Job Redesign and Job Satisfaction - Final - Thahea Lima

Project Report
on
The Interaction Effect of Job Redesign and Job Satisfaction on Employee
Performance: An Empirical Study
Course Code: PRJ-599

Course Title: Project Work
Submitted To
Department of Business Administration
North East University Bangladesh
Supervised By
Md. Mizanur Rahman
Assistant Professor
Prepared By
Thaheatul Zannat Lima
ID: 190101010827
Major in Human Resource Management
MBA Program

Date of Submission: 20 February 2020

Project Report
on
The Interaction Effect of Job Redesign and Job Satisfaction on Employee Performance:
An Empirical Study
Course Code: PRJ-599

Course Title: Project Work
Submitted To
Supervised By
Md. Mizanur Rahman
Assistant Professor
Prepared By
ID: 190101010827
MBA Program

(This project has been prepared for submitting to the Department of Business Administration,
North East University Bangladesh, as a partial requirement for fulfillment of the Master of
Business Administration program.
ii
LETTER OF TRANSMITTAL
Date: 20 February 2020
To,
Md. Mizanur Rahman
Assistant Professor
North East University Bangladesh.
Subject: Submission of Project Report.
Dear Sir,
I have the pleasure to submit my project report on “The Interaction Effect of Job Redesign
and Job Satisfaction on Employee Performance: An Empirical Study”. I have given enough
concentration to the successful completion of project report. It was my great opportunity to
get a chance work on this challenging project and to complete the report in time. I am grateful
for your guidelines and lessons.
I tried to put my best effort for the preparation of this project report. Yet if any shortcomings
or flaws arise, it will be my pleasure to answer any clarification and suggestion regarding this
project report.
Thanking You.
Sincerely,
………………………..
ID: 190101010827
MBA Program
iii
LETTER OF DECLARATION
I declare that this project report has been composed solely by myself and that it has not been
submitted, in whole or in part, in any previous application for a degree. Except where states
otherwise by reference or acknowledgment, the work presented is entirely my own. I am
aware of and understand the university’s policy on plagiarism and I certify that this report is
my own work, and it has not been submitted in support of another degree or qualification
from this or any other university or institute of learning.
………………………..
ID: 190101010827
MBA Program
iv
LETTER OF CERTIFICATE
I am glad to certify that Thaheatul Zannat Lima (ID: 190101010827) has successfully
completed the tasks of Project Report (PRJ-599). I have supervised her project report
thoroughly and I perceive that she has paid satisfactory level of efforts to complete the study.
She has declared that the produced report is original and has not been submitted elsewhere
previously for any degree. This project report is recommended for final submission and
further assessment.
I wish her success throughout the life.
………………………
Md. Mizanur Rahman
Assistant Professor
v
ACKNOWLEDGEMENT
At the very outset, I am grateful to almighty Allah for giving me strength and ability to
accomplish the project report in a scheduled time despite various difficulties. It gives me
immense pleasure to express my thanks to supervisor Md. Mizanur Rahman, Assistant
Professor, Department of Business Administration, North East University Bangladesh. His
guidance and feedback made things a lot easier. He kept me on track to complete this report
with his suggestions that were crucial in making this report as flawless as possible.
vi
ABSTRACT
The purpose of this paper is to examine the effect of job redesign as well as that of the
interaction effect of job redesign and job satisfaction on employee performance. When
employees feel dissatisfied with the nature of job they do, their level of commitment could be
deliberately reduced and since employees are the engine room of an organization, their
dissatisfaction with the nature of job they do could also pose a threat to the overall
performance of the organization. Job satisfaction represents one of the most complex areas
facing today’s managers when it comes to managing their employees. Unfortunately, in our
region, job satisfaction has not still received the proper attention from neither scholars nor
managers of various business organizations. In this case, the need for ensuring employee job
redesign and employee satisfaction becomes a matter of necessity to every organization.
Employee attitudes are important to management because they determine the behavior of
workers in the organization. Whenever a job is changed, a manager has a chance to increase
both the quality of the employees’ work life and their on-the-job productivity. A well-
designed job brings involvement and satisfaction to the employees and they perform well by
employing all their energies in the work. A well-designed job, according to psychological
perception and attitude of employees, motivate workers towards task performance, and such
employees become highly productive and loyal to the organization. A conceptual framework
has been proposed to show the construct of job design by job rotation, job enrichment and job
enlargement and relationship of job design with employee performance. Employees will be
more satisfied if they get what they expected, job satisfaction relates to feelings of workers.
Hence, this study is focused to consolidate the theoretical concept about job satisfaction and
job redesign on employee performance.
Keywords: Job Satisfaction, Job Redesign, Employee Performance, Banking, Hotel and
Resort, Bangladesh.
vii
TABLE OF CONTENT
Topic
Page
Cover Page
Letter of Transmittal
Letter of Declaration
Letter of Certificate
Acknowledgment
Abstract
Chapter One
Overview of the Study
Si. Topics Page

No.
1.1 Background of the Study
1.2 Problem Statements
1.3 Objectives of the Study
1.4 Research Methodology
1.4.1 Measures
1.4.2 Sample
1.5 Limitations of the Study
Chapter Two
Review of the Literature
2.1 Job Redesign and Employee Performance

2.2 Job Satisfaction and Employee Performance
2.3 Job Redesign and Job Satisfaction on Employee Performance
2.5 Model of Job Satisfaction
2.7 Factors Determining Job Satisfaction
2.8 The Relationship between Job Satisfaction and Employee Performance
Chapter Three
Job Redesign and Job Satisfaction on Employee Performance
viii
3.1 Job Redesign
3.2 Job Redesign Process
3.3 Types of Job Redesign
3.4 Advantages of Job Redesign
3.5 Abraham Maslow’s Need Hierarchy Theory
3.6 Frederick Herzberg Two Factor Theory
3.7 Douglas McGregor Theory X and Theory Y
Chapter Four
Data Analysis and Findings
4.1 Data Analysis

4.1.2 Profiles of Sample Respondents
4.1.3 On JC and Job Satisfaction
4.1.4 Regression Results
4.2 Findings of the Study
Chapter Five
Recommendations and Conclusion
5.1 Recommendations
5.2 Conclusion
Reference
Appendix I
ix
CHAPTER ONE
OVERVIEW OF THE STUDY
1.1 Background of the Study
Job redesign has been used as one of the HR strategies to develop a new dynamic and
productive life in a rapidly changing business environment. It has been well-established that
well-designed job characteristics (JC) will enhance employee motivation and hence their
performance improvement (Hackman and Oldham, 1976). As employees are organizational
assets that are renewable, they become a key driver for change, especially in a rapidly
changing environment. Firms need to continuously redesign jobs to align with their business
strategy and enhance organizational performance. To date, several studies have examined the
direct link between job redesign and performance and job satisfaction and performance.
Many empirical studies support the Hackman-Oldham theory of job design with respect to
the significant relationship with product quality improvement (Michalos et al., 2013).
The empirical studies on the relationship of these aspects of job design with employee
performance, work outcomes, and/or productivity have been reported previously. This
relationship is important for HR managers due to benefits which are expected to increase
effective employee performance. As job redesign includes activities or work-related changes
that improve work quality of employees or employee productivity, it is expected that job
redesign has a significant influence on employee performance improvement. We aim to
investigate the effect of job redesign on employee performance. During the past decade, the
volume of Mergers and Acquisitions (M&A) in resorts has increased (IMAA, 2013). It is thus
conceivable that M&A can be utilized as trends metrics in support of a popular firm strategy
to strengthen businesses in a turbulent environment. In this process, job redesign has been
used to ensure the efficiency and productivity of employees. This development has become
particularly visible in business organizations, particularly those in-service sectors, such as
banking and finance, insurance, hotels, telecommunications, etc. Akaraborworn and McLean
(2002) study the role and impact of human resource development during the country’s 1997
economic crisis.
The results confirm that human resource development could support employees in job design
processes. Job redesign is utilized to encourage employees to perform activities in an efficient
and effective manner. Holman et al. (2010) find that job redesign plays an intervention role as
1
a mediator to improve employee well-being. Consequently, job redesign tends to be an
effective HR strategy for solving performance problems and reducing costs that are
significant to organizations. This current study investigates whether job redesign and job
satisfaction impact on employee performance. The analysis also explores whether job
redesign and job satisfaction jointly display an interaction effect on employee performance.
1.2 Problem Statements

Even though job redesign is a well-known operational strategy that has been embraced by
numerous organizations, there is little information on its effect on the performance of
employees (Siruri & Muathe, 2014). Mensa-Bonsu (2012) used a comparative evaluation on
the use of job design to build employee motivation mechanism as a way of improving
employee performance within an organization. The study found an association between the
employee performance and the success of continued capacity development. Marwa and
Muathe (2014), carried out an evaluation of job design for socio-technical systems. They
found that, job design was a factor of socio-technical systems which form central
determinants of employee performance.
Employee satisfaction is increasing in importance, as the competition for talent is high and
still growing. It is not hard for a competitor to compete with individual elements of
employment such as salaries and benefits. The effect of voluntary turnover includes loss of
performance, knowledge, expertise, relationship, and loss of the time and resources that it
took to train the employee. Increasing numbers of corporate mergers and acquisitions have
left employees feeling detached from the companies that they served and haunted by
concerns of overall job security. This has led the employees to focus more on job hunting
rather than performance thereby hurting the general performance of the company.
1.3 Objectives of the Study

The primary purpose of the study is to measure the interaction effect of job redesign and job
satisfaction on employee performance. The secondary objective of the study are as follows:
i. To examine the effect of job satisfaction and job redesign on employee

performance in private sector.
ii. To examine the relationship between job satisfaction and job redesign on
employee performance.
1.4 Research Methodology
2
A quantitative sample was designed to answer the research questions. A large-scale
questionnaire survey was conducted to the hotel and the banking industry in Bangladesh.
The study relied on survey design as it deemed more appropriate compared with other design
of research to achieve of the study. The population of the study covered all the employees of
resorts and hotels. However, the author distributed questionnaires for each and every
employee who are working in restaurants and banking industry. The sample size of the study
were 50 participants based on convenience sampling.
1.4.1 Measures
We formulated our conceptual model, exhibiting the causal relationship among the three
main constructs: job redesign (R), job satisfaction (S), and employee performance (EP). We
developed our research instrument for data collection by using the results from in-depth
interviews to modify, to some extent, the Job Diagnostic Survey (JDS) instrument developed
by Hackman and Oldham (1974). Hackman and Oldham (1974) developed the JCM asserting
that the perception of task environment influences employee response. Key JC could be used
to describe the motivating potential of a job redesign. Many studies have investigated the
effect of JC on employee motivation and performance using the JDS (Boonzaaier et al., 2001;
Rhoads et al., 2002; Rathi and Barath, 2013).
We commenced the analysis with a qualitative method to verify and improve draft
questionnaire items. The semi-structured interview protocol with open-ended questions is
developed to collect data as the basic information of the sample organizations from both
managerial and operational levels. First, we tested the interview protocol by interviewing
nine interviewees from different hierarchies. After adjusting the protocol, we conducted an
additional 18 interviews. We used the result of the interviews to further improve our draft
questionnaire which was developed based on our literature review. The content validity of the
questionnaire was validated with Item Objective Congruence Index (Rovinelli and
Hambleton, 1977).
Then, the pilot study was conducted in order to pre-test the research plan, method; and to pre-
test the research instrument in which the key questions may be modified for the subsequent
large-scale survey. Experienced practitioners were selected to participate in the pilot study
(expert opinion survey) based on the following criteria: first, being a HR-manager (mid-level
manager) with five or more years of work experience; and second, being with the current
company at least five years. The pilot study results were then used to finalize the instrument
3
for quantitative operationalization. We pre-tested the questionnaire with 36 sample
respondents in the sample resorts. According to Nunnally (1978), Cronbach’s α should be
greater than 0.70. The Cronbach’s α reliability of the three main constructs yielded the
following: 0.8698 for job redesign (R), 0.8774 for job satisfaction (S), and 0.8257 for
employee performance (EP). The questions were developed with 101 items in six sections. In
addition, we measured the symmetry of data using skewness and kurtosis. The pilot study’s
results further improved the actual field survey. We retained all items of the research
instrument used in the pilot test since the items displayed high reliability.
The questionnaire was developed to capture employee performance. Since our data set is
cross-sectional, we have taken into account the issue of common method bias (CMB). CMB
potentially inflates correlations among constructs of interest since they are collected with the
same method and at the same point in time (Meade et al., 2007). CMB is pervasive and can
be a major internal validity issue in social science research (Sharma et al., 2009). There are
several prevalent techniques for controlling and detecting CMB including Harman’s single
factor test (Podsakoff et al., 2003) and confirmatory factor analysis (CFA) marker technique
(Lindell and Whitney, 2001). Podsakoff et al. (2003) suggest that CFA tends to be the most
rigorous approach. We applied Harman’s single factor test and CFA in this study.
A basic assumption of Harman’s single factor test is described as either: “[…] (1) a single
factor will emerge from the factor analysis; or (2) one general factor will account for the
majority of the covariance among the measures” (Podsakoff et al., 2003, p. 889).
Furthermore, “if a single factor is obtained or if one factor accounts for a majority of the
covariance in the independent and criterion variables, then the threat of common method bias
is high” (Devaraj et al., 2002, p. 323). On the entire sample (n 295; 82 survey items), we
tested the responses by using Harman’s single factor test. One single factor accounted for
28.196 per cent of the variance, suggesting that CMB is not a problem in this study.
We used a seven-point Likert scale questionnaire. We measured job redesign with 25
questions adopted from the JDS; job satisfaction with 14 questions based on Herzberg’s two-
factor theory and employee performance with three questions (see, Table AI). For job
satisfaction, we used CFA to confirm the construct (see, Table AII). Regression analyses
were used to test our hypotheses.
1.4.2 Sample
4
There are 231 hotels and resorts that are listed companies in the Sylhet Hotels Association
Directory in 2018. We directly sent our questionnaires to all of them. The rationale for the
selection of middle-level managers as survey participants included: first, several
organizations in Bangladesh experienced business process engineering due to the advent of
information technology in the last few decades and middle-level managers experienced the
job redesign process themselves as well as overseeing the job redesign process among other
employees under their supervision; second, a middle-level manager is the intermediate
manager accountable to a higher level superior while directly managing employees at the
operational level. Hence, middle-level managers are employees who are expected to
understand those in both, higher and lower level positions; and third, middle-level managers
are professionals who are aware that their self-report will be beneficial for organization
improvement and they are responsible for their unit’s performance. Their self-report reflected
in the completed questionnaire can thus be reliable to a certain extent.
1.5 Limitations of the Study

We recognize several limitations in our study. The conduct of research in Bangladesh and of
course, indeed, all developing countries is imbued with a lot of problems. However, in this
research, the following problems are anticipated.
 The analysis of cross-sectional data limits causality claims to mere inferences rather
than scientific proof.
 Due to time and budget constraints, we were unable to cover broader contexts or
extend our analysis to alternate sectors in the service (and non-service) industries.
 Delays in filling and returning the questionnaires by respondents.
 This implies limitations in determining causality, as data was collected at single point
in time. Another limitation concerns the generalizability of the findings.
5
CHAPTER TWO
REVIEW OF THE LITERATURE
2.1 Job Redesign and Employee Performance

Job performance can be described as a behavior or action by employees at the individual
level (Campbell, 1990). Judge et al. (2001) argue that job performance is an important
outcome of core self-evaluation (CSE). Individuals with high-CSE scores are more motivated
to perform in their jobs. They will perform the job better by increasing in confidence and
abilities. Their model asserts that CSE is positively related to both job satisfaction and
individual performance. Several studies espouse the individual performance concept and have
confirmed employee performance relationship with various variables. Lentz and Allen (2009)
find that a career plateau is significantly related to a reduction in job performance. Morrow et
al. (2012) assert that job redesign influences employee attitude, behavior, and organizational
commitment. Past research also investigated employee performance in relation to
organizational outcomes such as productivity, firm growth, and firm performance (e.g. Ubeda
et al., 2013; Sadikoglu and Zehir, 2010).
In organizations, job design is one of the effective ways to increase the performance of
employees. Job design can solve problems such as those related to skills, work overload,
repetitiveness, and increase in working hours (Allwood and Lee, 2004). Internally, when
organizations experience changes due to market competition or expansion of the firm’s
business operations, job redesign has a focus on administrative changes that improve working
conditions with work design. For example, job redesign is needed when business process re-
engineering is implemented (e.g. the introduction of information technology) to enhance the
effectiveness of customer service. Well-designed jobs also lead to increased employee well-
being (Strümpfer, 2006). Job redesign is thus an alternative approach to reduce job
dissatisfaction and enhance the motivational potential of a job. Maxwell (2008) asserts that
job design motivation and teamwork are positively related to productivity. Job design is also
found to be a strategy to enhance employees’ work environment. Mohr and Zoghi (2008)
suggest a relationship between job satisfaction and high-involvement work practices. Their
findings show that employee satisfaction can increase participation in high- involvement
practices. In addition, job satisfaction is positively associated with work design involvement
that requires high problem-solving skill levels for job rotation plans. Job enrichment is one
such job design technique that contributes to a more interesting, challenging and satisfying
6
job. De Menezes (2012) studies the relationship between job enrichment and job satisfaction
and ascertains the positive relationship between the two variables. Rhoads et al. (2002)
explore the correlation between JC and job satisfaction. Control, variety, feedback, and
autonomy are JC that are found to be positively related to job satisfaction.
Thus, work design has an influence on productivity and is essential in providing a
challenging and satisfying opportunity in organizations.
In the Asian context, Ali and Zia-ur-Rehman (2014) find that job design can improve
employee performance. The job characteristics model (JCM) has been applied to investigate
the impact of job design and employee performance in the fast-moving consumer goods
sector in Pakistan. Findings assert a significant and positive relationship between job design
and employee performance. Al-Homayan et al. (2013) study the impact of job performance
level on a sample of 632 nurses in public sector hospitals in Saudi Arabia. The study
examines the direct relationship between job performance and job resources (i.e. skill variety,
task significance, task identity, feedback, and job security). The results suggest direct
significant relationships between a nurse’s job performance and job resources. Job resources
also increase the level of nurses’ job performance. In addition, Al-Ahmadi (2009) finds that
job design significantly and positively contributes to employee performance.
Therefore, based on the above literature review, the following hypothesis is formulated:
H1. Job redesign is positively related to employee performance.

Job satisfaction can be defined as a measurement of one’s job or experiences in terms of
positive emotion or enjoyment in the job (Locke, 1976) and of people’s feelings (like or
dislike) in the job (Spector, 1997). These definitions refer to individual emotions that tend to
lead to being more productive, creative, and committed to a job. Employee satisfaction also
refers to job satisfaction that can relate to work itself.
Employee satisfaction is an important source of employee motivation. Herzberg (1968)
asserts that hygiene factors and motivator factors influence employee motivation. Motivator
factors are related to job satisfaction and hygiene factors are related to job dissatisfaction
levels. There are several studies that investigate employee satisfaction and performance.
Falkenburg and Schyns (2007) support the assertion that job satisfaction positively affects
organizational commitment and hence performance. Judge et al. (2001) confirmed that job
7
satisfaction is related to job performance. Antoncic and Antoncic (2011) explain that
employee satisfaction has a positive influence on four dimensions of work (general
satisfaction with work; employee relationships; remuneration, benefits and organizational
culture; and employee loyalty). Hence, this impact has a positive influence on firm growth.
Perera et al. (2014) use structural equation modelling to analyse the relationship between job
satisfaction and job performance in the apparel sector of Sri Lanka. The findings assert that
job satisfaction has a significant positive effect on job performance.
In addition, key JC can be used to describe the motivating potential of a job redesign. The
JCM is widely used as a conceptual framework and instrument for employee motivation
enhancement. For instance, Rhoads et al. (2002) found that there is a positive correlation
between JC (control, variety, feedback, and autonomy) and job satisfaction. A high level of
these JC tends to increase job satisfaction and performance. The majority of the managers in
their study lacked variety and autonomy on the job, felt dissatisfaction and lack of
commitment to their job. Unsurprisingly, a high-turnover intention was also observed. De
Menezes (2012) finds that job enrichment is positively related to job satisfaction. Hadi and
Adil (2010) ascertain the work motivation and job satisfaction of bank managers in Pakistan.
Using multiple regression analyses, their findings reveal that overall JC display a significant
and positive correlation with intrinsic motivation. Skill variety, task significance, and task
identity are significantly and positively related to job satisfaction. Task identity and work
feedback have significant and positive correlations with extrinsic motivation. Bhatti et al.
(2012) study job satisfaction and motivation in the banking industry in Pakistan. Their results
reveal that JC have a positive and significant effect on employee job satisfaction, internal
work motivation, and growth satisfaction. Netemeyer and Maxham (2010) investigated the
relationship among job satisfaction, job performance, and customer contact. Results reveal a
positive relationship between job satisfaction and job performance. Most of the studies
reviewed above found a positive relationship between job satisfaction and improved
employee performance. We hypothesize that:
H2. Job satisfaction is positively related to employee performance.
8
The above observations notwithstanding, to date there has not been a study that
simultaneously examines the relationship between the job redesign-job satisfaction
interaction and employee performance, although the relevant literature suggests a moderation
effect might be possible in this context. Humphrey et al. (2007) examine work design theory
using a meta-analytic review method based on a total of 259 studies. Their findings reveal a
strong and positive relationship between JC (autonomy, skill variety, task identity, task
significance, and feedback) and job satisfaction, growth satisfaction, internal work
motivation, and job performance. Truxillo et al. (2012) discuss the possible joint effects of
age and JC on job satisfaction and performance. Based on a relevant literature review, they
developed a series of propositions, related to JCM and job satisfaction and performance. The
propositions stipulate that “autonomy, task variety, task significance, and feedback from the
job will relate more positively to the satisfaction, engagement, and performance of older
workers” (Truxillo et al., 2012,
p. 8). Wood et al. (2012) test job enrichment content, but their results suggest that enrichment
does not display a strongly significant effect on productivity. Job design is associated with
quality and job satisfaction. However, high-job satisfaction is strongly related with higher
employee productivity and better quality. Parker (2014) reviews research on motivation and
argues that job design can improve employee learning, maintenance, and development for
outcomes, such as productivity and quality. Furthermore, Holman et al. (2010) study the
mediating role of JC in job redesign as an intervention in health insurance and health care in
the UK. Their multilevel regression results suggest that “job redesign intervention increases
job resources (job control, participation in decision-making, feedback and skill utilization),
and job redesign intervention will allow employees an increase in well-being” (Holman et al.,
2010, p. 98). We deduce that this is likely to enhance employee performance. They also
found a significant interaction effect between time of measurement and experimental group.
Job redesign is a significant mediator between job control and well-being. Since none of the
existing studies investigated the interaction effect of job redesign and job satisfaction on
employee performance, the following hypothesis is formulated:
H3. Job redesign and job satisfaction is jointly positively related to employee
performance.
9
Job satisfaction can be defined as a measurement of one’s job or experiences in terms of
positive emotion or enjoyment in the job (Locke, 1976) and of people’s feelings (like or
dislike) in the job (Spector, 1997). These definitions refer to individual emotions that tend to
lead to being more productive, creative and committed to a job. Employee satisfaction also
refers to job satisfaction that can relate to work itself. Employee satisfaction is an important
source of employee motivation. Herzberg (1968) asserts that hygiene factors and motivator
factors influence employee motivation. Motivator factors are related to job satisfaction and
hygiene factors are related to job dissatisfaction level. There are several studies that
investigate employee satisfaction and performance. Falkenburg and Schyns (2007) support
the assertion that job satisfaction positively affects organizational commitment and hence
performance. Judge et al. (2001) confirmed that job satisfaction is related to job performance.
Antoncic (2011) explain that employee satisfaction has a positive influence on four
dimensions of work (general satisfaction with work; employee relationships; remuneration,
benefits and organizational culture; and employee loyalty). Hence, this impact has a positive
influence on firm growth. Perera et al. (2014) use structural equation modelling to analyses
the relationship between job satisfaction and job performance in the apparel sector. The
findings assert that job satisfaction has a significant positive effect on job performance. In
addition, key JC can be used to describe the motivating potential of a job redesign. The JCM
is widely used as a conceptual framework and instrument for employee motivation
enhancement. For instance, Rhoads et al. (2002) found that there is a positive correlation
between JC (control, variety, feedback, and autonomy) and job satisfaction. A high level of
these JC tends to increase job satisfaction and performance.
A majority of the managers in their study lacked variety and autonomy on the job, felt
dissatisfaction and lack of commitment to their job. Unsurprisingly, a high-turnover intention
was also observed. De Menezes (2012) finds job enrichment is positively related to job
satisfaction. Skill variety, task significance and task identify are significantly and positive
related to job satisfaction. Task identity and work feedback have significant and positive
correlations with extrinsic motivation. Netemeyer and Maxham (2012) investigated the
relationship among job satisfaction, job performance and customer contact. Result reveal a
10
positive relationship between job satisfaction and job performance. Most of the studies
reviewed above found a positive relationship between job satisfaction and improved
2.5 Model of Job Satisfaction
High
Turnover
Organizational Job
Factors Satisfaction
Outcomes
Expected Low
Absenteeism
Group Factor
` Low
Outcomes Turnover
Received Job
Individual Dissatisfaction
Factor
High
Absenteeism
Figure 1: Model of job satisfaction
The theory assumes that there are different factors which cause satisfaction and
dissatisfaction. The authors propose that only content elements account for satisfaction while
context elements only affect dissatisfaction if absent but do not themselves cause satisfaction.
Given that job satisfaction is linked to employee motivation to perform or behave in specific
way, the dual theory may suggest that content and context satisfaction may also relate
differently to service performance quality. However, there has been mixed support for this
theory. While some studies suggest context satisfaction does not contribute significantly to
overall satisfaction (Schwartz et al. 1963; Weissenberg and Gruenfeld, 1968), others indicate
both content and context satisfaction equally explain satisfaction, and therefore, the
motivation behind performance (Ewen, 1964; Schneider and Locke, 1971; Locke, 1973). In
light of the complexity of the job satisfaction construct, this paper contends that it is not
enough for service managers to be merely told that it is critical. It is also important for further
insights to be given on which specific elements of job satisfaction may be more predictive of
service-oriented behaviors among different classes of service employees. This is deemed a
11
critical gap which needs further exploratory studies. There are also other theoretical bases for
expecting context and content satisfaction to predict service-oriented behaviors differently.
First, according to the theories of equity and social exchange (Blau, 1964; Adams, 1965), a
person is more likely to reciprocate the good deeds of others. Thus, it is expected that where
employees are satisfied with management and colleagues, there would be a higher likelihood
of their exhibiting a more helpful and cooperative attitude to coworkers than otherwise.
Similarly, the attitude-behavior theory suggests that attitudes which relate to an object
(service performance or behavior, in this case) will predict behavior or performance better
than attitudes which are not directly related to the object (Ajzen and Fishbein, 1977).
Therefore, a further proposition could be advanced that context job satisfaction which does
not directly correspond to the object of service performance quality will be less predictive of
employee service-oriented behaviors to customers than content satisfaction. Therefore, we
consider it important for future studies to examine how such factors may explain employee
service performance quality beyond that accounted for by job satisfaction. A fruitful agenda
for further enquiry will be the extent to which corporate service culture or its proxy,
management orientation to service delivery, could affect the interaction between satisfaction
and performance.

The above observations notwithstanding, to data there has not been a study that
simultaneously examines the relationship between the job redesign-job satisfactions
interaction and employee performance, although the relevant literature suggests a moderation
effect might be possible in this context. Truxillo et al. (2012) discuss the possible joint effects
of age and JC on job satisfaction and performance. Based on a relevant literature review, they
developed a series of propositions, related to JCM and job satisfaction and performance. The
propositions stipulate that autonomy, task variety, task significance, and feedback from the
job will relate more positively to the satisfaction, engagement, and performance of older
workers (Truxillo et al., 2012, p. 8). Wood et al. (2012) test job enrichment content, but their
results suggest that enrichment does not display a strongly significant effect on productivity.
Job design is associated with quality and job satisfaction. However, high-job satisfaction is
strongly related with higher employee productivity and better quality. Parker (2014) reviews
research on motivation and argues that job design can improve employee learning,
maintenance, and development for outcomes, such as productivity and quality. Their
12
multilevel regression results suggest that, job redesign intervention increases job resources
(job control, participation in decision-making, feedback and skill utilization), and job
redesign intervention will allow employees an increase in well-being (Holman et al., 2010, p.
98). Job redesign is a significant mediator between job control and well-being. Since none of
the existing studies investigated the interaction effect of job redesign and job satisfaction on
2.7 Factors Determining Job Satisfaction

Rue and Ryaes (2003) suggest that job satisfaction is determined by some element in the
workplace which include financial packages like salaries, opportunities, advancement,
working conditions, and work group, further the resultant effect of the determinant serves as
yardstick for job satisfaction of dissatisfaction as well as what the outcome will be, as
asserted by Aziri (2011) that when discussing issues regarding job satisfaction, job
dissatisfaction should be considered in order to ensure balance. Squires, Hoben, Carleton and
Graham (2015) argued that though, dissatisfied employees may not quit their jobs, but such
feeling of dissatisfaction can impact on them, their colleagues as well as the their quality of
performance and the service they deliver in the sense that such dissatisfied employees have
tendencies of displaying hostility on other employees in the workplace. In addition, a study
conducted by Bos, Donders, and Bounman- Bowner (2009) aimed at obtaining a intuition
concerning job satisfaction from employee’s view point opined that job satisfaction has five
determinants which consist of independence, skill discretion, support from superior, chances
to further education and relationship with co-workers. As a result, measurement of
employee’s job satisfaction as one of the notable dynamics when it comes to aptitude and
usefulness of personnel. In practicality the first-hand decision-making model which sorts it as
indispensable that employees should be preserved and well thought-out fundamentally as
human beings that have their own desires, needs, and own cravings are a very good scale for
the prominence of job satisfaction in modern day companies (Usman & Jamal, 2013). In the
process analyzing job satisfaction, the sagacity that a satisfied employee is a pleased
employee and a pleased employee is an active employee (Aziri, 2011).
2.8 The Relationship between Job Satisfaction and Employee Performance

There are lots of researches tested the impact of job satisfaction on employee performance.
Most of them indicated that there is an impact of job satisfaction on employee performance
13
since, there is a large impact of the job satisfaction on the motivation of workers, and the
level of motivation has an impact on productivity, hence also on performance (Aziri, 2011).
Kappagoda (2012) highlighted that the job satisfaction is one of the factors that affects the
improvement of the task performance and conceptual performance. Indermun and Bayat
(2013) agreed that there is an undeniable correlation between job satisfaction and employee
performance. They suggest that psychological and physical rewards have significant impact
on job satisfaction. They believed that employees should be rewarded and motivated to
achieve job satisfaction, which will eventually lead to a significant, positive impact on the
efficiency and effectiveness of employees and thus, better overall performance
(Indermun&Bayat, 2013). Employee empowerment and workplace environment have
significant positive relationship to job satisfaction. Therefore, when an employee is given
autonomy in business decisions and when he is given favorable and clean environment then
his satisfaction level will rise.
Accordingly, his performance level will rise too (Javed, Balouch, & Hassan, 2014).
According to Awan et al. (2014) there is a positive relationship between job satisfaction and
employee performance with respect to pay package, security level, and the reward system.
Employees’ performance is best when they are satisfied with their pay package, feel secure
about their job, and satisfied with the reward system (Awan & Asghar, 2014). Job
Satisfaction has a great influence on employee performance. Satisfied employees are valuable
to their organizations because they perform better and they contribute to the overall goals and
success of an organization, unlike dissatisfied employees who considered as a burden for any
organization (Shmailan, 2016). At the same time, there are some recent research evidence
indicates that satisfaction may not necessarily lead to individual performance improvement
(Aziri, 2011) especially in the volunteer work (Pugno & Depedri, 2009). A lot of researchers
argued that employee performance itself affects employee’s level of job satisfaction. For
example, Sonnentag et al. (2008) based their in-depth performance study on the idea that high
performance results in satisfaction, feelings of self-efficacy and mastery. Job performance
causes job satisfaction because job performance affects self-esteem (Pugno & Depedri,
2009).
According to Platis et al. (2015) a large number of factors influence employee performance
one of them is the job satisfaction. And some researchers suggested that employee
14
performance does not affects their level of satisfaction. Pugno et al. (2009) examines the
relationship between job performance to job satisfaction by considering the roles of economic
incentives such as reward and promotions. He ended up with a negative route from job
performance to job satisfaction (Pugno & Depedri, 2009). Some researchers examine both job
satisfaction and job performance together as one variable. Funmilola et al. (2013) discovered
that job satisfaction dimensions jointly and independently predict job performance. While
Folami et al. (2005) studied a job context model assumes that both performance and
satisfaction are outcomes of same factors.
15
CHAPTER THREE
JOB REDESIGN AND JOB SATISFACTION ON EMPLOYEE PERFORMANCE
3.1 Job Redesign

Job redesign is an effort where job responsibilities and tasks are reviewed, and possibly re-
allocated among staff, to improve output. Redesigning jobs can lead to improvements in both
productivity and in job satisfaction. The process includes revising, analyzing, altering,
reforming and reshuffling the job-related content and dimensions to increase the variety of
assignments and functions to motivate employees and make them feel as an important asset
of the organization. The main objective of conducting job redesigning is to place the right
person at the right job and get the maximum output while increasing their level of
satisfaction.
3.2 Job Redesign Process
Revising the Job Content
Analyzing the Job-related Information
Altering the Job Elements
Reforming Job Description and Specification
Reshuffling the Job-related Tasks and Duties
16
Figure 2: Job Redesign Process
a. Revising the Job Content: Job redesigning process involves recollecting and

revising job-related information to determine the inconsistency between person and
the job.
b. Analyzing Job-related Information: Once the job analyst is through with
recollecting and revising the job content, analyzing the discrepancies is the next step.
It is done to determine the hindrances in performing job-related tasks and duties and
investigate why an employee is not able to deliver the expected output.
c. Altering the Job Elements: The next step is to amend the job elements. It may
include cut back on extra responsibilities or addition of more functions and a higher
degree of accountability. The basic aim of altering the job content is to design a job in
such a manner that encourages employees to work harder and perform better.
d. Reformation of Job Description and Specification: After altering the job elements,
a job analyst needs to reform the job description and specification in order to make
sure that the worker placed at a particular place is able to deliver what is expected of
him.
e. Reshuffling the Job-related Tasks and Duties: Next is to reallocation of new or
altered tasks and functions to employees. It may be done by rotating, enriching,
enlarging and engineering the job. The idea is to motivate the performers while
increasing their satisfaction level.
3.3 Types of Job Redesign
Job Simplification
Job Rotation (Relief
(Breaking down into
from boredom)
small sub-parts)
Job Redesign
Job Enlargement
(Extension of work Job Enrichment
plus additional tasks to (Increased
obtain a complete unit) responsibility-wide
range of duties added)
17
Figure 3: Types of Job Redesign
a. Job Rotation: It is one of the methods of job design which is an answer to the problem of
boredom. Job rotation implies the shifting of an employee from one job to another without
any change in the job. With job rotation, a given employee performs different jobs but, more
or less, jobs of the same nature. When an activity is no longer challenging, the employee
would be to another job at the same level that has similar skill requirements. Employees with
a wider range of skills give the management more flexibility in scheduling work, adapting to
changes and filling vacancies. Job rotation also has its drawbacks. Training costs are
increased. Work is disrupted as rotated employees take time to adjust to a new set-up, and it
can demotivate intelligent and ambitious trainees who seek specific responsibilities in their
chosen specialty. According to Herzberg, job rotation is merely “substituting one zero for
another zero”.
b. Job Simplification: Here the jobs are simplified or specialized. A given job is broken
down into small sub-parts and each part is assigned to one individual. Under this method, the
job simplified by breaking it down into small sub-parts. Then, each part of the job is assigned
to a worker who does the same task repeatedly. This enables the worker to gain proficiency
and fitness in doing the repetitive task. This increases worker productivity; on the one hand it
turns profits on the other. However, due to the repetitive job, workers feel boredom. They
tend to remain absent frequently. Boredom also leads to mistakes and accidents. On the
whole, the quality and quantity of output gets adversely affected.
c. Job Enlargement: Job enlargement involves adding more tusks to a job. This is a
horizontal expansion in a job. By adding more tasks to job, job enlargement expands job
scope and gives variety of tasks to the job holder. For example, a mail-sorter’s job could be
enlarged to include physically delivering the mail to the various departments in the
organization. Job enlargement reduces boredom and monotony by providing the employee
more variety of tasks in the job. Thus, it helps increase interest in work and efficiency. A
recent study found that by expanding the scope of job, workers found benefits such as more
satisfaction, enhanced customer service, and less errors. It is said that job enlargement
removes boredom and contributes to employee motivation. However, the same is not
validated in practice. Even with job enlargement, the job could become boring to employee
after a time especially when the job was already monotonous. That’s why Frederick Herzberg
18
tempted to say that job enlargement is singly “adding zero to zero”, meaning that “One set of
boring tasks (zero) is simply added to another set of boring tasks (zero)”. That is very
possibly the reasons why job enlargement is usually resisted by employees.
d. Job Enrichment: Another approach to designing motivating jobs is job enrichment.

Reasons for job enrichment being installed are varied. The excessive job specialization
(through job rotation) have been dehumanizing the work by making the worker’s job routine,
repetitive and removing all challenges from it. As such, human capabilities are not being fully
utilized under such conditions and it is creating frustration among the workers and alienating
them from their jobs. Moreover, workers today are better educated and higher paid. Job
enrichment involves adding motivating factors to job. Thus, job enrichment is a vertical
expansion of a job by adding more responsibility and freedom to do it. Fredrick Herzberg
describe job enrichment as that type of improvement in the context of the job which may give
a worker more of a challenge, more of a complete task, more responsibility, more opportunity
for growth, and more chance to contribute his ideas. Job enrichment increases job depth,
which refers to the degree of control employees have over their work. Job enrichment can
improve the quality of work output, employee motivation, and satisfaction.
3.4 Advantages of Job Redesign
a. Enhances the quality of work-life: Job redesigning motivates the employees and

enhances the quality of their work life. It increases their on-the-job productivity and
encourages them to perform better.
b. Increases organization’s and employees’ productivity: Altering their job functions
and duties makes employees much comfortable and adds to their satisfaction level.
The unambiguous job responsibilities and tasks motivate them to work harder and
give their best output. Not only this, it also results in increased productivity of an
organization.
c. Brings the sense of belongingness in employees: Redesigning job and allowing
employees to do what they are good at creates a sense of belongingness in them
towards the organization. It is an effective strategy to retain the talent in the
organization and encouraging them to carry out their responsibilities in a better
fashion.
19
d. Creates a right person-job fit: Job Redesigning plays an important role in creating a
right person-job fit while harnessing the full potential of employees. It helps
organization as well as employees in achieving their targets or goals. Therefore, the
purpose of job redesigning is to identify the task significance and skill variety
available in the organization and reallocating the job-related tasks and responsibilities
according to the specific skills possessed by an employee.
3.5 Abraham Maslow’s Need Hierarchy Theory

Abraham Maslow proposed his hierarchical theory of five important needs more than 74
years back in 1943. The theory gained ground over the years and because of its innate logic it
became widely accepted and part of compulsory reading for every management student and
Human Resource Professional. Over the years it has been questioned, analyzed and thought
by later thinkers to be inadequate in certain respects but there is no denying its basic merit in
understanding human and employee behavior in the workplace. His basic premise concerns
the meeting of human needs which progressively move up the value chain as simpler and
more basic needs are met. Maslow’s theory opines that indicated have five progressive sets of
needs, the first set being purely physical needs, also called Physiological needs. These
include all the needs a person needs first to stay alive like, food, water, air, the maintenance
of body temperature and the necessity of voiding of natural human waste. It is only when this
basic need set is satisfied that the next set of needs will be thought of for satisfaction. The
five need sets that are in sequential order are physiological needs, safety and security needs,
love and belonging needs, status and prestige needs and actualization needs. Humans work to
satisfy these needs and as people and societies move up in life their need set also changes.
This is true of all people, it could apply to the situations, individuals in progressively larger
groups and also to whole countries as well. Growth of the individual or group causes the
needs to shift upwards whereas the opposite causes downward movement in need fulfillment
desire. The safety needs can be broken up into physical safety, family security, monetary
security and employment security and love; belonging needs can be broken up into parental
love, love between partners, sibling and children. It is easy to understand why these needs
were classified as hierarchical, with physiological needs at the base and actualization needs at
the apex of a hierarchical pyramid.
20
Figure 5: Abraham Maslow’s Need Hierarchy Theory
a. Physiological needs: These are biological requirements for human survival, e.g. air,
food, drink, shelter, clothing, warmth, sex, sleep. If these needs are not satisfied the
human body cannot function optimally. Maslow considered physiological needs the
most important as all the other needs become secondary until these needs are met.
b. Safety needs: Protection from elements, security, order, law, stability, freedom from
fear.
c. Love and belongingness needs: After physiological and safety needs have been
fulfilled, the third level of human needs is social and involves feelings of
belongingness. The need for interpersonal relationships motivates behavior Examples
include friendship, intimacy, trust, and acceptance, receiving and giving affection and
love. Affiliating, being part of a group (family, friends, work).
d. Esteem needs: Which Maslow classified into two categories: (i) esteem for oneself
(dignity, achievement, mastery, and independence) and (ii) the desire for reputation or
respect from others (e.g., status, prestige). Maslow indicated that the need for respect
or reputation is most important for children and adolescents and precedes real self-
esteem or dignity.
e. Self-actualization: Is the final stage in the linear growth of an individual. Maslow
believed that in order to achieve this state of personal fulfilment, the person must first
satisfy the preceding needs. Self-actualization needs are also referred to as our 'being'
needs; these include personal and creative self-growth, which are achieved through
the fulfilment of our full potential. Maslow studied 'exemplary' people, or individuals
21
considered to have realized their full or near to their full potential in their particular
area of expertise or focus.
3.6 Frederick Herzberg Two Factor Theory

Frederick has tried to modify Maslow’s need Hierarchy theory. His theory is also known as
two factor theory or Hygiene theory. He stated that there are certain satisfies and dissatisfies
for employees at work. Intrinsic factors are related to job satisfaction while extrinsic factors
are associated with dissatisfaction. He devised his theory on the question: “What do people
want from their jobs?” He asked people to describe in detail such situations when they felt
exceptionally good or exceptionally bad. From the responses that he received, he concluded
that opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from
a job does not necessarily make the job satisfying. He states that presence of certain factors in
the organization is natural and the presence of the same does not lead to satisfaction.
However, their nonresponse leads to dissatisfaction. In similar manner there are certain
factors, the absence of which causes no dissatisfaction, but their presence has motivational
impact.
Motivating Factors for Satisfaction Hygiene Factors for Dissatisfaction

Achievement Company policies
Recognition Relationship with boss
The work itself Relationship with peers
Responsibility Work conditions
Advancement Salary
Growth Status
Security
Personal life
Figure 6: Frederick Herzberg Two Factor Theory
a. Hygiene factors: Hygiene factors are those job factors which are essential for
existence of motivation at workplace. These do not lead to positive satisfaction for
long-term. But if these factors are absent if these factors are non-existent at
workplace, then they lead to dissatisfaction. In other words, hygiene factors are those
22
factors which when adequate/reasonable in a job, pacify the employees and do not
make them dissatisfied. These factors are extrinsic to work. Hygiene factors are also
called as dissatisfies or maintenance factors as they are required to avoid
dissatisfaction. These factors describe the job environment scenario. The hygiene
factors symbolized the physiological needs which the individuals wanted and
expected to be fulfilled.
b. Motivational factors: According to Herzberg, the hygiene factors cannot be regarded

as motivators. The motivational factors yield positive satisfaction. These factors are
inherent to work. These factors motivate the employees for a superior performance.
These factors are called satisfiers. These are factors involved in performing the job.
Employees find these factors intrinsically rewarding. The motivators symbolized the
psychological needs that were perceived as an additional benefit.
3.7 Douglas McGregor Theory X and Theory Y
McGregor proposed theory X and Y underlying the behavior of employees. Theory X holds
that men who are basically lazy dislike work; one has to force him to do work. Later,
McGregor noticed that these patterns of behavior are the result of management action. An
average worker can be motivated by low level incentives such as money, security and the like
only for certain period of time. When a worker strives to achieve higher level needs and when
management denies this, he becomes distrusted and adopts an apathetic attitude, which may
be interpreted as laziness. So, in Y theory McGregor postulates that man is creative and has
the power of self-discipline to work. The important function of management, therefore,
should be to make the best use of the creative potentiality of employees by providing
adequate means for the satisfaction of their higher order needs. The implication of McGregor
theory in the context of job satisfaction is that when there are opportunities in the job to
satisfy the needs of workers at different levels, they will become satisfied.
23
Figure 7: Douglas McGregor Theory X and Theory Y
24
CHAPTER FOUR
DATA ANALYSIS AND FINDINGS
4.1 Data Analysis
The data of the study has been coded and analyzed trough the IBM Statistical Package for the
Social Sciences (SPSS) version 21.0 for windows 10.
4.1.2 Profiles of Sample Respondents

A total of 110 questionnaires were sent to the sample firms: 55 questionnaires for sample
hotels, and 50 questionnaires for sample resorts. For the combined sample observations, the
Cronbach’s α coefficient equals 0.962. For the entire sample (n 295), we tested for non-
response bias by using: first, χ2 test to compare observed data with expected data; and
second, the independent sample t-test to compare sample respondents who returned the
completed questionnaires in the first round of the survey and those who responded in the
final round of the survey follow-up, who are assumed to be similar to those who never
responded. Based on the χ2 test with key variables, the results suggest that the two groups of
sample respondents are not significantly different (at 0.05 level of significance).
Table 1: Demographic Profile of the Respondents
n %
Gender
Male 30 60
Female 20 40
Age
Below 32 years 25 50
33-47 years 16 32
48-66 years 9 18
Types of organization
Bank 40 80
Hotel and resorts 10 20
23
Educational attainment
Below bachelor’s degree 4 8
Bachelor’s degree 28 56
Master’s degree 18 36
Years of experience
Below 5 years 19 38
6-10 years 14 28
11-15 years 9 18
16-20 years 3 6
21-25 years 3 6
26-30 years 2 4
As shown in Table 1, the results suggest that the majority of the sample respondents are male
(60 per cent) and female respondents are (40 per cent). The number of 25 respondents are
from below 32 years (50 per cent) and 16 number of respondents are 33-47 years (32 per
cent) and another 48-66 years respondents are (18 per cent). Most sample respondents
attained a bachelor’s degree (56 per cent).
24
Demographic Profile of the Respondents
0 5 10 15 20 25 30 35 40 45
Figure 8: Demographic Profile of the Respondents

Finally, the majority of the sample respondents have had less than five years of work
experiences in their current position (19 respondents or 38 per cent).
4.1.3 On JC and Job Satisfaction

Based on factor analysis of JC, the mean value of each variable seems to be high: most of
them are greater than 5. The results of the principal axis factoring extraction and varimax
rotation methods suggest five factors, which strongly confirm the JCM (Hackman and
Oldham, 1976): autonomy, task significance, job feedback, skill variety, and task identity
(see, Table 2). The KMO-Bartlett value is 0.917. Factor loadings of all variables are between
0.499 and 0.752. The Cronbach’s α of all variables range from 0.764 to 0.8733. The mean
values of variables are between 5.07 and 6.27. The factor analysis of job satisfaction
identifies two factors: motivation factors and hygiene factors, which strongly confirm
Herzberg’s two-factor theory (Table 3). KMO-Bartlett test value is 0.934. The factor
loadings of all variables are greater than 0.6. Cronbach’s α of all variables are greater than
0.8, with mean values of each variable ranging from 5.27 to 6.03.
4.1.4 Regression Results
25
Table 4 provides the means, standard deviation, and correlation matrix of the core
independent variables. It indicates that all variables are statistically and significantly
correlated.
Table 3. The factor analysis result of motivation and mean value of each variable
Based on the regression analyses (Table 5) of three regression models, Model 1 serves as our
base model incorporating all core independent variables: job redesign, job satisfaction, and
the interaction effect term. We recall that this was hypothesized to influence employee
performance. Then, Model 2 is tested with one control dummy variable (industry sector,
banking). In Model 3, a regression was performed with all core independent variables and all
control variables, including industry, and demographic characteristics of sample respondents.
It is unexpectedly found that job redesign is significantly and inversely related to employee
performance, at the 0.10 level, in all three models. Job satisfaction is, however, found to be
consistently positively and significantly related to employee performance, at the 0.05.
Table 4. Mean, standard deviation, and correlations matrix of the core independent
variables
Var. Mean SD 1 2 3 4
1. Employee performance 5.6599 0.8916 (0.774)
(ep2) 9
26
2. Job redesign (r1) 5.4446 1.1738 0.200*** (0.922)
8
3. Job satisfaction (s1) 5.7031 0.7983 0.643*** 0.385*** (0.937)
2
4. Job Red. × Job Sat. (r_s) 31.4102 8.8990 0.447*** 0.898*** 0.733*** 1
5
Table 5. Regression results on the interaction effect of job redesign and job satisfaction
on employee performance
Model 1 Model 2 Model 3

B B B
(Constant) 3.246*** 3.259*** 3.289***
Job redesign (r1) −0.36* −0.338* −0.347*
Job satisfaction (s1) 0.447** 0.434** 0.459**
Job redesign × job satisfaction 0.058 0.059 0.058***
(r_s) * *
Hotel −0.163** 0.155
33-47 years (Gen-X) −0.289*
48-66 years (Baby Boom) −0.253
Male 0.005
Lower than bachelor’s degree −0.025
Master’s degree −0.075
Less than 6 years −0.143
6-10 years 0.061
More than 10 years −0.005
Adjusted R2 0.421 0.421 0.427
F 70.811 54.546 19.283
The level in all models. Moreover, the interaction effect between job redesign and job
satisfaction is found to be positively and significantly related to employee performance, at the
0.10 level in Models 1 2 and at the 0.001 level in Model 3. The adjusted R2 ranges from
0.421 in Model 1 to 0.427 in Model 3, indicating that the model can significantly explain the
variation in employee performance.
Since the interaction term of job redesign and job satisfaction (r_s) is found to be
significantly positive (i.e. β1/4, 0.058, p o0.10), we conducted simple slope test (see, Aiken
and West, 1991; Preacher et al., 2006; Dawson, 2014) to examine the relationship between
the job redesign and employee performance (EP2). The simple slope test reveals that the
effect of job redesign on employee performance is moderated by the job satisfaction level.
27
We note that the relationship between job redesign and employee performance is inversely
related. The plotted interaction is presented in Figure 1.
4.2 Findings of the Study

Our empirical results suggest relationships among job redesign, job satisfaction, and
employee performance. The findings (Table V), however, seem to generate unexpected
results. Our regression results reveal that job redesign is significantly but inversely related to
employee performance. This runs counter to the assumption (H1) that job redesign is
positively related to employee performance. Thus, H1 is not supported. An arguably
plausible explanation of this finding suggests that if job redesign is implemented without due
consideration of concerned managerial employees, these employees may not be satisfied and
committed to their redesigned job. Amongst such experienced managers, whose promoted
managerial status presumably derived from strong performances prior to the job redesign
process, a performance deterioration in a changed environment without consultation may not
be altogether surprising. What is more, the results of Model 3 suggest that age of the sample
respondents tends to be negatively related to employee performance. This seems to suggest
that it may be more difficult to use job redesign for the purpose of performance improvement
with employees in an older age group. Conversely, this may also imply that job redesign may
work more effectively with a younger age group of employees.
In response to H2, we find that job satisfaction is positively and significantly related to
employee performance in all models.
Figure 9: The plot interaction pattern between job redesign and job satisfaction
28
Perhaps even more interestingly, the interaction effect (H3) between job redesign and job
satisfaction is found to be positively and significantly related to employee performance.
However, we note that the beta coefficients of job satisfaction (JS) are much higher than
those of the job redesign (JR) and the interaction effect variable (r_s). In addition, job
satisfaction positively moderates the impact of job redesign on employee performance, as
suggested by the positive effect of the interaction variable. Further interpretations of the
relationship between job redesign and job satisfaction may be warranted.
Our finding on the interaction effect suggests a positive relationship between these two
independent variables and employee performance. To some extent, this supports findings by
other researchers such as Hadi and Adil (2010) who investigated the interaction effect of JC
and work motivation to predict bank employee performance in Pakistan. Morgeson et al.
(2006) assert that the positive effect of redesigning work is related to the nature of work,
driven predominantly by task characteristics (work scheduling autonomy, decision-making
autonomy, work methods autonomy, task variety, significance, task identity, and feedback
related to the job) that are related to job satisfaction. Furthermore, knowledge characteristics
(job complexity, information processing requirements, problem solving, and skill variety) are
found to be related to job satisfaction. Thus, a knowledge-based job redesign that enhances
employee job satisfaction can enhance employee performance.
In more generic terms and in the spirit of participative decision-making, we suggest that
involvement and consultation matters. Amongst middle-level managers, this arguably matters
even more, because their enhanced job satisfaction can be utilized to oversee others under
their supervision and achieve the efficiency and effectiveness in redesigned job goals.
29
CHAPTER FIVE
RECOMMENDATIONS & CONCLUSION
5.1 Recommendations
Based on the research findings, we recommend that, to pay attention on providing employees
with satisfying rewards and benefits since they are the most common effective factors on job
satisfaction. The study identifies existing gaps in practice on the implementation of job
redesign programs towards employee performance. Also, managers must ensure creating a
work atmosphere full of happiness as much as possible because happiness found as a mutual
factor that positively affect satisfaction and performance. The organization need to increase
the training and development programs that boost the level of task performance and satisfy
employee’s different needs. Also, manager should develop the job redesign for their
employees. The important of job performance extended to include both the behavioral aspect
and the outcome aspects, and both task and contextual performance. Therefore, the decision
makers needed to consider them when they are evaluating the performance. Finally, periodic
satisfaction and performance measurements test must be applied to track the level of these
important variables and set the corrective actions. All organization should see Reward/Pay,
Job safety, promotion and a well conducive environment as a motivation factor that can
increase employee's performance in the organization. Management should be sensitive to
employees. The study further makes recommendation that organizations prioritize adoption
of performance evaluation tools to aid in the implementation of job reorganization programs,
such as job enlargement. This will be crucial in identifying areas that will reciprocate the job
reorganization plans with enhanced operational productivity.
5.2 Conclusion
In this study, we aim to contribute to the literature on job design and employee performance.
We conducted an effect of job redesign on employee performance and considered a possible
joint interaction effect of job redesign and job satisfaction on employee performance. We
suggest that employee performance can only be improved if the job redesign process is
implemented in such a way that affected employees experience a notable degree of job
satisfaction. We speculate that this, in turn, means that in the process of job redesign
implementation, concerned employees should be involved in the change process. Griffin
(1991) concurs when investigating the long-term effects of work redesign on employee
30
perception, reporting on the crucial role of attitudes (such as job satisfaction and
commitment) and behavior. It follows that in change management, job redesign can be
utilized as a method to improve performance. However, if job redesign is implemented
without the involvement of concerned employees, it is unlikely that employees will
experience a job satisfaction boost in the process. Positive performance outcomes can be
expected as a consequence. Job redesign is a conceivable way to mobilize employee
performance through the interaction with job satisfaction. We deduce that job satisfaction
could be a key link to employee performance mobilization. To this end, we suggest that prior
to an implemented job redesign, the organizational HR function should provide relevant
support endeavors that will increase employee job satisfaction (i.e. training, coaching, etc.).
In addition, and crucially, any job redesign requires an underpinning of involvement and
consultation with concerned employees. Organizational communication can be an important
facet in this scenario, enhancing employee psychological commitment towards an effective
job redesign. After all, a committed relationship between employee and manager influences
performance.
31
REFERENCES
Akaraborworn, C.T. and McLean, G.N. (2002). The changing roles of HRD in Thiland during
the current economic crisis. International Journal of Hunman Resources
Development and Management, Vol. 2 No. 2, pp. 64-77.
Al-Ahmadi, H. (2009). Factor affecting performance of hospital nurses in Riyadh region,
Saudi Arabia. International Journal of Health Care Quality Assurance, Vol. 22 No. 1 ,
pp. 40-54.
Antoncic, J.A and Antoncic, B. (2011). Employee satisfaction, intrapreneurship and firm
growth. Industrial Management & Data System, Vol. 111 No. 4, pp. 589- 607.
Bhatti, N, Syed, A.A.S.G. and Shaikh. F.M. (2012). Job satisfaction and motivation in
banking industry. Journal of Asian Business Strategy, Vol. 2 No. 3, pp. 54-62.
Bialas, S. and Morska w Gdyni, A. (2009). Power distance as a determinant of relationship
between manager and employees in the enterprises with foreign capital. Journal of
intercultural Management, Vol. 1 No. 2, pp. 105- 115.
Boonzaaier, B. Ficker, B. and Rust, B. (2001). A review of research on the job characteristics
model and the attendant job diagnostic survey. South African Journal of Business
Management, Vol. 32 No. 1 , pp. 11-34.
Buble, M, Juras, A and Matic, I. (2014). The relationship between manager's leadership styles
and motivation. Management, Vol. 19 No. 1, pp. 161-193.
Christian, M.S, Garza, A.S. and Slaughter, J.E. (2011). Work engagement: a quantitative
review and test of its relations with task and contextual performance. Personnel
Psychology, Vol. 64 No. 1, pp. 89-136.
Conway, J. (1999). Distinguishing contextual performance from task performance for
managerial jobs. Journal of Applied Psychology, Vol. 84 No. 1, pp. 3-13.
Dawson, J. (2014). Moderation in management research: that, why, when and how. Journal
of Business and Psychology, Vol. 29, pp. 1-19.
De Menezes, L. (2012). Job satisfaction and quality management: an empirical analysis.
International Journal of Operations & Production Management, Vol. 32 No. 3 , pp.
308-328.
Devaraj, S, Fan, M. and Kohli, R. (2002). Antecedents of B2C channel satisfaction and
preference: Validating e-commerce metrics. Information System Research, Vol. 13
No. 3, pp. 316- 333.
32
Falkenburg, K. and Schyns, B. (2007). Work satisfaction, organizational commitment and
withdrawal behaviors. Management Research News, Vol. 30 No. 10, pp. 708-723.
Griffin, R. (1991). Effects of work redesign on employee perceptions, attitudes and
behaviors: a long-term investigation. Academy of Management Journal, Vol. 425 No.
2, pp. 425-235.
Gyan-Baffour, G. (1999). The effects of employee participation and work design on firm
performance: a managerial perspective. Management Research News, Vol. 22 No. 6,
pp. 1-12.
Hackman, J.R. and Oldham, G.R. (1974). The job diagnostic survey: an instrument for the
diagnosis of jobs and the evaluation of job redesign project. Yale University, New
Haven, CT: Technical Report No. 4, US Department of Commerce, National
Technical Information Service Document.
Hadi, R. and Adil, A. (2010). Job characteristics as predictors of work motivation and job
satisfaction of babk employees. Journal of the Indian Academy of Applied
Psychology, Vol. 36 No. 2 , pp. 294-299.
Harzberg, F. (1968). One more time: how do you motivate employees. Harvard Business
Review, Vol. 46 No. 1, pp. 53-62.
Holman, D.J, Axtell, C.M, Sprgg, C.A. Totterdell, P. and Wall, T.D. (2010). The mediating
role of job characteristics in job redesign interventions. Journal of Organizational
Behaviour, Vol. 31 No. 1, PP. 84-05.
Humphrey, S.E, Nahrgang, J.D. and morgeson, F.P. (2007). Integrating motivational, social,
and contextual work design features. Journal of Applied Psychology, Vol. 92 No. 5,
pp. 1332-1356.
IMAA. (n.d.). Banking industry trends of M&A between 1985 and 2013. Retrieved 21 May
2014 , from available at: www. imaa-institute,org/satistics-mergers-acquisitions.html.
Jaturanonda, C, Nanthavanij, S. and Chongphaisal, P. (2006). A survey study on decision
criteria for job rotation: comparison between public and private sector. The
International Journal of Human Resource Management, Vol. 17 No.10, pp. 1834-
1851.
Jaturanonda, C, Nanthavanij, S. and Chongphaisal, P. (2006). A survey study on weights of
decision criteria for job rotation in Thailand: comparison between public and private
sectors. The International Journal of Human Resource Management , Vol. 17 No. 10,
pp. 1834-1851.
33
Johlke, M.C and Lyer, R. (2013). A model of retail job characteristics, employee role
ambiguity, external customer mind-set, and sale performance. Journal of Retailing
and Customer Service, Vol. 20 No. 1, pp. 58-67.
Judge, T.A, Bono, J.C, Thoresen, C.J And Patton, G.K. (2001). The job satisfaction-job
performance relationship: a quantitative and qualitative review. psychological
Bulletin, Vol. 127 No. 3, pp. 376-407.
Kahya, E. (2007). The effects of job characteristics and working conditions on job
performance international. Journal of Industrial Ergonomics, Vol. 37, pp. 515-523.
Khahan, N. (2013). Influence of job characteristics and job satisfaction effect work
adjustment for entering labor market. International Journal of Business and Social
Science, Vol. 4 No. 2, pp. 95-103.
Lentz, E. and Allen, T.D. (2009). The role of mentoring others in the career plateauing
phenomenon,. Group & Organizational Management, Vol. 34 No. 3, pp. 358-384.
Lindell, M.K. and Whitney, D.J. (2001). Accounting for common method variance in cross-
sectional research designs. Journal of Applied Psychology, Vol. 86 No. 1, pp. 114-
121.
Locke, E. (1976). The nature and causes of job satisfaction. In M. (. in Dunnette (Ed.). Rand
McNally, Chicago,IL: Handbook of Industrial and Organizational Psychology.
Maxwell, J. (2008). Work system design to improve the economic performance of the firm.
Business Process Management, pp. 432-446.
Meade, A.W Watson, A.M and Kroustalis, C.M . (2007). Assessing common methods bias in
organizational research, . Paper presented at the 22nd Annual Meeting of the Society
for Industrial and Organizational Psychology . New York, NY.
Michalos, G, Makris, S and Chryssolouris, G. (2013). The effect of job rotation during
assembly on the quality of final product. CIRP Journal of Manufacturing Science and
Technology, Vol. 6 No. 3, pp. 187-197.
Mohr, R and Zoghi, C. (2008). High-involvement work design and job satisfaction.
Industrial and Labor Relations Review, vol. 61 No. 3, pp. 275-296.
Morgeson, F.P, Johnson, M.D, Campion, M.A and Medsker, G.J. (2006). Understanding
reactions to job redesign: a quasi-experimental investigation of the moderating effects
of organizational context on perceptions of performance behavior. Personnel
Psychology, Vol. 59 No. 2, pp. 333-363.
34
Morrow, P.C, McElroy, J.C and Scheibe, K.P. (n.d.). Influencing organizational commitment
through office redesign. Journal of Vocational Behavior, Vol. 81 , pp. 99-111.
Nunnally, J. (1978). Psychometric Theory. McGraw-Hill, New York: 2nd ed.
Parker, S. (2014). Beyond motivation: job and work design for development, health,
ambidexterity, and more. The Annual Review of Psychology, Vol.65, pp. 661-691.
Perera, G.D.N, Khatibi, A, Navaratna, N. and Chinna, K. (2014). Job satisfaction and job
performance among factory employees in apparel sector. Asian Journal of
Management Sciences & Education, Vol. 3 No. 1, pp. 96-104.
Podsakoff, P.M, MacKenzie, S.B, Lee, J-Y and Podsakoff, N.P. (2003). Common method
biases in behavioral research: a critical review of the literature and recommended
remedies. Journal of Applied Psychology, Vol. 88 No. 5, pp. 879-903.
Preacher, K.J, Curran, P.J. and Bauer, D.J. (2006). Computational tools for probing
interactions in multiple linear regression, multilevel modeling, and latent curve
analysis. Journal of Educational and Behavioral Satistics, Vol. 31. No. 4, pp. 437-
448.
Rathi, N. and Barath, M. (2013). Work-family conflict and job and family satisfaction:
moderating effect of social support among police personnel. Equality, Diversity and
Inclusion: An International Journal, Vol. 32. No. 4, pp. 438-454.
Rhoads, G.R, Swinyard, W.R, Geurts, M.D. and Price, W.D. (2002). Retailing as a career: a
comparative study of marketers. Journal of Retailing, Vol. 78. No. 1, pp. 71-76.
Rovinelli, R.J. and Hambleton, R.K. (1977). On the use of content specialists in the
assessment of criterion-referenced test item validity. Dutch Journal of Educational
Research, Vol. 2, pp. 49-60.
Sadikoglu, E. and Zehir, C. (2010). Investigating the effects of innovation amd employee
performance on the relationship between total quality mangement practices and firm
performance: an empirical study. International Journal Production Economics, Vol.
127, pp. 13-26.
Sawyerr, O.O, Srinivas, S. and Wang, S. (2009). Call center employee performance factors
and service performance. Journal of Service Marketing, Vol. 23. No. 5, pp. 301-317.
Strumpfer, D.J.W. (2006). The strengths perspective: fortigenesis in adult life. Social
Indicators Research, Vol. 77, pp. 11-36.
35
Truxillo, D, Cadiz, D, Rineer, J. Zaniboni, S. and Fraccaroli, F. (2012). A lifespan
perspective on job design: fitting the worker to the job to promote job satisfaction.
Organizational Psychology Review, Vol. 1 No. 21, pp. 1-22.
Ubeda, G.M, Marco, L.B, Sabater, S.V. and Garcia, L.F. (2013). Does training influence
organizational performance? Analysis of the Spanish hotel sector. European Journal
of Training and Development, Vol. 37. No. 2, pp. 380-413.
Wade, W.R. and Parent, M. (2002). Relationship between job skill and prformance: a study
of webmasters. Journal of Management Information System, Vol. 18 No. 3, pp. 71-96.
Wood, S, Veldhoven, M.V. Croon, M. and Menezes, L.M. (2013). Enriched job designed,
high involvement management and organizational performance: the mediating roles
of job satisfaction and well-being. Human Relations, Vol. 65 No. 4, pp. 419-446.
Y, Z. (2013). Individual behaviour: in-role and extra-role. International Journal of Business
Administration, Vol. 4 No. 1, pp. 23-27.
Yeo, R.K. and Li,J. (2011). Working out the quality of work life: a career development
perspective with insights for human resource management. Human Resource
Management International Digest, Vol. 19 No. 3, pp. 39-45.
36
Appendix I
Questionnaire of
The Interaction Effects of Job Redesign and Job Satisfaction on Employee
Performance: An Empirical Study
The questionnaire will be used only for academic purpose. The answer will be kept
confidential. Your honest judgment will be highly appreciated. Please tick () one of the best
suitable answer.
1. Demographic Information of the Participants

Gender: ⓐ Male ⓑ Female
Age : ⓐ Below 32 years ⓑ 33-47 years ⓒ 48-66 years
Types of organization: ⓐ Bank ⓑ Hotel and resort
Educational: ⓐ Below bachelor degree ⓑ Bachelor degree ⓒ Master degree
Job tenure: ⓐ Below 5 years ⓑ 6-10 years ⓒ 11-15 years ⓓ 16-20 years ⓔ 21-25 years ⓕ
26-30 years
4.2 On JC and Job Satisfaction

Factor 1. Autonomy
Particular Strongly Disagree Disagree Neutral Agree Strongly Agree

Autonomy
Autonomy authority
Decision
Factor 2. Task significant

Know process
Job significant
Affect the policy
37
Job value
Factor 3. Job feedback

Meeting and appraise
Work with co-worker
Teamwork
Helpful co-workers
Trustworthiness
Factor 4. Skill Variety

Skill variety
Knowledge variety
Acquire knowledge
Factor 5. Task Identity

Technique skill
Responsibility
Job pride
4.3 Job Satisfaction of the Employees
Employee Satisfaction Strongly Disagree Neutra Agree Strongly

Disagree l Agree
1. I am satisfied on my personal
job achievement.
2. I am satisfied with my salary
welfare and benefit.
3. I am satisfied with the
38
relationship level of my
subordinate and peers.
4. My job makes good use of my
skills and abilities.
5. I feel comfort with given
priorities to do different tasks.
6. I am satisfied with the pride in
my occupation and the feeling of
this honorable job.
7. I am satisfied with company
policy and administration.
8. I am satisfied with the
working environment and work
equipment.
3. Job Redesign of the Employees
Job Redesign Strongly Disagree Neutral Agree Strongly

Disagree Agree
1. Always assigned tasks are
according to my qualification.
2. Always assigned tasks are
according to my technical skills.
3. I always finished daily task
within working time.
4. The tasks on the job are always
simple and complimented.
5. The job redesign requires a
depth of knowledge and
experience.
6. My job requires to use variety
of skills and ability.
7. My job requires me to know
39
many things in organization.
8. My managers or colleagues
give feedback about my job.
Thank you for the cooperation.
40

Job Redesign and Job Satisfaction - Final - Thahea Lima

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Job Redesign and Job Satisfaction - Final - Thahea Lima

Uploaded by

Copyright:

Available Formats

Project Report

Course Code: PRJ-599

Department of Business Administration

Date of Submission: 20 February 2020

Course Code: PRJ-599

Department of Business Administration

Date: 20 February 2020

Subject: Submission of Project Report.

I wish her success throughout the life.

Si. Topics Page

2.1 Job Redesign and Employee Performance

4.1 Data Analysis

1.1 Background of the Study

1.2 Problem Statements

1.3 Objectives of the Study

i. To examine the effect of job satisfaction and job redesign on employee

1.4 Research Methodology

1.5 Limitations of the Study

2.1 Job Redesign and Employee Performance

H1. Job redesign is positively related to employee performance.

2.2 Job Satisfaction and Employee Performance

H2. Job satisfaction is positively related to employee performance.

2.5 Model of Job Satisfaction

2.6 Job Redesign and Job Satisfaction on Employee Performance

2.7 Factors Determining Job Satisfaction

2.8 The Relationship between Job Satisfaction and Employee Performance

3.1 Job Redesign

3.2 Job Redesign Process

Revising the Job Content

Analyzing the Job-related Information

Altering the Job Elements

Reforming Job Description and Specification

Reshuffling the Job-related Tasks and Duties

a. Revising the Job Content: Job redesigning process involves recollecting and

3.3 Types of Job Redesign

d. Job Enrichment: Another approach to designing motivating jobs is job enrichment.

3.4 Advantages of Job Redesign

a. Enhances the quality of work-life: Job redesigning motivates the employees and

3.5 Abraham Maslow’s Need Hierarchy Theory

3.6 Frederick Herzberg Two Factor Theory

Motivating Factors for Satisfaction Hygiene Factors for Dissatisfaction

Figure 6: Frederick Herzberg Two Factor Theory

b. Motivational factors: According to Herzberg, the hygiene factors cannot be regarded

3.7 Douglas McGregor Theory X and Theory Y

4.1.2 Profiles of Sample Respondents

Table 1: Demographic Profile of the Respondents

Figure 8: Demographic Profile of the Respondents

4.1.3 On JC and Job Satisfaction

4.1.4 Regression Results

Model 1 Model 2 Model 3

4.2 Findings of the Study

1. Demographic Information of the Participants

4.2 On JC and Job Satisfaction

Particular Strongly Disagree Disagree Neutral Agree Strongly Agree

Factor 2. Task significant

Particular Strongly Disagree Disagree Neutral Agree Strongly Agree

Factor 3. Job feedback

Particular Strongly Disagree Disagree Neutral Agree Strongly Agree

Factor 4. Skill Variety

Particular Strongly Disagree Disagree Neutral Agree Strongly Agree

Factor 5. Task Identity

Particular Strongly Disagree Disagree Neutral Agree Strongly Agree