report

1. EMPLOYEE ENGAGEMENT AND COMMITMENT IN
NEPALESE DEVELOPMENT BANKS OF NEPAL
(WITH REFERENCE TO MAHALAXMI BIKAS BANK AND
KAMANA SEWA BIKAS BANK)
Saru Adhikari
Fall 2018
P.U.REGD.No:034-2-3-00000-2018

2. Outline
• INTRODUCTION
• LITERATURE REVIEW
• RESEARCH METHODOLOGY
• OBSERVATIONS
• MAJOR FINDINGS
• CONCLUSION

3. Introduction
•Although no widely accepted definition of employee engagement is currently in use, it has been recently defined in the
HRD literature as "an individual employee's cognitive, emotional, and behavioral state directed toward desired
organizational outcomes" (Shuck, M. B. , 2010).
•Employee engagement is a positive attitude held by the employee towards the organization and its value.
•As Kahn (1990), an engaged individual is one who approaches the task associated with a job with a sense of self-
investment, energy, and passion, which should translate into higher levels of in-role and extra-role performance.
•Achieving employee engagement is directly linked to productivity, profitability, employee retention, safety, and customer
satisfaction (Whittington and Galpin, 2010).In context of Nepal, there are few studies on employee engagement and
commitment of commercial bank.
•Regression analyses showed that transformational leadership is a strong predictor of employee's commitment to change
and improved organizational performance.
•Most of the surveyed employees agreed that management gives recognition for job performance and they are satisfied
with the freedom in work; every employee has opportunity to get promotion in bank, and they are willing output in great
deal of effort beyond expected in order to help the organization to be successful.

4. Statement of Problem
•Thus, according to Vance (2006) it is not surprising that organizations of all sizes and types have invested
substantially in policies and practices that foster engagement and commitment in their workforces.
•The result reveal that sense of participation mediates between employee job involvement & job satisfaction of private
sector bank employees and employee job involvement, sense of participation and job satisfaction are positively
correlated.
•Most of the surveyed employees agreed that management gives recognition for job performance and they are
satisfied with the freedom in work; every employee has opportunity to get promotion in bank ,and they are willing to put
in a great deal of effort beyond expected in order to help the organization to be successful.
•Therefore, there is lack of employee engagement and commitment to wards their job in banking sector , which will
decrease the productivity, efficiency and increase the turnover ratio.
•So, there is a need to examine employee engagement and commitment using more efficient data and testing
hypothesis concerning employee engagement and commitment determinants and its impact in firm performance the
context of Nepal.
•It is widely believed that employee's participation affect employee's job satisfaction and employee's productivity and
they all can create competitive advantage for the organization.

5. What are the factors that affect Employee Engagement and commitment?
How is Employee Engagement and Commitment measured at development bank of Nepal?
What are the factors that plays important role in determining the employee engagement and commitment in
Nepalese Development banks?
Research Questions

6. • This study will add value to the existing body of knowledge that exists in the field of employee
engagement and commitment.
• Results of this study will be useful as important empirical reference material for academicians and
researchers who will be in interest of learning about employee's engagement and commitment.
• The study evaluates the retention of different employees and commitment variables such as team
work , reward ,job, opportunities and communication with the performance of the Nepalese
development bank.
• Study also helps to identify the motivational level of employees towards an organization.
• They can identify the committed and non-committed employees of bank and also arrange motivation
strategies according to their commitment level
Significance of Study

7. Overall Objective
The general objective of the research is to analyze the engagement and commitment level of the employee working
in the development banks of Nepal.
Specific Objectives
To analyze the factors that affect the behavior of the employee working in the development banks of Nepal.
To review and analyze the commitment level of the employee working in the development banks of Nepal.
Research Objectives

8. • Despite of the continuous efforts made for arriving at meaningful conclusion from the study, the
following major limitations have been out lined.
• The study has excluded the firms like non-financial companies, and even in the financial sector this
study has not covered development banks, finance companies, and insurance
companies.
• This study assumes a level of homogeneity across banks, which may not be true, since banks in the
study are of different sizes.
• The level of employee engagement and commitment may differ according to the size of the banks.
• Though the study is confined to Kathmandu Valley only, it does not cover the overall scenario of
Nepal.
Limitations

9. The study was anchored on social exchange theory and Hertzberg two factor theory. The theories
explain employee, job, teamwork, opportunities, communication, reward, attitudes, and perceptions. The
aim of the study was to bring out a clear notion of employee engagement and organizational
commitment.
Literature Review

10. Conceptual Frameworks
 E m p l o y e e E n g a g e m e n t
a n d C o m m i t m e n t

11. Research Methodology
Research Design
• Descriptive and Analytical nature
Descriptive research design describes the way of overcoming the facts, problems and analytical research
design presents the facts, figures and problems and investigates into reasons and recommends solutions for
further improvement.
• The self-developed structured open end questionnaire was used for the collection of data.
• Also secondary data such as past articles were collected, reviewed and analyzed which includes
various reports to fulfill the objective of study.

12. Research Methodology
Sample Size
• Convenience sampling is used for the study.
• Total sample are classified on the basis of different characteristics of the respondents.
• The respondents were requested to fill the structured self administered questionnaires randomly. All
together 200 questionnaires were received from the employee of the Nepalese development banks
located inside Kathmandu valley.

13. Research Methodology
Data Analysis
The data were analyzed with the help of SPSS 20.0 software version.
 The responses are analyzed using a various statistical tools as follows:
• Frequency
• Percentage

14. Observation and Findings
Respondents profile by gender
• Among 200 respondents, the percentage of male respondents was 55(%) and female respondents was
45(%).
• The table above shows that there are more number of male workers in Nepalese development banks
than female workers.
Variable Frequency Percentage
Male 110 55
Female 90 45
Total 200 100

15. Observation and Findings
• There are more number of
graduates (44.5%) and post
graduates (42.5%) working in the
development banks than that of
workers with other educational
qualifications.
• 56% of the workers in the
Development bank hold the
position of Junior Officers followed
by 22% Senior Officers and 21.5%
Officers.
Respondents profile by qualification and position
Variable Frequency Percentage
Junior Officer 112 56
Officer 43 21.5
Senior Officer 44 22
Others 1 0.5
Variable Frequency Percentage
Intermediate 11 5.5
Graduate 89 44.5
Post Graduate 85 42.5
Others 15 7.5

16. Observation and Findings
Summary of reliability analysis
Independent Teamwork Variable No. of item 5 Cronbach’s Alpha 0.786
Job 5 0.867
Reward 5 0.792
Opportunities 5 0.769
Communication 5 0.871
The Cronbach's alpha coefficient technique was used to check the reliability and validity of the data for further
analysis. Cronsbach alpha coefficient value more than 0.6, is considered as the reliable and validate for the further
analysis by researchers at Queen's University, Belfast.
All the variables of employee engagement and commitment achieve higher than 0.6 Cronbach’s alpha. Thus, all the
variables are ready for analysis procedure. Among the five variables communication considered the highest alpha.

17. Observation and Findings
Summary of descriptive analysis
S No Variables Mean Std. Deviation
1 Teamwork 4.382 0.52138
2 Job 4.001 0.68097
3 Reward 4.367 0.53978
4 Opportunity 4.086 0.53969
5 Communication 4.007 0.67619
6 Employee engagement and commitment 3.999 0.68303
The actual responses ranges from 1 to 5 scales
(1) Strongly Disagree,
(2) Disagree,
(3) Neutral,
(4) Agree,
(5) Strongly Agree.

18. Observation and Findings
Inferential Analysis
• Correlation Analysis:
E_Engagement_Com Teamwork Job Reward Opportunity Communication
E_Engagement_Com 1
Teamwork .428** 1
Job .994** .425** 1
Reward .428** .986** 0.428** 1
Opportunity .494** .275** 0.494** .278** 1
Communication .996** .425** 0.998** .426** .489** 1
** Correlation is significant at the 0.01 level (2- tailed).
Correlation analysis of dependent and independent variables show the correlation 0.428 for the independent variable
of teamwork which shows positive relationship between teamwork and employee engagement and commitment. The
value of correlation coefficient falls in the range of 0.91 to 1.00 for an independent variable.

19. Findings
• This is followed by the organization encouraging the sharing of information, knowledge and resources; and
having had opportunities to learn and grow in the past year, influencing employee engagement to a great extent.
• Based on the conceptual framework and four hypothesis was made to taking into account which helps to identify
the dimensions of teamwork, job, reward, opportunity, communication & dependent variable employee
engagement and commitment.
• The respondents also stated that involvement in strategy formulation and early communication of the bank's
strategic plan, efforts within the bank to create more cohesiveness within the various departments, level of
openness at senior management and more engagement and follow through on one's career plans by the
organization as factors that greatly influence employee engagement.
• Model summary indicates the standard error of the estimate 0.5598 which shows the variability of the observed
value of the employee engagement and commitment from regression line 0.5598.
• It can be interpreted that testing for the significance of the dimensions of personality factors reveals that one
factor namely conscientiousness significantly contributed in explaining the variation in the employee engagement
(p<0.05).

20. Conclusion
• The major conclusion of the study is that teamwork, job, reward, opportunity and communication plays very
important role in determining employee engagement and commitment.
• The study concludes that job has positive impact on employee performance of development banks of Nepal.
• Similarly, the correlation coefficient of an independent variable reward has positive relationship with
employee engagement and commitment as per the value of correlation coefficient.
• If monetary or non- monetary factor are provided to an employee than it will increase the commitment
level of an employee to perform the task.
• The study also concludes that among the variables job and communication has more impact on financial
performance of Nepalese Development banks.

21. THANK YOU!