Determinants of Job Satisfaction and their Impact on Employee Commitment: A Study of Foreign Joint Venture Banks in Nepal

Abstract

The study has been carried out to identify determinants of job satisfaction and their impact on employee commitment in foreign joint venture commercial banks in Nepal with the aim to examine the status of determinants of job satisfaction of employees and to assess the employee commitment in foreign joint venture banks in Nepal. This research is basically exploratory in nature which was undertaken by following descriptive and survey research design. Questionnaires were administered to the employees in both foreign joint venture banks and the respondents were asked to give their opinion about their job and the prevailing situation of HR practices in the organization. Before the computation of descriptive results, internal consistencies of the construct variables were tested by using Cronbach‟s Alpha. Alpha values of all the constructs were found to be higher than 0.7, which is the evidence for the sufficient consistency. The aim of this research was to primarily determine the determinants of job satisfaction and their impact on employee commitment among the employees of banking sector. The results emanating from the research indicate there is a statistically significant relationship between determinants of job satisfaction and employee commitment among the sample of employees selected to participate in the research. The results from the current research indicate that there is a strong, positive correlation between employee commitment and job satisfaction among the employees from banking sector. The levels of job satisfaction and employee commitment are, however, a cause for concern. Given the close link between employee commitment and job satisfaction, it is possible that many employees are possibly staying in the profession due to limited alternatives. Most of the employees were dissatisfied from freedom and authority in both organizations. So, they must include them in decision making as well as use liberal policy for higher job satisfaction. Similarly, they were also dissatisfied in job security, supervision and interpersonal relation in organization. So, organization should provide qualitative supervision, opportunity for high job security and effective supervision and sound work environment so that the employees are satisfied with their job and are committed towards the organization.