Impact of Job Satisfaction on Employee Performance

By
Neha Amin
2019-BBA-14
Submitted to
Sir Nida Muhammad

Institute of Management Sciences

University of Baluchistan Quetta
Session 2019-23
Contents
Chapter 1. Introduction...........................................................................................................................2

1.1 Aim of Study..............................................................................................................................4

Chapter 2. literature Review................................................................................................................5

2.1 Job Satisfaction..........................................................................................................................5

2.2 Concept of Job satisfaction, reward and performance..........................................................6

2.3 Performance..............................................................................................................................8

2.4 Employee Performance.............................................................................................................8

2.5 Job satisfaction and performance relationship.......................................................................9

6. References............................................................................................................................................12
 Chapter 1. Introduction

work satisfaction plays a significant role in enhancing and maintaining organizational

productivity and employee loyalty, by providing efficient service and superior performance.
Every organization's success depends on both work performance and job happiness. Today, in
order to guide organizations towards their objectives, managers must take into account both work
happiness and job performance while making decisions. The majority of studies have been done
and shown that work satisfaction and performance are closely associated to one another and have
a stronger positive or negative influence on the overall productivity and performance of the
organization. According to (Kumari & Pandey, 2011) job satisfaction is characterized as a
positive emotional state brought on by one's assessment of their work, their affective response to
their work, and their attitude towards their work. This term suggests that we develop attitudes
towards our work while taking our disposition, beliefs, and manners into consideration. Even
though there is no doubt that they are connected, fulfilment in work and inspiration are
frequently used separately. Job fulfilment, on the other hand, is a certain perspective on the
position that workers have, and this perspective is influenced by both positive and negative
emotions and connections with one's job, according to (Newstrom, 2007)

In other words, it refers to how workers observe what they do and how those jobs affect
how they behave while performing those jobs. Employees are essential resources for all
companies, and their commitment to their work and level of job satisfaction are crucial variables
in determining whether a sector can maintain its competitive edge. Job satisfaction is the primary
organizational goal and is crucial for increased competitiveness and organizational success
( Bernal, Castel, Navarro, & Torres, 2005) According to ( Bernal, Castel, Navarro, & Torres,
2005) "Satisfaction" is defined as the "final state of a psychological process." According to the
majority of research, organizational policies have an impact on workers' behavior.

Satisfaction among workers is essential to every company's leadership since it is one

requirement of a well-organized organization. On the amount of employee happiness, it is said,
will rely the future success of the company. If a company's employees are not happy, it may have
an impact on the organization or business. Practices in human resource management (HRM)
offer a variety of significant sources for improved business performance (Pfeffer & Veiga,
1999). The amount of satisfaction attained inside the organization determines whether an
employee is happy in his or her job and if they are willing to remain or quit their current position.
Each firm examines certain HRM practices, such as skill acquisition and training, in order to
fulfil its purpose and vision. To support satisfaction at work regarding workers' dedication and
loyalty, it is necessary to implement all the practices such balanced reward/recognition,
employee involvement in decision-making, working conditions, empowerment of staff members,
upward mobility, etc.

The productivity of workers eventually provides a critical part in the advancement of a

company, and how satisfied workers are having a substantial impact on that efficiency. Since the
globe has become more like a little community, workers can travel not only inside their own
nation but also outside. workplace is always looking for competent workers due to the fierce
rivalry, and human resources are one of the assets that are hardest to keep. As a result, workplace
should focus on those elements that might affect employee happiness. Occupational justice is
crucial to understanding how an individual views the fairness of the benefits he should receive
and what he really receives from the workplace (Fernandes & Awamleh. , 2006) Highly pleased
workers demonstrated Occupational Characteristics felt more devoted to the company, and made
an effort to work effectively because they believed that their workplace was going to take care
about their outstanding performance (Fatt, Khin, & Heng, 2010)

High-level performance achievement via productivity and efficiency has long been a top
focus for organizations. To get a high degree of performance progression for a workplace, a
highly satisfied work force is a vital prerequisite. A happy employee puts more effort into their
work, which results in better and tougher work. As a result, every company strives to develop a
happy workforce that will function for the benefit of the company.

However, the effectiveness and efficiency of each person inside the workplace directly
affects the performance of the entire organization. In order to achieve high corporate efficiency,
each entity heavily depends on the performance of each individual employee.

Employee effort has a significant role in determining how well each individual performs.
An employee is driven to put forth more effort in the performance of the job when they are
happy with their work. The organization's overall performance subsequently tends to improve as
a result. In other words, a happy employee is essential to the success of the business, as is his
labor and dedication. As a result, this study's address research problem is that;

1.1 Aim of Study

Is there an impact of job satisfaction on employee performance?

There is research from literature that shows a connection between employee performance and
work happiness. However, the purpose of this study is to evaluate the reliability of this
association in the context of the workplace. Therefore, the precise goals of this research are to
ascertain if there is a link between employee performance and work happiness.

 To determine if employees get more job satisfaction from fundamental or exterior

employment incentives.
 To determine the most fulfilling experience a person has had at work and the reasons why
people stay in their positions or quit the company.
 To determine the impact of expertise, years of age, and gender on workers' job
satisfaction.

The literature reviews pertinent to the inquiry, the research technique used, the results and
analysis, the inferences made from the study, the feedback and proposals, and the topics for
additional investigation are all discussed in this essay.

Chapter 2. literature Review

2.1 Job Satisfaction

Job satisfaction, “an unquantifiable metric, is defined as a positive emotional response

you experience when doing your job or when you are present at work. Leading organizations are
now trying to measure this feeling, with job satisfaction surveys becoming a staple at most
workplaces” (Mallick , 2011).
 Research on the connection between job performance and job happiness has always been
a top concern for academics. In the hallowed pursuit of the relationship, the Hawthorne studies
gave birth for the first time to the human relations movement.

In accordance with (Locke, 1969) the relationship between one's expectations for the
job and what they really perceive they are getting from it is what is known as job
satisfaction. The researchers measured the Independent organizations managers find out the
factors that influencing job satisfaction. That the rewards accomplish the job satisfaction
strength of workforce in the workplace (Sokoya, 2000). According to (Okpara, 2004) study,
there are few things that effect an employee’s degree of satisfaction. These include pay,
chance for advancement, the actual labor interaction with coworkers and the managers
supervising. Compensation was regarded as the key determinants in determining a
workforce happiness. In parallel studies by ( Frye, 2004) , and it’s finding is that the
compensation is the key determinant to attain and keep the workforce for era. The reward
is proportional to job satisfaction in the workplace and at last the there is a co relation
of job satisfaction towards salary (Anh, Jim, & Steve, 2003) In order for businesses to
attract and keep the proper employees for an era. Over the past forty years, researchers
have conducted significant studies on job fulfilment. Because It is believed that better
fulfilment on the job results in Efficiency at work increases with job happiness. (Yang ,
Brown, & Moon, 2011) The level of satisfaction is crucial for an organization to have
because it can have a big impact on several areas, including sociology, organizational
behavior, efficiency, and leadership, among others. That is the reason job happiness is
important where work is done.

Various studies employ job satisfaction as a dependent and independent variable. The
studies revealed that the dependent variable, work satisfaction, is connected to gender, age, IQ,
race, education, and a number of personality factors. While productivity, absenteeism, accidents,
and turnover were all connected with job satisfaction as an independent variable.

Workers were rewarded not just with pay commensurate with their performance but also
with a sense of accomplishment or sentiments of internal fulfilment. According to (Bigliardi,
Dormio, Galati , & Schiuma , 2012) research, employees who are satisfied with their jobs
perform better at work, which demonstrates the presence of justice in the organization.
Job fulfilment is crucial for attracting and keeping the interest of qualified employees. Staff
member view of their tasks and the organizations in which they work is known as job
satisfaction. Job fulfilment is a worker's evaluation of his or her performance based on an
appraisal of expected and actual rewards (Mosadegh Rad , 2006).

According to (Oshagbemi & Hickson, 2003) ,work grade has a significant influence on
work fulfilment, whereas gender categories has no bearing on satisfaction with work within a
particular rank. According to (Misener, Haddock, Gleaton, & Ajamieh, 1995) job fulfilment
often includes aspects of happiness with regard to the work environment, advantages, salary,
relationships with others, possibilities for advancement, & administration.

2.2 Concept of Job satisfaction, reward and performance

The key ideas included in the study's problem statement are defined in this section. These
ideas include organizational incentives, performance, and job happiness.

Most people agree that a positive attitude towards one's employment contributes to job
happiness. employment satisfaction is, in other words, an affective or emotional reaction to a
variety of aspects of one's employment. Positive attitudes are held by those who have high levels
of job satisfaction, whereas negative attitudes are held by those who have low levels of job
satisfaction.

A thorough definition offered by Locke is cited by (Luthans, Rubach, & Marsnik , 1995)
pleasant or happy emotional state brought on by an evaluation of one's work or professional
experiences. Employee assessment of how effectively their employment delivers the things they
perceive as vital has an impact on how satisfied they are with their jobs. According to (Raihan &
Karim, 2017) job satisfaction is also described as a combination of emotion caused by a person's
impression of the fulfilling of his requirements in connection to his job as well as the
environment. According to (Onyebuchi , Obibhunun, & Okechukwu, 2019), job satisfaction is a
complicated concoction of knowledge, emotion, and preferences.

It is obvious from the previously mentioned definitions that work satisfaction is an

observable variable.

As a result, it is impossible to quantify occupational satisfaction. However, the existing

research identifies a range of methods. The major goal of incentive schemes is to recruit
competent individuals to the company in order to keep employees engaged at work and to inspire
them to perform at a high level.

The person evaluates the benefits even if the organization is the one who gives them. The
person experiences some amount of happiness, if the benefits are sufficient and fair. Extrinsic
rewards and intrinsic rewards are the two major categories into which the rewards may be
divided. Psychological pleasures that a person personally experiences are known as inherent
benefits. These are referred to as incentives that are inherent in the work itself. (Gibson, John, &
Donnely, 1991). According to (Arora , Stoner, & R., 1992), it was also described as a psychic
reward that an employee personally experiences.

There are several variables that affect job happiness. By thinking back to the aspects of
job satisfaction, the main ones may be summed up. They include compensation, the actual work,
advancement opportunities, supervision, workgroup, and working environment (Luthans,
Rubach, & Marsnik , 1995).

Additionally, work happiness has important managerial ramifications. Employee

performance will improve if they are happy in their jobs. On the other side, there will be
performance issues if there is a low level of work satisfaction. It is crucial to divide the study
into several distinct sets of variables when looking at the results of work satisfaction.
Productivity, turnover, absenteeism, and other outcomes (accidents, complaints, physical and
mental health) are some of them.

In order to maintain personnel, the primary goal of reward programs is to recruit

competent individuals to the company.

2.3 Performance
Perception, also known values, and attitudes have a significant influence on performance. It
almost seems difficult to make sense of all the factors that may be affecting how well a work is
done.

According to (Lawler & PORTER, 2008), performance is a result of a person's talent, skill, and
effort in a particular scenario. Employee talents and abilities are rather steady in the near term.
As a result, for the sake of the study, the researcher defines performance as the amount of effort
that employee puts into their work.

When employees are happy in their jobs and have their needs addressed, they get attached to
them and put out effort to do better at their jobs, which is what we mean when we say that they
put forth effort. Better performances are the outcome of greater effort.

2.4 Employee Performance

Human resource is also one of the essential factors for workplace growth. This source
makes use of others and gets the best outcome from them. And for the best human resource
requires a system and the best management if the workers are satisfied with their job, they do the
best work for their workplace. But if they are unsatisfied with their job they do their jobs
unhappily and cause loss for the organization.

Several old researchers have shown that workplace satisfaction has a great impact on
managerial activities such as Allegiance, loyalty (Valaei & Rezaei, 2016), employee turnoff
(Stamolampros, Korfiatis, Chalvatzis, & Buhalis, 2019), workplace changes (Yousef, 2017),
leadership, and business culture (Pawirosumarto, Sarjana, & Gunawan, 2017). At the same time,
all these things impact the workplace performance (Lima, Loob, & Lee, 2017) numbers of
previous studies also describe the relationship between job performance, job satisfaction, job
allegiance and loyalty (Pang & Lu, 2018), (Valaei & Rezaei, 2016), (Haq, Kuchinke, & iqbal,
2017). So management is very important for employees to make them happy. Managers always
make effort to make their, employees satisfied with their job. Managers think the greater the job
satisfaction, the greater the return products for the organization. This is noticed by many
scholars, writers, and researchers. (khan, Nawaz, Aleem, & Hamed, 2011).

In the language of cooperation behavior, and psychological behavior, job happiness is

reviewed the most important examined area. (Joseph, 1996), (George, Louw , & Badenhorst,
2008).

A few pieces of work show the relationship between job satisfaction and workplace performance
(Imran, Ismail, & Hussain, 2021), (Muterera, Hemsworth, Baregheh, & Rivera, 2016),
(Coggburn, Jr, & Bradbury, 2017), (Mafini & Pooe, 2013) and other studies defined the negative
relationship between job satisfaction and workplace performance (Zeffane & Melhem, 2017)
(Kanyurhi & Akonkwa, 2016); (Coggburn, Jr, & Bradbury, 2017). Researchers can find many
ways to satisfy employees and how to fascinate, trigger and satisfy employees. Job satisfaction
has directly associated with performance and productivity of the organization. Including more
job satisfaction can retain labors and lower the cost of appointing new labors. (Murray & A,
1999).

Alternatively, the consequence of job dissatisfaction is rising the cost of appointment,

training, and motivation and reduction in the production of the organization. So studying job
satisfaction is play a vital role in organizational behavior. (Velez & David, 1993).The
unfavorable pay is the reason behind the loss of staff. (Abbasi & Hollman, 2000)Additionally,
there is a favorable relation between salary and work satisfaction for employees inside an
organization. Another research was carried out to determine the impact of remuneration at work.
(Milman, 2002).

2.5 Job satisfaction and performance relationship

In a variety of organizational situations, the relationship between job happiness and performance
has been carefully examined. These research' findings have been inconsistent. (Cummings, 1970)
distinguished three main perspectives on this interaction. Performance is caused by satisfaction,
Performance and enjoyment are both influenced by rewards, and vice versa. Several studies
support three points of view. According to conclusive research by (Mirvis & Lawer, 1977) job
happiness and performance are related. Their proposed arguments are that satisfied tellers were
less likely to exhibit shortages and less likely to quit their employment while attempting to
evaluate the efficiency of bank tellers in terms of shortages of cash. More than thirty studies have
been undertaken to determine the connection between success and fulfilment in the
manufacturing industry, according to (Kornhanuser & Sharp, 1976). Numerous studies have
discovered that work happiness and productivity have a beneficial association. Neither turnover
nor output quality were linked to work satisfaction, according to research by (Katzell, Barret, &
Porker, 1952). After reviewing the research, (Smith & Cranny, 1968) came to the conclusion that
performance—including effort, dedication, and intention—is linked to satisfaction. Evidence
from the Relay Assembly test room in the (Western Electric Studies, 1966) shown a striking
trend for higher staff productivity to be correlated with higher work satisfaction.
According to (Porter & Lawler, 1974), increasing pleasure from performance possibilities serves
to raise aspirations of success leading to rewards, which in turn affects a worker's effort. (Carroll,
Keflas, & Watson, 1964) discovered a significant link between production and delight, where
each influences the other. They contend that high perceived standards for achievement result in
increased effort. Successful achievement is the result of the effort, which again results in
pleasure in a vital relationship. According to (David, Joseph, & William, 1970), the sort of
incentive system that employees perform under has a significant impact on the link between
fulfilment and achievement.

Infrequently the association between job satisfaction of job and workplace performance is
understand in the perception of the Banks and medical sectors. Job happiness is not the
workplace performance inspection but can affect the success of the workplace (Shahzad,
Farrukh, Kanwal, & Sakib, 2018). Organizations must sustain job satisfaction between their
employees to trigger the performance of the workplace. (Kanyurhi & Akonkwa, 2016). The
success of a workplace depends upon the loyalty of its employees to their job/work. Workplace
become more profitable, if their labors are more senior or loyal to their work (Ukil, 2016).
Satisfaction of job effects alot; it varies from place to place from organization to organization.
Every place has different effects regarding Job satisfaction (Shahzad, Farrukh, Kanwal, & Sakib,
2018). But important to examine job satisfaction from culture as well. In Pakistan, researchers
took the Doctors and banking sector as an example of job dissatisfaction. In Pakistan, doctors go
on strike because they are unhappy with the pay, promotion, and development policies. 60% of
clinics and hospitals were out of jobs which cause a large number of death due to the absence of
doctors in the clinics. (Kazim, 2011).Thus the study aims to find the facts that lead employees to
go on a strike in the Medical sector which has a direct impact on public health and may cause
death. Discuss the job satisfaction in Pakistan does not discuss in the five aspects of (Spector,
1997). (Spector, 1997) gives the theory of Job satisfaction survey (JSS) and organization
performance. Aim of this study is to remove this gap with JSS and organization performance. In
order to know the attitude of employees, towards their job and the aspects of jobs. JSS is used
that is a type of ceurtiomire based on thirty-six (36) items, nine scales, that are Supervision, Pay,
Fringe, Benefits, Promotions, Contingent rewards, coworkers, communication and nature of
work. (Spector, 1997)
 Therefore, (Pang & Lu, 2018) takes 5 facets of workers regarding to their work,
satisfaction of job, which includes Salary, promotion, condition of work , co-workers, and
supervision. To analyze the job satisfaction of doctors and private banking sectors. But according
to (Li, Huang, & Chen, 2020), remunerate, margin benefits, and development offers are the three
factors for satisfaction of job. And (Hassan, et al., 2011)says that wages, margin benefits,
development offers, and rewards are the basic factors to analyze job satisfaction. This shows that
numerous scholars have different thoughts of the mind to examining job satisfaction but in the
present analysis, main factors of job satisfaction are Salary, opportunity for promotion and other
benefits suggested by (Spector, 1997). The JCM (Job attributes Model), developed by (Hackman
& Oldham, 2004), is well known for examining the effects of particular job attributes, such as
satisfaction with work, on employment outcomes. According to (Bigliardi, Dormio, Galati , &
Schiuma , 2012), job satisfaction manifests differently in every person and varies in level
depending on a variety of variables including the workplace, one's requirements, demands, and
personalities.
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