Factors Contributing to Job Satisfaction and their impact on

Employee Performance
Raashid Mahmood Awan
27958
(MS Accounting & Finance)
Riphah International University
G-7 Islamabad
Spring 2019
Email: rashidawan36@gmail.com

Abstract
Purpose: The purpose of this paper is to discuss on the concept of job satisfaction and how
job satisfaction can make impact on the performance of employees in an organization.
Design/methodology/approach: In view of the above cause, data was collected from both
primary and secondary sources. 400 copies of questionnaire were administered to the
respondents and 357 copies of questionnaire were returned successfully which was used as
the bases for the research analysis. Ordinary least square regression was the statistical tool
used in analyzing the data. Also, personal interviews and general observations were part of
the source on information for this study.
Findings: The research findings revealed that there is a linear relationship between job
satisfaction (nature of job, job reward, promotion and job security) and employee’s
performance.
Research limitations/implications: It was concluded on the note that employees are
dissatisfied with the working conditions of the organization, it is evident in their responses. It
was recommended that the management of the company should provide good working
conditions for its employees, so as to boost their morale.
Originality/value: There is confusion and debate among of employee attitudes and job
satisfaction even at a time when employees are increasingly important for organizational
success and competitiveness. Our research shows the importance and relation of job
satisfaction and employee’s performance.
Keywords: Job Satisfaction, employee performance, nature of job, reward, promotion, job
security.
 1. Introduction
Organizational goal of high priority has also been attainment of high level of performance
through productivity and efficiency. In other to attain that, there is a need for achieving high
level of performance advancement of an Organization. Satisfied worker leads to more and
increased job performance. That is why every organization tries to create a conducive and
satisfied work force to operate the well-being of the organization. “The greater the level of
satisfaction of employees is, the higher will be returns for organization”. And various
researches, scholars, academicians, writers and leaders have realized this.
In the literature of organizational behavior and organizational psychology, job satisfaction is
considered the most extensively researched area (Keung-Fai, 1996; George and Jones, 2008).
Moreover, employee performance very much depends on perception, values and attitudes,
there appear to be so many variables influencing the job performance that is almost
impossible to make sense of them. Performance is defined as a function of individual ability
and skill and effort in a given situation. In the short run, employee’s skills and abilities are
relatively stable. Therefore, for the purpose of the study, the researcher defines the
performance in terms of effort extended to the job of an employee. Effort is an internal force
of a person which makes him or her to work willingly when employees are satisfied with
their job and their needs are met, they develop an attachment to work or we say that they
make an effort to perform better but increased effort results in better performances.
Attainment of a high level performance through productivity and efficiency has always been
an organization’s goal of high priority. In order to do that, highly satisfied work force is an
absolute necessity, but 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 pose a threat to
the overall performance of the organization. A dissatisfied employee tends to have a low
morale towards the job and when employees’ morale to the job is low, their performance
could be affected. Also, several researchers (Alamdar, Muhammad, Muhammad and Wasim,
2011 and Pushpakumari, M.D 2008) in the developed and developing countries have
examined the impact of job satisfaction on employees’ performance but only few studies
have been carried out in the brewery companies, it is in this regard that the researcher
intended to examine the impact of job satisfaction on employees’ performance, a study of
Nigerian Breweries Plc Kakuri, Kaduna State. The main objective of the study is to examine
the impact of job satisfaction on employees’ performance,
 2. Literature review
2.1 Job Satisfaction
There have been so many definitions of Job satisfaction by different scholars. However the
definition used most is that of Locke (2002), who defined Job satisfaction as a positive
emotional state resulting from the appraisal of one‘s job or job experiences. Job satisfaction is
as a result of employee‘s view of how well their job provides those things which are viewed
as important. It is generally recognized in the organizational behavior field that job
satisfaction is the most important and frequently studied attitude (Mitchell and Lasan, 1987).
Ayeni and Popoola (2007) pointed out that Luthan (1998) posited that there are three
important dimensions of job satisfaction:
-Job satisfaction is an emotional response to a job situation. As such it cannot be seen, it can
only be inferred.
-Job satisfaction is often determined by how well outcome meet or exceed expectations. For
instance, if organization participants feel that they are working much harder than others in the
department but are receiving fewer rewards they will have a negative attitudes towards the
work, the boss and or coworkers. On the other hand, if they feel they are being treated very
well and are being paid equitably, they are likely to have positive attitudes towards the job.
-Job satisfaction represents several related attitudes which are most important characteristics
of job about which people have effective response. These to Luthans are: the work itself, pay,
promotion opportunities, supervision and coworkers.

2.2 Employee Performance

According to Nmadu (2013), employee’s performance is a degree of accomplishment of
task(s) that make up an employee’s job. This definition was in line with the definition given
by business dictionary (2010), that employees performance is the accomplishment of a given
task measured against pre-set standards of accuracy, completeness, cost and speed. Managers
at workplace must ensure that employee’s activities and output contribute to the organization
goals. This process requires knowledge of what activities and outputs are designed, observing
whether they occur and providing feedback to help improve employees morale and to meet
expectation (Nmadu, 2013). However, employees performance is associated with
productivity which translates to quantity of output, quality of output, timeliness of output,
presence or attendance on the job, morale at work, efficiency of the work completed and
effectiveness of work completed (Mathis, Fredrick and Kenneth 2009). It is the standard to
which someone does something such as a job or examination (Macmillan English Dictionary
for Advanced Learners 2007). Employee’s performance if it is recognized by managers or
superiors within the organization is often rewarded by financial and other benefits.
Performance is a major although not the only prerequisite for future career development and
success in the labour market. Although there might be exceptions, high performers get
promoted more easily within an organization and generally have better career opportunities
than low performers (Nmadu 2013). Gibson (2012), employee performance is a measure of
the morale of employee, effective and efficient completion of mutually agreed tasks by the
employee, as set out by the employer. According to Nmadu (2013), performance is measured
in terms of productivity, job satisfaction, turnover and absenteeism.”Moreover, authors
agreed that when conceptualizing employees performance one has to differentiate between an
action (i.e., behavioural) aspect and an outcome aspect of employees performance (Richard,
2009).

2.3 Factors Responsible for Employees Job Satisfaction

Rewards/ pay: It is sometimes the main cause of job satisfaction, when employees spend a
majority of their waking hours in the workplace, they want reward to satisfy and motivate
them.
Job security: Organizations can provide a sense of security through honest communication
and transparency about the company’s health and long-term viability. If you have ever had to
go to work each day wondering whether your job is secure, you know it can cause a great
deal of anxiety.
Nature of work: The work itself has positively correlated with the satisfaction of employee.
Jobs matched with the competencies and that are mentally stimulating are liked by the
employees.
Promotion: The work itself has positively correlated with the satisfaction of employee. Jobs
matched with the competencies and that are mentally stimulating are liked by the employees.

3. Theoretical Framework and Hypothesis Development

The preceding literature review supports the following theoretical framework that is as shown
in Figure 1. We have four independent variables nature of job, job reward, promotion and
job security. These are the factors that are contributing to job satisfaction and ultimately
positively impact the employee performance which is our dependent variable.
 Reward

Job Security

Job Satisfaction Employee Performance

Nature of
work

Promotion

Fig.1 Theoretical Framework

H1: a) Reward has positive impact on job satisfaction.

b) Reward has positive impact on employees’ performance.
H2: a) Job security has positive impact on job satisfaction.
b) Job security has positive impact on employees’ performance.

H3: a) Nature of work has positive impact on job satisfaction.

b) Nature of work has positive effects on employees’ performance.
H4: a) Promotion has positive impact on job satisfaction.
b) Promotion has positive impact on employees’ performance.
H5: The job satisfaction has positive impact on employee performance.
H6: Job satisfaction has a mediating role between nature of job, job reward, promotion, job
security and employee performance.
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