Quality of working life in the banking sector

Int. J. Business Innovation and Research, Vol. X, No. Y, xxxx

Quality of working life in the banking sector: an experimental analysis conducted in Brazil Mara Regina dos Santos Barcelos* and André Luís Policani Freitas* State University of North Fluminense, Production Engineering Laboratory, Av. Alberto Lamego, 2000, Parque Califórnia, Campos dos Goytacazes/RJ, Brazil E-mail: [email protected] E-mail: [email protected] *Corresponding authors Abstract: The present study presents an experimental analysis of the quality of working life (QWL) in the banking sector, which was implemented in a municipality of the state of Rio de Janeiro, Brazil. A hybrid QWL evaluation model was used based on existing models and studies in the literature, incorporating current characteristics of the banking industry. The data analysis indicated that the model was valid and reliable. Cronbach’s α was used to measure the model reliability; quartile analysis was used to determine the most critical issues; and the distribution frequency was used to describe the respondents’ profiles. Keywords: quality of working life; QWL; banking sector; reliability; Brazil. Reference to this paper should be made as follows: Barcelos, M.R.d.S. and Freitas, A.L.P. (xxxx) ‘Quality of working life in the banking sector: an experimental analysis conducted in Brazil’, Int. J. Business Innovation and Research, Vol. X, No. Y, pp.000–000. Biographical notes: Mara Regina dos Santos Barcelos is an MSc student in Production Engineering at State University of North Fluminense. She is graduated in Software Development Technologist (Federal Fluminense Institute). Her consulting and research interests are quality of working life, service quality, and software quality. André Luís Policani Freitas holds a PhD in Production Engineering (State University of North Fluminense). He is an Associate Professor at the Production Engineering Laboratory at State University of North Fluminense, RJ, Brazil. His consulting and research interests are service quality, consumer satisfaction, quality of working life, multiple criteria decision aid, and process analysis.

Copyright © 200x Inderscience Enterprises Ltd.

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M.R.d.S. Barcelos and A.L.P. Freitas

Introduction

Quality management is becoming one of the most significant areas in a company. The quality of working life (QWL) has become important in the context of the growing need to reconcile the interests of individuals and organisations by ensuring the health and welfare of workers performing their professional activities. Noor and Abdullah (2012) have highlighted the importance of QWL for organisations and society. The subject has also attracted interest from businessmen and managers in Brazil (Limongi-França, 2008). A similar scenario is found in the banking sector, where changes in the sector have caused activities performed by employees to become repetitive and stressful. Furthermore, recent studies have uncovered such issues as high turnover in the sector (DIEESE, 2010), high numbers of workplace accidents (IBGE, 2010), and a significant amount of sick pay benefits (IBGE, 2010) that highlight the need for evaluating QWL in the banking sector. QWL has been a research subject in many studies over the years, such as those by Walton (1973), Hackman and Oldham (1975), Westley (1979), Werther and Davis (1983), Sirgy et al. (2001) and Zhu and Long (2008). However, these studies and models have evaluated QWL in a general way, often not addressing aspects related to the characteristics of the respective activities and the technological advances that have emerged to keep pace with contemporary life. Several QWL studies have focused on the banking sector, such as Leblebici (2012), Tabassum et al. (2011) and Duarte et al. (2010) due to the importance of the sector, which is part of the tertiary sector of the economy and has represented more than 60% of the gross domestic product (GDP) (IBGE, 2010) in recent years. However, it is clear that studies to evaluate QWL in the banking sector are still in the early stages, and there is no consensus on which dimensions and indicators are most appropriate for evaluating QWL in this sector. Leblebici (2012) conducted a study in a foreign private bank in Turkey to evaluate the impact of workplace quality on the productivity of banking sector employees. The author concluded that while the work environment affected the employee performance to a certain extent, behavioural factors had a greater effect on employee performance because the research results showed that the employees could be unhappy with the physical conditions of the workplace while being satisfied with the behavioural working conditions. Tabassum et al. (2011) conducted a study on private commercial banks in Bangladesh that revealed significant differences in QWL between men and women; the study suggested that banks should attempt to reduce these differences by offering equal terms to employees of both genders. The authors used a questionnaire with 49 items for a sample of 192 respondents. Duarte et al. (2010) concluded that QWL strongly influenced the personal lives of bank employees and also interfered with employee productivity. These conclusions were drawn from a study on a public bank in Brazil with a QWL programme to which 90% of the employees adhered. The authors did not use a specific model but measured employee perception of the existing programme for a sample of 45 respondents. Barcelos and Freitas (2012) proposed a hybrid evaluation model of QWL in the banking sector. This model was developed by considering existing models along with current aspects of the activities of the sector. The present study contributes to QWL research in the banking sector by reporting the results obtained from an experimental analysis of the model proposed by

Quality of working life in the banking sector

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Barcelos and Freitas (2012) that was implemented in a municipality of the state of Rio de Janeiro, Brazil with employee participation from five of the seven banking institutions located in the municipality.

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Characteristics of the banking sector

The banking sector consists of institutions that can be classified in several ways. The Brazilian Federation of Banks (Febraban, 2012) uses three classifications: type, origin and nationality. In 2009, the banking sector consisted of 158 banks operating in the country (Febraban, 2009). This sector has undergone changes since the 1930s, both in terms of how tasks are performed and of how services are provided. Jinkings (1995, apud Laranjeira, 1993) found that four phases have clearly demarcated the evolution of banking work from the 1930s to the present. Cernev et al. (2009) addressed one of the most striking aspects of these changes, technological innovation. Furthermore, research shows that there is high turnover in this sector (DIEESE, 2011), as shown in Figure 1. Figure 1

Banking sector turnover

Source: DIEESE (2010, 2011)

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Quality of working life

Appreciation of the human factor has been growing in companies over recent years, resulting in the increased importance of QWL due to changes in the workplace and employment. The QWL concept emerged in 1959 and has subsequently undergone changes. NADLER and LAWLER, 1983) have described the evolution of QWL in terms of six concepts (see Table 1).


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Evolution of the QWL concept

Evolving QWL concepts

Characteristics or views

QWL as a variable (1959 to 1972)

Individual’s reaction to work; research on how to improve QWL for the individual.

QWL as an approach (1969 to 1974)

Focus was on the individual, rather than on the effect on the organisation, while seeking to simultaneously affect improvements for the employee and management.

QWL as a method (1972 to 1975)

A set of approaches, methods, and techniques for improving the workplace and making work more productive and satisfying.

QWL as a movement (1975 to 1980)

Ideological statement about the nature of work and employee relations with the company; participative management or industrial democracy.

QWL as everything (1979 to 1982)

QWL as a panacea against foreign competition, quality problems, low productivity rates, and complaints.

QWL as nothing (future)

In case any QWL projects fail in the future, QWL will be considered to be nothing but a temporary ‘fad’.

Source: Nadler and Lawler (1983)

3.1 Models for evaluating QWL Several models have been developed to identify the factors that affect QWL. A summary of the main models in the literature is presented below in Table 2. These models were used in the model developed by Barcelos and Freitas (2012). Table 2

Summary of QWL evaluation models

Authors

QWL evaluation characteristics

Walton (1973)

Establishes eight criteria related to economic, political and social factors.

Hackman and Oldham (1975)

Establishes three critical psychological stages for five basic work dimensions.

Westley (1979)

Establishes four categories of problems that can occur in the workplace: injustice, insecurity, alienation, and anomie.

Werther and Davis (1983)

Establishes three groups of elements: organisational, environmental, and behavioural.

Sirgy et al. (2001)

Evaluates QWL in terms of seven human needs that are divided into two orders: higher (social, self-actualisation, knowledge, ethics, and esteem) and lower (health, economic security, and family).

Zhu and Long (2008)

Evaluates QWL in terms of five characteristics of the work experience (position and remuneration; safety and comfort in the workplace; leisure activities; interpersonal harmony and characteristics of the work itself).

Source: The authors

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Description of the model proposed by Barcelos and Freitas (2012)

To develop an evaluation model for QWL in the banking sector, existing QWL evaluation models in the literature were surveyed to obtain research development subsidies. Table 3 shows the dimensions and subdimensions that have been proposed by


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Barcelos and Freitas (2012). Several subdimensions were added to the dimensions of working conditions and work characteristics to make the tool more comprehensive. Table 3

Dimensions of the QWL evaluation model

Dimensions and subdimensions of the proposed model 1

2

3

4

5

Constitutionalism 1.1

Labour rights

1.2

Equal treatment

1.3

Freedom of expression

1.4

Privacy

Working conditions 2.1

Daily work schedule

2.2

Available resources (quantity and quality)

2.3

Workplace conditions (area, temperature, etc.)

2.4

Concern for health (health examinations, work activities)

2.5

Levels of turnover (jobs)

2.6

Levels of rework

2.7

Ergonomics

2.8

Level of stress caused by work activities

2.9

Requirement of meeting goals

2.10

Accessibility

Work characteristics 3.1

Meaning of the task (relevance)

3.2

Autonomy

3.3

Feedback received

3.4

Variety of skills

3.5

Necessity of learning several technologies

3.6

Necessity of knowing internal routines from other sectors

3.7

Difficulty in assimilating new tasks

3.8

Number of tasks employee is responsible for

3.9

Self-esteem (satisfaction)

Relationship between work and personal life 4.1

Amount of overtime

4.2

Personal time

4.3

Time spent with family

Remuneration policies 5.1

Equal wages (internal and external)

5.2

Fair and appropriate remuneration Source: Adapted from Barcelos and Freitas (2012)

References Walton (1973) and Westley (1979)

Walton (1973), Westley (1979), Zhu and Long (2008) and Sirgy et al. (2001)

Hackman and Oldham (1975), Westley (1979), Werther and Davis (1983) and Zhu and Long (2008)

Walton (1973), Sirgy et al. (2001) and Zhu and Long (2008) Walton (1973), Westley (1979), Sirgy et al. (2001) and Zhu and Long (2008)


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Dimensions of the QWL evaluation model (continued)

Dimensions and subdimensions of the proposed model Social integration

6

7

8

9

6.1

Absence of prejudice

6.2

Relationships (with supervisors, subordinates, and peers)

6.3

Company’s concern in integrating employees

Stability 7.1

Recognition

7.2

Reward policies for length of employment

7.3

Level of turnover (admissions and layoffs)

Professional growth 8.1

Incentives for training

8.2

Career plan

Social relevance of the work 9.1

Importance of work in life

9.2

Company’s image in society

9.3

Sense of pride regarding the company

References Walton (1973), Hackman and Oldham (1975); Westley (1979), Sirgy et al. (2001) and Zhu and Long (2008) Walton (1973), Westley (1979) and Zhu and Long (2008)

Walton (1973) and Zhu and Long (2008)

Walton (1973), Hackman and Oldham (1975), Sirgy et al. (2001) and Zhu and Long (2008)

Source: Adapted from Barcelos and Freitas (2012)

Barcelos and Freitas (2012) developed a tool based on the dimensions and subdimensions defined above, which was divided into three blocks to evaluate QWL in the banking sector. The model that was initially proposed by Barcelos and Freitas (2012) consisted of 39 questions. However, the model was changed and consisted of 47 questions when it was used in the experimental analysis. In addition, a space was added for the respondent to include items that should be evaluated if necessary. •

Block I (respondent identification): This block of questions identifies the characteristics and profile of the respondents. Examples of questions used in this block address the company in which the respondent works, age, gender, length of employment in the banking sector, initial and current education level, and job function.

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Block II (evaluation of QWL): The questionnaire contains 47 questions, divided into nine dimensions plus one question, as shown in Table 4. The respondent describes his/her degree of satisfaction for each question using a value scale ranging from 0 (very dissatisfied) to 10 (very satisfied). The options ‘(N/A) – not applicable’ and ‘(N/U) – I did not understand’ can be used by the respondent if the question is not relevant to the job the respondent performs or if the question is not clear, respectively.

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Block III (Feedback and/or suggestions): This block contains space for comments, feedback, and suggestions for improvement by the respondent.

Quality of working life in the banking sector Table 4

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Distribution of questions by dimension

Dimensions

Questions

D1

Q1 to Q4

Constitutionalism

D2

Working conditions

Q5 to Q18

D3

Work characteristics

Q19 to Q27

D4

Relationship between work and personal life

Q28 to Q31

D5

Remuneration policies

Q32 to Q34

D6

Social integration

Q35 to Q39

D7

Stability

Q40 to Q42

D8

Professional growth

Q43 to Q44

D9

Social relevance of the work

Q45 to Q47

Additional question

Q48

Source: Adapted from Barcelos and Freitas (2012)

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Experimental analysis

The present study implemented a model proposed by Barcelos and Freitas (2012) to evaluate QWL in the banking sector. The analysis was conducted during the period from 06/22/2012 to 07/03/2012 in collaboration with the Bank Employees Union of a municipality in the state of Rio de Janeiro, Brazil. A total of 41 employees from five different banking institutions participated in this analysis. The average time used to complete the questionnaire was 21 minutes. One questionnaire was discarded, resulting in a total of 40 valid questionnaires. The sample is considered to be non-probabilistic for convenience because the selection of respondents was not random (Malhotra, 2006). A respondent received the questionnaire, completed it, and returned it at a later time. These steps were necessary due to the nature of the respondent’s activities. It is important to note that the questionnaire, along with a cover letter that explained the purpose and importance of the survey, was given to the respondent in a sealed envelope to maintain the confidentiality of the responses. The results obtained from the experimental analysis were characterised using frequency distribution, Cronbach’s α, and quartile analysis.

5.1 Block I data analysis The data from Block I of the questionnaire show that 50% of the respondents are female, and 50% are male; 60% of the respondents are married. In addition, 42.5% initially held an office clerk position, and 20% have more than 30 years of experience working in the banking sector. In addition, 97.5% of respondents only have a Consolidation of Labour Laws (CLL)-type contract, and 57.5% have a workload of 40 hours per week. Only 12.5% are currently attending school, and 97.5% do not have some sort of handicap or special need (SN). A total of 42.5% have completed a college degree, and only 5% have a second job. Table 5 shows the frequency distribution of the data.

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Table 5

Respondents’ data profiles

Gender

%

Current education level

%

Length of time in sector

%

Female

50.0

Elementary school

0.0

Less than 2 years

5.0

Male

50.0 High school (not completed)

Marital status

2.5

2 to 5 years

12.5

High school

20.0

6 to 10 years

10.0

Undergraduate (not completed)

12.5

11 to 15 years

5.0

Undergraduate

42.5

16 to 20 years

10.0

Graduate school

10.0

21 to 25 years

15.0

Not specified

12.5

25 to 30 years

17.5

More than 30 years

20.0

Not specified

5.0

%

Special needs

%

Currently attending school

%

Single

20.0

Yes

0.0

Yes

12.5

Married

60.0

No

97.5

No

85.0

Divorced

7.5

Not specified

2.5

Not specified

2.5

Separated

2.5

Widow

5.0

Other

5.0

Type of contract

%

Initial job

%

Other occupation (prof.)

%

CLL

97.5

Cashier

25.0

Yes

5.0

Public servant

0.0

Office clerk

42.5

No

95.0

Not specified

2.5

Office-boy

7.5

Others

25.0

Schedule

%

30 h weekly

35.0

40 h weekly

57.5

45 h weekly

2.5

Not specified

5.0

Source: The authors

5.2 Block II data analysis Block II contained questions for QWL evaluation in the banking sector, in which the respondent described his degree of satisfaction in response to the questions. The questionnaire’s reliability was measured by Cronbach’s (1951) α coefficient. As all the questions had the same measurement scale, the α coefficient (with values ∈ [0, 1]) was calculated from the variance of the questions and the covariance between the questions.


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Equation (1) provides the formula for calculating Cronbach’s α, where k represents the number of questions in each dimension, Sq2 represents the variance of each question, and St2 represents the total variance for each dimension. k ⎛ Sq2 ⎛ k ⎞⎜ α=⎜ ⎜ ⎟ i =1 ⎝ k − 1 ⎠ ⎜1 − St2 ⎝

∑

⎞ ⎟ ⎟ ⎟ ⎠

(1)

Freitas and Rodrigues (2005) have reported that Cronbach’s α is one of the most commonly used statistical procedures for measuring the reliability of a data-collecting tool. These authors also suggested a reliability rating based on Cronbach’s α, as shown in Table 6, because there is no consensus on the interpretation of Cronbach’s α in academia. Reliability based on Cronbach’s α

Table 6 Reliability

Very low

Low

α value

α