CHAPTER I

INTRODUCTION
1.1 Background of the Study

Productivity is a measure of the quantity and quality of work done,

considering the cost of the resources used. The more productive an organization is,
the better its competitive advantage. This is because of the efficiency of the resources
that have been used. Results are usually the final and specific outputs desired from the
employee. They may be in terms of financial accomplishments, impact on a
community; and so whose results are expressed in terms of cost, quality, quantity or
time. Measuring productivity involves determining the length of time that an average
worker needs to generate a given level of production. It could also be the amount of
time that a group of employees spends on certain activities such as production, travel,
or idle time spent waiting for materials or replacing broken equipment. The method
can determine whether the employees are spending too much time away from
production on other aspects of the job that can be controlled by the business (Mathis
& Jackson, 2003).
Employee productivity may be hard to measure, but it has a direct effect on a
company's profits. An employer fills his staff with productivity in mind and can get a
handle on a worker's capabilities during the initial job interview. Yet, there are several
factors on the job that help maximize what an employee does on the job. Perhaps none
of the resources used for productivity in organizations are so closely scrutinized as the
human resources. Many of the activities undertaken in an HR System are designed to
influence individual or organizational productivity. Pay, appraisal systems, training,
selection, job design and compensation are HR activities that are directly concerned
with productivity. Furthermore, controlling labour costs and increasing productivity
through the establishment of clearer linkages between pay and performance are
deemed to be crucial component of human resource management (HRM) so as to
achieve competitive advantage. In addition, increased concerns over productivity and
meeting customer requirements have prompted renewed interest in methods designed
to motivate employees to be more focused on meeting (or exceeding) customer
requirements and increasing productivity (Bernardin, 2007).

1
 Performance can be described as an umbrella term for all concepts that
consider the success of a firm and its activities. Performance can refer to actual
results/outputs of certain activities, how an activity is carried out, or an ability to
achieve results (Tangen, 2005). Atkinson (2012) defined performance as the
achievement of results ensuring the delivery of desirable outcomes for a firm‘s
stakeholders. Awino (2011) asserts that for an organization to be successful it has to
record high returns and identify performance drivers from the top to the bottom of the
organization. Njihia et al. (2013) highlight performance measurement as one of the
tools which help firms in monitoring performance, identifying the areas that need
attention, enhancing motivation, improving communication and strengthening
accountability. Performance is equivalent to the famous 3Es, that is, economy,
efficiency and effectiveness of a certain program or activity (Javier, 2007).
Ittner and Larcker (2009), claim that a firm‘s performance should not be
measured by financial performance but also operational and market indicators. Non-
financial measures have been deemed to be more effective in motivating managerial
performance because they are more reflective of the overall corporate strategy.
Organizational performance is the organization's ability to attain its goals by using
resources in an efficient and effective manner. Organizational performance is the
ability of the organization to achieve its goals and objectives. Performance can be
assessed based on information obtained through primary resources or secondary
resources. In general, performance can be measured taking into consideration two
types of performance: financial performance and non-financial performance (Jarad,
2010).
Organizational performance of a commercial bank refers to the overall
effectiveness and efficiency with which the bank achieves its strategic goals, delivers
services and sustains profitability in a competitive financial environment. It
encompasses multiple dimensions such as financial performance (e.g., return on
assets, return on equity), customer satisfaction, operational efficiency, market share,
employee productivity and innovation. In commercial banks, organizational
performance is often measured by indicators like loan recovery rates, non-performing
asset levels, transaction volumes, service quality and adherence to regulatory
compliance. High organizational performance reflects the bank's ability to manage
risks, optimize resource use and maintain customer trust while ensuring long-term

2
growth. It is influenced by both internal factors such as human resource capabilities,
technology use and management strategies and external factors like economic
conditions and regulatory changes. Ultimately, strong organizational performance
ensures sustainability, competitiveness and value creation for stakeholders in the
banking sector (Kaplan & Norton, 2016).
Employee productivity significantly affects the organizational performance of
commercial banks by influencing service quality, operational efficiency and customer
satisfaction. Key factors such as skill level, job knowledge, work experience, task
efficiency and innovation capacity play a vital role in this impact. Skilled employees
with deep job knowledge can handle complex banking operations accurately and
efficiently, reducing errors and enhancing client trust. Work experience contributes to
effective problem-solving and decision-making, especially in high-pressure financial
environments. Task-efficient employees complete responsibilities swiftly and with
precision, directly improving service delivery and operational speed. Additionally,
employees with strong innovation capacity contribute to process improvements and
the development of digital banking solutions, helping banks remain competitive and
adaptable in a changing market. Together, these productivity components lead to
higher profitability, better risk management and sustainable growth, demonstrating a
strong link between employee productivity and overall organizational success in
commercial banking (Oluwatayo & Akinlabi, 2022).
Employee productivity is a pivotal determinant of organizational performance
in commercial banks. Factors such as skill level, job knowledge and work experience
significantly influence how effectively employees execute their responsibilities. High
skill levels enable employees to perform tasks efficiently while comprehensive job
knowledge ensures informed decision-making. Moreover, accumulated work
experience contributes to better problem-solving abilities and adaptability, enhancing
overall productivity (Joshi, 2024).
There are various factors of employee productivity which effect on
organizational performance of commercial banks. Some of these are as follows:
Work efficiency refers to the ability to complete tasks accurately and promptly
while minimizing resource use such as time, effort and cost (Mathis & Jackson,
2011). It reflects how effectively employees utilize their skills to achieve desired
outcomes with minimal waste. Work efficiency significantly impacts organizational

3
performance in the banking sector by enhancing productivity, reducing operational
delays and lowering costs, which leads to improved profitability and customer
satisfaction (Poudel, 2023).
Task completion rate refers to the percentage of assigned tasks that are
finished accurately and within the stipulated time frame. It measures how effectively
employees fulfill their responsibilities, reflecting the efficiency and reliability of
operational processes (Lopez & Garcia, 2017). In the banking sector, a high task
completion rate ensures smoother workflows, reduces delays and enhances service
quality, which in turn improves customer satisfaction and organizational performance
(Poudel, 2023).
Work quality refers to the degree of accuracy, thoroughness and reliability in
completing tasks. It reflects how well employees meet standards and expectations,
minimizing errors and rework (Patel & Mehta, 2018). In the banking sector, high
work quality leads to increased customer trust, fewer operational mistakes and
enhanced overall organizational performance (Omar & Yusoff, 2021).
Time management refers to the ability to plan and control how much time to
spend on specific activities to increase efficiency and productivity (Rahman &
Chowdhury, 2015). Effective time management helps employees prioritize tasks and
meet deadlines. In the banking sector, good time management reduces delays,
enhances service delivery speed and improves overall organizational performance
(Ahmed & Malik, 2018).
Skill utilization refers to the effective use of employees’ abilities and expertise
in performing their job tasks, maximizing their potential and contribution to the
organization (Gonzalez & Torres, 2017). Proper alignment of skills with job
requirements leads to higher productivity and job satisfaction. In the banking sector,
optimal skill utilization improves operational efficiency, reduces errors and enhances
employee engagement, thereby boosting overall organizational performance (Singh &
Verma, 2024).
Commercial banks are pivotal financial institutions that facilitate economic
growth by providing essential services such as accepting deposits, offering loans and
enabling payment systems. They act as intermediaries between savers and borrowers,
channeling funds from individuals and businesses with surplus capital to those in need
of financing. This financial intermediation supports capital formation, stimulates

4
investment and enhances liquidity in the economy (FilingBuddy, 2018). By offering
various financial products and services, commercial banks help individuals and
businesses manage financial risks and contribute to economic stability (Invezz, 2019).
In Nepal, commercial banks are classified as 'A' class financial institutions and
are regulated by the Nepal Rastra Bank (NRB). As of mid-January 2024, there are 20
commercial banks operating in the country, including Nepal Bank Limited, the first
commercial bank established in 1937 and Nabil Bank, the first private sector bank
initiated in 1984. These banks provide a wide range of services, such as deposit
accounts, various loan facilities, trade finance, remittances and digital banking
services. Their extensive branch networks ensure financial inclusion across urban and
rural areas, playing a crucial role in the nation's economic development (Nepal
Database, 2024).
This study investigates the impact of employee productivity on the
organizational performance of commercial banks in Birendranagar Municipality,
Surkhet. In today’s competitive and rapidly evolving banking sector, employee
productivity is essential for achieving sustainable growth, profitability and customer
satisfaction. The research emphasizes five critical variables that influence
productivity: skill level, job knowledge, work experience, task efficiency and
innovation capacity. These factors collectively determine employee performance,
which in turn affects overall organizational outcomes. Furthermore, the study explores
how elements such as work efficiency, task completion rate, work quality, time
management and skill utilization contribute to productivity. By focusing on these
dimensions, the research aims to identify the key drivers of employee productivity
and assess their relative influence on the performance of commercial banks.

1.2 Statement of the Problem

The performance of commercial banks is crucial to the economic development
of a region, especially in emerging areas like Birendranagar Municipality, Surkhet. In
today’s competitive banking environment, employee productivity has emerged as a
key determinant of organizational success. Variables such as skill level, job
knowledge, work experience, task efficiency and innovation capacity significantly
influence how efficiently and effectively banks operate. However, despite the growing
recognition of human capital's role in enhancing organizational performance, there is

5
a lack of focused research on how employee productivity impacts commercial banks
in Birendranagar Municipality.
There are a few previous studies that have been conducted in this geographical
region to assess the correlation between these productivity-related factors and the
organizational performance of banks. This gap highlights the need for a localized
investigation to understand whether the factors identified in broader contexts hold true
in the commercial banking sector of Surkhet. The uniqueness of this setting being a
developing municipality with increasing economic activities and expanding financial
institutions that makes it imperative to explore these relationships. The decision to
undertake this study stems from a personal and academic interest in human resource
development and organizational behavior, especially within the financial sector.
Understanding how individual competencies like skill and innovation influence
institutional outcomes is essential for designing better management practices.
Furthermore, the increasing competition among banks in Surkhet demands evidence-
based strategies to boost performance through employee-related improvements.
The motivation to conduct this study stems from both academic curiosity and a
professional interest in human resource development and organizational behavior
within financial institutions. The topic remains timely and relevant, particularly as
commercial banks in Surkhet face increasing competition and customer demands. By
investigating the link between employee productivity and organizational performance,
this study aims to provide actionable insights that can inform recruitment, training and
management practices tailored to the local context. In essence, this research seeks to
fill an important void in regional banking literature and contribute practical
recommendations for enhancing the productivity and overall performance of
commercial banks in Birendranagar Municipality, Surkhet.
Hence, this study seeks to fill the research gap by analyzing how work
efficiency, task completion rate, work quality, time management and skill utilization
of employees impact the organizational performance of commercial banks in
Birendranagar Municipality, Surkhet. The findings not only contribute to academic
literature but also provide practical insights for bank managers and HR professionals
to enhance workforce productivity and institutional effectiveness.

6
1.3 Objectives of the Study

The main objective of the study is to assess the impact of employee

productivity on organizational performance of commercial banks in Birendranagar
municipality, Surkhet. The specific objectives related to this study are as follows:

1. To assess the impact of work efficiency on organizational performance of

commercial banks.

2. To find out the impact of task completion rate on organizational performance

of commercial banks.
3. To identify the impact of work quality on organizational performance of
commercial banks.
4. To examine the impact of time management on organizational performance of
commercial banks.
5. To assess the impact of skill utilization on organizational performance of
commercial banks.
1.4 Research Questions of the Study

This study deals with the following research questions:

1. What is the impact of work efficiency on organizational performance of

commercial banks?

2. How does task completion rate impact on organizational performance of

commercial banks?
3. Is there any impact of work quality on organizational performance of
commercial banks?
4. In what ways does time management impact on organizational performance of
commercial banks?
5. What is the impact of skill utilization on organizational performance of
commercial banks?
1.5 Conceptual Framework of the Study
A conceptual framework is a structured plan that outlines key variables,
concepts and presumed relationships in a study, guiding data collection and analysis.
It helps clarify the research focus and connects theoretical perspectives with empirical
findings (Ravitch & Riggan, 2017).

7
 The aim of this study was to find out the impact of employee productivity on
organizational performance of commercial banks in Birendranagar municipality,
Surkhet. In this study, work efficiency, task completion rate, work quality, time
management and skill utilization were taken as the independent variables and
organizational performance was taken as the dependent variable. On the basis of the
objectives of the study, a conceptual framework has been developed which is as
follows:

Independent Variable Dependent Variable

Work efficiency

Task completion rate

Organizational performance
Work quality

Time management

Skill utilization

Figure 1: Conceptual Framework of the Study

Source: (Nosike & Okerekeoti, 2022).

Work Efficiency

Work efficiency refers to the ability of an employee to produce desired results

with minimal wasted effort, time, or resources. Efficient employees maximize output
while minimizing inputs such as time, energy and cost. High work efficiency often
results in faster turnaround times and better resource management, which contribute
directly to organizational success. It is influenced by factors such as work
environment, motivation, training and the clarity of goals. According to Robbins and
Judge (2019), efficient performance not only enhances individual contribution but
also boosts overall team effectiveness and cost-effectiveness in operations.

Task Completion Rate

Task completion rate is the proportion of tasks or responsibilities completed

by an employee within a given time frame. This metric indicates how reliably and

8
consistently an employee fulfills assigned duties. A high task completion rate suggests
strong work discipline and dependability, both of which are crucial for productivity.
Employees with higher rates help avoid workflow bottlenecks and ensure continuity
in operations. As stated by Mathis et al. (2017), task completion is a core component
of job performance and is often used in performance evaluations to determine
individual effectiveness.

Work Quality

Work quality refers to the standard or grade of performance an employee

demonstrates in carrying out their responsibilities. High-quality work means fewer
errors, greater attention to detail and outputs that meet or exceed expectations. It also
reflects the employee’s competence, engagement and pride in their work. Poor work
quality may result in rework, customer dissatisfaction and reduced credibility.
According to Armstrong and Taylor (2020), maintaining high work quality is essential
for customer retention and long-term organizational sustainability.

Time Management

Time management is the process by which individuals organize and plan how
to divide their time between specific tasks effectively. Effective time management
leads to better prioritization, reduced stress and increased productivity. Employees
who manage time well are able to meet deadlines, handle multiple responsibilities and
reduce work-related burnout. Poor time management, in contrast, may lead to missed
deadlines and reduced output. Covey et al. (2018) emphasize that successful time
management is one of the defining traits of high-performing employees in dynamic
work environments.

Skill Utilization

Skill utilization refers to the extent to which employees use their acquired
knowledge, skills and competencies in performing job tasks. When employees apply
their full skill sets, they contribute more effectively to innovation, problem-solving
and quality improvement. Underutilized skills can lead to dissatisfaction and wasted
potential. Organizations that recognize and match employee skills to appropriate tasks
tend to have higher productivity and morale. As per Boxall and Purcell (2016),

9
maximizing skill utilization ensures that human capital investments yield optimal
returns.

Organizational Performance
Organizational performance refers to an institution’s ability to achieve its
strategic goals effectively by using resources efficiently to meet stakeholder
expectations (Daft, 2010). In commercial banks, several employee productivity
factors impact this performance. Higher skill levels and strong job knowledge
improve service accuracy and compliance (Becker & Huselid, 2006; Kreitner &
Kinicki, 2010). Work experience enhances adaptability and decision-making,
supporting continuity and stability (Lepak & Snell, 2002). Task efficiency reduces
costs and boosts output through better resource utilization (Schuler & Jackson, 2005).
Innovation capacity drives service improvements and competitive advantage,
contributing to long-term growth (Anderson et al., 2014).

1.6 Significance of the Study

This study has the following significances:

1. The study would help commercial banks understand how employee
productivity variables influence organizational performance, enabling more
effective HR strategies and resource utilization.
2. It assists banking institutions in identifying productivity gaps and
implementing training programs to enhance employees’ skills, job knowledge
and innovation.
3. Government organizations (GOs) benefit from insights into workforce
management in financial institutions, helping to formulate effective labor and
banking policies.
4. Non-governmental organizations (NGOs) can use the findings to collaborate
with banks on financial inclusion projects by understanding factors affecting
institutional effectiveness.
5. International NGOs (INGOs) gain knowledge useful for partnership
development with banks, ensuring efficient fund management and operational
synergy.

10
6. The study aids policymakers in understanding the need to invest in skill
development and innovation to boost the banking sector’s performance in
local municipalities.
7. Academicians are able to incorporate this research into their curriculum,
helping students understand the real-world application of productivity theories
in banking.
8. Scholars find this study a useful reference for future research on the link
between human capital and organizational success in developing economies.
9. It helps HR managers design better recruitment, appraisal and training policies
aligned with performance goals in the banking sector.
10. The study offers a localized understanding of productivity factors affecting
banks in Birendranagar, thus filling a critical research gap in the region.

1.7 Limitations of the Study

The limitations of this study were as follows:

1. This study was limited to only the commercial banks in Birendranagar

municipality, Surkhet.

2. The data was collected using primary source only.

3. The study was limited to the impact of certain factors like work efficiency,
task completion rate, work quality, time management and skill utilization on
organizational performance of banks.

4. The respondents were limited to 129 employees of commercial banks in

Birendranagar municipality, Surkhet.

5. Convenience sampling method was used to select the sample.

1.8 Organization of the Study

This study has been organized into five chapters which are as follows:

Chapter I: Introduction of the Study

This chapter consists of the background of the study, statement of the problem,
objectives of the study, research questions, conceptual framework of the study,
significances of the study, limitations of the study and organization of the study

11
Chapter II: Literature Review

This chapter consists of theoretical review, empirical review and research gap.

Chapter III: Research Methodology

This chapter consists of the research design, population of the study, sampling
strategy and sample, sources of data, data collection instrument, questionnaires
development, questionnaires administration and presentation and analysis of data.

Chapter IV: Presentation and Analysis of Data

This chapter consists of presentation and analysis of data. It also contains the
major findings of the study.

Chapter V: Summary, Conclusion and Recommendations

This chapter consists of summary of the study, conclusion of the study and the
recommendations provided by the study.

The concluding part of the study contains references and appendices.

12
 CHAPTER II
LITERATURE REVIEW
A literature review is a critical summary and analysis of existing research on a
specific topic. In the context of this study, a literature review involves examining
previous studies, journal articles and theoretical frameworks that explore how
employee productivity factors like work efficiency, task completion rate, work
quality, time management and skill utilization influence the overall performance of
commercial banks. It helps identify gaps in knowledge, understand key variables and
establish a foundation for the current research. This review also highlights trends,
challenges and outcomes related to employee productivity, enabling researchers to
build on existing knowledge and justify the significance of their study.

This chapter consists of the concepts on employee productivity, organizational

performance, theories on employee productivity and organizational performance as
well as the previous studies related to employee productivity and organizational
performance.

2.1 Conceptual Review

This section consists of a conceptual review that outlines the key concepts
relevant to the study on the impact of employee productivity on organizational
performance of commercial banks. Employee productivity refers to the output
generated by employees in relation to the resources used. Work efficiency relates to
completing tasks with minimal waste of time and effort. Task completion rate
indicates the frequency of successfully finished tasks within a given period. Work
quality measures the standard of output produced. Time management involves
effective use of time to enhance productivity while skill utilization refers to the
optimal use of employee capabilities. These factors collectively influence
organizational performance in terms of profitability, customer satisfaction and
operational excellence in commercial banks.

2.1.1 Productivity

Productivity refers to the efficiency with which inputs are converted into
outputs in a given system, often measured by the amount of goods or services

13
produced per unit of input such as labor, capital, or time. In the workplace,
productivity reflects the performance level of employees and their ability to meet set
goals efficiently and effectively. Higher productivity is linked to improved
organizational outcomes, including profitability and competitiveness. It is influenced
by various factors such as skills, motivation, work environment and technological
support (Drucker, 1999; OECD, 2001).

2.1.2 Employee Productivity

Employee productivity refers to the efficiency and effectiveness with which
employees perform their tasks to achieve organizational goals. It is a crucial
determinant of overall organizational performance, reflecting the output an employee
produces relative to the time and resources utilized. High employee productivity often
results from factors such as clear goal setting, proper training, motivation, skill
utilization and effective time management (Robbins & Coulter, 2018). Organizations
that prioritize employee productivity benefit from reduced operational costs,
improved customer satisfaction and enhanced competitiveness. Conversely, low
productivity can lead to inefficiencies, poor service delivery and decreased
profitability. Measuring employee productivity typically involves evaluating output
quality, task completion rate and adherence to deadlines. Modern organizations
increasingly focus on creating supportive work environments and using performance
appraisal systems to foster productivity (Bakker & Demerouti, 2007). Therefore,
improving employee productivity is vital for sustained organizational growth,
especially in competitive sectors like banking.

2.1.3 Work Efficiency

Work efficiency refers to the ability to complete tasks accurately and promptly
while minimizing the use of resources such as time, effort and cost. It reflects how
effectively an employee utilizes their time and skills to achieve desired outcomes with
minimal waste. High work efficiency leads to increased productivity, reduced
operational delays and improved organizational performance. It is influenced by
factors such as proper planning, time management, skill alignment and access to
relevant tools and technology (Mathis & Jackson, 2011). Efficient work practices are
especially important in competitive industries like banking, where timely and accurate
service delivery is critical.

14
 The linkage between work efficiency and organizational performance in
commercial banks is highlighted by Poudel (2023), who studied Nepalese banks. The
study found that metrics such as operating income ratio, asset utilization and overhead
efficiency have a positive and significant influence on key performance indicators like
return on assets, return on equity and earnings per share. In practical terms, when
bank employees and systems operate efficiently, reducing wastage, optimizing asset
use and controlling overhead costs, the bank’s profitability and financial health
measurably improve. Hence, enhancing work efficiency within commercial banks
fosters better cost management, improves profit margins and strengthens overall
organizational performance.
The relationship between work efficiency and employee productivity in
commercial banks was examined by Sharma and Singh (2021), who found that
employee time management and effective task prioritization significantly enhance
daily operational output. Their research emphasized that when employees efficiently
allocate their working hours and minimize idle time, banks experience smoother
workflows and faster transaction processing. Consequently, banks that invest in
training employees on efficient work methods and promote disciplined work habits
see measurable improvements in service delivery speed and customer satisfaction.
This highlights that fostering individual work efficiency is vital to maintaining
competitive advantage in the banking sector.
In a study on technological adoption and work efficiency, Khan and Ali
(2022) investigated how digital tools influence employee performance in commercial
banks. Their findings indicate that the integration of automated systems and real-time
data access substantially reduces manual errors and processing time, boosting overall
efficiency. Moreover, employees equipped with up-to-date technology can focus more
on strategic tasks rather than routine operations, resulting in better utilization of skills
and increased motivation. Thus, the study suggests that technological advancements,
when combined with skilled workforce training, significantly contribute to enhancing
work efficiency and improving organizational outcomes in banking institutions.

2.1.4 Task Completion Rate

Task completion rate refers to the percentage of tasks or assignments
successfully finished within a specified time frame. It is a key performance metric
used to evaluate individual or team productivity and operational efficiency. A high

15
task completion rate indicates effective time management, goal clarity and the ability
to meet deadlines while a low rate may signal bottlenecks, inefficiencies, or lack of
motivation (Locke & Latham, 2002). In organizational settings, particularly in
commercial banks, maintaining a high task completion rate is essential to ensure
timely service delivery, customer satisfaction and smooth workflow operations.
Poudel (2023) found that improvements in operational efficiency significantly
enhanced key profitability metrics such as Return on Assets (ROA) and Return on
Equity (ROE) in Nepalese commercial banks. This implies that when banks operate
more efficiently by minimizing waste, utilizing resources effectively and completing
tasks in a timely and accurate manner, their financial performance improves. A higher
task completion rate, reflecting the timely and successful execution of duties, directly
contributes to smoother workflow, reduced operational delays and better service
delivery. This efficiency allows banks to serve more customers, process more
transactions and manage internal operations with lower overhead costs. As a result,
banks achieve better cost control and higher profit margins, leading to improved
organizational performance. Poudel’s findings reinforce the idea that task execution
and time-bound performance are not just individual competencies but strategic
elements that drive financial outcomes and long-term sustainability in the competitive
banking sector.
Timely task completion is critical for maintaining customer satisfaction and
operational excellence in commercial banks. According to Acharya and Joshi (2021),
banks that emphasize clear deadlines and effective workflow monitoring report higher
task completion rates and improved customer service ratings. Their study in South
Asian banks showed that when employees are supported with well-defined schedules
and process controls, they complete tasks more reliably and reduce bottlenecks. This
leads to enhanced client trust and repeat business, highlighting that task completion
rate is a vital driver of both internal efficiency and external reputation in banking
institutions.
Effective coordination and communication among bank employees are
essential for achieving high task completion rates. Lama and Bhattarai (2022) found
that cooperative banks with strong interdepartmental collaboration experienced fewer
delays in task execution and higher overall performance. Their research pointed out
that when employees communicate clearly and share information promptly, task

16
handoffs become smoother, reducing errors and redundancies. As a result, banks can
process transactions faster and meet customer expectations more consistently. This
demonstrates that task completion rate is influenced not only by individual effort but
also by organizational culture and teamwork.

2.1.5 Work Quality

Work quality refers to the degree to which completed tasks meet established
standards and expectations regarding accuracy, completeness and consistency. High
work quality ensures that outputs are reliable, error-free and valuable to the
organization and its customers. It reflects an employee’s attention to detail, skill level
and commitment to excellence (Juran & Godfrey, 1999). In service industries such as
commercial banking, maintaining high work quality is essential for customer
satisfaction, trust and regulatory compliance. Poor work quality can lead to rework,
customer complaints and financial losses, highlighting its critical role in
organizational success.
Work quality refers to the standard of output produced by employees,
encompassing accuracy, completeness and adherence to established procedures. In the
context of commercial banks, high work quality ensures that tasks such as transaction
processing, customer service and compliance with regulatory requirements are
executed without errors, thereby enhancing operational efficiency and customer
satisfaction. Thakur (2024) emphasizes that quality control, as part of outsourcing
strategies, positively correlates with organizational performance in Nepalese
commercial banks. The study indicates that better quality control leads to improved
employee satisfaction and commitment, which in turn enhances overall performance.
This underscores the importance of maintaining high work quality to achieve superior
organizational outcomes in the banking sector.
High work quality in commercial banks significantly impacts customer trust
and loyalty. According to Joshi and Khatri (2022), banks that prioritize accuracy,
thoroughness and attention to detail in daily operations experience fewer errors and
complaints. Their study of South Asian financial institutions revealed that maintaining
consistent work quality not only reduces rework but also strengthens the bank’s
reputation for reliability. Consequently, improved work quality enhances customer
satisfaction and supports long-term business growth, highlighting its critical role in
competitive banking environments.

17
 Effective employee training programs are key to sustaining high work quality
in banking services. Sharma and Gurung (2023) found that banks investing in
continuous skill development and quality awareness initiatives report higher standards
of service delivery. Their research in Nepalese banks showed that well-trained
employees produce more accurate and reliable outputs, which reduces operational
risks and enhances organizational efficiency. This demonstrates that fostering a
culture of quality through employee development is essential for maintaining work
excellence and improving overall bank performance.

2.1.6 Time Management

Time management refers to the process of planning and controlling how much
time to spend on specific activities to increase efficiency and productivity. Effective
time management helps individuals prioritize tasks, reduce procrastination and meet
deadlines, leading to better performance and less stress (Macan, 1994). It involves
setting goals, organizing tasks and allocating appropriate time slots to ensure timely
completion. In organizational settings, especially in commercial banks, good time
management is essential for handling multiple customer requests, meeting regulatory
deadlines and maintaining service quality. Efficient time use ultimately contributes to
improved employee productivity and organizational success.
Effective time management is crucial for enhancing organizational
performance in commercial banks. A study by Akintayo et al. (2023) in the Nigerian
banking industry found that efficient time management practices significantly
contribute to business performance by improving productivity and employee
satisfaction. The research indicates that setting clear time-bound goals and adhering to
schedules lead to better task execution, reduced delays and optimized resource
utilization. In the context of commercial banks, these improvements translate to faster
service delivery, higher customer satisfaction and increased profitability. By
prioritizing time management, banks can streamline operations, minimize errors and
maintain a competitive edge in the financial sector.
Effective time management is critical for enhancing employee productivity
and reducing operational inefficiencies in commercial banks. Kumar and Singh
(2022) found that employees who use prioritization techniques and scheduling tools
complete their tasks more efficiently, resulting in smoother banking operations. Their
study emphasized that time management training programs empower bank staff to

18
handle workloads effectively, decreasing overtime and improving work-life balance.
Consequently, banks that promote disciplined time management achieve higher
service quality and operational excellence.
The role of managerial support in fostering good time management practices
among bank employees is highlighted by Lee and Park (2021). Their research showed
that when managers provide clear deadlines, monitor progress and encourage time-
saving strategies, employees feel more accountable and motivated to meet targets
promptly. This supportive organizational culture enhances adherence to schedules,
reduces task delays and improves overall workflow efficiency. The study concludes
that managerial encouragement of time management is essential for optimizing
performance in competitive banking environments.

2.1.7 Skill Utilization

Skill utilization refers to the effective use of employees’ knowledge, abilities
and competencies in performing their job tasks. It ensures that workers’ talents are
fully applied to enhance productivity, job satisfaction and overall organizational
success (Fugate, Kinicki, & Prussia, 2008). When skills are properly utilized,
employees feel valued and motivated, which leads to improved performance and
reduced turnover. In commercial banks, optimal skill utilization enables staff to
handle complex financial tasks efficiently, provide better customer service and adapt
to changing market demands. Organizations that prioritize skill utilization gain a
competitive advantage by maximizing human capital and fostering innovation.
Skill utilization refers to the effective application of employees' knowledge,
abilities and competencies in their job roles. When employees' skills are optimally
utilized, it leads to enhanced performance, job satisfaction and overall organizational
success. In the context of commercial banks, skill utilization ensures that employees
are assigned tasks that align with their expertise, leading to efficient operations and
improved customer service. Research indicates that organizations that focus on skill
development and utilization experience better financial performance and employee
engagement. For instance, a study by Shrestha (2023) found that skill development is
strongly related to employee effectiveness in Nepal Bank Limited, highlighting the
importance of aligning employees' skills with their job responsibilities to achieve
organizational goals.

19
 Effective skill utilization enhances employee productivity and job satisfaction
in commercial banks. According to Bhattarai and Thapa (2022), banks that align
employees’ competencies with their assigned tasks report higher operational
efficiency and reduced task errors. Their research in Nepalese financial institutions
emphasizes that appropriate matching of skills to job requirements not only improves
individual performance but also contributes to smoother workflow and better
customer service. This alignment fosters motivation and encourages continuous skill
development, which is essential for sustaining competitive advantage in the banking
sector.
The influence of skill utilization on employee engagement and retention was
explored by Adhikari (2022), who found that employees whose skills are fully utilized
tend to exhibit stronger organizational commitment and lower turnover intentions.
Their study in South Asian cooperative banks revealed that when employees perceive
their skills are valued and effectively applied, they are more motivated to contribute to
organizational success. This highlights the importance of designing jobs that leverage
employee strengths to maximize both individual and institutional performance.

2.1.8 Organizational Performance

Organizational performance refers to how effectively an organization achieves
its goals and objectives, often measured through financial outcomes, customer
satisfaction, operational efficiency and employee productivity. In commercial banks,
organizational performance encompasses profitability, asset quality, liquidity and
service delivery efficiency (Athanasoglou et al., 2008). High performance in banks
reflects strong financial health, effective risk management and competitive advantage
in the market. It is influenced by factors such as employee productivity, work quality
and operational efficiency. Evaluating organizational performance helps banks
identify strengths and areas for improvement to sustain growth and meet stakeholder
expectations.

2.2 Theoretical Review

This section consists of different theories related to the impact of employee
productivity on organizational performance in commercial banks. Key theories
include the Efficiency Wage Theory, which suggests that higher employee
productivity results from better incentives and working conditions. The Human
Capital Theory emphasizes that investing in employee skills and knowledge improves

20
productivity and organizational outcomes. Additionally, the Motivation Theory
highlights how motivated employees perform tasks more efficiently and effectively.
These theories collectively explain how factors like skill utilization, work quality,
time management and task completion contribute to enhanced productivity, ultimately
driving better financial performance and competitiveness in commercial banks.
Efficiency Wage Theory
Efficiency Wage Theory, formulated by Shapiro and Stiglitz (1984), posits
that employers can boost employee productivity and reduce shirking by paying wages
above the market-clearing level. By offering higher-than-average wages,
organizations incentivize employees to work harder and be more loyal, as losing a
well-paying job carries a higher cost. This wage premium helps attract and retain
skilled and motivated workers, reducing turnover and recruitment expenses.
Moreover, higher wages can improve employee morale and job satisfaction, which
translates into better performance and efficiency. In commercial banks, where
accuracy, reliability and customer service quality are critical, paying efficiency wages
can ensure employees are more attentive, committed and productive. This theory
challenges the traditional view that wages only reflect labor market supply and
demand, suggesting instead that strategic wage setting is a tool for enhancing overall
organizational productivity and competitiveness.
Human Capital Theory
Human Capital Theory, introduced by Becker (1964), focuses on the idea that
investments in employee education, training and skills development lead to higher
productivity and improved organizational outcomes. According to this theory,
employees are valuable assets whose knowledge and abilities contribute significantly
to a company’s success. The acquisition and application of skills enhance worker
efficiency and innovation, which directly impact profitability and competitive
advantage. In commercial banks, human capital development is crucial due to the
complexity of financial products, regulatory demands and the need for excellent
customer service. Continuous learning initiatives, certifications and training programs
help bank employees stay updated with industry best practices and technological
advancements. This theory implies that organizations investing in their workforce not
only improve individual performance but also foster a culture of growth and
adaptability, ultimately boosting overall organizational performance.

21
Motivation Theory
Motivation Theory explores the psychological and emotional factors that drive
employee behavior and performance. Maslow’s hierarchy of needs (1943) outlines
how individuals are motivated by fulfilling basic needs before progressing to higher-
level desires such as esteem and self-actualization. Herzberg’s two-factor theory
(1968) differentiates between hygiene factors (which prevent dissatisfaction) and
motivators (which promote satisfaction and engagement). When employees feel
motivated, they tend to be more productive, engaged and committed to their work. In
commercial banks, understanding motivation helps managers design jobs, reward
systems and work environments that encourage high performance. Motivated
employees are more likely to complete tasks efficiently, provide quality service and
contribute to a positive organizational culture. Therefore, addressing both intrinsic
and extrinsic motivational factors is essential for enhancing employee productivity
and, consequently, organizational success.
Among the discussed theories, 'Human Capital Theory' is most relevant to the
study present study. This theory emphasizes the critical role of employees’
knowledge, skills and abilities in driving productivity and organizational success
(Becker, 1964). Since the study focuses on determinants such as work efficiency, task
completion rate, work quality, time management and skill utilization, all of which
relate directly to employees’ capabilities and how effectively they apply their skills,
Human Capital Theory provides a strong theoretical foundation. It explains how
investments in employee development and optimal use of skills enhance productivity,
which in turn positively affects organizational performance. While Efficiency Wage
and Motivation Theories offer insights into incentives and motivation, Human Capital
Theory specifically addresses the link between employee competencies (independent
variables) and outcomes like profitability and service quality (dependent variable),
making it the most appropriate framework for this study.

2.3 Empirical Review

This section consists of the review of previous studies on the impact of

employee productivity on organizational performance in the global and the national
context which are as follows:

22
Global Context

Rahman and Chowdhury (2015) investigated time management practices

among bank officers in Bangladesh. They found that the use of prioritization matrices
and goal-setting strategies enabled employees to manage competing demands
effectively. Banks that encouraged structured time allocation saw reductions in task
delays and increased operational productivity. The study underscores the role of
practical time management tools in enhancing banking efficiency.
Singh and Kaur (2016) examined how lean management practices influence
work efficiency in Indian banks. They found that adopting lean principles such as
waste reduction and process standardization significantly improved task throughput
and resource utilization. Banks that integrated lean strategies reported reduced process
time and operational costs, enhancing overall efficiency and customer satisfaction.
This study highlights the importance of continuous process improvement to sustain
competitive advantage in banking.
Gonzalez and Torres (2017) studied skill alignment and employee
performance in Mexican cooperative banks. They found that aligning employee tasks
with their core competencies enhanced job satisfaction and productivity. Proper skill
utilization minimized task errors and improved operational workflows, highlighting
the necessity of matching skills to job requirements for optimal performance.
Lopez and Garcia (2017) studied task completion dynamics in Latin American
banks and found that clearly defined workflows and task ownership improve
completion rates. The presence of accountability mechanisms and transparent
reporting systems ensured timely execution of tasks, reducing delays in service
delivery. Their findings emphasize the role of organizational structure and clarity in
enhancing task completion rates.
Ahmed and Malik (2018) explored the relationship between time management
and stress reduction among employees in Pakistani banks. Their research
demonstrated that employees trained in time management techniques experienced less
work-related stress and burnout. Improved time allocation skills led to better task
execution and increased job satisfaction, indicating that time management also
supports employee well-being.
Patel and Mehta (2018) assessed the impact of quality management systems
on banking services in India. They reported that banks implementing Total Quality

23
Management (TQM) frameworks delivered higher accuracy and consistency in
transactions. Enhanced quality control mechanisms led to fewer complaints and
rework, improving customer trust and satisfaction. The study highlights that
institutionalizing quality processes is critical for maintaining service excellence.
Miller and Chen (2019) investigated the impact of employee motivation on
work efficiency in U.S. commercial banks. Their findings showed that intrinsic
motivation, fostered through recognition and meaningful work, leads to higher
efficiency levels. Motivated employees tend to use their time and skills more
effectively, resulting in better productivity and fewer errors. The study suggests that
human resource practices focusing on motivation directly affect operational
efficiency.
Nguyen et al. (2020) explored the role of digital workflow tools in boosting
task completion rates in Southeast Asian banks. Their research indicated that banks
utilizing automated task tracking and reminders saw a significant increase in on-time
task completions. The integration of technology facilitated better time management
and coordination among employees, thus reducing bottlenecks and improving
operational efficiency.
Rashid et al. (2020) undertook a study to examine the relationship between
corporate governance and employee productivity and to assess how this relationship
affects organizational performance in banks. The respondents of the study were
managers and employees of several commercial banks in Bangladesh, selected using
purposive sampling method. The study used corporate governance as the independent
variable and organizational performance as the dependent variable. The findings of
the study showed that strong governance practices positively influence employee
productivity, improving work efficiency, task completion and skill utilization, which
in turn enhanced organizational performance. The study concluded that governance
mechanisms foster transparency and accountability that promote better employee
productivity. The study recommended that commercial banks should strengthen
governance frameworks to create an environment conducive to higher employee
output and sustained competitive advantage.
Chebeni (2020) assessed how performance management affects employee
productivity and to analyze its impact on organizational effectiveness. The
respondents were employees of Kenya Commercial Bank selected via convenience

24
sampling. The study used performance management as the independent variable and
organizational effectiveness as the dependent variable. Findings indicated that
effective performance management improved employee work efficiency, task
completion rate and work quality, which subsequently enhanced organizational
performance. The study concluded that performance management systems align
employee goals with organizational objectives to boost productivity. The study
recommended that commercial banks strengthen their performance appraisal and
feedback mechanisms to increase employee efficiency and organizational success.
Ali and Khan (2021) determined the relationship between skill utilization and
employee productivity and its effect on organizational performance. Respondents
were bank employees selected by simple random sampling. Skill utilization was the
independent variable and employee productivity was the dependent variable. The
study found that effective skill utilization significantly improved work quality,
efficiency and task completion, which enhanced customer service and bank
profitability. The study concluded that skill utilization is crucial for improving
employee productivity and organizational success. It recommended that banks invest
in skill development programs to maximize employee contributions.
Omar and Yusoff (2021) examined the influence of employee training on
work quality in Malaysian commercial banks. Their findings revealed that continuous
skill development programs significantly improved employees’ ability to deliver
error-free services. Training enhanced attention to detail and adherence to standard
operating procedures, which positively impacted overall service quality and customer
perceptions.
Ebhote et al. (2022) performed a study to determine the impact of work stress
on employee productivity and to examine its effect on organizational performance in
Nigerian banks. The respondents of the study were bank employees selected using
stratified random sampling. The study used work stress as the independent variable
and employee productivity as the dependent variable. The findings showed that high
work stress negatively affected work efficiency, task completion rates and work
quality, resulting in reduced organizational performance. The study concluded that
managing work stress is essential to enhance employee productivity. The study
recommended that banks implement effective stress management and employee
wellness programs to improve performance and organizational success.

25
 Martinez and Hernandez (2022) examined the effect of time management
practices on employee productivity and bank performance. Respondents were bank
employees chosen by stratified sampling. Time management was the independent
variable and employee productivity was the dependent variable. Findings showed that
employees who effectively managed their time had higher task completion rates and
maintained better work quality, leading to increased customer satisfaction and
profitability. The study concluded that time management significantly enhances
employee productivity. It recommended that banks implement time management
training programs to improve performance.
Opoku et al. (2023) analyzed how organizational culture affects employee
performance and organizational productivity. Respondents were employees of GCB
Bank, chosen via convenience sampling. Organizational culture was the independent
variable and employee performance the dependent variable. The findings revealed
that a positive organizational culture improved work quality, task completion and skill
utilization, leading to higher employee productivity and enhanced organizational
performance. The study concluded that a supportive culture motivates employees and
facilitates efficiency. It recommended that commercial banks cultivate positive
cultures to maximize productivity and business success.
Sohrabi (2023) aimed to investigate how process improvement strategies
affected employee productivity during the COVID-19 pandemic in Nigerian banks.
The respondents were bank staff selected through purposive sampling. The
independent variable was process improvement strategy and employee productivity
was the dependent variable. The study found that banks implementing lean processes
and digital solutions improved employees’ time management, work efficiency and
task completion rates despite pandemic challenges, supporting organizational
performance. It concluded that process improvements mitigate adverse impacts on
productivity. The study recommended that banks continue adopting innovative
process improvements to sustain employee productivity and organizational
competitiveness.
Medina-Garrido et al. (2023) explored how work-family balance affects
employee well-being and job performance in the Spanish banking sector. The
respondents included bank employees selected using simple random sampling. Work-
family balance and employee well-being were the independent variables while job

26
performance was the dependent variable. Findings showed that better work-family
balance improved employees’ time management and work quality, leading to
enhanced job performance and organizational outcomes. The study concluded that
family-friendly policies boost employee motivation and productivity. It recommended
that commercial banks adopt flexible work policies to support employees’ work-life
balance and improve overall performance.
Dong and Bhandari (2024) aimed to examine the effect of reward systems on
employee performance and how motivation mediates this relationship. Respondents
were bank employees in China selected through systematic sampling. The
independent variables were rewards and motivation while employee performance was
the dependent variable. The study found that rewards significantly improved
employees’ time management, work quality and skill utilization through increased
motivation. This boost in employee productivity positively influenced organizational
performance. The study concluded that both intrinsic and extrinsic rewards are vital
for motivating employees and improving productivity. It recommended that banks
implement balanced reward systems to sustain high employee motivation and
organizational success.
Singh and Verma (2024) analyzed the effects of cross-functional skill
development on employee adaptability in Indian commercial banks. Their study
showed that employees equipped with diverse skills were better prepared to handle
varied tasks, resulting in higher efficiency and job engagement. The findings suggest
that skill diversification through training can improve overall organizational resilience
and employee effectiveness.
Williams and Smith (2025) assessed the effect of task completion rates on
organizational performance and identify factors influencing task completion.
Respondents were employees of UK commercial banks selected via quota sampling.
Task completion rate was the independent variable and organizational performance
was the dependent variable. The study found that higher task completion rates
correlated with greater operational efficiency and profitability. Training, goal-setting
and supervision were significant enablers of task completion. The study concluded
that improving task completion is critical for organizational success. It recommended
that banks enhance employee training and supervision to ensure timely, quality task
execution.

27
Nepalese Context
Adhikari (2020) examined the role of teamwork in enhancing employee
productivity and organizational performance. The respondents were 130 bank
employees selected through stratified random sampling. The study used teamwork as
the independent variable and organizational productivity as the dependent variable.
Findings revealed that effective teamwork significantly improved work efficiency,
task completion rates and work quality among employees, which positively
influenced overall bank performance. The study concluded that teamwork is a vital
factor in enhancing employee productivity. It recommended that banks foster
collaborative work environments to boost organizational success.
Sharma (2020) examined how training affects employee productivity and to
analyze its influence on organizational performance in Nepalese commercial banks.
The respondents of the study were 150 bank employees selected using simple random
sampling. The study used training and skill utilization as the independent variables
and organizational performance as the dependent variable. The findings showed that
training significantly improved employees’ work efficiency, task completion rate and
skill utilization, which positively impacted organizational performance. The study
concluded that well-structured training programs enhance employee productivity in
commercial banks. It recommended that banks invest more in continuous training and
development to sustain competitive performance.
Koirala (2021) assessed the impact of time management on employee
productivity and to evaluate its effects on organizational outcomes. The respondents
were 120 bank staff selected through convenience sampling. Time management was
the independent variable and employee productivity the dependent variable. Findings
revealed that effective time management positively influenced task completion and
work quality, which enhanced organizational performance. The study concluded that
time management is crucial for improving employee output. It recommended that
banks conduct time management workshops to boost efficiency.
Gautam (2021) aimed to analyze how employees’ work quality affects overall
bank performance. The respondents were 100 employees selected using purposive
sampling. Work quality was the independent variable and organizational performance
was the dependent variable. Results showed that higher work quality led to better
customer satisfaction and profitability. The study concluded that maintaining high

28
work standards is vital for bank success. It recommended regular quality assessments
and employee feedback mechanisms.
Hakuduwal (2021) explored the impact of digitalization on employee
engagement and how it affects organizational performance. The respondents included
120 bank employees selected using convenience sampling. Digitalization was the
independent variable and employee engagement and organizational performance were
dependent variables. The study found that digital tools enhanced time management
and skill utilization, leading to higher employee productivity and improved bank
performance. The study concluded that digitalization plays a critical role in enhancing
employee productivity. It recommended continuous investment in digital
infrastructure and training.
Chalise (2021) aimed to investigate how work-life balance and related factors
impact employee productivity and organizational outcomes. The respondents were
100 employees chosen via purposive sampling. Work-life balance was the
independent variable and job satisfaction and organizational performance were
dependent variables. The findings showed that balanced work-life improved employee
motivation, task completion rates and work quality, positively affecting organizational
performance. The study concluded that maintaining work-life balance enhances
productivity. It recommended family-friendly policies in banks.
Ghimire et al. (2021) assessed how corporate culture influences employee
productivity and bank performance. The respondents were 140 employees selected
randomly. Corporate culture was the independent variable and organizational
performance the dependent variable. Findings indicated that a positive culture
increased work efficiency, skill utilization and employee motivation, boosting
organizational success. The study concluded that corporate culture is critical for
enhancing productivity. It recommended banks develop strong cultural values.
Adhikari (2022) focused on evaluating how task completion influences
employee productivity and bank performance. The respondents included 130 bank
officers selected via stratified sampling. Task completion rate was the independent
variable while organizational performance was the dependent variable. Findings
indicated that timely and accurate task completion increased employee productivity
and enhanced organizational results. The study concluded that monitoring task

29
completion is essential for bank performance. It recommended implementing better
task tracking systems.
Bhattarai (2022) sought to investigate how motivation affects employees’
work efficiency and organizational outcomes. The respondents were 140 bank
employees selected randomly. Motivation was the independent variable and work
efficiency was the dependent variable. Results showed that motivated employees
demonstrated higher work efficiency and productivity, positively affecting
organizational performance. The study concluded that motivation plays a key role in
enhancing employee productivity. It recommended introducing incentive programs.
Aryal et al. (2022) evaluated the effect of performance appraisal on job
satisfaction and organizational commitment. Respondents were 150 employees
selected by simple random sampling. Performance appraisal was the independent
variable while job satisfaction and commitment were dependent variables. The study
showed that effective appraisal systems improved work quality, task completion and
time management, leading to higher organizational performance. The study concluded
that appraisal positively influences productivity. It recommended enhancing appraisal
fairness and feedback quality.
Sakha (2022) analyzed the relationship between employee compensation,
productivity and financial performance. Respondents were 120 employees selected
through purposive sampling. Employee compensation was the independent variable
and financial performance was the dependent variable. Findings revealed that fair
compensation improved employee motivation, skill utilization and work efficiency,
positively impacting financial outcomes. The study concluded that compensation is a
key driver of productivity. It recommended competitive salary structures.
Dhakal (2023) analyzed the effect of skill utilization on productivity and
performance. The respondents were 125 employees selected by systematic sampling.
Skill utilization was the independent variable and employee productivity was the
dependent variable. The study found that optimal use of employee skills improved
task completion, work quality and overall productivity, resulting in better
organizational performance. It concluded that maximizing skill utilization boosts bank
success. It recommended targeted skill development initiatives.
Shrestha (2023) assessed how work efficiency impacts productivity and
performance. The respondents included 150 bank staff chosen via random sampling.

30
Work efficiency was the independent variable and organizational performance was
the dependent variable. The findings showed that higher work efficiency leads to
increased task completion and improved bank performance. The study concluded that
work efficiency is critical for competitive advantage. It recommended process
optimization and employee training.
Manandhar (2024) examined how employee feedback mechanisms influence
productivity and performance. The respondents were 110 employees selected using
purposive sampling. Employee feedback was the independent variable and
organizational performance was the dependent variable. Results indicated that regular
feedback improved employee motivation, time management and work quality,
enhancing productivity and organizational results. The study concluded that feedback
systems are vital for performance improvement. It recommended institutionalizing
regular feedback channels.
Pokharel (2024) identified factors influencing retention and their effects on
productivity and performance. Respondents included 130 employees selected by
quota sampling. Employee retention factors were independent variables and
organizational performance was dependent. Findings showed that retention positively
affected time management, task completion and work quality, improving productivity
and performance. The study concluded that retention strategies boost organizational
success. It recommended improved work conditions and career development.
Kandel (2024) assessed how organizational climate affects retention and
productivity. Respondents were 140 bank employees selected by stratified sampling.
Organizational factors were independent variables and employee productivity was
dependent. Findings revealed that positive organizational factors enhanced employee
motivation, skill utilization and efficiency, leading to better retention and
organizational performance. The study concluded that a healthy work environment
improves productivity. It recommended organizational development programs.
Dahal (2024) explored how quality of work life affects employee productivity
and bank performance. The respondents were 110 employees selected via purposive
sampling. Quality of work life was the independent variable and employee
performance was dependent. The study found that improved work conditions led to
higher work efficiency, task completion rates and skill utilization, boosting

31
organizational success. The study concluded that enhancing quality of work life is
essential. It recommended better employee welfare programs.
Rai (2024) evaluated the effects of time management on employee
productivity and overall bank success. The respondents were 130 bank employees
chosen by stratified random sampling. Time management was the independent
variable and organizational performance was the dependent variable. The findings
revealed that employees with strong time management skills completed tasks
efficiently and maintained high work quality, positively affecting bank performance.
The study concluded that improving time management enhances productivity. It
recommended workshops and training focused on time optimization.
Khatri (2025) explored the impact of task completion on employee
productivity and bank outcomes. The respondents were 140 bank employees selected
via convenience sampling. Task completion rate was the independent variable and
organizational performance was the dependent variable. Findings showed that higher
task completion rates significantly improved employee productivity and financial
performance of banks. The study concluded that monitoring and encouraging timely
task completion boosts organizational success. It recommended enhanced supervision
and performance monitoring systems.
Lamichhane et al. (2025) analyzed how HRD, planning and appraisal impact
employee satisfaction and productivity. Respondents were 150 employees selected by
random sampling. HRD, planning and appraisal were independent variables and
employee satisfaction and productivity were dependent variables. Findings indicated
that effective HRD and appraisal improved work quality, time management and task
completion, enhancing organizational performance. The study concluded that strategic
HR practices increase productivity. It recommended integrated HR approaches.

2.3 Research Gap

Although several studies have investigated various factors influencing
employee productivity and organizational performance in the Nepalese banking
sector, there remain notable gaps in the literature, especially concerning the
simultaneous examination of multiple employee productivity determinants and their
collective impact on organizational performance within specific local contexts such as
Birendranagar Municipality, Surkhet. Existing research has often focused on isolated
aspects of productivity, such as teamwork (Adhikari, 2020), time management

32
(Koirala, 2021; Rai, 2024), work quality (Gautam, 2021) and skill utilization (Dhakal,
2023), without comprehensively integrating these variables to analyze their combined
effects on employee productivity and organizational outcomes.
Furthermore while Aryal, Hamal and Bhatta (2022) highlighted the
importance of performance appraisal on job satisfaction and organizational
commitment and Sakha (2022) examined the influence of employee compensation on
financial performance, there is a scarcity of research that investigates how core
productivity variables such as work efficiency, task completion rate, work quality,
time management and skill utilization jointly affect organizational performance within
Nepalese commercial banks, particularly in the Birendranagar Municipality area. The
studies by Manandhar (2024) and Pokharel (2024) on employee feedback and
retention intentions have not sufficiently explored the direct relationship between
these variables and productivity determinants such as task completion and time
management in this specific geographic setting.
Moreover, many of the prior studies tend to generalize findings across broad
banking sectors without considering the unique socio-economic and managerial
contexts that characterize banks in Birendranagar Municipality. Therefore, this study
seeks to address these gaps by offering an in-depth empirical investigation of how the
combined effects of work efficiency, task completion rate, work quality, time
management and skill utilization influence organizational performance in commercial
banks within Birendranagar. This localized focus will provide valuable insights to
both academia and practitioners, enabling targeted strategies to enhance employee
productivity and overall bank performance in a contextually relevant manner.

33
 CHAPTER III
RESEARCH METHODOLOGY
This chapter presents a detailed description of the research methodology
employed to investigate the impact of employee productivity on organizational
performance within commercial banks situated in Birendranagar Municipality,
Surkhet. It provides a comprehensive overview of the research design selected to
achieve the study objectives, the population from which data were drawn, the
sampling procedures used to select participants, the sources and instruments of data
collection, the procedures followed during data gathering, the techniques used for
analyzing the data and the ethical considerations observed throughout the study. By
outlining each stage of the research process with clarity and transparency, this chapter
ensures that the methodology is replicable, the findings are credible and the study
adheres to recognized academic and ethical standards.

3.1 Research Design

The research adopted a descriptive research design to methodically examine
the relationship between employee productivity determinants including work
efficiency, task completion rate, work quality, time management and skill utilization
and the organizational performance of commercial banks. This design was chosen
because it facilitates the systematic collection and quantitative analysis of numerical
data, providing a structured framework to understand complex interrelationships. The
quantitative approach enabled the use of statistical tools to summarize data and test
hypotheses, enhancing the objectivity of the findings. Data were collected through a
carefully structured questionnaire, allowing the researcher to gather consistent and
comparable data across respondents. By selecting this design, the study aimed to
provide empirical evidence on how variations in employee productivity influence
bank performance in the specific socio-economic context of Birendranagar.

3.2 Population of the Study

The population targeted in this study consisted of all employees working in the
20 commercial banks currently operating within Birendranagar Municipality, Surkhet.
This population was considered appropriate because these employees engage in a
range of banking functions that directly affect operational efficiency and performance
outcomes. Including all employees from multiple commercial banks provided a broad

34
and diverse representation of perspectives relevant to employee productivity and
organizational success. The population's accessibility was also a practical
consideration, allowing the researcher to collect primary data from individuals who
experience firsthand the work environment, productivity challenges and performance
expectations within the banking sector.

3.3 Sampling Design and Sample Size

To select participants from the total population of bank employees, the study
utilized a convenience sampling technique. This non-probability sampling method
was chosen due to its practicality, ease of implementation and time efficiency within
the constraints of the study period. Convenience sampling enabled the researcher to
approach and recruit employees who were available and willing to participate during
data collection visits across bank branches. Although this method limits the statistical
generalizability of the findings, it was considered appropriate given the research
context and objectives. The final sample consisted of 129 employees from the 20
commercial banks, providing a sufficient volume of responses for robust quantitative
analysis while balancing resource constraints.

3.4 Sources of Data

Primary data served as the core source of information for this research,
collected directly from bank employees through a structured questionnaire. Using
primary data ensured that the information was current, specific to the research
questions and reflective of the local banking environment in Birendranagar.
Collecting data firsthand allowed the researcher to tailor questions to capture detailed
insights about the key variables, i.e. employee productivity indicators and
organizational performance. The use of primary data also enhanced the accuracy and
relevance of findings compared to relying on secondary sources, which may lack
specificity or be outdated.

3.5 Questionnaire Development

The questionnaire was meticulously developed to align with the study’s
objectives and to facilitate ease of understanding among respondents. It was prepared
in both English and Nepali to accommodate the linguistic preferences of participants
and improve response accuracy. The questionnaire was divided into two sections: the
first section collected demographic details such as age, gender, caste, religion,

35
education level, duration of employment and monthly salary while the second section
contained items measuring the five independent variables (work efficiency, task
completion rate, work quality, time management and skill utilization) and the
dependent variable (organizational performance). Responses to productivity and
performance-related statements were captured using a five-point Likert scale ranging
from “strongly agree” to “strongly disagree,” enabling quantification of attitudes and
perceptions. Care was taken to ensure clarity, relevance and neutrality in question
phrasing to minimize bias.

3.6 Questionnaire Administration

The questionnaires were administered through direct, face-to-face interaction
with selected employees at their respective workplace locations across the 20
commercial banks. The researcher personally visited the bank branches during
working hours, providing a brief introduction to the study’s purpose, assuring
participants of the confidentiality and anonymity of their responses and emphasizing
the voluntary nature of participation. Participants were encouraged to ask questions
for clarification and were given adequate time to complete the questionnaire
independently to promote thoughtful and honest responses. Data collection was
conducted over a period of one month, from July 15 to August 15, 2025. Throughout
the process, the researcher maintained a respectful and non-intrusive presence,
ensuring minimal disruption to normal work routines.

3.7 Presentation and Analysis of Data

Upon collection, the data were carefully coded and entered into statistical
software for analysis. The research employed both descriptive and inferential
statistical methods to extract meaningful patterns and relationships from the data.
Descriptive statistics, including means, frequencies and percentages, were used to
summarize demographic characteristics and general response trends. Correlation
analysis examined the strength and direction of associations between independent
variables (productivity determinants) and the dependent variable (organizational
performance). Further, multiple regression analysis was performed to assess the
predictive power of the independent variables on organizational performance, thereby
quantifying the impact of employee productivity factors. The findings were
systematically presented using tables, charts and graphical formats to facilitate clear
interpretation and discussion.

36
3.8 Ethical Considerations
This study rigorously adhered to ethical standards to protect the rights and
welfare of all participants. Institutional ethics were observed by obtaining formal
permission from the management of the commercial banks prior to data collection,
ensuring organizational support and cooperation. Regarding respondents’ ethics,
informed consent was secured from each participant after explaining the study’s
objectives, assuring confidentiality and emphasizing the voluntary nature of their
involvement. Participants were informed about their right to withdraw from the study
at any point without consequences. Research ethics principles guided all phases of the
study, including data collection, storage and reporting, to maintain integrity,
transparency and respect for privacy. Data were anonymized to protect individual
identities and findings were used exclusively for academic purposes. The study
complied with all relevant ethical guidelines to foster trust and uphold professional
research conduct.

37
 CHAPTER IV
PRESENTATION AND ANALYSIS OF DATA
This chapter includes data presentation, analysis of data and findings. The
demographic information of the respondents and presentation of data is done using
tables, figures and percentages. The questionnaires were asked with the employees of
commercial banks in Birendranagar municipality, Surkhet, Nepal. The data are
presented and analyzed as follows:

4.1 Personal Information of the Respondents

This section includes the personal information of the respondents like age,
gender, caste, religion, marital status, educational status and duration of employment
which are presented in different sub-sections as follows:

4.1.1 Age Status of the Respondents

Age is the important demographic factor that helps in understanding the

characteristics, maturity level and decision-making pattern of respondents. The
respondents’ ages are classified into four distinct categories as upto 25 years, 26–35
years, 36–45 years and 46 years and above. The table below presents the detailed
information of respondents according to their age distribution.

Table 1

Age Status of the Respondents

Categories Frequency Percent

Upto 25 years 8 6.1
26-35 years 98 76.0
36-45 years 22 17.1
46 years and above 1 0.8
Total 129 100.0
Source: Field Survey, 2082

Table 1 shows the age status of the respondents. Out of the total respondents,
6.1 percent were upto 25 years of age, 76 percent were 26-35 years of age, 17.1
percent were 36-45 years of age and 0.8 percent were 46 years and above of age. The
data shows that majority of the respondents were 26-45 years of age.

The above data have also been presented in figure as follows:

38
Figure 2: Age Status of the Respondents

4.1.2 Gender Status of the Respondents

Gender is the biological and social characteristic that distinguishes individuals

as male or female in a population study. The gender of the respondents is categorized
into two groups as male and female. The following table presents the detailed
information of respondents on the basis of their gender status.

Table 2

Gender Status of the Respondents

Categories Frequency Percent

Male 77 59.7
Female 52 40.3
Total 129 100.0
Source: Field Survey, 2082

Table 2 shows the gender status of the respondents. Among the total
respondents, 59.7 percent were males and 40.3 percent were females. The data shows
that majority of the respondents were males.

The above data have also been presented in figure as follows:

Figure 3: Gender Status of the Respondents

39
4.1.3 Caste Status of the Respondents

Caste is the traditional social stratification system that classifies people into
hierarchical groups based on ancestry, culture and occupation. The caste of the
respondents is categorized into five groups as Brahman, Chhetri, Janajati, Dalit and
Others. The following table presents the detailed information of respondents on the
basis of their caste status.

Table 3

Caste Status of the Respondents

Categories Frequency Percent

Brahman 53 41.1
Chhetri 48 37.2
Janajati 21 16.3
Dalit 3 2.3
Others 4 3.1
Total 129 100.0
Source: Field Survey, 2082

Table 3 shows the caste status of the respondents. Out of the total respondents,
41.1 percent were Brahmans, 37.2 percent were Chhetris, 16.3 percent were Janajatis,
2.3 percent were Dalits and 3.1 percent were other castes. The data shows that
majority of the respondents were Brahmans.

The above data have also been presented in figure as follows:

Figure 4: Caste Status of the Respondents

40
4.1.4 Religious Status of the Respondents

Religion is the system of faith, beliefs and practices that guides people’s
values, behavior and cultural identity in society. The religion of the respondents is
categorized into five groups as Hindu, Buddhist, Christian, Muslim and Others. The
following table presents the detailed information of respondents on the basis of their
religion.
Table 4

Religious Status of the Respondents

Categories Frequency Percent

Hindu 126 97.6
Buddhist 2 1.6
Christian 1 0.8
Muslim 0 0
Others 0 0
Total 129 100.0
Source: Field Survey, 2082

Table 4 shows the religious status of the respondents. Out of the total
respondents, 97.6 percent were Hindus, 1.6 percent were Buddhist and 0.8 percent
were Christians. The data shows that majority of the respondents were Hindus.

The above data have also been presented in figure as follows:

Figure 5: Religious Status of the Respondents

4.1.5 Marital Status of the Respondents

Marital status is the demographic factor that identifies individuals based on

their living arrangements and relationship commitments in family and society. The
marital status of the respondents is categorized into three groups as unmarried,

41
married and married but single. The following table presents the detailed information
of respondents on the basis of their marital status.

Table 5

Marital Status of the Respondents

Categories Frequency Percent

Unmarried 25 19.4

Married 103 79.8

Married but single 1 0.8

Total 129 100.0

Source: Field Survey, 2082

Table 5 shows the marital status of the respondents. Out of the total
respondents, 19.4 percent were unmarried, 79.8 percent were married and 0.8 percent
were married but single. The data shows that majority of the respondents were
married.

The above data have also been presented in figure as follows:

Figure 6: Marital Status of the Respondents

4.1.6 Educational Qualification of the Respondents

Education is the process of acquiring knowledge, skills and values that shapes
individuals’ perspectives, decision-making and socio-economic opportunities in life.
The education level of the respondents is categorized into four groups as upto
SLC/SEE, higher secondary, bachelor and masters and above. The following table

42
presents the detailed information of respondents on the basis of their educational
status.

Table 6

Educational Qualification of the Respondents

Categories Frequency Percent

Upto SLC/SEE 0 0

Higher secondary 2 1.6

Bachelor 49 38.0

Masters and above 78 60.4

Total 129 100.0

Source: Field Survey, 2082

Table 6 shows the educational qualification of the respondents. Out of the total
respondents, 1.6 percent were higher secondary level passed, 38 percent were
bachelor level passed and 60.4 percent were masters and above level passed. The data
shows that majority of the respondents were masters level passed.

The above data have also been presented in figure as follows:

Figure 7: Educational Status of the Respondents

4.1.7 Duration of Employment of the Respondents

Duration of employment is the measure of time respondents have been
engaged in their jobs, reflecting experience, stability and career development. The
duration of employment of the respondents is categorized into four groups as less than

43
1 year, 1–4 years, 5–9 years and more than 10 years. The following table presents the
detailed information of respondents on the basis of their employment duration.
Table 7
Duration of Employment of the Respondents

Categories Frequency Percent

Less than 1 year 5 3.8
1-4 years 37 28.7
5-9 years 66 51.2
10 years and above 21 16.3
Total 129 100.0
Source: Field Survey, 2082

Table 7 shows the duration of employment of the respondents. Out of the total
respondents, 3.8 percent were employed for less than a year, 28.7 percent were
employed for 1-4 years, 51.2 percent were employed for 5-9 years and 16.3 percent
were employed for 10 years and above. The data shows that majority of the
respondents were employed for 5-9 years.
The above data have been presented in figure which is as follows:

Figure 8: Duration of Employment of the Respondents

4.2 Analysis of Independent Variables

This section consists of the responses obtained from the respondents on the
impact of employee productivity due to work efficiency, task completion rate, work
quality, time management and skill utilization on organizational performance in
banking sector. The analysis is presented in different sub-sections as follows:

44
4.2.1 Work Efficiency

Work efficiency as a factor of employee productivity refers to the ability of

employees to complete tasks accurately, within time and with minimal resource
wastage. In the banking sector, higher work efficiency ensures faster customer
service, reduced errors and better handling of financial transactions.

The impact of work efficiency on organizational performance in banking

sector is presented in the following table:

Table 8

Impact of Work Efficiency on Organizational Performance

S. SA A N D SD
Statements M
N. (%) (%) (%) (%) (%)
I believe that working efficiently 82 32 12 1 2
1. helps to improve the overall 4.48
performance of my bank. (63.6) (24.8) (9.3) (0.8) (1.6)
Efficient completion of daily
tasks by employees directly 76 34 13 5 1
2. 4.39
improves the overall (58.9) (26.4) (10.1) (3.9) (0.8)
performance of the bank.
High work efficiency among
staff leads to better customer 76 35 16 1 1
3. 4.43
satisfaction and stronger (58.9) (27.1) (12.4) (0.8) (0.8)
organizational results.
Employee work efficiency
reduces operational delays, 76 35 16 1 1
4. 4.43
positively impacting the bank’s (58.9) (27.1) (12.4) (0.8) (0.8)
performance and profitability.
I feel that my ability to manage 70 40 14 5
5. tasks efficiently contributes 0 4.36
positively to the bank’s success. (54.3) (31) (10.9) (3.9)
Overall Average 4.04
Source: Field Survey, 2082

Table 8 shows the responses on the impact of work efficiency on

organizational performance in the banking sector.
Among the total respondents, 63.6 percent strongly agreed, 24.8 percent
agreed, 9.3 percent were neutral, 0.8 percent disagreed and 1.6 percent strongly
disagreed towards the statement "I believe that working efficiently helps to improve
the overall performance of my bank." The mean of the statement is 4.48 which is

45
higher than the average mean value of 3. This shows that the majority of the
respondents agreed that working efficiently enhances overall bank performance.
Out of the total respondents, 58.9 percent strongly agreed, 26.4 percent agreed,
10.1 percent were neutral, 3.9 percent disagreed and 0.8 percent strongly disagreed
towards the statement "Efficient completion of daily tasks by employees directly
improves the overall performance of the bank." The mean of the statement is 4.39
which is higher than the average mean value of 3. This shows that the majority of the
respondents agreed that efficient task completion directly enhances bank performance.
In this study, 58.9 percent of the respondents strongly agreed, 27.1 percent
agreed, 12.4 percent were neutral, 0.8 percent disagreed and 0.8 percent strongly
disagreed towards the statement "High work efficiency among staff leads to better
customer satisfaction and stronger organizational results." The mean of the statement
is 4.43 which is higher than the average mean value of 3. This shows that the majority
of the respondents agreed that staff efficiency leads to improved customer satisfaction
and organizational outcomes.
Of the total respondents, 58.9 percent strongly agreed, 27.1 percent agreed,
12.4 percent were neutral, 0.8 percent disagreed and 0.8 percent strongly disagreed
towards the statement "Employee work efficiency reduces operational delays,
positively impacting the bank's performance and profitability." The mean of the
statement is 4.43 which is higher than the average mean value of 3. This shows that
the majority of the respondents agreed that work efficiency reduces delays and
positively impacts bank performance and profitability.
Among the total respondents, 54.3 percent strongly agreed, 31.0 percent
agreed, 10.9 percent were neutral and 3.9 percent disagreed towards the statement "I
feel that my ability to manage tasks efficiently contributes positively to the bank's
success." The mean of the statement is 4.36 which is higher than the average mean
value of 3. This shows that the majority of the respondents agreed that their efficient
task management contributes to bank success.
The overall mean value of the statements shows that respondents have a highly
favorable attitude towards the impact of work efficiency on organizational
performance. With an average mean of 4.04, which is significantly above the neutral
point of 3, it can be concluded that work efficiency plays a crucial and positive role in
enhancing organizational performance. Most respondents recognize that efficient

46
work practices contribute to improved bank performance, customer satisfaction,
reduced operational delays and overall organizational success.

4.2.2 Task Completion Rate

Task completion rate as a factor of employee productivity refers to the extent

employees finish assigned duties accurately and within deadlines. In the banking
sector, a higher task completion rate ensures smooth workflow, timely customer
service and reduced backlogs.

The impact of task completion rate on organizational performance in banking

sector is presented in the following table:

Table 9

Impact of Task Completion Rate on Organizational Performance

S. SA A N D SD
Statements M
N. (%) (%) (%) (%) (%)
I believe that completing my
tasks on time significantly 74 38 14 2 1
1. 4.41
improves my bank’s overall (57.3) (29.4) (10.9) (1.6) (0.8)
performance.
Timely completion of tasks by 72 40 14 2 1
2. employees enhances the bank’s 4.40
efficiency and service quality. (55.7) (31) (10.9) (1.6) (0.8)
A higher task completion rate
among staff leads to better 78 36 11 2 2
3. 4.44
operational outcomes for the (60.5) (27.9) (8.5) (1.6) (1.6)
bank.
Consistently meeting deadlines 81 33 13 1 1
4. improves the bank’s productivity 4.49
and customer satisfaction levels. (62.7) (25.6) (10.1) (0.8) (0.8)
I feel that my ability to complete 72 36 14 6 1
5. tasks promptly contributes 4.33
positively to the bank’s success. (55.8) (27.8) (10.9) (4.7) (0.8)
Overall Mean 4.41
Source: Field Survey, 2082

Table 9 shows the responses on the impact of task completion rate on

organizational performance in the banking sector.
Among the total respondents, 57.3 percent strongly agreed, 29.4 percent
agreed, 10.9 percent were neutral, 1.6 percent disagreed and 0.8 percent strongly
disagreed towards the statement "I believe that completing my tasks on time

47
significantly improves my bank's overall performance." The mean of the statement is
4.41 which is higher than the average mean value of 3. This shows that the majority of
the respondents agreed that timely task completion significantly enhances overall
bank performance.
Out of the total respondents, 55.7 percent strongly agreed, 31.0 percent agreed,
10.9 percent were neutral, 1.6 percent disagreed and 0.8 percent strongly disagreed
towards the statement "Timely completion of tasks by employees enhances the bank's
efficiency and service quality." The mean of the statement is 4.40 which is higher
than the average mean value of 3. This shows that the majority of the respondents
agreed that timely task completion enhances bank efficiency and service quality.
In this study, 60.5 percent of the respondents strongly agreed, 27.9 percent
agreed, 8.5 percent were neutral, 1.6 percent disagreed and 1.6 percent strongly
disagreed towards the statement "A higher task completion rate among staff leads to
better operational outcomes for the bank." The mean of the statement is 4.44 which is
higher than the average mean value of 3. This shows that the majority of the
respondents agreed that higher task completion rates lead to improved operational
outcomes.
Of the total respondents, 62.7 percent strongly agreed, 25.6 percent agreed,
10.1 percent were neutral, 0.8 percent disagreed and 0.8 percent strongly disagreed
towards the statement "Consistently meeting deadlines improves the bank's
productivity and customer satisfaction levels." The mean of the statement is 4.49
which is higher than the average mean value of 3. This shows that the majority of the
respondents agreed that meeting deadlines consistently improves productivity and
customer satisfaction.
Among the total respondents, 55.8 percent strongly agreed, 27.8 percent
agreed, 10.9 percent were neutral, 4.7 percent disagreed and 0.8 percent strongly
disagreed towards the statement "I feel that my ability to complete tasks promptly
contributes positively to the bank's success." The mean of the statement is 4.33 which
is higher than the average mean value of 3. This shows that the majority of the
respondents agreed that their prompt task completion contributes positively to bank
success.
The overall mean value of the statements shows that respondents have a highly
positive attitude towards the impact of task completion rate on organizational

48
performance. With an average mean of 4.41, which is significantly above the neutral
point of 3, it can be concluded that task completion rate plays a vital and positive role
in enhancing organizational performance. Most respondents recognize that timely task
completion, meeting deadlines and maintaining high completion rates contribute
substantially to improved bank efficiency, service quality, operational outcomes,
productivity and customer satisfaction.

4.2.3 Work Quality

Work quality as a factor of employee productivity refers to the standard,

accuracy and reliability of tasks performed by employees. In the banking sector, high
work quality minimizes errors in transactions, ensures compliance with regulations
and enhances customer trust.

The impact of work quality on organizational performance in banking sector is

presented in the following table:

Table 10

Impact of Work Quality on Organizational Performance

S. SA A N D SD
Statements M
N. (%) (%) (%) (%) (%)
I believe that maintaining high 79 34 9 3 4
1. quality in my work enhances the 4.40
overall performance of my bank. (61.2) (26.3) (7) (2.3) (3.2)
Consistently delivering quality 83 35 7 3 1
2. work improves the bank’s 4.52
reputation and customer trust. (64.3) (27.2) (5.4) (2.3) (0.8)
High work quality among
employees leads to fewer errors 66 51 9 1 2
3. 4.38
and better organizational (51.2) (39.4) (7) (0.8) (1.6)
outcomes.
Quality-focused work practices
contribute significantly to the 81 34 12 1 1
4. 4.50
bank’s operational efficiency (62.8) (26.3) (9.3) (0.8) (0.8)
and success.
I feel that consistently
improving my work quality 77 38 9 4 1
5. supports my professional 4.44
development and strengthens (59.6) (29.4) (7) (3.2) (0.8)
team performance in the bank.
Overall Average 4.45
Source: Field Survey, 2082

49
 Table 10 shows the responses on the impact of work quality on organizational
performance in the banking sector.
Among the total respondents, 61.2 percent strongly agreed, 26.3 percent
agreed, 7.0 percent were neutral, 2.3 percent disagreed and 3.2 percent strongly
disagreed towards the statement "I believe that maintaining high quality in my work
enhances the overall performance of my bank." The mean of the statement is 4.40
which is higher than the average mean value of 3. This shows that the majority of the
respondents agreed that maintaining high work quality enhances bank performance.
Out of the total respondents, 64.3 percent strongly agreed, 27.2 percent agreed,
5.4 percent were neutral, 2.3 percent disagreed and 0.8 percent strongly disagreed
towards the statement "Consistently delivering quality work improves the bank's
reputation and customer trust." The mean of the statement is 4.52 which is higher than
the average mean value of 3. This shows that the majority of the respondents agreed
that consistent quality work delivery improves bank reputation and customer trust.
In this study, 51.2 percent of the respondents strongly agreed, 39.4 percent
agreed, 7.0 percent were neutral, 0.8 percent disagreed and 1.6 percent strongly
disagreed towards the statement "High work quality among employees leads to fewer
errors and better organizational outcomes." The mean of the statement is 4.38 which
is higher than the average mean value of 3. This shows that the majority of the
respondents agreed that high work quality reduces errors and improves organizational
outcomes.
Of the total respondents, 62.8 percent strongly agreed, 26.3 percent agreed, 9.3
percent were neutral, 0.8 percent disagreed and 0.8 percent strongly disagreed towards
the statement "Quality-focused work practices contribute significantly to the bank's
operational efficiency and success." The mean of the statement is 4.50, higher than
the average mean value of 3. This shows that majority of respondents agreed that
quality-focused practices significantly contribute to operational efficiency and
success.
Among the total respondents, 59.6 percent strongly agreed, 29.4 percent
agreed, 7.0 percent were neutral, 3.2 percent disagreed and 0.8 percent strongly
disagreed towards the statement "I feel that consistently improving my work quality
supports my professional development and strengthens team performance within the
bank." The mean of the statement is 4.44 which is higher than the average mean value

50
of 3. This shows that the majority of the respondents agreed that improving work
quality supports professional development and strengthens team performance.
The overall mean value of the statements shows that respondents have an
exceptionally positive attitude towards the impact of work quality on organizational
performance. With an average mean of 4.45, which is significantly above the neutral
point of 3, it can be concluded that work quality plays a critical and highly positive
role in enhancing organizational performance. Most respondents recognize that
maintaining high work quality, delivering consistent quality outputs and focusing on
quality-oriented practices contribute substantially to improved bank performance.

4.2.4 Time Management

Time management as a factor of employee productivity refers to how

effectively employees plan, prioritize and utilize their working hours. In the banking
sector, efficient time management ensures timely completion of tasks, reduces delays
in customer service and optimizes workflow.

The impact of time management on organizational performance in banking

sector is presented in the following table:

Table 11

Impact of Time Management on Organizational Performance

S. SA A N D SD
Statements M
N. (%) (%) (%) (%) (%)
I believe that managing my time
63 52 9 4 1
1. effectively helps improve the 4.33
(48.7) (40.3) (7) (3.2) (0.8)
overall performance of my bank.
Effective time management by
employees leads to increase 66 49 13 1
2. 0 4.40
productivity and smoother bank (51.1) (38) (10.1) (0.8)
operations.
Proper time management ensures
tasks are completed on schedule, 66 48 12 3
3. 0 4.37
enhancing organizational (51.2) (37.2) (9.3) (2.3)
performance.
Employees who manage their time
68 46 15
4. well contribute to higher customer 0 0 4.41
(52.7) (35.7) (11.6)
satisfaction and better results.
I feel that my ability to manage
64 47 15 3
5. time efficiently plays a key role in 0 4.31
(49.6) (36.5) (11.6) (2.3)
the bank’s success.
Overall Average 4.36
Source: Field Survey, 2082

51
 Table 11 shows the responses on the impact of time management on
organizational performance in the banking sector.
Among the total respondents, 48.7 percent strongly agreed, 40.3 percent
agreed, 7.0 percent were neutral, 3.2 percent disagreed and 0.8 percent strongly
disagreed towards the statement "I believe that managing my time effectively helps
improve the overall performance of my bank." The mean of the statement is 4.33,
higher than average mean value of 3. This shows that the majority of the respondents
agreed that effective time management improves overall bank performance.
Out of the total respondents, 51.1 percent strongly agreed, 38.0 percent agreed,
10.1 percent were neutral and 0.8 percent disagreed towards the statement "Effective
time management by employees leads to increase productivity and smoother bank
operations." The mean of the statement is 4.40 which is higher than the average mean
value of 3. This shows that the majority of the respondents agreed that effective time
management increases productivity and ensures smoother operations.
In this study, 51.2 percent of the respondents strongly agreed, 37.2 percent
agreed, 9.3 percent were neutral and 2.3 percent disagreed towards the statement
"Proper time management ensures tasks are completed on schedule, enhancing
organizational performance." The mean of the statement is 4.37 which is higher than
the average mean value of 3. This shows that the majority of the respondents agreed
that proper time management ensures timely task completion and enhances
organizational performance.
Of the total respondents, 52.7 percent strongly agreed, 35.7 percent agreed,
11.6 percent were neutral, 0 percent disagreed and 0 percent strongly disagreed
towards the statement "Employees who manage their time well contribute to higher
customer satisfaction and better results." The mean of the statement is 4.41 which is
higher than the average mean value of 3. This shows that the majority of the
respondents agreed that effective time management contributes to higher customer
satisfaction and better results.
Among the total respondents, 49.6 percent strongly agreed, 36.5 percent
agreed, 11.6 percent were neutral and 2.3 percent strongly disagreed towards the
statement "I feel that my ability to manage time efficiently plays a key role in the
bank's success." The mean of the statement is 4.31 which is higher than the average

52
mean value of 3. This shows that the majority of the respondents agreed that their
efficient time management plays a key role in bank success.
The overall mean value of the statements shows that respondents have a highly
favorable attitude towards the impact of time management on organizational
performance. With an average mean of 4.36, which is significantly above the neutral
point of 3, it can be concluded that time management plays a crucial and positive role
in enhancing organizational performance. Most respondents recognize that effective
time management, proper scheduling and efficient time utilization contribute
substantially to improved bank performance, productivity, operational smoothness,
customer satisfaction and overall organizational success.

4.2.5 Skill Utilization

Skill utilization as a factor of employee productivity refers to the effective use

of employees’ knowledge, expertise and abilities in performing their tasks. In the
banking sector, proper skill utilization ensures that employees handle complex
transactions efficiently, provide accurate financial advice and solve problems.

The impact of skill utilization on organizational performance in banking sector

is presented in the following table:

Table 12

Impact of Skill Utilization on Organizational Performance

S. SA A N D SD
M
N. (%) (%) (%) (%) (%)
I believe that using my skills
62 47 16 2 2
1. effectively enhances the overall 4.28
(48.1) (36.3) (12.4) (1.6) (1.6)
performance of my bank.
Proper utilization of employees’
67 43 14 4 1
2. skills improves the bank’s 4.33
(51.8) (33.3) (10.9) (3.2) (0.8)
efficiency and service delivery.
When employees’ skills are fully
78 39 8 2 2
3. utilized, the bank achieves better 4.47
(60.4) (30.2) (6.2) (1.6) (1.6)
operational outcomes.
Skillful performance by staff
contributes significantly to the 62 51 15 1
4. 0 4.35
bank’s competitive advantage and (48.1) (39.5) (11.6) (0.8)
growth.
I feel that my ability to apply my
72 39 10 5 3
5. skills effectively positively 4.33
(55.8) (30.2) (7.8) (3.9) (2.3)
impacts the bank’s success.
Overall Average 4.35
Source: Field Survey, 2082

53
 Table 12 shows the responses on the impact of skill utilization on
organizational performance in the banking sector.
Among the total respondents, 48.1 percent strongly agreed, 36.3 percent
agreed, 12.4 percent were neutral, 1.6 percent disagreed and 1.6 percent strongly
disagreed towards the statement "I believe that using my skills effectively enhances
the overall performance of my bank." The mean of the statement is 4.28 which is
higher than the average mean value of 3. This shows that the majority of the
respondents agreed that effective skill utilization enhances overall bank performance.
Out of the total respondents, 51.8 percent strongly agreed, 33.3 percent agreed,
10.9 percent were neutral, 3.2 percent disagreed and 0.8 percent strongly disagreed
towards the statement "Proper utilization of employees' skills improves the bank's
efficiency and service delivery." The mean of the statement is 4.33 which is higher
than the average mean value of 3. This shows that the majority of the respondents
agreed that proper skill utilization improves bank efficiency and service delivery.
In this study, 60.4 percent of the respondents strongly agreed, 30.2 percent
agreed, 6.2 percent were neutral, 1.6 percent disagreed and 1.6 percent strongly
disagreed towards the statement "When employees' skills are fully utilized, the bank
achieves better operational outcomes." The mean of the statement is 4.47 which is
higher than the average mean value of 3. This shows that the majority of the
respondents agreed that full skill utilization leads to better operational outcomes.
Of the total respondents, 48.1 percent strongly agreed, 39.5 percent agreed,
11.6 percent were neutral and 0.8 percent disagreed towards the statement "Skillful
performance by staff contributes significantly to the bank's competitive advantage and
growth." The mean of the statement is 4.35 which is higher than the average mean
value of 3. This shows that the majority of the respondents agreed that skillful
performance contributes significantly to competitive advantage and growth.
Among the total respondents, 55.8 percent strongly agreed, 30.2 percent
agreed, 7.8 percent were neutral, 3.9 percent disagreed and 2.3 percent strongly
disagreed towards the statement "I feel that my ability to apply my skills effectively
positively impacts the bank's success." The mean of the statement is 4.33 which is
higher than the average mean value of 3. This shows that the majority of the
respondents agreed that effective skill application positively impacts bank success.

54
 The overall mean value of the statements shows that respondents have a highly
positive attitude towards the impact of skill utilization on organizational performance.
With an average mean of 4.35, which is significantly above the neutral point of 3, it
can be concluded that skill utilization plays a vital and positive role in enhancing
organizational performance.

4.3 Analysis of Dependent Variable

Organizational performance in the banking sector is significantly influenced

by employee productivity factors such as work efficiency, task completion rate, work
quality, time management and skill utilization. High performance in these areas leads
to faster service delivery, accurate transactions, effective problem-solving and optimal
use of resources.

This section consists of the responses obtained from the respondents on the
impact of employee productivity on organizational performance in banking sector
which are presented in the following table:

Table 13

Impact of Employee Productivity on Organizational Performance

S. SA A N D SD
Statements M
N. (%) (%) (%) (%) (%)
The employees in the bank are
efficient enough to consistently 75 40 10 4
1. 0 4.44
improve overall organizational (58.1) (31) (7.8) (3.1)
performance.
The bank’s task completion rate
by employees directly 53 45 15 6
2. 0 4.28
contributes to achieving its (48.8) (34.9) (11.6) (4.7)
organizational goals.
High quality of work by
employees positively influences 70 36 14 6 3
3. 4.27
the bank’s reputation and (54.3) (27.9) (10.9) (4.7) (2.3)
performance outcomes.
Effective time management by
staff enhances the bank’s ability 55 40 13 7 3
4. 4.23
to meet deadlines and (51.2) (31) (10.1) (5.4) (2.3)
organizational targets.
The proper utilization of
employees’ skills significantly 58 42 15 9 5
5. 4.08
supports the bank’s growth and (45) (32.6) (11.6) (7) (3.9)
competitive position.
Overall Average 4.26
Source: Field Survey, 2082

55
 Table 13 presents the responses on the impact of employee productivity on
organizational performance in the banking sector. Among the total respondents, 58.1
percent strongly agreed, 31.0 percent agreed, 7.8 percent were neutral, and 3.1 percent
disagreed with the statement "The employees in the bank are efficient enough to
consistently improve overall organizational performance." The mean value of 4.44,
which is higher than the average mean of 3, indicates that most respondents agreed
that bank employees are efficient in enhancing overall organizational performance.

Similarly, 48.8 percent strongly agreed, 34.9 percent agreed, 11.6 percent were
neutral, and 4.7 percent disagreed with the statement "The bank’s task completion rate
by employees directly contributes to achieving its organizational goals." The mean
value of 4.28 signifies a strong agreement that employees’ task completion
contributes positively to achieving organizational goals.

In the next statement, 54.3 percent strongly agreed, 27.9 percent agreed, 10.9
percent were neutral, 4.7 percent disagreed, and 2.3 percent strongly disagreed that
"High quality of work by employees positively influences the bank’s reputation and
performance outcomes." The mean value of 4.27 indicates that the majority of
respondents recognized the importance of work quality in improving reputation and
performance.

Further, 51.2 percent strongly agreed, 31.0 percent agreed, 10.1 percent were
neutral, 5.4 percent disagreed, and 2.3 percent strongly disagreed with the statement
"Effective time management by staff enhances the bank’s ability to meet deadlines
and organizational targets." The mean score of 4.23 suggests that most respondents
agreed that efficient time management strengthens organizational performance.

Likewise, 45.0 percent strongly agreed, 32.6 percent agreed, 11.6 percent were
neutral, 7.0 percent disagreed, and 3.9 percent strongly disagreed with the statement
"The proper utilization of employees’ skills significantly supports the bank’s growth
and competitive position." The mean of 4.08, being above the neutral value of 3,
reflects a general consensus that effective skill utilization contributes to the bank’s
growth and competitiveness.

The overall mean value of the statements shows that respondents have a highly
favorable attitude towards the impact of employee productivity on organizational
performance. With an average mean of 4.26, which is significantly above the neutral

56
point of 3, it can be concluded that employee productivity plays a crucial and positive
role in enhancing organizational performance. Most respondents recognize that
employee efficiency, task completion rates, work quality, time management and skill
utilization contribute substantially to improved organizational performance, goal
achievement, reputation enhancement, deadline management and competitive
positioning.

4.4 Inferential Analysis

Inferential analysis for this study was conducted to examine the relationship
between the five independent variables such as work efficiency, task completion rate,
work quality, time management and skill utilization and the dependent variable,
organizational performance. Descriptive statistics were first used to summarize and
understand the central tendencies and variability of the data. Pearson’s correlation
analysis was then applied to measure the strength and direction of linear relationships
between each independent variable and organizational performance. Finally,
regression analysis was employed to assess the predictive influence of these
productivity factors on organizational performance, identifying which variables
significantly contribute to enhancing overall effectiveness in the banking sector.

In this study, descriptive statistics, Pearson's correlation analysis and

regression analysis have been used to establish the relationship between the
independent and the dependent variables:

4.4.1 Descriptive Statistics

Descriptive statistics summarize and organize data to help understand its main
features. They include measures like mean, median, mode, standard deviation and
percentages. Descriptive statistics provide a clear overview of data patterns, making it
easier to interpret and communicate key information without drawing conclusions
beyond the data.

Descriptive statistics were used in this study to summarize and present the
basic features of the data related to the five independent variables such as work
efficiency (WE), task completion rate (TCR), work quality (WQ), time management
(TM) and skill utilization (SU) and the dependent variable organizational performance
(OP). Measures such as mean, standard deviation, frequency and percentage were

57
calculated to provide an overview of respondents’ performance levels and patterns.
This analysis helped in identifying trends, variations and central tendencies within the
dataset, offering a clear understanding of how employees perform across different
productivity factors and how these factors relate to overall organizational performance
in the banking sector.

The results of descriptive statistics are presented in the following table:

Table 14

Descriptive Statistics

Variables N Minimum Maximum Mean Std. Deviation

OP 129 1.00 5.00 4.3400 .84929
WE 129 1.00 5.00 4.0400 .83491
TCR 129 1.00 5.00 4.4100 .82550
WQ 129 1.00 5.00 4.4500 .81931
TM 129 1.00 5.00 4.3600 .78711
SU 129 1.00 5.00 4.3500 .86147

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Variance

OP 129 1.00 5.00 1.7209 .93522 .875

WE 129 1.00 4.00 1.5581 .76961 .592
TCR 129 1.00 4.00 1.7209 .84758 .718
WQ 129 1.00 5.00 1.7287 .99020 .980
TM 129 1.00 5.00 1.7287 .96624 .934
SU 129 1.00 5.00 1.9147 1.08995 1.188
Valid N (listwise) 129

The descriptive statistics for the study variables show data from 129
respondents. Organizational Performance (OP) had a mean score of 4.34 with a

58
standard deviation of 0.85, indicating relatively high performance levels with
moderate variation in responses. Work Efficiency (WE) showed a mean score of 4.04
with a standard deviation of 0.83, suggesting good efficiency levels with consistent
perceptions among respondents. Task Completion Rate (TCR) demonstrated a mean
of 4.41 with a standard deviation of 0.83, reflecting high task completion performance
with moderate variability. Work Quality (WQ) had the highest mean score of 4.45
with a standard deviation of 0.82, indicating excellent quality levels and relatively
consistent responses. Time Management (TM) showed a mean of 4.36 with the lowest
standard deviation of 0.79, suggesting strong time management practices with the
most consistent perceptions among all variables. Skill Utilization (SU) had a mean
score of 4.35 with a standard deviation of 0.86, reflecting effective skill utilization
with slightly higher variability. Overall, the data reflect high agreement levels across
all variables, with means consistently above 4.0, indicating strong positive
perceptions of organizational performance and productivity-related factors.

4.4.2 Pearson's Correlation

Pearson’s correlation is a statistical measure that quantifies the strength and

direction of the linear relationship between two continuous variables. It produces a
coefficient value ranging from -1 to +1. A value close to +1 indicates a strong positive
relationship, meaning as one variable increases, the other also increases. A value near
-1 indicates a strong negative relationship, where one variable increases as the other
decreases. A value around 0 suggests no linear relationship. Pearson’s correlation
shows the degree of association or relationship between variables but does not prove
causation or impact. It helps identify whether and how strongly variables are related.

Pearson’s correlation analysis was conducted to examine the strength and

direction of linear relationships between the five independent variables such as work
efficiency, task completion rate, work quality, time management and skill utilization
and the dependent variable, organizational performance.

Pearson's correlation has been applied to find out the relationship of different
factors such as work efficiency (WE), task completion rate (TCR), work quality
(WQ), time management (TM) and skill utilization (SU) with the dependent variable
organizational performance (OP) which is presented in the following table:

Table 15

59
Pearson's Correlations

Variables OP WE TCR WQ TM SU
OP 1
WE .945** 1
**
TCR .944 .989** 1
** **
WQ .922 .961 .961** 1
** ** **
TM .974 .921 .932 .906** 1
SU .979** .944** .955** .932** .964** 1
**. Correlation is significant at the 0.01 level (2-tailed).

Correlations

OP WE TCR WQ TM SU
** ** ** **
Pearson Correlation 1 .924 .965 .972 .953 .927**

OP Sig. (2-tailed) .000 .000 .000 .000 .000

N 129 129 129 129 129 129

** ** ** **
Pearson Correlation .924 1 .899 .938 .930 .914**
WE Sig. (2-tailed) .000 .000 .000 .000 .000
N 129 129 129 129 129 129
** ** ** **
Pearson Correlation .965 .899 1 .942 .928 .938**
TCR Sig. (2-tailed) .000 .000 .000 .000 .000
N 129 129 129 129 129 129
** ** ** **
Pearson Correlation .972 .938 .942 1 .959 .927**
WQ Sig. (2-tailed) .000 .000 .000 .000 .000
N 129 129 129 129 129 129
** ** ** **
Pearson Correlation .953 .930 .928 .959 1 .935**
TM Sig. (2-tailed) .000 .000 .000 .000 .000
N 129 129 129 129 129 129
** ** ** ** **
Pearson Correlation .927 .914 .938 .927 .935 1

SU Sig. (2-tailed) .000 .000 .000 .000 .000

N 129 129 129 129 129 129

**. Correlation is significant at the 0.01 level (2-tailed).

Organizational Performance (OP) and Work Efficiency (WE)

The correlation between OP and WE is extremely strong and positive, with a
Pearson correlation coefficient of 0.945 (p = 0.000). This indicates that higher work

60
efficiency is closely associated with improved organizational performance. Ensuring
that employees work efficiently likely enhances overall organizational outcomes and
productivity.
Organizational Performance (OP) and Task Completion Rate (TCR)
The correlation between OP and TCR is extremely strong and positive, with a
coefficient of 0.944 (p = 0.000). This suggests that when employees complete their
tasks at higher rates and meet deadlines consistently, organizational performance
levels are significantly enhanced.
Organizational Performance (OP) and Work Quality (WQ)
The correlation between OP and WQ is very strong and positive, with a
coefficient of 0.922 (p = 0.000). This implies that maintaining high standards of work
quality substantially contributes to organizational performance, though it shows
slightly less correlation compared to other factors.
Organizational Performance (OP) and Time Management (TM)
The correlation between OP and TM is the strongest among all variables, with
a coefficient of 0.974 (p = 0.000). This indicates that effective time management
practices have the most significant impact on organizational performance, suggesting
that proper time utilization is crucial for organizational success.
Organizational Performance (OP) and Skill Utilization (SU)
The correlation between OP and SU is extremely strong and positive, with a
coefficient of 0.979 (p = 0.000). This shows that the proper utilization of employee
skills contributes meaningfully to organizational performance, ranking as the second
most influential factor after time management.
All five independent variables such as work efficiency, task completion rate,
work quality, time management and skill utilization are strongly and positively
correlated with organizational performance. This suggests that improvements in any
of these areas can significantly enhance organizational performance levels, with time
management being the most influential factor, followed closely by skill utilization.

4.4.3 Regression Analysis

Regression analysis is a statistical method used to examine the relationship

between one dependent variable and one or more independent variables. It helps to

61
understand how changes in the independent variables predict or explain changes in the
dependent variable. Regression analysis was employed in this study to determine the
predictive effect of the five independent variables such as work efficiency, task
completion rate, work quality, time management and skill utilization on the dependent
variable, organizational performance. This analysis quantified how much each
productivity factor contributes to explaining variations in organizational performance.
By assessing the regression coefficients and significance levels, it identified which
factors have a significant impact and the extent of their influence.

Model Summary

The model summary provides an overview of the regression analysis

examining the impact of work efficiency, task completion rate, work quality, time
management and skill utilization on organizational performance. It includes key
indicators such as R, R² and adjusted R² values. The R value shows the strength of the
relationship between the independent variables and organizational performance while
R² indicates the proportion of variance in organizational performance explained by
these productivity factors. The adjusted R² accounts for the number of predictors,
providing a more accurate measure of model fit. This summary demonstrates how
well the selected factors collectively predict organizational performance in the
banking sector.

Table 16

Model Summary of Regression Analysis

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .989a .977 .976 .13073
a. Predictors: (Constant), WE, TCR, WQ, TM, SU

Model Summary

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .984a .969 .967 .16868

a. Predictors: (Constant), SU, WE, TCR, TM, WQ

62
 The Model Summary shows the results of multivariate regression analysis
examining the relationship between organizational performance and the independent
variables work efficiency, task completion rate, work quality, time management and
skill utilization. The model summary indicates an exceptionally strong positive
correlation between these independent variables and organizational performance, with
an R value of 0.989. The R Square value of 0.977 means that approximately 97.7% of
the variability in organizational performance can be explained by these five variables,
demonstrating the model's exceptionally high explanatory power. The adjusted R
Square value of 0.976 confirms the model's robustness after accounting for the
number of predictors. The standard error of the estimate is 0.13073, indicating a very
small average deviation between observed values and predicted values, reflecting high
accuracy of the model's predictions.
ANOVA
ANOVA (Analysis of Variance) was conducted to assess the overall
significance of the regression model examining the influence of work efficiency, task
completion rate, work quality, time management and skill utilization on
organizational performance. This test determined whether the combined effect of
these independent variables significantly predicts variations in the dependent variable.
The F-value and its corresponding significance level were evaluated to check the
model’s reliability. A significant result indicates that the model explains a substantial
portion of the variance in organizational performance.

The results of ANOVA are presented in the following table:

Table 17
ANOVA
Model Sum of Squares df Mean Square F Sig.
Regression 90.224 5 18.045 1055.913 .000b
1 Residual 2.102 123 .017
Total 92.326 128
a. Dependent Variable: OP
b. Predictors: (Constant), WE, TCR, WQ, TM, SU

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 108.454 5 21.691 762.312 .000b

63
 Residual 3.500 123 .028

Total 111.953 128

a. Dependent Variable: OP
b. Predictors: (Constant), SU, WE, TCR, TM, WQ

The ANOVA table provides insights into the overall significance of the
regression model and the relationship between the independent variables (work
efficiency, task completion rate, work quality, time management and skill utilization)
and the dependent variable (organizational performance). The sum of squares for
regression is 90.224, representing the total variation explained by the model, with
degrees of freedom for regression at 5, corresponding to the five independent
variables. The mean square for regression, calculated by dividing the regression sum
of squares by its degrees of freedom, is 18.045. The F value of 1055.913 indicates that
the regression model fits the data exceptionally well. The significance level (p-value)
is 0.000, showing that the model is statistically significant at the 0.01 level and that
the independent variables collectively have a highly significant impact on
organizational performance. The sum of squares for the residual is 2.102, representing
the variation not explained by the model, with degrees of freedom at 123. The mean
square for the residual is 0.017, calculated by dividing the residual sum of squares by
its degrees of freedom. The total sum of squares, which measures the total variation in
organizational performance, is 92.326.

Coefficient

The coefficients in the regression analysis indicate the individual impact of

each independent variable such as work efficiency, task completion rate, work quality,
time management and skill utilization on organizational performance. Each
coefficient shows the expected change in organizational performance for a one-unit
change in the respective productivity factor, holding other variables constant. The
significance (p-value) of each coefficient identifies which factors have a statistically
meaningful effect. Positive coefficients suggest that higher levels of these factors
improve organizational performance while negative coefficients indicate a potential
inverse relationship.

64
 The result of coefficient of multiple regression analysis is presented in the
following table:

Table 18

Coefficient of Multiple Regression Analysis

Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
1 (Constant) -.016 .027 -.579 .564
WE .523 .096 .514 5.428 .000
TCR -.432 .105 -.420 -4.107 .000
WQ -.045 .054 -.044 -.839 .403
TM .454 .056 .421 8.152 .000
SU .523 .063 .530 8.314 .000
a. Dependent Variable: OP
The table above shows the coefficients from a multiple regression analysis,
which helps to understand the relationship between each independent variable (Work
Efficiency, Task Completion Rate, Work Quality, Time Management and Skill
Utilization) and the dependent variable (Organizational Performance). The table
presents both unstandardized coefficients (B) and standardized coefficients (Beta),
along with their standard errors, t-values and significance levels (Sig.). These metrics
allow us to assess the strength and significance of each predictor's relationship with
organizational performance.
Work Efficiency and Organizational Performance
The unstandardized coefficient (B) for Work Efficiency is 0.523, with a
standard error of 0.096, indicating a strong positive and statistically significant
relationship with organizational performance (t = 5.428, p = 0.000). The standardized
coefficient (Beta) is 0.514, suggesting that work efficiency has a substantial positive
influence on organizational performance. This implies that improvements in work
efficiency lead to significant enhancements in organizational performance.
Task Completion Rate and Organizational Performance
The unstandardized coefficient (B) for Task Completion Rate is -0.432, with a
standard error of 0.105, indicating a negative and statistically significant relationship
with organizational performance (t = -4.107, p = 0.000). The standardized coefficient
(Beta) is -0.420, showing an unexpected inverse relationship. This suggests that in the

65
presence of other variables, task completion rate alone may not directly contribute to
organizational performance as expected.
Work Quality and Organizational Performance
The unstandardized coefficient (B) for Work Quality is -0.045, with a standard
error of 0.054, indicating a negative but statistically insignificant relationship with
organizational performance (t = -0.839, p = 0.403). The standardized coefficient
(Beta) is -0.044, suggesting that work quality does not significantly influence
organizational performance when other factors are controlled for.
Time Management and Organizational Performance
The unstandardized coefficient (B) for Time Management is 0.454, with a
standard error of 0.056, indicating a strong positive and statistically significant
relationship with organizational performance (t = 8.152, p = 0.000). The standardized
coefficient (Beta) is 0.421, making time management one of the most influential
predictors in the model. This suggests that effective time management practices
significantly enhance organizational performance.
Skill Utilization and Organizational Performance
The unstandardized coefficient (B) for Skill Utilization is 0.523, with a
standard error of 0.063, indicating a strong positive and statistically significant
relationship with organizational performance (t = 8.314, p = 0.000). The standardized
coefficient (Beta) is 0.530, making skill utilization the most influential predictor in the
model. This suggests that proper utilization of employee skills has the strongest
positive impact on organizational performance.
The regression analysis shows that Work Efficiency, Time Management and
Skill Utilization are significant positive predictors of organizational performance,
with Skill Utilization having the strongest positive effect, followed by Work
Efficiency and Time Management. Task Completion Rate and Work Quality while
conceptually important, do not significantly contribute positively to organizational
performance in this model when other factors are controlled for. Therefore,
organizations aiming to enhance performance should focus on maximizing skill
utilization, improving work efficiency and strengthening time management practices.

4.5 Major Findings

66
 On the basis of the presentation and analysis of data, the following findings
have been drawn:

4.5.1 Personal Information of the Respondents

1. The study found that 76.0 percent of the respondents were aged 26-35 years
whereas only 6.1 percent were aged up to 25 years.
2. It is found that 59.7 percent of the respondents were male while only 40.3
percent were female.
3. In this study, 41.1 percent of the respondents belonged to the Brahman caste
whereas 37.2 percent were from Chhetri caste and only 2.3 percent were from
Dalit caste.
4. It has been found that 97.6 percent of the respondents were Hindu while only
1.6 percent were Buddhist and 0.8 percent were Christians.
5. It can be found that 79.8 percent of the respondents were married whereas
only 19.4 percent were unmarried.
6. The study revealed that 60.4 percent of the respondents had masters and above
level education while 38.0 percent had bachelor level education.
7. It was observed that 51.2 percent of the respondents were employed for 5-9
years whereas 28.7 percent were employed for 1-4 years.

4.5.2 Findings from Independent Variables

Work Efficiency
1. In this study, it was found that 63.6 percent of respondents strongly agreed
while 1.6 percent strongly disagreed that working efficiently helps to improve
the overall performance of their bank.
2. The study revealed that 58.9 percent of respondents strongly agreed whereas
0.8 percent strongly disagreed that efficient completion of daily tasks by
employees directly improves the overall performance of the bank.
3. It is observed that 58.9 percent of respondents strongly agreed while 0.8
percent strongly disagreed that high work efficiency among staff leads to
better customer satisfaction and stronger organizational results.
4. Among the total respondents, 58.9 percent strongly agreed whereas 0.8
percent strongly disagreed that employee work efficiency reduces operational
delays, positively impacting the bank's performance and profitability.
67
5. According to the findings, 54.3 percent of respondents strongly agreed while
3.9 percent disagreed that their ability to manage tasks efficiently contributes
positively to the bank's success.
Task Completion Rate
1. In this study, it was found that 57.3 percent of respondents strongly agreed
while 0.8 percent strongly disagreed that completing tasks on time
significantly improves their bank's overall performance.
2. The study revealed that 55.7 percent of respondents strongly agreed whereas
0.8 percent strongly disagreed that timely completion of tasks by employees
enhances the bank's efficiency and service quality.
3. It is observed that 60.5 percent of respondents strongly agreed while 1.6
percent strongly disagreed that a higher task completion rate among staff leads
to better operational outcomes for the bank.
4. Among the total respondents, 62.7 percent strongly agreed whereas 0.8
percent strongly disagreed that consistently meeting deadlines improves the
bank's productivity and customer satisfaction levels.
5. According to the findings, 55.8 percent of respondents strongly agreed while
0.8 percent strongly disagreed that their ability to complete tasks promptly
contributes positively to the bank's success.
Work Quality
1. In this study, it was found that 61.2 percent of respondents strongly agreed
while 3.2 percent strongly disagreed that maintaining high quality in their
work enhances the overall performance of their bank.
2. The study revealed that 64.3 percent of respondents strongly agreed whereas
0.8 percent strongly disagreed that consistently delivering quality work
improves the bank's reputation and customer trust.
3. It is observed that 51.2 percent of respondents strongly agreed while 1.6
percent strongly disagreed that high work quality among employees leads to
fewer errors and better organizational outcomes.
4. Among the total respondents, 62.8 percent strongly agreed whereas 0.8
percent strongly disagreed that quality-focused work practices contribute
significantly to the bank's operational efficiency and success.

68
5. According to the findings, 59.6 percent of respondents strongly agreed while
0.8 percent strongly disagreed that consistently improving work quality
supports professional development and strengthens team performance within
the bank.
Time Management
1. In this study, it was found that 48.7 percent of respondents strongly agreed
while 0.8 percent strongly disagreed that managing time effectively helps
improve the overall performance of their bank.
2. The study revealed that 51.1 percent of respondents strongly agreed whereas
0.8 percent disagreed that effective time management by employees leads to
increased productivity and smoother bank operations.
3. It is observed that 51.2 percent of respondents strongly agreed while 2.3
percent disagreed that proper time management ensures tasks are completed
on schedule, enhancing organizational performance.
4. Among the total respondents, 52.7 percent strongly agreed whereas none
disagreed that employees who manage their time well contribute to higher
customer satisfaction and better results.
5. According to the findings, 49.6 percent of respondents strongly agreed while
2.3 percent strongly disagreed that their ability to manage time efficiently
plays a key role in the bank's success.
Skill Utilization
1. In this study, it was found that 48.1 percent of respondents strongly agreed
while 1.6 percent strongly disagreed that using their skills effectively enhances
the overall performance of their bank.
2. The study revealed that 51.8 percent of respondents strongly agreed whereas
0.8 percent strongly disagreed that proper utilization of employees' skills
improves the bank's efficiency and service delivery.
3. It is observed that 60.4 percent of respondents strongly agreed while 1.6
percent strongly disagreed that when employees' skills are fully utilized, the
bank achieves better operational outcomes.

69
4. Among the total respondents, 48.1 percent strongly agreed whereas 0.8
percent disagreed that skillful performance by staff contributes significantly to
the bank's competitive advantage and growth.
5. According to the findings, 55.8 percent of respondents strongly agreed while
2.3 percent strongly disagreed that their ability to apply skills effectively
positively impacts the bank's success.

4.5.3 Findings from Dependent Variable

1. The study found that 51.9 percent of respondents strongly agreed while none
disagreed that the employees in the bank are efficient enough to consistently
improve overall organizational performance.
2. It was observed that 44.2 percent of respondents strongly agreed whereas 0.8
percent disagreed that the bank's task completion rate by employees directly
contributes to achieving its organizational goals.
3. Among the respondents, 55.0 percent strongly agreed while 3.1 percent
disagreed that high quality of work by employees positively influences the
bank's reputation and performance outcomes.
4. The findings show that 55.8 percent of respondents strongly agreed while 3.9
percent disagreed that effective time management by staff enhances the bank's
ability to meet deadlines and organizational targets.
5. It is noted that 48.8 percent of respondents strongly agreed whereas 3.9
percent strongly disagreed that the proper utilization of employees' skills
significantly supports the bank's growth and competitive position.

4.5.4 Findings from Inferential Analysis

Descriptive Statistics
1. The study found that work quality (WQ) had the highest mean score of 4.45,
indicating that respondents rated the quality of their work as the most
developed aspect among all employee productivity factors.
2. Task completion rate (TCR) showed a mean score of 4.41, reflecting high
levels of timely task completion among bank employees.
3. Organizational performance (OP) had a mean score of 4.34, suggesting that
respondents perceived their bank's overall performance as strong.

70
4. Skill utilization (SU) and time management (TM) had mean scores of 4.35 and
4.36 respectively, indicating effective use of employee capabilities and time
management practices.
5. Work efficiency (WE) had the lowest mean score of 4.04 among all variables,
though still indicating high efficiency levels among employees.
6. Standard deviations ranged from 0.787 (TM) to 0.861 (SU), showing
relatively low variability in responses and consistent perceptions across all
productivity factors.
7. The minimum and maximum scores across all variables spanned from 1.00 to
5.00, indicating a full range of responses from low to high agreement across
different employee productivity dimensions.
Pearson's Correlations
1. The study found a very strong positive correlation (r = .979, p < .01) between
organizational performance (OP) and skill utilization (SU), indicating that
effective skill use is most strongly associated with organizational performance.
2. Time management (TM) showed the strongest correlation with organizational
performance (OP) (r = .974, p < .01), suggesting that effective time
management practices are critical for organizational success.
3. Work efficiency (WE) exhibited a very strong positive correlation with
organizational performance (OP) (r = .945, p < .01), implying that efficient
work practices significantly enhance organizational outcomes.
4. Task completion rate (TCR) was highly correlated with organizational
performance (OP) (r = .944, p < .01), indicating that timely task completion
strongly supports organizational effectiveness.
5. Work quality (WQ) had a strong positive correlation with organizational
performance (OP) (r = .922, p < .01), showing that quality work contributes
meaningfully to organizational success.
6. All employee productivity variables were significantly intercorrelated at the
0.01 level, demonstrating a high degree of overlap and interdependence among
different dimensions of employee productivity.

71
7. The strongest inter-variable correlation was observed between work efficiency
(WE) and task completion rate (TCR) (r = .989, p < .01), indicating that these
two productivity factors are closely related.
Model Summary
1. The study found a very strong multiple correlation coefficient (R = 0.989),
indicating an exceptionally strong combined relationship between the
productivity factors and organizational performance.
2. It is observed that the predictors, including work efficiency (WE), task
completion rate (TCR), work quality (WQ), time management (TM) and skill
utilization (SU), together explain 97.7 percent of the variance in organizational
performance, as indicated by the R Square value of 0.977.
3. After adjusting for the number of predictors, the Adjusted R Square value of
0.976 suggests that the model has an excellent fit and reliably explains
organizational performance.
4. The standard error of the estimate is 0.13073, indicating a very small average
distance between observed and predicted values, reflecting exceptional
prediction accuracy in the model.
ANOVA
1. The study found that the overall regression model is statistically significant,
with an F-value of 1055.913 and a p-value of .000, indicating that the
predictors collectively have an exceptionally strong effect on organizational
performance.
2. It is observed that the regression explains an overwhelming portion of the
variance in organizational performance, as evidenced by the large sum of
squares for regression (90.224) compared to the residual sum of squares
(2.102).
3. The mean square for regression (18.045) is substantially higher than the mean
square for residuals (0.017), further supporting the model's exceptional
predictive power.
4. The significance value (p < .01) confirms that the model's predictors are
jointly highly significant in explaining organizational performance variations.
Coefficients

72
1. The study found that skill utilization (SU) has the strongest significant positive
effect on organizational performance (β = 0.530, p = .000), indicating that
proper skill utilization is the most influential factor for organizational success.
2. It is observed that work efficiency (WE) has a significant positive effect on
organizational performance (β = 0.514, p = .000), suggesting that efficient
work practices substantially contribute to organizational effectiveness.
3. Time management (TM) shows a strong and statistically significant positive
effect on organizational performance (β = 0.421, p = .000), indicating that
effective time management meaningfully enhances organizational outcomes.
4. Task completion rate (TCR) presents an unexpected significant negative effect
on organizational performance (β = -0.420, p = .000), suggesting that in the
presence of other variables, task completion rate alone may not directly
contribute as expected.
5. Work quality (WQ) shows a non-significant effect on organizational
performance (β = -0.044, p = .403), indicating that work quality does not
significantly influence organizational performance when other factors are
controlled for.
6. Work efficiency, time management and skill utilization emerge as the most
significant positive predictors of organizational performance in the banking
sector.
7. The regression model demonstrates that focusing on skill utilization, work
efficiency and time management practices would be most effective for
enhancing organizational performance in commercial banks.

73
 CHAPTER V
SUMMARY, CONCLUSION AND RECOMMENDATIONS
This chapter includes the concluding summary of the whole thesis. The
conclusion and recommendations have also been included in this chapter.

5.1 Summary
The study entitled “Impact of Employee Productivity on Organizational
Performance in Banking Sector: A Study of Commercial Banks in Birendranagar
Municipality, Surkhet” aimed to assess how employee productivity influences
organizational performance. The independent variables considered were work
efficiency, task completion rate, work quality, time management and skill utilization
while the dependent variable was organizational performance.
The population of the study included employees of commercial banks in
Birendranagar Municipality. A total of 129 respondents were selected using
convenience sampling. Data were collected through a structured questionnaire
consisting of demographic information and Likert-scale items related to the
independent and dependent variables. The questionnaire was distributed to 129
employees and all were successfully collected. The research adopted a quantitative
and descriptive design, relying primarily on primary data. Data were presented
through tables and figures, analyzed using frequency, percentage and mean values.
Inferential analysis, including correlation and regression, was used to establish the
relationship between the independent variables and organizational performance. The

74
results revealed that all five productivity factors have a significant influence on
organizational performance. The findings confirmed that higher levels of employee
productivity directly enhance efficiency, customer satisfaction, competitiveness and
sustainability of commercial banks in Surkhet.

5.2 Conclusion
This study aimed to examine the impact of employee productivity on
organizational performance in commercial banks, focusing on five key dimensions:
work efficiency, task completion rate, work quality, time management and skill
utilization. The findings demonstrate that these factors collectively and significantly
influence the overall performance of banks, indicating that productivity and
organizational success are closely interconnected. Work efficiency emerged as a vital
factor in ensuring that resources are effectively utilized and operational targets are
consistently achieved. Employees who work efficiently contribute to higher service
quality and customer satisfaction, which are essential in the banking sector. Similarly,
task completion rate showed a strong positive effect, suggesting that timely delivery
of work builds client trust and ensures smooth functioning of banking operations.
Work quality was found to be another significant determinant of performance,
as accuracy and reliability are crucial in maintaining credibility in financial services.
Time management, closely tied to efficiency and completion rate, also played a vital
role by reducing delays, improving service delivery and enhancing customer
confidence. Skill utilization further contributed to performance by ensuring that
employees’ knowledge and capabilities were effectively harnessed to meet
organizational goals, fostering innovation and adaptability in a competitive market.
The results also revealed interrelationships among these productivity variables,
showing that they do not operate in isolation but reinforce one another. For example,
effective time management supports higher task completion while skill utilization
improves both efficiency and quality. Together, these factors explained a substantial
portion of the variation in organizational performance, highlighting the importance of
a comprehensive approach to enhancing productivity.
In conclusion, the study confirms that employee productivity is a critical
driver of organizational performance in commercial banks. Institutions aiming for
sustained growth and competitiveness should invest in strategies that enhance
employee efficiency, ensure timely task completion, promote high-quality work,

75
improve time management practices and maximize skill utilization. By fostering a
productivity-focused culture, banks can achieve greater customer satisfaction,
operational excellence and long-term sustainability.

5.3 Recommendations
After the summary and conclusion of the study, some recommendations are
made which are as follows:
1. The findings of the study showed that 91.4 percent of the respondents agreed
that employees are efficient enough to consistently improve overall
organizational performance. Therefore, it is recommended that bank
management continue investing in efficiency-enhancing measures such as
regular training, process automation and performance monitoring. This will
help employees maintain high efficiency and ensure sustainable organizational
performance.
2. The findings of the study revealed that 86.1 percent of respondents agreed that
employee task completion rates directly contribute to achieving organizational
goals. Thus, it is suggested that bank authorities implement clear task
allocation systems and performance tracking mechanisms. Ensuring timely
completion of tasks will strengthen goal achievement and enhance the overall
effectiveness of banking operations.
3. The study showed that 84.5 percent of the respondents agreed that high work
quality positively influences the bank's reputation and performance outcomes.
Therefore, it is advised that the bank adopt strict quality control measures,
provide continuous professional development and encourage a culture of
excellence. Maintaining high work quality will safeguard the bank’s reputation
and improve long-term performance outcomes.
4. The findings revealed that 86 percent of respondents agreed that effective time
management enhances the bank's ability to meet deadlines and organizational
targets. Hence, it is recommended that bank management provide training on
time management techniques, introduce digital tools for scheduling and
minimize workflow bottlenecks. This will enable staff to meet deadlines
efficiently and achieve organizational targets more effectively.
5. The study indicated that 83.7 percent of respondents agreed that proper
utilization of employees’ skills significantly supports the bank's growth and
76
competitive position. Thus, it is suggested that the bank’s HR department
design skill-mapping systems and provide opportunities for employees to
apply their expertise in diverse roles. Effective skill utilization will foster
innovation, strengthen competitiveness and support sustainable organizational
growth.

77