Real World Implementation of Motivational Theories in

Banking Sector of Pakistan

Prepared for
Mr. Faisal Azeem Malik
Lecturer, CIIT Wah Campus

Prepared by
Shaffaq Rashid Khan
Sadaf Shaheen
Beenish Ali
Aasia Rafique

January 05, 2006

 C E R T I F I C A T E

This is to certify that MBA thesis titled “Real World

Implementation of Motivational Theories in Banking Sector
of Pakistan”, prepared by Enrollment # fa04-mba-064, fa04-
mba-018, fa04-mba-057 and fa04-mba-001, and has been
approved for submission.

Mr. Malik Faisal Azeem

Project Supervisor
 Letter of Transmittal

To: Mr. Faisal Azeem Malik, Lecturer

COMSATS Institute of Information Technology,
Wah Cantt.

From: Shaffaq Rashid Khan, on behalf of the grooup

Date: January05, 2006.

Subject: Real world implementation of motivational

Theories in Banking Sector of Pakistan

Respected Sir,

Here is the report you assigned on November 01, 2005 on the issue
of Real world implications of motivational theories in banking
sector of Pakistan. Motivation is the key factor for the ultimate
achievement of organizational goals. A motivated employee is more
productive than a merely satisfied employee. That is why over the
past few years’ importance of Human Resources Management has
increased a lot. It’s mainly the duty of a human resource manager
to keep an organization’s employees motivated.

As a group we found this research activity interesting,

challenging and most of all, hopefully, rewarding in studying and
solving the problem of motivational related areas.

We are thankful to Mr. Malik Faisal Azeem for their help and
making this task easy for us.

Thanks for giving us an opportunity to work on this research

area. It’s been a real education. We have successfully completed
the job given to us and is submitted for your kind consideration.
Executive Summery
This research topic evolves around the very critical issue. This
issue is related to human resources management. Our basic purpose
for conducting this study is to see that to what extent
motivational theories do have their practical implication? The
area which we have selected is Banking Sector of Pakistan. The
reason for selecting this issue for research purpose is the one
and only very important factor –Motivation. “Motivation is the
inner state that causes an individual to behave in a way that
ensures the accomplishment of some goals”. For this reason it is
necessary to obtain an understanding of the theory behind
motivation so that when we come to implement motivation type
activities, we can tailor them to suit the requirements of a
given situation.

Many students and managers are put off by the word “theory.”
They want to learn real world techniques to help them become
better managers. They believe that textbooks do not generally
represent the real world. We often hear comments like, “that's
fine in theory, but it doesn't work in the real world.” To some
extent, this is true. The formal theories found in textbooks
often do not represent every situation found in actual
organizations. On the other hand, every decision that we, as
managers, make is based on the theory (or mental model) of how
and why people behave in organizations.

Human Resource Managers have to create an environment in which

their employees are likely to be motivated sufficiently to learn
and then to repeat the learned processes or activities. The sole
purpose of learning about motivation is that they can get their
people to act according to what they want done in the department
and/or company.
Different motivational theories have been presented in different
times. These theories are widely used by managers in one way or
other. Now what we have to do is to see that to what extent these
theories are implemented in our sector and in what state?
 Table of Contents

1. Dedication 05
2. Executive Summary 07
3. Research Proposal 11
3.1. Executive Summary 12
3.2. Statement of the problem 12
3.3. Limitations 12
3.4. Review of Literature 13
3.5. Research Objectives 13
3.6. Methodology 14
3.7. Hypothesis 14
3.8. Research design 15
 The Surveys 15
 Interviews 15
3.9. Nature and forms of result 15
3.10. Qualification of researchers 15
3.11. Schedule 16
4. Research Design 17
4.1. Diagram 17
4.2. Explanation 17
5. Data Collection Methods 19
5.1. Primary & Secondary Data collection 19
5.2. Sampling 20
 Technique 21
 Size 21
6. Research Process 22
6.1. Broad problem Area 23
6.2. Preliminary Data Collection 24
6.3. Theoretical Framework 26
6.4. Hypothesis Development 29
7. Operational Definition
7.1. 5 dimensions, 3 elements of dimensions 30
7.2. Questionnaire for both interviewer and 33
8. Comparisons / Results 35
8.1. Comparison Sheet 35
8.2. Result 35
 Explanation 37
 Tables 37
 Graphs 37
9. Conclusion 38
10. Suggestions 40
11. References & Bibliography 41
12. Appendix 43
1. INTRODUCTION
1.1Statement of the Problem

“How our (managers) problem solving and decision-making processes

are based on our personal mental models (also called theories-in-
use)? What is the real world implication of motivational theories
as it is often said that that's fine in theory, but it doesn't
work in the real world”.

Limitations

“How our (managers) problem solving and decision-making processes

are based on our personal mental models (also called theories-in-
use)? What is the real world implication of motivational theories
as it is often said that that's fine in theory, but it doesn't
work in the real world”.

But this is a huge area! We need to determine some appropriate

boundaries in order to make the project manageable. So for this
research process we would only focus on banking sector of
Pakistan i.e. what is the real world implication of these
theories on this sector. Theories which we would cover are:

• Maslow Need Hierarchy Theory

• Two-Factor Theory
• Cognitive Evaluation Theory

• Goal Specificity Theory

• Expectancy Theory
1.3 Research Objectives
One of the most important concerns of a manager is to motivate
people to make their optimum contribution to the achievement of
organizational goals. It, therefore, becomes important for him to
understand what motivates people to behave, as he wants them to
do. Since the needs of the employees and the organization are not
always the same, the manager can better integrate these two sets
of needs by gaining an insight into the needs of his employees
and then channelise them in the direction of organizational
needs. This research study can be beneficial in so many areas.
Let us have a look on some of its key objectives:

• To develop a better understanding of banking sector

particularly from motivational standpoint
• In the extensive literature about the motivational level of
employees in the banking sector of Pakistan, little has
been written about the relation ship between managers &
employees and what are the ways through which managers can
motivate their employees.
• To study the relationship between real world motivational
practices and the proposed motivational theories
• To prove that these theories-in-use drive managerial
decision-making and problem solving and they are the basis
of the development of our style of leadership
• The present study will enhance the limited research about
employees’ perception of manager and what sort of manager
employee relation-ship should be build to enhance
employee’s organizational commitment and job satisfaction
to motivate them.
 • It would seem to be an opportune time to undertake such a
study in the light of present banking climate where there
is demonstrated need for satisfaction and commitment of
employees.
• The approach used in this study may encourage further
research and provide use full guideline for the promotion
of employee’s job satisfaction and commitment hence
improving their motivational level.
• It is hoped that this study will contribute to the ongoing
research about the real world implementation of
motivational theories in banking sector of Pakistan.

1.4 Qualification of researchers

The following members are currently taking responsibility for

sections of the project:
• Shaffaq Rashid

• Sadaf Shaheen
• Beenish Ali

• Aasia Rafique
We are senior students of COMSATS Institute of information
technology (Wah Cantt), and we have a strong track record of
basic research process.
The main role in order to conduct this research is of our kind
teacher “Mr. Faisal Azeem Malik” who is the faculty member of
COMSATS Institute of Information and Technology (Management
Science Department).

1.5 Schedule
• Preparation of questionnaires November 2005
• Completion of questionnaires December 2005
 • Conducting of interviews with some of the bank managers,
December 2005
• Translation/interpretation of responses December 2005
• Drafting of reports January 2006

2. Literature Review
Importance of the review of the literature is in the fact that
it provides the background knowledge of the problem to be
studied. Research can be completed successfully by consulting
the good literature. For completing this research books as
well as the former research was consulted that helped a lot to
make this research activity successful.

With the introduction of new technology to increase

efficiency and improve quality, automation of some areas of
work has increased job insecurity and workload pressures,
and resulted in deskilling and loss of social status for
employees (de Keyser, Decortis and Crommen, 1988). On the
other hand however, there is little evidence of any
technological change in the tasks performed by mail
delivery employees, whose job remains very physical and
labour intensive, and who are required to work long hours
doing repetitive and solitary work in harsh working
conditions (American Postal Workers’ Union, 2001). Such
conditions – involving heavy, physical and monotonous tasks
– increase the risk of musculoskeletal problems, ill-health
and consequently sickness absence (Voss, Floderus and
Diderichsen, 2001), and can be predictors of workplace
violence (see figure 1 below).
Apart from a number of personal and organizational factors
associated with workplace violence, Barling (1996) suggests
that we must consider the interaction of the individual
with their environment, including relationships and
expectations. Effective communication therefore, would be a
key to ensuring that change initiatives are clearly
understood and that employee concerns are dealt with
adequately (Giga, Faragher and Cooper, 2002). Such steps
will ultimately increase the motivational level of
employees.
Various studies of workplace violence and stress have been
found. Of specific concern to employees is the lack of
control that they have over their work, with reports of
monotonous tasks and a general move towards deskilling of
jobs, leaving very little opportunity for personal
development.

The costs of stress both to individuals and organizations

are extensive (Lim and Teo, 1999; Chappell and Martino,
2000; Hoel, Sparks and Cooper, 2001).

Stress is particularly high among workers who experience

regular acts of violence, or threats of violence. In
particular, younger workers and workers on fixed-term
contracts report violence as a major cause of stress in the
workplace (Communication Workers’ Union, 2001).

Research within the postal sector has shown that

organizational outcomes of stress
Include:

• Low productivity,
• High absenteeism and
• High turnover

2.1 Motivational Theories

2.1.1 Contemporary Views of Work Motivation

The previous theories are well known but unfortunately, have

not held up well under close examination. However, all is not
lost. There are a number of contemporary theories that have
one thing in common each has a reasonable degree of valid
supporting documentation. Of course, this doesn’t mean that
the theories we are about to introduce are unquestionably
right. We call them “contemporary theories” not because they
necessarily were developed recently, but because they
represent the current state of the art in explaining employee
motivation.

2.1.2 ERG Theory

Clayton Alderfer of Yale University has reworked

Maslow’s need hierarchy to align it more closely with the
empirical research. His revised need hierarchy is labeled as
ERG theory

Alderfer argues that there are three groups of core needs

 Existence_ (group is concerned with providing our basic

material existence requirements.)

 Relatedness_ (the desire we have for maintaining

important interpersonal relationships.)

 Growth – (an intrinsic desire for personal development.)

Hence, the label is known as ERG theory...

Aside from substituting three needs for five, how does

Alderfer’s ERG theory differ from Maslow’s? In contrast to the
hierarchy of needs theory, the ERG theory demonstrates that:

(1) More than one need may be operative at the same time,
(2) If the gratification of a higher – level need is stifled,
the desire to satisfy a lower-level need increases.

Inability to satisfy a need for social interaction, for

instance, might increase the desire for more money or better
working conditions. So frustration can lead to a regression to
a lower need.

In summary, ERG theory argues, like Moslow’s theory,

 that satisfied lower-order needs lead to the desire to

satisfy higher-order needs; but

 Multiple needs can be operating as motivators at the

same time, and frustration in attempting to satisfy a higher-
level need can result in regression to a lower-level need.

The evidence demonstrating that people in other cultures rank

the need categories differently – for instance, natives of
Spain and Japan place social needs before their physiological
requirements – would be consistent with ERG theory. Several
studies have supported ERG theory, but there is also evidence
that it doesn’t work in some organization. Overall, however,
ERG theory represents a more valid version of the need
hierarchy.

2.1.3 McClelland Theory of Needs

David McClelland and others have proposed three major relevant

motives or needs in the workplace:

1. The need for achievement (nAch): The drive to excel, to

achieve in relation to a set of standards, to strive to
succeed
2. The need for power (nPow): The need to make other behave
in a way they would not have behaved otherwise.

3. The need for affiliation (nAff): The desire for friendly

and close interpersonal relationships.

From research into the need for achievement, McClelland found

that high achievers differentiate themselves from others by
their desire to do things better. High achievers perform
best when they perceive their probability of success as 50-50
chance of success

The need for power is the desire to have an impact, to be

influential, and to control others.

The need isolated by McClelland is affiliation. Individuals

with a high nAff strive for friendship, prefer cooperative
situations rather than competitive ones, and desire
relationships involving a high degree of mutual understanding.

2.1.4 Cognitive Evaluation Theory

In the late 1960s, one researcher proposed that the

introduction of extrinsic rewards, such as pay, for work
effort that had been previously intrinsically rewarding due to
the pleasure associated with the content of the work itself
would tend to decreases the overall level of motivation. This
proposal-which has come to be called the cognitive evaluation
theory-has been extensively researched, and a large number of
studies have been supportive. As we’ll show, the major
implications for this theory relate to the way in which people
are paid in organizations.
Historically, motivation theorists generally assumed that
Stimulation of one intrinsic motivator such as achievement,
responsibility, and competence would not affect the other.
That is, they were independent of extrinsic motivators. But
the cognitive evaluation theory suggests otherwise. It argues
that

 When extrinsic rewards are used by organizations as payoffs

for superior performance, the intrinsic rewards, which are
derived from individuals doing what they like, are reduced.
In other words, when extrinsic rewards are given to someone
for performing an interesting task, it causes intrinsic
interest in the task itself to decline.5

2.1.5 Goal-Setting Theory

This theory states that specific goals increase performance

and that difficult goal, when accepted; result in higher
performance than do easy goals. This proposition has been
labeled goal-setting theory. It’s not necessary to review the
evidence again, but the results are important, so let’s
summarize what we know about goals as motivators.

• Intention to work toward a goal is a major source of job

motivation. Studies on goals setting have demonstrated the
superiority of specific and challenging goals as motivating
forces.

• While we can’t say that having employees participate in

the goal-setting process is always desirable, participation
is probably preferable to assigning goals when you expect
resistance to accepting more difficult challenges. Difficult
goals will lead to higher performance only if they’re
accepted.6

• People will do better when they get feedback on how well

they are progressing toward their goals because feedback
helps to identify discrepancies between what they have done
and what they want to do; that is, feedback acts to guide
behaviour. Self-generated feedback-for which the employee is
able to monitor his or her own progress more powerful
motivator than externally generated feedback.

• Goal-setting theory presupposes that an individual is

committed to the goal; that is determined not to lower or
abandon the goal. This is most likely to occur when goals are
made public, when the individual has an internal locus of
control, and when the goals are self-set rather than
assigned.

• Self-efficacy refers to an individual’s belief that he

or she is capable of performing a task. The higher our self-
efficacy, the more confidence we will have in our ability to
succeed in a task.

2.1.6 Reinforcement Theory

In behaviour modification, four types of reinforcement are

available to help managers influence behaviour; positive
reinforcement, negative reinforcement, extinction, and
punishment.

• Positive Reinforcement: Aimed at increasing a desired

behaviour, Positive reinforcement involves providing a
pleasant, rewarding consequence to encourage that behaviour,
the rewarding consequence, such as praise, a raise, or time
off, is said to be a positive reinforcer if it leads to
repletion of the desired behaviour. Since individuals differ
in regard to what they find pleasant and rewarding, managers
need to monitor the effects of a particular reinforcer to
determine whether it is effective in encouraging the desired
behaviour.

• Negative Reinforcement: Like positive reinforcement,

negative reinforcement focus on increasing a desired
behaviour, but it operates in a different way. The desired
behaviour is reinforced in a negative way because the
individual must engage in the behaviour in order to get rid
of an unpleasant condition. For example, an engineer may work
hard to finish a project on time (desired behaviour) in order
to stop (Consequence) the chief engineer’s nagging or yelling
(noxious stimuli). Negative reinforcement may also make the
individual feel negatively toward the person providing the
reinforcement. It may also foster immature behaviour.

• Extinction involves withholding previously available

positive consequences associated with a behaviour in order to
decrease that behaviour. Suppose that the first few times an
employee engages in clowning behaviour. The employee’s
clowning behaviour would be gradually extinguished if the
manager proceeded to refrain from laughing in response to it.

• Punishment involved providing negative consequence in order

to decrease or discourage behaviour. Examples are criticizing
the unwanted behaviour wherever it occurs, suspending an
individual without pay, denying training opportunities, or
withholding resource such as new equipment. Punishment
differs from negative reinforcement as it aims to decrease or
 discourage an undesirable behaviour and it is usually applied
after the individual has engaged in undesirable behaviour.
Arguments against the use of punishment are that it can have
undesirable side effects (e.g. negative feelings toward the
punisher) and that it may eliminate the undesirable behaviour
only as long as the threat of punishment remains. Also, it
does not prove a model of correct behaviour. Punishment is
likely to be most effective if there are recognized company
polices that govern the situation; the punishment is given as
soon as possible after the undesirable behaviour; the
punishment is moderate, rater than were; and it is applied
consistently.

2.1.7 Expectancy Theory

The Vroom expectancy theory of motivation encompasses some of

these complexities like the needs-goal theory, the Vroom
expectancy theory is based on the premise that felt needs
cause human behaviour. However, the Vroom theory also
addresses the issue of motivation strength and this is
individual’s degree of desire to perform a behavior. As this
desire increases or decreases, motivation strength fluctuates
correspondingly.

2.1.8 Motivation and Perceptions

Vroom’s expectancy theory is shown in equation form in Figure.

According to this theory, motivation strength is determined by
the perceived value of the result of performing a behaviour
and the perceived probability that the behaviour performed
will cause the result to materialize. As both of these factors
increase, so does motivation strength, or the desire to
perform the behaviour. In general, people tend to perform the
behaviours that maximize their personal rewards over the long
term.

2.2 Banking Sector of Pakistan

The banking sector is experiencing drastic changes forcing

the players to redefine their strategies. State Bank of
Pakistan continues to update and amend its regulations and
instructions to enable the commercial banks to improve
their solvency and to enhance their capital strength and
competitive capabilities. The central bank has opened new
business opportunities by eliminating certain restrictions.
Now banks are allowed to implement their own credit
policies. They enjoy more freedom to tap many segments of
the market, which were previously unexplored.

The consumer banking activities has enhanced as many

players are coming up with branded products. The
competition in this area has intensified as larger banks
continue to play a significant role by improving the
quality of products and services they offer. New players
have joined them with innovative solutions and new services
benchmarks. Competition in this area is expected to get
fiercer. The winners will be those who could excel in
customer services, improve quality of products and continue
innovations.

Larger banks, having the advantage of greater reach, are

threatening the existence of smaller banks. Larger banks
have adopted a more aggressive but accommodating approach
by focusing on client needs, improving response time and
increasing use of technology. Many banks have started
exploring rural areas with special focus on advances to
agriculture sector and related activities.

Local banks in Pakistan can be categorised as:

 Nationalized Banks
 Commercial Banks
 Privatized Banks
 Specialized Private Scheduled Banks
 Provincial (Now Scheduled) Banks and
 Investment Banks.

Most of the banks, which are providing the online facility,

are as follows:

1. ABN Amro Bank

2. ABL
3. Askari Bank
4. Bank Of Punjab
5. City Bank
6. Emirates Bank
7. Habib Bank
8. Industrial Development Bank Of Pakistan
9. Muslim Commercial Bank
10. National Bank Of Pakistan
11. Prime Bank
12. State Bank Of Pakistan
13. Standard Chartered Bank
14. UBL

What this research paper is all about is the real world

implementation of motivational theories in banking sector
of Pakistan. Since while watching the motivational level of
any employee in any organization or in any industry, main
focus will be on the study of the behaviour of individuals
with regard to their motivational levels in organizations.
The basic purpose of studying the behaviour of individuals
in organizational are settings an attempt to explain and
predict patterns of behaviours of organizational members:
their direction and amount of effort, their levels of
performance, and their membership and tenure within these
organizations.

In short form manager who believes that employee who is

motivated ultimately his performance will increased by
increasing employee satisfaction, and manager might do
everything in his power to keep employees satisfied in an
effort to improve their level of performance. Here, his
actions will be based on a very simple mental model
comprised of two variables:
1. Dependent variable (employee performance)

2. Independent variable (employee satisfaction).

This mental model can be represented as:

Employee Performance Satisfaction

2.3 Banking Sector and Current HRM Practices

Over the past few years importance of Human Resources

Management has increased a lot. It’s mainly the duty of a
human resource manager to keep an organization’s employees
motivated. The focus of HRD activities during 2003-04 as
founded during this research in banking sector has been in
the implementation of modern management practices in the
areas of:

 Performance management,
 Career advancement,
 Training and development,
 Recruitment.

During the past year, HRD focused on consolidating the changes

already introduced, through creating awareness, responding to
user feedback on simplification of procedures and updating allied
policies and procedures to ensure effective implementation of the
new initiatives.

The HR focus in the area of automation during the year has

been on maximizing the return on investment through
utilizing the automated processes and strengthening the
linkages/integration between various automated modules. As
a result most of the decisions are being made on the basis
of this automated system, which has aided in promoting
transparency and efficiency in decision-making.

2.3.1 Recruitment
Starting this year most of the banks incorporated web-based
application processing and automated its whole recruitment
process through adopting the recruitment sub module of
Oracle HRMS the most obvious and prominent name in this
regard is State Bank of Pakistan.
Further more, to promote diversity within the banking
sector and encourage greater participation of educated
females in economic activity, a special recruitment
processes are often conducted through the various Bank’s
Officials Training Scheme.

2.3.2 Training and Development

Training has been an important aspect of the strategy

adopted by the banking sector to enhance the quality of
human resources and to keep employees more motivated.
Continued training and process of learning have played a
vital role towards successful accomplishment of the
mandated responsibilities in recent times.

By providing the employees with an opportunity for

acquisition and enhancement of skills, linking the learning
process with results and making learning an inherent part
of the Performance Management System (PMS), training has
been transformed into a requirement and not just an option.

In order to improve the effectiveness of training and

development activities and align them more closely with the
overall capacity building and various change initiatives at
most of the banks is that the Training Department has been
merged into the HRD as one of its divisions.

While our survey for secondary data we have found that most
of the banks have designed special kind of training tracks
for the development of their employees so they may remain
motivated and perform well. Special names in this regard are
1. Askari Bank
2. State Bank Of Pakistan
3. Alfalah Bank.

Training Tracks
The training policy has been designed to provide skill
development and enhancement opportunities through the
introduction of the concept of Training Tracks, in line
with career growth in the organization. These
multidimensional training tracks are designed to provide
the pre-requisite trainings to career progression in
different grades. In addition to the usual focus on central
banking skills, the scope of the training include
management and specialized skills development as an
integral part of the training policy.

Courses
Similarly according to data different courses are being
offered to employees over the period of time for their
career development. With the coordinated efforts of the
 Training Division,
 National Institute of Banking and Finance (NIBAF)
and the
 Departmental Training Coordinators (DTCs)
Employees are being trained and promoted to above scales.
This increase reflects the higher awareness amongst the
officers about the importance of these programs in their
career development. Moreover, greater availability of one-
week duration modules could have been another contributory
factor, which allowed the participants to go for training
without any severe setback to their work schedule.

Foreign Training Programs

To keep pace with the on-going changes in the field of

monetary management taking place throughout the world, due
importance was given to availing the maximum number of
fully-funded program at the IMF, most of the banks are now
promoting their employees for attending the relevant
foreign training Programs. These programs are mostly
offered in:

 Risk management,
 Banking supervision,
 Banking inspection,
 Financial programming and policies,
 Payment system,
 International rules of auditing,
 Inflation targeting,
 Foreign exchange management and many other areas of
special interest to banks.

2.3.3 Types of Training

Common Training Programme (CTP): An officer before being
assigned to a job is required to complete CTP at the Civil
Services Academy. The CTP suffers from inappropriate
length, irrelevant curriculum, lack of rigor in the subject
matter, and poor quality of the resource persons.

Specialised Training Programme (STP): In STP the main

emphasis is on the development of technical skills and
little attention is paid to areas like information
technology and management skills. Officers in the field
informed us that STP lacked practical orientation and was
of very limited use in their actual jobs. The curriculum,
training design, and faculty skills all contribute to the
poor quality of the training programme.

National Institute of Public Administration (NIPA): The

programme at NIPA is well organised and has a good learning
environment. The content however, is of little direct
relevance to the trainee’s job assignments. It has a
general administrative orientation and has no technical
component suitable for middle management. The programme is
deficient in the areas of leadership skills, human resource
management and negotiation skills.
Pakistan Administrative Staff College (PASC): The National
Management Course at PASC is an advanced management
programme aimed at enhancing management skills. The
quality, objective and duration of the course was assessed
as satisfactory and meeting the training needs of senior
officers of tax administration.

Other Training: Officers of tax administration receive

limited short-term training inside and outside Pakistan.
There is no systematic assessment to identify employees’
training and development needs, resulting in an absence of
a comprehensive training plan.

2.3.4 Employee Recognition Policy

A formal employee recognition policy and program are also
introduced in most of the banks. This policy provides the
required tools to reward and recognize employees who
demonstrate positive behaviour through their performance
towards achieving goals or enhancing the image of their
bank. The reward and recognition encompasses non-monetary
as well as monetary awards. It ranges from a simple pat-on-
the-back to giving substantial monetary awards, which can
be given to individual employees as well as to a group or a
team.
Employee Recognition Awards
Most of the banks conduct workshops to create awareness
about Employee Recognition Program for all employees of the
banks. Safeguards against the discretionary powers
exercised to recognize a few favourites or immediate
personal staff of the Heads of Departments have to be built
in. The need to align this reward and recognition policy
with the core values of the Bank has also been identified
to promote greater employee interest towards adoption of
Core Values.

2.3.5Promotion Policy
A merit-based and competency driven promotion policy, in
line with introduction of modern management concepts is
also introduced in banks. Under the new promotion policy a
merit list of employees is prepared, based on evaluation of
their performance in the last three years, improvement in
qualification, marks obtained in training and seniority.
Employees short-listed on the basis of this initial merit
list are evaluated by a promotion committee through
competency-based interviews for their suitability to
perform in higher jobs. All promotions in this fiscal year
took place under the new merit based promotion policy.

Employee Recognition Awards

Level 1- Individual Contribution Award

(Thank you note, No cash Award)
Level 2-Departmental Commitment Award
(Cash Award)
Level 3-Organizational Competence Award
(Cash Award)
Level 4- Excellence Award
(Cash Award)

2.3.6 Succession Planning

Implementation of interdepartmental rotation of officers is
also intensified to:
 Enhance development of broad based skills set.
 Improve employees’ career advancement opportunities.
 Provide flexibility for the organization to address
succession demands in an effective manner.

Officers who had completed 3 years of service in their

present grade or department will be rotated to other
departments. Managerial jobs are now internally posted and
options are sought. The applicants are then screened,
interviewed and short-listed for the jobs based on their
competencies and future aspirations.
3. Research Process
 1.
1.
Observation
Observation
Broad area of
Broad
researcharea of
research
interest
interest
identified
identified 4.
4.
Theoretic
alTheoretic 5.
3. Problem al 5. 6.
3. Problem Framewo
Definition
Definition rkFramewo Scienti 7. Data
Research rk fic 7. Data
Research
problem Generati Collection
problem Variables Generati
on Resear Collection
Analysis, and
delineated Variables on ch Analysis, and
delineated Clearly of Interpretation
Clearly
Identified of Design Interpretation
2. Hypothe
2. Identified
and Hypothe
Preliminary sis
Preliminary and
Labelled sis
Data Labelled
Data
Gathering
Gathering
Interviewing
Interviewing
Literature
Literature
survey
survey

8. Deduction
8. Deduction
Hypotheses
Hypotheses
substantiated?
substantiated?
Research question
Research question
answered?
answered?

9. Report
Writing

10. Report
Presentati
on

11.
Decision
Making

3.1 Broad Problem Area

The broad problem area refers to the entire situation
where one sees a possible need for research and problem
solving. There are some issues may be existing in
following situations like as follows:
 1. Problems currently existing in an organizational
setting that need to be solved
2. Areas that a manager believes need to be improved in
the organization
3. A conceptual or theoretical issue that need to be
tightened up for the basic researcher to understand
certain phenomena
4. Some research questions that a basic researcher
wants to answer empirically

3.1.1 Statement of broad Problem Area

“How our (managers) problem solving and decision-making

processes are based on our personal mental models (also
called theories-in-use)? What is the real world implication
of motivational theories as it is often said that that's
fine in theory, but it doesn't work in the real world”
This research will focus on 3rd and 4th points because its
main objective is to see the “Real world implication of
motivational theories in the banking sector of Pakistan”.
These two points will correctly and strongly present the
broad problem area for which this research activity is
conducted.

3.2 Preliminary Data Gathering

3.2.1 Literature Survey
Literature survey is the documentation of a comprehensive
review of the published and unpublished work from the
secondary source of data in the areas of specific interest
to the researcher.
A large pool of data was searched out from internet which
contributed a lot to this research activity by giving a
solid framework regarding motivation, motivational theories
and their importance.1

3.2.2 Questionnaire
A questionnaire was also distributed at initial level to
develop a better understanding of this topic. Copies
distributed of this general questionnaire were 75.2

3.3 Theoretical Framework

A theoretical framework is conceptual model of how one
theorizes or makes logical sense of the relationship among
the several factors that have been identified as important
to the problem. This theory flows logically from
documentation of previous research in the problem area.
Form the theoretical framework testable hypothesis can be
developed to examine whether the theory formulated is valid
or not. The hypothesized relationship can be tested through
appropriate statistical analysis. Thus the entire research
based on the basis of the theoretical framework.
There are four types of variables involved in the
theoretical framework they can be as follow:
1. Dependent variable

2. Independent Variable

3. Moderating Variable

4. Intervening Variable

1
Literature review has already been presented in section 2.
2
Questionnaire I is attached in appendix.
Dependent Variable

A variable of primary interest to the researcher is known

as “Dependent Variable”.

Independent Variable
An independent variable is one that influences the
dependent variable in either positive or negative way.

Achievement of
Individual organizational
Efforts Goals

IV DV

Moderating Variable
The moderating variable is one that has a strong contingent
effect on the independent- dependent variable relationship.
 Achievement of
Individual organizational
Efforts Goals

IV
DV

Organizatio
nal
Rewards

MV

Intervening variable
An intervening is one that surfaces between the time the
independent variables start operating to influence the
dependent variable and the time their impact is felt.
 Achievement of
Individual Job
organizational
Efforts Satisfaction
Goals

Independent Intervening Dependant

Variable Variable Variable

Organization
al
Rewards

Moderating Variable
Explanation
It is clear from above figure that achievement of
organizational goals is dependant on the efforts put by
individuals. It means that Individual efforts are
independent variable. But the factor, which will motivate
employees to put maximum of their efforts, is ultimate
organizational rewards, which they will be having after the
achievement of organizational goals so Organizational
Rewards are moderating variables. This may be the case. But
here we can introduce another variable, named as
intervening variable, that surfaces between the time the
independent variables start operating to influence the
dependent variable and the time their impact is felt.
That variable is job satisfaction, which individuals will
be having, and it will then positively affect their
performances to achieve organizational goals.

3.4 Hypothesis Development

Once we have identified the Important variables in a
situation and established the relationships among them
through logical reasoning in the theoretical framework we
are in a position to test whether the relationship that
have been theorized do in fact hold true. Formulating such
testable statement is called “Hypothesis Development”.

Hypothesis

Null Hypothesis

“Motivational Theories do have real world implication in

banking sector of Pakistan”.

Alternate Hypothesis
“Motivational Theories do not have real world implication
in banking sector of Pakistan”.
4. Research Design

Explanation

4.1 Purpose of the study

Hypothesis testing offers an enhanced understanding of the
relationship that exists among variables. It can also
establish cause and effect relationship.

In this research topic of “Real world implication of

motivational theories in banking sector of Pakistan”, there
are certain variables upon which the motivational level
depends.
4.2 Type of investigation
The study in which the researcher wants to delineate the
important variables associated with the problems is called
Correlational study.
In this research topic of Motivational theories in banking
sector, those factors or variables will be found out that
contribute to motivational level of employees. To study the
real world implication on motivational theories, we must be
aware of the related factors, which are, ultimately, related
with motivation. We are not interested in studying the
cause and effect relationship.

4.3 Extent of researcher interference

The level of interference of researcher, while conducting
the research on THIS area of interest, is minimal because
we are interested in knowing the relationship between
different variables. In order to know the relationship,
there is need to conduct a very few interviews and to
distribute some questionnaire to gather necessary data. So
the level of interference is minimal.

4.4 Study setting

As this research topic or area is based on correlation
investigation so this study setting is of non-contrived
nature. It means that main focus was to conduct research
activity in the natural environment where work proceeds
normally.
 4.5 Unit of analysis
As well as this research area is concerned, the basic unit
of analysis working at different level in different banks
of Pakistan. But to study the overall implication of this
research topic, these individuals will be converted into
focus groups. So, at initial level, basically, unit of
analysis was individuals but later on it was converted into
groups as per the requirement of this research topic.

4.6 Sampling
A sample of 75 questionnaires was distributed at initial
level to have a clear picture of employees’ motivation.
After finding this research activity worthwhile, further 50
questionnaires specifically related with this research
issue were distributed among employees working at different
level in different banks. These banks are located in Wah
Cantt and the twin cities of Islamabad and Rawalpindi. The
data for this study was collected through self-administered
questionnaires distributed by researchers. A series of
interview with some of the managers of these financial
institutions’ managers was also conducted.

Technique
In order to collect primary and secondary data, interview
and questionnaire technique was used in order to meet
research objective. Round about 75 at initial level and 50
questionnaires were distributed to support hypothesis of
this research study.
 4.7 Operational Definition
Looking at the behavioural dimensions, facets or
properties denoted by the concept does operational zing or
operationally defining a concept to render it measurable.
These are then translated into observable and measurable
elements so as to develop an index of measurement of the
concept.

From Individuals’ Perspective

Achievement Motivation

D1 D2 D3 D4
Driven by Seek Seek
Work feedback Impatience
moderate
with
challenges
Ineffectiven

E E

Opts to do a Does not like

challenging to work with
rather than a slow or
routine job inefficient
E E
Constantl Reluctant to E E
y Working take time off Asks for feed Is impatient
for anything back of how the for immediate
job has been feedback
done
 Operational Definition Of Motivational Factors For
Individuals:

Motivation

D1 D2 D3 D4
Job Working Opportunity
satisfaction To grow Rewards
conditions

E E

Ergonomics Pay
E
Promotion
Organization
al culture Achievement
E E etc.
Intrinsic Extrinsic E E
motivatio motivation Career Training
n development
Program
5. Data Collection methods

5.1 Primary & secondary data collection

5.1.1 Primary data

Primary data was gained through direct interviews and
questionnaire from respondents. The general contents of the
questionnaire were:

1. Respondent’s basic information

2. Variables regarding important factors which become
motivator for respondents
3. To identify the needs of the employees from their
respective organizations
4. To study the implication of motivational theories
5. To prove that these theories-in-use drive our
managerial decision-making and problem solving, and
they are the basis of the development of managers’
style of leadership

The Survey

Sampling was done by mean of questionnaires3 distributed

to employees working on different level in different
banks. Focus group was all employees ranging from lower
level to upper level.

3
Questionnaire II is attached in appendix.
Interviews

Subjects were selected at random from each area for more

detailed interviews, in order to gain a deeper
understanding that will assist in the interpretation of
the survey. Furthermore, bank officials and departments
were interviewed. The first interview was conducted of
Mr. Muhammad Arshad, Branch Manager, Bank Alfalah, Sadar
Branch. Mr. Zulfiqar Ali, Branch Manager of Union Bank
was also interviewed.

5.1.2 Secondary Data

Secondary data means the data, which is readily
available. In this research report, for initial level
data was collected through various secondary sources e.g.
articles, web sites and research papers.

5.2 Nature and forms of results

The result of the research will be in the form of the

interpretation of questionnaires and interviews in
relation with the theories in discussion so that one
could be able to have a clear view of what practices are
being implemented or how these theories are implemented
in banking sector of Pakistan.

5.3 Data Analysis

5.3.1 Maslow Hierarchy Theory

Responses which we have obtained through our survey

regarding this theory was that people working on different
level lie at different level of this hierarchy i.e. some of
them were on safety needs level and many of them were on
esteem level(major responses). And a very few people have
indicated that they are on self-actualization level.
Employees who were at lower end of the middle level
indicated that they lie on safety level. And the
individuals employed at upper end of the middle level
indicated that they lie on Social belongingness.

Figure 1

Pract
ical Implication

If we see the practical implication of Maslow Hierarchy

Theory on the banking sector then one thing is very much
clear that people at lower level of management lie on lower
physiological needs and vice versa. But the point of
discussion here is very interesting. When we compiled our
results then we came to know that, to some extent,
responses given by the employees working at same level but
employed in different banks were different. E.g. the
cashiers of two different banks presented interestingly
very different results- in one bank cashiers were on level
one while in other the cashiers were of the view that they
consider themselves, by being on this designation, at
social belongingness level.

5.3.2 Two Factor Theory

A small study was also conducted via questionnaires to

check the ratio of hygiene and motivational factors in
regard to there importance for employees. The purpose
behind this was to analyze the two-factor theory proposed
by Fredrick Herzberg. He was of the view that Intrinsic
factors are related with job satisfaction whereas
dissatisfaction is caused by Extrinsic factors. To study
this theory, we gave them some options, consisting some of
the intrinsic and extrinsic factors, and asked them to
indicate their level of agreement with each of these
factors from scale 1-5 in terms of those factors importance.

Analysis
PART-I
After collecting information regarding this theory, rather
than evaluating every respondent’s response separately,
responses were analyzed in the form of group. Final group
figures were multiplied with their respective numbers
assigned by respondents and at the end, when the intrinsic
and extrinsic factors were added up separately, then the
results obtained were like this.
 Motivational Factors=642
Hygiene Factors =539

Practical Implication
If we see the practical implication of this study, then it
is clear that there are certain factors which do affect an
individual performance and lead them towards satisfaction
or dissatisfaction. But, for employee, motivation factors
are much more important than hygiene factors (as presented
by Fredrick Herzberg).

PART-II

Herzberg has also presented a view that was totally

opposite to traditional view i.e. satisfaction leads to
dissatisfaction. Herzberg disagrees with this. Instead
this, he says that opposite of satisfaction is no
satisfaction and opposite of dissatisfaction is no
dissatisfaction.

Equation #1

No Satisfaction ________________ Satisfaction

Motivators

It says that if people are not satisfied; they search for

satisfaction, if motivation factors are there.

Equation#2
Dissatisfaction ________________No Dissatisfaction
Hygiene Factors

It says that hygiene factors lead employees towards

dissatisfaction. In this case, employees leave things as
they are. They do not search for satisfaction.

Practical Implication
Employees were also questioned that what they will do if
they are dissatisfied with their work or job or any other
working condition. The response receive was quiet
interesting. Majority of the respondents have given the
same answer i.e. either they will try to find out the best
solution to go through it or they will seek opportunities
to go through it.

This is totally different to Herzberg view that says that

in presence of hygiene factors, dissatisfaction lead
towards no dissatisfaction, so we can say on the basis of
our study that dissatisfaction leads towards satisfaction
that is a traditional view.

These responses can also be presented in the form of job

dissatisfaction matrix i.e.
According to this matrix if we see that where respondents
lie, then majority of them i.e. 38% lies at Voice. Because
these are people who try to find out solutions by actively
and constructively attempting to improve conditions. They
might be attempting and suggesting improvements, discussing
problems with supervisors and some form of union activity.
The other major portion of respondent i.e. 35% lies at
Loyalty as they will be seeking opportunities to go through
it. 15% of the respondents lie at Exit level as they will
leave the organization. Remaining 12% of the respondents
lie at Neglect level as they will do nothing to come out of
this situation.

Results
Part-I is particularly similar to that of the theory i.e.
motivation factors are more important for employees and
hygiene factors will affect their work.

Part-II results’ obtained are different from book,

according to our study.
Dissatisfaction-----------------------Satisfaction

Whereas Two factor theory says

Dissatisfaction------------------No Dissatisfaction

5.3.3 Cognitive Evaluation Theory

This theory tells that how employees are going to be

motivated. Motivational factors for every individual
differ. According to Cognitive Evaluation Theory, every
individual employee draws a line between factors which are
motivational for him or which are not. Except these
motivational factors, he considers all other motivational
factor negative.

Analysis
When questions, regarding this theory, were asked from
employees then responses received were like this;

Responsibility Pay Rewards

20% 2% 11%

Recognition
25%
Prom otion
Achievem ent
33%
9%

It’s been clear from above figure that maximum percentage

is of factor promotion which is extrinsic factors. But on
the other side, for some respondents’ responsibility and
achievement factors are very important intrinsic factors.
These are the factors that are attributed by individuals to
themselves.

To get a clear result about intrinsic and extrinsic factor,

we have merged the statistics obtained under two main heads.

Overall View
Intrinsic Factors
Extrinsic Factors

46%

54%

Figure 3(ii)

As it’s clear from above figure, that

 Maximum percentage is of Intrinsic factors.
 Maximum percentage of intrinsic factors represents
that for maximum number of employees’ intrinsic
factors are motivational factors rather than extrinsic
factors.

Practical Implication
From this study it’s been proved that motivated factors do
vary from individual to individual. There are certain
intrinsic and extrinsic factors that work differently for
different individuals. Cognitive theory says that when
individuals, who can be intrinsically motivated, are
extrinsically rewarded then intrinsic rewards, which are
derived from individual doing what they like, are reduced.
But what is found is that people, who are intrinsically
rewarded, receive some part of extrinsic rewards, and then
their desire to achieve intrinsic rewards will not reduce.
The fact is that if someone has a greater sense of
achievement, then he cannot be satisfied unless or until he
has accomplished it.

Results
The theory applies on our area of research, the banking
sector, in perspective of intrinsic and extrinsic rewards.
But according to our study, the point of difference is that
if an individual gets reward (extrinsic or intrinsic) other
than what he wants, it will not reduce his actual intrinsic
or extrinsic motivational factor.

5.3.4 Goal Setting Theory

This theory says that following factors, while setting

goals, affect the performance of any individual.
 Specificity of goals
 Feedback regarding performance
 Participation in goal setting
 Self efficacy

Analysis

When we have studied the behaviour of the people/employees

then we came to know that many of them consider
participation in goal setting most important and the others
specificity of goals and so. But, the most often obtained
result was that maximum number of employees were of the
view that all of these factors are very important for them
and will lead them towards better performance.

The point of importance is that the employees who were at

higher management level as compare to others consider
participation in goal setting most important. But majority
of people on the same level and lower level employees
consider all of those factors important. Besides this
finding, we have also found that maximum number of
employees were of the view that if goals are specifically
communicated to them, then it would lead them towards
better productivity. Let us have a look on the following
figure:

Specificity of Goals Yes

Somehow
No
10% 0%

90%

As its clear from the above figure that maximum number of

employees was of the opinion that they would be able to
perform in the more productive way if goals are
specifically communicated to them.

Results
This theory also applies on our area of research. In
nutshell, employees consider all factors of Goal-setting
Theory important. And if goals were specifically
communicated to them then it would lead them towards better
performance.

5.3.5 Expectancy Theory

Expectancy theory, proposed by Victor Vroom, says that if

an individual is not getting what he expects from
organization then it leads him towards demotivation. In
simple words, if an individual is not getting rewards
according to his expectations, then it affects his
productivity.

Individual Individual Organizational Personal

Effort Performance Rewards
Figure 5 Goals

Analysis and Practical Implementation

When employees were asked that if they are not getting

rewards then would it affect their performance, then we
came to know that most of the employees were of the view
that Yes! If they are not getting reward as per their
expectation, then it will affect their performance

Y es
Somehow
0% No
23%

77%

As it is clear from the above figure that 77% employees

agreed that if they are not getting rewards then it would
affect their performance. Remaining 23% were also somehow
and other agreed with this statement.

If we relate it with Figure5 then this is obvious that an

individual puts his maximum efforts to perform better. And
against it he expects rewards. These rewards are
motivational factors for individuals and ultimately if they
are satisfied then the similar goals become their personal
goals.

Results
Expectancy theory applies on our research area because
employees put their efforts to perform better, so that they
could get what they expect from their organization.

COMPARATIVE STATEMENTS:

Q #1 How long you have worked at this organization?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank
Bank
Less than 6 months -- -- -- -- --
6 months to 1 year -- -- -- 11.111% --
1 to 2 years 50% 83.333 75% 88.889 75% 55.55%
% %
3 to 5 years 50% 16.666% 25% -- 25% 33.33%
More than 5 years -- -- -- -- -- 11.11%

Q #2 overall how satisfied you are with your overall position?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank Bank
Dissatisfied -- -- -- -- --
Somewhat -- -- -- -- --
dissatisfied
Neutral 50% 50% 25% 22.222% 25%
Satisfied 25% 33.333% 50% 66.667% 25% 77.78%
Very satisfied 25% 16.666% 25% 11.111% 50% 22.22%

Q #3 Your organization clearly communicates its goals and strategies to

you?
 ABL Union Faysal PICIC Std. Alfalah
Bank Bank Ch.’d Bank
Bank
Strongly disagree -- -- -- -- --
Somewhat -- -- -- -- 75%
disagree
Neutral 25% 50% -- 33.333% 25%
Somewhat agree 50% 33.333% 75% 55.556% -- 44.44%
Strongly agree 25% 16.666% 25% 11.111% -- 55.56%

Q #4 If goals are specifically communicated to you, would it lead you

towards better productivity?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank
Bank
Yes 100% 100% 75% 100% 100% 66.67%
Somehow -- -- 25% -- -- 33.33%
No -- -- -- -- --

Q #5 What factors will affect your performance while you have to work on
your targeted goals?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank
Bank
Specific goals 100% -- -- -- -- 22.22%
Your participation in -- 66.666% -- -- -- 11.11%
goal setting on which
you have to work
Feedback regarding -- -- -- -- 25% 11.11%
your performance
Your belief in your -- -- -- -- 25% 11.11%
abilities
All of the above -- 33.333% 100% 100% 50% 44.44%

Q #6 How flexible this organization is with respect to your family

responsibilities or in case of any emergency?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank
Bank
Very inflexible -- 16.666% 50% -- --
Somewhat -- -- -- -- --
inflexible
Neutral 25% 16.666% 50% 11.111% 25%
Somewhat flexible 50% 50% -- 88.889% 25% 44.44%
Very flexible 25% 16.666% -- -- 50% 55.55%

Q #7 If you are dissatisfied with your work or working conditions due to any
related reason. What will you do?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank
Bank
Leave it as it is -- -- -- -- 25%
Wait for conditions to -- -- -- -- 25% 11.11%
improve
Seek opportunities to 25% 50% 50% 77.778% --
go through it
Try to find out -- 16.66% 50% 22.222% 50% 88.89%
solutions
Leave the organization 75% 33.33% -- -- --

Q #8 Do you think that your satisfaction or dissatisfaction can affect your

productivity?
 ABL Union Faysal PICIC Std. Alfalah
Bank Bank Ch.’d Bank Bank
Yes 100% 100% 100% 77.778% 100% 77.77%
Some -- -- -- 22.222% -- 33.33%
what
No -- -- -- -- --

Q #9 If you are not getting reward, would it affect your performance?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank Bank
Yes 100% 50% 100% 100% 75% 66.66%
Some -- 50% -- -- 25% 33.34%
what
No -- -- -- -- --

Q #10 What factors will affect your performance while working on any
particular task?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank
Bank
Pay -- -- -- -- 25%
Rewards -- 16.66% -- -- --
Recognition -- 16.66% -- -- 50%
Achievement -- -- -- -- -- 33.34%
Competence -- -- -- -- --
Promotion 50% 33.33% 100% 88.889% 25%
Responsibility 50% -- -- 11.111% -- 66.66%

Q #11 You feel comfortable while working?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank Bank
On individual 25% -- 25% -- -- 100%
basis
In Teams 75% 100% 75% 100% 100%

Q #12 Do you think that employee involvement in decision making,

regarding his/her particular area, is must to achieve the goals efficiently?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank Bank
Yes 100% 100% 75% 100% 75%
Some how -- -- 25% -- 25% 77.77%
No -- -- -- -- -- 11.11%

Q #13 Please indicate that where do you place yourself by being on this
job?

ABL Union Faysal PICIC Std. Alfalah

Bank Bank Ch.’d Bank
Bank
I’m comfortable -- -- 25% 22.22% 50% 11.11%
enough now
I feel safe enough -- 33.33% 25% 55.556% --
I’m part of a 50% 16.66% -- 22.222% 50%
group
I’m known 50% 33.33% 25% -- -- 77.77%
I’m me -- 16.66% 255 -- -- 11.11%
6. Limitations of the Study

This study is limited by number of factors.

• The sample population is limited in terms of size and

composition. The sample was drawn from Wah Cantt and
Islamabad and did not include branches from other
states.
• The data were collected at a single point in time
providing insight through a snap shot view but not an
ongoing picture.
• The study was limited to bank employees, managers and
bank experts only. Perception of the individuals or
group outside the banking sector in the wider
community were not investigated
7. Conclusion

The review of existing literature on motivation related

issues identifies the absence of universal techniques and
approaches in measuring motivation level within an
organization, in particular within banking industry
environment.

Corporate governance has become a topical issue at the

moment. The reason behind this concept gaining increasing
importance in the corporate world is that most of the
organizations, especially in third world context like ours,
are rife with mismanagement, lack of corporate ethics and
professionalism. The lack of corporate governance has
become the root cause for the failure of most of the
organizations and hence, it is high time that all the
organizations aspiring for success and survival practice
good corporate governance and accord top priority to this.

The value of the Human capital in such organizations is not

recognized at all. This is indeed a strategic flaw and
major bottleneck to implement the very notion of good
corporate governance. As an organization is made up mostly
of employees one cannot and should not undermine and
underestimate their power and importance.
One of the most important concerns of a manager should be
to motivate people to make their optimum contribution to
the achievement of organizational goals. It, therefore,
becomes important for him to understand what motivates
people to behave as they do. Since the needs of the
employees and the organization are not always the same, the
manager can better integrate these two sets of needs by
gaining an insight into the needs of his employees and then
channelise them in the direction of organizational needs.

Let’s go back to the late 1970s. An article "Mastering

Management in Creative Industries" was published in
Business Week, According to managers in the creative
industries, motivating their employees is a more difficult
task than in other types of industries. They argue that
when you are in an industry where artistic ability and not
an established formula for success reigns, then greater
attention must be given to motivate the artists to give
their ability and opinions.

As far as, the Real world implementation of Motivational

theories in banking sector of Pakistan is concerned then
its’ been proved that these theories do have real world
implementation. Though they are in reality not applied by
managers in their actual form but results have
significantly proved this fact that in one way or other,
all these theories contribute to the motivational level of
employees.
8. Suggestions

Motivation is must for employees so that they can perform

work in the more productive manner. Motivated person wants
to do work and performs tasks in the more productive way as
compare to satisfied worker. If one is motivated for an
organization, he/she will give benefit to the organization
with his/her full potential.

This research paper has covered in greater detail the

banking sector and the level of motivation of its
employees, plus it has also analyzed that why employees are
satisfied and why they are not?

To keep the employees motivated, some suggestions are

presented below:

 Maximum employee involvement in decision-making

 Motivate the employees as per their requirements;

see where they exist in Maslow Hierarchy. If you
will not do so, employees will not be able to
move ahead.

 Communicate goals because if goals are

communicated to employees, then they will be more
 motivated because they will be aware that on what
basis they will be evaluated.

 Clear, worthwhile, challenging goals. The need

for clarity is self-evident. While "worthwhile"
and "challenging" support each other, they aren’t
the same. Performers can find work worthwhile and
still be bored by it, or be challenged by work.
The more those goals embody all three of these
attributes, the greater the chance that the
performer will be motivated to accomplish them.

 Practical standards and useful feedback. Most

people are far more likely to work at meeting
goals when they are confident they know just what
they need to accomplish and how well they are
doing along the way.

 Design separate motivational job for each

individual

 Practice Ergonomics i.e.; analyze that how much a

person is at ease by performing a task

 Employees must be individually recognized.

 As per analysis, maximum number of employees was

somewhat dissatisfied with the opportunity for
their career advancement. So career development
programs must be there.
 Getting higher performance through pay alone is
expensive – and it often doesn’t work. But pay
does matter. Most performers have a good sense of

 The proper balance between the effort they expend

and the money they earn. They simply will not put
in more effort than they believe their pay
deserves. Money acts as a powerful motivator not
only because of its ability to satisfy
physiological need, but also because of its
ability to satisfy higher level needs such as
need for status, power, recognition, achievement,
etc. Money is often considered to be a measure of
success.

 Performance improves when it is recognized – as

long as the recognition fits in with the
employee’s perception of his performance.
Unfortunately, most formal "recognition"
programmes don’t fulfill this function well.
Reward Chart

 They must implement the following Reward chart

REWARDS

Intrinsic Extrinsic

Participate in
Decision-making Financial Non-Financial

Profit Sharing Preferred work

Greater job
assignments
freedom

Preferred office
More Responsibility
furnishing
Variable pay Plan

Impressive Titles
Interesting Job

Opportunity for
Career advancement Incentive Plan
Performance Dimensions

Ability

PERFORMANCE

Motivatio Opportuni
n ty

This figure shows that there is an inter-link between

Ability, Opportunity and Motivation and all these dimension
lead towards better Performance. There is a direct
relationship between Ability and Performance and for this
Motivation and Opportunity are must. The reason is if you
have Ability and Opportunity then it means that

Opportunity=Strength

It will ultimately increase your motivational level so

overall performance will increase. It represent the fact
that to design the motivational jobs for employees, such
tasks should be assigned to them which match with their
abilities and which ultimately lead them towards better
performance because of increased motivation.

 For designing the motivational jobs the following

model should be taken into consideration

The Job Characteristics Model

The following models best describes about the basic
characteristics of a job and their relatedness to personal
and work outcomes. We can have a clear view that how an
individual can be motivated and perform better in relation
to these five basic job characteristics.
In the above model, first of all the core dimensions are
explained. Then it’s being told that how these dimensions
are related with an individuals’ psychological state and
finally how they lead towards personal and work outcomes.

• The first three dimensions create meaningful work. If

these three dimensions are present in the job then
employee will consider the job valuable, important and
worthwhile.

• Presence of Autonomy indicates that the employee will

feel responsibility for the results.

• Feedback means that employee will know that how

effectively he is performing?

From Motivational Perspective

• Internal rewards are obtained by individuals when they
• Learn knowledge of results
 • Personally experience responsibility
• Experience meaningfulness

• The more these three psychological states are there in

a job the greater will be employee motivation,
performance and satisfaction and the lower the
absenteeism and the likelihood of leaving the
organization.

Appendices
Appendix-I
Q. Please place the number on a scale of 1____5 on the line before each
factor: for example
 Very Important Somewhat Important Not Important
5 4 3 2 1
An interesting Job
□ □ □ □ □
A Good Boss
□ □ □ □ □
Recognition and
appreciation for
advancement □ □ □ □ □
The opportunity for
advancement □ □ □ □ □
A prestigious or
status job □ □ □ □ □
Job responsibility
□ □ □ □ □
Good working
conditions □ □ □ □ □
Good company
rules, regulations
and procedures □ □ □ □ □
A job you can do
well and succeed it □ □ □ □ □
Job security
□ □ □ □ □
Opportunity to
grow through
learning new □ □ □ □ □
things

Q. Are you satisfied with your management regarding following aspects?

Strongly Disagree Neutral Agree Strongly

Disagree Agree

Gives fair and

equal treatment □ □ □ □ □
Is available to
discuss job- □ □ □ □ □
related issues
Welcome
suggestions □ □ □ □ □
and encourages
feedback

Maintain
consistent □ □ □ □ □
policies&
procedures
Provides
recognition for □ □ □ □ □
achievement

Q. Please indicate your level of agreement with each of the following

statements:

Very Somewhat Neutral Somewhat Very

satisfied satisfied dissatisfied
dissatisfied

Salary
□ □ □ □ □
Benefits
□ □ □ □ □
Frequency and
amount of
bonuses □ □ □ □ □
Workload
□ □ □ □ □
Flexibility of
work hours □ □ □ □ □
Physical
working
environment □ □ □ □ □
Opportunity for
career
advancement □ □ □ □ □
Opportunity to
use new
technologies □ □ □ □ □
Recognition
received from
your supervisor □ □ □ □ □
Your
relationship
with your co-
workers
□ □ □ □ □
Your overall
satisfaction
with your
company
□ □ □ □ □
Job Security
□ □ □ □ □
Appendix-II
Objective: We have been assigned a project in which we have to study the
motivational level of employees, while being on their jobs, and that what they feel
about their jobs. What are their expectations from their organizations? Our main
focus is on Banking Sector. The basic motive for conducting this study is to see
whether Motivational Theories are applicable in real life or not?

Your’ Name: _____________________________________________

Your’ Bank:_______________________________________________
Your’ Designation: _________________________________________
Responsibilities: __________________________________________

Q. How long you have worked at this organization?

□ Less than 6 months

□ 6 months to 1 year
□ 1 to 2 years
□ 3 to 5 years
□ More than 5 years
Q. Overall how satisfied you are with your overall position?

□ Dissatisfied
□ Somewhat dissatisfied
□ Neutral
□ Satisfied
□ Very satisfied
Q. Your organization clearly communicates its goals and strategies to you?

□ Strongly disagree
□ Somewhat disagree
□ Neutral
□ Somewhat agree
 □ Strongly agree
Q. If goals are specifically communicated to you, would it lead you towards
better productivity?

□ Yes
□ Somehow
□ No
Q. What factors will affect your performance while you have to work on your
targeted goals?

□ Specific goals
□ Your participation in goal setting on which you have to work
□ Feedback regarding your performance
□ Your belief in your abilities
□ All of the above
Q. How flexible this organization is with respect to your family
responsibilities or in case of any emergency?

□ Very inflexible
□ Somewhat inflexible
□ Neutral
□ Somewhat flexible
□ Very flexible
Q. If you are dissatisfied with your work or working conditions due to any
related reason. What will you do?

□ Leave it as it is
□ Wait for conditions to improve
□ Seek opportunities to go through it
 □ Try to find out solutions
□ Leave the organization
Q. Do you think that your satisfaction or dissatisfaction can affect your
productivity?

□ Yes
□ Somewhat
□ No
Q. If you are not getting reward, would it affect your performance?

□ Yes

□ Some how
□ No
Q. What factors will affect your performance while working on any
particular task?

□ Pay
□ Rewards
□ Recognition
□ Achievement
□ Competence
□ Promotion
□ Responsibility
Q. You feel comfortable while working;

□ On individual basis
□ In Teams
Q. Do you think that employee involvement in decision making, regarding
his/her particular area, is must to achieve the goals efficiently?

□ Yes
 □ Some how
□ No
Q. Please indicate that where do you place yourself by being on this job?