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The Job Satisfaction - Employee Performance Relationship: A Theoretical Perspective
The Job Satisfaction - Employee Performance Relationship: A Theoretical Perspective
Abstract
Organisations face strong pressures in competitive environments to be efficient and at the same
time produce products of value. By ensuring that their workforce is optimal at all times most
organisations can gain competitive advantage. Satisfied employees form a bond with the
company and take pride in their organisational membership, they believe in the goals and values
of the organisation. Therefore, these employees display high levels of performance and
productivity. Dissatisfied employees display characteristics of low productivity, absenteeism,
and turnover. These traits are highly costly for the organisation. Therefore, it is crucial that
research is done to determine the relationship between job satisfaction and employee
performance.
Keywords: Job satisfaction, employee performance, productivity, motivation.
1. INTRODUCTION
Rue and Byars (1992) refer to job satisfaction as an individuals mental state about their job. Job
satisfaction refers to how content an individual is in his/her current position. Job satisfaction is a
very important attribute which is frequently measured by organisations in order to ensure that
their workforce is optimal. Employee performance can be defined as the productivity and quality
of work of an individual employee. Studies have revealed that job satisfaction enhances
employee performance.
Employees are changing; they no longer stay in jobs that do not motivate or satisfy them. Fair
salaries are no longer strong enough incentives to keep them loyal. In contemporary times,
organisations must do more to ensure that they retain talent.
Research has suggested that understanding job satisfaction, as a management philosophy is
essential to managing an organisation and improving its overall performance (Putman, 2002: 1).
The components of job satisfaction include employees thoughts, feelings, interactions and
performance (Zain, Ishak and Ghani. 2009: 1). Understanding these components and its
correlation to job performance can assist South African organisations to evaluate their current
practices in terms of employees (Buchanan, 2006).
According to Glenn Bassett (2004), Since the Hawthorne studies of the 1920s and 1930s, the
working hypothesis of the human relations movement in management has consistently proposed
that the satisfied worker is a productive worker. In the last few decades, thousands of scholarly
studies have used worker satisfaction as a central research variable. But this flood of research has
offered little support to the proposition that a satisfied worker is a greater producer. The original
Hawthorne studies have themselves been subject to radical criticism in that span of time.
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Research is now moving to the opposite direction, researchers now believe that employee
performance influences job satisfaction (Bassett, 2004: 1).
Many factors affect employees job satisfaction. Bashayreh (2009) divides the factors into the
intrinsic satisfactory factors related to work and the extrinsic satisfactory factors not directly
related to work it-self. Researchers consider that personal attributes and environment play major
role in influencing job satisfaction (Bashayreh, 2009: 7).
As mentioned, satisfied employees are more likely to work harder and provide better services via
organisational citizenship behaviours. Employees who are satisfied with their jobs tend to be
more involved in their employing organisations, and more dedicated to delivering services with a
high level of quality. Previous research has also suggested that loyal employees are more eager
to and more capable of delivering a higher level of service quality. Researchers have argued that
service quality is influenced by job satisfaction of employees. The argument that employee
satisfaction improves service quality is grounded on the theory of equity in social exchanges
(Zafirovski, 2005: 1-2).
Although there are different views on social exchange theory, theorists agree that social
exchange involves a series of interactions to generate obligations that are unspecified. These
interactions are usually seen as independent of the actions of another person. The underlying
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An individual accorded some manner of social gift that is inequitably in excess of what is
anticipated will experience gratitude and feel an obligation to reciprocate the benefactor. Such
positive reciprocal relationships evolve over time into trusting, loyal, and mutual commitments.
In the context of social exchange theory, when an employer offers favourable working conditions
that make its service employees satisfied, the latter will in return tend to be committed to making
an extra effort to the organisation as a means of reciprocity for their employer, leading to a
higher level of service quality. Based on the theory of equity in social exchanges, we posit that
employee satisfaction leads to higher service quality (Zafirovski, 2005).
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factors or that there is no relationship at all, however, neither of these models have much
research.
Although this is the case, in recent studies, correlations between the two variables have been
found. There are also stronger relationships between the variables depending on specific
circumstances, such as mood and employee level within the company. Skibba (2002) states that
job performance and job satisfaction relationship follows the social exchange theory; employees
performance is giving back to the organization from which they get their satisfaction (Skibba,
2002: 2). According to Skibba (2002) there are seven different models that can be used to
describe the job satisfaction and job performance relationship.
Some of these models view the relationship between job satisfaction and job performance to be
unidirectional, that either job satisfaction causes job performance or vice versa. Another model
states that the relationship is a reciprocal one; this has been supported by the research (Skibba,
2002: 2). The final model is Alternative Conceptualizations of Job Satisfaction and/or Job
Performance. This model discusses how positive attitudes toward ones job can predict a high
degree of job performance. Industrial psychologists do not justify any relationship between job
satisfaction and job performance; although it has been found that a positive mood is related to
higher levels of job performance and job satisfaction (Skibba, 2002).
These models are valuable to the study as it explores the alternative views on the subject. If one
looks at the social exchange theory mentioned earlier and compare it with these models, they
seem very similar. It all boils down to the fact that a reciprocal relationship at work between
employer and employee can only lead to a mutual beneficial relationship for both parties.
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cheap is unlikely to be desirable in the job market, because potential employees will think it
does not reward effort. Such an organisation is likely to end up with the people that nobody else
wants. Rewards are also intended to maintain and improve performance.
According to Anonymous 1(2008) nobody can truly motivate: employee motivation can only
come from within. But the promise of a bonus or a pay rise is intended to encourage employees
to motivate themselves to reap the rewards. Performance-related pay is very popular in todays
organisations. In Canada, over 70 per cent of companies offer it in some form. Some companies
have three different kinds of performance-related pay: individual, team, and organisation. The
main problem with individual performance-related pay (IPRP) is that it assumes that pay alone
satisfies workers, but this is not correct.
Consider the intrinsic rewards or psychological rewards mentioned earlier. A worker with high
pay but who receives no intrinsic rewards will probably go elsewhere. The reward system also
serves to maintain and strengthen the psychological contract. It indicates what behaviour the
organisation values, i.e. what is paid for. For example, if your company values teamwork, then
there will probably be a team bonus of some kind. The psychological contract will partly
determine what employees perceive to be fair in terms of reward for the work they do.
Disruptive behaviour such as theft in the workplace is often an attempt to restore fairness to
remuneration. Violation of the psychological contract is far more likely to cause problems with
employees more than any other single factor (Anonymous 1, 2008).
6. EMPLOYEE PERFORMANCE
According to Yee et al (2007), research on employee attributes and performance has traditionally
resided in the domain of organizational psychology, not operational management. However,
as operations managers are increasingly involved in service management, they find employee
attributes potentially a vital factor for operational efficiency. On the other hand, the relationship
between employee attributes and performance has long been of interest to behaviour researchers.
In spite of decades of research, the findings have remained elusive. Most researchers believe that
employee satisfaction has little direct influence on business performance in most instances.
Although much research has been successfully conducted to correlate employee satisfaction with
individual work behaviours such as turnover, absenteeism, lateness, drug use, and sabotage, the
relationship between employee satisfaction and operational performance is less explicit as little
rigorous empirical research has been conducted. Although much research in operational
management has been conducted to investigate the relationships between quality, customer
satisfaction and business performance, research on the impact of employee satisfaction on
operational performance is relatively scarce.
In the last few decades, the importance of human resources to operational performance has been
noted by a few researchers. This is a strange concept as organisational knowledge residing in
employees is the primary determinant of superior service quality, influencing market
performance. A dedicated workforce may serve as a valuable, scarce, non-imitable resource to
enhance profitability from a strategic perspective (Yee et al, 2007: 4-7).
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This study had an important impact on researchers, and in some cases, on organizations, with
some managers and HR practitioners concluding that the relationship between job satisfaction
and performance was trivial. However, further research does not agree with this conclusion. The
failure to find a strong relationship between job satisfaction and performance is due to the
narrow means often used to define job performance. According to Saari and Judge (2004: 397 )
when performance is defined to include important behaviours not generally reflected in
performance appraisals, such as organisational citizenship behaviours, its relationship with job
satisfaction improves.
Research tends to support this proposition in that job satisfaction correlates with organizational
citizenship behaviours. In addition, in a more recent and comprehensive review of 301 studies,
according to Saari and Judge (2004), found that when the correlations are appropriately corrected
(for sampling and measurement errors); the average correlation between job satisfaction and job
performance is as higher at .30. In addition, the relationship between job satisfaction and
performance was found to be even higher for complex (e.g., professional) jobs than for less
complex jobs.
Thus, contrary to earlier reviews, it does appear that job satisfaction is, in fact, predictive of
performance, and the relationship is even stronger for professional jobs (Saari and Judge, 2004).
According to Anonymous2 (2006), happy workers may not necessarily be productive workers,
because at the individual level, the evidence suggests the reverse to be more accurate, that
productivity is likely to lead to satisfaction. If one moves from the individual level to that of the
organisation, there is renewed support for the original satisfaction performance relationship.
When satisfaction and productivity data are gathered for the organisation as a whole, rather than
at the individual level, it is found that the organisations with more satisfied employees tend to be
more effective than organisations with fewer satisfied employees. Studies have focused on
individuals rather than on the organisation and at individual level measures of productivity do
not take into consideration all the interactions and complexities in the work process.
Although it might not be true to say that a happy worker is more productive, it might be true that
happy organisations are more productive. Research bears witness to the fact that satisfied
workers are less likely to face accidents as compared to dissatisfied ones(Anonymous 2, 2006:
1).It was concluded that accidents are closely linked to job satisfaction of workers and
organisations with a low accident toll are likely to have a satisfied workforce (Anonymous2,
2006).
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According to Anonymous2 (2006:1), other studies reveal that highly satisfied workers have a
higher efficiency rating as well. Being well adjusted on the job, the satisfied worker is sure to
perform better. In other words, a worker with better job satisfaction tends to be better adjusted on
the job, in his home and in social and emotional areas. On the other hand, discontentment with
working life is likely to affect the workers job adjustment and also in social, emotional and
domestic life. Results of a study showed that the rate of absenteeism increased down the ladder
of hierarchy, with managers having the lowest absence rate, technical workers having the highest
absence rate and supervisors occupying the intermediate position (Anonymous 2, 2006: 1).
Managers were the most satisfied employees with their jobs, followed by the supervisors, and
technical staff. Absenteeism was positively correlated to job satisfaction and to the feeling of
insecurity. Also, absenteeism was negatively correlated with achievement motivation. A
satisfied worker has a positive attitude towards his work and will try to avoid being absent from
work. This does not mean that workers who are highly satisfied with their jobs would almost
never be absent. However, absenteeism would be less among those who are satisfied than those
who are dissatisfied with their jobs (Anonymous2, 2006).
According to the literature identified above, the topic of job satisfaction versus employee
performance is a controversial matter, research on both sides of the argument state different
outcomes. Some research suggests that there is indeed a positive correlation between the two
variables, whilst, other research begs to differ (Saari and Judge, 2004: 395).
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9. CONCLUSION
By looking at the information presented in this article, it is evident that there must be a
correlation between job satisfaction and employee performance. When one reviews the identified
literature, only one conclusion can be obtained, that job satisfaction has an undeniable influence
on employee performance.
This article offers many different outlooks on the subject; some theorists believe that there is no
correlation between the two variables while others disagree. The literature also identifies that
both psychological and physical rewards play a role in job satisfaction. Organisations must
motivate their employees and guarantee job satisfaction as this satisfaction is necessary to
employees realising their worth and potential; this realisation subsequently will have a
significant, positive impact on the efficiency and effectiveness of workers and thus, the
productivity of the organisation.
Organisations need to conduct research in order to remain current on issues such as job
satisfaction. It is research like this that will give them the information they desire in order to
improve their companies.The usefulness of understanding the relationship between satisfaction
and performance is underplayed because of its past popularity, however organisations would do
well if they themselves investigate this significant relationship, as this research will have far-
reaching consequences not only for the organisation but for the academic community as well.
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