Seminar Paper - Roshani Shai
Seminar Paper - Roshani Shai
A Seminar Paper
By Roshani Shai
Submitted to
Faculty of Management
Tribhuvan University
February, 2023
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ACKNOWLEDGMENTS
I would like to express my special thanks of gratitude to all my faculties especially academic
head Dhurba Prasad Timalsina sir and class teacher Uttam Koirala sir for continuous support and
encouragement, which helped me a lot in drafting this seminar paper, entitled “Effect of job
satisfaction on employee performance”. Secondly, I would like to thank my parents and friends
who helped me a lot in finalizing this seminar paper within the limited time frame. This paper is
designed following the formats and guidelines produced by Tribhuvan University (TU). I am
fully liable for any discrepancy as errors and mistakes found in this paper.
Roshani Shai
BBM second semester
Southwestern State College
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TABLE OF CONTENTS
ACKNOWLEDGMENTS...............................................................................................................2
TABLE OF CONTENTS................................................................................................................3
ABSTRACT....................................................................................................................................4
CHAPTER I.....................................................................................................................................5
INTRODUCTION...........................................................................................................................5
Background of study....................................................................................................................5
Statement of Problem................................................................................................................11
Research Design....................................................................................................................12
Sources of information..........................................................................................................12
CHAPTER II.................................................................................................................................13
Theoretical review.....................................................................................................................13
CHAPTER III................................................................................................................................19
CONCLUSION..............................................................................................................................19
Main findings.............................................................................................................................19
Conclusion.................................................................................................................................20
REFERENCES
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ABSTRACT
The objective of this paper is to review the conceptual and empirical literature on the concept of
job satisfaction and its impact on employee’s performance. In order to identify its origins, key
arguments and areas for further work. Consideration is given to the behavior of each individual
or employees of organization towards their job regarding top their satisfaction. The paper
highlights a number of areas for the further attention, including the factors that effects the job
satisfaction of an employee job, pay, promotion, supervision, work group, working condition)
and techniques of improving job satisfaction (appropriate financial incentives, effective division
of work, job security, friendly, job enrichment, positive working environment, effective
communication system, employee motivation, participation in decision, fair competition). The
paper concludes that importance of job satisfaction which is significant increasing the efficiency
of the organization.
CHAPTER I
INTRODUCTION
Background of study
Job satisfaction refers to the attitudes and feelings employees have about their work. In other
words, job satisfaction can be also called as the collection of feelings and beliefs employees have
about their current jobs. It can be either positive or negative or negative. Job satisfaction is
directly associated with the organizational structure and organizational design.
According to Arnold and Fieldman “Job satisfaction is the amount of overall positive feelings
that individual has towards their job”. Similarly, Stephen P. Robbins defined “Job satisfaction is
a general attitude towards his/her job.”
Positive and favorable attitudes towards the job satisfaction is a positive emotional state
resulting from evaluating one’s job experiences where negative and unfavorable attitude towards
the job indicate job dissatisfaction. Mainly, satisfaction with one’s job reflects a person’s
affective response resulting from an evaluation of the total job situation. A person will be
dissatisfied if there is less than the desired amount of a job characteristics in the job. For
example, if a person expects to be promoted in 2 years and then if not, the person will be
dissatisfied. A person will be dissatisfied if there is no discrepancy between desire and actual
conditions. If there is more than the employee expected of some job factor then the person will
be very satisfied. Hence, job satisfaction is a balance condition where the employees are fully
satisfied with job and work environment.
Likewise, employee performance is defined as how an employee fulfills their job duties and
executes their required tasks. Performance also contributes to our assessment of how valuable an
employee is to the organization. Each employee is the serious investment for a company, so the
return that each employee provides must significant. Business investigated just how much
revenue top tech companies make per employee. A high- performing employee is extremely
valuable to a company. In fact, there is no greater asset than top talent. Employees are the key
resources of the organization. That’s why their satisfaction and positive attitude toward there is
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Job satisfaction has many dimensions. Commonly noted facts are emotional response,
expectancy and attitudes. Each dimension contributes to an individual’s overall feeling of
satisfaction with job itself. Dimensions of job satisfactions are: -
An employee satisfaction survey is a tool used by human resource managers. It gives them better
understanding of how happy employees are in the workplace. The main purpose of the
employee’s satisfaction survey is to allow management better insight into how they can improve
system and processes that are in place.
Employees are most valuable assets of an organization. Employees provide many benefits to the
organization that’s why a manger should keep his/her employees happy for employee’s welfare
as well as to boost the performance of the employees in an organization. The importance of job
satisfaction is presented as follows.
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Higher productivity: Employees who are satisfied with their job are likely to be productive and
creative which ultimately leads the better performance of the employees in an organization.
Employees can be satisfied with the organizational culture, the reward they receive, or
recognition they receive, can produce more and do it more efficiently. Therefore, job satisfaction
helps to achieve higher productivity in the organization.
Minimize strike and strikes: Satisfied employees are likely to be in sound health whether its
physical or mental. These types of employees maintain coordination and foster a sense if
harmony among employees and with management. It reduces misunderstanding, disagreements
and conflict among the employees and the management which results harmony in the
organization.
Better working environment: Job satisfaction helps to create a better working environment that
promotes employee’s safety, growth and goal attainment. Employees will be more willing to put
in extra effort if they believe their jobs are enjoyable and interesting.
Lower number of accidents: Job satisfaction can be obtained through good organizational design
and structure. Bad or confusing organizational design and structure may not only create
confusion in doing task but can also result accident. One of them underlying reasons for this is
that dissatisfaction diverts attention away from the task, which directly leads to accidents. A
happy worker will always be careful and attentive to his/her work, and the chances of an accident
will be lower.
Loyalty: Employees are more loyal towards their job if they are positively satisfied. Employees
are more satisfied when they believe there is a path, they for progress for them. As a result, they
tend to support the organization’s mission and objectives because they believe the organization
has their best interest at heart. When this occurs, employees may tell their friends or relatives
about the organization’s good nature, which aids in the spread of organizational goodwill.
Increased profit: Profits are a stronger bottom line for any organization. Every manger and
employees can appreciate the organization’s increased profits. Keeping employees can lead to
higher sales and lower costs, which leads to higher profit.
Support in organizational change: organization needs to adjust its business activities as per
changing environment. Change in management systems, work culture ability in organization
structures is critical for this purpose. Employees, particularly their unions, may create resistance
to change in some situation. They are concerned about their job security and stability. Satisfied
employees are aware of the positive outcomes of the change.
In sum up, satisfied employees are typically more loyal and willing to take on additional work
during challenges times. They help make the work environment more pleasant and ensure the
district keeps running smoothly.
Job satisfaction is element, and t big factor in employees’ engagement, and the level of
discretionary effort team members are likely to make. No doubt, people’s work performance
suffers when they don’t feel satisfied with their jobs, not to mention their quality of life. It may
lead to cost reduction by reducing absence, tasks errors, conflict at work and turnover. As work
is an important aspect of people lives and most people spend a large part of their working lives at
work, understanding the factors involved in job satisfaction is crucial to improving employee’s
performance and productivity. Some of the factors affecting job satisfaction are presented as
follows.
Working Environment
It is essential to provide employees with a work environment that is conductive in their overall
development. They need an environment which is healthy and safe and which caters to both
personal comfort and facilitates doing a good job. If the working condition are good (clean,
attractive surroundings) the personnel will find it easier to carry out their jobs. On the other hand,
if the working conditions are poor (hot, noisy surroundings), personnel will find it more difficult
to get things done.
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Individual who perceives that the promotion decision is made in a fair and just manner are likely
to experience satisfaction from their jobs. Very often employees are demotivated and dissatisfied
with their jobs because unfair policies and practice prevail, they’re at place of work. It is
therefore of utmost importance for an organization to have a fair and equal system regarding
practice and policies so that there is no discrimination and frustration.
Caring Organization
Care can be shown in various ways, but it takes into consideration career development, adult
treatment, being taken seriously and being appreciated for job well done. When people feel that
the organization for which they are working, cares for them and takes actions to improve their
work and lives they are happy and creates higher satisfaction.
Appreciation
The human races love to be appreciated. Even for the smaller job that does one seek to have an
appreciation from colleagues, boss and seniors. When one gets acknowledged in front of
everyone, it gives up a boost to their morale. When appreciation leads to encouragement the
ultimate result is reflected in the efficiency of work automatically. Therefore, the level of job
satisfaction is always higher wherever appreciation is higher.
Pay
Wages and salaries are recognized to be a significant but cognitively complex (Carragher, &
Buckley, 1996) and multidimensional factor in job satisfaction. Money not only helps people
attain their basic needs but also instrumental in providing upper-level need satisfaction.
Employees often see pay as reflection of how management views their contribution to the
organization. Fringe benefits as its they are not are also significant, but as influential. One reason
undoubtedly is the most employees do not realize their significant monetary value.
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Age
Age is one of the factors affecting job satisfaction. Various studies carried out in this field have
shown that job satisfaction tends to increase with age. That is older employees tends to report
higher satisfaction, and younger employees says the lowest job satisfaction rate.
Promotion
Promotional opportunities seem to have varying effects on job satisfaction. This is because
promotions take some different forms and have a variety of accompanying rewards. In recent
years, the flattening of organizations and accompanying empowerment strategies, promotion in
the traditional sense of climbing the hierarchical corporate ladder of success is no longer
available as it once was.
If an employee is given an equal number of opportunities to show their talent, take the lead and
initiate then the chances of having a higher level of job satisfaction is more. Suppose in an
organization; no employees is asked to give suggestion, nobody is bothered to inform them of
then decision. There are only a few figures who lead the team always. In such condition as an
employee wouldn’t feel satisfied with whatever job he or she is currently doing.
These days companies are taking endless measure in order to see that an employee is catered to a
different kind of facilities like health care and medical checkups. There are few institutions that
also provide insurance policies at a lower rate. Hence, the aspects of safety and security plays a
major role. If an employee didn’t feel safe and secure at the organization that he or she works in
the level of job satisfaction is ultimately going to fall.
There are also some other factors which effect job satisfaction: reward and punishment,
personality job fit, decentralization of power) this factor is closely related to the expectation of
intrinsic and extrinsic rewards, under it, a better performance gets a reward whereas the worst
performer gets punishment. Due to the expectation of reward and fear of punishment, employees
are motivated at work thereby leading to job satisfaction. People with personality types
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congruent with their chosen vocations should find they have the right talents and abilities to meet
the demands their jobs and because of this success have a greater probability of achieving high
satisfaction from their work. Decentralization is the degree to which the capacity to make
decision resides in several people as opposed to one or just a handful. When power is
decentralized, people are allowed to participate freely in the process of decision- making. This
arrangement contributes their feelings of satisfaction because it leads them to believe that they
can have some important effects on their organizations. By contract, when the power to make
decision is concentrated in the hands of just a few, employees are likely to feel powerless and
ineffective, thereby contributing their feelings of dissatisfaction.
Statement of Problem
Job dissatisfaction is when an employee does not feel content in their job. This can be due to
various professional and personal reasons such as lack of advancement, poor management,
limited work-life balance and more.
When workers are not satisfied, this can compel them to find job opportunities elsewhere. Others
may choose to stay and remain unhappy. This might be due to fear of change, lack of updated
skills, or an unwillingness to let go of certain benefits (their current pay, health care, retirement
plan etc.) employees’ response to job dissatisfaction can be broken down into four categories:
Exit: the exit response is when employees leave an organization or transfer to a different
department to get away from their unhappy situation.
Voices: Employees who fall in the voice category would speak up about their negative
experience to managements and provide recommendations on improving. This is
considered the most constructive approach to job dissatisfaction.
Loyalty: Those with respond with loyalty will not take any action. They will simply stay
at their job with the hope that change will one day be made.
Neglect: Worker who respond with neglect with neglect perform their job duties poorly
rather than actively seeking to improve their situation. They might call in sick frequently,
submit lackluster work and be unresponsive in message/ emails.
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Sources of information
Information can be gathered from two places: internal and external sources. The information
collected from internal sources is called “primary information,” while the information gathered
from outside references is called “secondary data. In secondary method we collect data by
visiting different websites and journal, books, articles and magazines.
CHAPTER II
Theoretical review
Job satisfaction is a positive feeling about a job resulting from an evaluation of its characteristics.
It is an individual’s general attitude toward his job. It can be measured. The most common
methods of measuring job satisfaction are presented as follows.
In this method, employees are asked to respond to only one question for judging their job
satisfaction. In other words, the single global rating is a response to one question, such as “All
things considered, how satisfied are you with your job?”
For example,
Highly satisfied
Satisfied
Cannot decide
Dissatisfied
Highly dissatisfied
A summation of the job factors method is the second method of measuring satisfaction. It is
more sophisticated. It identifies key elements in a job such as the nature of the work, supervision,
present pay, promotional opportunities and relationships with co-workers. Respondents
(employees) rate these on a standardized scale and researchers add the ratings to create an overall
job satisfaction score.
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There are a wide variety of instrumental available for use in measuring job satisfaction. They are
as follow:
It is the most well-known job satisfaction survey instrument. The JDI has separate scales for pay,
promotion, supervision, work and coworkers. Job descriptive index (JDI) has been used in a
large variety of organization with different levels of education and income. This survey
instrument is easy to administer. It gives only a general picture of job satisfaction
Minnesota satisfaction questionnaire has been prepared by the University of Minnesota Industry
Relation Center. The questionnaire has divided into 5 each. MSQ measures general satisfaction
by summing up the scores of responses given by the employees on a standardized scale. While
the JDI gives a broad picture of employee’s attitudes toward five major components of their jobs,
the MSQ gives a more detailed pictures of employee’s specific satisfaction and dissatisfaction.
This type of questionnaire is generally used for management employees. Its questions focus
particularly on the problems and challenges of managerial jobs. It is based on the discrepancy
model of job satisfaction. Each item has two questions; one for “should be “and one for ‘is now”.
An item in this scale is scored by subtracting the numerical values between these parts. The
greater the difference, the more dissatisfied The employee is with the aspect of the jobs. Overall
job dissatisfaction can be measure by summing the scores on all the items”.
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Others Methods
Some of other methods for measuring job satisfaction are given below
The method is bases on Herzberg two-factors theory of motivation. In this approach, employees
are asked to indent the specific incidents their jobs in which they were particularly satisfied or
dissatisfied. These incidents are further analyzed to ascertain the aspect the aspect which were
closely related to positive and negative attitudes of the employees towards incidents so
identified.
Interviews
This is also another method of measuring job satisfaction. Under these methods, employees are
interviewed personally. The responses given by them reveal their satisfaction or dissatisfaction
with their jobs.
Action Tendencies
Under this method, information is gathered about how the employees were inclined to avoid or
join certain things relating to their jobs. This reflects their job satisfaction or dissatisfaction.
Manager’s interest in job satisfaction tends to center on its effects on employee’s performance.
Much research has been done on the impact of job satisfaction on employee productivity,
absenteeism, employee turnover, accidents and organization citizenship. The following sections
examine them:
Job satisfaction, describes a positive feeling about a job, resulting from evaluation of its
characteristics. A person with a high level of job satisfaction holds positive feeling about his or
her job, while a person with a low level holds negative feelings. Productivity is the efficient
relationship between input and output. Job satisfaction influence productivity. There are two
version such as, Happy worker are not necessarily productive workers: The evidence suggests
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that productivity is likely to lead to satisfaction. At the organization level, there is renewed
support for the original satisfaction-performance relationship. amIt seems organization with
more satisfied workers as a whole are more productive organizations. Every professional gas a
unique criteria for what keeps them satisfied at work- maintaining a positive work culture for
your employees is foundational to both the retention and productivity of the te.
Absenteeism is the failure of people to attend work. Job satisfaction influences absenteeism.
There is inverse relationship between satisfaction and absenteeism. When satisfaction level is
low absenteeism tends to be high. Employees who are highly satisfied with their jobs or strongly
committed to the organization will avoid withdrawal behaviors and maintain continued attached
to work( Blau& Boal, 1987). It has been predicted that job satisfaction increased, absenteeism
decreased ( Hackett & Guion , 1985; Taunton et al. 1989; 1995)
It has been found that employees who are not satisfied with their jobs will have a high turnover. Satisfied
employees will not have a high turnover. The relationship between job satisfaction and turnover is
significant and consistent, but not particularly strong. A more complete understanding of psychology of
withdrawal decision process requires investigation beyond the replication of the satisfaction turnover
relationship.
There is an inverse relationship between satisfaction and accidents. Satisfied employees are less
likely to face accidents work place. Dissatisfied employees are likely to face accidents at the
work place.
Empirical review
Job satisfaction is an important factor in the overall success of any business. Without happy and engaged
employees, businesses will suffer from decreased productivity, higher turnover, and decreased customer
satisfaction. The effects of job satisfaction on a business can be seen in several ways. First, satisfied
employees are more productive than dissatisfied employees. Happy employees are more likely to be
productive and efficient, resulting in higher output and improved performance. Second, job satisfaction
increases employee retention. Employees who are satisfied with their job are more likely to stay longer
with the company. This results in reduced turnover and a more experienced and stable workforce. Third,
job satisfaction leads to higher customer satisfaction. Satisfied employees are more likely to provide
customers with better service and be more proactive in resolving customer issues. This can lead to
increased customer loyalty, higher customer satisfaction ratings, and more sales. Finally, job satisfaction
can lead to improved employee morale. Satisfied employees are more likely to be motivated and have a
positive outlook, leading to better collaboration and teamwork. This can result in improved performance,
higher morale, and overall better performance. In conclusion, job satisfaction is an important factor in the
success of any business. Employees who are satisfied with their jobs are more productive, have higher
retention rates, provide better customer service, and have improved morale. All these benefits lead to
higher profits and overall success for the business.
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CHAPTER III
CONCLUSION
Main findings
Lots of people use the term “job satisfaction” as nothing more than a buzzword, but it can really
important to look deeper into what it means and how important to look deeper into what it means
and how important it is. In any organization if there is less job satisfaction then people are likely
to leave the job which creates the high degree of employee turnover in an organization. Not only
that due to less job satisfaction or negative attitude of employees toward their job creates
monotony while doing work and its adversely affect the operation of organization by reducing its
efficiency. The relationship between job satisfaction and employee performance is a complex and
multifaceted one, with various scientific studies producing a range of different findings. Generally,
however, it is accepted that job satisfaction does have a positive effect on employee performance. Studies
have found that employees who are more satisfied with their jobs are more likely to be productive,
engaged, and motivated, leading to higher quality work. Higher job satisfaction also has a positive
correlation with greater creativity and innovation, with employees from more satisfied workplaces being
more likely to produce creative solutions. Other studies have also found that job satisfaction can have an
effect on employee retention, with highly satisfied employees being more likely to stay in their roles for
longer. This can lead to increased efficiency within the workplace, as employees are more likely to
become more familiar with their roles and contribute more to the overall success of the organization.
Finally, research has suggested that job satisfaction can have a positive impact on employee health and
general well-being. This can lead to improved moods, reduced stress levels, and better overall mental
health. Improved health can, in turn, lead to improved performance at work, as employees have more
energy to contribute to their roles.
If you’ve ever heard anyone complain about their job, it might be because they are lacking job
satisfaction. There is, of course, a difference between having a bad day and lacking satisfaction
in your job as a whole, but if you have a constant dislike for your job, you might need to find a
role with higher job satisfaction.
If the employee is happy and have high job satisfaction, they are more likely to work well in
their job and stay longer with a company. In fact, business units where employees score in top
half for employee engagement have a 50% higher success rate on productivity outcomes, on
average. The broad range of jobs listed shows how personal job satisfaction is- while one person
might be most satisfied sitting in an office writing code for an advanced PC program, another
might find satisfaction in helping build the infrastructure that we use on a day-to-day basis. It can
be hard to figure out how to achieve job satisfaction or how to help inspire job satisfaction in
those around you, but the rewards in happiness and productivity make it worthwhile. Employees
who feel satisfied with their jobs tend to be more productive and have higher morale. Job
satisfaction can be measured in a variety of ways, including employee surveys and self-report
questionnaires. Job satisfaction can be influenced by a variety of factors, such as salary and
compensation, job security, workplace environment, working conditions, job responsibilities, job
flexibility and autonomy, and work-life balance. When employees are satisfied with their jobs,
they are more likely to be motivated and engaged in their work. They will be more productive,
which can lead to improved performance, efficiency, and quality of work. Employees who are
satisfied with their jobs are also more likely to stay in their jobs, which can save significant costs
in recruitment and training. Employees who are satisfied with their jobs will also be more likely
to build strong relationships with their colleagues and supervisors. A positive work environment
can lead to increased collaboration and better communication, which can lead to improved job
performance. Finally, job satisfaction is also linked to better physical and mental health.
Employees who are satisfied with their jobs tend to have lower levels of stress and depression, as
well as better physical health. They are also more likely to have higher self-esteem and more
positive attitudes
Conclusion
Job satisfaction influences a firm’s bottom line understanding factors contributing to contributing
to job satisfaction improves firm performance. Studies conducted in developed market
economies and formerly socialist economies show that the majority of worker report themselves
satisfied with their job. Many factors contributing to job satisfaction are the same across
countries, and quite surprisingly don not hinge solely on pay or hours of work. Numerous job
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REFERENCES
Arnold and fieldman (1986) what is job satisfaction
Carraher and Buckley (1996) Wage and salaries are recognized to be a significant but cognitively
complex
Mobley, W.H (1997) intermediate linkage in the relationship between job satisfaction and
employee turnover
( Hackett & Guion, 1985; Tauton et.al 1989; 1995 ) predicated that job satisfaction increased
absenteeism decreased
: Wahba, M., & Bridger, D. (2000). Job satisfaction: Nature and Implications.
In J.C. Quick & L.E. Tetrick (Eds.), Handbook of Occupational Health and Well-
being (pp. 391-414). San Francisco, CA: Jossey-Bass. Tims, M., Bakker, A.B.,
& Derks, D. (2012). Development and Validation of the Job Crafting Scale.
Journal of Vocational Behavior, 80(3), 632-646.