Original Article

Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

IMPACT OF GENDER BASED DISCRIMINATION ON

EMPLOYEE PERFORMANCE IN CASE OF NEPALESE
COMMERCIAL BANKS

Jenita Nepal* Dr. Hatairat Lertjanyakit*

ABSTRACT

This study deals with the concept of gender discrimination at workplace and how such
discrimination can influence the employee performance in commercial banking sector of Nepal.
The independent variables are the dimensions of gender discrimination specifically promotion,
recruitment and selection, compensation and benefits. Similarly, the dependent variable taken is the
employee performance. Quantitative tools are applied to analyze the data such as correlation and
multiple regressions. The study reveals that gender discrimination in promotion and recruitment
policies contributes more for the variation in dependent variable employee performance. The
gender discrimination in compensation and benefits has least and insignificant effect on employee
performance. Therefore, this empirical study provides guidelines for managers and human
research practitioners in deducing discriminatory practices from the organization, in order to
ensure equality and fairness for increasing organization productivity.

Keywords: Employee performance, Gender discrimination in promotion, Gender discrimination

in recruitment and selection, Gender discrimination in compensation and benefits.

1. Introduction each employee as valuable jewels for the

company. Fair practices can actually help the
In the modern contemporary world, there organizations to sustain in the long run. One
has been tremendous development in of the underlying principles that should be
the information, communication, and prevalent in almost every organization is equal
entertainment technology. Due to hype of treatment. Diversity and equality have become
globalization, businesses are getting complex integral part of every organization. Diverse
and there has always been question about workforce includes of individuals belonging
diversity management. Managers are looking to different culture who have their own
out for strategies that can support diversity and expectations and aspirations (Loden & Rosener,
inclusion. 1991). Employees from diverse background
In order to create work harmony, managers long for respect in their workplace. However,
need to identify the interest of each employee gender should not be a factor influencing this
and collaborate it with an organization goals. course of action. Thus, employees should be
While doing so, managers need to consider treated equally and appreciated irrespective

* MBA Student, Global College International

* Faculty, School of Management, Shinawatra University

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Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

of their gender. Discrimination on the basis of are basically marginalized in areas such as
gender is detrimental to any organization. salary, rewards and also when exercising
authority in the workplace (Ngo, 2003).
Discrimination is defined as “different treatment Adhikari ( 2014) conducted research on five IT
of individuals or groups based on arbitrary companies of Lucknow, there is no significant
ascriptive or acquires criteria such as sex, difference in performance of different gender
race, religion, age, marital or parental status, employees but however, there is discrimination
disability, sexual orientation, political opinions, at workplace where female workers are
socio-economic background, and trade union underrepresented and paid less in comparison
membership and activities” (Eurofound, to men. As a result, such behavior and actions
2011) Carr (2003) Studied that gender decreases the motivation and morality which
discrimination is belief and perception of the affect their productivity. Swimmer (1990) has
discriminator of granting rights to the employee analyzed that female clerical employees are
based on his/her gender through policy, action discriminated in getting promotions as compare
and behavior. Such action and behavior can to male. Results show that promotion criteria
create hostile environment and negatively for females’ clerks is difficult and different as
affect the employee performance. Therefore, compare to male employees. Gender difference
discriminatory treatment is intimidating and in promotion rate of getting promotion or
can affect employee’s career prospects. Effect higher rank is lower for female employees and
of such discriminatory treatment can lower the also find no gender difference in salary growth
opportunities to enhance work-related skills attach to promotion (Blau & Jed, 2007). Bible
and build supportive relationships within an & Hill (2007) analyzed that the equity gap
organization. As a result, it can have an impact between men and women in management
on individual’s ability, motivation and lessen the careers appears to be closing, the glass ceiling
effectiveness of their job performance. Gender still persists in today’s business environment.
discrimination can create stress and trigger Gender discrimination continues to exist,
the mental health of the employee. Workforce despite Equal Employment Opportunity laws
is the combination of both the genders, i.e., which have been in place for several decades
males and females. Numerous studies show in the U.S. workplace. Evidence gathered
that men enjoy more privileged power rather through empirical studies showed that women
than female in the workplace (Pang & Huang, were disadvantaged in comparison with men
2010). Konrad & Kathy (1997) emphasized on virtually every known economic indicator
that there has been a tremendous change in (Schmitt et al., 2002).
the workplace with more women participation
in the workforce. However, regardless of Trentham & Larwoodn(1998) have emphasized
women representation they are still facing on the work place gender discrimination
discrimination in various sectors within the rational bias theory. According to this theory,
organization. The stereotype thinking has led decision makers may choose to discriminate
to the notion that women are less committed if they believe that their superiors or others
to the organization (Welle & Heilman, 2005). having power over their careers expect or
Thus, such stereotype thinking can hinder the prefer it. The findings of their research showed
progress of women in terms of growth in the that businessmen discriminated women and
workplace. people at the top of the organization are
most biased against women than people at
Even though the participation of women in the the bottom. Their study has also confirmed
workforce is increasing, the glass ceiling still that management support discrimination,
prevails in the business environment. Women though those discriminations were less than

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 Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

the findings of earlier research, reflecting variable affects the dependent variable or
increasing equal opportunity. not (Jason & Rumrill, 2004). The cause and
effect relationship between the dependent
In context of Nepal, an empirical study and independent variable that are taken in the
on private organization of Pokhara, male present research is analyzed using the causal
behavior toward female showed positive research.
by analyzing sample of hundred females of
different age group. They do not recognize The target population of this study was
sexual harassment and glass ceiling effects. the commercial bank in Kathmandu. An
Mostly female perceives that socio-cultural aggregate number of employees working
side is the reason for their underrepresentation in the commercial bank in the Kathmandu
(Rana, 2007). Therefore, various researches valley will be the population. According to
have looked at employee performance through the bank supervision report April 2018, the
various dimensions, but only few have focused total population of Nepalese Commercial
more about the relationship between gender Bank’s employees is 27908. To be exact,
discrimination and employee performance. all the Nepalese Commercial Banks are the
Likewise, there have been mixed findings with population. There are 28 commercial banks in
regard to gender discrimination and its impact Nepal. The total sample size according to total
on employee performance. In this aspect, this population is 394. The minimum sample size is
study ought to address the effect of gender derived by the formula provided by (Yamane,
discrimination on employee performance by 1967):
focusing in commercial banks of Nepal.
N
n =
1 + Ne2
2. Research Methodology Where,
The study is based on Primary data. The N = Population size (27908)
necessary data has been collected from by n = sample size (394)
distributing self-administrative questionnaires.
e = level of precision (0.05)
A questionnaire was designed to explore the
fact. Questionnaire contains the use of fixed
questions which are presented to respondents In this formula, as the population is known,
in the same way, with no variation in question p = 0.5 is used. The confidence level used is
wording. The study uses the descriptive 95% and tolerated margin of error is 5%.
and causal- comparative research design to Now,
analyze the effect of gender discrimination on
27908
employee performance in commercial banks of n = = 394
Kathmandu, Nepal. In this study, descriptive 1 + 27908 × 0.052
study is undertaken in order to explain about
Therefore, minimum sample size required for
the variables and its characteristics which
the study is 394.
affects the employee performance. It intends
to explain more about the variables by giving
descriptions about each variable (Luck & RESEARCH MODEL
Rubin, 2001). The causal- comparative design
In order to test different hypothesis, the
is used in the study to compare two or more
following model is used which shows the
groups in order to find the differences or
relationship between gender discrimination
either to determine whether the independent

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Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

dimensions and employee performance. 3. Hypotheses

Independent variables like recruitment
process. Compensation and promotion are H0 : There is significant relationship between
used in this study. Likewise, dependent gender discrimination and employee
variable is employee performance for this performance.
study. The regression model is used to analyze H1 : Gender discrimination in recruitment
the interrelationship between dependent and is negatively associated with employee
independent variables. The following model is performance.
used in this study:
H2 : Gender discrimination in promotion is
EP = α + β1RS + β2P + β3CF +ε
negatively associated with employee
Where, performance.

α = Constant H3 : Gender discrimination in compensation

is negatively associated with employee
β1, β2 and β3 are the beta coefficients of the
performance.
explanatory variables to be estimated.
ε = Error term 4. Data Analysis and Presentation
Dependent Variable, Demographic Profile
EP = Employee Performance.
In this study, the respondents include the
Independent Variable, employees of Commercial Bank of Nepal and
394 questionnaires were collected based on the
RS = Recruitment and Selection gender, age, working period of Respondents.
P = Promotion The demographic profile is briefly discussed in
the following table 1.
CF = Compensation and Facilities

Table 1: Gender of Respondents

Gender Frequency Percent Valid Percent Cumulative Percent
Male 221 56.1 56.1 56.1
Female 173 43.9 43.9 100.0
Total 394 100.0 100.0
Note: SPSS Results based on Primary Data 2018

The above table shows the frequency and whereas, 221 are male. From the given figure,
percentage of different gender among survey we can say that, male respondent are more
respondents. Based on the results, 43.9% than the female which questions for gender
of respondents are female whereas, 56.1% discrimination in the workforce.
of respondents are male. In other words, out
of 394 target respondents, 173 are female

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 Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

Table 2: Age of Respondents

Valid Cumulative
Age Frequency Percent Percent Percent
20-25 131 33.2 33.2 33.2
26-30 183 46.4 46.4 79.7
31-35 80 20.3 20.3 100.0
Total 394 100.0 100.0
Note: SPSS Results based on Primary Data 2018

The above table shows the frequency and 30 years, 131 of respondents are 20-25 years,
percentage of different age group among and 80 of respondents are 31-35 years. Most of
survey respondents. Based on the results, out the employees are of age between 26-30 years
of 394 respondents, 183 of respondents are 26- which is 46.4% and 20-25 is 33.2% and 20.3%
is 31-35 years.

Table 3: Working period of Respondents

Working
Period Frequency Percent Valid Percent Cumulative Percent
Less than 3 144 36.5 36.5 36.5
3-5 137 34.8 34.8 71.3
5-7 113 28.7 28.7 100.0
Total 394 100.0 100.0
Note: SPSS Results based on Primary Data 2018

The above table shows the work duration correlation variables can be tested with the
tenure of respondents from survey. According range between -1 to +1 where -1 indicates the
to the results, 144 of respondents have been perfect negative correlation while +1 indicates
working less than 3 years, 137 of respondents the perfect positive correlation whereas 0 is an
have been working in the bank for 3-5 years, indication of no correlation at all.
and 113 of respondents have been working in
the bank for 5-7 years. Based on the results, Correlation Analysis
36.5% of respondents are working below
The correlation matrix is used to determine
3 years, 34.8% of respondents are working
the extent to which changes in the value of
for 3-5 years and 28.7% of respondents are
one attribute is associated with changes in
working for 5-7 years.
another attribute. In other words, it simply
Analyses of Data helps to explain the strength of the relationship
between the variables.
In order to analyze the data, correlation
analysis and regression analysis was used. The

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Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

Table 4: Correlation between Employee Performance and Independent variable

Recruitment
Promotion Compensation Employee Performance
and Selection
Promotion 1

Compensation .076 1
Recruitment
.066 .068 1
and Selection
Employee
-.170** .027 -.153** 1
Performance
Note: SPSS Results based on Primary Data 2018
** Correlation is significant at the 0.01 level (2-tailed).

From the above table 4.4, the correlation value between “Recruitment” and “Employee
value between “Promotion” and “Employee Performance” is -.153 which shows that there
Performance” is -.170 which shows negative is negative but significant relationship between
but significant relationship between each each other. This indicates that with 1% increase
other. This implies that with 1% increase in discrimination in Recruitment variable,
in discrimination in Promotion variable, employee performance will decrease by
employee performance decreases by 17%. 15.3%. Out of the three independent variables,
Similarly, the correlation value between to some extent, promotion correlated strongest
“Compensation” and “Employee Performance” with employee performance.
is .027 which shows that there exist positive
but insignificant associations between each
Regression Analysis
other. However, this implies that any variation
in Compensation variable will have positive Regression analysis describes the variance and
variation in employee performance in the same causal relationship between independent and
manner. On the other hand, the correlation dependent variables.

Table 5: Model Summary

Adjusted R Std. Error of the
Model R R Square
Square Estimate
1 .423a .179 .173 .23008
Note: SPSS Results based on Primary Data 2018

From the above table, the R value actually is used. In this aspect, 17.9 percent of the
helps to explain how well the whole model variability of employee performance was
describes the data. In this study, the model explained by the independent variables of
explained 42.3% of the data. In the above recruitment, promotion, compensation and
model, in order to understand the extent to the remaining are unknown. Beside these, the
which the variability of the dependent variable standard error of the estimate is 0.23008.
is explained by the independent variable, R2
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 Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

Table 6: ANOVA Test

Model Sum of
Squares Df Mean Square F Sig.
1 Regression 1.293 3 .431 7.046 .000b
Residual 23.857 390 .061
Total 25.150 393
Note. SPSS Results based on Primary Data 2018
a. Dependent Variable: Employee Performance
b. Predictors: (Constant), Compensation, Recruitment Process, Promotion

From the above table, the significant p-value is 0.000 which is less than 0.05. It implies that
can be analyzed. P-value indicates whether the the model used by the researcher is valid and
model should be accepted or rejected. In this matches the requirement of the study. Hence,
aspect, we can see that the significance p value the model as a whole is significant.

Table 7: Coefficient Table

Standardized
Model Unstandardized Coefficients
Coefficients t Sig.
B
Std. Error Beta
(Constant) 1.790 .242 7.409 .000
Recruitment Process -.083 .028 -.145 -2.928 .004
1
Promotion -.103 .031 -.164 -3.315 .001
Compensation .035 .035 .049 .993 .321
Note. SPSS Results based on Primary Data 2018

a. Dependent Variable: Employee in compensation variable is positive to

Performance employee performance but it is insignificant.
In the above table, the model elaborates This is because its p value is 0.321 which is
about which specific independent variables more than 0.05. Likewise, when discrimination
were significant in explaining employee in recruitment and selection variable increases
performance. There is one constant value in the then employee performance will negatively
given table that is 1.790 while other regression react in opposite direction and vice-versa.
coefficient represents the slope and Y-intercept Its p value is 0.004 which is less than 0.05.
-0.83, -0.103 and 0.35 respectively. The t value Thus, regression analysis depicts that gender
of promotion and recruitment is -3.315 and discrimination significantly and negatively
-2.928 respectively which is greater than 2. contributes in employee performance.

Above table shows that when discrimination After rejecting the insignificant variable,
in promotion variable increases then employee the final regression model with regards to
performance will negatively react in opposite employee performance is as follows:
direction and vice-versa. Its p value is 0.001 Y = 1.790-0.083(RS)-0.103(P).
which is less than 0.05. However, discrimination
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Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

Table 8: Hypothesis Acceptance Table

SN Hypothesis P Value Remark
H01 There is significant relationship between gender 0.004 Accept Alternative
discrimination in recruitment and employee Hypothesis
performance.
H02 There is significant relationship between gender 0.001 Accept Alternative
discrimination in promotion and employee Hypothesis
performance.
H03 There is significant relationship between gender 0.321 Reject Alternative
discrimination in compensation and employee Hypothesis
performance.

In the above table, we can observe that p value promotion opportunities.

which explains the acceptance and rejection
of Alternative Hypothesis. The p value of H01, Therefore, based on the findings of this study,
Ho2, and Ho3 are concerned with variables like it can be easily comprehended that a banking
recruitment, promotion and compensation. institution which is unable to eliminate gender
Since the p value of Ho1 with 0.004 and Ho2 discrimination will end up having a workforce
with 0.001 is lesser than 0.05, the alternative which is characterized with low productivity.
hypothesis 1 and 2 are accepted. As for other To conclude, discrimination in the banking
hypothesis H03, it is rejected because the p institution has more negative impact on the
value is greater than 0.05. employee performance and in the long run
it negatively affect the performance of the
entire institution. Thus, the result rejected
5. Conclusion the alternative hypothesis H03 whereas the
alternative hypothesis H01 and H02 got accepted
The significant relationship exhibited between which meant that changes in recruitment and
tested variables explains that discrimination promotion can have an impact on employee
does exist in case of Nepalese banking performance.
institution. Statistical tools such as correlation
and regression analysis were used to analyze
the relationship between gender discrimination 6. Limitation and Recommendations
and employee performance. From the
regression analysis, the finding shows that In case of Nepalese scenario, managers of the
gender differences in recruiting and promotion banking institution and other organizations
have negative relationship with employee should set up ways through which employee
performance. This implies that when gender can report any form of discrimination to
discrimination increases, the quality of output management and such complaints needs to be
by employee reduce drastically and vice-versa. handled promptly and confidentially in order
Generally, the concept of gender discrimination to eliminate discrimination. The workplace
could be extracted from many factors such policy needs to be reviewed frequently in order
as stereotype thinking, the behavior of the to ensure that effectiveness is maintained.
counterparts as well as cultural belief. In Likewise, managers should also confine
addition to the present research findings, it that there is equal opportunity of promotion
was reported that male staff are given more and career success for all the categories of

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 Impact of Gender Based Discrimination on Employee Performance in Case of Nepalese Commercial Banks

employee irrespective of their gender. As a Furthermore, there are few limitations

result, such initiation will enable the employers associated with this study. This study considers
to alleviate any perception employees might the quantitative analysis rather than the
have of gender discrimination. qualitative analysis. The research is focused
on A class commercial bank employees only.
Area of employee performance is too much Hence, the study cannot be generalized to other
debatable in different organizational set up. developmental banks. Similarly, the sample
Therefore, future research can be conducted survey is taken only from Kathmandu Valley
that attempts to determine causation and for convenient sampling.
characterizes the relationship more precisely
because there may be other factors or variables Lastly, these limitations are acknowledged
which contribute to employee performance. but they do not diminish the significance of
findings in this study.

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