A PROJECT REPORT ON

“JOB SATISFACTION”
AT UNIVERSITY PG COLLEGE, GODAVARIKHANI

In the partial fulfillment of the requirement for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
SATAVAHANA UNIVERSITY
Submitted by
Ms. T.VYSHNAVI
(HT.NO: 7023-18-672-001)

Under the guidance of

Dr. CH.RAVI
Assistant professor

DEPARTMENT OF COMMERCE AND BUSINESS MANAGEMENT

UNIVERSITY P.G.COLLEGE,
SATAVAHANA UNIVERSITY, GODAVARIKHANI
 (2018-2020)UNIVERSITY POST GRADUATE
COLLEGE
SATAVAHANA UNIVERSITY
GODAVARIKHANI-505209,
PEDDAPALLI DISTRICT

Date:………………..

CERTIFICATE

This is to certify that the project-work entitled

“JOB SATISFACTION” being submitted by

Ms. T.VYSHNAVI
(HTNO: 7023-18-672-001)

In partial fulfillment and for the award of

"MASTER OF BUSINESS ADMINISTRATION” at
UNIVERSITY POST GRADUATE COLLEGE,
GODAVARIKHANI, PEDDAPALLI (DIST).
is a record of bonafide work carried out under my guidance and supervision.

Project Guide

Dr. CH.RAVI
Faculty member
Dept. of Commerce & Business Management
UNIVERSITY P.G.COLLEGE
Godavarikhani.
 DECLARATION

I, T.VYSHNAVI hereby state that the project entitled JOB SATISFACTION

AT UNIVERSITY PG COLLEGE GODAVARIKHANI submitted to
Satavahana University is a partial fulfilment of the requirements for the award of
the Master of Business Administration is my original work under the supervision
and guidance of Dr. CH.RAVI It has not previously submitted for any degree or
diploma, or other similar title.

PLACE: Godavarikhani T.VYSHNAVI

DATE: (HTNO: 7023-18-672-001)
 ACKNOWLEDGEMENT

It is a great privilege for me to record here my deep sense of gratitude towards

Dr.Suresh kumar Principal, University P.G college, Godavarikhani for this
exceptional guidance in doing my project work.
I would like to extend my sincere thanks to my research guide Dr.Ch.Ravi
Asst.Proffessor for their consistent support for completing this project work.
I convey my special thanks for our teachers and faculty members
Dr.Y.Prasad , K.Savithri , Salma sultana, Azeez and S.Anil Kumar of
Dept.of commerce and business management for his support in completing my
project in a fine manner.

Finally, my parents who gave me birth, taught everything, groomed me like a

meaningful woman, and gave a meaning to my life, they are the first HR
TEACHERS OF MY LIFE, I convey my profound gratitude with bended head
before them. I thank every employee of UNIVERSITY PG COLLEGE,
GODAVARIKHANI for their help and guidance in completing of my project.
In addition, to all my friends and relatives to complete this project work
successfully.

T.VYSHNAVI
HT No: 7023 – 18 – 672 – 001
 INDEX
CHAPTER I INTRODUCTION

CHAPTER II ORGANIZATION PROFILE

CHAPTER III THEORETICAL FRAME WORK

CHAPTER IV DATA ANALYSIS & INTERPRETATION

CHAPTER V CONCLUSION & SUGGESTIONS

QUESTIONNAIRE

BIBLOGRAPHY
 CHAPTER -1
INTRODUCTION
 INTRODUCTION TO HRM
The Human Resource Management (HRM) function includes variety of activities, &
key among them is deciding the staffing needs, recruiting & training the employees,
ensuring they are high performers, performance management and ensuring personnel
management practices conform to various regulation. Activities also include managing our
approach to employee benefits and compensation, employee records and personnel policies.
Usually small business (for-profit or non-profit) has to carry to these activities
themselves because they can’t yet afford part or full-time help. However, they should
always ensure that employees have and are aware of personnel policies, which confirm to
current regulations. These policies are often in the form of employee manuals, which all
employees have.
Note that some people distinguish a difference between HRM (a major management
activity) and HRD (Human Resource Development, a profession). Those people might
include HRM in HRD, explaining that HRD includes the border range of activities to
develop personnel in the organization, including, career development, training, organization
development, etc.
There is a long-standing argument about where HR-related functions should be
organized into large organizations, e.g. “should HR be in the organization development
department or the other way around?”

INTRODUCTION OF JOB SATISFACTION

The term job satisfaction was brought to lime light by Hop pock (1935). Job
satisfaction is a combination of psychological, physiological and environment
circumstances that causes a person to say, "I am satisfied with my job".
The father of scientific management, Taylor's (1911) approach to job satisfaction was
based on a most pragmatic and essentially pessimistic philosophy that man is motivated by
money alone. That the workers are essentially ‘‘stupid and phlegmatic’’ and that they would
be satisfied with work if they get higher economic return from it. Over the years; we have
moved away from Taylor's solely monetary approach to a more humanistic orientation.
Such a description indicates the variety of variables that influences the satisfactions
of the individuals but tell us nothing about the nature of job satisfaction.
The third important aspect of job satisfaction is perception. It is one's perception of
one's present situation relative to one's values that matters.
OBJECTIVES
The study aims at finding the information regarding job satisfaction of Employees in
general and specific in university pg college,godavarikhani. The objectives are:
1. To ensure the availability of a competent and willing workforce to an organization.
2. To meet the needs, aspirations, values and dignity of individual employees.
3. To duty the relationship between job satisfaction and various socio economic
variables of employees.
4. Level of satisfaction of employees.

SCOPE OF THE STUDY

The present study is a micro level study confined to the study of motivation, job
satisfaction and can be attempted from various dimensions of personal feelings, perception,
desires, motives, attitudes, values etc. Therefore employee management in an organization
does mean management of not only technical skills but also other factors of the human
resources.
It also makes a modest attempt to examine their issues in terms of selected
dimensions. Further, the in depth analysis is confined to employees in UNIVERSITY PG
COLLEGE, GODAVARIKHANI.

SOURCES OF DATA
Required data for analysis has been collected through

 Primary data
 Secondary data
 Primary data
Information that is collected from employees or any person is known as primary data,
it is otherwise called as first information. It is collected through questionnaires and
interviews.
Secondary data
Information that is gathered from books, company’s previous records, magazines are
known as secondary data.
This study is based mainly of primary data. The main sources of primary data are
employees of UNIVESITY PG COLLEGE, GODAVARIKHANI.
The secondary data is gathered from the status reports, records and personnel manual
of UNIVERSITY PG COLLEGE, GODAVARIKHANI.

Sample size:
30 Employees (including Teaching and Non-Teaching) from various departments like
Management, commerce and physics etc. were chosen randomly for this study.

Period of the study:

The data gathered for analysis belongs to the period of 45 days.

TOOLS FOR DATA COLLECTION

Tools used for data collection were as follows:
 Unstructured discussion
 Structured discussion

UNSTRUCTURED QUESTIONNAIRE
Under this method of data collection the respondent personally comes in contact with
the respondents from whom the information is to be gathered. Certain crucial elements were
also discussed. The person who wants the information raises the concerned topic and should
allow the other persons to freely express his views and opinions of the respondents are more
clear and true.
 STRUCTURED QUESTIONNAIRE
It is usually associated with the self-administered tools with items of the closed or
fixed alternative type. The respondents feel great confidence in the anonymity of
questionnaire than in that of any interview; it plays less pressure on the subject of
immediate response. There were the reasons for choosing questionnaires one of the tools for
data collection. The investigator framed
Questionnaire including 15 questions other than respondent’s details.
The questionnaire consists of three types of questions:
 Multiple Choice
 Dichotomy Questions
 Open-ended Questions

The multiple-choice questions offer the respondents with a choice of specific answers.
While a dichotomous questions offer two choices “YES” or “NO”.
An open-ended question is accurate with space provided for the responses.
Different areas that were proposed with space provided for the responses.
Different areas that were proposed with questionnaire were namely personal
information, promotion policy, interpersonal relationship, job satisfaction and other related
areas.
LIMITATIONS

The following limitations are considered:

 The study brings the general opinion of the employees but it will not reflect the exact
opinion of all.
 As the study will be conducted in UNIVERSITY PG COLLEGE,
GODAVARIKHANI, in HR division it indicates the perception of the employees in
that division only.
 The study restricts up to 30 samples. It will not consider all the employees in the
organization.
 The study focuses on the attitudes and perceptions of employees only; it will not cover
the financial conditions of the employees.
 CHAPTER -2
COMPANY PROFILE
UNIVERSITY POST GRADUATE COLLEGE

Historical Background

In the year 1976, the Government of Andhra Pradesh in consultation with the Government of
India, formulated a program, commonly known as the six point program, for the development
of the Telangana region of the state. One important facet of this program is to create, in a well
spread out manner, facilities for higher education in Telangana. It is to implement this aspect
of the six point formula the Osmania University established a number of Post-Graduate
Centers in the Telangana Region. The Post-Graduate Centre (at present P.G. College) at
Godavarikhani started on 04-10-1976 is one of them. The foundation stone was laid by Sri
Jalagam Vengal Rao, then Chief Minister. At that time Justice Jaganmohan Reddy was Vice-
Chancellor of Osmania University. From the very inception Singareni Collieries Company
Limited, Collaborated with the Osmania University in the establishment of this Post-Graduate
College and extended all possible support in developing the M.Sc. (Engg. Physics and
Instrumentation) program at this college.

This college is situated in a place of industrial establishments like super thermal power plant
of NTPC, Singareni collieries company limited, fertilizer corporation of India unit, AP state
electricity board and Kesoram cements of the Birlas. The college offered part-time courses on
self-supporting basis between 1989-1994 in M.E. (Power Plant Engineering), M.Sc. Tech
(Environmental Science), M.B.A and PGDCA essentially for the employees of the NTPC,
SCCL and nearby industrial undertaking as a result of MoU between Osmania University and
NTPC. However, as the college was transferred from the Osmania University to the
administrative control of the Kakatiya University in 1993 through an ordinance of
Government of A.P., these part-time programmes are closed.

The College is started with a single Post-Graduate Programme in M.Sc. (Engg. Physics and
Instrumentation) in 1976. The intake of the M.Sc.(Engg. Physics & Instrumentation) course
was 12 at the beginning, which has been enhanced to 15 in 1986 and 25 in 1996. To pursue
quality education in management and computer applications by the youth of this region
M.B.A and M.C.A courses were introduced in the year 2001 with an intake of 60 and 40
respectively. In the academic year 2011-2012 MCA Course was windup because of non
financial viability of course.

University PG College, Godavarikhani was transferred from Kakatiya University to the

administrative control of Satavahana University on 01-01-2012. Two Self-finance courses
namely M.Sc Physics (Solid State Physics) and M.Com with an intake of 25 and 40
respectively was started from the academic year 2012-2013 by our University.

Infrastructural Facilities:

The post graduate college, Godavarikhani, has its own campus spread over 30 acres of land
(1,21,405 sqm.) with admin block, academic blocks, student’s hostels (both for Men &
Women) and staff quarters for teaching as well as non-teaching staff. The campus is quite
close to the nearby township and the residents on the campus are not experiencing any
difficulty in respect of schooling of children and medical, medical aid, transport and
shopping.
1. Academic Complex: The Academic complex of the institution has four buildings.
2. Hostel: The institution has a hostel, which is intended to provide residential
accommodation for students together with a TV room. A separate dining with
kitchen, pantry and store to cater to hundred students at a time is available.
3. Staff Quarter: The Post-Graduate College, Godavarikhani, has staff quarters on the
campus for non-teaching staff and residences for faculty members.
4. Faculty: The Post-Graduate College, godavarikhani, has faculty positions namely,
three regular asst.Professors, five contractual asst.professors and four Part time
lecturers are working at present in our college.

The college has been always in the forefront in achieving academic excellence. We are proud
to state that, students graduated from this college are working in reputed undertakings like
BARC, NTPC, Banks, Universities, State services, research institutions, Insurance
Companies, Police department, Education, IT Sector etc. and bringing image and reputation
to this institute.

The reputation in this industrial belt is more than that of Karimnagar town, where there are
many higher educational institutes. Many students of this place are going out for pursuing
higher education courses and many more from the middle classes, weaker sections and
particularly the girls are dropping at intermediate and graduation levels, due to lack of
opportunities to pursue higher education in this town. There is a dire need to expand the
higher education in the government / university sectors in this region.
Our college, which is situated in a prime locality in this town is not able to cater to the
increasing higher education needs of students of this place, due to lack of infrastructure,
permanent faculty and funds, though it has a sprawling campus of 30 acres land, long history,
experience and potential for expansion to meet the educational needs of our community.
Therefore, there is no doubt that the college will grow into an excellent higher learning centre
for the benefit of people of this region, if adequate facilities, assistance are extended by local
industries, public undertakings, public representations, University and the Government. In
addition to conventional courses, we can offer many job-oriented courses in the areas like
Bio-technology, Pharmacy, Bio-informatics, Microbiology, Hotel Management, International
Trade, H.R. and industrial relations. Once the facilities are provided, we can also extend
part-time, distance education courses to suit to the needs of employees, housewives etc at this
college.
 CHAPTER -3
THEORETICAL FRAMEWORK
OF JOB SATISFACTION
 EMPLOYEE JOB SATISFACTION
INTRODUCTION
When we study interaction between human needs and organizational climate several
questions arise. Such as, what does a worker expect from job up to organization? How do
attitudes of workers effect from quantity of products? What do they think about
management? Etc the answer of all these questions may be that they think unfavourable. Thus
job satisfaction is the key to main problem.
Job satisfaction is derived from the Latin word “satis” and “facere” which means
“enough and to do” respectively.
C.L. Hulpin, measured the effects of community characteristics of job satisfaction of
female clerical workers. He found that job conditions held constant job satisfaction,
The success of any organization depends on the effective utilization and motivation of
human resources.
More often “Employee Attitude”, “Job Satisfaction” and industrial morale are used
synonymously but they are not the same.
BENEFITS OF JOB SATISFACTION
One benefit of job satisfaction study in that they give management of indication of
general levels of satisfaction in a company.
 It include specific areas of satisfaction and dissatisfaction.
 Improved communication.

Job satisfaction can help discover the causes of indirect productivity problems such as
absenteeism, turnover and poor quality of work.
It helps the management both to get better handle on why employer lagging to plan better
solutions problems. They help management assess training needs. Job satisfaction survey is
an indicator of the effectiveness of organizational rewards systems. They help managers
judge whether the best performance are receiving the most rewards and the most satisfaction
from their jobs.
One of the best uses of job satisfaction survey is the evaluation of original changes on
employee attitudes. An unexpected benefit from job satisfaction survey is proved attitudes.
For some employee, survey is an emotional release a chance to get things off their chest. For
others survey is a tangible expression of marketer’s want, but neither really knows. Job
satisfaction surgery is one way to find out.
ADVANTAGES OF JOB SATISFACTION
Several benefits are derived from the study of job satisfaction by management.
a) Indication of general level:

A study of job satisfaction gives the management an indication of general level of satisfaction
among the workers of the company. The study can be made with references to a particular
subject up a group of employees in other workers. The study tells how employees feel about
their job and the organization what part of their feeling need attention up whose feelings are
involved for looking at employees problems.
b) communications:

The various communication is brought on by job satisfaction survey. The flow of

communication is in all directions i.e. upwards, downwards and lateral because such surveys
are planned, taken up and discussed. Where this encourages the workers to explain what is in
their minds upward communication may be fruitful.
c) Training needs:

It determines the training needs of the employee and the supervisors, during the course of
survey. It can be well established in what areas, the employees are satisfied or not satisfied it
well helps the management to determine employees or supervisors need training and in which
field, so that management can arrange for the training.
d) Improved attitudes

The attitudes of workers are improved through job satisfaction. On the other it shows an
expression of management interest in employees welfare gives employees a better feeling
towards management.
e) Unions:

Generally executives and union office bears discuss about the various wants of the employees
but survey verify such arguments. Union rarely opposes the survey result and in the most of
the cases supports them, especially when they know that they will share the results.
MEASUREMENT OF JOB SATISFACTION
Job satisfaction is an intangible and psychological concept. It is a qualitative aspect. It
is not understood in strict quantitative terms. Therefore, job satisfaction should be measured
through survey of employees’ attitudes. In most of the organisations, there is a practice of
conducting surveys of employee’s intentions in regular manner. Some of the techniques used
to measure job satisfaction are given below.

JOB DESCRIPTION INDEX

Job Description Index (JDI) developed by Smith, Kendall and Hulin, is a specific
questionnaire of job satisfaction that has been widely used. In earlier versions of the scale,
individuals were asked to describe the job they would most like to have (their “best” job) and
the one they would least like to have (their “Worst” job). Responses thus elicited were used
in an item analysis in order to identify those items which tended to be most discriminating;
such items were then included in the final scale. In its final form the scale provides for
measurement of attitudes in five areas namely work, supervision, pay, promotions and co-
workers. The scale consists of a series of adjectives or statements for each of these categories
and the individual is asked to mark each one as yes (Y), no (N), or cannot decide (?) as it
relates to his / her job.

FACES JOB SATISFACTION SCALE

Kunin developed a unique scheme for obtaining measures of job satisfaction. This
consists of a series of drawings of people’s faces with varying expressions, including
variations in the curvature of the mouth ranging from a broad smile to a deep frown. The
respondent simply marks that face which best expresses how he feels about his “Job in
general.” Illustration of the “Faces” scale for measuring job satisfaction.

OPINION SURVEYS
Attitude scales are used to derive an attitude index for each individual (usually
anonymously), which in turn can be averaged for individuals within a unit, department or
organisation. In contrast, opinion surveys typically provide for eliciting opinions about
specific matters such as working conditions, fringe benefits and communication. The usual
practice in opinion questionnaires is to obtain a single response to each item or question
which will indicate the degree of satisfaction with, or an opinion about, some specific aspects
of the total work situation

MINNESOTA SATISFACTION QUESTIONNAIRE

The Minnesota Satisfaction Questionnaire (MSQ) is a long form consists of 100
questions that make up twenty subscales measuring satisfaction with ability,utilisation,
achievement, activity, advancement, authority, company policies and practices,
compensation, co-workers, creativity, independence, moral values, recognition,
responsibility, security, social service, social status, supervision-human relations,
supervision-technical, variety and working conditions. Twenty of these items make up a
frequently used measure of general job satisfaction. These twenty items are referred to as the
short form of the Minnesota Satisfaction Questionnaire. The items can be separated into a
twelve items subscale for intrinsic satisfaction such as satisfaction with the chance to use
abilities and feelings of accomplishment from the job and an eight items subscale measuring
extrinsic satisfaction such as satisfaction with pay, chances for advancement and supervision.

SINGLE GLOBAL RATING

Under single global rating, the employees are asked to respond to one question. An
example of single question may be: “Considering all dimensions of the job, how satisfied are
you with your job?” Employees need to respond by reporting “a figure” based on rating scale.
Rating scales are from 1 to 5 as follows: 1 for Highly Dissatisfied, 2 for Dissatisfied, 3 for No
comment, 4 for Satisfied and 5 for Highly Satisfied. Thus, the rating, based on above scale, to
a question given by the employee is a reflection of magnitude or measurement of employee’s
job attitude toward his / her job10.

FACTORS OF JOB SATISFACTION

Job satisfaction can be viewed as an overall attitude or it can apply to the various parts
of an individual’s job. There are multifarious factors which affect an employees’ job
satisfaction and can be divided into two groups namely organisational and personal variables.
Organisational variables
The variable which highlights the organisational qualities experienced by an
individual during his working tenure is termed as organisational variable nature of work, co-
workers and working conditions.

Occupational level
The higher the level of the job the greater is the satisfaction to the individual. This is
because higher level jobs carry greater prestige and self-control. This relationship between
occupational level and job satisfaction stems from social reference group theory in that our
society values some jobs more than others. Hence people in valued jobs will like them more
than those who are in non-valued jobs. The relationship may also stem from the need-
fulfillment theory. People in higher level jobs find most of their needs satisfied than the
people in lower level ones.

Job content
Greater the variation in job content and the less the repetitiveness with which the tasks
must be performed, the greater the satisfaction of the individuals involved, since job content
in terms of variety and nature of tasks called for is a function of occupational level.

Considerate leadership
People like to be treated with consideration. Hence, considerate leadership results in
higher job satisfaction than inconsiderate leadership.

Pay
Wages and salaries are recognised to be a significant, but complex, multidimensional
factor in job satisfaction. Money not only helps people attain their basic needs but is
instrumental in providing upper-level need satisfaction. Employees often see pay as a
reflection of how management views their contribution to the organisation. Fringe benefits
are also important, but they are not so influential. Recent research indicates if employees are
allowed some flexibility in choosing the type of benefits they prefer within a total package,
called a flexible benefits plan, there is a significant increase in both benefit satisfaction and
overall job satisfaction.
Promotion
Promotional opportunities seem to have a varying effect on job satisfaction. This is
because promotions take a number of different forms and have a variety of accompanying
rewards. A promotion with a 10 percent salary raise is typically not as satisfying as one with
a 20 percent salary raise. These differences help explain why executive promotions may be
more satisfying than promotions that occur at the lower levels of organisations.

Work group
The nature of the work group will have an effect on job satisfaction. Friendly and co-
operative co-workers are a modest source of job satisfaction to individual employees. The
work group serves as a source of support, comfort, advice and assistance to the individual
worker. A “good” work group makes the job more enjoyable.

Working conditions
Good working conditions are highly desirable because they lead to greater physical
comfort. People put a high premium on a clean and orderly work station and factors such as
heating, air conditioning, humidity, lighting, noise level, availability of adequate tools and
equipments and desirable work schedules, all contribute to higher level of satisfaction. Poor
working conditions become a source of job dissatisfaction.

Company policies
Organisational structure and organisational policies play an important role in
establishing an environment that is conducive to job satisfaction. Organisation policies
usually govern employee behaviour and depending on how strict or liberal these policies are,
can generate positive or negative feelings about the organisation. Liberal and fair policies are
usually associated with job satisfaction. Employees, who feel unduly constrained because of
strict policies, would not be happy with the job.

Rewards system
Economic rewards play a significant role in influencing job satisfaction. This is
because of two reasons. First, money is an important instrument in fulfilling one’s needs; and
secondly, employees often see pay as a reflection of management‘s concern for them.
Employees want a wage or pay system which is simple, fair and in line with their
expectations. When pay is seen as fair, based on job demands, individual skill level and
community pay standards, satisfaction is likely to result.

THEORIES OF JOB SATISFACTION

Job satisfaction may be affective – one dimensional subjective construct representing

an overall emotional feeling individuals have about their job as a whole. It may also be
cognitive – more objective or logical evaluation of various facets of a job. Cognitive job
satisfaction does not assess the degree of happiness that arises from specific job facets, but
rather gauges the extent to which those job facets are judged by the job holder to be
satisfactory in comparison with objectives they themselves set or with other jobs. The two
constructs are distinct, not directly related, have different antecedents and consequences
though cognitive job satisfaction might help to bring about affective job satisfaction in the
organisation.
The main theoretical approaches to job satisfaction are given below.

Fulfilment Theory
The proponents of this theory measure satisfaction in terms of rewards a person
receives or the extent to which his needs are satisfied. Further, the proponents thought that
there is a direct / positive relationship between job satisfaction and the actual satisfaction of
the expected needs. The main difficulty in this approach is that job satisfaction as observed
by willing, is not only a function of what a person receives but also what he feels he should
receive as there would be considerable difference in the actual and expectations of persons.
Thus, job satisfaction cannot be regarded as merely a function of how much a person received
from his job. Another important factor / variable that should be included to predict job
satisfaction accurately is the strength of the individual’s desire for his level of aspiration in a
particular area.

Equity Theory
The proponents of this theory are of the view that a person’s satisfaction is determined
by his perceived equity, which in turn is determined by his input-output balance compared to
his comparison of others’ input-output balance. Input-output balance is the perceived ratio of
what a person receives from his job relative to what he contributes to the job. This theory is
of the view that both rewards - over rewards as well as under rewards lead to dissatisfaction.
An under reward causes feelings of unfair treatment while over reward leads to feeling of
guilt and discomfort among employees.

Two-factor Theory
Frederick Herzberg and his associates developed the two-factor theory, also known as
the motivator-hygiene theory, which portrays different factors as primary causes of job
satisfaction and job dissatisfaction. According to this theory, hygiene factors are sources of
job dissatisfaction. These factors are associated with the job context or work setting. They
relate more to the environment in which people work than to the nature of the work itself.
Motivator factors are those aspects of the job that make people to perform and provide people
with satisfaction. These factors are related to job content. They include sense of achievement,
recognition and responsibility. According to Herzberg, when these opportunities are not
available, low job satisfaction causes a lack of motivation and performance suffers. He
suggests the technique of job enrichment as a way of building satisfiers into job content.

Discrepancy Theory
According to this theory, job satisfaction depends upon what a person actually
receives from his job and what he expects to receive. When the rewards actually received are
less than the expected rewards it causes dissatisfaction. In the words of Locke, “job
satisfaction and dissatisfaction are functions of perceived relationship between what one
wants from one’s job and what one perceives it is actually offering”. In other words,
satisfaction is the differences between what one actually received and what he feels he should
receive.

Equity – Discrepancy Theory

This is a combination of equity and discrepancy theories. Lawler has adopted the
different approach of discrepancy theory rather than the ratio approach of equity theory. From
equity theory the concept of comparison has been selected to serve as an intervening variable.
Under this theory, satisfaction is defined as the difference between the outcomes that one
perceives he actually received and outcomes that one feels he should receive in comparison
with others. When the individual feels that what he actually received is equal to what he
perceives he should receive, there is satisfaction. Thus, an individual’s reception of his
rewards is influenced by more than just the objective amount of that factor. Because of this
psychological influence, the same amount of reward often can be seen quite differently by
two people; to one it can be a larger amount while to another it can be a small amount.

CORRELATES OF JOB SATISFACTION

There are a number of factors that correlates with the job satisfaction of employees in
an organisation. They are discussed below.

Job satisfaction and productivity

Experiments have shown that there is very little positive relationship between job
satisfaction and job performance of an individual. Job satisfaction is closely affected by the
amount of rewards that an individual drives from his job, while his level of performance is
closely affected by the basis for attainment of rewards. An individual is satisfied with his job
to the extent that his job provides him with what he desires, and he performs effectively in his
job to the extent that effective performance leads to the attainment of what he desires. This
means that instead of maximising satisfaction generally an organisation should be more
concerned about maximising the positive relationship between performance and reward. It
should be ensured that the poor performers do not get more rewards than the good
performers. Thus, when a better performer gets more rewards he will naturally feel more
satisfied.

Job satisfaction and absenteeism

Absenteeism is a major problem being faced by organisations. Though there are many
factors which prompt the employees to remain absent from the work, job dissatisfaction or
low satisfaction does also contribute to absenteeism. It has been confirmed by one of the
studies conducted in U.S. that workers with high satisfaction scores had much higher
attendance as compared to those with lower satisfaction level. Low job satisfaction produces
‘lack of will to work’ and this compels the employee to alienate from the work as far as
possible.
Job satisfaction and turnover
Research studies have revealed that the satisfied employee is less likely to leave the
job as compared to the employee having low job satisfaction. In other words, job satisfaction
ensures stability of tenure. However, the satisfaction is negatively related to turnover, but the
relation tends to be strong. Why the employee leaves the organisation is generally a
combined effect of many factors. This is because every organisation strives to maintain and
develop its human force and various measures are taken to this effect. Thus it is difficult to
show direct relationship between level of satisfaction and rate of turnover. But, whatever may
be the reason if the employee is totally dissatisfied with the kind of job he performs more
likely he will leave the job.

Job satisfaction and physical and mental health

The degree of job satisfaction affects an individual’s physical and mental health.
Since job satisfaction is a type of mental feeling, its favourableness or unfavourableness
affects the individual psychologically which ultimately affects his physical health. Lawler has
pointed out that drug abuse, alcoholism and mental and physical health result from
psychologically harmful jobs. Further, since a job is an important part of life, job satisfaction
influences general life satisfaction. The result is that there is spill over effect which occurs in
both directions between job and life satisfaction.