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The IUP Journal of Bank Management
The Influence of HR Policy Dimensions on the Job Satisfaction of Employees of Public Sector Banks: A Study on Indian Overseas Bank†
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The HR policies in the Public Sector Banks (PSBs) relating to Compensation, Benefits, Promotion, Mobility, Transfer, Contingent Rewards, Training, Staff Accountability, Incentives, etc. have been framed in terms of guidelines issued by the Government of India (GOI), which is the promoter and major shareholder of the PSBs. These policies have a direct bearing on the job satisfaction of employees and cascading effect on the performance of the bank. The research study in Indian Overseas Bank (IOB) revealed that the overall level of job satisfaction of employees in terms of established job factors was found to be at an ambivalent level. While factors like Fringe Benefits (FB) and Operating Conditions (OPC) showed a level of dissatisfaction, factors like Promotion, Contingent Rewards and Pay showed an ambivalent level. Regression analysis on the data showed Performance Management System (PMS) factor as the significant factor among the six factors of bank policy dimensions considered for the study. Conversely, Pearson Correlation Coefficient analysis showed that PMS factor was positively related to factors like Communication, Contingent Rewards and also Pay. However, factors like Trade Union and Communication were found to be negatively related to each other. The research findings not only support the existing literature on job satisfaction but also add to the deficit literature by exploring the influence and relationship of Bank Policy Dimensions for the Job Satisfaction of employees in the Indian context in Public Sector Banks.

 
 
 

India had a fairly developed commercial banking system in existence at the time of independence in 1947, with 637 commercial banks operating in the country (RBI, 1947). The Reserve Bank of India (RBI) was established in 1935 and became a state-owned institution to serve as a central bank of the country from January 1, 1949. The Government of India (GOI) simultaneously enacted the Banking Regulation Act in 1949 providing a framework for regulation and supervision of commercial banking activity by RBI.

The GOI perceived that loans extended by colonial commercial banks were biased toward working capital for trade and large firms (Joshi and Little, 1996). Hence, “GOI took the view that the banking system has had to serve the goals of economic policies of the country’ particularly concerning equitable income distribution, balanced regional growth, elimination of poverty, employment generation and the control of private sector monopolies in trade and industry.”

 
 
 
Bank Management Journal, The Influence of HR Policy Dimensions, Job Satisfaction of Employees, Public Sector Banks, A Study on Indian Overseas Bank