CHAPTER ONE INTRODUCTION Study background In the contemporary corporate sector, the ratio of women to men being employed to work in organisations such as banks is increasing. This trend has given rise to many issues of concern to various organisations. For instance, gender differences in terms of pay and job satisfaction. Some countries demonstrate changing levels of job satisfaction based on gender while some nations do not. According to Kaiser (2007, p.76), most of the nations demonstrated considerable variations in job satisfaction across both genders, specifically, most nations showed that women had a greater level of job satisfaction than men. The rationale for this is that women are more limited to particular jobs and careers than men. As such they seem satisfied with the tasks that they handle in the organisation. Furthermore, Eurostat (2016) claims that many organisations use gender-based pay scheme. The differences in pay among different genders stems from the variations in the roles that men and women play in the company, differences in the professions those different genders can handle, variations in the bargaining power of both genders and many others. Therefore, many researchers have shown interest in these concerns with an aim of increasing understanding of the causes of gender pay discrimination and the determinant of employees job satisfaction. In this connection, this research intends to assess the cause of gender differences in pay and job satisfaction in Hong Kong banking industry. This chapter commences by providing an overview of the banking industry in Hong Kong and then states the problem of the research and research aim and objectives whereby research questions are derived thereof. 1.11Overview of banking industry in Hong Kong The Hong Kong bank industry is among the most advanced sectors of the world as Hong-Kong Research HKTDC (2016) claims. Almost 70% of the top 100 global banks have branches in Hong Kong. Specifically, in the year 2015, 199 financial institutions were approved to operate in Hong Kong in addition to the establishment of sixty-four branch offices. The success of Hong Kong s banking sector stems from the fact that the industry is guided by the high degree of market transparency, openness as well as prudent management. In terms of the Global Financial Centres Index(GFCI) which was produced by Z/Yen Group, the Hong Kong banking industry was position three. This excellent performance shows that Hong Kong banking industry is doing well in general. This banking industry employs both men and women as asserted by Karacs (2016, p.1). Thus, the issue of gender difference in terms of pay and job satisfaction in Hong Kong banking industry is common. 1.2 Problem statement According to Karacs (2016, para 1-5), the employees are experiencing a continuous widening gap in salaries and wages between men and women. For example, in Hong Kong, men are paid an average monthly pay of HK$15, 000 while women earn only HK$12,500 as their monthly pay. From these figures, it is evident that men earn more than women. Initially, the wage gap between the two genders was HK$2,000, thus, there is an increase by HK$500. As a consequence, this widening gap has caused mixed reactions among many women groups to fight for equality across both genders. According to Liu and Tang (2011, p.719), cultural beliefs is among the leading factors that cause discrimination in terms of pay across genders. Also, the effect of gender difference in job satisfaction has been observed in many sectors (Bozeman and Gaughan 2011, p. 155). In many nations, women are believed to be more satisfied than men in their jobs since women have accessed to a limited number of professions where they could shift. However, many types of research have been done on these issues but the findings seem inadequate to bring out a reliable conclusion on the causes of gender differences in job satisfaction and the salary given to the employees. Therefore, this forms the research gap for the study. 1.3 Research aim and objectives This research aims at finding out the causes of gender differences in pay and job satisfaction in the banking industry in Hong Kong. The banking industry has been chosen as the most suitable for the research because it is among the biggest industries globally as observed in its recent ranking. Also, the Hong Kong banking sector employs both male and female which has given rise to gender issues in terms of job satisfaction and pay. The research will achieve its aim using the following research objectives To find out whether the number of job alternatives for specific genders affects their job satisfaction To establish whether the preferred career choice by particular gender affects the pay scale To determine whether the gender inequality culture affects the pay scale To examine whether variations in bargaining power between men and women in the company affects the pay scale Research questions Based on the above objectives, the following research questions will be used Does the number of job alternatives available to specific genders affect their job satisfaction? Does the preferred career choice by particular genders influence the pay scale? Does the gender inequality culture influence the pay scale? Does the differences in bargaining power between different genders affects the pay scale? Rationale for the research Job satisfaction and pay scale influences the performance of employees in an organisation (Tooksoon 2011, p.43). Specifically, a good and fair pay scale increases employees morale which in turn increases employees work performance (Barnett and Salomon 2012, p. 1306). Also, job satisfaction among employees boosts the organisational performance. As such, Christian, Garza and Slaughter (2011) argue that most managers work hard to have high levels of job satisfaction. In this connection, this research will help the employers not only in the banking industry but in all organisations in Hong Kong to develop gender-related approaches to solve the unfairness in pay and job dissatisfaction among the employees. Furthermore, this research will contribute to the available literature on this topic for subsequent researches. Structure of the dissertation This dissertation is organised in five chapters whereby chapter one provides the background information on the research, chapter two reviews the literature done on the topic through providing rational arguments of the scholars regarding the topic. Then, chapter three provides the methodology that is used in the research while chapter four presents the findings of the research. Lastly, chapter five consists of the summary of the research findings, conclusion and the recommendations for the research. QUESTIONNAIRE DESIGN The aim of this questionnaire is to look for responses regarding the causes of gender differences in pay and job satisfaction in Hong Kong banking industry. Additionally, please do not write your name anywhere in the questionnaire as the responses given will be treated with high level of confidentiality. Also, please answer all the questions and tick in the boxes adjacent to your preferred answers. Otherwise, your cooperation and participation will be highly appreciated. What is your gender? Male Female Which industry do you work? Banking industry If other please specify What is your cultural beliefs regarding treatment of men and women? Men and women are treated equally Men are more superior than women Women are more superior than men If other please specify What is the operative policy in your bank regarding the pay scale among men and women? Men are paid more than women in the same job position Women are paid more than men in the same job position Both genders are paid equally depending on the position they hold I cannot tell I) Are you satisfied in the current job? Yes No ii) If not satisfied in your current job position please state the reason What position are you holding in your bank? Teller Investment banker Manager Loan officer if other please specify Why do you prefer this profession? It is good for men It is good for women I cannot tell What is your salary scale? HK$ 10, 000 ? HK$ 15,000 HK$ 15, 001 ? HK$ 20,000 HK$ 20,001 ? HK$ 25, 000 25, 001 and above In your opinion, what is the prevailing perception regarding bargaining power for higher pay between men and women in your organisation? Men have higher bargaining power for higher pay than women Women have more bargaining power for higher pay than men Men and women have equal bargaining power for higher pay I cannot tell List of References Barnett, M. L. and Salomon, R. M. (2012) ?Does it pay to be really good? Addressing the shape of the relationship between social and financial performance , Strategic Management Journal, 33(11), pp.1304-1320. Bozeman, B. and Gaughan, M. (2011) ?Job satisfaction among university faculty: Individual, work, and institutional determinants , The Journal of Higher Education, 82(2), pp.154-186. Christian, M. S. Garza, A. S. and Slaughter, J. E. (2011) ?Work engagement: A quantitative review and test of its relations with task and contextual performance , Personnel Psychology, 64(1),pp.89-136. Eurostat (2016) Gender pay gap statistics ? Statistics Explained. [online] Available at: http://ec.europa.eu/eurostat/statistics-explained/index.php/Gender_pay_gap_statistics [Accessed 28 Jan. 2016]. Hong-Kong research HKTDC (2016) Banking Industry in Hong Kong | HKTDC. [online] Available at: http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/Banking-Industry-in-Hong-Kong/hkip/en/1/1X000000/1X003ULX.htm [Accessed 28 Jan. 2016]. Kaiser, L. C. (2007) ?Gender-job satisfaction differences across Europe: An indicator for labour market modernization , International Journal of Manpower,28(1), pp.75-94. Karacs, S. (2016) ?Discrimination in Hong Kong sees pay divide between men and women widen. [Online] Sarah Karacs. Available at: http://www.scmp.com/news/hong-kong/economy/article/1845386/pay-divide-widens-between-men-and-women-hong-kong [Accessed 28 Jan. 2016]. Liu, B. C. and Tang, T. L. P. (2011) ?Does the love of money moderate the relationship between public service motivation and job satisfaction? The case of Chinese professionals in the public sector , Public Administration Review, 71(5), pp.718-727. Tooksoon, H. M. P. (2011) ?Conceptual framework on the relationship between human resource management practices, job satisfaction, and turnover , Journal of Economic and Behaviors Studies, 2, pp.41-49.