Internship Report on
An Analysis and Evaluation of HR policies of
Biman Bangladesh Airlines Limited
Exam Roll: 162502
Internship Report on
An Analysis and Evaluation of HR policies of Biman
Bangladesh Airlines Limited
Prepared For:
Chairman
Internship Placement Committee
Prepared by:
Exam Roll Number: 162502
4th year, 8th semester
Batch Number 25th, BBA program
Academic Session: 2015-16
Institute of Business Administration (IBA-JU)
Jahangirnagar University, Savar, Dhaka-1342
14 April 2020
DECLARATION
I do hereby declare that the internship report entitled as “An Analysis and Evaluation of HR policies
of Biman Bangladesh Airlines Limited” has been prepared on the basis of three months Internship
activities on the titled organization and it is an original work done by me.
The report is a unique one which is not submitted to anywhere for any academic purpose. The data and
information which are mentioned here are also collected and organized by myself. I am solely
responsible for any kind of misleading or manipulation of data or information in this report.
Finally, this report is submitted to the Institute of Business Administration, Jahangirnagar University
for the partial fulfillment of the requirements of the Degree of Bachelor of Business Administration.
……………………………….
Signature of the Intern/Student:
Exam ID: 162502
Class ID: 1923
Batch No: 25th
Academic Session: 2015-16
Major area of concentration: Marketing
Institute of Business Administration (IBA-JU)
Jahangirnagar University
CERTIFICATE OF THE SUPERVISOR
This is to certify that Mr. Rezaun Nabi bearing Exam ID: 162502, Batch: 25th, Academic Session: 201516, a student of BBA program, Institute of Business Administration, Jahangirnagar University, has
completed internship program on “An Analysis and Evaluation of HR policies of Biman Bangladesh
Airlines Limited” under my supervision.
I have gone through the report and it seems satisfactory to submit for the award of the Degree of
Bachelor of Business Administration.
I wish his/her success in life.
…………………………………
Signature of the Supervisor
Name of the Teachers : Mr. Shahriar Kabir
Designation
: Assistant Professor
Institute of Business Administration (IBA-JU)
Jahangirnagar University
Acknowledgement
I take this opportunity to express my profound gratitude and deep regards to my respected supervisorMr. Shahriar Kabir, Assistant Professor, IBA-JU for his exemplary guidance, monitoring and constant
encouragement throughout the course of this report. The blessing, help and guidance given to me by
him from time to time shall carry me a long way in the journey of life on which I am about to embark.
I would like to express a deep sense of gratitude to Md. Nurul Islam, (Retd.) DGM (O & M), Biman
Bangladesh Airlines Limited, Mohammad Kamal Hossain, Manager (Investigation), Biman
Bangladesh Airlines Limited and Md. Shamsuddoha Akand, Manager (Employment, HRD) for their
cordial support, valuable information and guidance, which helped me in completing this task through
various stages.
I am obliged to members of Biman Bangladesh Airlines Limited, for the valuable information provided
by them in their respective fields, specially Mr. AZM Arif, Ms. Tahmina, Mr. Mizanur and Mr. Mamun.
I am grateful for their cooperation during the period of my assignment.
I thank almighty, my parents and friends for their constant encouragement without which this
assignment would not be possible.
Finally, thanks to all scholars whose writings, valuable researches and models helped me in completing
this research.
Table of Content
Chapter 1: Introductory Part
1.1 Introduction
1.2 Background
1.3 Scope of the Study
1.4 Objective of the Study
1.4.1 Broad Objective
1.4.2 Specific Objective
1.5 Methodology
1.6 Limitations
Chapter 2: Organization Part
2.1 Organization Overview
2.2 History
2.3 Nature of Business
2.3.1 The Core Business/Activities
2.3.2 The Non-Core Business/Activities
2.3.3 Vision
2.3.4 Mission
2.3.5 Objective
2.4 Organogram
2.5 Manpower
2.6 Fleet Size of BBAL
2.7 Policy Brief of BBAL
Chapter 3: Project Part
3.1 Literature Review
3.2 Demographic Analysis
3.2.1 Designation based Employee Satisfaction on HR policy
3.2.2 Department based Employee Satisfaction on HR policy
3.2.3 Experience based Employee Satisfaction on HR policy
3.2.4 Gender based Employee Satisfaction on HR policy
3.2.5 Salary based Employee Satisfaction on HR policy
3.3 Factor Analysis
3.3.1 KMO and Bartlett’s test of Sphericity
3.3.2 Reliability Statistics
3.3.3 Ranking Magnitude of Variables
3.3.4 Discussion on Factors Affecting Employee Satisfaction on Policy
3.4 Qualitative Data
3.4.1 In-Depth Interview and Internship Diary
Chapter 4: Findings and Recommendations
4.1 Findings
4.2 Recommendations
4.3 Conclusion
Reference
Appendix
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List of Tables
Table 1: Manpower of BBAL
Table 2: Fleet Description of BBAL
Table 3: Designation based Employee Satisfaction on HR policy
Table 4: Department based Employee Satisfaction on HR policy
Table 5: Experience based Employee Satisfaction on HR policy
Table 6: Gender based Employee Satisfaction on HR policy
Table 7: Salary based Employee Satisfaction on HR policy
Table 8: KMO and Bartlett’s Test of Sphericity
Table 9: Reliability Test (Cronbach’s Alpha)
Table 10: Ranking Magnitude of Variables
Table 11: Principal Component Analysis
Table 12: Rotated Component Matrix
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List of Figures
Figure 1: Organization Overview
Figure 2: Organogram of BBAL
Figure 3: Designation based Employee Satisfaction on HR policy
Figure 4: Department based Employee Satisfaction on HR policy
Figure 5: Experience based Employee Satisfaction on HR policy
Figure 6: Gender based Employee Satisfaction on HR policy
Figure 7: Salary based Employee Satisfaction on HR policy
Figure 8: Scree Plot
List of Acronyms
ACRONYM
BBAL
BATC
BFCC
BPC
ILLUSTRATION
Biman Bangladesh Airlines Limited
Bangladesh Airlines Training Center
Biman Flight Catering Centre
Biman Poultry Complex
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Executive Summery
This research has been carried out by a researcher who has been the Intern of Biman Bangladesh
Airlines Limited under its HR department. During the course of the internship, the researcher worked
in various departments related to HR. Most of the researcher work revolved around the study and
understanding of organizations policies along with other things. Thus, the idea for a research on
BBAL’s HR policies was conceived.
The research mainly analyzes and evaluates the HR policy of BBAL in regards to employee satisfaction.
The research was developed based on a questionnaire, internship diary and in-depth interview. The
questionnaire depends on 28 variables and 5 demographics to measure employee satisfaction regarding
HR policies of BBAL. The in-depth interview and job diary help with further analysis. The tools used
for the analysis was MS excel and IBM SPSS. The data from the analysis was used to develop the
research.
Policy is one of the fundament features of any organization. It is basically how an organization conducts
its activities. Having an effective and satisfactory policy is a crucial thing for any organization in order
to succeed. Employee satisfaction is another such important aspect. Satisfaction among the employees
are crucial for them to feel motivated and give their best for their organization. So, it goes without
saying that employee satisfaction on organizations policies particularly HR policies which deals with
the employees are very important.
The research indicates connection between demographics such as designation, experience, salary,
gender, departments and satisfaction of employees on HR policies. It shows how increase in some of
these demographics increases the satisfaction level as well, for other demographics in depth interview
reveals that there are other factors at play as well. From factor analysis we can see that compensation,
career opportunity, work life, awards, leadership and discipline aspects of the policy play the most
important role in employee satisfaction regarding policy. It is shown that career opportunity of BBAL
has an inverse relationship indicating that it might be a problem aera in the policy and through in-depth
interview and internship diary, a deeper understanding of why is derived.
While most employee seem satisfied with the overall HR policy some suggestions for improvement
includes overhauling it career opportunity policies, recruiting more capable personnel and giving out
more promotions, having a 360 degree promotional exam system, diversifying and making more female
recruitment and positing more females in higher positions, changing up the degree of punishment in
disciplinary procedures more in relation with the offence, establishing equal basic pay scale for all
departments, bringing out more comprehensive leadership policies etc. The purpose of this research is
to analyze and evaluate the HR policies of BBAL and make change recommendations where necessary.
The increased employee satisfaction level for any organization can bring it prosperity and beyond.
Chapter 1: Introductory part
1.1 Introduction
Since its inception in 1972, Biman Bangladesh Airlines Limited has been a national flag carrier for
Bangladesh all across the world. It’s the first and oldest Airlines in Bangladesh. So, along with a rich
history and culture, it also enjoyed being the countries monopoly in the Airline industry until as late as
1996. But even after the introduction of different private airlines, Biman still continues to be the
country’s largest Airline company. Other private airlines include US Bangla, Regent, Novo air etc. As
of 31st December, 2019, the manpower of BBAL stands at 3708 though its approved manpower is 5468.
It is worthy to note however that there are an estimated 2000 employees working on a casual basis who
are not counted among the mainstream employees. The organizational structure of BBAL comprises of
its Board of Directors, MD & CEO and eight directorates. Among many of its resources, its fleet of
aircrafts, airports and employees are the most critical. This report seeks to do an in-depth analysis and
evaluation of HR policies of Biman Bangladesh Airlines Limited. The report will evaluate the HR
policies in terms of how they contribute to employee satisfaction and how it effects employees and it’ll
also analyze the policies, check whether its updated or not and recommend improvements where
necessary.
1.2 Background
Human Resource is one of the most important resources an organization can have, specially a servicebased organization like an airline company. HR is very important and an inseparable part of any
organization. From hiring to dealing with employee problems to handling promotions, compensation,
work life, awards, performance reviews etc. The importance of HR cannot be understated. Though the
concept and importance of HR is a relatively new and growing trend in the context of Bangladesh and
up until recent times HR often held a backseat in an organization’s priorities, it has been an important
aspect of BBAL for a long time and had its importance recognized long before many other
organizations. The aspect of HR in BBAL ranges from hiring, training, manpower management,
promotions, discipline, compensation, regulations, investigations etc. However, though in BBAL, the
HR has been an important factor for a long time, it is not entirely clear as to how well HR policy is
serving the interests of the employees of the organization and how satisfied the employee are with the
organizations HR policies and whether HR is updated to adequate levels or not and if any improvements
can be made in the current context. This report is being done just for such a purpose. To analyze the
HR policies of BBAL, evaluate them in terms of their contribution to the employees of the organization
in terms of their satisfaction and make necessary recommendations.
1
1.3 Scope of the Study
This project is proposed to be undertaken in order to understand how the country’s national flag carrier
carries out its HR policies and evaluate the policies on the basis of how much it serves the interests and
wellbeing of its employees in terms of their satisfaction and whether it needs to updated or not. It also
attempts to seek out some of the flaws that might exist in Biman’s HR policies. In this report room for
improvements regarding the national flag carriers’ policies will also be sought out and recommended.
So, the scope of the study entails:
1. Analysis of BBAL’s HR policies and seek out room for improvements.
2. Evaluation of BBAL’s HR policies in relation to employee satisfaction of key policy area such
as compensation, work life balance, training, discipline etc.
1.4 Objectives of the Study:
1.4.1 Broad Objective
Broad objective of this study is to analyze and evaluate the HR policies of Biman Bangladesh Airlines
Limited and gain an in depth understanding of how well the HR policies contribute towards the
betterment, wellbeing and satisfaction of its employees and to make necessary recommendations for
updates and changes that can be undertaken.
1.4.2 Specific Objectives
Specific objectives include:
•
To analyze Biman Bangladesh Airlines Limited HR policies.
•
To evaluate BBAL’s HR policies.
•
To study the level of employee satisfaction on HR policies.
•
To provide suggestions on how to improve and update the policies if necessary.
2
1.5 Methodology
The research was done based on mainly primary research. The main eight departments were selected
for the study. A five-point (1-5) Likert scale questionnaire was used for the study. The responses of
120 respondents were recorded keeping their name anonymous. Responses were collected through
emails, private BBAL groups and physical data collection. The completed responses were collected for
data analysis.
In depth interview: Interview of several high-ranking employee and female employee were taken
throughout the course of internship and an internship diary was kept. These were used to determine the
policy selection areas for the questionnaires and to cross reference the findings and find the underlying
problems of policy aeras found by the quantitative analysis (questionnaire analysis).
Sampling: A sample of 120 respondents were selected for the study from the main eight departments.
The research was done implementing a Non-Probability Sampling Technique- Convenience Sampling.
The researcher attempted to select proportionate numbers of respondents in relation to the size of each
department and sample size in order to get an equal representation. Though for the most part
respondents, departments etc. was selected on the basis of convenience.
Data and Variable: In the quantitative part of the study the dependent variable was “Employee
satisfaction on HR policy” and the independent variables were the 28 questions related to key policy
areas affecting employee satisfaction. Section A of the questionnaire consisted of demographic profile
of the respondents while section B consisted of 28 statements measuring responses related to employee
satisfaction on HR policy aeras on the basis of a 5-point Likert scale ranging from 1(Strongly Disagree)
to 5 (Strongly Agree). For section A MS excel and for section B, a factor analysis done with IBM SPSS
was used.
1.6 Limitations:
1. Operating under the situation of a pandemic (Covid 19).
2. Strong restrictions and privacy of the organization.
3. Possible biasness of the result due to non-probability sampling.
3
Chapter 2: Organizational Part
2.1 Organizational Overview
Biman Bangladesh Airlines Limited is the national flag carrier airline of Bangladesh. The location of
its main hub is at Shahjalal International Airport, Dhaka. But it also undertakes flight operations from
its secondary hubs Shah Amanat International Airport, Chittagong and Osmani International Airport,
Sylhet. The Airline provides international passenger and cargo services to both Asia and Europe as well
as the major domestic routes within Bangladesh. Currently, it flies to 16 different countries and has air
service agreement with 42 different countries.
The airline used to be owned and managed by Bangladesh Government until 23rd July 2007, when it
became the country's largest public limited company under the directions of the Caretaker Government
of Bangladesh. Its headquarters is located in
Kurmitola, Dhaka-1229. The integral parts of
the carrier’s business consist of Annual Hajj
flights,
transportation
of
non-resident
Bangladeshi workers and migrants, and the
activities of its subsidiaries.
Its creation was in February 1972. Over the
decades following its founding, the airline
expanded its destinations and fleet size. At its peak, the airline operated flights to 29 international
destinations, all the way to New York city in the west and Tokyo in the east. After transforming into a
public limited company, Biman began to modernize its fleet. A deal with Boeing for ten new aircraft
with the option for ten more has been made.
It enjoys the certification of safe to fly in Europe by European Aviation Safety Agency. In addition, it
also passed the IATA Operational Safety Audit and ever since has been successfully flying to some of
its previous destinations.
BBAL aspires to fly the nation’s bi-colored flag to greater heights, spreading the proud name of
Bangladesh all around the globe.
4
2.2 History:
The establishment of BBAL took place on 4th January, 1972 when 2500 of its former employees along
with 10 Boeing 707 commanders and 7 other pilots of Pakistan International Airlines proposed to
Bangladesh government on 31st December, 1971 after the country’s independence. It was first
introduced as Air Bangladesh International, a name which was later changed to its current version. The
Airline fought hard against the absence of aircraft, facilities and limited funds of a newly independent
country ravaged by war. But through its perseverance, it kept its nose up and overcame many difficult
situations.
Memorable Points in History:
1972: The creation of the Airline and first international flights to London and Calcutta along with
domestic flights.
1977: The Airline became a corporation.
2007-08: In 2007, Bangladesh Biman Corporation was changed to Biman Bangladesh Airlines Limited
Company. This year Biman introduced E-ticket and BSP. In 2008, It formed an an agreement with
Boeing for acquisition of 10 new generation aircraft namely 4 Boeing 777-300ER, 2 Boeing 737-800
and 4 Boeing 787. This was the biggest deal in the history of BBAL and country.
2014: Biman made history on 20th February, 2014 when it operated the historical final flight of the
world’s last passenger DC 10-30 on Dhaka-Birmingham route and cemented its name in the annals of
world aviation history.
2018-19: BBAL received it first four Boeing 787-8 Dreamliner on August 19, 2018 and received its
second set of 4 Boeing 787-8 Dreamliner. The last Boeing 787-8 was received on 14 September, 2019.
A further purchase of two more Boeing 787-9 took place on 21st and 24th December, 2019 paving the
for BBAL to have most advance aircraft in its history.
5
2.3 Nature of Business
2.3.1 The core businesses/activities
•
Air transportation of passengers
•
Air transportation of cargo
2.3.2 The non-core businesses/activities
•
Ground and cargo handling services for own and foreign airlines
•
Engineering services
•
Bangladesh Airlines Training Center (BATC)
•
Biman Flight Catering Center (BFCC)
•
Biman Poultry Complex (BPC)
•
Motor transport
•
Medical services
•
Biman Printing Press
2.3.3 Vision
To establish Biman Bangladesh Airlines Ltd. in the aviation market as a world-class airline.
2.3.4 Mission:
To provide safe, reliable, efficient, adequate, economical and properly co-coordinated air transport
services and to satisfy customers’ expectations while earning sustainable profit and continuing to be a
caring employer.
2.3.5 Objective
To provide and develop safe, efficient, adequate, economical and properly coordinated air transport
services, internal as well as international.
6
Biman Bangladesh Airlines
বিমান িাাংলাদেশ এযারলাইন্স
Founded
Commenced
operations
4th January, 1972
4th February, 1972
Main Hubs
•
Hazrat Shahjalal International Airport
Secondary hubs
•
Hazrat Shah Amanat International Airport
•
Osmani International Airport
Frequent Flyer
Biman Loyalty Club
Program
Fleet size
18
Destinations
16 International and 8 domestic
Headquarters
Key people
Balaka Bhaban
Kurmitola, Dhaka 1229, Bangladesh
Sajjadul Hasan (Chairman)
Mokabbir Hossain (CEO & MD)
Slogan
Your home in the sky
Website
www.biman-airlines.com
Figure 1: Organization Overview
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2.4 Organogram:
Chairman
Board of Directors
CEO
Directors
Planning
Administration
Marketing & Sales
Customer Service
Finance
GM
Engineering &
Material
Management
Flight Operations
DGM
Manager
dep. Manager
Asst. manager
Jun. Officer
Supervisor
Assistant
Figure 2: Organogram of BBAL
M.L.S.S
8
Procurement &
Logistics
2.5 Manpower
Description
Directorate of Administration
Directorate of Marketing and
Sales
Directorate of Customer
Service
Directorate of Planning
Directorate of Finance
Directorate of Flight Operations
Directorate of Engineering and
Material Management
Directorate of Procurement and
Logistics
Other
Total
Approved
Strength
479
769
Existing Strength
Vacant Post
377
441
102
328
2093
1125
968
11
239
319
868
9
178
209
704
2
61
110
164
416
173
243
492
5468
3708
Table 1: Manpower of BBAL
1760
This is the mainstream manpower. Other than this there is also approximately 2000 casual employees
2.6 Fleet size Biman Bangladesh Airline Ltd.
Passengers
Aircraft
In
service
Orders
Boeing 737-800
6
—
12 — 150 162
Boeing 777300ER
4
—
35 — 384 419
Boeing 787-8
4
—
24 — 247 271
Boeing 787-9
2
—
30 21 247 298
Bombardier Dash
8 Q400
2
5
Total
18
5
C
S
Y
— — 74
Total
74
Notes
Four aircraft among six are leased. Two
on a 5-year lease from GECAS.
Two on a 6-year lease from ALAFCO.
One on a five-year lease from Smart
Aviation
Five aircraft to be delivered by 2021
starting from May 2020.
Table 2: Fleet Description of BBAL
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2.7 Policy Brief of BBAL
Compensation: Salary and allowance are given in 5 categories: Admin pay group, Technical pay
group, IT pay group, BFCC pay group and BPC pay group. The yearly increment rate is according to
pay groups and sub pay groups. The general increment rate is 5% of basic pay of each pay group.
Allowances: The employee of BBAL receive their allowances according to their trade on a monthly
basis. Some allowances are but not limited to: trade allowance, aviation allowance, entertainment
allowance, conveyance allowance, technical allowance, washing allowance, uniform allowance, flying
allowance, meal allowance. Travel allowance is given on need basis, vehicles are provided for work.
Bonuses: The bonus payments mainly entail festival allowances which are given twice for Eid festival
and once for new year. There also a yearly educational allowance for the needs of the children of
employees. Festival allowances are also provided after retirement.
Profit Sharing: In the event that BBAL profits on its businesses, it provides a share of its profits to its
employees at varying rates. The rate of sharing dependents upon the decision of the board for each
profiting year. The last sharing was a total profit of 5% which was divided on the basis of the basic of
employees.
Non-monetary Benefits: This constitutes of mainly medical facilities and passage facilities. The
passage facility entails free or cheap air travel for both home and abroad. Medical expenses are carried
out by BBAL if treated on their medical facilities or referred facilities. This is also provided after
retirement.
Provident fund: 15% money deducted from salary and stored in bank for interest. 80% of total amount
per employee can be given as loan if needed. The total amount is provided to employees along with
their retirement at the end of their service. Biman also provides welfare loans with no interest during
special times such as Eid for buying sacrificial animal.
Retirement: Retirement benefit is given as per govt. policy. BBAL gives the money at a whole or on
a monthly basis as retirement benefit at employees choice until death.
Disability benefit: Retirement and full medical expenses are carried in the event of disabilities.
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Termination and Suspension: In the event of suspension 50% basic income and house rent is
provided. For termination only stored amount in provident fund if any is provided.
Leave policy: There are 11 types of leave for employees. They are: Casual leave (20days), Sick leave
(14days, can be stored up to 60days), privilege leave (After 10 years of service, 30 days per year, 37
days for 10-15yrs, 45 days for 15+ ) if they aren’t provided then payment is awarded, Study leave
(provided after 3 years of service, length depends on course duration, Special sick leave (for prolonged
illness), Accident leave (unspecified), Maternity leave (6months), Quarantine leave (in the event of
epidemics, pandemics etc.), Leave without pay (if all other leaves are used up with reason), Special
leave (for player of BBAL), Joining leave (transfer 6 days),
Flexibility: Only employees related to operations are eligible with application if they want a shift
change. General eight hours work shift applicable for all others.
Training: BATC provides professional training to all of BBAL’s employees. Some training programs
are: Orientation training, Promotional training, Marketing training, Engineering training, Flight crew
training, Pilot training at home and Singapore, Customer service training on sales etc.
Promotional procedure: Promotion is awarded according to administrative order 4/2016. In general,
after fulfilling all criteria such as 3 years of service on current designation and having no disciplinary
proceedings or being under punishment, scoring at least an average of 20 on ACR in the period of last
3 years and medical fitness of A or B category and facing and passing promotional interview with at
least 60% marks, promotion is awarded.
Disciplinary action: Disciplinary proceeding and penalty is imposed to an employee according to
Biman Bangladesh Airlines Corporation service regulation 1979, clause 57 and 56 respectively. The
stages of disciplinary actions are as follows: 1. Censor 2. Stoppage of increment or promotion 3.
Financial penalty 4. Reduction of rank 5. Dismissal from service.
Recuperation policy: Recreational activities are due to be held at different times of the year such as
the annual picnic.
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Chapter 3: Project Part
3.1 Literature Review
Locke, E.A. (1976) states that, “Job satisfaction is the pleasurable emotional state resulting from the
appraisal of one’s job as achieving or facilitating the achievement of one’s job values (pg. 1342)” and
Spector, P.E. (1997) states that, “the extent to which people like (satisfaction) or dislike
(dissatisfaction) their jobs (pg. 2)“
Mitchell, O.S., Levine, P.B. & Pozzebon. (2013) states, “The measurement of job satisfaction can be
classified into three different methods: single question, global measurement, and facet measurement.
The global measurement seeks to obtain a single score representing the overall job satisfaction an
employee has. Several questions or statements are provided relating to different aspects of the job (such
as, pay, work activities, working conditions and career prospects), but combines them to provide an
overall score. On the other hand, facet measurements have questions or items for these different areas
and provides one score to represent each area.”
Amabile et al. (1994) suggested that employee who reveals high job satisfaction is motivated by
rewards, and rewards supported work engagement. Job satisfaction of rewards in public and private
sector employee has been established certainly associated with job satisfaction. Preceding research
found that job satisfaction is associated with the monetary compensation (pay, promotion, and bonus)
and non-monetary compensation is one of the most important explanatory variables in both sectors.
Beer et al. (1984) investigate that employees expect the organization to provide fair pay, safe working
conditions and fair treatment. Like management, employees often expect more, Depending on the
strength of their needs for security, status, involvement, challenge, Power and responsibility. Just how
ambitious for expectations of each party are vary from organization to organization. For organizations
to address these expectations an understanding of employee motivation is required.
Brun and Biron et al. (2003) investigate that reveal that lack of recognition constitutes the second
largest risk factor for psychological distress in the workplace. Among managers, for instance, it would
appear to constitute a stress-tolerance factor and a key element in their ability to handle difficult
professional situations; one of the most important sources of organizational mobilization and
engagement, recognition plays a key role in the success and continuity of organizational change.
Malhotra, N. K., Nunan, D., & Birks, D. F. (2017) Factor analysis is a general name denoting a class of
procedures primarily used for data reduction and summarization. In marketing research, there may be
a large number of variables, most of which are correlated and which must be reduced to a manageable
12
level. Relationships among sets of many interrelated variables are examined and represented in terms
of a few underlying factors. For example, bank image may be measured by asking respondents to
evaluate banks on a series of items on a semantic differential scale or a Likert scale. These item
evaluations may then be analyzed to determine the factors underlying bank image.
Rao and Sharma (2010) Factor Analysis a data reduction statistical technique that allows for the
simplification of the co-relational relationships between a number of continuous variables. Principal
component analysis is a variable reduction procedure. It is useful when anyone obtains data on a number
of variables (possibly a large number of variables), and believes that there is some redundancy in those
variables. In this case, redundancy means that some of the variables are correlated with one another,
possibly because they are measuring the same construct. Because of this redundancy, one believes that
it should be possible to reduce the observed variables into a smaller number of principal components
(artificial variables) that will account for most of the variance in the observed variables. Because it is a
variable reduction procedure, principal component analysis is similar in many respects to exploratory
factor analysis. In fact, the steps followed when conducting a principal component analysis are virtually
identical to those followed when conducting an exploratory factor analysis. However, there are
significant conceptual differences between the two procedures.
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3.2 Demographic Analysis
3.2.1 Designation based employee satisfaction on HR policy
Satisfaction
Level on
Policy
1
GM
2
2%
4.23
2
DGM
4
3%
4.02
3
Manager
10
8%
4.01
4
Dy. Manager
14
12%
3.94
5
Asst. Manager
18
15%
3.89
6
Jun. Officer
21
18%
3.72
7
Supervisor
24
20%
3.46
8
Assistant
27
23%
3.42
Total
120
100%
3.84
Table 3: Designation based employee satisfaction on HR policy
SL
No.
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Designation
4.23
4.02
4.01
Frequency Percentage
3.94
3.89
3.72
3.46
3.42
Figure 3: Designation based employee satisfaction on HR policy
Interpretation: The researcher’s survey was taken on a five-point Likert scale (from 1-5), meaning that
the satisfaction level on policy is derived from the mean of response of the respondents. Here we can
see that the frequency decreases as the designation level increases but more importantly, we can see
that the satisfaction level regarding policy increases with title. This is largely due to the fact that the
policy calls for increased compensation, facilities, leadership roles, career opportunity, awards etc. So,
as an employee keeps climbing the ranks of the organization, the more satisfied towards the policy
he/she becomes.
14
3.2.2 Department based employee satisfaction on HR policy
SL
No.
Department
Frequency Percentage
1
2
3
4
5
6
7
Satisfaction
Level on
Policy
3.7
3.76
3.78
3.61
3.71
4.22
4.09
Administration
14
12%
Marketing
16
13%
Customer Service
42
35%
Planning
2
2%
Finance
6
5%
Flight Operations
8
7%
Engineering
26
22%
Procurement &
8
6
5%
3.68
Logistics
Total
120
100%
3.82
Table 4: Department based employee satisfaction on HR policy
4.3
4.2
4.1
4
3.9
3.8
3.7
3.6
3.5
3.4
3.3
4.22
3.7
3.76
3.78
3.61
3.71
4.09
3.68
Figure 4: Department based employee satisfaction on HR policy
Interpretation: Due to the fact that the sample was drawn on mostly convenient basis, the frequency of
some departments is higher than others. However, the departmental sample was somewhat
proportionately drawn and some policy factors of different departments give extra facilities to the said
department. As a result, the satisfaction levels hold a lot of truth to them. Here, we can see that flight
operations and engineering holds the highest level of satisfaction on the policy due to the fact that they
enjoy more facilities, benefits, opportunities etc. more than others followed by customer service,
marketing, finance. The satisfaction scores are based on the respondent mean on a 5-point (from 1-5)
Likert scale.
15
3.2.3 Experience based employee satisfaction on HR policy
Satisfaction
Level on
Policy
1
15 to 18
2
2%
4.24
2
12 to 15
4
3%
4.02
3
9 to 12
10
8%
4
4
6 to 9
14
12%
3.93
5
3 to 6
18
15%
3.89
6
0 to 3
72
60%
3.54
Total
120
100%
3.94
Table 5: Experience based employee satisfaction on HR policy
SL
No
Experience
Frequency Percentage
4.4
4.2
4
3.8
3.6
4.24
4.02
4
3.4
3.93
3.89
3.54
3.2
3
15 to 18
12 to 15
9 to 12
6 to 9
3 to 6
0 to 3
Figure 5: Experience based employee satisfaction on HR policy
Interpretation: The above information states that employee satisfaction level regarding HR policy seem
to increase with experience. This is mainly due to the fact that with years of experience the policy
provides the employees of the organization with increased pay, benefit, responsibility, facilities etc. As
the number of years go by the employee is more likely to acquire these perks and promotions as well
and their retirement potential increases as well. These are mostly the reason why the satisfaction level
in BBAL tend to go up with increased years of service. The satisfaction scores are based on the
respondent mean on a 5-point (from 1-5) Likert scale.
16
3.2.4 Gender based employee satisfaction on HR policy
Satisfaction
SL No.
Gender
Frequency Percentage
Level on
Policy
1
Male
102
85%
3.76
2
Female
18
18%
3.71
Total
120
100%
3.74
Table 6: Gender based employee satisfaction on HR policy
3.77
3.76
3.75
3.74
3.73
3.72
3.76
3.71
3.7
3.71
3.69
3.68
Male
Female
Figure 6: Gender based employee satisfaction on HR policy
Interpretation: The survey information regarding gender indicates that male employees seem to have a
slightly more satisfaction level that their female counter parts. The reason for this can be attributed to
several factors such as the overwhelming number of males in organization. As of now BBAL has
approximately 23% female employees. The only sector where female employees seem to have a higher
percentage over their male counterparts is in the cabin crew with a percentage of 55.17%. The lack of
more female employees means that the policy is less likely to cater to some of their specific needs, a
few of which has been discussed in the qualitative section. It can be attributed that this lack of catering
on behalf of the policy is due to the lower number of the female employee, their lower presence in the
highest of ranks etc. as a result the slightly less satisfaction level with the HR policy. The satisfaction
scores are based on the respondent mean on a 5-point (from 1-5) Likert scale.
17
3.2.5 Salary based employee satisfaction on HR policy
Satisfaction
SL No
Salary
Frequency Percentage
Level on
Policy
1
More than 100000
6
5%
4.13
2
70000 - 100000
10
8%
4
3
40000 - 70000
32
27%
3.94
4
10000 - 40000
72
60%
3.53
Total
120
100%
3.9
Table 7: Salary based employee satisfaction on HR policy
4.2
4
3.8
4.13
3.6
4
3.94
3.4
3.53
3.2
More than 100000 70000 - 100000
40000 - 70000
10000 - 40000
Figure 7: Salary based employee satisfaction on HR policy
Interpretation: The survey information indicates that satisfaction level regarding HR policy tends to go
up with the increase in salary. It is worth noting that the salary information in the questionnaire is an
estimate of basic pay increments. It is fairly difficult to list all salary aspects as there are many different
increments, extra pay etc. The stated salary would be twice or more what it is if those estimates were
taken into consideration but for purposes of this research this estimate is good enough. As the employee
receives more promotion or gains more experience, their salary goes up as per policy as a result their
satisfaction on policy increases. The satisfaction scores are based on the respondent mean on a 5-point
(from 1-5) Likert scale.
18
3.3 Factor Analysis:
3.3.1 KMO and Bartlett’s Test of Sphericity
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
Bartlett's Test of Sphericity Approx. Chi-Square
0.896
3578.134
df
Sig.
Table 8: KMO and Bartlett’s Test of Sphericity
378
0.000
Kasier-Meyer-Olkin Measure is a statistic indicating the proportion of variance in the variables that
might be caused by underlying factors. High values bear the indication that factor analysis maybe useful
while values lower than 0.50 indicates that factor analysis won’t be useful. In this case Kasier-MeyerOlkin MSA is computed and it is found to be 0.896. This indicates that the sample is meritorious (Rao
& Sharma) and can be used for further analysis. The overall significance of correlation matrices is
tested with Bartlett’s Test of Sphericity and it provides support for validity of the factor analysis. The
above table indicates that the sample is appropriate and significant for work. Bartlett’s test of sphericity
tests the hypothesis that your correlation matrix is an identity matrix which would indicate that your
variables are unrelated and therefore unsuitable for structure detection. Small values less than 0.05 of
the significance level indicate that a factor analysis may be use with the data. In this instance
significance is 0.000 which implies that factor analysis might be useful.
3.3.2 Reliability Statistics
Cronbach's
Alpha
0.864
Cronbach's
Alpha Based on
Standardized
Items
N of Items
0.881
28
Table 9: Cronbach’s Alpha
Reliability is the consistency of a measure. A reliable test means that the same result should be produced
repeatedly. Cronbach Alpha is used in the above table to calculate the reliability of the collected data.
Cronbach’s alpha increases as the inter-correlations among test items increase. It is known as an internal
consistency estimate of reliability of test scores because inter-correlations among test items are
maximized when all items measure the same construct.
The standards of a good α score is arbitrary and depend on theoretical knowledge of the scale in
question, many methodologists recommend a minimum α coefficient between 0.65 and 0.8 (or higher)
19
(Chelsea Goforth). Though a high alpha score is preferred but an alpha score higher than 0.95 may
indicate redundancy in the data. In this context neither is the case which means that the collected data
is reliable.
3.3.3 Ranking Magnitude of Variables
Variables
Mean
Std.
Deviation
0.96721
1.05639
1.05785
0.98504
1.04305
1.07215
1.05636
1.06063
1.07267
1.12643
1.11115
1.13312
1.04399
1.10989
1.18771
1.20212
1.21602
1.15443
1.19944
1.23599
Job security policy is satisfactory
4.18
Satisfied with the monetary benefits
4.10
Leave policies are adequate
4.08
Compensation policy is satisfactory
4.06
My superiors encourage me
4.05
Emergency leave is provided when needed
4.04
Superior and I have high level of cooperation
4.03
I am happy with my superiors
4.02
I have adequate time for my family
4.01
Pay is fair and corresponds with job security
4.00
Award is presented in ceremony
3.97
Satisfied with the non-monetary benefits
3.96
Retirement policy is satisfactory
3.95
Recuperation policies are effective
3.94
Long years of service is recognized by policy
3.86
I get recognition for my hard work
3.82
I have flexibility of work
3.81
I am happy with my job description
3.80
Adequate leadership opportunity is provided
3.78
The award procedure is appropriate
3.75
Disciplinary policy is a deterrent for unwanted
3.66
1.27901
behavior
Disciplinary policy provides safety to all
3.64
1.22848
Promotional procedure is fair and impartial
3.62
1.28458
Disciplinary policy is fair and impartial
3.60
1.23190
Career development opportunities are
2.62
1.38530
adequate
Promotional policy is to my liking
2.54
1.34662
I appreciate the level of responsibility
2.48
1.30907
Training policy is satisfactory
2.45
1.30244
Table 10: Ranking Magnitude of Variables
Analysis
N
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
120
21
120
120
120
22
23
24
120
25
120
120
120
26
27
28
From the above table we can interpret that Job security (4.18) is the highest ranked variable for policy
satisfaction and following it are monetary benefits (4.10), leave policy (4.08), compensation policy
(4.06), encouragement from superiors and so on. The fact that these variables ranked higher than others
mean that Employees of BBAL prefers those policies to be more satisfying over the lower ranked ones
such as promotional policy (2.54), appreciation for level of responsibility (2.48), training policy
20
satisfaction (2.45). The policies related to the lower ranked variables seem to inhibit some problem
areas in BBAL’s policies that employees are not as satisfied with it. Thus, the score for the variables
was higher for some and lower for others. (extend)
Initial
1.000
1.000
Extraction
0.917
0.907
Disciplinary policy provides safety to all
Disciplinary policy is a deterrent for unwanted
behavior
Disciplinary policy is fair and impartial
1.000
I am happy with my superiors
1.000
I appreciate the level of responsibility
1.000
Satisfied with the non-monetary benefits
1.000
My superiors encourage me
1.000
Training policy is satisfactory
1.000
Career development opportunities are adequate
1.000
Adequate leadership opportunity is provided
1.000
Promotional procedure is fair and impartial
1.000
Superior and I have high level of cooperation
1.000
Pay is fair and corresponds with job security
1.000
Promotional policy is to my liking
1.000
Recuperation policies are effective
1.000
I am happy with my job description
1.000
Award is presented in ceremony
1.000
Long years of service is recognized by policy
1.000
Retirement policy is satisfactory
1.000
I get recognition for my hard work
1.000
I have flexibility of work
1.000
The award procedure is appropriate
1.000
Leave policies are adequate
1.000
I have adequate time for my family
1.000
Satisfied with the monetary benefits
1.000
Job security policy is satisfactory
1.000
Compensation policy is satisfactory
1.000
Emergency leave is provided when needed
1.000
Table 11: Extraction Method: Principal Component Analysis
0.901
0.897
0.890
0.881
0.879
0.869
0.842
0.841
0.829
0.826
0.823
0.823
0.813
0.794
0.758
0.752
0.751
0.747
0.741
0.733
0.718
0.717
0.692
0.646
0.634
0.551
The proportion of variance in any one of the original variables, which is being captured by the extracted
factor, is known as communality (Nargundkar, 2003). Communalities table indicates that after the
extraction of six factors and their retainment in rotated component matrix the communality is 0.917 for
variable- Disciplinary policy provides safety to all, 0.907 for variable- Disciplinary policy is a deterrent
for unwanted behavior and onwards. It means 97.7% of the variance of variable- Disciplinary policy
provides safety to all is being captured by the six extracted factors together.
21
Factor Loading
Measures
Compensation
Career
Opportunity
Work life
Compensation policy is satisfactory
0.729
Satisfied with the monetary benefits
0.719
Pay is fair and corresponds with job
0.708
security
Satisfied with the non-monetary
0.583
benefits
Retirement policy is satisfactory
0.723
Career development opportunities
-0.807
are adequate
Promotional policy is to my liking
-0.817
Training policy is satisfactory
-0.763
I appreciate the level of
-0.699
responsibility
Promotional procedure is fair and
0.628
impartial
Leave policies are adequate
0.648
I have flexibility of work
0.554
Emergency leave is provided when
0.576
needed
I have adequate time for my family
0.822
Recuperation policies are effective
0.772
Job security policy is satisfactory
0.638
The award procedure is appropriate
I get recognition for my hard work
Award is presented in ceremony
Long years of service is recognized
by policy
I am happy with my job description
Adequate leadership opportunity is
provided
I am happy with my superiors
My superiors encourage me
Superior and I have high level of
cooperation
Disciplinary policy is fair and
impartial
Disciplinary policy provides safety to
all
Disciplinary policy is a deterrent for
unwanted behavior
Total
5.993
5.400
3.216
% of Variance
21.402
19.285
11.487
Cumulative %
21.402
40.687
52.174
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 13 iterations.
Table 12: Rotated Component Matrix
22
Award
Leadership
Discipline
0.592
0.728
0.723
0.652
0.599
0.710
0.817
0.823
0.793
0.853
0.861
0.861
3.213
11.474
63.648
2.591
9.252
72.900
1.762
6.294
79.194
Loading on factors can be positive or negative. A negative loading indicates that this variable has an
inverse relationship with the rest of the factors. The higher the loading the more important is the factor
(Rao & Sharma). However, Comrey (1978) suggested that anything above 0.44 could be considered
salient, with increased loading becoming more vital in determining the factor.
For the above table we can see that for most variables related to career opportunity, factor loading is
negative. This indicates that in the questionnaire respondents responded to the opposite scale of survey
questions meaning that in the case of policies related to career opportunity, BBAL employees do not
feel very satisfied. They are also important variables in relation to the respective factor.
The researcher conducted factor analysis with varimax rotation to examine how the selected measures
loaded on expected constructs. Six factors were recovered from the analysis with Eigen value greater
than 1. The Eigen values represent a partition of the total variation in the multivariate sample. They
sum to the number of variables when the principal components analysis is done on the correlation
matrix. Eigen values for six factors were 5.993, 5.400, 3.216, 3.213, 2.591, 1.762. The total cumulative
variation explained by factor analysis was 79.194%. The first factor explained 21.402% of total
variance; whereas the second factor 19.285%, the third factor 11.487%, the fourth factor 11.474%, the
fifth factor 9.252% and the last sixth factor was 6.294% of total variance.
Figure 8: Scree Plot
23
A Scree Plot is a simple line segment plot that shows the fraction of total variance in the data. The plot
is in the descending order of magnitude, of the eigenvalues of a correlation matrix. In case of factor
analysis or principal components analysis, a scree plot helps to visualize the relative importance of the
factors, a sharp drop in the plot signals that subsequent factors are ignorable. From the above Figure16, we can see that from 1-7 component, the slope is steep and thus they are extracted. The shallow
slope contributes little to the solution.
3.3.4 Discussion on the factors affecting employee satisfaction on Policy
Factor 1- Compensation: This factor summarizes the variables which indicate employee satisfaction
towards the compensation policy. Compensation policy refers to the basic pay received by all
employees of BBAL. There are several grades such as Admin pay group, Technical pay group, IT pay
group, BFCC pay group and BPC pay group. The variables are:
1. Compensation policy is satisfactory: This variable indicates employee satisfaction with pay
policy. BBAL pay policy enjoys steady increments and it is one the most important factor for
employees to stay happy and in working condition. The survey analysis tells us that employees
find the policy regarding pay to be highly satisfying.
2. Satisfied with monetary benefits: Other than basic pay monetary benefits include various
different types of allowances such as technical, uniform, entertainment, aviation, conveyance
etc. They also hold high satisfaction level and are necessary to keep the employees motivated.
3. Pay is fair and satisfactory: This variable reflects employees’ attitude towards their pay whether
they truly believe that they are paid the right amount for the work done. This also exhibit high
factor loading supporting its importance.
4. Satisfied with non-monetary benefits: Non-monetary benefit variable refers to the policy that
deals with non-monetary benefits mainly passage facilities and medical facilities. Passage
facilities refers to the free and low-cost air tickets BBAL provides to its employees while
medical facilities provide free and cheap treatment for employee and family. This also has a
high satisfaction score indicating its importance.
5. Retirement policy is satisfactory: This variable measure whether the employees find the
retirement policy to be satisfactory or not. Retirement policy in BBAL is given as per govt.
policy. BBAL adds the extra incentive of being able to draw all the money as whole or draw
the money on a monthly basis until the death of the employee. Provident fund is also added to
the retirement. This is also an important variable.
24
Factor 2 - Career Opportunity: In the context of BBAL this refers to promotional policy, level of
responsibility, training and exams. They are:
1. Career development opportunity is adequate: This refers to the career development opportunity
related policy of BBAL. This variable seems to exhibit a high but negative factor loading
indicating that employees somewhat disagree on the adequacy of career development
opportunities. At a glance, the reasoning can be attributed to BBAL’s tradition of making
promotions more difficult than necessary and not having a exam policy that is completely
reflective of the employee performance.
2. Promotional policy is to my liking: This variable refers to the promotional policy BBAL has to
ascend their employee to the next stage of organizational hierarchy from their current position.
This variable also seems to have drawn a negative factor loading.
3. Training policy is satisfactory: This variable represents the satisfaction of employees regarding
training policy. It is important as this is how the employees becomes ready and becomes
proficient at their job. This also exhibits a negative factor loading.
4. I appreciate the level of responsibilities: This variable measures the responsibility an employee
is assigned in accordance with his/her designation. For the employee to be most productive and
enjoy their work, they need to be provided the right amount of responsibility. The factor loading
here is also negative.
5. Promotional procedure is fair and impartial: The variable refers to the fairness and impartiality
of promotional exams and other promotional criteria that an employee must fulfill before
getting promoted. It is important that promotional procedure be fair to keep employee trust,
satisfaction, faith etc. This the only career opportunity variable that seem to have a positive
factor loading indicating favorable view.
Factor 3 – Work Life: Work life factor’s variables indicate BBAL’s policies for employees that allow
them to balance work and their personal lives. This include but are not limited to leave policy,
recuperation policy, flexibility of work, opportunities for adequate family time, job security etc. The
variables are:
1. Leave policies are adequate: This refers to the general leave policies that are provided to the
employees of BBAL. BBAL has 11 types of leaves policy (discussed in the organization
section) that are designed to relieve stress and help employees feel recharged. This variable
exhibits a positive factor loading.
2. Flexibility of work: Work flexibility is a great thing to have for employees. It helps them
manage work more easily. BBAL offers some degree of work flexibility to its operational
25
divisions but not much to the general division. Still it allows most of its employees to
meaningfully complete the task assigned without too much pressure. This variable also exhibits
a positive factor loading.
3. Emergency Leave provided when needed: This variable indicates a type of leave that is
provided in the event that leave is necessary but none is stored for the particular employee.
Also measure BBAL’s tendency of caring for it’s employees in the time of their need. This
variable has a positive factor loading.
4. I have adequate time for my family: This variable measures BBAL’s policy to care for the
family members its employees. Having adequate family time is fairly important for continuous
productivity and job satisfaction for employees. This also has a positive factor loading.
5. Recuperation policies are effective: BBAL has policies to uphold events and programs that
help in removing monotony from the lives of its employees such as annual picnic. This variable
measures the importance of BBAL’s recuperation policies in terms of employee satisfaction
and has a positive factor loading.
6. Job security policy is satisfactory: This variable indicates the highly important job security
policy. Job security is a very important aspect to give employees peace of mind and confidence
at their work. BBAL provides outstanding job security to its permanent employees. The factor
loading for this variable is also positive.
Factor 4 – Award: Award factor mainly covers BBAL’s policy for awarding it’s employee on the basis
of outstanding performance. Keeping employee satisfied with special rewards like so maintains both
satisfaction and morale. The variables are:
1. The award procedure is appropriate: This indicates the award policies of BBAL and employees’
attitude towards them. A proper award procedure in the policy can ensure continuous employee
satisfaction. Factor loading is positive for this variable.
2. I get recognition for my hard work: It is important for any organization to have policy that
recognizes the hard work of its employee. The policy for BBAL’s extends from bonus pay to
special awards and more. Factor loading is positive for this variable.
3. Award is presented in ceremony: Having a policy that gives employees prestige on a public
stage significantly improves both the satisfaction and motivation level of employees. It also
instigates healthy competition as well. Factor loading is positive for this variable.
4. Long years of service recognized by policy: Recognition for long service increases the likely
hood of employees staying and reduces the turnover rate, creates reliability and satisfaction
among employees. Factor loading is positive for this variable.
26
Factor 5 – Leadership: Leadership factor indicates the type of leadership roles the policy job
descriptions provide and general cooperation between superiors and subordinates. The variables are:
1. I am happy with my job description: The job description provides the leadership roles that an
employee might play. It is important to have a satisfactory job description.
2. Adequate opportunity for leadership is provided: The policy must provide good amount of
leadership opportunity as it can help employees excel and be happier with their job.
3. I am happy with my superiors: Being satisfied with their superiors is an important aspect for
all subordinates as it creates respect for hierarchy and brings more satisfaction in following
directions.
4. My superiors encourage me: Having encouraging and motivating superior can have positive
effect on employee job satisfaction and productivity and thus satisfaction on policy.
5. Superior and I have high level of cooperation: High level of cooperation from both sides is
paramount in creating a balanced team and overall satisfaction on such policy. All Factor
loading for the 5 variables are positive.
Factor – 6: Discipline: Discipline is one of the most important factors. It indicates the disciplinary
policies that BBAL has to keep employees safe and protect them and the company from harm. The
variables are:
1. Disciplinary policy is fair and impartial: This variable measure employee satisfaction regarding
disciplinary policy whether they believe it to be fair or not. Fairness in how an organization
operates its disciplinary measure is very important. The factor loading for this variable is
positive and high.
2. Disciplinary policy provides safety to all: The variable here measures how safe employees feel
with the current disciplinary policy. Making employees feel safe improves their satisfaction
and is a responsibility for the company as well. This also has positive and high factor loading.
3. Disciplinary policy is a deterrent for unwanted behavior: This variable measure employee
attitude about disciplinary policy working as a deterrent. It is import for the policy to be able
to prevent undesirable behavior as it provides both safety to the employee and prevents harm
to the organization. Factor loading for this is both positive and high.
27
3.4 Qualitative data
3.4.1 In depth Interview & Internship Diary
An in-depth interview was conducted with several high-ranking employees and a few female
employees. In addition to this an internship diary was also kept throughout the duration of the internship
period. The interview was conducted keeping in mind the 6 important factors and related variables in
an attempt to uncover any underlying issues and to understand how to best evaluate the HR policy. The
information from the interview and relevant internship diary information is presented below:
1. Factor one – Compensation is very positive area for the employees of BBAL as they generally
are quite content with it. There are different pay groups such as admin, technical, IT etc. Pay
enjoys steady increment and the qualitative section reflects that. One underlying issue maybe
is that certain department feel a bit unhappy due to the difference in pay group as pay group
related to more technical fields tend to pay higher compensation in general. Many feel that the
work they do is just as important for the organization, so it’d be preferable to have at least an
equal pay scale for all.
2. Factor two – Career Opportunity: Career opportunity policy seem to be something that has
received a significant negative score in the quantitative section. The researcher wanted to
understand why. It was discovered that BBAL in the past did not award employees with
promotions even though it was necessary for their development and they feel they deserved it,
more ever though it is changing in the current scenario as BBAL continuously improves its
system, still old wounds from the past exist and many feel, the change isn’t big enough and that
more need to be done. They feel that career develop opportunity is still inadequate compare to
what it should be and more needs to be done, this is evident from the fact that in recent times
and on occasions in the past BBAL has been struggling to find appropriate talent to suit it’s
needs. So, the problem is a bit of policy and a bit of lack of enactment of those policy. An
additional problem recognized in the promotional procedure is that they emphasize too much
on just an interview and not focusing more on the overall performance of an employee. Sure,
there are criteria to fulfil such as experience, education etc. but many employees feel robbed of
a promotion simply because they couldn’t answer a particular question where they are sure to
outperform their peers in the aera related to that question. So, a more dynamic 360-degree
measurement is desired.
Another problem area is training. Non-technical employees training isn’t nearly as emphasized
on as the training of technical employees. On occasion all necessary training might not even be
provided meaning that the policy is there but there is a problem of enactment. Even in the
28
technical field for example, Pilots, not all are happy with the training. Not having adequate
training facilities in BD, being in long loop for foreign training, improper decision for simulator
training are just some of problems. Though technical department is generally more emphasized
and they have to do a lot of it, there is room for improvement. In addition, there seem to be a
lack of balance in responsibility either there is too much or too little and the division of
responsibility seem to be disproportionate.
The only favorable view employee seems to find in career development is that though flawed
it is impartial. BBAL recently is becoming very transparent with all its examinations and as a
result, employees feel that they won’t be discriminated on the basis of favoritism and be given
a fair judgement.
3. Factor 3 – Work life policy: There wasn’t any significant underlying problems to be discovered
when it came to work life. Employees of BBAL are quite happy with the leave policies, family
time, recuperation, emergency leave etc. They would prefer a more flexible work option but
for the most part they are happy with how things are. The job security in BBAL is something
that everyone can agree with and loves as BBAL provided excellent job security to its employee
except for the event of it turning into a public limited but even in that case ample benefits are
provided.
4. Factor 4 – Award: Award policies of BBAL employees seem to satisfactory as well. They given
awards upon performing exceptionally such as a pilots and cabin crews landing flights in bad
weather, catching gold smuggling by security personnel or improving sales by a huge margin
etc. It given upon the boards policy and decision. However, there are no regular policy for this
to keep employees satisfied and motivated. But it still is a positive factor for employees.
5. Factor 5 – Leadership: BBAL employees seem more or less satisfied with their job description
and leadership though it is worth noting that there is not specific policy for how leadership
should be conducted other that some general guidelines provided in training.
6. Factor 6 – Discipline: Discipline is also an area where employees are generally satisfied. There
are five stages of disciplinary actions discussed in the organization part. Though employees are
happy many including the female employees feel that their specific needs aren’t catered to such
as for example harassment issues. Though there has never been a huge issue regarding
harassment, it has an appalling act. Many feel that the punishment procedure for this type of
action is simply too small often limited to only being Censored where as everyone has the right
to feel absolutely safe and secure in their place of work as a result many believe that a more
drastic measure of punishment needs to be taken and policy change is needed for specific
offenses rather than sticking to the same formula.
29
Chapter 4: Findings & Recommendations
4.1 Findings:
1. As Designation, experience and salary increases, so does the satisfaction level of employees
with BBAL’s policies. It seems when employees start out not all them makes high income and
being new to their work and environment high levels of respect, recognition etc. isn’t there but
as they grow in designation, experience, high income and other facilities follow in accordance
with policy as such their satisfaction regarding policy seem to increase. BBAL has a very good
policy when it comes to compensation, increments, retirement etc. Salary seem to be a vary
satisfying factor for the employees as it seems to be highest in satisfaction score. As according
to an anonymous employee, “We feel deprived and unimportant at the starting point of our
careers due to relatively lower income but we work hard and grow, we feel more and more
rewarded through various levels of increase in our compensation and facilities. The highest
satisfaction level seems to come from experience as BBAL is very generous with it, retirement
and increase in benefit as employee become more experienced.
2. Although satisfaction levels regarding various departments need more research, we can still
see a pattern where some departments such as Flight operations, Engineering having more
satisfaction than others. This is due to departments having different pay scales and allowances
that are greater than others. While it’s natural that different departments will have different
types of allowances some employees do feel like that the higher basic pay scale of certain
departments makes them feel like they are work is less important than others while in reality
all departments of BBAL contribution to the betterment of the organization and it will not
function without any of it.
3. The satisfaction level regarding gender shows that males seem to have slightly more
satisfaction regarding the job. The main reason behind it seem to be an overwhelming number
of males compared to their female counter parts. Only 23% of the organizational employees
are female with even far less in high positions as a result policy doesn’t take all of their nuanced
needs into consideration though a lot of needs such as maternity leave and other privileges are
given. The percentage also may not reveal the true satisfaction level as over 55% of the flight
crew are female and very few of them were a respondent in this survey.
30
4. When looking at the variables we can see that job security, satisfaction with monetary benefits
and leave policy rank the highest as BBALs HR policy offers an excellent package for all of
them on the other hand looking at the lower end of the spectrum we can see things like career
development opportunities, promotional policy, level of responsibility and training policy.
More most variables of career opportunity, it is evident that it experiences less satisfaction.
Largely due to things likes non-technical department not getting enough training, some
employees not wanting to do them or finding them too much – so disproportionate emotions,
old wounds regarding not getting deserved promotions and new policies regarding promotions
not being perceived as good enough. Then there are also other reasons like dissatisfaction with
the way promotional interview is conducted, not having a 360 degree exam process and finally
disproportionate division of responsibilities where people of different designations are stuck
doing more work than others even though it’s not part of their job description, though that’s
more of a practice problem than a policy problem. So, for these reasons there seem to be a
lesser degree of satisfaction in this area than others.
5. Looking at the disciplinary policy we can see that the majority of employees are satisfied with
it but the in-depth interviews reveal that some employees feel like the punishment procedure is
one dimensional and things like harassment or violence are not given a higher degree of
punishment than it should. So, more diversity and multi-dimensional nature is expected when
it comes to disciplinary policy but for the most part, employees find it satisfactory and feel safe
with it.
6. In terms of leadership, though BBAL’s employees are satisfied with it, it seems there no
specific policy or measures to train upcoming leaders of this company advance leadership
tactics. As most of the time how a superior lead is entirely up to him/her which is fine but
sometimes some employees maybe treated unfairly due to the whims of a superior as result a
policy guideline might be necessary here.
4.2 Recommendations:
1. BBAL should play to its strengths and keep strong where it is already strong. Things like job
security, award & recognition, compensation & monetary and non-monetary benefits should
be kept as it is in their policy and further improved for the future and most importantly the
practice has to be there. BBAL should incorporate policy measure that include strict
31
supervision by the higher authorities as to whether the policy is being properly implemented or
not. One of biggest reason why people in BD choose govt. or in the case of BBAL, govt.
sponsored jobs is because of their security, benefits, compensation etc. BBAL should thus keep
this trend going high.
2. In terms of the training and different departments, BBAL should perform a comprehensive ROI
on training and departments and determine how much each of these factors are contributing to
overall progress of the organization and adjust its training policies for each department so that
no one feels over or undertrained. Furthermore, they can have policies for newer versions of
training which introduce new methods of training that employees may not find monotonous or
hard rather look forward to it, perhaps even hold seminars explaining the benefits of how
training can help them in their career.
3. BBAL should diversify non-technical departments and give them new ways of contributing to
the organization, introduce new type of allowances so that they don’t feel left out or less
satisfied and thus less motivated to work for the organization. One such thing could be the
introduction of the policy of mission bonus where they’d be paid for achieving certain
milestones in certain goals determined by the organization which benefits the organization as
well. Pay scale should also be equalized in policy and different allowances introduced in their
stead as this would give the lower scaled departments a sense of equality and the notion that
BBAL truly cares about them.
4. Promotion policy need to be looked at. Currently, BBAL is suffering from employee shortages
they use this opportunity to improve both themselves and their employees. Finding a newer
and more capable pool of talents and promoting the existing capable ones, giving them
balanced responsibilities that benefits them and the organization. Healing old wounds should
be a priority. BBAL already has some training policies on way, they are opening educational
institutions for aviation with the air force, this a step in the right direction and BBAL needs to
ensure that better training policies regarding these facilities and in general is produced and
implemented. The promotional policy has more of a practice problem then just policy, so
ensuring that it’s practices and people get recognized in the context of promotions is very
important and specially they should overhaul the way they take promotional exams. In addition
to the criteria that is already set, they should implement an exam policy that is more than just
an interview and is a 360 degree evaluation of employees in various metrics and a recognition
32
of their job performance and how well they actually perform on the field rather than just in the
interview board.
5. Diversifying their employees such as introducing more female employee so the job place and
giving them more higher positions so that workplace doesn’t feel dominated and everyone has
an equal voice. Diversification always proves to be the best for modern organizations and
BBAL should follow through,
6. BBAL should introduce a policy guideline for leadership and provide training specifically on
leadership to produce the most capable leaders for the next generation.
7. BBAL should introduce a regular milestone award for better performance as the current award
policy is done on the whim of the committee and is more of a spot bonus than something fairly
regular. A fairly regular policy is sure to boost employee morale and performance.
4.3 Conclusion:
In conclusion, BBAL’s employees for the most part is satisfied with its HR policies. It’s compensation,
benefits, job security etc. are some of its strongest fronts. Still there is always room for improvement
and some pretty good improvement regarding these policies can be made as stated in the
recommendations. Furthermore, we find some problem area in the case of BBAL, particularly in the
career opportunity segment where we can see that it needs to implement significant policy changes in
its training, promotional policy (though in recent times they have been improving), division of
responsibilities, promotional exams etc. On the other hand, diversifying its employees, introducing
more female employees, giving them higher designation are all good ideas as well. In the modern era,
companies are becoming more and more employee friendly, catering to their needs and in return they
receiving strong ROI for their investment and care for the employees. A satisfied employee is a
productive and highly motivated employee and BBAL as the national flag carrier should have the most
satisfied employees ready to deliver the best performance for both the organization and the nation. To
end, BBAL has a pretty well-done HR policy and with some improvements it can be a marvelous one.
33
Reference:
•
Spector, P.E., Job satisfaction: Application, assessment, causes, and consequences, London:
Sage, 1997
•
Locke, E.A., ‘The Nature and Causes of Job Satisfaction’. In Dunnette, M.P. (Ed.) Handbook of
Industrial and Organizational Psychology, Chicago: Rand McNally, 1976, pp. 1297-1350
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A Sajeevan Rao and R K Sharma (2010), Bank Selection Criteria Employed by MBA Students
in Delhi: An Empirical Analysis, Journal of Business Studies Quarterly, Vol. 1, No. 2
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Amabile, T. M., Hill, K. G., Hennessey, B. A., and Tighe, E. M. (1994). The Work Preference
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2018),
Two-factor
theory.
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34
on
Appendix:
Questionnaire:
A. Demographic Profile
Designation:……………………………..
Gender: Male
Department:………………..…………………
Female Years of experience with BBAL: ………….
Salary(Approximately):
10,000-40,000
40,000-70,000
70,000 - 100000
More than 100000
B. Put (✓) on which you prefer between 1-5 scale (Strongly Disagree-Strongly Agree):
Compensation
Strongly
Disagree
1
Statements
Disagree
2
Agree
4
Strongly
Agree
5
Neutral Agree
3
4
Strongly
Agree
5
Neutral
3
Compensation policy is
satisfactory
Satisfied with the monetary
benefits
Pay is fair and corresponds with
job security
Satisfied with the non-monetary
benefits
Retirement policy is satisfactory
Career
Opportunity
Statements
Strongly
Disagree
1
Career development opportunities are
adequate
Promotional policy is to my liking
Training policy is satisfactory
I appreciate the level of responsibility
Promotional procedure is fair and
impartial
35
Disagree
2
Work Life
Statements
Strongly
Disagree
1
Disagree
2
Neutral
3
Agree
4
Strongly
Agree
5
Leave policies are adequate
I have flexibility of work
Emergency leave is provided when
needed
I have adequate time for my family
Recuperation policies are effective
Job security policy is satisfactory
Award
Statements
Strongly
Disagree
1
Disagree
2
Neutral
3
Agree
4
Strongly
Agree
5
Neutral
3
Agree
4
Strongly
Agree
5
The award procedure is appropriate
I get recognition for my hard work
Award is presented in ceremony
Long years of service is recognized by
policy
Leadership
Statements
Strongly
Disagree
1
I am happy with my job description
Adequate leadership opportunity is
provided
I am happy with my superiors
My superiors encourage me
Superior and I have high level of
cooperation
36
Disagree
2
Discipline
Statements
Strongly
Disagree
1
Disciplinary policy is fair and impartial
Disciplinary policy provides safety to all
Disciplinary policy is a deterrent for
unwanted behavior
37
Disagree
2
Neutral Agree
3
4
Strongly
Agree
5
Rotated Component Matrixa
1
2
0.728581 0.232558
0.718744 0.33868
0.708014 0.487042
0.582872 0.687575
0.723
0.122
Compensation policy is satisfactory
Satisfied with the monetary benefits
Pay is fair and corresponds with job security
Satisfied with the non-monetary benefits
Retirement policy is satisfactory
Career development opportunities are
-0.17484
adequate
Promotional policy is to my liking
-0.16254
Training policy is satisfactory
-0.17841
I appreciate the level of responsibility
-0.09349
Promotional procedure is fair and impartial
0.073088
Leave policies are adequate
0.157988
I have flexibility of work
0.180526
Emergency leave is provided when needed
0.178019
I have adequate time for my family
0.137655
Recuperation policies are effective
0.22616
Job security policy is satisfactory
0.211741
The award procedure is appropriate
0.250708
I get recognition for my hard work
0.302747
Award is presented in ceremony
0.372752
Long years of service is recognized by policy
0.520561
I am happy with my job description
-0.10715
Adequate leadership opportunity is provided
-0.01604
I am happy with my superiors
0.143388
My superiors encourage me
0.15024
Superior and I have high level of cooperation
0.184719
Disciplinary policy is fair and impartial
-0.0757
Disciplinary policy provides safety to all
-0.06053
Disciplinary policy is a deterrent for unwanted
-0.07475
behavior
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 13 iterations.
Component
3
4
5
6
0.084158 -0.00688 0.147926 0.142188
0.043479 0.235296 0.026652 0.054388
0.178841 0.228127 0.02602 0.007866
0.120964 0.200095 0.112564 0.034936
0.096034 0.407269 0.19512 0.013903
-0.80748
-0.18004
-0.15155
-0.32113
-0.03568
-0.81743
-0.76305
-0.69941
0.628225
0.162404
0.440937
0.3328
-0.00898
0.197552
0.176509
0.422026
0.198365
0.130439
0.223798
0.247894
0.204545
-0.14886
-0.10844
-0.05671
0.360965
0.357646
-0.20564
-0.2506
-0.21674
0.196762
0.648
0.554
0.576136
0.821528
0.771539
0.637828
0.053347
-0.0117
0.032252
0.082895
0.593731
0.49035
0.317409
0.282956
0.27922
0.112237
0.114937
-0.13711
-0.06494
0.01693
0.03516
0.3539
0.224514
0.140358
0.043692
0.189701
0.401391
0.592154
0.727676
0.723476
0.65184
0.049428
0.106076
0.213561
0.192246
0.194803
0.158211
0.162567
-0.22864
-0.33481
-0.31495
0.234919
0.091566
0.032315
0.123971
0.127809
0.189242
-0.00881
0.125116
0.188537
0.202092
0.04586
0.599149
0.71028
0.816635
0.823357
0.793087
0.014859
0.06992
-0.12111
-0.27612
-0.49551
0.578196
0.486
0.454
0.245136
-0.01327
0.23663
0.043659
0.012088
-0.01439
0.133269
0.048631
0.086898
0.207728
0.202499
0.222567
0.209543
0.852759
0.860643
0.355943 0.119644 0.134052 0.016601 0.861376
38
Total Variance Explained
Extraction Sums of Squared
Loadings
Initial Eigenvalues
Rotation Sums of Squared
Loadings
Total
12.812
% of
Variance
45.756
Cumulative %
45.756
Total
12.812
% of
Variance
45.756
Cumulative
%
45.756
Total
5.993
% of
Variance
21.402
Cumulative
%
21.402
2
4.065
14.520
60.275
4.065
14.520
60.275
5.400
19.285
40.687
3
1.946
6.951
67.227
1.946
6.951
67.227
3.216
11.487
52.174
4
1.196
4.273
71.499
1.196
4.273
71.499
3.213
11.474
63.648
5
1.134
4.048
75.548
1.134
4.048
75.548
2.591
9.252
72.900
6
1.021
3.646
79.194
1.021
3.646
79.194
1.762
6.294
79.194
7
0.791
2.824
82.018
8
0.700
2.499
84.517
9
0.587
2.098
86.615
10
0.545
1.948
88.563
11
0.456
1.629
90.192
12
0.395
1.412
91.604
13
0.337
1.203
92.808
14
0.296
1.056
93.863
15
0.270
0.965
94.829
16
0.236
0.842
95.670
17
0.227
0.811
96.481
18
0.176
0.628
97.109
19
0.134
0.478
97.587
20
0.119
0.423
98.011
21
0.107
0.381
98.392
22
0.103
0.368
98.759
23
0.079
0.280
99.040
24
0.078
0.277
99.317
25
0.067
0.240
99.557
26
0.052
0.185
99.742
27
0.043
0.154
99.896
28
0.029
0.104
100.000
Component
1
Extraction Method: Principal Component Analysis.
39
Item Statistics
Compensation policy is satisfactory
Satisfied with the monetary benefits
Pay is fair and corresponds with job security
Satisfied with the non-monetary benefits
Retirement policy is satisfactory
Career development opportunities are adequate
Promotional policy is to my liking
Training policy is satisfactory
I appreciate the level of responsibility
Promotional procedure is fair and impartial
Leave policies are adequate
I have flexibility of work
Emergency leave is provided when needed
I have adequate time for my family
Recuperation policies are effective
Job security policy is satisfactory
The award procedure is appropriate
I get recognition for my hard work
Award is presented in ceremony
Long years of service is recognized by policy
I am happy with my job description
Adequate leadership opportunity is provided
I am happy with my superiors
My superiors encourage me
Superior and I have high level of cooperation
Disciplinary policy is fair and impartial
Disciplinary policy provides safety to all
Disciplinary policy is a deterrent for unwanted behavior
THANK YOU
40
Mean
4.066667
4.1
4.008333
3.958333
3.95
2.616667
2.541667
2.466667
2.475
3.616667
4.083333
3.816667
4.041667
4.025
3.941667
4.175
3.791667
3.816667
3.975
3.866667
3.808333
3.8
4.033333
4.066667
4.041667
3.608333
3.641667
3.666667
Std.
Deviation
0.9850422
1.0563931
1.1264269
1.1331212
1.0439904
1.3852969
1.3466163
1.3024433
1.3090666
1.2845778
1.0578505
1.2160228
1.072152
1.0726743
1.1098931
0.9672147
1.2359859
1.2021223
1.1111543
1.1877055
1.1544276
1.1994396
1.0606272
1.0430509
1.05636
1.2318998
1.2284843
1.2790052
N
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120
120