Banking Sector Of Pakistan Research Articles

Impact of job rotation on employee motivation, commitment and job involvement in banking sector of Pakistan

The purpose of this research is to find out, to what extent job rotation enhances employee motivation, commitment and job involvement working in the banking sector of Pakistan and in banks in general. Survey methodology was used for this research. 285 valid responses were generated from bankers working in seven major banks operating in province capital. Statistical package for the social sciences (SPSS) 16 was used to analyze the data through descriptive statistics and correlation analysis. The study found that most of the subjects have spent an appreciable span of time working in banking sector and have been rotated time to time throughout their careers. It was found that when employees are rotated to different jobs across various departments, they become less motivated whereas more committed and involved in their respective jobs. Recommendations are made on how job rotation practices could be improved in banks as a reasonable amount of investment is made annually by banks on rotating its employees for personnel development. Some implications for future research are also drawn from the study. There are few studies of job rotation in the literature. This research paper enhances the understanding of a little studied topic. Key words: Job rotation, motivation, commitment, job involvement, banking sector, Pakistan.

Efficiency of Banks in Pakistan: A Non Parametric Approach

Banks play a vital role in growth and development of an economy through prudent allocation of capital resources and their efficient utilization. This study evaluates efficiency of banking sector of Pakistan, including both conventional and Islamic banking, for the time period 2006-2010 by covering a total of 22 banks; Sample includes 16 Conventional and 6 Islamic banks. Efficiency is measured through frontier non parametric technique of data envelopment analysis based on intermediation approach. During the sample period the banking sector was not much efficient in the year 2009 and the estimated efficiency scores recommend that Islamic banks performed more efficiently during the study period as compared to Conventional banks.

Psychological Empowerment: A Key to Boost Organizational Commitment, Evidence from Banking Sector of Pakistan

The purpose of this study is to elaborate the role of psychological empowerment in committing employees with organization. This study tested the effect of dimensions of psychological empowerment on organizational commitment in banking sector of Pakistan. Data was gathered from employees working in banks of Pakistan. Results showed the significant effect of all dimensions of psychological empowerment (meaning, competence, self determination and impact) on organizational commitment. This study is a contribution to theory and practice with an increased understanding on importance of psychological empowerment in committing the employees with the organization.

A Comparison between Islamic Banking and Conventional Banking Sector in Pakistan

The Islamic banking system is attaining enormous development. Several modern international conventional banks were also enchanting significant concern and starting Islamic banking branches in their organizations, which work in compliance with the specific Islamic Shariah principles in a number of states of Pakistan. The Islamic banking structure is bizarrely facing gigantic contest by the Islamic banking sector all over the world as well as from the well-known International commercial banks that hold out services and products of IB. It is an attempt for exploration and investigation of the extensive and essential factors, which persuade consumers to choose the Islamic banking or conventional banking and the function of demographic features, which track consumers to the assortment of IB or CB in Pakistan. Sample of 341 respondents has been used in this study mainly focused on non-probability convenience test tool. Pre-institute 5 point likert survey instrument ranging from 5 to 1 was applied to gather data. The conclusion reveals that there are countless factors other than religious perception like employee and customer interactions, convenience, reputation, financial benefits & services, and technology, which are fundamental for the consumers for the assortment of Islamic or conventional banking. The demographic characteristics of the respondents also have a significant impact. The authors expect that the crux of this study will explore new ways for the Islamic banking system to emphasis on specific emerging factors to enhance the efficiency and performance of the Islamic banking system in Pakistan. There will be enormous advantage for executives of IBs & CBs in developing marketing approach.

Workplace spirituality: A spiritual audit of banking executives in Pakistan

Workplace spirituality has been receiving increased attention from the behavioral scientists in the recent literature. Especially the relationship between spirituality and leadership effectiveness at workplace has been the major research focus. However, most of such studies have been focusing on the work environment in developed countries like USA. On the other hand, the workplace spirituality in developing countries like Pakistan has not been investigated to the extent that it can be of some practical significance. Therefore, the present study is designed to gather empirical evidence from the banking sector of Pakistan to investigate the impact of spiritual need for leadership among followers in relation with spiritual leadership behaviors on followers’ work outcomes like performance, organizational commitment and job satisfaction. This study reveals certain practical implications for this growing service sector management. Key words: Spiritual leadership, workplace spirituality, individual outcomes, spiritual well-being, religion, leadership Pakistan, USA.

Key Factors of organizational citizenship behavior in the banking sector of Pakistan

Organizational citizenship behavior (OCB) is very essential for the development and effectiveness of an enterprise. Therefore, the main purpose of this study was to explore the determinants of OCB among the employees of the banking sector of Pakistan. Questionnaire measuring altruism, conscientiousness, civic virtue and OCB were administered to 318 employees of banks and Pearson correlation was applied to test the hypothesis. All the determinants (that is, altruism, conscientiousness and civic virtue) were found positively and significantly related to OCB. Most importantly, the relationship between altruism and OCB was found to be more significant as compared to other two variables. The findings of this research could be a theoretical foundation for further study.

The effect of taxes on dividend policy of banking sector in Pakistan

The purpose of this study is to explore the impact of taxes on dividend policy of banking sector in Pakistan. The data obtained from the financial reports of 21 banking companies listed on Karachi Stock Exchange over a period of five years (2006 to 2010) is used in this study. Pearson correlation and regression is used to find the relationship of tax and dividend income. The results show a significant correlation between taxation and dividend income of the banks and also suggest that the tax-rate is an important determinant of dividend policies of the banking sector. Key words: Dividend policy, taxation, dividend income, tax-rate.

Impact of Privatization on Banking Sector Performance of Pakistan

Banking sector in Pakistan after privatization of few banks improved its efficiency. Liquidity ratios of the banks have improved. Numbers and values of deposits have increased. Profitability of the banks increased. Value of non-performing loans is controlled. However, spread rate is still higher as compared to pre-privatization period. New products and services have been created to facilitate the customers.

Impact of human resource practices on employee perceived performance in banking sector of Pakistan

The main endeavor of this study is to examine the relationship and nature of relationship between the employee perceived performance and human resource (HR) practices (compensation, performance evaluation, and promotion practices) in the banking sector of Pakistan. Survey of 235 banking personnel was conducted through personally administrated questionnaire to investigate the impact of HR practices on employees’ perceived performance. The relationship and nature of relationship is calculated by applying the Spearman’s correlation matrix and multiple regression analysis. The Spearman’s correlation results demonstrate that, the employee perceived performance and HR practices has the positive and significant relationship. The regression results indicate that the two HR practices: performance evaluation and promotion practices are significant but the compensation practices are not significant. Moreover, this study provides help for top-management of banking sector to design or revise their HR policies and make practices to attain high employee performance. Key words: Employee perceived performance, HR practices, banking sector, Pakistan.

IMPACT OF FREEZING OF FCAS: THE CASE OF PAKISTAN

Foreign investment and foreign exchange reserves have ample importance for developing countries. So, there is a needed to encourage the foreign and domestic investors whose confidence was suffer by the unexpected decision of freezing of FCAs. The purpose of this study was to identify the areas that were affected after the decision of freezing of FCAs. Moreover, the impact of freezing decision on economy of Pakistan also indicated. More sophisticated impact on banking sector, balance of payment, foreign exchange reserves, foreign debt, and foreign investment. Study found the negative impact of freezing decision of FCAs on foreign banking and positive impact on domestic banking but Pakistan banking sector was disconnected from the international banking; insatiability in balance of payment was increased; the foreign investment and exports was reduced. Resultantly, foreign exchange reserves were reduced and foreign exchange rates was increased. Therefore, it is suggested to increase the confidence of foreign investors in order to increase the foreign investment and foreign exchange reserves. Discussion of conclusions and recommendations were also provided.

Antecedents of organizational commitment of banking sector employees in Pakistan

The aim of this study was to check the association of factors like work environment, job security, pay satisfaction and participation in decision making; with organizational commitment of the employees, working in the banking sector of Pakistan. Two hundred and fifteen (215) responses to questionnaire-based survey were collected from managerial and non-managerial employees, and analyzed. The analysis showed positive correlations between the dependent and independent variables. The relation between job security and organizational commitment was the most significant, indicating that a secure job can yield higher level of commitment. Work environment also had a significant relation with organizational commitment, showing that a healthy and friendly work environment may enhance an employee's commitment towards his work and organization. Pay satisfaction and participation in decision-making had low correlations with organizational commitment. Age and tenure seemed to affect the commitment of employees, with higher commitment shown for higher age and tenure; whereas gender did not show significant change in commitment level of employees.

Impact of Tax Reduction Policy on Banking Sector in Pakistan

This study analyzes the impact of tax policy reforms on the profits of banking sector. The empirical results of unit root and Augmented Dickey Fuller (ADF) test reveal that the data series of tax is positively skewed whereas data series of profitability is negatively skewed. The kurtosis value indicates that all the series are platykurtic. From the value of ADF statistics, it is evident that all the variables are non-stationery at log level and are stationary at their first difference. Granger Causality Test shows that profitability of banking does not granger because tax but tax granger cause profitability of banking which depicts that the change in tax rate affects the profitability of banking industries. The study finds that reduction in corporate income tax rates for banking sector has produced positive impact in shape of increased banking sector profits and assets during the period under review.

Customer Satisfaction with Service Quality in Conventional Banking in Pakistan: The Case of Faisalabad

The purpose of this paper is to evaluate the customer satisfaction of banking industry in Pakistan general, and Faisalabad particular, based on various levels of customer perception regarding service quality. This is an empirical study based mainly on primary data collected through a well-structured questionnaire. The questionnaire has been personally administrated on the a sample size of 132, chosen respondents on a convenient basis from four Pakistani banks, i.e. Alfalah Bank Limited, Faysal Bank Limited, National Bank Limited, and The Bank of Punjab. This paper makes a useful contribution as there are only few studies dealing with the assessment of service quality in conventional banking sector of Pakistan .The result indicates that customer perceive highest satisfaction in the responsiveness area and lowest in the tangibles area. In order to achieve higher levels of service quality, the bank managers should redesign their strategies about customer satisfaction with respect to service quality.

Jobs satisfaction mediates relationship between facets of job and citizenship behavior: a study of female employees of banking sector of Pakistan

Several articles have reported and discussed the job satisfaction and dissatisfaction of female workers in miscellaneous organizations. However, very few empirically-supported explanations have been given to explain how job satisfaction mediates the relationship between facets of job and citizenship behavior in banking sector of Pakistan and specially focusing on female employees. Probes into the explanations of determining how job satisfaction mediates the relationship between facets of job and citizenship behavior, the data were collected from female employees of banking sector of Pakistan. Total 200 self-administered questionnaires were distributed among the female staff of different banks. 188 completed questionnaire were received back with response rate of 94%. The participation in survey was voluntary and confidentiality of responses was ensured. Statistical analysis reveals that there exists significant relationship between facets of job (pay, promotion, supervisor’s behavior and coworker’s behavior) and dependent variables (organizational citizenship behavior); likewise, job satisfaction mediates the relationship between facets of job and citizenship behavior. Limitations and future implementations of this research are also discussed.

Compensation Management: A strategic conduit towards achieving employee retention and Job Satisfaction in Banking Sector of Pakistan

This paper explores some basic facts about one of the very important aspect of HRM that is Compensation Management and how it affects the job satisfaction and employee retention in banking sector of Pakistan. This paper seeks to add some contribution towards the compensation management in the banking sector of Pakistan. Researchers have analyzed the success factors of one of the leading bank of Pakistan as a case study in current research in order to explore the leading satisfactory factors, issues and challenges regarding compensation policy of the case study bank. A sample of 450 employees of case study bank has been selected for current research using questionnaire and in depth interviews as leading technique of data collection. Research reveals the changing trend of employees from financial rewards to non financial rewards as well. Along with various success factors by which bank retains its employees, results have shown that work overload, lack of practical approach towards training and seniority oriented incentive plans are some of the major issues which need immediate attention by the administration.

Prime and sub-prime factors of employee voluntary turnover in boom phase of industry: Empirical evidence from banking sector of Pakistan

The implied debate relating turnover and its factors may be old but the present study takes a new route towards the understanding of turnover by employees. Banking industry of Pakistan passed through its boom phase in the last decade and along side encountered with much turnover unexpectedly. For this study we selected employees who changed their job during boom phase of industry. This paper first investigated the prime factors of the turnover and then has used bivariate correlation to determine the sub-prime factors associated with prime factors. This bifurcation is very necessary to know the stem roots of the main problem. Much of past literature consists of turnover intentions and the factors related to them. But the current study moves much step ahead by giving the actual causes that pushes any employee for turnover especially in boom phase. The results do confirm a major impact of sub-prime factors on the actual prime factor. This study also recommends some possible solution for the situation. Key words: Banking voluntary turnover, boom phase, prime and sub-prime Factors, employee satisfaction, compensation, management relations, career growth, job hoping, Pakistan.

Study of Efficiency Measures in the Banking Sector in Pakistan (2006-2010): Quantitative Analysis with Qualitative Inferences

Achievement of Efficiency is considered to be an important factor for all entities , yet it is a tricky one, primarily because it is measured in relative and comparative terms. For the financial sector , it has tremendous importance, having material benefits and losses too. Therefore it becomes an important benchmark of achievement. This study is first part of a series of studies to be continued in the efficiency measurement in the financial sector in Pakistan. The current study measures efficiency of fourteen select banks in the financial sector of Pakistan and addresses the interpretation of efficiency. It uses the parametric OLS technique, using the definition of efficiency and the set of variables chosen from the CAMEL rating system of the regulators of financial institutions. It further applies the non parametric Data Envelopment Analysis Approach to the sample and assesses their relative efficiency in terms of inputs and outputs of the intermediation approach. It discusses the results in the context of the background of the variables of assessment and their relationship to efficiency of banks. The study aims at finding a better view of performance in the financial sector for more reliable results.

Association between Reward and Employee Motivation: A Case Study Banking Sector of Pakistan

This study examines the association between rewards and employee motivation in banking sector of Pakistan. The study is based on primary data and sample Size (N=167) consisted of male and female employees of 19 different banks. Primary data collected by structured questionnaire by using sort of different approaches. Two different hypotheses was developed for the present study and was tested by applying Chi square Test and Regression Test. Significant value is 0.048 of Pearson Chi-square its mean there is association between salary and gender. The correlation between rewards and Employee Motivation is 0.546, which shows the positive relationship between reward and employee motivation. Regression Equation shows that when the reward is made on the basic of Employee point of view; Employee Motivation will increased by 0.527. The results also showed that salary is much important factor for employee motivation as compared to other variable factors like promotion, job security, working condition, appreciation and other benefits.

Performance evaluation of pre- and post- nationalization of the banking sector in Pakistan: An application of CAMEL model

This research study is based on the nationalization and de-nationalization of the banking industry in Pakistan. An effort has been made to analyze and evaluate the performance and efficiency of the banking sector using CAMEL parameters. It covers the period of pre- and post- nationalization of the state owned and commercial owned banks of Pakistan. Through the utilization of this model, it has been explored that the position of banks under study are sound and satisfactory with regards to capital adequacy, assets quality, management capabilities, earnings and liquidity. Key words: Performance and efficiency of banking, soundness of banks, CAMEL.

Does corporate governance lead to a change in the capital structure?

The study investigates the relationship between corporate governance and capital structure of randomly selected 19 banks of Pakistan. The data was collected from financial statements issued by financial institution and multiple regression model was applied to find the relationship between the variables. Results show that there is no relationship between corporate governance and capital structure in the banking sector of Pakistan. Furthermore, our findings show that all independent variables are positively related with capital structure except ownership concentration which affects adversely to capital structure but overall there is an insignificant relationship between capital structure and corporate governance.