial extent has been accepted
for the award of any other degree of university or other institution of higher learning,
except with due acknowledgement.

..

Rubina Shrestha

ii
 TABLE OF CONTENTS

Details Page No.

Acknowledgements i
Certificate of Authorship ii
Table of contents iii
List of Tables vi
List of Figures vii
Executive Summary viii
Abbreviations x
CHAPTER I 1
INTRODUCTION 1
1.1. Background 1
1.2. Statement of problem 3
1.3. Objectives of the study 6

1.4. Significance of the study 7

1.5. Hypothesis 7

1.6. Operational definations and assumptions 8

Chapter II
LITERATURE SURVEY AND THEORETICAL FRAMEWORK 11
2.1. Review of major literature 11
2.2. Review of major Nepali literature 18
2.3. Research gap 22
2.4. Conceptual framework 22

2.5. Concluding remarks 24

Chapter III

RESEARCH METHODOLOGY 26
3.1. Research design 26
3.2. Nature and source of data 26

iii
 3.3. Primary data 27
3.4. Research approach 27

3.4.1. Qualitative and quantitative approach 27

3.4.2. Population and the sample of the study 27

3.5. Instrumentation 28

3.6. Data collection procedure and time frame 29

3.6.1. Analysis of primary data collection 29
3.6.2. Tools 30

3.7. The model specifications 30

3.7.1. The Model 31

3.7.2. Reliability and validity 31

3.8. Analysis plan 32

CHAPTER 4
RESULTS AND DISCUSSION 33
4.1. Presentation and analysis of data 33

4.1.1. The demographic characteristics of the respondents 33

4.1.2. Human resource management in Nepalese commercial banks 38

4.1.3. Major aspects of training and development in Nepalese commercial banks 39

4.1.4.Major aspects of recruitment and selection in the Nepalese commercial banks 42

4.1.5. Major aspects of performance appraisal in the Nepalese commercial banks 45

4.1.6. Major aspects of employee participation in decision making in the Nepalese

commercial banks 48

4.1.7. Major aspects of compensation in the Nepalese commercial banks 51

4.1.8. Major aspects of employee organization commitment in the Nepalese

commercial banks 54

4.1.9. Major aspects of employee job satisfaction in the Nepalese commercial 57

banks

iv
 4.2. Kendalls tau-b correlations coefficient for human resource management,
employee organization commitment and employee job satisfaction 60
4.3. Regression analysis 62
4.4. Concluding remarks 66
CHAPTER V
SUMMARY AND CONCLUSIONS 69
5.1. Summary of the findings 69
5.2. Major findings 70

5.3. Conclusion 80
5.4. Recommendation 81
5.4. Scope for future research 83
References 84
APPENDIX 1 89
APPENDIX 2 96

v
 List of Tables

Table No. Title of Tables Page No.

Table 2.1 Major findings of literature review 12

Table 2.2 Review of Nepalese literature 19
Table 3.1 Sample Banks for Primary Data 28
Table 3.2 Coefficient of Cronobachs Alpha 32
Table 4.1 Demographic characteristics of respondents 34
Table 4.1.1 Training and Development of the Nepalese commercial banks 41
Table 4.1.2 Recruitment and selection of the Nepalese commercial banks 44
Table 4.1.3. Performance appraisal of the Nepalese commercial banks 47
Table 4.1.4 Employee participation in decision making of the Nepalese 50
commercial banks
Table 4.1.5 Compensation of the Nepalese commercial bank 53
Table 4.1.6 Employee organization commitment of the Nepalese 56
commercial bank
Table 4.1.7 Employee job satisfaction of the Nepalese commercial bank 59
Table 4.2.1 Kendalls correlations coefficient of human resources 61
management, employee organization commitment and
employee job satisfaction in Nepalese commercial banks
Table 4.3.1 Regression of employee organization commitment and HRM 63
variable
Table 4.3.2 Regression of employee job satisfaction and HRM variable 65

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 List of Figures

Figure No. Title of Figures Page No.

Conceptual framework on human resource 23
Figure 2.1
management, employee organization
commitment and employee job satisfaction
35
Figure 4.1 Genderwise classification of the respondents

36
Figure 4.2 Age of the Respondents

37
Figure 4.3 Academic Qualification of the Respondents

38
Figure 4.4 Designation of the Respondents

vii
 Executive Summary

The worlds are now confronted with major challenges arising out of globalization,
concern for profitability, and rapid technological advancements coupled with the
emergence of the new intellectual capital. Banks survival and success will invariably
depend on how they respond to these challenges. For effective management response,
banks have to evolve internal capabilities for enhancing speed, quality, learning and
building employee competencies. Human Resource Management (HRM) is fundamental
to generating and affecting these capabilities. Over the years, organizations have become
aware of the importance of Human Resources.

The main objective of the study is to assess the human resources management and their
effect on employee organization commitment and employee job satisfaction in Nepalese
commercial banks. The other specific objectives are to analyze the impact of training and
development on employee organization commitment and employee job satisfaction in
Nepalese commercial banks, to examine the effects of recruitment and selection on
employee organization commitment and employee job satisfaction in Nepalese
commercial banks ,to determine the impact of employee participation on decision making
on employee organization commitment and employee job satisfaction in Nepalese
commercial banks, to assess the impact of performance appraisal on employee
organization commitment and employee job satisfaction in Nepalese commercial banks,
to assess the impact of compensation on employee organization commitment and
employee job satisfaction in Nepalese commercial banks. In order to achieve the
objectives questionnaire was made and distributed to 190 respondents of 30 Nepalese
commercial banks. The questions were asked in the form of yes/no, single choice
questions and likert scale questions. The likert scale questions of different variables on
human resources management, employee organization commitment and employee job
satisfaction were measured in 5 point scale. The proxies for the HRM are training and
development, recruitment and selection, performance appraisal, employee participation in
decision making and compensation practices. The weighted mean of the each variable
were used to examine the relationship of HRM, employee organization commitment and

viii
employee job satisfaction. For the fact finding of the study casual comparative research
design were used.

The result of the study shows that HRM have positive relation with the employee
organization commitment and employee job satisfaction. Recommendations are given on
the basis of the finding of the study. The major conclusions of the study are that all the
variables of human resource management have positive relation with employee
organization commitment and employee job satisfaction. If the Nepalese commercial
bank has good HRM in the form of training and development, recruitment and selection,
performance appraisal, employee participation in decision making, compensation
practices it will tends to increase employee job satisfaction and employee organization
commitment .The more the bank focuses on the variable of human resources management
it leads to motivate the employee toward their job and the bank. The study also concludes
that employee of the commercial bank are not much satisfied with their, salary, corporate
culture, compensation practices, performance appraisal.

ix
 List of Abbreviation

HR Human Resources

HRM Human Resources Management

TD Training and development

RS Recruitment and selection

PA Performance appraisal

EPDM Employee participation in decision making

EO Employee outcomes

CP Compensation Practices

OC Organization commitment

JS Job satisfaction

ROI Return on investment

x
 CHAPTER I

INTRODUCTION

1.1. Background
The world of work has been rapidly changing. Even as little as two decades ago, the
times were calmer than they are today. Today, however, the changes appear to be
happening more rapidly. As the part of a commercial banking, human resources
management must be prepared to deal with the effects of the changing world at work.
This means understanding the implications of globalization, technology changes,
workforce diversity, labor shortages, changing skill requirements, technology changes,
workforce diversity, labor shortage, changing skill requirements, continuous
improvement initiatives, the contingent workforce, decentralized work sites, and
employee involvement (Decenzo and Robbins, 2006).

Human Resource Management (HRM) is the function within an organization that focuses
on recruiting, managing, and providing direction for the people in the organization.
Effective HRM enables employees to achieve competitive advantage because of its
capability to convert resources into output. Since human resources are very important
potential source of sustained competitive advantage, managing them well will help
organizations in creating unique competencies that differentiate their products and
services from other competitors. Human resources management include activities like
strategic HRM, human capital management, corporate social responsibility, human
resource planning, recruitment, selection, training and development, reward management,
performance management, employee relations, health safety and employee well-being as
well as provision of employee services. Private Banks are responding to the world
changes and experiencing tremendous growth. These banks need skillful, qualified and
committed employees to continue the progress and development (AL-Zahrani and
Almazari, 2014).

Effective management of human resources plays a vital role in sound management of

banks as well as increasing the success of the banks. Management of human resources,

1
adaptation to any kind of change and effective functioning of banks are possible only
when human resources are developed. Thus, HRM facilitated for all round development
of banks in addition to allowing them to be dynamic and responsive to the environmental
changes. The study on Human Resource Management in Banks, under present economic
scenario in the country is essential to understand HRM philosophy, practice and outcome
with a view to offer suggestions for formulation of right philosophy and practice of HRM
in Banks. The areas of the Human Resource Practices include performance appraisal,
training, management development, career planning and development, organization
development, participative management and quality circles (Singh, 2013).

The impact of human resource management such as compensation practice, performance

evaluation practice and promotion practice on employees job satisfaction, perceived
performance, commitment, turnover intention and citizenship behavior cannot be
overlooked because it has positive impact on the organization performance. All these
employees outcomes have very significant bearings on the operation of organization
regardless of its size (small, medium and large) and nature (merchandising,
manufacturing and service). Increased job satisfaction, organizational commitment,
organizational citizenship behavior, performance and decreased turnover intention help
the organization achieve its goals and objectives and vice versa. A bank cannot stand on
its feet without the employee. Employees dissatisfaction also culminates in low level of
employees commitment to the organization and high level of turnover intention
(Korunkaa and Kubiceka, 2009).

Human resource is an important and critical area of management and HR practices are an
important area of research since the last few years. HR practices increase the level of
employee performance and the employees feel more comfortable and secure where HR
practices are implemented. HR practices played an important role in the performance of
organizations, particularly in banking industry (Saleem and Khurshid, 2014). In the
current competitive market, success is less dependent on capital and more on innovation,
speed and acceptability. Effect of human resources management on firm performance has
received considerable importance in last 25 years showing effective connection between
HR practices and firm performance (Quresh and Akbar, 2010). Thus HR is the

2
interlinked with all the managerial functions involved in the practices of recruitment and
selection, training and development, organization commitment and compensation and
these practices increase the potential of employee in the banking sector.

Many western authors agree that there are evidences of impact of HR practices on bottom
line performance. But in case of Nepal still we have to come forward with enough
evidences on how HR practices enhances compliance and commitment and thus increases
the organizational performance. This is essential because very few employers are
convincing with the specific impact on organizational performance (Adhikari and Muller,
2001). In case of Nepalese organizations there is evidence that firms integrating HR and
business strategy are doing better in terms of raising ROI (Gautam, 2008).

In Nepal, the role of HR is more related to looking at the administrative functions relating
to the personnel department, rather than looking at linking profits directly with people.
What makes one bank different than the other? They perhaps use the same software,
locate on the same street, have similar office layout and have the same platform for
credit/debit cards. The only difference one can see is the people in the organization.
Human resource provides the impression of the organization, good or bad. Therefore, the
challenge in Nepal will also be to see how organizations understand the value of their
employee and ensure that they build a set of human resources that will increase
efficiency, productivity and profitability (Shakya, 2011).

Therefore the studies dealing with role of the HRM and employee organization
commitment are of greater significance. The human resource need to be nurtured as a
valuable asset in order to increase the firm performance and should not be regarded as an
incidental cost. Human resources management can enhance motivation and encourage
employees to work both harder and smarter which support to influence firm performance.

1.2. Statement of problem

The need for developing the appropriate human resources practices has been felt by many
authors. A firms human resources management practices have an economically and
statistically significant impact on both intermediate employee outcomes (turnover and
productivity) and short and long-term measures of corporate financial performance

3
(Huselid, 1995). Human resources management practices have been studied extensively
among manufacturing, service and small medium enterprises. However, only a few
studies have addressed the banking industry (Mangaleswaran & Srinivaran, 2011).
Therefore this research study reveals the study of HR practices in the commercial banks
of bank.

Performance appraisal also influences other HR practices such as recruitment and

selection, training and development, compensation, and employee relations. As
performance appraisal leads to pay raise, promotion, and training; it is assumed that
better performance appraisal can have positive impact on organizational performance.
The study on impact of HR practices on the organization performance shows that
performance appraisal has significant impact on organizational performance (Absar and
Nimalathasan,2010)

The study on the effect of training on employee retention conducted by Hassan and Razi
(2013) state that employee retention is heavily dependent on job training. There is
significant relationship among this variable. In Nepalese commercial bank there is a
situation where training and development activities are very rare especially in the public
sector bank and those training and development are not reinforce properly to the
employee.

The study on effect of human resource management policies on organizational

performance conducted by Katou and Budhwar (2007) shows that human resources
management practices of recruitment, training, promotion, incentives, benefits,
involvement and health and safety are positively related to the organization performance.
According to (Koch & MCgrath, 1996) there exists a positive relationship between HR
recruitment and selection and labor productivity.

It is widely believed that the employee participation may affect employees job
satisfaction; employee productivity, employee commitment and they all can create
comparative advantage for the organization. The findings of the study for the 34
organizations from Oil & Gas, Banking and Telecommunication sectors shows that
increasing employee participation will have a positive effect on employees job
satisfaction, employee commitment and employee productivity (Bhatti & Qureshi(2007).
4
The findings also states that high involvement practices may influence organization
performance and that employee involvement in problem-solving and self-directed teams
may increase autonomy and satisfaction.

The study on human resource management and turnover intention shows that interaction
of HRM practices among job satisfaction, organization commitment, employee
involvement increase positive attitude among the employee in an organization
(Altarawmneh and Kilan, 2010).

The study of impact of HR practices on job satisfaction in the context of Bangladesh

found that HR practices have significant association with job satisfaction. In addition,
human resource planning, and training and development were found to have positive
impact on job satisfaction. It was also found that training and development has the
greatest impact on job satisfaction (Absa and Azim 2010).

The concept of HRM has still not developed and been practiced in Nepalese
organizations in the way that it has developed and has been practiced in some developed
countries. However, things are changing recently. Organizations are having separate HR
departments, deploying managers to manage HR activities, involved in making business
and HR strategies. Some developments have been seen in the management of HR
information and use of such information for managers HR activities. In fact, employers
are looking for cost-effective measures to plan their human resources. There are no
sustainable changes in the way employers are recruited and selected. Investment in HR
development is vey dismal and there is a need to understand why employers are
hesitating to invest in training and development although they are indicating that training
is immediately required in the areas, such as, communication and interpersonal skills,
professionals and vocational development and leadership and competencies. Some sort of
performance appraisal system is widely practiced. A few organizations are also using
appraisal results for pay determination. However, the study of job design shows that one
of the most dissatisfying factors in Nepalese floor is the pay level. There has been
improvement in the situations of the employee relations and communication in the past
few years (Gautam D. K., 2012).

5
Based on the above literature the following problem has been summarized.

1. What is the nature of HRM on employee organization commitment and employee

job satisfaction in Nepalese commercial banks?
2. How performance appraisal impacts the employee organization commitment and
employee job satisfaction in Nepalese commercial banks?
3. Do the training and development have impact on employee organization
commitment and employee job satisfaction in Nepalese commercial banks?
4. Is there is any relation between recruitment and selection and organization
commitment and employee job satisfaction in Nepalese commercial banks?
5. What are the effects of employee involvement in decision practices in employee
organization commitment and employee job satisfaction in Nepalese commercial
banks?
6. How compensation impacts the employee organization commitment and
employee job satisfaction in Nepalese commercial banks?
1.3. Objectives of the study
The main objective of the study is to assess the HRM and their effect on employee
organization commitment and employee job satisfaction in Nepalese commercial banks.
The other specific objectives are as follows.

1. To analyze the impact of training and development practices on employee

organization commitment and employee job satisfaction in Nepalese commercial
banks.
2. To examine the effects of recruitment and selection practices on employee
organization commitment and employee job satisfaction in Nepalese commercial
banks.
3. To determine the impact of employee participation on decision making on
employee organization commitment and employee job satisfaction in Nepalese
commercial banks.
4. To assess the impact of performance appraisal on employee organization
commitment and employee job satisfaction in Nepalese commercial banks.

6
 5. To assess the impact of compensation on employee organization commitment and
employee job satisfaction in Nepalese commercial banks.

1.4. Significance of the study

HRM play significant role in the employee organization commitment and employee job
satisfaction analysis of any firm. The previous study has provided extensive data on the
positive relationship between HRM and organizational performance. This studied has
attempted to both explicate the issues with regard to drawing causal conclusions within
this vein of research, and to provide empirical data to explore some of these issues. The
study demonstrates that HRM are strongly related to future performance, but they are also
strongly related to past performance, causing action in making any causal references.
While one could accurately interpret results as showing HRM to be part of a high
performance organization, they certainly do not provide proof that these practices cause
that high performance.

The impact of human resource management such as compensation practice, performance

evaluation practice and promotion practice on employees job satisfaction, and
organization commitment cannot be overlooked. All these employees outcomes have
very significant bearings on the operation of organization regardless of its size (small,
medium and large) and nature (merchandising, manufacturing and service). Increased job
satisfaction, organizational commitment and decreased turnover intention help the
organization achieve its goals and objectives and vice versa (Ali et al. 2014).

This research is very important in the case of Nepalese commercial banks because it will
helps to know the employee satisfaction/dissatisfaction with related to the bank and their
working condition. This research paper will be helpful to the HR department of bank,
students for further study on these topics in Nepal.
1.5. Hypothesis
There are number of HRM that could be connected with the employee organization
commitment and employee job satisfaction. Many researchers have conducted HRM that
have impact on the employee organization commitment and employee job satisfaction.
Ali et al.(2014) have studied three HRM practices including compensation, promotion

7
and performance evaluation practices and their impact on employee outcomes including
job satisfaction, organizational commitment. Mangaleswaran and Srinivasni(2011) used
five HRM practices which are staffing, training, compensation, performance appraisal,
and employee relations for this study. Job satisfaction and organizational commitment are
used as the outcomes of HRM practices. Similarly Mehta (2014) conducted research on
impact of human resource practices on job satisfaction of employees in foreign and local
banks of Pakistan where human resources practices used in the study were promotion
practices, supervisory relationship, human working environment, compensation practices,
and performance evaluation. Abeysekera(2007) used HRM practices as realistic job
information, job analysis, career development, work family balance, supervisory support
and compensation and employee outcomes as managing executive turnover intention.
Therefore on the basis of research literature by Ali et al., (2014), Mangaleswaran and
Srinivasni(2011), Mehta(2014)and Abeysekera (2007), the following hypothesis were
developed for this research study.

Hypothesis 1H1: Training and development has positive impact on employees

organization commitment and employee job satisfaction of
Nepalese commercial banks.
Hypothesis 2 H2 : Recruitment and selection has positive impact on employees
organization commitment and employee job satisfaction of
Nepalese commercial banks.
Hypothesis 3 H3: Performance appraisal has positive impact on employees
organization commitment and employee job satisfaction of
Nepalese commercial banks.
Hypothesis 4 H4 : Employee participation in decision making has positive impact on
employees organization commitment and employee job
satisfaction of Nepalese commercial banks.
Hypothesis 5 H5 Compensation practices have positive impact on employees
: organization commitment and employee job satisfaction of
Nepalese commercial banks.

1.6. Operational definations and assumptions

1. Traning and development
Training and Development basically deals with the acquisition of understanding,
knowhow, techniques and practices. In fact, training and development is one of the

8
 imperatives of human resource management as it can improve performance at
individual, collegial and organizational levels (Tahir et al.2014). DeCenzo and
Robbins( 2006) explain training as a learning experience, in that, it seeks a relatively
permanent change in an individual that will improve his ability to perform on the
job. This mean training must be designed in such a way that, it will involve the
either the changing or enhancing of skills, knowledge, attitudes, and social behavior.
2. Recruitment and selection
Recruitment and selection is the process of finding and hiring the right person for a
job in the right way. Recruitment is how you attract quality candidates to apply for
vacant positions. The type of recruitment that you use will depend on the type of
position and the availability of quality, local candidates. Selection is the means used
to determine which of the candidates is best suited for the job. The selection process
includes conducting interviews, holding job related tests and contacting references
(Munipical and community affairs, 2008). Selection is the process by which managers
and others use specific instruments to choose from a pool of applicants a person or
persons more likely to succeed in the job(s), given management goals and legal
requirements (French and Rumbles, 2010).
3. Performance appraisal
Performance appraisal is a discrete, formal, organizationally sanctioned event,
usually not occurring more frequently than once or twice a year, which has clearly
stated performance dimensions and/or criteria that are used in the evaluation process.
It is an evaluation process, in which quantitative scores are often assigned based on
the judged level of the employees job performance on the dimensions or criteria
used, and the scores are shared with the employee being evaluated (Denisi and
Pritchard, 2006). Appraisal may be understood as the assessment of an individuals
performance in a systematic way, the performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership
abilities, supervision, dependability, cooperation, judgment, versatility, health and the
like (Khan, 2013).
4. Employee participation in decision making

9
 Worker participation in decision making implies arrangements designed to involve
workers in the enterprises decision making process. This allows for workers'
involvement in the initiation, formulation and implementation of decisions within the
enterprise. (Rathnakar, 2012). Employee participation is creating an environment in
which people have an impact on decisions and actions that affect their jobs. Employee
involvement is not the goal nor is it a tool, as practices in many organizations. Rather,
employee involvement is a management and leadership philosophy about how people
are most enabled to contribute improvement and the ongoing success of their work
organization (Siwal, 2014).
5. Compensation
Compensation refers to all forms of financial rewards received by employees that
arise from employment which has two main components: direct financial payments
(in the form of wages, salaries, incentives, commissions, and bonuses) and indirect
payments (in the form of financial benefits like employer-paid insurance and
vacation. compensation (Agrawal, 2009). Compensation and benefits is concerned
with paying employees and administering their benefits package (DeCenzo &
Robbins, 2006)
6. Organization commitment
Commitment is the level of connection that employees feel towards the organization
(Siwal, 2014).Commitment is defined as employee emotional attachment to,
identification with, and involvement in the organization and its goals. It results from
and is induced by an individual and organizational value congruency. As a result, it
becomes almost natural for the individual to become emotionally attached to and
enjoy continuing membership in the organization (Ugboro, 2006).

7. Job satisfaction
Job satisfaction is an emotional response to a job situation. It represents several
related attitudes: pay, work itself, promotion opportunities, supervision, and co-
workers (Acharya, 2009). Employee job satisfaction is related with the satisfaction of
employee in their job when employee receives compensation, flexibility in work, lead
work overload, team work, training and development and resources to compute their
task (Siwal, 2014).

10
 Chapter II

LITERATURE SURVEY AND THEORETICAL FRAMEWORK

A literature review is a text of a scholarly paper, which includes the current knowledge
including substantive findings, as well as theoretical and methodological contributions to
a particular topic. A literature review is a critical analysis of a segment of a published
body of knowledge through summary, classification, and comparison of prior research
studies, reviews of literature, and theoretical articles.

In order to research the present study, this chapter looks upon the literature on the HRM
i.e. recruitment and selection, training and development, performance appraisal,
employee participation on decision making, compensation practices, and its impact on the
employee organization commitment and employee job satisfaction.

2.1. Review of major literature

The review is made on the HRM like training and development, recruitment and
selection, performance appraisal, employee participation on decision making,
compensation practices and its impact on the employee organization commitment and job
satisfaction taken from the different literatures. This section consists of reviewed of
literature during 2000s.

Table 2.1 summarizes the various literature review related to the human resource
management, employee organization commitment and employee job satisfaction. Human
resources management proxies are training and development, recruitment and selection,
performance appraisal, employee participation in decision making and compensation.

11
 Table 2.1
Major findings of literature review
This table summarizes the review of literature at a glance observed from the purpose of study
concentrating on the preferred variables and its results observed from the different studies.

Study Major Findings

Delery and Doti et. Recruitment and selection, training and development, performance appraisal leads to
al. (1996) organization performance.
Bhatti et al.(2007) Increasing employee participation will have a positive effect on employees job satisfaction,
employee commitment and employee productivity.
Rathanawere Human Resource Management practices are significant predictors of employee satisfaction,
(2010) commitment and retention. Performance appraisal, compensation and social benefits practice
had the strongest effect on determining the employee satisfaction, commitment and retention.
Mudor and The strongly positive relationship of pay practices and training with job satisfaction. In
Tooksoon (2011) addition, the negative relationship of HRM practice and turnover is clearly enlighten the
important of providing a good supervision, training, and pay practice in order to reduce
turnover rates of employees.
Singh et al.(2011) There is a noticeable effect of the performance appraisal on the organization as well as on the
individual. Performance appraisal helps in assessing the capabilities of various employees and
employees contribution towards the organization.
Bhatti et al. (2011) Employee participation in an organization showed better results, high employees
commitment and productivity, development of desired knowledge, skills, attitudes and other
behaviors result in higher job satisfaction and organizational performance.
Gonchkar (2012) Training and development has impact on employees skills, knowledge, attitudes and
behavior, job performance, productivity which means the officers feel to work for the benefit
of the bank if they find training and development to be for their benefit.
Misra et al. (2012) The independent factors of Financial (base pay, merit pay, incentive, bonus etc.), non
Financial Reward (discount coupons, employee of the month), and benefits, distributive and
procedural justice impact job satisfaction which in turn impacts absenteeism and attrition.
Ashar et al.(2013) Employees training is significantly correlated with organizational commitment.
Jehanzeb et Employees training is significantly correlated with organizational commitment, turnover
al.(2013) intentions and the commitment-turnover relationship.
Mudashiru et al. There is a significant relationship between recruitment and selection based on merit and
(2013) organizational performance; that effective and well planed recruitment and selection is a key
to organizational commitment.
Saeed et al.(2013) Employees who are compensated with appraisals and appreciations, they have done their
work well. The findings revels that incentives and benefits have very positive and significant
impact on employees job satisfaction.
Appelbaum et al. When employees believe and trust their management it motivates and encourages employees
(2013) participation in decision making which improves employees efforts, benefits their job
satisfaction and commitment to work.
Chahal et al.(2013) Factors including salary of employees, performance appraisal system, promotional strategies,
training and development program are found important for improving job satisfaction of bank
employees.
Katua et al.(2014) There is a positive relationship between strategic reward, compensation and employee
performance. The study recommends that commercial banks should use both financial and
non financial rewards in addition to other incentives and performance related pay schemes.
Mehta (2014) There is a strong and positive relationship between compensation, working environment and
supervisory relationship and job satisfaction of employees but performance appraisal and
promotion shows that these two variables are not significant to the job satisfaction.
Ali et al.(2014) There is significant relationship of compensation practice, promotion practice and
performance evaluation practice with job satisfaction, organizational commitment.
Gopinath and Shibu There is positive and significant association between recruitment and selection, training and
(2014) development with job satisfaction of employees.

12
 Delery and Doty (1996) found that there are three perspectives which describes about
the HRM practices and the organizational performance. The study presents the HRM
and performance through three perspectives: Universalistic, Contingency and
Configuration perspectives. The Universalistic approach perspective describes the high
performance work practice. Delery and Doty (1996) explain universalistic arguments are
the simplest form of the theoretical statement because they imply that the relationship
between a given independent variables is universal across the population of the
organization. Developing the universalistic prediction requires two steps: First,
important strategic HR practices must be identified. Second is individual practices to
organizational performance must be presented. They identified seven HRM practices:
internal career opportunity, formal training system, performance appraisal measures,
profit sharing, employment security, voice mechanism and job definition. These HRM
practices are closely linked with the financial performance of the organization.

Bhatti and Qureshi (2007) studied impact of employee participation on job satisfaction,
employee commitment and employee productivity that the employee participation may
affect employees job satisfaction; employee productivity, employee commitment and
they all can create comparative advantage for the organization. The findings shows that
employee participation has a positive effect on employees job satisfaction, employee
commitment and employee productivity. Naturally increasing employee participation is a
long-term process, which demands both attention from management side and initiative
from the employee side. The findings also suggested that management might be able to
increase the level of commitment in the organization by increasing satisfaction with
compensation, policies, and work conditions.

The findings of the study on the impact of Human Resource Management practices on
human resource management outcomes in Sri Lankan public sector banks revealed that
human Resource Management practices are significant predictors of employee
satisfaction, commitment and retention. Compensation and social benefits practice had
the strongest effect on determining the employee satisfaction, commitment and retention
of PSB in Sri Lanka. Findings of this study show that providing training for employees is
positively related to higher employee satisfaction, employee commitment and higher

13
employee retention. Results of regression analysis supported the hypotheses that
performance evaluation is positively related to higher employee satisfaction, commitment
and retention of public sector banks in Sri Lanka (Rathnawere, 2010).

Mudor and Tooksoon (2011) conducted a study on the relationship between human
resource management practices, job satisfaction, and turnover. The study consists of three
human resources management (HRM) practice (supervision, job training, and pay
practices), job satisfaction, and turnover, and to explain the relationships among these
variables. Three main variables of HRM practices have play a crucial role to enhance job
satisfaction of employee. The strongly positive relationship between HRM practice and
job satisfaction provide a wisdom way on how an organization can motivate an employee
to work efficiently. Thus, the organization needs to take a consideration about job
satisfaction and apply HRM practice in the work place in order to reduce turnover and
gain the organization goals.

A study on effects of performance appraisal on the organization and individual stated that
performance appraisal has been considered as the most significant tool for an
organization, for the information it provides is highly useful in making decisions
regarding various personnel aspects such as promotion and merit increases. Performance
measures also link information gathering and decision making processes which provide a
basis for judging the effectiveness of personnel sub-divisions such as recruiting,
selection, training and compensation. The findings of their search show that there is a
noticeable effect of the performance appraisal on the organization as well as on the
individual. Performance appraisal helps in assessing the capabilities of various employees
and employees contribution towards the organization. It helps in determining the training
needs for the employees. It helps an individual to determine the proper career path (Singh
et al., 2011).

Bhatti et al.(2011) carried out a study on effects of direct participation on organization

commitment. The purpose of the study was to determine that types of employee
participation practice would explain variance in the organizational commitment of
banking sector employees in the Pakistan and United States and also what kind and extent

14
of differences are exists in both countries regarding this relationship. Study concluded
that investment in employee participation in an organization showed better results, high
employees commitment and productivity, development of desired knowledge, skills,
attitudes and other behaviors result in higher job satisfaction and organizational
performance.

Gonchkar (2012) conducted the study on the impact of training and development on
performance of officers of select public sector banks for sustainable human development
and stated that training and development has impact on employees skills, knowledge,
attitudes and behavior, job performance, productivity which means the officers feel to
work for the benefit of the bank if they find training and development to be for their
benefit. If the subjects of the training and development were pertinent to the officers job
interest, they find the training and development to be more interesting, innovative and
work towards the benefit of the organization.

The study on impact of compensation components in terms of rewards and benefits and
organizational justice on turnover intentions and the role of job satisfaction in terms of
pay showed that employees believed in having a clear and transparent compensation
system reflective of performance and productivity and they were keen that the
management should be willing to address any pay issues. Job satisfaction in terms of pay
was seen to be impact in relation to referent others. The independent factors of Financial
(base pay, merit pay, incentive, bonus etc.), non Financial Reward (discount coupons,
employee of the month), benefits, distributive and procedural justice impact job
satisfaction which in turn impacts absenteeism and attrition rates in the Retail industry
(Misra et al., 2012).

Ashar et al. (2013) investigated impacts of perceptions of training on employee

commitment. The objective of the study was to investigate relationship of two most
important perceptions of training with affective commitment. The result shows
significant positive association of both training perceptions with affective commitment.
This study helps managers to understand training-attitude-organizational performance
relationship.

15
Jehanzeb et al.,(2013) studied impacts of training on organizational commitment and
turnover intentions in private sector of Saudi Arabia. Employees training is significantly
correlated with organizational commitment, turnover intentions and the commitment-
turnover relationship.

The study on the impacts of well planned recruitment and selection process on corporate
performance in Nigerian banking industry revealed that there is a significant relationship
between recruitment and selection based on merit and organizational performance; that
effective recruitment and selection is a key to organizational commitment; that a well
planned recruitment and selection contributes to organizational performance. The paper
concludes by drawing the danger potends by poor recruitment and selection as poor
recruitment could lead to selection of poor applicants. It is therefore recommended that
for recruitment and selection process to be effective, it should be consistent with an
established standard, fair, transparent, and ensures that the right peg is put in the right
whole (Mudashiru et al., 2013).

Saeed et al.(2013) conducted study on interactive effects of performance appraisals on

employees' motivation in Pakistani banking sector. The purpose of the research work was
to check the impact of performance appraisals (incentive practices and benefits provided
by the organization) on employee motivation. The study was about the performance
appraisals that incentives and benefits increase the morale level of employees and
stimulate them towards work. Employees who are compensated with appraisals and
appreciations, they have done their work well. The findings revels that incentives and
benefits have very positive and significant impact on employees job satisfaction.

Appelbaum et al.( 2013) conducted a study on participation on decision making where

the study state that when employees believe in and trust their management it motivates
and encourages employees participation in decision making which improves employees
efforts, benefits their job satisfaction and commitment to work. The article finds that
employee trust in management is an important determinant of their willingness to
participate in decision making. Insufficient employee participation in decision making in
turn leads to low level of employee job satisfaction and employee commitment. Lack of
employee commitment and engagement affects the employees intention to quit. Owing

16
to lack of trust in management, there will be high employee turnover. This in its turn will
have a negative effect on the performance of management and employees welfare, job
satisfaction and commitment.

The study on effect of reward and compensation strategies on the performance of

commercial banks in Kenya found that financial and non financial rewards can combine
to enhance firm performance. Based on the findings, it is also concluded that there is a
positive relationship between strategic reward and compensation and employee
performance among commercial banks in Kenya. The study recommends that
commercial banks should embrace the use of both financial and non financial rewards in
addition to other incentives and performance related pay schemes (Katua et al., 2014).

Chahal et al.(2013) investigated the study on level of job satisfaction of Canara Bank
employees in Delhi NCR identifying the satisfaction level of employees, various factors
influencing satisfaction of employees and to study the relationship between personal
factors of employees. Based on a survey, the paper attempts to gain insights into the
satisfaction level from the perspective of the Bank employees. Factors including salary of
employees, performance appraisal system, promotional strategies, employees
relationship with management and other co-employees, training and development
program, work burden and working hours are found important for improving job
satisfaction of bank employees in Canara bank. Increase in level of these factors
improves overall satisfaction of employees which is identified by using statistical
techniques.

Mehta (2014) conducted the study on impact of human resource practices on job
satisfaction of employees in foreign and local banks of Pakistan. The study focuses on
impact of human resource practices like performance evaluation, promotion practices,
and compensation practices, working environment and supervisory relationship on job
satisfaction of employees in banking sector of Pakistan. The study interpret that there is a
strong and positive relationship between the different human resource practices and job
satisfaction of employees but performance appraisal and promotion showing greater
value than .05 level of significance shows that these two variables are not significant to
the job satisfaction..

17
Ali et al.( 2014) the studied the relationship between human resource management
practices and employees outcomes. The objective of this research was to investigate the
impact of compensation practice, promotion practice and performance evaluation practice
on job satisfaction, organizational commitment. The results of correlation showed a
significant relationship of compensation practice, promotion practice and performance
evaluation practice with job satisfaction, organizational commitment. Performance
evaluation practice was proved to be the strongest predictor of job satisfaction followed
by compensation practice and promotion practice.

The study on recruitment and selection, training and development and its impact towards
job satisfaction in Thanjavur reveals that recruitment and selection, training and
development influencing job satisfaction. The study shows that there is positive and
significant association between recruitment and selection, training and development with
job satisfaction of employees (Gopinath and Shibu, 2014).

2.2. Review of major Nepali literature

This section consists of review of literature on the Nepalese perspective. It includes five
articles published on Nepalese journal in Human resource management in Nepalese
organization.

Table 2.2 summarizes reviewed of Nepal literature related to human resources

management, employee organization commitment and employee job satisfaction. Human
resources management proxies are training and development, recruitment and selection,
performance appraisal, employee participation in decision making and compensation
practices.

18
 Table 2.2
Review of Nepalese literature
This table represents the major findings of the literature of the human resources management, employee
organization commitment and employee job satisfaction.

Study Major Findings

Adhikari and Examining the degree of compliance and commitment situation in
Gautam (2011) Nepalese workplaces, it seems poor status of the implementation of hard
and soft HR practices.
Maharjan (2013) Majority of Nepali companies lack fairness in evaluation process. The
outcome of appraisal is linked with pay increment, promotion, training and
development and the feedback to employees for their area of
improvements. Nepali managers and/or employees are dissatisfied in many
aspects while working.

Gautam (2012) HRM practices in Nepal are not developed like in developed countries;
Nepalese organization is realizing the significance of people management
at work and their practices in the present dynamic environment.
Baniya (2004) There is a lack of systematic approach towards human resource
development in Nepalese business organizations.
Chapagai (2011) Increased employee participation makes a positive effect on job
satisfaction of Nepalese banking employees. Participative management and
employees participation in strategic planning process are positively
associated with high level of job satisfaction. The employees participation
is also an important dimension for improving and enhancing the
employees job satisfaction level.

Adhikari and Gautam (2011) studied employees commitment and organizational

performance in Nepal. A number of new HR mandates recommended for the
improvement in the situation of low degree of commitment and compliance affecting
level of performance in Nepalese workplaces. Three mandates for improving HR
practices and thus enhancing commitment and compliance. They are increase
interpersonal and communication skills of employees, increase professional and
vocational skills of employees, and enhance leadership skills of the managers. In fact,
these three mandates clearly support to achieve performance goal of the organization
through enhancing commitment and compliance. Hard and soft HRM perspectives are
incorporated to analyze the issues and develop theories. The hard HR issues mainly
include readiness of firms to comply labor legislations, relations between business and
HRM strategy and integration among HR functions. The soft HR issues comprise

19
employees commitment to participate and contribute at work for organizational
performance.

Maharjan (2013) examined the study on human resource practices in Nepal. The paper
first presents the overall HRM system of Nepal and shows how it is different than
Japanese and the United States (US) HRM. The finding emphasize that experience,
potentiality, loyalty, independency, diversity, job knowledge, market image, confidence
level and sound health are used as core values during selection. Among these, experience
and job knowledge are mostly emphasized when final selection is done. Simultaneously,
it is also assumed that the top management influences selection of the candidates. It is
assumed through the findings that the majority of large Nepali companies are putting
efforts on training and development programs. They have developed some formal and/or
informal need assessment tools and also designed some training programs. This finding
depicts the majority of Nepali companies lack fairness in evaluation process. The
outcome of appraisal is linked with pay increment, promotion, training and development
and the feedback to employees for their area of improvements. These findings show that
Nepali managers and/or employees are dissatisfied in many aspects while working.

Gautam (2012) investigated the study on changing perspective of managing human

resources in Nepal. The study explores the presents perspective of HRM like HR
departments, HR policies and strategies, HR planning, recruitment selection and
placement, training and development, performance appraisal, compensation and benefits,
employee relations and communication. Due to centralized organizational structure, most
of the HR decisions are taken into the central office and line managers being involved
highly in planning and implementing HR policies. In a nutshell, though HRM practices in
Nepal are not developed like in developed countries, Nepalese organization is realizing
the significance of people management at work and their practices in the present dynamic
environment.

Investment in HR development is very dismal and organizations are hesitating to invest

in training and development. Some sort of performance appraisal system is widely
practiced. The result of performance evaluation is mostly used in deciding about career

20
planning and determination of training needs. A few organizations are also using
appraisal results for pay determination. The emerging employee relation patterns clearly
show that the understanding between employers and employees is positively improving.

Baniya (2004) conducted a study on Human Resource Development Practice in Nepalese

Business Organizations. The study reveals that there is a lack of systematic approach
towards human resource development in Nepalese business organizations. In the study
training program were taken as the human resources development and its positive
consequences were increased productivity, increased motivation among employers,
enhanced loyalty towards organization , improved performance, enhanced image of the
organization. Most of the organizations neither have a personnel manager to look after
human affairs nor allocate budget in their annual program for human resource
development. However, it is a good indication that some of the organizations have started
to provide their employee the training though they lack clear policy framework. The
findings explores that training is the only development opportunity provided for
employees to develop their knowledge, skills, and abilities but employees' satisfaction
with the existing training opportunity is low. Only around one-third of employees are
satisfied to some extent with the opportunity made available by the organization.

Chapagai ( 2011) attempted to examine the relationship between employee participation

and job satisfaction in Nepalese commercial banks for which four Nepalese commercial
banks were taken as a sample two each from government and private sectors. Based on
explanatory research design, the study showed that that there was positive relationship
between employee participation and job satisfaction in Nepalese banks. The findings
reveal that employee participation is an important determinant of job satisfaction.
Increased employee participation makes a positive effect on job satisfaction of Nepalese
banking employees. Participative management and employees participation in strategic
planning process are positively associated with high level of job satisfaction. The result
of this study is indicating that the employees participation is also an important
dimension for improving and enhancing the employees job satisfaction level.

21
2.3. Research gap
The number study was found supporting the impact of HRM on the employee
organization commitment and employee job satisfaction in the manufacturing sector,
hotel sector, telecommunication sector but less research was done in the commercial bank
sector. It assumes that the greater use of HRM will results more in the positive employee
outcomes like job satisfaction, organization. Positive employee outcomes can be
enhanced by integrating organization and employee goal.

This study attempts to explore the HRM and its impact on the employee organization
commitment and job satisfaction in the context of Nepalese commercial banks. With
reference of several past research and evidence, the study identifies the major HRM
domains comprising of training and development, recruitment and selection, performance
appraisal, employee participation, compensation practices and employee outcomes like
organization commitment and job satisfaction.
In relation with the present study, many studies were conducted in the international arena
but there is lacking of such study in the Nepalese context which is identified as a major
research gap. Moreover the research of Nepal covers only few domains in the HRM
which make researcher difficult in gathering the necessary information related to this
study. Therefore the present research work is expected as one of the breakthrough to
minimizing the existing research gap which would be beneficial for the next researcher
who will conduct this study.

2.4. Conceptual framework

Most of the literature review in chapter two identifies the positive impact of HRM on
employee organization commitment and job satisfaction. But there has been less
agreement in the literature about the HRM and employee organization commitment.
Therefore, choosing independent variables for conceptual framework was very difficult.

Figure 2.1 is the conceptual framework of the research study where HRM is the
independent variable and employee organization commitment and job satisfaction are
dependent variables. The dependent variables such as organization commitment and job
satisfaction of the employee is dependent upon the independent variables such as training

22
and development, recruitment and selection, performance appraisal, employee
participation in decision making and compensation practices.

Figure 2.1

Conceptual framework on human resource management and employee organization

commitment, employee job satisfaction
Employee outcomes with Human Resources Management variables
Human Resource Management

Training and
Development

Recruitment Organization
and Selection commitment

Performance
Appraisal

Employee Job
Participation Satisfaction
in Decision
making

Compensation
Practices

The conceptual framework shows the different variables to link HRM and employee
organization commitment, employee job satisfaction in Nepalese commercial banks. The
variables of the HRM and employee organization commitment and job satisfaction are
based on the literature reviews based on the study of the impact of the HRM on the
employee organization commitment, employee job satisfaction of Nepalese commercial
banks.
OC=f {T&D, R&S, PA, EPDM, CP}

JS=f {T&D, R&S, PA, EPDM, CP}

23
Where, OC=Employee organization commitment, JS= Employee job satisfaction, TD=
Training and Development, RS=Recruitment and Selection, PA= Performance Appraisal,
EP=Employee Participation on decision making, CP=Compensation Practices.

2.5. Concluding remarks

The study of relationship between human resource management and employees
organization commitment, employee job satisfaction showed a significant relationship of
compensation practice, promotion practice and performance evaluation practice with job
satisfaction, organizational commitment. Performance evaluation practice was proved to
be the strongest predictor of job satisfaction followed by compensation practice and
promotion practices (Ali et al. 2014).

The study on impact of human resource on job satisfaction of employees in foreign and
local banks of Pakistan shows that there is a strong and positive relationship between
compensation practices, working environment and supervisory relationship with job
satisfaction but performance appraisal and promotion shows that these two variables are
not significant to the job satisfaction (Mehta, 2014).

The findings of the study on the impact of Human Resource Management practices on
human resource management outcomes that human Resource Management practices are
significant predictors of employee satisfaction, commitment and retention.
Compensation, training, performance evaluation and social benefits practice had the
strongest effect on determining the employee satisfaction, commitment and retention of
PSB in Sri Lanka (Rathnawere, 2010).

The study on participation on decision making state that when employees believe in and
trust their management it motivates and encourages employees participation in decision
making which improves employees efforts, benefits their job satisfaction and
commitment to work. Lack of employee commitment and engagement affects the
employees intention to quit. Owing to lack of trust in management, there will be high
employee turnover. This in its turn will have a negative effect on the performance of
management and employees welfare, job satisfaction and commitment (Appelbaum et
al., 2013).

24
The study on recruitment and selection, training and development and its impact towards
job satisfaction in Thanjavur reveals that recruitment and selection, training and
development influence job satisfaction. The study shows that there is positive and significant
association between recruitment and selection, training and development with job
satisfaction of employees (Gopinath and Shibu, 2014).

The study on the impacts of well planned recruitment and selection process on corporate
performance in Nigerian banking industry revealed that there is a significant relationship
between recruitment and selection based on merit and organizational performance; that
effective recruitment and selection is a key to organizational commitment; that a well
planned recruitment and selection contributes to organizational performance (Mudashiru
et al., 2013).
The employees job satisfaction, the employees commitment towards their organization
is considered to be emerging issues in the current situations. Job dissatisfaction brings
absenteeism and turnover in the organization which results in the less organization
commitment of the employee. Studies has proved that HRM practices improves the job
satisfaction and organization commitment of the but which factors affect the employee
most is core issue to be identified by a modern manager. This study is an attempt to
identify the impact of human resource management on employee organization
commitment and employee job satisfaction in Nepalese commercial banks.

25
 Chapter III

RESEARCH METHODOLOGY
Research methodology is the analysis of specific topic by using proper method. Research
methodology is a way to systematically solve the research problem. This chapter
describes the method and process applied in the entire aspect of the study. In this chapter,
the research design, data collection procedure and procedures concerning analysis of data
are described thoroughly. This chapter hence includes the methodologies undertaken in
relation to justification of research objectives, sampling process and collection used for
the study human resources management and employee organization commitment,
employee job satisfaction of Nepalese commercial bank.

3.1. Research design

The study has employed descriptive and casual comparative research design to deal with
the fundamental issues associated with HRM influencing employee organization
commitment and employee job satisfaction of the commercial bank in the context of
Nepal. The casual comparative research design has been used to order to determine the
effect of training and development, recruitment and selection, performance appraisal,
employee participation in decision making and compensation practices on employee
organization commitment and employee job satisfaction. The study design has been
adopted for fact finding and searching adequate information about factor affecting
employee job satisfaction and employee organization commitment. The questionnaire has
been design to assess the perception of respondent bank employees regarding their job
satisfaction level. The questionnaire also deals with the personal details of the respondent
like academic qualification, job position, and age of the selected employees of banks.

3.2. Nature and sources of data

For the fact finding of the study questionnaire was made. The questionnaire consists of
eight sections. The first sections serve as insights of personal details of the respondent.
The remaining sections extract the necessary information from the bank employee
regarding the dimension of HRM and employee organization commitment, job
satisfaction. In the questionnaire yes/no, single choice question and likert scale questions

26
were asked to get insight of employee level of organization commitment, and job
satisfaction from the respective bank.

3.3. Primary data

The questionnaire was distributed to know the fact finding of the perception of the
employee regarding human resources management and its impact on employees
organization commitment, job satisfaction of their respective bank. The respondent of the
bank was trainee assistant, assistant, junior assistant, senior assistant, management
trainee, officer, assistant manager and manager. There were altogether eight sections. The
first section deals with the personal details of the respondents like age, academic
qualification, designation and gender and in the remaining sections the question regarding
HRM and their impacts on employee organization commitment, job satisfaction.

3.4. Research approach

This section is the major portion of the GRP. This section state the approach that the
research has been conducting.

3.4.1. Qualitative and quantitative approach

The survey of the respondents was interpreted in order to know their perception regarding
the HRM and employee organization commitment, employee job satisfaction .The
respondents were asked to provide their degree of agreement and disagreement in the
likert scale questions where 5 point likert scale was used. Similarly respondents have to
respond on yes/no and single choices questions. In the yes/no questions respondent have
to tick mark on yes, no or dont know option while in the single choices question, five
options was given and respondent have to tick mark on one option. The study also
follows quantitative approach. The weighted mean of the five independent variables of
HRM and two dependent variables were measured from each set of questions.

3.4.2. Population and sample of the study

The total population for the research is the employee of the 30 commercial banks taken
from the Kathmandu valley. In the study the development bank, finance companies and
micro credit institution are excluded and only commercial banks are taken as a sample.
The total number of observation for the study consists of 190 respondents for analyzing

27
the relationship between the HRM and the employee organization commitment and
employee job satisfaction.

Table 3.1 shows the list of the A class commercial bank in Nepal that was taken as the
sample of the study. Altogether 30 commercial bank was taken under the study.

Table 3.1
Sample Banks for Primary Data
This table shows list of 30 A class commercial banks taken as the sample under the study

S.N Name of Bank Branch Respondents

1 Nepal Bank Limited Chabahil 10
2 Rastriya Banijya Bank Limited Maharajgunj 8
3 Agricultural Development Bank Maharajgunj 7
4 Nabil Bank Limited Durbarmarg 8
5 Nepal Investment Bank Limited New Road 8
6 Standard Chartered Bank Nepal Limited New Baneswor 8
7 Himalayan Bank Limited New Road 13
8 Nepal SBI Bank Limited New Baneswor 5
9 Nepal Bangladesh Bank Limited Ghantaghar 10
10 Everest Bank Limited Lazimpat 2
11 Bank of Kathmandu Limited Kamaladi 3
12 Nepal Credit and Commerce Bank Limited Gausala 5
13 Lumbini Bank Limited Naxal 5
14 NIC Asia Bank Limited Trade tower 4
15 Machhapuchchhre Bank Limited Samakhusi 4
16 Kumari Bank Limited New Road 5
17 Laxmi Bank Limited Maharajgunj 6
18 Siddhartha Bank Limited Kamaladi 4
19 Global IME Bank Limited Kamaladi 6
20 Citizens Bank International Limited Samakhusi 6
21 Prime Commercial Bank Limited New Road 10
22 Sunrise Bank Limited Baniyatar 7
23 Grand Bank Nepal Limited Samakhusi 4
24 NMB Bank Limited New Road 5
25 Prabhu Bank Limited Samakhusi 5
26 Janata Bank Nepal Limited Sankhamul 6
27 Mega Bank Nepal Limited Boudha 5
28 Civil Bank Limited Samakhusi 6
29 Centaury Commercial Nepal Limited Putalisadak 9
30 Sanima Bank Limited Samakhusi 6
Total 190
Source: Field survey, 2014
3.5. Instrumentation
In order to analyze HRM and employee organization commitment, employee job
satisfaction of the Nepalese commercial bank instrumentation such as non- parametric

28
test was done. Two dependent variable i.e. employee organization commitment and
employee job satisfaction have been used in the study. Using a five point likert scale
ranging from 1(strongly agree) to 5 (strongly disagree), respondents (employee) were
asked to indicate their perception regarding HRM and their commitment and satisfaction
level. This study also analyzed the causal comparative between different statements of
the variables. This design has been adopted to ascertain and understand the directions,
magnitude and forms of observed relationship between HRM and employee organization
commitment, job satisfaction. The primary data is tested by calculating Cronobachs
alpha.

To evaluate and test the various responses of the respondent (employee) mean value was
computed. In order to know how much of respondent agreed on the particular statement,
the aggregate of strongly agree and agree was done in order to get total agreed respondent
on the particular statement. Similarly, in order to know how much of respondent
disagreed on the particular statement, the aggregate of strongly disagree and disagree was
done in order to get total agreed respondent on the particular statement. Descriptive and
casual comparative research design was used to measure the relationship between the
domain of HRM and employee organization commitment, employee job satisfaction in
the commercial banking industry of Nepal. The descriptive statistics is used in order to
generate the frequency and percentage of respondent opinion on yes/no, single choice and
likert scale questions. In current study employee organization commitment and employee
job satisfaction were taken as dependent variables and regressed with the five
independent HRM variables namely, training and development, recruitment and
selection, performance appraisal, employee participation in decision making and
compensation practices.

3.6. Data collection procedure and time frame

This section elaborates on how data were collected for this study purpose and also time
frame for the study.
3.6.1. Analysis of primary data collection
Data collection was done through the respondents of the commercial banks. List of banks
include 3 public sector bank and 27 private commercial banks. The respondents of the

29
commercial bank were from the head office and branches of the commercial banks.
Questionnaire along with the letter was given to the human resource department in order
to recognize the bank that the questionnaire is the partial requirement of the thesis.
During the visit generally manager along with other employee of the bank were asked to
fill up the questionnaire the questionnaire. The questionnaire was divided into 8 sections
where the first section includes the personal detail of the respondent and rest of other
section includes yes/no, single choice question and statement question to know employee
perception on HRM and employee organization commitment and their job satisfaction.
Hence these questionnaires were used as a primary source of data collection. In order to
ensure accurate response, employee were taken manager, assistant manager, officer,
management trainee, senior assistant, junior assistant, trainee assistant and assistant.
Altogether four months were taken to complete the graduation report project.

3.6.2. Tools
SPSS 16 version was used to tabulate and analyzed the valid responses of the employee
that is taken from the questionnaire. At the beginning comprehensive data file was
created. Then variable and their labels were defined. Data were entered and commands
were operated using user menu of SPSS program. Few statistical tools such as
descriptive, casual comparative research design were used for the analysis.

3.7. The model specifications

The following econometrics model equation is employed to test different hypothesis that
there is positive relationship between human resources management and employee
organization commitment and their job satisfaction in Nepalese commercial banks. The
training and development, recruitment and selection, performance appraisal, employee
participation in decision making and compensation practices work as a proxy for human
resource management.

30
3.7.1. The Model
Model 1: Organization commitment is the dependent variable and HRM are independent
variable.

OC=0 + 1TD+ 2RS+ 3PA+ 4EPDM+ 5CP +..1

Model 2: Job satisfaction is dependent variable and HRM are independent variable.

JS= 0 + 1TD+ 2RS+ 3PA+ 4EPDM+ 5CP +..2

Where,

OC= Organization Commitment, JS=Job Satisfaction, RS=Recruitment and Selection,

TD= Training and Development, PA= Performance Appraisal, EP=Employee
Participation on decision making, CP=Compensation Practices

3.7.2. Reliability and validity

Reliability is synonymous with the consistency of a test, survey, observation, or other

measuring device hence the research cannot go further without measuring the reliability
of primary data. It refers to the creditability of the test and it mainly test measurement
results and measurement tools stability and consistency. Validity is the extent to which a
test measures what actually wish to measure. It refers to the accuracy of a measure and a
measurement is a valid when it measures what suppose to measure the functions that it
supports to perform. For the purpose of reliability test through Cronobach's alpha, only
likert scale type questions (35 questions out of 77) are considered. Table 3.2 shows the
validity and reliability of the question of the study.

31
 Table 3.2

Coefficient of Cronobachs Alpha

This table shows the validity and reliability of the question under the study

Cronobachs Alpha based on N of items

standardized items
.813 35

Reliability test for all the component of questionnaire regarding human resource
management in Nepalese commercial banks were computed through SPSS. Cronobachs
alpha greater than 0.7 is considered as reliable data. Here in the table 3.2 Cronobachs
Alpha for the data is 0.813 which reveals that there consists of internal consistency and
the data is reliable. Hence further test can be done from these data.

3.8. Analysis plan

This section gives a presentation on how the empirical data was used for research purpose
to study human resources management and employee organization commitment on the in
the Nepalese commercial banks. Under the study, questionnaire was made to know the
employee view on the human resources management of their respective bank and its
impact on their performance. Total responses collected from the respondent were coded
and tabulated into SPSS worksheet. The various tools such as frequencies, descriptive
statistics, and casual comparative research design to derive the result. Further, p-value
was used to check the level of significance of the different statements of HRM and
employee organization commitment and their job satisfaction.

32
 CHAPTER 4

RESULTS AND DISCUSSION

This section deals with the presentation and the analysis of the data that are gathered
from the questionnaire distributed to the employee of the commercial banks regarding the
perception of the HRM and its impact on the employee organization commitment and job
satisfaction. The study attempts to present the results and explain the outcome of analysis
in this chapter through presenting in pie-charts, bar charts, and different table.

Taking into considerations of all the past literature and studies, 25 statements for the
HRM and 5 statements each for the employee organization commitment and employee
job satisfaction were prepared. In order to confirm internal consistency of variance
Cronobachs alpha is calculated where the computed Cronobachs alpha is greater than
0.7 which shows there is sufficient reliability.
4.1. Presentation and analysis of data
These sections examine the results of questionnaire survey conducted among individual
employees in Nepalese commercial banks. Questionnaire survey was designed to
understand the view of the respondents regarding human resources management in
Nepalese commercial banks. The respondents profile along with their personal
characteristics and result of the survey are presented in the following sections.

4.1.1. The demographic characteristics of the respondents

In any study using primary data analysis, discussion on the profile of the respondents
needed first. Demographic characteristics play a vital role in understanding the employee
perception and their reliability in the organization. This section therefore describes the
demographic characteristics of the respondents of Nepalese commercial banks. It
includes gender, age, academic qualification and designation of the respondents working
in the commercial bank.
Table 4.1 shows the demographics characteristics of the respondents in number and
percentage of the gender, age, academic qualification of respondents.

33
 Table: 4.1
Demographic characteristics of respondents
This table shows the number of respondents with the classification on gender, age, academic qualification
and designation from different commercial banks used in questionnaire survey of the study. Number
represents the number of respondents of each category and percentage refers to the respondents number
in particular category out of total.
Respondents detail Number of responses Percentage
Gender
Male 118 62.1
Female 72 37.9
Age Group(in years)
20-29 110 57.9
30-39 53 27.9
40-49 22 11.6
50-59 5 2.6
Academic Qualification
Intermediate level 17 7.9
Bachelor level 78 41.1
Masters level 90 47.4
M. Phil degree 5 2.6
P.HD degree 1 .5
Professionals or other degree 1 .5
Designation
Manager 13 6.8
Assistant Manager 11 5.8
Officer 53 27.9
Management Trainee 6 3.2
Senior Assistant 39 20.5
Junior Assistant 13 6.8
Assistant 31 16.3
Trainee Assistant 18 9.5
Others 6 3.2
Source: Field Survey, 2014

Table 4.1 shows the respondents characteristics based on the gender, age, academic
qualification and designation. Out of the total 190 respondents (62.1 percent) is male and
(37.9 percent) is female respondents. Similarly, age group of the respondent is divided
into five categories however the age of the respondents fall into only four categories. The
(57.9 percent) of the respondents fall under the age group of 20-29, (27.9 percent) of the
34
respondents fall under the age group of 30-39, (11.6 percent) of the respondents fall
under the age group of 40-49 and (2.6 percent) of the respondents fall under the age
group of 50-59. Thus, majority of the employees are in the age group of 20-29.
On the basis of the academic qualification, employees are categorized as those who
completed intermediate, bachelor, masters, M. Phil, P.HD and professional and other
degree. The (7.9 percent) of the respondent have only intermediate level qualification,
(41.1 percent) of the respondents completed bachelor level, (47.4 percent) of the
respondents have completed masters degree with (47.4 percent), (2.6 percent) of the
employees have qualification of M. Phil and only (0.5 percent) of the employee has P.HD
and other professional degree like PDGFM. Maximum of the respondents have the
academic qualification of masters level.
On the basis of the designation (6.8 percent) of the respondent were manager, (5.8
percent) of the respondents were assistant manager, (27.9 percent) of the respondents
were the officer, (3.2 percent) of the respondents were management trainee, (20.5
percent) of the respondents were the senior assistant, (6.8 percent) of the respondents
were the junior assistant,(16.3 percent) of the respondents were the assistant, (9.5
percent) of the respondents were trainee assistant and (3.2 percent) of the respondent
were of different designation including supervisor and clerical staff.
Figure 4.1 is the classification of the respondents gender in terms of male and female.

Figure 4.1

Genderwise classification of the respondents

This figure shows classification of the gender in terms of number of male and female respondents.

35
Figure 4.1 shows the gender wise classification of sample of the respondents. Table 4.2
and figure 4.1 shows that out of the 190 respondents 118 are the male and 72 are the
female respondents. Similarly table 4.2 shows that out of 100 percent (42.1 percent) are
the male respondents and (37.9 percent) are the female respondents. It can be observe that
majority of the respondents are the male.

Figure 4.2 is the age group of respondents which is classified into four categories of 20-
29, 30-39, and 40-49 50-59 ages.
Figure 4.2

Age of the Respondents

This figure shows the age group of the respondents which is classified into four categories of 20-29, 30-39
40-49 50-59 ages.
120 110

100

80
57.89 Frequency
60 53
Percent
40
27.89
22
20 11.58
5 2.63
0
20-29 years 30-39 years 40-49 years 50-59 years

Fable 4.2 is the age wise description of the respondents. From the table it is clear that
majority of (57.89 percent) of the respondents fall in the age group of 20-29 years.
Similarly, (27.89 percent) of the respondents fall in the age group of 30-39 years. The
(11.58 percent) of the respondents fall in the age group of 40- 49 years. The age group of
50-59 has the least respondents which covers only (2.6 percent).
Figure 4.3 is the description of the academic qualification of the respondents in terms of
number and percentage. The academic qualification of the respondents is divided into
respondents having qualification of intermediate level, bachelor level, masters degree,
M. Phil, PhD and other professional degree.

36
 Figure 4.3

Academic Qualification of the Respondents

This figure shows the description of the academic qualification of the respondents in
terms of number and percentage.
100 90
90
78
80
70 Frequency
60
47.4 Percent
50 41.1
40
30
17
20
7.9 5 2.6
10 1 0.5 1 0.5
0

Figure 4.3 is the description of the academic qualification of the respondents. Among the
190 respondents, majority of the respondents (47.4 percent) have qualification of the
masters degree. Similarly PhD and professional degree like post graduate diploma in
financial management (PGDFM) is done only by (.5 percent) of the respondents.
Respondents having bachelor level qualification is (41.1 percent). Respondents having
intermediate level education is (7.9 percent) and M. Phil degree is done by (2.6 percent)
of respondents.
Figure 4.4 is the description of the designation of the respondents in terms of number and
frequency. The designation of the respondents is classified into the position of manager,
assistant manager, officer, management trainee, senior assistant, and junior assistant,
assistant.

37
 Figure 4.4

Designation of the Respondents

This figure shows the designation of the respondents in terms of number and frequency.
60
53

50

39
40

31
30 27.9
Frequency
20.5
20 18
16.3 Percent
13 13
11
9.5
10 6.8 6 6.8 6
5.8
3.2 3.2

Figure 4.4 shows that out of 190 respondents majority of (27.9 percent) respondents are
working as officers. The (20.9 percent) of the respondents are working as senior assistant.
The (16.3 percent) of the residents have designation of the assistant. The (9.5 percent) of
the respondents have designation of the trainee assistant. The (6.8 percent) of the
respondents have the designation of the manager and junior assistant. The 5.8 percent of
the respondents have the designation of the assistant manager. The (3.2 percent) of the
respondents are working as management trainee and supervisor and clerical staff.

4.1.2. Human resources management in Nepalese Commercial Banks

One of the objectives of research is to measure the impact of training and development
activities on the employee outcomes of the Nepalese commercial banks. This section
discusses about the various statements regarding training and development as human
resources management variable under which five different statement questions, two
yes/no questions and four single choices questions are prepared.

38
4.1.3. Major aspects of training and development in Nepalese commercial banks
Major aspects of the training and development include respondents view on the
questions to training and development practices in their respective commercial bank
(appendix 1).
1. Benefit of training and development program conducted by the bank: Out of
190 respondents, majority (94.7 percent) of the respondents thinks that training
and development program conducted by the bank is beneficial for them. The
respondent (1.1 percent) percent believe that it is not beneficial. Similarly (4.2
percent) of the respondents are not aware of the training and development
program.
2. Periodical review of training and development program conducted by bank:
The majority (63.2 percent) of the respondents conveyed that training and
development activities are conducted periodically in their respective bank.
However, (24.7 percent) of the respondents (24.7) percent said that bank doesnt
conduct the training and development program periodically and (12.1 percent) of
the respondents dont know whether the training program is conducted
periodically.
3. Benefits of training and development program : The most of the respondents
(43.2 percent) thinks that it help in increasing productivity of the employee, (36.3
percent ) of the respondents believes that it help to increase motivation, (15.3
percent) of the respondents think that it help to address weakness of the employee,
(4.2 percent)of the respondents have different view like it will expose to greater
knowledge and skills, increase competency where maximum of the respondents
thinks that training helps to increase productivity and only (1.1 percent) of the
respondents believe that it helps to reduce the supervision.
4. Methods of training and development that satisfied the respondents: The
maximum of the respondents (31.5 percent) like the apprenticeship training
method. (29.5 percent) of the respondents percent like job instruction training
method, (22.6 percent) of the respondents is satisfy by experimental exercise
method of training and (16.4 percent) of the respondents is satisfy by the
internship and lecturer/ conference training method.

39
 5. Training and development activities conduct by the bank: Bank conduct semi
annually training program is conveyed by majority of (37.9 percent) of
respondents, (26.8 percent) of the respondents percent express that bank conduct
yearly training program, (24.7 percent) of the respondents said it is conducted
monthly, (.5percent) of the respondents said bank has conducted never whereas
(10 percent) of the respondents said that bank has not conducted training program
since two years.
6. Reason behind less conducting training and development activities in
Nepalese commercial bank: Most of the (45 percent) respondents have opinion
on due to high cost, (25 percent ) of the respondents said it is due to lack of top
management support and (30 percent ) percent of the respondents have their own
view like training program is given to the new comer employee but not for the old
or already existed employee, others said that training program is highly practice
for the who are familiar with the use of the high technology like computer but not
for those who operate manually. Some of them have view that there is a lot of gap
in job rotation so chances of getting training program is missed.
Table 4.1.1 is the perception of the employee on the training and development of the
Nepalese commercial banks. The statement is based on the training and development
practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as
neutral, 4 as disagree and 5 as strongly disagree (SD).

40
 Table 4.1.1
Training and Development of the Nepalese Commercial Banks
This table shows the percentage, frequency, mean of the employee perception regarding training and
development practices in the Nepalese commercial banks. The statement is based on the training and
development practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as
neutral, 4 as disagree and 5 as strongly disagree (SD).The aggregate percentage of strongly agree and
agree is done in order to assess the degree of total percentage on the agree and the aggregate percentage
of strongly disagree and disagree is done in order to assess the degree of total percentage on the
disagree.
Statements Strongly Agree Neutral Disagree Strongly N Mean
Agree Disagree
The design of the
training is F 41 107 22 18 2 190
according to the 2.12
need assessment % 21.6 56.3 11.6 9.5 1.1 100
of the employee.
A% 77.9 11.6 10.6 100

Training has F 35 126 29 0 0 190

improved my
0 0 1.97
performance. % 18.4 66.3 15.3 100
190
A% 84.7 15.3 0
Training and
development is F 14 67 88 20 1 190
used as a conflict
management % 7.4 35.3 46.3 10.5 .5 100 2.62
tools.
100
A% 42.7 46.3 11
Training and
development has F 19 126 44 1 0 190
helped me to
100 2.14
foster my career A 10 66.3 23.2 .5 0
development.
100
A% 76.3 23.2 .5
The contents of
190
the training F 12 111 48 19 0
programs are
0 100 2.39
always relevant % 6.3 58.4 25.3 10
to the changing
needs of my job. 100
A% 64.7 25.3 10
Weighted Average Mean 2.25
Source: Field survey, 2014
Table 4.1.1 depicts the training and development practices of Nepalese commercial
banks. among the 190 of the respondents majority of the (77.9 percent) respondents agree
on the statement that design of the training program is according to their need assessment
of the employee, (10.6 percent) of the respondents said that the design of the training and
development program is not according to their need however, (11.6 percent) of the
respondents are neutral on this view.

41
Among the respondents, majority of the (84.7 percent) respondents agreed that training
has improved their performance, (15.3 percent) of the respondents do not know whether
training and development has improved their performance or not.

From the study it was found that most of the (42.7 percent) respondents agreed that
training and development is used as a conflict management tool in their banks, (11
percent) of the respondents do not think training and development is used as a conflict
management tool in their banks. However, (46.3 percent) of the respondents do not know
whether training and development is used as the conflict management tools or not.

The study revealed that maximum (76.3 percent) of the respondents agreed that training
and development has helped them to foster in their career development, (.5 percent) of
the respondents do not think that training and development has helped them to foster in
their career development and (23.2 percent) of the respondents do not know whether
training and development helped them in fostering the career development or not.

The most of the (64.7 percent) respondents agree that contents of the training program is
according to the changing need of the employee, (10 percent) of the respondents thinks
that training is not conducted according to the employee needs and (25.3 percent) of the
respondents do not know whether the contents of the training program is according to the
changing need of the employee.

The mean value of the statement of training and development ranges from 1.97 to
2.62.Among them, the most significant observations on training and development is
training has improved respondents performance. The weighted mean for training and
development is 2.25 which indicate that on average Nepalese commercial bank has well
defined training and development program.

4.1.4. Major aspects of recruitment and selection in the Nepalese commercial banks
Major aspects of the recruitment and selection include respondents view on the questions
to recruitment and selection practices in their respective commercial bank (appendix1).
1. Satisfaction of the respondents on recruitment and selection: Among the 190
respondents, majority (73.7 percent) of the respondents said that they are satisfied
with the recruitment and selection process of the bank. The (18.9 percent) of the
42
 respondents are not satisfied with the recruitment and selection process of the
bank. The (7.4 percent) of the respondents dont know whether they are satisfied
or not by the recruitment and selection process of the bank
2. Respondents view on their selection on the basis of merits: The majority (74.2
percent) of the respondents agreed that they are selected on the basis of their
merits. However (13.2 percent) of the respondents doesnt agreed on the view
regarding they are not selected on the basis of their merits and (12.6 percent) of
the respondents dont know whether they are selected on the basis of merits or
not.
3. Sources of the external recruitment that satisfied most: Preference to
newspaper is given by (64.7 percent) of the respondents as the sources of the
external recruitment and none of the respondent prefer rehires as an external
sources of recruitment.
4. Sources of internal recruitment that satisfied most: The most (81.1 percent) of
the respondents preferred promotion from within and none of the respondents are
satisfied with the rehires as the internal sources of recruitment.
5. More convincing selection criteria: Better qualification and higher experience
option is more convincing criteria as mentioned by majority of (64.7 percent) of
the respondents,(14.7 percent) of the respondents prefer better qualification as the
convincing selection criterion, (11.6 percent ) of the respondents prefer higher
experience as a better selection criterion, (7.9 percent)of the respondents percent
prefer soft skills as the better selection criterion and (1.1 percent ) of the
respondents prefer employee referral as a better selection criteria.
6. Aspect of the bank attract at the time of recruitment: The majority of the
(44.7 percent) respondents said image of the bank attract them, (22.6 percent) of
the respondents said attractiveness of the job attract them, (20.5 percent) of the
respondents said good management attract them, (11.1 percent) of the respondents
said higher salary attract them and only (1.1 percent) of the respondents specify
other often like environment and merger of the bank.
Table 4.1.2 is the perception of the employee on the recruitment and selection of the
Nepalese commercial banks. The statement is based on the training and development

43
 practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as
neutral, 4 as disagree and 5 as strongly disagree (SD).
Table 4.1.2
Recruitment and Selection of the Nepalese Commercial Banks
This table shows the percentage, frequency, mean of the employee perception regarding recruitment and
selection in the Nepalese commercial banks. The statement is based on the training and development
practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as neutral, 4 as
disagree and 5 as strongly disagree (SD).The aggregate percentage of strongly agree and agree is done in
order to assess the degree of total percentage on the agree and the aggregate percentage of strongly
disagree and disagree is done in order to assess the degree of total percentage on the disagree.
Statements Strongly Strongly Mean
Agree Neutral Disagree N
Agree Disagree
Recruitment and
selection of the bank F 46 92 38 11 3 190
is based on the
principle of right % 24.2 48.4 20 5.8 1.6 100 2.12
people on the right
job at right time. A% 72.6 20 7.4 100
I am satisfied with
10 85 73 17 5 190
the recruitment and A
selection process
taken by the job 5.3 44.7 38.4 8.9 2.6 100 2.59
F
hiring companies like
(mero job, rolling
jobs) on behalf of the 100
bank. A% 50 38.4 11.5

Bank clearly A 11 113 60 4 2 190

identifies and relates 2.33
the position % 5.8 59.5 31.6 2.1 1.1 100
requirements with
the task. A% 65.3 31.6 3.2 100
190
I am selected on the A 42 110 33 5 0
basis of merits. 2.01
100
% 22.1 57.9 17.4 2.6 0
100
A% 80 17.4 2.6
190
Recruitment and F 22 90 58 17 3
selection system 2.42
47.4 30.5 8.9 1.6 100
followed in my bank % 11.6
is well defined A% 59 30.5 10.5 100
Weighted Average Mean 2.29
Source: Fieldsurey,2014
Table 4.1.2 shows the recruitment and selection practices in the Nepalese commercial
banks. Among the 190 respondents maximum of the (72.6 percent) agreed that
recruitment and selection of the bank is based on the principle of right people on the right
job at the right time, (20 percent) of the respondents are neutral on their view and (7.4
percent)of the respondents do not agree on the principle of the recruitment.

44
On the statement to respondent is satisfied, Most of the (50 percent) respondents are
satisfied with the recruitment and selection process taken by the hiring companies on
behalf of the bank, (11.5 percent) of the respondents are not satisfied with the recruitment
and selection process taken by the hiring companies and (38.4 percent) of the respondents
are neutral on their view.

Among the respondents, majority of the (65.3 percent) respondents agreed that bank
clearly identifies and relates the position requirement with the task,(3.2 percent) of the
respondents think that bank dont relates its position requirement with task and (31.6
percent) of the respondents are neutral on their view.

The study revealed that majority of the (80 percent) respondents are selected on the basis
of their merits, (2.6percent) of the respondents do not think that they are selected on the
basis of their merits and (17.4 percent) of the respondents are neutral on their view.

The most of the (59 percent) respondents agreed that recruitment and selection system
followed in Nepalese commercial bank is well defined, (10.5 percent) of the respondents
think that recruitment and selection process in their bank is not well defined however
(30.5 percent) of the respondents are neutral on the statement.

The mean value of the statement of recruitment and selection ranges from 2.01 to
2.51.Among them; the most significant observations on recruitment and selection are
respondents are selected on the basis of their merits. The weighted mean for recruitment
and selection is 2.29 which reveal that on average Nepalese commercial banks has well
defined process of selection and respondents.

4.1.5. Major aspects of performance appraisal in the Nepalese commercial banks

Major aspects of the performance appraisal include respondents view on the question to
performance appraisal in their respective commercial bank (appendix1).
1. Employee performance appraisal: Out of the 190 respondents, majority of the
(75.3 percent) respondents have their performance appraisal, (11.1 percent) of the
employee dont have their performance appraised and (13.7 percent) of the
respondents dont know about whether their performance is appraised or not.

45
2. Feedback of the performance appraisal: The most of the (48.9 percent)
respondents agreed that they that get feedback from the management after their
performance is appraised whereas (33.2 percent) of the respondents said that they
dont receive feedback and (17.9 percent) of the respondents dont know about
the feedback system.
3. Reasons for satisfaction from appraisal: The majority of the (41.6 percent)
respondents is satisfied because they can learn their weakness from performance
appraisal, (16.8 percent) of the respondents said they receive feedback timely,
(15.8 percent) of the respondents said performance appraisal leads to increase
their satisfaction level. (11.1 percent) of the respondents said that they receive
training after performance appraised, (14.7 percent)of the respondents mention
that performance appraisal do not satisfy them because they do not get feedback
about their performance.
4. Frequency of performance appraisal conduction: Once in a year employee
performance is appraised as mentioned by maximum of (76.8 percent) of the
respondents,(10.5 percent) of the respondents percent express performance
appraisal is done once in a month, (5.3 percent) of the respondents explain that
their performance is appraised once in a week, (4.7 percent) of the respondents
said that their performance is not appraised yet, (2.6 percent) of the respondents
gave their own view like there is not any transparent evaluation system, they do
not know whether management take evaluation or not.
5. Respondents feelings about performance evaluation: The majority of the
(31.6 percent) respondents have not realized their appraisal, (25.8 percent)of the
respondents find it fair evaluation system, (18.9 percent)of the respondents find it
somehow discrimination, (12.1 percent)of the respondents find their appraisal as
fully biased,(11.6 percent)of the respondents find it transparent.
6. Major problem behind the performance appraisal: The most of the (48.4
percent) respondents find that there is not proper feedback mechanism system,
(22. 1 percent) state that there is lack of corrective action (20 percent) of the
respondents think lack of skill of the rater, (8.4 percent) of the respondents find it
biases, and (1.1 percent) of the respondents percent specify the other reason

46
 behind it like all of the mention option, lack of proper parameter of performance
appraisal.
Table 4.1.3 is the perception of the employee on the recruitment and selection practices
of the Nepalese commercial banks. The statement is based on the training and
development practices and is measured in five likert scale 1 as strongly agree (SA), 2 as
agree, 3 as neutral, 4 as disagree and 5 as strongly disagree (SD).
Table 4.1.3
Performance Appraisal of Nepalese Commercial Banks
This table shows the percentage, frequency, mean of the employee perception regarding performance
appraisal in the Nepalese commercial banks. The statement is based on the training and development
practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as neutral, 4 as
disagree and 5 as strongly disagree (SD).The aggregate percentage of strongly agree and agree is done in
order to assess the degree of total percentage on the agree and the aggregate percentage of strongly
disagree and disagree is done in order to assess the degree of total percentage on the disagree.
Statements Strongly Agree Neutral Disagree Strongly N Mean
Agree Disagree
The evaluation reflects
the quality of my F 34 99 39 18 0 190
performance. 17.9 52.1 20.5 9.5 0 100
A
2.22
70 20.5 9.5 100
A%
Performance appraisal
has helped me to identify .F 24 111 34 21 0 190
my strengths and 12.6 58.4 17.9 11.1 0 100
weaknesses. A 2.27
71 17.9 11.1 100
A%
Performance appraisal F 22 91 53 24 0 190
has helped me to
A 11.6 47.9 27.9 12.6 0 100
strengthen my job skills.
A% 59.5 27.9 12.6 100 2.42

I receive necessary 19 65 66 33 7 190

.F
training if there is
performance deficiency A 10 34.2 34.7 17.4 3.7 100
2.71
44.2 34.7 21.1 100
A%
I receive feedback and
counseling when there is
performance deviation.
F 12 85 68 20 5 190 2.58

A 6.3 44.7 35.8 10.5 2.6 100

A% 51.1 35.8 13.1 100

Weighted Average Mean 2.44
Source: Field survey, 2014

47
Table 4.2.3 is the respondents perception on their performance appraisal. Out of 190
respondents, majority (70 percent) of the respondents agreed that the evaluation reflect
the quality of their performance,(9.5 percent) of the respondents do not think so and (20.5
percent) of the respondents dont know whether their evaluation reflects the quality of
performance or not.

The majority of the (71 percent) respondents agreed that performance appraisal help to
identify strength and weakness (11.1 percent) of the respondents do not think that
performance appraisal help to identify strength and weakness and (17.9 percent) of the
respondents are neutral on their view.

Among the respondents, majority of the (59.5 percent) respondents agreed that
performance appraisal help to strengthen their job skill, (12.6 percent) of the respondents
do not think that performance appraisal helps in strengthening their job skills and (27.9
percent) of the respondents are neutral on their view.

The study revealed that majority of the (51.1 percent) respondents agree that they receive
feedback and counseling when there is performance deviation,(13.1 percent) of the
respondents do not receive counseling when there is performance deviation and (35.8
percent) of the respondents are neutral regarding their view.

The mean value of performance appraisal ranges from the 2.22 to 2.77.Among them; the
most significant observation on performance appraisal is the evaluation reflects the
quality of respondents performance. The weighted average for performance appraisal is
2.44 which reveal that on an average Nepalese commercial bank has proper appraisal
system.

4.1.6. Major aspects of employee participation in decision making in the Nepalese

commercial banks
Major aspects of the performance appraisal include respondents view on the questions to
performance appraisal in their respective commercial bank (appendix1).

1. Respondents participation in decision making: Out of 190 respondents

majority of the (61.6 percent) respondents participate in the decision making

48
 process, (38.4 percent) of the respondents dont participate in the decision making
process.
2. Appreciation of the suggestion in decision making: The most of the (58.4
percent) respondents suggestions are appreciated in decision making and (41.6
percent) of the respondents percent respondents suggestion are not appreciated in
decision making process.
3. Bank encouragement in decision making: The majority (47.4 percent) of the
respondents said bank vary rarely encourage in decision making process (17.9
percent) of the respondents said that bank always encourage in decision making
process, (15.8 percent) of the respondents said bank sometimes participate in
decision making, (12.1 percent) of the respondents said bank never encourage in
decision making, (6.8 percent) dont know the opinion regarding whether they
participate in decision making or not.
4. Employee participation helping the employee: Employee participation helps to
build leadership quality is mentioned by majority of (31.6 percent) of the
respondents, (23.7 percent) of the respondents said that it will help to resolve
conflict, (20 percent) of the respondents said that it helps in enhancing the
empowerment of the employee, (19.5 percent) of the respondents have other view
regarding the employee participation employee participation helps to know and
learn from other idea, (5.3 percent) of the respondents said participation helps in
increasing the authority.
5. Form of employee participated in decision making process: In suggestion /
advisory group majority (33.7 percent) of the respondents are involved), (30.5
percent) of the respondents participated as the problems solving groups, (24.21
percent) of the respondents do not have participation in decision making process.
6. Meeting attend by the respondents: The maximum of the (36.8 percent)
respondents attend meeting once in a month, (25.3 percent) of the respondents
attend once in a week, (16.3 percent) of the respondents do not attend meeting,
(13.2 percent) attend twice in a month, (8.4 percent) of the respondents percent
mention others reason like as per need base, everyday department meeting,

49
 occasionally, very rarely, sometime, semiannually, quarterly employee attend the
meeting.
Table 4.1.4 is the perception of the employee on the employee participation in
decision making of the Nepalese commercial banks. The statement is based on the
training and development practices and is measured in five likert scale 1 as strongly
agree (SA), 2 as agree, 3 as neutral, 4 as disagree and 5 as strongly disagree (SD).
Table 4.1.4
Employee participation on decision making of Nepalese commercial banks
This table shows the percentage, frequency, mean of the employee perception regarding employee
participation in decision making in the Nepalese commercial banks. The statement is based on the training
and development practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as
neutral, 4 as disagree and 5 as strongly disagree (SD).The aggregate percentage of strongly agree and
agree is done in order to assess the degree of total percentage on the agree and the aggregate percentage
of strongly disagree and disagree is done in order to assess the degree of total percentage on the
disagree.
Statements Strongly Agree Neutral Disagree Strongly N Mean
Agree Disagree
I can give suggestion
in my way. F 26 97 46 18 3 190

% 13.7 51.1 24.2 9.5 1.6 100 2.34

A% 64.7 24.2 11.1 100

I am asked by my 10 84 74 17 5 190
superiors to participate F
in operation related % 5.3 44.2 38.9 8.9 2.6 100
decisions. 2.59
49.5 38.9 11.5 100
A%

I have a lot of F 36 106 39 9 0 190

responsibilities in my
job. % 18.9 55.8 20.5 4.7 0 100 2.11
A
% 74.7 20.5 4.7 100
Participation has 18 97 59 13 3 190
helped to resolve the F
differences between % 9.5 51.1 31.1 6.8 1.6 100
the employees and the 2.40
management. 100
A% 60.5 31.1 8.4
I have the authority to
190
correct problems F 19 73 67 26 5
whenever they occur.
% 10 38.4 35.3 13.7 2.6 100
2.61
190
A% 48.4 35.3 16.3
Weighted Average Mean 2.41
Source: Field survey, 2014

50
Table 4.1.4 is the employee perception regarding the employee participation in decision
making. Among the 190 respondents, (64.7 percent) of the respondents agreed that they
can give suggestion in their way,(11.1 percent) of the respondents cannot give their
suggestion in their way and 24.2 percent of the respondents are neutral on their view.

The majority of the (49.5 percent) respondents agreed that they are asked by their
supervisors to participate in the operation related decision, (11.5 percent) of the
respondents are not asked by their superiors to participate in operation related decision
and 38.9 percent of the respondents are neutral regarding their view.

Among the respondents, most of the (74.7 percent) respondents have a responsibilities in
their jobs however, (8.4 percent) of the respondents dont have responsibility in their job
and (20.5 percent) of the respondents are neutral in their view.

The study found that majority of the (60.5 percent) respondents agreed that participation
has helped to resolve the differences, (8.4 percent) of the respondents do not think that
participation has helped to resolve the differences however, (31.1 percent) of the
respondents are neutral on this view.

The majority of the (48.4 percent) respondents have authority to correct the problems
whenever they occur, (16.3 percent) of the respondents do not have authority to correct
problems whenever they occur whereas (35.3 percent) of the respondents are neutral
regarding their view.

The mean value of the statement of employee participation in decision making ranges
from 2.11 to 2.61. .Among them, the most significant observation on employee
participation in decision making is respondents have a lot of responsibility in their
work. The weighted mean for the employee participation in decision making 2.41 which
reveals that on an average Nepalese commercial bank participate its employee in the
decision making but not to the higher extent.

4.1.7. Major aspects of compensation in the Nepalese commercial banks

Major aspects of the compensation include respondents view on the questions to
compensation practices in their respective commercial bank (appendix1).

51
 1. Opportunity to earn commission: Out of the 190 respondents, majority of the
(82.1 percent) respondents do not have an opportunity to earn commission
whereas (17.9 percent) of the respondents have an opportunity to earn
commission.
2. Banks compensation package: The majority of the (59.5 percent) respondents
does not receive compensation whereas (40.5 percent) of the respondents.
3. Indirect compensation satisfy most: From the protection program like pension
majority of (37.4 percent) of the respondents are satisfied, (27.9 percent) of the
respondents is satisfy by the credits loan that the employee receive from their
respective banks, (25.3 percent) of the respondents is satisfy by the paid vacation,
(9.5 percent) of the respondents is satisfy by the childcare facilities program.
4. Impact of compensation on employee performance: The majority (62.1
percent) of the respondents said that higher salary has positive outcomes on their
performance, (25.8 percent) of the respondents said bonus increase their
outcomes, (7.4 percent) of the respondents said commission (4.2 percent)of the
respondents said stock option impact their performance and (.5 percent) of the
respondents specify the other option like allowance.
5. Motives of compensation: The maximum of (43.7 percent) respondents specify
that compensation leads to increased satisfaction, (25.8 percent) specify that
compensation leads to resolve the financial problem of the employee,(16.8
percent) of the respondents find that compensation boost of the confidence of the
employee. (13.7 percent) specify that it will leads to enhance the identity of the
employee.
6. Reasons for respondents receiving incentive: The majority of the respondents
(36.8 percent) said due to the higher qualification, (32.6 percent) of the
respondents said due to their effective performance they are receiving
incentive,(21.6 percent) of the respondents said due to their better soft skills and
(8.9 percent) of the respondents said due to the high participation with the
management they have been receiving the incentives.
Table 4.1.5 is the perception of the compensation of the Nepalese commercial banks. The
statement is based on the training and development practices and is measured in five

52
likert scale 1 as strongly agree (SA), 2 as agree, 3 as neutral, 4 as disagree and 5 as
strongly disagree (SD).
Table 2.1.5
Compensation of Nepalese commercial banks
This table shows the percentage, frequency, mean of the employee perception regarding compensation
package in the Nepalese commercial banks. The statement is based on the training and development
practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as neutral, 4 as
disagree and 5 as strongly disagree (SD).The aggregate percentage of strongly agree and agree is done in
order to assess the degree of total percentage on the agree and the aggregate percentage of strongly
disagree and disagree is done in order to assess the degree of total percentage on the disagree.
Statements Strongly Agree Neutral Disagree Strongly N Mean
Agree Disagree
I am satisfied with
A 15 85 55 29 6 190
the salary that I
am receiving.
F 7.9 44.7 28.9 15.3 3.2 100 2.61

A% 52.6 28.9 18.5 100

I have an
A 16 109 56 8 1 190
opportunity to
earn bonuses or
compensation in F 8.4 57.4 29.5 4.2 .5 100 2.31
my bank.
A% 65.8 29.5 4.7 100
My pay
A 21 80 66 18 5 190
encourages me to
improve the
quality of my F 11.1 42.1 34.7 9.5 2.6 100 2.51
work life.
A% 53.2 34.7 12.1 100
The policy of the
A 9 71 90 14 6 190
bank regarding
compensation
practices is fair F 4.7 37.4 47.4 7.4 3.2 100 2.67
enough to
motivate me. A% 42.1 47.4 10.6 100
Bank has
A 17 58 91 19 5 190
favorable
incentives
practices to F 8.9 30.5 47.9 10 2.6 100 2.57
encourage me to
achieve the bank .A% 39.5 47.9 12.6 100
goals

Weighted Average Mean 2.45

Source: Field survey, 2014
Table 4.1.5 is the respondents view regarding the compensation package practices in the
Nepalese commercial bank. Out of 190 respondents, (52.6 percent) of the respondents are

53
satisfied with the salary that they are receiving, (28.9 percent) of the respondents are
neutral on their view and (18.5 percent of the respondents are dissatisfied with their
salary.
The study found that majority of the (65.8 percent) respondents have an opportunity to
earn bonuses, (4.7 percent) of the do not have opportunity to receive compensation and
(29.5 percent) of the respondents have neutral view.

The study revealed that majority of (53.2 percent) of the respondents agreed that their pay
encourage to improve their quality of their work life, (34.7 percent) of the respondents
are neutral on this view and (12.1 percent) of the respondents do not agree that their pay
encourage to improve their quality of work life.

Among the respondents, majority of (47.4 percent) of the respondents do not know
whether compensation policy of the bank is fair or not, (42.1 percent) of the respondents
agreed that bank compensation policy is fair and (10.6 percent) of the respondent think
that compensation policy of the bank is not fair.

The most of the (47.9 percent) of the respondent are neutral on the view that bank has
favorable incentives practices to encourage the respondents to achieve their bank goal.
The (39.5 percent) of the respondents agreed that bank has favorable incentives practices
to encourage the respondents to achieve their bank goal, and (12.6 percent) of the
respondents disagree that bank have favorable incentive practices.

The mean value of the compensation practices ranges from 2.31 to 2.67. Among all, the
most significant observation of the employee compensation practices is respondents
have an opportunity to earn bonus and compensation in their bank. The weighted mean
for compensation practices is 2.45 which reveal that on average Nepalese commercial
banks are providing the better incentives to its employee.
4.1.8. Major aspects of employee organization commitment in the Nepalese
commercial banks
Major aspects of the employee organization commitment include respondents view on the
questions to their organization commitment of their respective commercial bank
(appendix1).

54
1. Loyalty toward the job: The most of (93.7 percent) respondents are loyal
towards their job however, (3.2 percent) of the respondents are not loyal toward
their job.
2. Personal need of the respondent taking care by the bank: The majority of
(45.3 percent) respondents express that bank is taking care of their personal needs
however, (29.5percent) of the respondents express that bank is not taking care of
their personal needs.
3. Commitment of employee towards the bank: When respondents are promoted
they are more committed toward the bank as mentioned by majority of (46.3
percent) of the respondents , ( 18.9 percent) think that when they receive more
benefits they feel more committed toward the bank, (17.9 percent) think that when
there is more power distance between management and them they feel more
committed, (16.3percent) of the respondents think when they receive training
according to their needs they feel more committed and (.5 percent) specify the
other reason like when the respondents is more appreciated.
4. Factor influencing toward work commitment: The most (41.6 percent) of the
respondents think better job design influence them toward their work
commitment,(40.5 percent)of the respondents think that better corporate culture
influence them toward their work commitment, (11.1 percent) of the respondents
think that high empowerment influence them more,( 6.3 percent) of the
respondents think that high autonomy influence them toward their work
commitment, and (.5 percent) of the respondents specify the other reason like high
salary influence the respondents towards their work commitment.
5. Banks satisfy to the extent of: Sometimes bank satisfy respondents needs is
mentioned by majority of (53.2 percent) of the respondents, (19.5 percent) of the
respondents think that bank rarely satisfy their need, (13.7 percent) of the
respondents said that bank extremely satisfy their needs, (12.6 percent) think that
bank do not have concern on their satisfaction, whereas (1.1 percent) of the
respondents said bank never have satisfy their personal need.
6. Importance to build the career in the bank: The most of (34.2 percent)
respondents said that it is partially important to build their career in their bank ,

55
 (31.6 percent) of the respondents have mixed feelings about the important to build
their career in their bank, ( 18.4 percent) of the respondents feels very important
to build their career in their present working bank, (11.1 percent) of the
respondents have no importance to build the career in their bank whereas (4.7
percent) of the respondents have no idea regarding whether to build career in their
bank or not.
Table 4.1.6 is the perception of the employee organization commitment of the
Nepalese commercial banks. The statement is based on the employee organization
commitment practices and is measured in five likert scale 1 as strongly agree (SA), 2
as agree, 3 as neutral, 4 as disagree and 5 as strongly disagree (SD).

Table 4.1.6
Employee organization commitment of Nepalese commercial bank
This table shows the percentage, frequency, mean of the employee perception regarding employee
organization commitment in the Nepalese commercial banks. The statement is based on the training and
development practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as
neutral, 4 as disagree and 5 as strongly disagree (SD).The aggregate percentage of strongly agree and
agree is done in order to assess the degree of total percentage on the agree and the aggregate percentage
of strongly disagree and disagree is done in order to assess the degree of total percentage on the
disagree.
Statements Strongly Agree Neutral Disagree Strongly N Mean
Agree Disagree
I am allowed to handle F 14 32 76 57 11 190
problem myself. % 7.4 16.8 40 30 5.8 100
A% 24.2 40 35.8 100 3.10
I have decided to make this F 27 107 44 8 4 190
profession as my own
% 14.2 56.3 23.2 4.2 2.1 100
career. 2.24
A% 70.5 23.2 6.3 100
I have strong emotional F 23 90 57 16 4 190
attachment with the bank.
A 12.1 47.4 30 8.4 2.1 100
2.41
A% 59.5 30 10.5 100
I am allowed to be creative F 26 85 67 11 1 190
when I deal with problems A 13.7 44.7 35.3 5.8 .5 100
at work. 2.35
100
A% 58.4 35.3 6.3
I would accept almost any 26 90 57 9 2 190
F
type of job assignment in
order to keep working for % 16.8 47.45 30 4.7 1.1 100
this organization.
100 2.26
A% 64.2 30 5.8
Weighted Average Mean 2.47

Source: Field survey, 2014

56
Table 4.1.6 is the respondents perception on their organization commitment. Out of the
190 respondents majority of the respondents are neutral on their view to they are allowed
to handle the problems themselves, (35.8 percent) of the respondents think that they
receive management approval before they handle the problems and (24.2 percent) of the
respondents said that they do not need to get management approval before they handle
the problem.

The study found that majority of the (70.5 percent) respondents has decided to make
banking profession as their career, (23.2 percent) of the respondents are neutral on their
view and (6.3 percent) of the respondents have not decided to make banking professions
as their career. Maximum of (59.5 percent) of the respondents have emotional attachment
with the bank, (30 percent) of the respondents do not have emotional attachment with the
present bank and only (10.5 percent) of the respondents do not know whether they have
emotional attachment with the bank or not.

From the study, it revealed that most of the (58.4 percent) respondents are allowed to be
creative when they deal with the problem and (6.3 percent) of the respondents are not
allowed to be creative whereas 35.3 percent of the respondents are neutral on their view.

Among the respondents, majority (62.2 percent) of the respondents agreed that they
would accept any job assignment to keep working or their bank, (30 percent) of the
respondents are neutral on their view and (5.8 percent) of the respondents do not accept
job assignment to keep working for the organization.

The mean value of the statement of employee organization commitment ranges from 2.24
to 3.10. Among all, the most significant observation of employee organization
commitment is respondents have decided to make banking profession as their own
career. The weighted mean of the employee organization commitment is 2.47 which
indicates that on an average employee of the Nepalese commercial bank is committed
towards their bank but not to the higher extent.
4.1.9. Major aspects of employee job satisfaction in the Nepalese commercial banks
Major aspects of the employee job satisfaction include respondents view on the questions
to their organization commitment of their respective commercial bank (appendix1).

57
1. Satisfaction from the corporate culture of the bank: The maximum (51.1
percent) of the respondents are satisfied with the corporate culture of the bank,
(32.1 percent) of the respondents are not satisfied with the corporate culture of the
bank and (16.8 percent) of the respondents doesnt know whether they are
satisfied with the corporate culture of the bank or not.
2. Freedom in work: Freedom on work is enjoyed by majority of (58.9 percent) of
the respondents, (31.6 percent) of the respondents do not have freedom on their
work and (9.5 percent) of the respondents dont know whether they have freedom
in their work or not.
3. Factor important for job satisfaction: The majority (44.7 percent) of the
respondents said promotion as the important factor of job satisfaction, (29.5
percent) of the respondents answer the working condition, (23.7 percent) of the
respondents answer pay and (1.1 percent) of eth respondents said supervision and
other option like training program.
4. Earning relative to other employee of same position: The most of the (37.9
percent) respondents said that lower earning than there, (33.7 percent) of the
respondents said higher earning than year, (14.2 percent) of the respondents said
equal earning than there, (5.8 percent) of the respondents said very high earning
than their and (8.4 percent) of the respondents said very lower earning than theirs.
5. Benefits satisfies the most: The maximum (48.9 percent) of the respondents said
that retirement benefits satisfy them most, (45.8 percent) of the respondents said
bonus satisfy them most, (2.6 percent) of the respondents said medical insurance
satisfy them most, (2.1 percent) of the respondents said longer vacation leave
satisfy them most and only (.5 percent) of the respondents said dashain allowance
satisfy them most.
6. Motivation by the management: Management listen to employee suggestion is
mentioned by (81.1 percent) of the respondents, (26.3 percent) of the respondents
said that management address their problem, (23.7 percent) of eth respondents
said that management provide incentives to motivate their employee, (17.1
percent) of the respondents said that management doesnt motivate them and only

58
 (1.1percent) of the respondents specify other reason like sometimes management
use to provide feedback to them.
Table 4.1.7 is the perception of the employee job satisfaction of the Nepalese
commercial banks. The statement is based on the employee job satisfaction
practices and is measured in five likert scale 1 as strongly agree (SA), 2 as agree,
3 as neutral, 4 as disagree and 5 as strongly disagree (SD).
Table 4.1.7
Employee job satisfaction of the Nepalese commercial bank
This table shows the percentage, frequency, median of the employee perception on their job satisfaction in
the Nepalese commercial banks. The statement is based on the training and development practices and is
measured in five likert scale 1 as strongly agree (SA), 2 as agree, 3 as neutral, 4 as disagree and 5 as
strongly disagree (SD).The aggregate percentage of strongly agree and agree is done in order to assess the
degree of total percentage on the agree and the aggregate percentage of strongly disagree and disagree is
done in order to assess the degree of total percentage on the disagree.
Statements Strongly Agree Neutral Disagree Strongly N Mean
Agree Disagree

F 18 83 74 13 2 190
I am comfortable
with the corporate 9.5 43.7 38.9 6.8 1.1 100 2.46
%
culture of the
bank. A% 53.2 38.9 7.9 100

F 12 113 57 8 0 190
Quality of work
life has been 6.3 59.5 30 4.2 0 100 2.32
%
improved because
of my present job. A% 65.8 30 4.2 100

There is less 22 80 71 14 3 190

F
power distance
between me and 11.6 42.1 37.4 7.4 1.6 100 2.45
my seniors which A
increases
participation on 53.7 37.4 9 100
decision making. A%
F 14 111 56 8 1 190
I feel encourage to
come up with new A 7.4 58.4 29.5 4.2 .5 100 2.32
ideas of doing
things. A% 65.8 29.5 4.7 100

10 105 62 9 4 190
F
I have autonomy
5.3 55.3 32.6 4.7 2.1 100 2.43
in my work which A
motivates me to
60.6 32.6 6.8 100
perform better. A%
Weighted Average Mean 2.40
Source: Field survey, 2014

59
Table 4.1.7 is the respondents perception on their job satisfaction level. Among the 190
respondents, majority (53.2 percent) of them are comfortable with the corporate culture
of the bank, (7.9 percent) of the respondents are not comfortable with the culture of the
bank however, (38.9 percent) of the respondents are neutral on their view. They do not
express clearly whether they like or dislike the corporate culture of the bank.

From the study, it found that maximum (65.8 percent) of the respondents quality of work
life has been improved through the present jobs, (30 percent) of the respondents are
neutral on their and only (4.2 percent) of the respondents quality of work life has not
been improved through their present job.

Among the respondents, most of the ( 53.7 percent) respondents have less power distance
between them and their seniors which increases participation in decision making, (37.4
percent) of the respondents are neutral on their view and ( 9 percent) of the respondents
said that there is more power distance between them and their seniors.

The majority (65.8 percent) of the respondents feel encourage to come up with new ideas,
(29.5 percent) of the respondents are neutral on their view and only (4.7 percent) of the
respondents think are do not feel encourage to come up with new ideas.

The study found that majority (65.8 percent) of the respondents have autonomy in their
work and (4.7 percent) of the respondents do not have autonomy on their work whereas
(29.5 percent) of the respondents do not know whether they have autonomy in their work
or not.

The mean value of all the statement of the employee job satisfaction ranges from 2.32 to
2.46. Among all, the most significant observation is quality of work life has been
improved and respondents feel encourage to come with new ideas. The weighted mean
for employee for job satisfaction is 2.40 reflects that on an average employee of the
commercial banks are satisfied with their job but not in the higher extent.

4.2. Kendalls tau-b correlations coefficient for human resources management and
employee organization commitment, employee job satisfaction
Kendalls Tau correlation is used to analyze the relationship between training and
development and its impact on employee organization commitment. The Kendalls rank

60
coefficient is often used as a test statistic in a statistical hypothesis test to establish
whether two variables may be regarded as statistically dependent. The value of Tau-b
range from -1(100% negative association, or perfect inversion) to +1 (100% positive
association, or perfect agreement). A value of zero indicates the absence of association.
Kendalls rank correlation coefficient, commonly referred to as Kendalls tau ()
coefficient, is a statistic used to measure the association between two measured
quantities. A tau test is a non- parametric test for statistical dependence based on the tau
coefficient.

Kendalls tau-b correlation coefficients have been computed and the results are presents
in the table 4.3.1.Here in table training and development, recruitment and selection,
performance appraisal, employee participation in decision making and compensation
practices are used as independent variable of human resources management and
organization commitment and job satisfaction are used as dependent variable of
employee outcomes.

Table 4.2.1
Kendalls correlations coefficient of Human resources management and employee
organization commitment, employee job satisfaction in Nepalese commercial banks
This table reveals the Kendalls correlation coefficient between human resource management and
employee organization commitment, employee job satisfaction of Nepalese commercial banks. Human
resource management includes training and development, recruitment and selection, performance
appraisal, employee participation in decision making and compensation practices. * sign indicates that
correlation is significant at 1 percent level, ** indicate that correlation is significant at 5 percent
significant level and, *** indicated that correlation coefficient is significant at 10 percent level.

OC JS TD RS PA EPDM CP
OC 1
JS .288* 1
TD .146* .221* 1
RS .284* .333* .266* 1
PA .180* .222* .263** .338* 1
EPDM .267* .373* .270* .295* .261* 1
CP .279* .375* .188* .327* .107** .316* 1
Source: SPSS results based on responses on survey questionnaire in Appendix B

61
Table 4.2.1 shows the correlation between human resource management s and employee
organization commitment, employee job satisfaction. All the correlations have been
considered low since the highest correlation has been observed to be 0.375 between
compensation practices and job satisfaction. The results indicate that training and
development is positively and significantly related to organization commitment and job
satisfaction. Increase in the proper design of the training and development leads to
increase the employee organization commitment and employee job satisfaction.
Similarly, recruitment and selection is positively and significantly correlated with
employee organization commitment and employee job satisfaction. Increase in well
defined process of selection leads to increase the employee organization commitment and
employee jobs satisfaction. Performance appraisal is positively and significantly
correlated with employee organization commitment and employee job satisfaction.
Higher the bank fair and transparent performance evaluation, higher the employee
organization commitment and employee job satisfaction. Employee participation in
decision making has positive and significant relationship with employee organization
commitment and employee job satisfaction. Increase in employee participation in
decision making, leads to increase the employee organization commitment and employee
job satisfaction. The results also indicate that compensation is positively and significantly
correlated with the employee organization commitment and employee job satisfaction.
When bank provide compensation to its employee in the form of credit loans, allowance
it tends to increase the employee job satisfaction of Nepalese commercial bank.

4.3. Regression Analysis

Regression analysis results are the statistical tools for the data analysis. The outputs of
SPSS are shown in the following tables. Tables are explained and shown according to the
primary data analysis. The pooled cross section data for weighted average responses for
each aspects and each component of human resources management variable given by 190
respondents are used. Step-wise regression is done for the variables of HRM and
employee organization commitment, employee job satisfaction.

The regression of human resource management and employee organization commitment

is shown in table 4.4.1. Here in table training and development, recruitment and selection,

62
performance appraisal, employee participation in decision making and compensation
practices are used as independent variable and employee organization are used as
dependent variable.

Table 4.3.1
Regression of Employee organization commitment and HRM variable
The results are based on the weighted mean value of perceived likert value of 30 commercial banks with
190 observations of 2014 survey by using linear regression model. The model is, OC=0 + 1TD+ 2RS+
3PA+ 4EPDM+ 5CP + where OC, TD, RS, PA, EP, CP are employee organization commitment,
training and development, recruitment and selection, performance appraisal, employee participation in
decision making and compensation practices. * sign indicates that correlation is significant at 1 percent
level, ** indicate that beta coefficient is significant at 5 percent significant level and, *** indicated that
correlation coefficient is significant at 10 percent level.
Model Intercept TA RS PA EPDM CP Adj SEE F
2
R
1 1.119 .644 .083 .908 18.136
(3.233)* (4.259)*
2 1.664 .402 .039 .929 8.735
(5.151)* (2.956)*
3 1.687 .354 .069 .915 15.016
(13.186)* (3.875)*
4 1.383 .490 .089 .905 19.537
(5.023)* (4.420)*
5 1.863 .275 .025 .936 5.828
(6.232)* (2.414)*
6 .794 .551 .232 .091 .904 10.505
(1.999)* (3.431)* (1.646)***
7 .667 .453 .147 .219 .110 .895 8.773
(1.679)*** (2.741)* (1.012) (.029)**
8 .759 .090 .254 .372 .029 .119 .890 7.380
(2.000)** (.571) (2.630)* (2.924)* (.828)
9 .830 .271 .382 .055 .122 .888 9.766
(2.320)** (2.963)* (3.032)* (.453)
Source: SPSS results based on responses on survey questionnaire in Appendix

Notes (1) Figures in parentheses are t-values

(2) *, ** and*** denotes that results are significant ay 1%, 5% and 10% level respectively.

63
Table 4.3.1 is the regression of employee organization commitment and the human
resources management. The table indicates that beta coefficient for training is positive for
employee organization commitment. The results indicate that higher the banks training
and development program, higher would be the employee organization commitment
where beta coefficients are significant at 1 percent level of significance for all the
equations. The beta coefficient for recruitment and selection is positive and significant
for the model 2 and 6. However, the beta coefficient for recruitment and selection is not
significant for the model 7 and 9. The result indicates that higher the banks relate position
requirement with task during employee selection, higher would be the employee
organization commitment of the Nepalese commercial bank. The beta coefficients are
positive for performance appraisal, employee participation in decision making. It reveals
that higher the fair evaluation system of the banks, higher would be the employee
organization commitment where beta coefficient is significant at 1 and 5 percent level of
significance. Similarly, higher the employee participation in decision making, higher
would be the employee organization commitment where beta coefficients are significant
at 1 percent level of significance. The beta coefficient for compensation practices is
positive and significant for the model 5 at 1 percent level of significance. However beta
coefficient for compensation practices is not significant for the model for the model 8, 9.
It indicates that higher the compensation practices of the banks, higher would be the
employee organization commitment.

On the basis of results shown in the table 4.4.1, HR practices have significant and
positive relation with employee job satisfaction intention, which supports H1, H2, H3,
H4, and H5.

The regression of human resource management and employee job satisfaction is shown in
table 4.4.2. Here in table training and development, recruitment and selection,
performance appraisal, employee participation in decision making and compensation
practices are used as independent variable and employee job satisfaction are used as
dependent variable.

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 Table 4.3.2

Regression of employee job satisfaction and HRM variable

The results are based on the weighted mean value of perceived likert value of 30 commercial banks with
190 observations of 2014 survey by using linear regression model. The model is, JS=0 + 1TD+ 2RS+
3PA+ 4EPDM+ 5CP + where JS, TD, RS, PA, EP, CP are employee job satisfaction, training and
development, recruitment and selection, performance appraisal, employee participation in decision making
and compensation practices. * sign indicates that correlation is significant at 1 percent level, **
indicate that beta coefficient is significant at 5 percent significant level and, *** indicated that
correlation coefficient is significant at 10 percent level.

Mo Intercept TA RS PA EPDM CP Adj SEE F

del R2
1 1.597 .356 .081 .511 17.570
(8.209)* (4.192)*
2 1.359 .453 .174 .484 40.952
(8.182)* (6.399)*
3 1.911 .196 .067 .514 14.620
(14.399)* (3.824)*
4 1.143 .521 .333 .435 95.360
(8.636)* (9.765)*
5 1.359 .407 .204 .475 49.547
(8.962)* (7.039)*
6 1.050 .200 .391 .194 .478 23.758
(5.000)* (2.360)** (5.421)*
7 1.009 .169 .364 .070 .197 .477 16.485
(4.766)* (1.919)** (4.707)* (1.322)
8 .544 .169 .062 .375 .159 .401 .412 32.649
(3.097)* (2.329)** (1.936)** (6.359)* (2.632)*
9 .679 .095 .393 .210 .387 .412 40.755
(4.042)* (2.210)** (6.649)* (3.656)*
Source: SPSS results based on responses on survey questionnaire in Appendix

Notes (1) Figures in parentheses are t-values

(2) *, ** and*** denotes that results are significant ay 1%, 5% and 10% level respectively.

Table 4.3.2 is the regression table of employee job satisfaction and human resource
management variables. The table shows that beta coefficient for training and

65
development is positive for employee job satisfaction. The results indicate that higher the
banks training and development program, higher would be the employee job satisfaction
where beta coefficient is significant at 1 and 5 percent of significance. The beta
coefficient for recruitment and selection is positive for employee job satisfaction. The
result indicates that higher the bank relates position requirement with task during
employee selection, higher would be the employee job satisfaction of the Nepalese
commercial bank where beta coefficient is significant at 1 and 5 percent of significance.
The beta coefficient for the performance appraisal is positive and significant for the
model 3, 8, 9. However, beta coefficient for performance appraisal is not significant for
the model 7. It reveals that higher the banks fair evaluation system, higher would be the
employee job satisfaction. The beta coefficient for the employee participation in decision
making and compensation practices is positive. It indicates that higher the employee
participation in decision making, higher the employee job satisfaction where beta
coefficient is significant at 1 percent level of significance. Similarly, higher the banks
compensation, higher the employee job satisfaction where beta coefficient is significant
at 1 percent level of significance.

On the basis of results shown in the table 4.4.2, HR practices have significant and
positive relation with employee job satisfaction intention, which supports H1, H2, H3,
H4, and H5.

4.4. Concluding remarks

The survey showed in the table 4.1.1 is the perception of the employee regarding training
and development of the Nepalese commercial bank. The weighted mean for training and
development is 2.25 which indicate that Nepalese commercial bank is conducting the
training that is beneficial to the employee. The results also indicate that most of the
respondents are satisfied with training and development activities conducted by their
respective banks. The survey showed in the table 4.1.2 is the perception of the employee
regarding recruitment and selection process of the Nepalese commercial bank. The
weighted mean for recruitment and selection is 2.29 which reveals that Nepalese
commercial banks has well defined process of selection and respondents are satisfied
with the recruitment and selection process conducted by the bank. Table 4.1.3 is the

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perception of the employee regarding performance appraisal of the Nepalese commercial
bank. The weighted mean for performance appraisal is 2.44which reveal that on an
average Nepalese commercial bank has proper appraisal system. Table 4.1.4 is the
perception of the respondents view on their participation in decision making .The
weighted average for the employee participation in decision making 2.41 which reveals
that the Nepalese commercial bank participate its employee in the decision making but
not to the higher extent. Table 4.1.5 is the perception of the respondents view on
compensation of their bank. The weighted mean for compensation is 2.45 which reveal
that Nepalese commercial banks are providing the incentives to its employee but not the
higher extent that makes its employee fully satisfied. Table 4.1.6 is the perception of the
respondents views their organization commitment. The overall weighted mean of the
employee organization commitment is 2.47 which indicate that to some extent employee
of the commercial bank are neutral on their view to organization commitment. Table
4.1.7 is the perception of the respondents views their job satisfaction. The weighted mean
for job satisfaction is 2.40 reflects that employee of the commercial banks are job
satisfied at an average level.
On the basis of the results shown in the able 4.2.1 training and development, recruitment
and selection, performance appraisal, employee participation in decision making
compensation practice is positively and significantly correlated with the employee
organization commitment and employee job satisfaction. The highest correlation has been
observed to be 0.375 between compensation practices and job satisfaction.

Table 4.3.1 is the regression of employee organization commitment and the human
resources management variables. The results show that beta coefficient for training and
development is positive and significant for employee organization commitment in all the
equations. The beta coefficient for recruitment and selection is positive and significant
for the model 2 and 6. However, the beta coefficient for recruitment and selection is not
significant for the model 7 and 9. The beta coefficient for the performance appraisal is
positive and significant for all the equations. The beta coefficient for the employee
participation in decision making is positive and significant for all the equation. The beta
coefficient for compensation is positive and significant for the model 5. However beta

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coefficient for compensation is not significant for the model at 1 percent level of
significance and positive and significant for the model 8 and 9.

Table 4.3.2 is the regression table of employee job satisfaction and human resource
management variables. The results show that beta coefficient for training and
development is positive and significant for employee organization commitment in all the
equations. The beta coefficient for recruitment and selection is positive and significant
for all the equations. The beta coefficient for the performance appraisal is positive and
significant for the model 3, 8, 9. However, the beta coefficient for performance appraisal
is not significant for the model 7. The beta coefficient for the employee participation in
decision making is positive and significant for all the equation. Beta coefficient for
compensation is positive and significant for all the equation.

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 CHAPTER V

SUMMARY AND CONCLUSIONS

These chapters discuss the major findings of the studies, implications of the findings for
management studies, and recommendation for the future researcher.

5.1. Summary of the findings

Human Resource Management (HRM) is the function within an organization that focuses
on recruiting, managing, and providing direction for the people in the organization.
Effective HRM enables employees to achieve competitive advantage because of its
capability to convert resources into output. Since human resources are very important
potential source of sustained competitive advantage, managing them well will help
organizations in creating unique competencies that differentiate their products and
services from other competitors.

Human resource management variables such as training and development, recruitment

and selection, performance appraisal, employee involvement in decision making,
compensation practices enhances the outcomes and performance of the employee. If bank
is able to properly utilize these practices on human resources than it leads to increase
employee organization commitment, increase the job satisfaction of the employee.
Moreover, employee absenteeism, turnover, grievance, dissatisfaction and low
performance will reduce. Nowadays Nepalese commercial faces several problems of
human resources practices. Among them, employee recruitment and selection is one
because bank has to bear a lot of costs. So, bank prefers internal recruitment as a best
way to overcome this problem.

The main objectives of the study are to assess the HRM and their effect on employee
organization commitment and employee job satisfaction in Nepalese commercial banks.
The other specific objectives are to analysis the impact of training and development on
employee organization commitment and job satisfaction in Nepalese commercial banks,
to examine the effects of recruitment and selection on employee organization
commitment and job satisfaction in Nepalese commercial banks, to assess the impact of
performance appraisal on employee organization commitment and job satisfaction in

69
Nepalese commercial banks, to analyze the impact of employee participation on decision
making on employee organization commitment and job satisfaction in Nepalese
commercial banks, to assess the impact of compensation on employee organization
commitment and job satisfaction in Nepalese commercial banks.

The respondent of the study are the employee of the commercial bank. The observations
of 190 respondent views were analyzed in order to know the perception of employee
regarding HRM and employee organization commitment and job satisfaction in Nepalese
commercial banks. The non- parametric test such as Kendalls tau-b, step-wise regression
was conducted to order to analyze the relationship between HRM and employee
organization commitment and job satisfaction. The descriptive research design has been
conducted for fact finding of different variables. The study focuses on the primary data
analysis where questionnaire was distributed to employees 30 commercial A class
banks. Based on the population, 190 samples are undertaken for the studies.

5.2. Major Findings

Based on the analysis of the data the major findings, of the study are summarized as
under:

Training and Development

1. Out of 190 respondents, a majority (94.7 percent) of the respondents thinks that
training and development program conducted by the bank is beneficial for them.
The respondent (1.1 percent) percent believe that it is not beneficial. Similarly
(4.2 percent) of the respondents are not aware of the training and development
program.
2. Training and development activities are conducted periodically in their respective
bank is conveyed by majority of (63.2 percent) of the respondents. However,
(24.7 percent) of the respondents (24.7) percent said that bank doesnt conduct the
training and development program periodically and (12.1 percent) of the
respondents dont know whether the training program is conducted periodically.
3. The most of the respondents (43.2 percent) thinks that it help in increasing
productivity of the employee, (36.3 percent ) of the respondents believes that it
help to increase motivation, (15.3 percent) of the respondents think that it help to

70
 address weakness of the employee, (4.2 percent)of the respondents have different
view like it will expose to greater knowledge and skills, increase competency
where maximum of the respondents thinks that training helps to increase
productivity and only (1.1 percent) of the respondents believe that it helps to
reduce the supervision and.
4. The apprenticeship training method is preferred by (31.5 percent) of the
respondents, (29.5 percent) of the respondents percent like job instruction training
method, (22.6 percent) of the respondents is satisfy by experimental exercise
method of training and (16.4 percent) of the respondents is satisfy by the
internship and lecturer/ conference training method.
5. Bank conduct semi annually training program is conveyed by majority of (37.9
percent) of the respondents, (26.8 percent) of the respondents percent express
that bank conduct yearly training program, (24.7 percent) of the respondents said
it is conducted monthly, (.5percent) of the respondents said bank has conducted
never whereas (10 percent) of the respondents said that bank has not conducted
training program since two years.
6. The most (45 percent) of the respondents have opinion on due to high cost bank is
not conducting the training program, (25 percent ) of the respondents said it is due
to lack of top management support and (30 percent ) percent of the respondents
have their own view like training program is given to the new comer employee
but not for the old or already existed employee, others said that training program
is highly practice for the who are familiar with the use of the high technology like
computer but not for those who operate manually. Some of them have view that
there is a lot of gap in job rotation so chances of getting training program is
missed.
7. The weighted mean for training and development is 2.25 which indicate that on
average Nepalese commercial bank has well defined training and development
program.
Recruitment and Selection
8. Among the 190 respondents, majority (73.7 percent) of the respondents said that
they are satisfied with the recruitment and selection process of the bank. The

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 (18.9 percent) of the respondents are not satisfied with the recruitment and
selection process of the bank. The (7.4 percent) of the respondents dont know
whether they are satisfied or not by the recruitment and selection process of the
bank
9. The majority (74.2 percent) of the respondents agreed that they are selected on the
basis of their merits. However (13.2 percent) of the respondents doesnt agreed on
the view regarding they are not selected on the basis of their merits and (12.6
percent) of the respondents dont know whether they are selected on the basis of
merits or not.
10. Preference to newspaper is given by (64.7 percent) of the respondents as the
sources of the external recruitment and none of the respondent prefer rehires as a
external sources of recruitment.
11. Promotion from within is preferred by (81.1 percent) of the respondents and none
of the respondents are satisfied with the rehires as the internal sources of
recruitment.
12. Better qualification and higher experience option is more convincing criteria as
mentioned by majority of (64.7 percent) of the respondents, (14.7 percent) of the
respondents prefer better qualification as the convincing selection criterion, (11.6
percent ) of the respondents prefer higher experience as a better selection
criterion, (7.9 percent)of the respondents percent prefer soft skills as the better
selection criterion and (1.1 percent ) of the respondents prefer employee referral
as a better selection criteria.
13. The majority of the (44.7 percent) respondents said image of the bank attract
them at the time of selection, (22.6 percent) of the respondents said attractiveness
of the job attract them, (20.5 percent) of the respondents said good management
attract them, (11.1 percent) of the respondents said higher salary attract them and
only (1.1 percent) of the respondents specify other often like environment and
merger of the bank.
14. The weighted mean for recruitment and selection is 2.29 which reveal that on
average Nepalese commercial banks has well defined process of selection and
respondents.

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Performance Appraisal
15. Out of the 190 respondents majority of (75.3 percent) of the respondents have
their performance appraisal, (11.1 percent) of the employee dont have their
performance appraised and (13.7 percent) of the respondents dont know about
whether their performance is appraised or not.
16. The most of the (48.9 percent) respondents agreed that they that get feedback
from the management after their performance is appraised whereas (33.2 percent)
of the respondents said that they dont receive feedback and (17.9 percent) of the
respondents dont know about the feedback system.
17. The maximum of the (41.6 percent) respondents is satisfied from their appraisal
because they can learn their weakness from performance appraisal, (16.8 percent)
of the respondents said they receive feedback timely, (15.8 percent) of the
respondents said performance appraisal leads to increase their satisfaction level.
(11.1 percent) of the respondents said that they receive training after performance
appraised, (14.7 percent) of the respondents mention that performance appraisal
do not satisfy them because they do not get feedback about their performance.
18. Once in a year employee performance is appraised as mentioned by maximum of
(76.8 percent) of the respondents,(10.5 percent) of the respondents percent
express performance appraisal is done once in a month, (5.3 percent) of the
respondents explain that their performance is appraised once in a week, (4.7
percent) of the respondents said that their performance is not appraised yet, (2.6
percent) of the respondents gave their own view like there is not any transparent
evaluation system, they do not know whether management take evaluation or not.
19. The majority of the (31.6 percent) respondents have not realized their appraisal,
(25.8 percent) of the respondents find it fair evaluation system, (18.9 percent) of
the respondents find it somehow discrimination, (12.1 percent) of the respondents
find their appraisal as fully biased, (11.6 percent) of the respondents find it
transparent.
20. There is not proper feedback mechanism system of the appraisal is mentioned by
the (48.4 percent) of the respondents, (22. 1 percent) state that there is lack of
corrective action (20 percent) of the respondents think lack of skill of the rater,

73
 (8.4 percent) of the respondents find it biases, and (1.1 percent) of the respondents
percent specify the other reason behind it like all of the mention option, lack of
proper parameter of performance appraisal.
21. The weighted average for performance appraisal is 2.44which reveal that on an
average Nepalese commercial bank has proper appraisal system
Employee participation in decision making
22. Out of 190 respondents majority (61.6 percent) of the respondents participate in
the decision making process, (38.4 percent) of the respondents dont participate in
the decision making process.
23. The most of the (58.4 percent) respondents suggestions are appreciated in
decision making and (41.6 percent) of the respondents percent respondents
suggestion are not appreciated in decision making process.
24. Bank vary rarely encourage in decision making process is conveyed by majority
of (47.4 percent) of the respondents,(17.9 percent) of the respondents said that
bank always encourage in decision making process, (15.8 percent) of the
respondents said bank sometimes participate in decision making, (12.1 percent) of
the respondents said bank never encourage in decision making, (6.8 percent) dont
know the opinion regarding whether they participate in decision making or not.
25. Employee participation helps to build leadership quality is mentioned by majority
of (31.6 percent) of the respondents, (23.7 percent) of the respondents said that it
will help to resolve conflict, (20 percent) of the respondents said that it helps in
enhancing the empowerment of the employee, (19.5 percent) of the respondents
have other view regarding the employee participation employee participation
helps to know and learn from other idea. (5.3 percent) of the respondents said
participation helps in increasing the authority.
26. In suggestion / advisory group majority (33.7 percent) of the respondents are
involved), (30.5 percent) of the respondents participated as the problems solving
groups, (24.21 percent) of the respondents do not have participation in decision
making process.
27. The maximum of the (36.8 percent) respondents attend meeting once in a month,
(25.3 percent) of the respondents attend once in a week, (16.3 percent) of the

74
 respondents do not attend meeting, (13.2 percent) attend twice in a month, (8.4
percent) of the respondents percent mention others reason like as per need base,
everyday department meeting, occasionally, very rarely, sometime, semiannually,
quarterly employee attend the meeting.
28. The weighted mean for the employee participation in decision making 2.41 which
reveals that on an average Nepalese commercial bank participate its employee in
the decision making but not to the higher extent.
Compensation
29. Out of the 190 respondents, majority (82.1 percent) of the respondents does not
have an opportunity to earn commission whereas (17.9 percent) of the
respondents has an opportunity to earn commission.
30. The majority of (59.5 percent) of the respondents does not receive compensation
whereas (40.5 percent) of the respondents.
31. From the protection program like pension majority of (37.4 percent) of the
respondents are satisfied, (27.9 percent) of the respondents is satisfy by the credits
loan that the employee receive from their respective banks, (25.3 percent) of the
respondents is satisfy by the paid vacation, (9.5 percent) of the respondents is
satisfy by the childcare facilities program.
32. The most (62.1 percent) of the respondents said that higher salary has positive
outcomes on their performance, (25.8 percent) of the respondents said bonus
increase their outcomes, (7.4 percent) of the respondents said commission (4.2
percent) of the respondents said stock option impact their performance and (.5
percent) of the respondents specify the other option like allowance.
33. The maximum (43.7 percent) specify that compensation leads to increased
satisfaction, (25.8 percent) specify that compensation leads to resolve the
financial problem of the employee, (16.8 percent) of the respondents find that
compensation boost of the confidence of the employee. (13.7 percent) specify that
it will leads to enhance the identity of the employee.
34. The major reasons for effective incentives is due to the higher qualification is
mentioned by majority of the respondents (36.8 percent), (32.6 percent) of the
respondents said due to their effective performance they are receiving incentive,

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 (21.6 percent) of the respondents said due to their better soft skills and (8.9
percent) of the respondents said due to the high participation with the
management they have been receiving the incentives.
35. The weighted mean for compensation practices is 2.45 which reveal that on
average Nepalese commercial banks are providing the better incentives to its
employee.
Organization commitment
36. The most of the (93.7 percent) respondents are loyal towards their job however,
(3.2 percent) of the respondents are not loyal toward their job.
37. The majority of the (45.3 percent) respondents express that bank is taking care of
their personal needs however, (29.5percent) of the respondents express that bank
is not taking care of their personal needs.
38. When respondents are promoted they are more committed toward the bank as
mentioned by majority of (46.3 percent) of the respondents , ( 18.9 percent) think
that when they receive more benefits they feel more committed toward the bank,
(17.9 percent) think that when there is more power distance between management
and them they feel more committed, (16.3percent) of the respondents think when
they receive training according to their needs they feel more committed and (.5
percent) specify the other reason like when the respondents is more appreciated.
39. The most of the (41.6 percent) respondents think better job design influence them
toward their work commitment, (40.5 percent)of the respondents think that better
corporate culture influence them toward their work commitment, (11.1 percent) of
the respondents think that high empowerment influence them more,( 6.3 percent)
of the respondents think that high autonomy influence them toward their work
commitment, and (.5 percent) of the respondents specify the other reason like high
salary influence the respondents towards their work commitment.
40. Sometimes bank satisfy respondents needs is mentioned by majority of (53.2
percent) of the respondents, (19.5 percent) of the respondents think that bank
rarely satisfy their need, (13.7 percent) of the respondents said that bank
extremely satisfy their needs, (12.6 percent) think that bank do not have concern

76
 on their satisfaction, whereas (1.1 percent) of the respondents said bank never
have satisfy their personal need.
41. It is partially important to build the employee career in their bank is conveyed by
the most of the (34.2 percent) of the respondents , (31.6 percent) of the
respondents have mixed feelings about the important to build their career in their
bank, ( 18.4 percent) of the respondents feels very important to build their career
in their present working bank, ( 11.1 percent) of the respondents have no
importance to build the career in their bank whereas (4.7 percent) of the
respondents have no idea regarding whether to build career in their bank or not.
42. The weighted mean of the employee organization commitment is 2.47 which
indicates that on an average employee of the Nepalese commercial bank is
committed towards their bank but not to the higher extent.
Job satisfaction
43. The maximum (51.1 percent) of the respondents are satisfied with the corporate
culture of the bank, (32.1 percent) of the respondents are not satisfied with the
corporate culture of the bank and (16.8 percent) of the respondents doesnt know
whether they are satisfied with the corporate culture of the bank or not.
44. Freedom on work is enjoyed by majority of (58.9 percent) of the respondents,
(31.6 percent) of the respondents do not have freedom on their work and (9.5
percent) of the respondents dont know whether they have freedom in their work
or not.
45. The majority (44.7 percent) of the respondents said promotion, (29.5percent) of
the respondents answer the working condition, (23.7 percent) of the respondents
answers pay and (1.1 percent) of eth respondents said supervision and other
option like training program.
46. The most of the (37.9 percent) respondents said that lower earning than there,
(33.7 percent)of the respondents said higher earning than year, (14.2 percent) of
the respondents said equal earning than there, (5.8 percent) of the respondents
said very high earning than their and (8.4 percent) of the respondents said very
lower earning than theirs.

77
 47. Retirement benefits satisfy the employee most is conveyed by maximum of the
(48.9 percent) respondents, (45.8 percent) of the respondents said bonus satisfy
them most, (2.6 percent) of the respondents said medical insurance satisfy them
most, (2.1 percent) of the respondents said longer vacation leave satisfy them
most and only (.5 percent) of the respondents said dashain allowance satisfy them
most.
48. Management listen to employee suggestion is mentioned by (81.1 percent) of the
respondents, (26.3 percent) of the respondents said that management address their
problem, (23.7 percent) of eth respondents said that management provide
incentives to motivate their employee, (17.1 percent) of the respondents said that
management doesnt motivate them and only (1.1percent) of the respondents
specify other reason like sometimes management use to provide feedback to them.
49. The weighted mean for employee for job satisfaction is 2.40 reflects that on an
average employee of the commercial banks are satisfied with their job but not in
the higher extent
Kendalls Tau-b correlation findings
50. Training and development is positively and significantly related to organization
commitment and job satisfaction. Increase in the proper design of the training and
development leads to increase the employee organization commitment and
employee job satisfaction.
51. Recruitment and selection is positively and significantly correlated with employee
organization commitment and employee job satisfaction. Increase in well defined
process of selection leads to increase the employee organization commitment and
employee jobs satisfaction.
52. Performance appraisal is positively and significantly correlated with employee
organization commitment and employee job satisfaction. Increase in the fair and
transparent performance evaluation tends to increase the employee organization
commitment and employee job satisfaction of the Nepalese commercial bank.
53. Employee participation in decision making has positive and significant
relationship with employee organization commitment and employee job

78
 satisfaction. Increase in employee participation in decision making, leads to
increase the employee organization commitment and employee job satisfaction.
54. Compensation is positively and significantly correlated with the employee
organization commitment and employee job satisfaction. When bank provide
compensation to its employee in the form of credit loans, allowance it tends to
increase the employee job satisfaction of Nepalese commercial bank.

Regression findings
55. The beta coefficient for training and development is positive and significant for
employee organization commitment. The results indicate that higher the training
and development program higher would be the employee organization
commitment.
56. The beta coefficient for recruitment and selection is positive and significant for
the model 2 and 6. However, the beta coefficient for recruitment and selection is
not significant for the model 7 and 9. The result indicates that higher the bank
relates position requirement with task during employee selection, higher would be
the employee organization commitment of the Nepalese commercial bank.
57. The beta coefficient for the performance appraisal is positive and significant for
employee organization commitment. It reveals that increase in the fair evaluation
system leads to increase employee organization commitment. Beta coefficient for
the employee participation in decision making is positive and significant for all
the equation. It indicates that that when Nepalese commercial banks increases its
employee participation in decision making it will leads to increase the employee
organization commitment.
58. The beta coefficient for compensation is positive and significant for the model 5.
However beta coefficient for compensation practices is not significant for the
model at 1 percent level of significance and positive and significant for the model
8, 9 .It indicates that when banks increases its compensation in the form of the
incentives and facilities, it will leads to increase the employee organization
commitment.

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 59. The beta coefficient for training and development is positive and significant for
employee job satisfaction. The results indicate that higher the training and
development program higher would be the employee organization commitment.
60. The beta coefficient for recruitment and selection is positive and significant for
employee job satisfaction. The result indicates that higher the bank relates
position requirement with task during employee selection, higher would be the
employee organization commitment of the Nepalese commercial bank.
61. The beta coefficient for the performance appraisal is positive and significant for
the model 3, 8 and 9. However, beta coefficient for performance appraisal is not
significant for the model 7. It reveals that increase in the fair evaluation system
leads to increase employee organization commitment.
62. The beta coefficient for the employee participation in decision making is positive
and significant for employee job satisfaction. It indicates that that when Nepalese
commercial banks increases its employee participation in decision making it will
leads to increase the employee organization commitment.
63. The beta coefficient for compensation is positive and significant for employee job
satisfaction. It indicates that when a bank increases its compensation in the form
of the incentives and facilities, it will lead to increase the employee organization
commitment.

5.3. Conclusion
The main conclusion of this study is that all the variables of human resource
management have positive impact on the employee organization commitment and
employee job satisfaction. If the Nepalese commercial bank has good HRM in the
form of training and development, recruitment and selection, performance appraisal,
employee participation in decision making, compensation it will tends to increase
employee outcomes in the form of employee job satisfaction, and employee
organization commitment. The more the bank focuses on the variable of human
resources management it leads to motivate the employee toward their job and the
bank. The study also concludes that employee of the commercial banks are not much
satisfied with their, salary, corporate culture, compensation practices, performance
appraisal.

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5.4. Recommendation
On the basis of the findings of the study, the following recommendations are
made for further improvement on the human resources management of Nepalese
commercial bank and in order to get effective employee organization commitment
and job satisfaction.
1. Banks should think more retaining their employee in their bank because much of
the employees are dissatisfied with the salary, corporate culture, compensation
practices, performance appraisal of the bank. Despite of salary, bank can provide
financial rewards like commission, piece wage, profit sharing, medical and
pension facilities to its employee and non- financial rewards like employee of the
months, discounts coupons.
2. Banks must look forward to increase the pay and reward system of the employee.
Furthermore, the employees seem to be satisfied with the extrinsic reward. Thus
bank should focus more on framing the policies that address the extrinsic factors
well.
3. Employee of the commercial bank is looking for the training with specific
reference to new technology that helps in the career development of the
employee. Training need assessment surveys and post- improvement studies
should be conducted by the commercial banks.
4. There is positive and significant relationship of training and development with the
employee organization commitment and job satisfaction. In order to increase
employee work commitment and job satisfaction, Nepalese commercial bank to
conduct training program according to the need assessment of the employee and
conduct training program periodically. Moreover, bank should conduct the
apprentice and job instruction training method because majority of the employee
of the commercial bank are satisfied by these training method.
5. The result of regression shows that there is positive but insignificant relation of
recruitment and selection with the employee organization commitment. It reveals
that recruitment and selection process of the Nepalese commercial bank is playing
nominal role in the employee organization commitment. The recruitment and
selection process of banks should be well defined and should be on the principle

81
 of right people on the right job which leads to make employee more committed
towards their job. Moreover, Nepalese commercial bank should focus more on
newspaper as external source recruitment and promotion from within as an
internal source of recruitment in order to make employee more committed.
6. The result of regression shows that performance appraisal has positive but
insignificant impact on the employee job satisfaction. It reveals that performance
appraisal of the Nepalese commercial bank is playing nominal role in the
employee job satisfaction. Nepalese commercial bank should have fair and
transparent appraisal system in order to reduce the employee grievances. The
public banks should bring the practices of providing feedback of the appraisal.
7. The results of regression show that employee participation in decision making has
positive and significant relation with employee job satisfaction. Commercial bank
should focus more on involving operating level employee in the suggestion,
advisory group because it leads to build leadership quality in the employee,
reduce the power distance and help to retain the employee in the bank. Employee
involvement contributes towards improvement and the ongoing success of the
Nepalese commercial bank.
8. Compensation has positive but insignificant relationship with the employee
organization commitment. It reveals that compensation practices is playing
nominal role in the employee job satisfaction of banks. Nepalese commercial
bank should have defined compensation package toward their employee in order
to motivate, retain and to make the employee satisfied. Private commercial bank
should adopt compensation practices like providing credit loan facilities at
minimal rate, medical facilities, provident fund, insurance, pension to motivate
the employee.
9. Banks should provide the opportunity to participate assistant level employee in
decision making. Hardly, assistant level employee attends the meeting. The
suggestion from the lower level employee must be address because they are the
people who contribute more toward the success of bank and they actually know
how to tackle problem.

82
5.4. Scope for future research
Further researcher can take all class of financial institution in order to understand the
HRM. The comparison can be done between male and female employee of the
commercial bank in order to know the impact of HRM on outcomes of the different
gender of employee. The future researcher can increase the sample size in order to get
more valid result. More sophisticated tools can be used despite of Kendalls Tau-b
correlation and step wise regression to make findings more reliable and valid across
different industry sectors .Despite of the employee outcomes like organization
commitment and job satisfaction, future researcher can take other variable like turnover
intention, employee retention and employee productivity . Furthermore, the comparative
study can be done between the junior level, middle level and senior level employees of
the Nepalese commercial banks.

83
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 APPENDIX 1
Training and development

Questions Yes No Dont Know Total

F 180 2 8 190
Is the training program beneficial to you?
% 94.7 1.1 4.2 100
Does training and development program F 120 47 23 190
conducted periodically? % 63.2 24.7 12.1 100

Statements Choices F %
How is training and development Address weaknesses 29 15.3
program helping you? Increased productivity 82 43.2
Increase motivation 69 36.3
Reduce supervision 2 1.1
Others 8 4.2

Total 190 100

Which training method satisfies you the Internship Method 16 8.4
most? Lectures/conference method 16 8.4
Apprenticeship method 59 31.5
Job instruction method 56 29.5
Experimental exercise method 43 22.6

Total 190 100

How often your bank conducts training Monthly 47 24.7
and development program? Semi-annually 72 37.9
Yearly 51 26.8
Never 1 .5
Bank has not conducted training program 19 10
since two years
Total 190 100
9 45
High cost
If your option to question number 2.5 is
never or bank has not conducted training 5 25
Lack of top management support
program since two years, what do you
0 0
think the reason behind it? Less interest of employee
0 0
Lack of expertise
Others 6 30

Total 20 100

89
Recruitment and selection

Questions Yes No Dont know Total

Are you satisfied with the recruitment F 140 36 14 190
process by which you are selected?
% 73.7 18.9 7.4 100
F 141 25 24 190
Are you selected on the basis of your
merits (better education, experience)? % 74.2 13.2 12.6 100

Questions Choices F %
Source of external Newspaper 123 64.7
recruitment do you like Placement consultants 15 7.9
most? Education institutions placement 46 24.4
Audio visual( television) 6 3.2
Contracts 0
0

Total 190 190

Source of internal Promotion from within 154 81.1
recruitment do you like Transfer 3 1.6
most? Job rotation 12 6.3
Rehires 0 0
Internal Advertisement 21 11.1

Total 190 100

Which selection criterion is Better qualification 28 14.7
more convincing? Higher experience 22 11.6
Soft skills 15 7.9
Employee referral 2 1.1
Both(Better qualification and higher experience) 123 64.7

Total 190 100

Which aspect of bank Image of bank 85 44.7
attracted you more at the Higher salary 21 11.1
time of your recruitment?
39 20.5
Good management
Attractiveness of job 43 22.6
Others 2 1.1

Total 190 100

90
Performance Appraisal

Questions Yes No Don't Know Total

F 143 21 26 190
Have you ever had your performance appraised? % 75.3 11.1 13.7 100
Do you get feedback from the management after F 93 63 34 190
your performance is appraised? % 48.9 33.2 17.9 100

Questions Choices F %
Performance appraisal satisfies me I can learn my weakness 79 41.6
because? I receive feedback timely 32 16.8
I can receive training 21 11.1
Increase my motivation 30 15.8
Others 28 14.7

Total 190 100

How often your performance has been Once in a week 10 5.3
appraised? Once in a month 20 10.5
Once in a year 146 76.8
My performance is not appraised till now 9 4.7
Others 5 2.6

Total 190 100

How do you find your performance It is fully biased 23 12.1
appraisal? Somehow discrimination 36 18.9
Not realized 60 31.6
Transparent evaluation 22 11.6
Fair evaluation 49 25.8
Total 190 100
What do you think major problem Lack of skills of the rater 38 20
behind performance appraisal? Biases 16 8.4
Not proper feedback mechanism 92 48.4
Lack of corrective action 42 22.1
Others 2 1.1
Total 190 100

91
Employee participation in decision making

Questions Yes No Total

F 117 73 190
Do you participate in decision making process?
% 61.6 38.4 100
F 111 79 190
Are your suggestions appreciated in decision making?
% 58.4 41.6 100

Questions Choices F %
Does bank encourage you in participation of Always 34 17.9
decision making? Sometimes 90 47.4
Very rare 30 15.8
No never 23 12.1
Don't know 13 6.8

Total 190 100

How employee participation has been helping Help to resolve conflict 45 23.7
you? 20
Enhance empowerment 38
Build leadership quality 60 31.6
5.3
Increase authority 10
Others 37 19.5
Total 190 100
In which way you are participated in decision
Quality improvement group 22 11.6
making process? 30.5
Problems solving groups 58
Suggestion/ advisory group 64 33.7
24.21
No participation 46
Others 0 0
Total 190 100
How often do you attend the meetings? Once in a week 48 25.3
Once in a month 70 36.8
Twice a month 25 13.2
I do not attend meeting 31 16.3
Others 16 8.4
Total 190 100

92
Compensation

Questions Yes No Total

F 34 156 190
Does your bank provide an opportunity to earn commission?
% 17.9 82.1 100
Does your bank provide favorable compensation package? F 77 113 190
% 40.5 59.5 100

Questions Choices F %
Among the all, which type of indirect Credits loans 53 27.9
compensation satisfy you most? Childcare facilities 18 9.5
Paid vacation 48 25.3
Protection program (pension) 71 37.4
Others 0 0
Total 190 100
Which option of direct compensation Higher salary 118 62.1
do you think has greater positive 7.4
Commission 14
impact on your performance?
Bonus 49 25.8
Stock option 8 4.2

Others 1 .5
Total 180 100
From which aspect compensation has Increased satisfaction 83 43.7
been motivating you? Enhance my identity 26 13.7
Resolve my financial problem 49 25.8
Boost up my confidence 32 16.8
Others 0 0

Total 190 100

You receive incentive because of? Effective performance 62 32.6
Higher qualification 70 36.8
Better soft skills 41 21.6
High participation with management 17 8.9
Others 0 0
Total 190 100

93
Employee organization commitment

Questions Yes No Total

F 178 6 190
Are you loyal towards your job?
% 93.7 3.2 100
F 86 56 190
Do you think your bank is taking care of your personal needs?
% 45.3 29.5 100

Questions Choices F %
At which point of time you feel that When I am promoted 88 46.3
you are more committed towards When I receive more benefits 36 18.9
your bank? When there is less power distance between
management and me 34 17.9

When I receive training according to my need 31 16.3

Others 1 .5
Total 190 100
Which factors influence you more Better job design 79 41.6
towards your work commitment? Better corporate culture 77 40.5
High autonomy 12 6.3
High empowerment 21 11.1
Others 1 .5

Total 190 100

To what extent do you think bank is Extremely satisfy my need 26 13.7
able to satisfy your personal needs? Sometimes satisfy my need 101 53.2
Do not have concern on my satisfaction 37 19.5
Do not have concern on my satisfaction 24 12.6
No, never 2 1.1

Total 190 100

How important is it to you to build Very important to me 35 18.4
your career in this bank? Partially important 65 34.2
Mixed feelings about the importance 60 31.6
No importance 21 11.1
No idea 9 4.7

Total 190 100

94
Employee job satisfaction

Questions Yes No Don't know Total

F 97 61 32 190
Are you satisfied with the corporate culture of your bank? % 51.1 32.1 16.8
F 112 60 18 190
Do you have freedom in your work?
% 58.9 31.6 9.5 100

Questions Choices F %
In order to increase your job satisfaction, which Pay 45 23.7
factor do you think bank should consider more? 44.7
Promotion 85
Working conditions 56 29.5
Supervision 2 1.1
Others 2 1.1
Total 190 100
How much do you earn relative to employee of Very Lower earning than their 16 8.4
same position of other bank? Lower earning than their 72 37.9
Equal earning with their 64 33.7
High earning than their 27 14.2
Very high earning than their 11 5.8

Total 190 100

Which benefit satisfies you the most? Retirement benefits 93 48.9
Bonus 87 45.8
Longer vacation leave 4 2.1
Dashain allowance 1 .5
Medical insurance 5 2.6
Total 190 100
Which benefit satisfies you least? Retirement benefits 6 3.2
Bonus 1 .5
Longer vacation leave 106 55.8
Dashain allowance 40 21.1
Medical insurance 37 19.5
Total 190 100
In which way management motivate you? Listens my suggestions 59 81.1
Address my problem 50 26.3
Provide incentives 45 23.7
No, doesnt motivate me 34 17.9
Others 2 1.1
Total 190 100

95
 APPENDIX 2
Questionnaire

Human Resource Management and Employees organization commitment: A study of

Nepalese commercial banks

Dear respondent,
I am doing research Human Resources Management and employee organization commitment: A
case study on Nepalese commercial banks under the supervision of lecturer Mr. Yam Prasad
Chaulagain. The information provided by you will be used only for research purpose for MBA
and not for any commercial activity. I will be grateful if you provide me just few minutes to
answer my questions appearing in the enclosed questionnaire. Your ideas and information will be
of great importance for my research. I do assure you that your information will be kept
confidential.
Thank you for your cooperation.

Rubina Shrestha

MBA (Finance)

Uniglobe College, Kathmandu, Nepal

96
Section 1: Respondent Personal Detail

Please mention your gender. (Please make the tick ( ) mark)

Male
1.1 Female
Others

Please mention your age. (Please make the tick ( ) mark)

20-29
30-39
1.2 40-49
50-59
60 and above

Please mention your academic qualification. (Please make the tick ( ) mark)

Intermediate degree
Bachelors degree
Masters degree
1.3 M. Phil degree
PhD degree
Professional or others degree ( Please .
Specify)

Please mention the designation in which you belong to. (Please make the tick ( ) mark)

Manager
Assistant Manager
Officer
Management Trainee
1.4 Senior Assistant
Junior Assistant
Assistant
Trainee Assistant
Any other please specify .

97
Section 2: Training and Development

Please tick mark ( ) in one of the best option of the following questions.
2.1. Is the training program beneficial to you?
Yes No Dont know
2.2. Does training and development program conducted periodically?
Yes No Dont know

S.N Statement
2.3. How is training and development program helping you?
Address weaknesses Increase motivation
Increased productivity Reduce supervision
Any other, please specify
2.4. Which training method satisfies you the most?
Internship Method Lectures/ conference method
Apprenticeship method (Learning Job instruction training (banking
from those who are skilled in their jobs) training)
Experimental exercise method (Role play)
2.5. How often your bank conducts training and development program?
Monthly Semi-annually
Yearly Never
Bank has not conducted training program
since two years
2.5.1. If your option to question number 2.3 is never or bank has not conducted training program
since two years, what do you think the reason behind it?
High cost Lack of top management support
Less interest of employee Lack of expertise
Any other, please specify..................................

S.N Statement Strongly Agree Neutral Disagree Strongly

Agree Disagree
2.6. The design of the training is according to the
need assessment of the employee.
2.7. Training has improved my performance.
2.8. Training and development is used as a conflict
management tool.
2.9. Training and development has helped me to
foster my career development.
2.10. The contents of the training programs are
always relevant to the changing needs of my
job.

98
Section 3: Recruitment and Selection

Please tick mark ( ) in one of the best option of the following questions.

3.1. Are you selected on the basis of your merits (better education, experience)?
Yes No Dont know
3.2. Are you satisfied with the recruitment process by which you are selected?
Yes No Dont know

S.N. Statement
3.3. Which sources of external recruitment do you like the most?
Newspaper Placement Consultants
Education institution placement Audio visual (television)
Contracts
3.4. Which sources of internal recruitment do you like the most?
Promotion from within Transfer
Job Rotation Rehires
Internal advertisement
3.5. Which selection criterion is more convincing?
Better qualification Higher Experience
Soft skills Employee referral
Both (Better qualification and higher experience)
3.6. Which aspect of bank attracted you more at the time of your recruitment?
Image of bank Higher salary
Good management Attractiveness of job
Any other, please specify.

S.N Statement Strongly Agree Neutral Disagree Strongly

Agree Disagree
3.7. Recruitment and selection of the bank is
based on the principle of right people on the
right job at right time.
3.8. I am satisfied with the recruitment and
selection process taken by the job hiring
companies like (merojob, rolling jobs) on
behalf of the bank.
3.9. Bank clearly identifies and relates the
position requirements with the task.
3.10. I am selected on the basis of merits.
3.11. Recruitment and selection system followed
in my bank is well defined.

99
Section 4 : Performance Appraisal

Please tick mark ( ) in one of the best option of the following questions.

4.1. Have you ever had your performance appraised?

Yes No Dont know
4.2. Do you get feedback from the management after your performance is appraised?
Yes No Dont know

S.N Statement
4.3. Performance appraisal satisfies me because?
I can learn my weakness I receive feedback timely
I can receive training Increase my motivation
Any other, please specify..
4.4. How often your performance has been appraised?
Once in a week Once in a month
Once in a year My performance is not
Any other, please specify
4.5. How do you find your performance appraisal?

1. It is fully biased Somehow discrimination

2. Not realized Transparent evaluation

Fair evaluation
4.6. What do you think major problem behind performance appraisal?
Lack of skills of the rater Biases
Not proper feedback mechanism Lack of corrective action
Any other, please specify..

S.N Statement Strongly Agree Neutral Disagree Strongly

Agree Disagree
4.7. The evaluation reflects the quality of my
performance.
4.8. Performance appraisal has helped me to
identify my strengths and weaknesses.
4.9. Performance appraisal has helped me to
strengthen my job skills.
4.10. I receive necessary training if there is
performance deficiency.
4.11. I receive feedback and counseling when there
is performance deviation.

100
Section 5: Employee participation in decision making

Please tick mark ( ) in one of the best option of the following questions.

5.1. Do you participate in decision making process?

Yes No
5.2. Are your suggestions appreciated in decision making?
Yes No

S.N. Statement
5.3. Does bank encourage you in participation of decision making?
Always Sometimes
Very rare No never
Dont know
5.4. How employee participation has been helping you?
Help to resolve conflict . Enhance empowerment
Build leadership quality Increase authority
Any other, please specify
5.5. In which way you are participated in decision making process?
Quality improvement group Problems solving groups
. Suggestion/ advisory group No participation
Any other, please specify..
5.6. How often do you attend the meetings?
Once in a week Once in a month
Twice a month I do not attend meeting
Any other, please specify.

S.N Statement Strongly Agree Neutral Disagree Strongly

Agree Disagree
5.7. I can give suggestion in my way.
5.8. I am asked by my superiors to participate in
operation related decisions.
5.9. I have a lot of responsibilities in my job.
5.10. Participation has helped to resolve the
differences between the employees and the
management.
5.11. I have the authority to correct problems
whenever they occur.

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Section 6: Compensation

Please tick mark ( ) in one of the best option of the following questions.

6.1. Does your bank provide an opportunity to earn commission?

Yes No
6.2. Does your bank provide favorable compensation package?
Yes No

S.N. Statement
6.3. Among the all, which type of indirect compensation satisfy you most?
Credits loans Childcare facilities
Paid vacation Protection program (pension)
Any other, please specify .

6.4. Which option of direct compensation do you think has greater positive impact on your performance?
Higher salary Commission
Bonus Stock option
Any other, please specify

6.5. From which aspect compensation has been motivating you?

Increased satisfaction Enhance my identity
Resolve my financial problem Boost up my confidence
Any other, please specify

6.6. You receive incentive because of?

Effective performance Higher qualification
Better soft skills High participation with
Any other, please specify........... management

S.N Statement Strongly Agree Neutral Disagree Strongly

Agree Disagree
6.7. I am satisfied with the salary that I am
receiving.
6.8. I have an opportunity to earn bonuses or
compensation in my bank.
6.9. My pay encourages me to improve the
quality of my work life.
6.10. The policy of the bank regarding
compensation practices is fair enough to
motivate me.
6.11. Bank has favorable incentives practices to
encourage me to achieve the bank goals.

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Section 7: Organization commitment

Please tick mark ( ) in one of the best option of the following questions.

7.1. Are you loyal towards your job?

Yes No Dont know
7.2. Do you think your bank is taking care of your personal needs?
Yes No Dont know

S.N. Statement
7.3. At which point of time you feel that you are more committed towards your bank?
When I am promoted When I receive more benefits
When there is less power distance When I receive training
between management and me. according to my need
Any other, please specify..
7.4. Which factors influence you more towards your work commitment?
Better job design Better corporate culture
High autonomy High empowerment
Any other, please specify.
7.5. To what extent do you think bank is able to satisfy your personal needs?
Extremely satisfy my need Sometimes satisfy my need
Rarely satisfy my need Do not have concern on
No, never my satisfaction
7.6. How important is it to you to build your career in this bank?
Very important to me Partially important
Mixed feelings about the importance No importance
No idea

S.N Statement Strongly Agree Neutral Disagree Strongly

Agree Disagree
7.7. I am allowed to handle problem myself.
7.8. I have decided to make this profession as my
own career.
7.9. I have strong emotional attachment with the
bank.
7.10. I am allowed to be creative when I deal with
problems at work.
7.11. I would accept almost any type of job
assignment in order to keep working for this
organization.

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Section 8: Job Satisfaction

Please tick mark ( ) in one of the best option of the following questions.

8.1. Are you satisfied with the corporate culture of your bank?
Yes No Dont know
8.2. Do you have freedom in your work?
Yes No Dont know

S.N. Statement
8.3. In order to increase your job satisfaction, which factor do you think bank should consider more?
Pay Promotions
Working conditions Supervision
Any other please specify..........................
8.4. How much do you earn relative to employee of same position of other bank?
Very lower earning than their Lower earning than their
Equal earning with their High earning than their
Very high earning than their
8.5. Which benefit satisfies you the most?
Retirement benefits Bonus
Longer vacation leave Dashain allowance
Medical insurane

8.6. In which way management motivate you?

Listens my suggestions Address my problem
Provide incentives No, doesnt motivate me
Any other please specify..

S.N Statement Strongly Agree Neutral Disagree Strongly

Agree
Disagree
8.7. I am comfortable with the corporate culture
of the bank.
8.8. Quality of work life has been improved
because of my present job.
8.9. There is less power distance between me and
my seniors which increases participation on
decision making.
8.10. I feel encourage to come up with new ideas
of doing things.
8.11. I have autonomy in my work which
motivates me to perform better.
Thank you very much for completing the questionnaire, your participation is highly appreciated

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