LITERATURE REVIEW:

Employees are a vital resource for all organizations, especially since they represent a

significant investment in terms of locating, recruiting, and training let alone salaries, healthcare

plans, bonuses, etc. The management of many organizations develops their training programmes,

benefit packages, performance appraisal and work system based on their company policy.

Usually these policies are aimed at developing loyal employees because this leads to a more

lengthy tenure. The longer an employee works for a company the more valuable they become.

Employee loyalty is the willingness to remain with the organization (Solomon, 1992).

Employee loyalty can be defined as employees being committed to the success of the

organization and believing that working for this organization is their best option. Not only do

they plan to remain with the organization, but they do not actively search for alternative

employment and are not responsive to offers (The Loyalty Research Center, 1990). Employee

loyalty is a manifestation of organizational commitment, the relative strength of an individual‟s

identification with and involvement in a particular organization (Mowday, Porter and Steers

1982).

Job satisfaction is considered as the most important and frequently studied attitude in the

field of Organizational Behavior (Mitchel & Larsel Hoppock (1935) stated that job satisfaction is

“any combinations of psychological, physiological and environmental circumstances that cause a

person truthfully say, I am satisfied with my job‟. The term job satisfaction can be defined as a

positive feeling about one’s job (Robbins, 2007).

The most popular definition of job satisfaction is one developed by (Locke, 1976). He

defined employee job satisfaction as a pleasurable or positive emotional state resulting from the

appraisal of one s job or job experience. This definition examined job satisfaction as the feeling
and thinking that arouses from within one person and is not affected by outside impacts.

However, (Rice et al. 1989) proposed that satisfaction is determined, in part, by the discrepancies

resulting from a psychological comparison process involving the appraisal of current job

experiences against some personal standards of comparison, which showed out that job

satisfaction depends mostly on the outside factor, which is other employee s job experiences.

The close relationship between job satisfaction and job performance is not something that

has arisen recently addressed (Gross & Etzioni, 1985). In contrary many research efforts have

been made in the past to detect the subject (Ostroff, 1992), (Peterson & Luthans, 2006).

Especially in healthcare services and the health care professional job satisfaction is considered

one of the key factors shaping the growth of performance in the project (Hanan. 2009).

The earliest and well-known study about factors that affect job satisfaction was the

studies of (Herzberg,1968). In his study, Herzberg interviewed a group of employees to find out

what made them satisfied and dissatisfied on the job and found out two important factors that

affect job satisfaction were motivation and hygiene factors. Motivation-hygiene theory factors

pointed out that factors creating of job satisfaction were separate and distinct from factors that

led to job dissatisfaction. Factors that led to job satisfaction are call motivators, include of

achievement, recognition, the work itself, responsibility and advancement. Although different

research brings out different sets, there are still some main elements considered to becrucial

factors that appeared on most of the researches.

Job satisfaction is a key issue for health care professionals around the world (Doef,

Mbazzi, Verhoeven 2012). Investigations reveal first of all that the organizational features of a

structure (usually a hospital) can greatly influence the job satisfaction for medical professionals.

Such features are the personnel shortages, lack of equipment, intention to leave and others (Liu,
Zhang, Ye, et.al., 2012). Contemporary management believes that the satisfaction of health care

professional from their work is the result of rational management and has a strong link with

proper leadership and motivation to healthcare organizations (Giallonardo,Wong, Iwasiw, 2010)

leadership and job engagement.

Job performance is considered as an important parameter in the medical profession, in

such a way which in the last pent etic. After a careful detection of international literature, what

can be seen is that job performance is directly and strongly related to stress and burnout (Gandi,

Wai, Karick, Dagona, 2011). Equally, crucial role in shaping the professional performance

playing both the mediator role and the procedure of rational decision making (Mohammed,

Nassar, Ghallab, Morsy, 2013).

(Abdullah et al. 2009) in their study among the service employees found that increase of

employee satisfaction could actually result in increased in employee participation and has the

potential of making both the employee and employer equally loyal to the company. Basically

employee satisfaction is dependent on benefits package, training and development, relationship

with supervisor, working conditions, teamwork and cooperation, recognition and rewards,

empowerment and communication.

According to (Chang et al. 2010), employee job satisfaction is an antecedent to employee

loyalty. Some other studies such as (Jun et al. 2006) and (Arsi et al. 2002) also consistently

report a strong relationship between organizational loyalty of employees and employee job

satisfaction. Empirical evidence also suggests a positive relationship between employee job

satisfaction and loyalty of employees (Fletcher and Williams, 1996).

Employees who feel satisfied with their jobs will most likely be more loyal to

organization than dissatisfied employees (Kim et al., 2005). Once the employee job satisfaction
increased, the degree of organizational loyalty of employee also raise higher. On the other side,

once the employee job satisfaction decreased, it will lead to the decrease of employee loyalty,

employee morale and the increase of job turnover. Low job satisfaction could also cause

employees to recede from their jobs, seek new jobs, or change their current jobs and careers.

Those factors are believed to have greater impact on job satisfaction. They are supervisor

support, fringe benefits, teamwork, working environment and training. According to Kottkeand

(Sharafinski, 1988) just as employees form global perceptions concerning their valuation by the

organization, they develop general views concerning the degree to which supervisors value their

contributions and care about their well-being. Supervisor support plays a significance role in

creating employee motivation and autonomy.

The relationship between supervisor support and job satisfaction has received a great deal

of attention in past research. Previous research has examined the relationships between

supervisor support and job satisfaction and reported a positive relationship between supervisor

support and job satisfaction (Chang et al., 2010). As supervisor take care to help and support the

contact employees and are concerned about their needs, these employees will feel more satisfied

(Griffin, Patterson and West, 2001). Such supervisor supportive behavior has been found to be

related to employee job satisfaction.

Employee training provides opportunities to employees widen their knowledge and

abilities for more efficient teamwork and achieve individual development (Jun et al., 2006).

When workers receive selfdevelopment training, the level of their job satisfaction is higher than

those without such training (Chang et al., 2010). Also, (Herzberg, 1968) found that employee job

satisfaction is influenced when they have an opportunity for advancement of individual

competencies through various training programs.

 Employees who feel satisfied with their jobs will most likely be more loyal to

organization than dissatisfied employees (Kim et al., 2005). Once the employee job satisfaction

increased, the degree of organizational loyalty of employee also raise higher. On the other side,

once the employee job satisfaction decreased, it will lead to the decrease of employee loyalty,

employee morale and the increase of job turnover. Low job satisfaction could also cause

employees to recede from their jobs, seek new jobs, or change their current jobs and careers.

OBJECTIVE:

 To develop standardize and measures to evaluate job satisfaction, organizational

commitment and employee loyalty.

 To study the difference between employee loyalty in manufacturing and service

industry.

 To study the relationship between job satisfaction and organizational

commitment.

 To find out the factors affecting loyalty of employees.

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