Impact of Pay Inequity on Employee Motivation in the Commercial Banks of Bangladesh

Motivating the employees of an organization is probably the most fundamental task of management because it enables employees to contribute more effectively to achieve the organization's goals.The study's main objective was to evaluate and compare the effects of pay inequity on employee motivation in the conventional and Islamic commercial banks of Bangladesh.Basically, primary data were collected by using a questionnaire survey on 443 respondents from seven commercial banks of Bangladesh.Several statistical tools like mean, standard deviation, t-test, correlation, regression analysis techniques were used to analyse the data.Important findings of the study are: Islamic bank employees are significantly more motivated than those of conventional banks.There was a significant negative association between motivation and pay inequity of both the conventional bank employees and Islamic bank employees.It has been recommended that, proper strategies should be introduced to reduce the feelings of employee pay inequity by administering a rational salary structure which will attempt to maintain fairness in the pay of different types of employees on the basis of their efficiency, effort, quality of job and responsibility discharged, and disseminating information about the problem related to pay fixation and taking the employees into confidence in such matter.