2.

Literature Review
Literature review chapter is the second chapter of the study, which is vital for the generation
of the research model. The aim of the research is to investigate the factors affecting work life
balance of the banking employees. Therefore, literature review basically focus on explaining
prior literature and knowledge on work life balance as well as the factors affecting work life
balance. This chapter majorly consists of two sections. They are the industrial overview that
explain about the baking sector of Sri Lanka and the area of business management theories.

2.1 Industry Overview

2.1.1 Global Banking Industry

The banking industry is one of the most vital components of the global economy. It serves as
the primary intermediary between savers and borrowers and facilitates the smooth
functioning of financial markets. The global banking industry has undergone significant
changes in recent years, driven by technological advancements, regulatory reforms, and
changing customer expectations. Banking is an important sector that influences both
businesses and individuals. It is a popular choice for employment. As banks have expanded
their offerings and integrated with other financial industries such as insurance, non-bank
financial institutions, and capital markets, there are more job opportunities available due to
retirements within the sector (Kundnani and Mehta, 2016). The banking sector is currently
playing a significant role in the economic development, contributing to its status as one of the
world's largest and fastest growing economies. Experts, including economists and
researchers, have noted that a robust and efficient banking sector is necessary for sustainable
economic development (Kumar, Prakash and Verma, 2022). The banking sector plays a
crucial role in the economic development of a country and affects all sections of society. The
productivity and performance of a bank is largely dependent on the performance of its
employees. This is because the nationalized banks are service-based organizations. In today's
rapidly changing technological landscape, human capital is increasingly vital to a nation's
growth and prosperity. Capital and natural resources have traditionally been important for
wealth creation. It is the development of human capital that truly drives economic growth in
developing nations. The continued growth and success of the banking sector is a positive sign
and can be attributed to the ongoing improvement and expansion of the human workforce.
The labor force is a crucial beneficiary and contributor to the growth and prosperity of any
organization. The sustained growth of the banking sector of a nation is a positive indication
of the ongoing growth and improvement of the human workforce (Kumar et al., 2022). The
banking sector is heavily reliant on its human resources, with employees’ often working long
hours on routine tasks that can take a toll on their mental health (Siwale, Hapompwe, Kukano
and Mwiikisa, 2021).

With the U.S. facing a one-in-three possibility of recession in late 2020, recent GDP
contractions in the U.K. and Germany, and a slowing China, the economic outlook for the
global banking sector heading into 2020 is relatively gloomy. In this setting, banks will have
more challenges. Global economy is still slowing as approach 2020, with the U.S.-China
strategic conflict being the main driver of the weakening in manufacturing and trade (S&P
Global ratings, 2019).

A considerable expansion of the profit was resulted for the banks after recovering of the
pandemic. However, the context has fluctuated at a significant level. The fragile nature was
made worst as a result of a chain of interconnected shocks such as influences made by the
society, lingering economies, and geopolitical situations. In 2022, income of the banks met a
14-year high. The return on equity expected resulted between 11.5 and 12.5 percent while
expanded the revenue up to 345 billion USDs (Dietz, Kincses, Seshadrinathan and Yang,
2022).

2.1.2 Banking Industry of Sri Lanka

In Sri Lanka, the banking and finance sector, a major contributor to the economy, show a
performance of 15.4% in 2020, representing a 5% increase from the period of the COVID-19
pandemic in 2019. The reports of The Central Bank (2020) emphasizes that there are 24
licensed commercial banks and 6 specialized licensed banks in the Sri Lankan banking sector.
Of the licensed commercial banks in the region, only two are government-owned, with the
rest being privately owned entities. The sector employs 2.2% of the labor force in Sri Lanka,
with a gender breakdown of 50.4% male and 49.6% female (Ministry of Labor, 2018). The
equal participation of males and females in the banking sector reflects that both genders have
an equal presence in the industry. However, the banking sector is known for its high
workload, long working hours, and pressure to complete tasks accurately and on time, which
can lead to work exhaustion for employees (Adikaram and Jayatilake, 2016). Banking
employees of Sri Lanka usually ought to work eight hours with close deadlines and
unforecastable pressure of the flow of work (Upeksha and Lakmali, 2021).
Licensed Commercial Banks and the specialized banks are the two major sectors of the Sri
Lankan banking industry. These institutions dominates the systems of finance and accounts
contributing to the largest total assets share and the system of finance. Banks are involved in
ensuring the liquidity of the whole economy of Sri Lanka as well as converting its assets risk
features. This emphasizes the significance of the roles of the banks play in Sri Lankan system
of finance. Payment services are also provided by the banks that support for all institutions to
execute their financial transactions. The immaturity of assets and liabilities and their
interrelatedness generate burdens in the systemic nature. Hence, this emphasizes the smooth
functioning of banks to ensure financial systems confidence. All the financial and non-
financial institutions and the entire economy can result failures due to the collapse of banks
(Central Bank of Sri Lanka, 2018).

2.1.3 ABC Bank

ABC Bank is a major global banking and financial services organization. ABC Bank serves
for more than 40 million customers through its banking sectors of Wealth and Personal,
Commercial, and Global & divisions of the Markets. Its operations span 63 countries and
territories. These nations are Europe, North America, Asia, Latin America, the Middle East
and Africa. Purpose of ABC Bank is to "Open up a world of opportunity.” Company uses
their unique capabilities and perspectives to create new opportunities for their customers,
collect people together, concepts, and capital to foster development and expansion. This helps
to create a better living standard for their customers, workers, investors, stakeholders, and the
world. The company is listed on the London, Bermuda stock exchanges, Hong Kong, and
New York. The bank deals with approximately 182,000 shareholders who are in about 128
nations and regions holding shares in ABC Holdings plc. ABC Bank of Sri Lanka has a long
history dating back over 125 years and operates as a leading foreign bank in the country. The
bank serves customers through three global businesses: Commercial Banking, Global
Banking and Markets, and Wealth and Personal Banking. (ABC Bank, 2023).

2.2 Theoretical Background

2.2.1 Workload

Work load is one of the key elements that is thought to affect work-life balance. The term
"work overload" refers to the feeling that one has too much to do. (Leiter & Schaufeli, 1996).
People who believe they have too much work on their hands are more likely to feel exhausted
and fatigued, which can make it difficult to stay motivated to meet demands in other areas
(Aryee, et al., 2005). Workload was shown to be the most important element affecting work-
life balance, followed by role conflict (Omar, et al., 2015). Additionally, it demonstrated how
strongly and negatively all two aspects impacted how well individuals balanced their
professional and personal lives. These findings demonstrated that employees' work-life
balance was negatively correlated with their workload and perceived role conflict. Thus, by
taking into account the amount of work that is assigned to employees as well as their
perception of role conflict while executing the job, work-life balance can be enhanced
(Sareena & Zahana, 2020).

In today's modern business world, employee engagement has become a crucial aspect that
distinguishes it from other factors like employee satisfaction, motivation, and organizational
culture. It has been observed that the well-being and happiness of employees should be the
top priority of any successful enterprise. This is because happy employees lead to happy
customers, and happy customers lead to happy shareholders. Several studies have shown that
there is a strong correlation between employee engagement and business success (Gallup,
2021; Saks, 2006). Thus, when it comes to banking sector of Sri Lanka it is vital concern to
be discussed the customer satisfaction should be addresses in advanced. In order to make that
through a successful linkage, employee should be happy with his workload.

Employee engagement in his workload involves emotional and intellectual commitment to an

organization's goals and values. It is a positive feeling that employees experience about their
work and their employers. This emotional attachment can be seen as an important factor that
influences customer satisfaction and loyalty, as engaged employees are more likely to deliver
better service and take ownership of their responsibilities. A study by Aon Hewitt (2017)
revealed that companies with highly engaged employees experienced a 19% increase in
operating income and a 28% growth in earnings per share. Moreover, engaged employees
tend to be more innovative and productive, which can lead to better outcomes for the
organization. They are more likely to take initiative, learn new skills, and make suggestions
that could improve the organization's operations. Research has shown that companies with
engaged employees have higher profitability, productivity, and customer loyalty than those
without engaged employees (Harvard Business Review, 2018; Towers Watson, 2012).
2.2.2 Social support

Relationships that can be relied on are available, and their quality is improving thanks to
social assistance (Leavy, 1983). Organizational and family-related support are two ways in
which social support can be categorized (Brough & Pears, 2004). Personal social support
comes from a spouse, parents, children, extended family, or friends, and work-related social
support comes from the organizational members, including peers and supervisors, where an
employee works. Employers and employees both have a responsibility to maintain a healthy
work-life balance. Additionally, businesses need to look out for their workers by assisting
them in striking a healthy balance between their personal and professional lives. In other
words, the company must offer the assistance required by the staff to maintain a healthy
work-life balance. Organizational support is crucial because it shows that businesses value
the contributions of their employees and are concerned about their welfare (Eisenberger, et
al., 1986).

2.2.3 Family factor

Family factor also affect how engaged employees are. Although it is said that spouses can
provide assistance for employees, married employees are said to have higher family
obligations than single employees (Jaharuddin & Zainol, 2019). Family factors also affect
how engaged employees are. Although it is said that spouses can provide assistance for
employees, married employees are said to have higher family obligations than single
employees (Azoury, et al., 2013).

2.2.4 Self-Management

Self-management is a multidimensional construct that encompasses various aspects such as

self-regulation, self-control, self-discipline, and self-efficacy (Latham & Locke, 2006). Self-
management is a critical skill that is necessary for individuals to achieve their goals, both
personal and professional. The ability to manage oneself effectively is especially crucial in
the banking sector, where employees are expected to manage high-pressure situations and
meet tight deadlines.The capacity to manage resources is impacted by the self-management
of employees (Akanni & Ajila, 2021). Employees believe they can survive because they are
able to balance the demands of work and family since self-management is seen as a tool to
govern their life and job (Chan, et al., 2017). Employees' responses to work and family
responsibilities have an impact on their lives because they reflect how seriously the employee
takes his or her obligations to both his or her family and his or her job (Ibrahim, et al., 2018).
Several studies have examined the relationship between self-management and work-life
balance. Akanni & Ajila (2021) found that self-management significantly predicts work-life
balance among banking employees in Nigeria. The study concluded that employees who
possess strong self-management skills were better able to manage their work and personal
life, leading to a better work-life balance. Chan et al. (2017) explored the impact of self-
management on work-family conflict among Hong Kong banking employees. The study
found that employees who possess higher levels of self-management were better able to
manage the demands of their work and family, leading to a reduced work-family conflict. The
study concluded that self-management is a crucial factor in achieving work-life balance for
banking employees.

Similarly, Ibrahim et al. (2018) examined the relationship between self-management and
work-life balance among employees in the Malaysian banking sector. The study found that
self-management significantly predicts work-life balance among banking employees. The
study concluded that employees who possess strong self-management skills are better able to
manage their work and personal life, leading to a better work-life balance. Ahmad &
Shamsudin (2017) found that self-management significantly predicts work-life balance
among Malaysian banking employees. The study concluded that employees who possess
strong self-management skills were better able to manage their work and personal life,
leading to a better work-life balance.

2.2.5 Work Life Balance

Work-life balance refers to the ability of individuals of all ages and genders to effectively
manage their work and household responsibilities (Wheatley, 2012). The potential of
maintaining a satisfactory balance between their work life and personal life obligations are
focused to balance through work-life balance (Caven and Raiden, 2010). The authors Osoian,
Lazar and Ratiu (2009) emphasize that it is vital to realize that in order to balance between
work life and personal life, there is no requirement of allocating similar amounts of time and
energy for both of the dimensions. Human resource management is a critical aspect of
management and can serve as a source of competitive advantage for a business. As a result,
organizations are eager to exploit their human resources effectively and efficiently in order to
accomplish the established goals and objectives agreeing to the author Opatha (2009).
Agreeing to the authors Perera and Opatha (2014) work-life balance is an expanding concern
globally, in the fast-paced business environment. Researchers have numerous studies on
balance of work-family in order to identify the interplay between family life and professional
life in recent years. In contemporary world of business and society, work-family balance is
has become a widespread issue. However, the development of the theories and concepts of
this topic has not gained a considerable interest (Grzywacz and Carlson, 2007). Demographic
and workplace changes, including shifts in family structures, a decreasing tolerance for long
working hours, an increase in the number of women in the workforce, and technological
advances, can make it difficult for employees to prioritize their work and personal lives as
emphasize by the authors Obiageli, Uzochukwu and Ngozi (2015).

2.2.6 Management Theory Review related to Work Life Balance

Ladder Theory

The ladder theory emphasizes two major dimensions of balancing work-life. These are the
individual and the organizational aspects. These two elements act as the two legs of a ladder.
Obligations of the organization to its employees are represented by the left leg. The
responsibilities of employees to the organization are represented by the right leg (Bird, 2006).
In terms of its importance to businesses, ladder theory can be used to understand how
customers and employees interact with a company. By understanding how individuals view
their relationship with a business, companies can tailor their marketing and customer service
strategies to better appeal to their target audience (Hill and Scott, 2019).
 Figure 1: Ladder Theory

Source: (Bird, 2006).

Congruence Theory

The congruence theory suggests that there is a connection or equality between work and
family. Further, this relationship is influenced by factors such as genetics, personality traits,
and socio-cultural forces. The congruence theory posits that variables such as genetics or
community relations can have a positive impact on both work and family aspects (Mathew &
Natarajan, 2014). In terms of its importance to businesses, congruence theory can help
organizations to create a more positive and productive workplace culture. By ensuring that
employees' attitudes and behaviors are aligned with the company's values and goals,
organizations can improve employee engagement, motivation, and job satisfaction. This can
lead to better employee retention, which can ultimately save the business from the cost of
high turnover rate (Zhu, Teng, Foti and Yuan, 2019). Further, congruence theory suggests
that work and family life can be interconnected, has gained considerable attention as a
theoretical framework to examine the relationship between work and life domains (Gutek,
Searle, & Klepa, 1991). Several studies have investigated the applicability of congruence
theory in the context of work-life balance in the banking sector. For instance, a study by Wei
and colleagues (2019) examined the relationship between work-family conflict, work-family
enrichment, and job satisfaction among bank employees. The results of their study indicated
that work-family conflict negatively affected job satisfaction, while work-family enrichment
positively affected it. The authors suggested that congruence between work and family
domains is essential for maintaining a positive work environment and ensuring employee
well-being.

Another study by Zhu and colleagues (2019) explored the role of congruence between
employees' personal values and organizational values in predicting job satisfaction and
organizational commitment. The results indicated that congruence between personal and
organizational values was positively related to job satisfaction and organizational
commitment. The authors concluded that creating a congruent work environment that aligns
with employees' personal values can promote a positive work-life balance and improve
employee well-being. Apart from that, the study conducted by Alzahrani and Alghamdi
(2018) examined the relationship between work-family balance, job satisfaction, and
organizational commitment among bank employees. The authors found that work-family
balance had a positive impact on job satisfaction and organizational commitment. They
suggested that promoting a supportive work environment that allows employees to balance
their work and family life can enhance job satisfaction and organizational commitment.

Ecological Systems Theory

The ecological systems theory (EST) is a theoretical framework that emphasizes the dynamic
interaction between individuals and their environment. EST was originally developed by
Bronfenbrenner (1979) to explain human development, but it has since been applied to
various fields, including organizational behavior and work-life balance. The relationships
within a worker's ecosystem is explained through the ecological theory of work-life balance
(Pocock, Skinner and Ichii, 2009). Worker ecosystems (microsystems) are concerned as a
part of larger exosystems, according to the ecological theory. Factors such as procedures,
individuals, context, and time are the determinants that affects the work and family. These
elements collectively contribute to the overall experience of work and life (Grzywacz and
Marks, 2000). Ecological systems theory can help organizations to understand how the
different environments in which they operate (e.g. the community, culture, laws, policies) can
impact their business outcomes. By understanding the ways in which these different systems
interact and influence one another, businesses can create strategies that are better aligned with
the social and cultural context in which they operate (Aldrich and Wiedenmayer, 2019).
Several studies have applied EST to understanding work-life balance in the banking sector.
For example, Pocock, Skinner and Ichii (2009) applied EST to understand the role of
workplace flexibility in achieving work-life balance. They found that workplace flexibility
was an important determinant of work-life balance, but it was influenced by broader societal
factors such as cultural norms and government policies. Grzywacz and Marks (2000) used
EST to understand the role of job demands and resources in work-life balance. They found
that job demands, such as workload and time pressure, were negatively associated with work-
life balance, while job resources, such as social support and autonomy, were positively
associated with work-life balance. Further, scholars have applied EST to understanding the
role of family and social support in work-life balance. For example, Clark (2000) found that
family support was an important predictor of work-family conflict and work-life balance.
Similarly, Greenhaus and Powell (2006) found that social support from coworkers was an
important determinant of work-family conflict and work-life balance.

Resource Drain Theory

The resource drain theory suggest that work and life are negatively correlated when focusing
on resources. The allocation of resources in one aspect reduces the amount resources
available for the other aspect. This theory is based on the principle of scarcity (Morris and
Madsen, 2007). If resources such as time, energy, and money are insufficient related to a
certain aspect, it reflects a potential of leading towards stress and breakdown (Frone, 2003).
Resource drain theory can help organizations to understand the impact that negative
employee attitudes and behaviors can have on their bottom line. By recognizing the potential
for resource drain, businesses can take steps to mitigate the effects of negative employee
attitudes and behaviors, such as implementing employee engagement programs, providing
training on positive workplace culture, and addressing issues of low job satisfaction (Sha, Li,
Law and Yip, 2019).

2.2.7 Past Research Findings

The findings of the authors Upeksha and Lakmali (2021) expose self-management factors,
work factors, and family factors are the significant determinants of work life balance of the
employees. The self-management is associated with the potential of task prioritization, degree
of commitment towards work, willingness for the delegation of work as well as the skills
related to relationship management (Upeksha and Lakmali, 2021). Self-awareness is
identified as a vital element that supports for the accomplishment of self-management.
Individuals who exhibit high levels of self-management have the ability to regulate and direct
their emotions and behaviors, a trait known as "think before acting (Stubbs and Wolff, 2008).
In self-management, individuals can learn to manage and control negative emotions such as
anger and disruptive feelings (Luthans, 2012). The authors of Nii-dei, Kwabena, Stella, Sarfo
and Harriet (2013) highlight that self-management involves recognizing the importance of
effectively utilizing the time and resources available in one's life, as they are limited. This
means managing oneself in order to achieve a desirable quality of life, including having time
for family and friends, hobbies and sports, travel, and volunteer work.

In addition, according to the findings of the authors Rifadha and Sangarandeniya (2015) the
personal factors, job related factors, and organization factors are the factors that determine
work life balance of an employee. Helmle, Botero and Seibold (2014) highlight that
involvement of job, work flexibility, and permeability of communication are significantly
related to viewpoints of work life conflicts. However, spousal support showed a direct
influence on the individuals’ viewpoints of life-work balance.

The family factors deal with the support given by the partner or the job of the partner,
communication with family members, as well as the expanded support of the family
(Upeksha and Lakmali, 2021). The demand from organizations to address the family
responsibilities of employees show an increment recently. This has occurred as a result of the
number of households that increases with single parent and two earners as imply by the
authors Fatima and Sahibzada (2012). Working parents of young children often face the
challenge of finding and paying for high-quality childcare, which can be expensive and
consume a significant portion of their income. A double burden of child and elder care is
created on women while decreasing the likelihood of women being employed. This generates
a greater emotional burden on women compared to men (Elliott, 2003). In practice, women
often bear the majority of the childcare responsibilities and are show high probability of
working part-time in order to manage family responsibilities (Daly and Lewis, 2000).

As indicated through the research outcomes of the authors Umma and Zahana (2020), work
overload, social support and childcare are the factors significantly influences the work life
balance. Work overload occurs when an individual feels that they have too much work to do
(Umma and Zahana, 2020). Individuals can feel experience depletion and fatigue as a result
of being clogged by their workload This has a potential of making negative influences on
their motivation to fulfill the demands of other aspects of their personal lives, such as
relationships with companions and family (Aryee, Srinivas and Tan, 2005). The outcome
generated by the employees do not increment considerably by the overworked employees
agreeing to the observations. Employees can become frustrated and feel that their work-life is
out of balance, when employees feel overwhelmed by their workload according to the author
Vogel (2012). Social support refers to the availability of supportive relationships and the
improvement of the quality of these relationships (Umma and Zahana, 2020). Organizational
support and family-related support are the two major segments of social support (Brough and
Pears, 2004). Organizational members like peers and supervisors offer the social support
related to work at the workplaces. The partners, parents, extended families, children, and
friends offer the personal social support. However, support from a spouse, particularly the
husband, can help to alleviate conflict in the spouse's roles (Umma and Zahana, 2020). Not
just the employees are responsible of maintaining an effective balance between work life and
career life. Employers are also responsible. Therefore, it is the responsibility of the
companies to take care of their employees in order to support for work-life balance as imply
by the authors McCarthy, Cleveland, Hunter, Darcy and Grady (2013).

2.2.8 Research Gaps

The authors Umma and Zahana (2020) conducted their researches regarding the work life
balance of the teachers of Government Schools in Sri Lanka. The authors concerned work life
balance to their study. However, not focused on the banking sector of Sri Lanka. Involved the
factors of work overload, social support and childcare. The influence made by the work life
balance on Job Satisfaction is examined by the authors Rifadha and Sangarandeniya (2015)
with reference to the Managerial Level Employees of People’s Bank (Head Office), Sri
Lanka. This study focused on the work life balance of the banking sector in Sri Lanka. Even
though, only concerned Managerial Level Employees of People’s Bank (Head Office).
Concerned the personal factors, job related factors, and organization factors. In addition,
Upeksha and Lakmali (2021) executed their study related to the Work–Life Balance among
Banking Professionals: An Inquiry into a Private Bank in Sri Lanka while focusing on the
factors self-management factors, work factors, and family factors. However, it can be
identified that none of the authors have focused their studies to investigate the work life
balance of the banking employees of ABC Bank in Sri Lanka. Therefore, this research is
executed through the research gap identified involving workload, social support, family
factors, and self-management as the factors.
2.2.9 Research Objectives

The main research objective is to investigate the factors affecting to the work life balance of
the banking employees at ABC Bank.

The sub objectives developed to continue this study are emphasized below.

1 To identify the factors affecting to the work life balance of the banking employees at
ABC Bank.

2 To suggest effective ways to improve work life balance of the banking employees at
ABC Bank.

3 To determine the effect of work life balance of the banking employees at ABC Bank

4 To examine which factor of work life balance has more impact on employees at ABC
Bank

2.2.10 Conceptual Framework

Independent Variables

Workload

Dependent Variables

Social Support

Work Life Balance

Family Factor

Self-Management

Figure(The
Source: 2: Conceptual
Author,Framework
2023)
2.2.11 Research Hypotheses

Ha1: There is a significant impact of social support on work life balance

Hn1: There is no significant impact of social support on work life balance

Ha2: There is a significant impact of workload on work life balance

Hn2: There is no significant impact of workload on work life balance

Ha3: There is a significant impact of self-management on work life balance

Hn3: There is no significant impact of self-management on work life balance

Ha4: There is a significant impact of family factor on work life balance

Hn4: There is no significant impact of family factor on work life balance