Employee Motivation and Human Resource Development in the Banking Sector of Bangladesh: Theories and Practices

Abstract

Banking organizations are striving to enhance and build themselves into a competitive giant in the country's financial sector. Due to increasing competition, banks have to perform well in the core business which reflects sustainability in corporate business. Banks are performing four key functions of HRM to get (find), prepare, activate and keep the employees (GPAK). Human resources are the key contributor of excellence management of the banks. How to attract the brilliant manpower—is regarded the significant issue of the banks. This is why; banking organization provides the facilities, and to create the employees more skilled and efficient performing well in their assigned duties and responsibilities. They (employees) will be satisfied more depending when they perform well than the earlier they can. Satisfied employees strive to achieve the goal of the bank. This satisfaction influences by the different factors such as better packages of salary and incentives, job security, leave facilities, training and development, HRD and work environment in the workplace. The main objective of this study is to identify stimulating factors from the motivation theories and to relate them to the Human Resource Development (HRD) Matrix along with evaluating its practices to assess employee motivation in the banking sector of Bangladesh. In this study, the final investigation was to measure the organizational effectiveness influencing employee motivation of banks. This study has been conducted on 400 employees serving the state-owned or public and private banks. The stratified random sampling technique has been used to collect data through self-administered survey questionnaire. The approach of this study is followed by quantitative method and complemented by few qualitative observations. The structured questionnaire (close-ended) survey has employed to the required number of employees (n = 400) in selected branches of the ten banks in Bangladesh. Descriptive statistics such as Frequency Distribution, Mean, Standard Deviation, P-P, Q-Q, plots and Inferential Statistics i.e., Bivariate Correlation, Chi-square Test of Fisher’s Exact p-value, Levene’s Variance Equality Test for Comparison, Binary Linear Regression, Binary Logistic Regression, Wald Test, ANOVA, , PCA, Exploratory Factor Analysis (EFA), Total Variance Explained, Structural Equation Modeling (SEM) for considering the latent factors. SPSS version 21.0 and STATA version 13.0 have been used to analyze the collected data for testing the hypotheses.