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The Business Research Project

What is the impact of employee satisfaction on the life cycle of


an organization and the evolution throughout the stages of the
organization's development?

Master of Business Administration

Student
Sanja Minkova Shetlovska

2023
Master of Business Administration

The Business Research Project

What is the impact of employee satisfaction on the life cycle of


an organization and the evolution throughout the stages of the
organization's development?

Student: Supervisor:

Sanja
Minkova Shetlovska Prof. Marija Stojanova

Date
25.09.2023
Contents

Acknowledgements......................................................................................................................... 3

Executive summary ......................................................................................................................... 4

1. Introduction ............................................................................................................................. 5
1.1 Aims .....................................................................................................................................................................6

1.2 Objectives ............................................................................................................................................................6

2. Literature Review (Part 1)........................................................................................................ 7


2.1 Employee satisfaction and its significance ........................................................................................................10

2.2 Types of job satisfaction ....................................................................................................................................11


2.2.1 Material incentives as factors affecting job satisfaction ............................................................ 11
2.2.2 Immaterial incentives as factors influencing job satisfaction .................................................... 12
2.2.3 Other factors affecting job satisfaction ...................................................................................... 13
2.2.4 Managers as a factor in job satisfaction..................................................................................... 14

2.3. Organizational Life Cycle...................................................................................................................................15


2.3.1 Organizational life cycle by Adizes ............................................................................................. 16

2. 4. Literature Review Part 2 (Previous studies on employee satisfaction and organizational development) .....18

3. Conceptual development ...................................................................................................... 19

4. Hypothetical framework ........................................................................................................ 21


4.1 Main hypothesis ................................................................................................................................................21

4.2 Auxiliary hypothesis ...........................................................................................................................................21

5. Research methodology .......................................................................................................... 21


5.1 Sampling ............................................................................................................................................................22

5.2 Data Analysis......................................................................................................................................................22

6. Empirical Findings & Analysis ................................................................................................ 23


6.1 Quantitative results of stable (mature)-stage company research .....................................................................23

6.2. Results from questionaries for stable (mature) organization ...........................................................................24


6.3 Quantitative results of startup stage company research ..................................................................................31

6.4. Results from questionaries for startup organization ........................................................................................32

6.5 Comparative analysis of research results ..........................................................................................................39


6.5.1 Comparative analysis of satisfaction from the working conditions ........................................... 39
6.5.2 Comparative analysis of the satisfaction with co-workers, i.e. colleagues ................................ 40
6.5.3 Comparative analysis of satisfaction from the organization ...................................................... 41
6.5.4 Comparative analysis of the satisfaction from the benefits ...................................................... 42

7. Conclusion ................................................................................................................................. 46

References: ................................................................................................................................... 47
Acknowledgements

I would like to express my great appreciation to my family for the big support in my education.

I would like to express my very great appreciation to Professor Dr. Marija Stoyanova on her valuable
and constructive suggestions during the planning and development of this research work.

Her willingness to give her time so generously has been very much appreciated.
Executive summary

In the ever-evolving landscape of modern organizations, employees' well-being and


satisfaction have emerged as pivotal factors influencing long-term success. This research
project endeavours to discover the intricate and dynamic interplay between an organization's
life cycle and job satisfaction. Every organization must recognize that with each transition to a
new phase, changes inevitably occur in both its strategy and structure. It is imperative to
acknowledge that employee reactions to these changes vary, while some individuals express
satisfaction, others may harbour dissatisfaction.
The findings of this research affirm the deep impact of the organization's life cycle
stages on job satisfaction levels. Notably, job satisfaction tends to peak during the initial stages,
characterized by novelty, growth, and opportunity. However, it gradually declines in more
mature phases marked by stability and potential stagnation. The findings also possess the
potential to explain, clarify and address a plethora of challenges that manifest throughout an
organization's lifecycle.
In summary, as organizations strive to adapt and thrive in an ever-changing landscape,
understanding the implications of job satisfaction at different life cycle stages is paramount.
This research also contributes valuable insights to inform organizational leaders and managers
in their pursuit of optimizing employee well-being, ultimately fostering an environment where
job satisfaction aligns with organizational success.

Keywords:
#organization’s life cycle #job satisfaction #employee well-being #organizational success
1. Introduction

Employee satisfaction and wellness play a crucial role in organizational success and
longevity. A content and engaged workforce contributes to increased productivity but also
helps reduce turnover rates, and improves overall performance within the organizations.
Understanding the interconnection between employee satisfaction and the life cycle of an
organization is vital for developing effective strategies to enhance employee satisfaction at
different stages. This business research project has the purpose of investigating the
relationship between employee satisfaction and an organization’s life cycle, identifying key
factors that influence employee satisfaction and wellness developing targeted strategies to
ensure long-term organizational success. With this research project, we aim to meet the
impact of employee satisfaction on the life cycle of an organization and to discover the
evolution of employee satisfaction throughout the stages of the organization’s development.
The research inducts a conceptual framework that relates to concepts from employee
satisfaction measuring organizational life cycle, and theories such as organizational behaviour
and human resource management. By combining these theoretical perspectives, the research
project aims to gain a comprehensive understanding of how employee satisfaction interacts
with the life cycle of an organization. It recognizes that as organizations evolve and go through
different stages, the factors influencing employee satisfaction may change. For example, in the
startup stage, employees may value autonomy and growth opportunities, while in the maturity
stage, they may prioritize stability and work-life balance. It could also explore how
organizational factors and human resources management practices influence employee
satisfaction and how employee satisfaction, in turn, impacts organizational outcomes such as
employee performance, turnover, and overall organizational effectiveness.
The main research question in this study is "What is the impact of employee satisfaction on
the life cycle of an organization and the evolution throughout the stages of the organization's
development? will contribute to the already established research problem by providing
valuable insights into the dynamic relationship between employee satisfaction and the life cycle
of an organization. Some examples of quantifiable evidence that highlight the importance of
addressing this problem are:
Employee Satisfaction and Productivity: A study conducted by the University of Warwick
found that happy employees are, on average, 12% more productive than their unhappy
counterparts. This quantifiable increase in productivity demonstrates the direct impact of
employee satisfaction on organizational performance.
Glassdoor Ratings and Employer Branding: Glassdoor, a popular platform for employee
reviews and ratings, has shown that organizations with higher employee satisfaction ratings
tend to attract more qualified candidates. A positive employer brand, as quantified by higher
ratings and positive reviews, can lead to a larger pool of talented applicants, reducing
recruitment costs and enhancing the organization's reputation.
This scholarly investigation aims to scrutinize employee job satisfaction within both the
initial and mature (stable) phases of organizational development, exclusively focusing on
companies operating in the Republic of North Macedonia.
As above-mentioned, the research question focuses on the phenomenon of employee
satisfaction and its impact on the life cycle of an organization. It aims to explore how employee
satisfaction influences the various stages of organizational development and how it is evolute.
The primary variable of interest is employee satisfaction, which can be measured using
validated scales. The research question also implies the presence of other variables such as the
stages of the organization's life cycle, which may include start-up, growth, maturity, and
decline. Additionally, potential influencing factors on employee satisfaction, such as leadership
style, organizational culture, and work-life balance, can be considered as secondary variables.
The participants in the research would include employees from organizations at start–up stage
of their life cycle and mature stage. A diverse sample of employees from various departments,
levels, and roles within the organization would be selected to capture different perspectives
and experiences related to employee satisfaction.

1.1 Aims
• To investigate the interconnection between employee satisfaction and the life cycle of
an organization by understanding how employee satisfaction evolves throughout
different stages of organizational development.
• To develop targeted strategies and initiatives that enhance employee satisfaction and
contribute to long-term organizational success.
1.2 Objectives
• Identify key factors that influence employee satisfaction, considering aspects such as
leadership, communication, compensation, benefits, work conditions, work safety,
work-life balance, and career development opportunities.
• Provide recommendations for organizations to enhance employee satisfaction
throughout the various stages of their life cycle.
Ultimately, this research aspires to offer actionable insights and recommendations for
organizational leaders and managers, aiding them in fostering employee well-being and driving
organizational success.
This study project's future chapters will offer a literature review, examination of the
selected methodology, data collecting and analysis. As part of a fuller understanding of the
crucial connection between employee satisfaction and organizational development, it will also
include empirical findings, discussions and conclusions.

2. Literature Review (Part 1)

A comprehensive systematic literature review was undertaken to gather pertinent insights


on employee satisfaction, organizational life cycle, and related theoretical frameworks. Every
company must recognize that each transition to a subsequent phase entails concomitant
alterations in both strategy and structure, thereby necessitating additional HR department
activities and changes that employees may either embrace or resist. While certain employees
may find contentment in these changes, others may not. Nevertheless, employers must
acknowledge that their invaluable and irreplaceable asset lies in possessing a high-quality and
satisfied workforce, as it is through the optimal utilization and unwavering dedication of
employees that companies can achieve their utmost performance and attain the finest
outcomes. Furthermore, a subset of the scholarly literature aligns with this trajectory:
Employee Satisfaction and Organizational Performance: Numerous studies have
established a positive relationship between employee satisfaction and organizational
performance. For example, research by Harter, Schmidt, and Hayes (2002) found that
organizations with higher employee satisfaction levels experienced higher customer loyalty,
increased productivity, and greater profitability. This highlights the practical importance of
understanding and enhancing employee satisfaction for long-term organizational success.
Employee Satisfaction and Employee Retention: Employee satisfaction is closely linked to
employee retention rates. A study by Steel and Ovalle (1984) showed that satisfied employees
are more likely to remain with an organization, reducing turnover rates and associated costs.
Higher employee satisfaction levels also contribute to lower recruitment expenses and a more
stable workforce, which is particularly crucial during the early stages of organizational
development.
Evolution of Employee Satisfaction throughout the Organization's Life Cycle: Research
suggests that employee satisfaction may vary across different stages of an organization's life
cycle. For instance, during the start-up phase, employees might experience high levels of job
satisfaction due to the excitement and innovation associated with new ventures. However, as
the organization matures, employee satisfaction might be influenced by factors such as
organizational structure, leadership style, and career development opportunities.
Impact of Leadership on Employee Satisfaction: Leadership plays a crucial role in shaping
employee satisfaction. Studies have shown that supportive and empowering leadership styles
positively impact employee satisfaction and engagement (Eisenbeiss et al., 2008). Additionally,
leadership effectiveness may differ at various stages of an organization's life cycle, emphasizing
the need to adapt leadership approaches accordingly.
Employee Satisfaction and Organizational Culture: Organizational culture influences
employee satisfaction throughout life. A positive and supportive culture that values employee
well-being and promotes open communication fosters higher levels of satisfaction (Denison et
al., 1995). However, cultural changes may occur as organizations grow and evolve, potentially
impacting employee satisfaction and necessitating a proactive approach to maintain a positive
culture.
Employee Satisfaction and Change Management: Change is a common feature during an
organization's life cycle, and managing it effectively is crucial. Research suggests that involving
employees in change processes and providing adequate support and communication positively
impacts employee satisfaction during times of change (Parlalis, Stavros, 2011). Understanding
the dynamics of employee satisfaction during change can help organizations navigate
transitions more effectively.
Work-Life Balance and Employee Satisfaction: As organizations progress through their life
cycle, employees' work-life balance needs may change. Research has shown that offering
flexibility and work-life balance initiatives positively impacts employee satisfaction and well-
being (Haar, Jarrod & Russo, Marcello & Sunyer, Albert & Ollier-Malaterre, Ariane, 2014).
Organizations should recognize the evolving needs of employees and adopt policies to support
work-life balance as the organization grows.
Relationship between employee satisfaction and organizational development:
Herzberg's Two-Factor Theory suggests that employee satisfaction and dissatisfaction are
influenced by two separate sets of factors: hygiene factors (e.g., working conditions, salary) and
motivators (e.g., recognition, achievement) (Herzberg et al., 1959). This theory implies that
merely addressing dissatisfying factors may not necessarily lead to satisfaction but rather to a
lack of dissatisfaction.
Figure 1. Herzberg's Two Factor Theory
Source: Synthesizing literature of leadership, job satisfaction and trust in leadership - Scientific Figure on
ResearchGate. Available from: https://www.researchgate.net/figure/Herzbergs-Two-Factor-Theory_fig2_339944411 [accessed
15 Sep 2023]

Maslow's Hierarchy of Needs: Points that employees have a hierarchy of needs,


including physiological, safety, belongingness, esteem, and self-actualization needs (Maslow,
1943). Fulfilling these needs is essential for employee satisfaction and motivation.
Understanding how organizations can align their practices with these needs is critical for
fostering employee satisfaction.
The significance of this research project lies in its potential to address practical and
theoretical gaps in the existing literature.
Practical Importance: Answering the research question will provide valuable insights
into how employee satisfaction influences the life cycle of an organization. Organizations can
tailor their strategies and initiatives by understanding the specific factors that affect employee
satisfaction at different stages. This research will contribute to the practical importance by
enabling organizations to:
• Implement targeted interventions to enhance employee satisfaction, improve
organisational performance, and reduce turnover rates.
• Optimize resource allocation by focusing on the areas that significantly impact
employee satisfaction at different stages of the organization's life cycle.
• Develop a sustainable and engaged workforce that can adapt to changing market
dynamics and contribute to long-term organizational success.
By investigating the impact of employee satisfaction on the life cycle of an organization
and its evolution throughout different stages, the research would shed light on the importance
of employee satisfaction in driving organizational success. It would provide practical insights for
managers and leaders to understand how to effectively manage employee satisfaction at
different stages of an organization's development, ultimately contributing to improved
performance, reduced turnover, and enhanced employee well-being.
Theoretical Importance: The existing literature on employee satisfaction and
organizational life cycle has provided valuable insights but lacks a comprehensive
understanding of how these two elements are interconnected. By addressing this theoretical
gap, the research question aims to:
• Explore the evolving nature of employee satisfaction throughout the different stages of
an organization's life cycle.
• Identify key factors that influence employee satisfaction at each stage, including
leadership, communication, compensation, work-life balance, and career development
opportunities.
• Provide a framework for understanding the relationship between employee satisfaction
and organizational life cycle, offering theoretical insights for scholars and practitioners in the
field.
Based on the above-mentioned literature review it highlights the importance of
employee satisfaction for organizational success and acknowledges the potential variations in
employee satisfaction throughout an organization's life cycle. It emphasizes the influence of
leadership, organizational culture, change management, and work-life balance on employee
satisfaction. By addressing these factors, organizations can foster a satisfied and engaged
workforce, contributing to long-term success at different stages of the organization's
development/

2.1 Employee satisfaction and its significance

Employee satisfaction is a multifaceted construct that encompasses an employee's


feelings, attitudes, and overall contentment with their job and the organization they work for
(Locke, 1976). It is widely recognized as a critical factor in organizational success. High levels of
employee satisfaction have been linked to increased productivity, reduced turnover, and
improved organizational performance (Spector, 1997). Conversely, low levels of employee
satisfaction can result in decreased motivation, higher absenteeism, and a negative impact on
the work environment.
The significance of employee satisfaction is further underscored by its influence on
various aspects of organizational functioning. Employee satisfaction is closely related to job
performance (Judge et al., 2001) and is considered a crucial factor in attracting and retaining
top talent (Kristof-Brown et al., 2005). Therefore, understanding the dynamics of employee
satisfaction is essential for organizations striving to maintain a competitive edge.

Figure 2. Impact of Job Satisfaction on Organizational Performance


Source: Impact of Health Care Employees' Job Satisfaction on Organizational Performance Support Vector Machine
Approach - Scientific Figure on ResearchGate. Available from: https://www.researchgate.net/figure/Impact-of-Job-Satisfaction-
on-Organizational-Performance_fig2_327944534 [accessed 15 Sep 2023]

2.2 Types of job satisfaction


Job satisfaction is a crucial element in the contemporary management paradigm,
acknowledging employees as individuals with their unique needs and desires. This paper aims
to comprehensively investigate the factors that contribute to job satisfaction. Job satisfaction is
defined as a positive emotional state derived from workplace experiences, while dissatisfaction
arises when expectations are unmet. The project categorizes these factors into material and
immaterial incentives, shedding light on their significance in shaping employee motivation and
contentment.
2.2.1 Material incentives as factors affecting job satisfaction

Material incentives play a pivotal role in motivating employees and enhancing job
satisfaction. Factors in this category include:

• Benefits management
Employee benefits, such as healthcare, retirement plans, and paid leave, significantly
impact job satisfaction. Organizations that provide comprehensive benefits packages tend to
have more satisfied employees.

• Participation in profit and material rewards


When employees have the opportunity to share in the organization's profits through
bonuses or profit-sharing schemes, it can boost their motivation and job satisfaction.

• Influence in ownership and material remuneration


Ownership or stock options can tie employees' financial success to the organization's
performance, leading to higher job satisfaction.

• Reward system impact on salary and bonuses


A well-structured reward system that fairly compensates employees in terms of salary and
bonuses is crucial for job satisfaction.

• Individual and Group Incentives


Incentives that recognize both individual and group contributions can motivate employees
and enhance their satisfaction.
Material rewards, such as salary and bonuses, are essential for motivating employees.
However, intangible, immaterial incentives should not be overlooked, as they contribute
significantly to overall job satisfaction. It is crucial to align employee expectations with actual
rewards to foster motivation. Material remuneration serves as a tool for both employees and
organizations, representing recognition of individual contributions and a means to achieve
organizational goals.
2.2.2 Immaterial incentives as factors influencing job satisfaction

Immaterial rewards, despite being less tangible, exert a profound influence on job
satisfaction. These factors include:

• Employee participation
Involving employees in decision-making processes and valuing their input can enhance their
job satisfaction.

• Recognition for outstanding performance


Publicly acknowledging and rewarding exceptional work can boost employee morale and
job satisfaction.
• Managerial style and its impact on job satisfaction
A manager's leadership style can greatly influence how satisfied employees are with their
jobs. A supportive and empowering management style fosters greater satisfaction.

• Creation of an inclusive organizational structure


An inclusive and equitable organizational structure where employees feel valued and
included can positively impact job satisfaction. Employees anticipate favourable working
conditions beyond mere material and financial rewards. Intangible rewards encompass a sense
of satisfaction and joy derived from factors like flexible working hours, contributing to a well-
rounded job satisfaction experience.
2.2.3 Other factors affecting job satisfaction

Several additional factors influence job satisfaction, including:

• Organizational structure
The organization's structure can impact how employees perceive their roles and
responsibilities, affecting job satisfaction.

• Seniority and experience


Employees' level of experience and seniority within the organization can influence their
satisfaction.

• Remote work arrangements


The growing prevalence of remote work has implications for job satisfaction, as it affects
work-life balance and job autonomy.

• Access to information
Employees' access to information and transparency within the organization can impact their
satisfaction.

• Relationships with colleagues


Positive workplace relationships and a supportive peer network contribute to job
satisfaction.

• Nature of work
The nature of the tasks and responsibilities employees have can significantly impact their
job satisfaction.
• Alignment of personal interests with work
When employees feel that their interests align with their job roles, it can lead to higher job
satisfaction

• Position and status


Job title and status within the organization can influence how employees perceive their
roles and satisfaction.

• Overall Life Satisfaction


Factors outside of work, such as personal life satisfaction, can spill over into job satisfaction.

• Work Design
The way work is designed, including job autonomy and variety, can impact job satisfaction.
These diverse elements collectively contribute to an employee's perception of job
satisfaction, impacting their motivation and performance.

2.2.4 Managers as a factor in job satisfaction

Effective human resource management plays a pivotal role in shaping job satisfaction.
Managers are responsible for creating an environment conducive to employee well-being and
motivation. Key strategies for managers include:

• Providing guidance and tips


Managers should offer guidance and advice to employees to help them excel in their
roles.

• Establishing a physical presence at the workplace


Regular interactions and presence in the workplace can help managers understand
employee needs and concerns.

• Effective communication and information sharing


Open and transparent communication fosters trust and contributes to job satisfaction.

• Goal setting and employee participation


Involving employees in goal-setting and decision-making empowers them and enhances job
satisfaction.
• Individualized Rewards
Recognizing that different employees are motivated by different things and tailoring
rewards accordingly can boost satisfaction.

• Salary management
Ensuring that salaries align with employee expectations is crucial for motivation and
satisfaction.

• Acknowledgment and constructive feedback


Providing feedback that acknowledges accomplishments and constructively addresses
performance issues is essential for job satisfaction.
Managers should actively engage with employees, solicit their input, set clear goals, and
provide individualized rewards to enhance motivation and satisfaction. Salary management
should be aligned with employee expectations, and feedback should be delivered constructively
to reinforce positive behaviours and address performance issues.
Based on this comprehensive analysis we can highlight the intricate web of factors
influencing job satisfaction in modern enterprises. Material and immaterial incentives, along
with effective managerial strategies, collectively contribute to a motivated and satisfied
workforce. Acknowledging the diverse needs and preferences of employees is crucial for
organizations seeking to optimize job satisfaction, leading to improved organizational
performance and employee well-being.

2.3. Organizational Life Cycle

Organizations, like living organisms, go through a natural life cycle consisting of distinct
stages, including introduction, growth, maturity, and decline (Adizes, 1979). Each stage
presents unique challenges and opportunities, and the organization's ability to navigate these
stages effectively often determines its long-term success or failure. The concept of the
organizational life cycle is a valuable framework for understanding how organizations evolve
and adapt to changing circumstances. The relationship between employee satisfaction and the
life cycle of an organization is a fascinating and dynamic one. It's a complex interplay that can
significantly impact an organization's success or failure.
The life cycle of organizations, as proposed by Isaac Adizes, is a dynamic and evolving
framework that helps us understand the different stages that companies go through during
their development. While some variations in the number of stages exist in the literature, Adizes
identifies six fundamental stages.

2.3.1 Organizational life cycle by Adizes

• Initial Phase (Start-up):


The initial phase represents the birth of a company, marked by a primary focus on the core
idea and the founders' determination to fulfil the organization's original purpose. This stage
lacks formalized processes and relies heavily on the founders' resources and passion. In the
early stages of an organization's life cycle, employee satisfaction often plays a crucial role. Start-
ups rely heavily on passionate and dedicated employees who are willing to put in extra hours
and effort to bring a vision to life. Employee satisfaction during this phase is often linked to a
sense of purpose, involvement in decision-making, and the excitement of creating something
new.

• Growth Phase (Go-Go):


During the growth phase, organizations experience rapid expansion, often driven by
increasing sales. However, overconfidence and reactive decision-making can lead to inefficient
operations. Establishing clear policies and management practices becomes crucial to transition
successfully to the next stage. As the organization grows, maintaining employee satisfaction
becomes a more challenging task. Rapid expansion can lead to increased workloads and stress.
Effective leadership, a positive work culture, and fair compensation are vital during this phase
to keep employees engaged and satisfied.

• Adolescence:
The adolescence stage is a critical juncture where organizations begin to operate
independently of their founders. Conflict and inconsistencies may arise within the organization,
and it's essential to delegate authority and establish specialized leadership. Diversification and
changes in goals can make staying ahead of the market challenging. Adolescence can be a
turbulent phase where employee satisfaction may start to decline if there's a lack of clear roles,
structure, and processes. Establishing clear communication channels and addressing growing
pains can help maintain or improve employee satisfaction.

• Top Form:
The top form represents the pinnacle of organizational maturity, characterized by a well-
established culture, clear vision, and a strong orientation toward customers. The organization
sets and follows plans effectively, recognizes ideal candidates for employment, and achieves
growth and profitability. However, the challenge at this stage is to maintain this optimal
position. In this phase, an organization typically reaches its peak. Employee satisfaction can be
high if the organization effectively rewards and recognizes employees' contributions.
Employees often have a sense of accomplishment and pride during this phase.

• Stable Phase (Aristocracy):


In the stable phase, organizations exhibit reduced flexibility and creativity compared to their
peak performance. There is a shift towards financial functions and risk aversion, with an
emphasis on aligning efforts with customer needs. The organization may appear more focused
on appearance, tradition, and maintaining a substantial cash reserve. In the aristocracy phase, a
select few may enjoy high employee satisfaction, especially if they are part of the established
elite within the organization. However, the majority of employees may experience
dissatisfaction due to hierarchical and bureaucratic structures.

• Bureaucracy and Decline (Death):


In the bureaucratic phase, organizations isolate themselves from the external environment,
focusing on internal matters. They may rely on monopolistic practices and legal mandates to
sustain themselves. Organizational decline and 'death' occur when there is a collective lack of
interest in the organization's survival. Employee satisfaction may be low due to limited
autonomy and innovation. Organizations must find ways to empower employees and foster
creativity to improve satisfaction.
It's important to note that the number and specifics of these stages may vary in
different models and organizational contexts. The life cycle of organizations is not static; it
evolves, bringing new experiences and challenges as organizations grow and mature.
Figure 3. Organizational life cycle by Adizes (1979)
Source: Management System and Optimization: Life Cycle of Ercan International Airport (Northern Cyprus) - Scientific Figure on
ResearchGate. Available from: https://www.researchgate.net/figure/Organizational-life-cycle-by-Adizes-1979_fig1_269233526
[accessed 15 Sep 2023]

Dr. Adizes claims underpin the theoretical foundation of this life cycle model,
emphasizing the importance of identifying the organization's current stage to take appropriate
actions effectively. Understanding where the organization stands within this framework enables
managers to make informed decisions and address issues proactively. Each stage presents its
unique challenges and opportunities, and recognizing the organization's current position within
this cycle is crucial for effective management and long-term success.

2. 4. Literature Review Part 2 (Previous studies on employee satisfaction and organizational


development)

Numerous studies have explored the relationship between employee satisfaction and
organizational development, although with varying emphases on different aspects of this
relationship. Research has shown that employee satisfaction tends to be higher during the
start-up and growth stages of the organizational life cycle (Cameron & Quinn, 2006). This
suggests that as organizations evolve, their ability to provide opportunities for employee
satisfaction may change.
However, the specific mechanisms through which employee satisfaction impacts
organizational development remain a topic of ongoing investigation. Some studies have
suggested that satisfied employees are more likely to engage in proactive behaviours that
contribute to organizational growth and innovation. Others have examined the role of
leadership and management practices in mediating the relationship between employee
satisfaction and organizational performance (Judge & Bono, 2001).
In summary, the literature on employee satisfaction and organizational development
highlights the significance of employee satisfaction in influencing various organizational
outcomes. It underscores the need for a deeper understanding of how employee satisfaction
evolves throughout the organizational life cycle and the mechanisms through which it impacts
organizational development.

3. Conceptual development

This research project seeks to investigate the dynamic relationship between employee
satisfaction and the life cycle of an organization, shedding light on how employee satisfaction
evolves as an organization progresses through various stages of development. The rationale for
this research project is grounded in the well-established significance of employee satisfaction in
organizational success and the recognition that organizations, akin to living organisms, undergo
distinct phases of development. Understanding how these two crucial aspects intersect is
paramount for organizations striving to navigate the complexities of the contemporary business
environment effectively.
Employee satisfaction has long been recognized as a key driver of organizational
performance (Spector, 1997). Satisfied employees are more likely to be engaged, motivated,
and committed to their work, leading to higher productivity and reduced turnover. It is
imperative to explore how employee satisfaction varies across different stages of an
organization's development and how this variation influences the organization's overall
trajectory.
As mentioned above, the primary objectives of this research project are, as follows:
➢ To Examine the Relationship Between Employee Satisfaction and Organizational Life
Cycle: This project aims to empirically assess the relationship between employee
satisfaction and the various stages of organizational development, including the
introduction and maturity phases.
➢ To Identify Factors Influencing Employee Satisfaction Throughout the Organizational
Life Cycle: By conducting a comprehensive analysis, we intend to identify specific factors
and variables that influence employee satisfaction at different stages of an
organization's life cycle. This includes exploring the role of leadership, compensation,
job design, and organizational culture.
➢ To Understand the Impact of Employee Satisfaction on Organizational Evolution: This
research seeks to elucidate how variations in employee satisfaction impact an
organization's ability to adapt and evolve as it progresses through the life cycle. We aim
to assess the impact on innovation, employee engagement, and overall performance.
➢ To Provide Practical Insights for Organizational Management: Ultimately, this research
aspires to offer practical insights and recommendations for organizational leaders and
managers. By understanding the nuances of employee satisfaction within the context of
the organizational life cycle, leaders can make informed decisions to enhance employee
well-being and drive organizational success.
To address these research objectives, several key factors and variables will be
investigated:
Employee Satisfaction: This variable will be measured through surveys to gauge
employees' levels of contentment, satisfaction and fulfilment with their roles, work
environment, and overall experiences within the organization.
Organizational Life Cycle Stage: We will categorize organizations into distinct life cycle
stages (startups and maturity (stable) stages) to determine how employee satisfaction patterns
evolve across these stages.
Leadership and Management Practices: These encompass factors such as leadership
styles, communication, and decision-making processes, which may impact employee
satisfaction differently depending on the organization's life cycle stage.
Compensation and Benefits: Compensation packages and benefits can influence
employee satisfaction and may vary in significance at different stages of development.
Job Design and Work Environment, Work Conditions, Work Safety: Factors related to
job roles, responsibilities, and the work environment, including work-life balance and job
security, work conditions and work safety will be examined as potential drivers of employee
satisfaction.
Organizational Culture: The prevailing organizational culture, including values, norms,
and employee engagement initiatives, will be assessed for its impact on employee satisfaction.
By analyzing these factors in the context of the organizational life cycle, this research
aims to provide a comprehensive understanding of the intricate relationship between
employee satisfaction and organizational development.
4. Hypothetical framework

The main research question of this research project is the influence that job satisfaction
has on the current stage of the organization. Auxiliary questions are closely related to the
employee's perception of influence and the influence of the moment stage on the management
career. What is also of particular importance is the measurement of the most positive influence
the employee has on himself. According to this:

4.1 Main hypothesis

✓ The stage in which a specific organization is located significantly impacts job


satisfaction at work.

This framework sets the stage for my research by highlighting the main research question that
helps explore different aspects of the relationship between the organization's current stage and
job satisfaction. The hypothesis suggests that there is a significant impact, which I will
investigate and analyze in this project.

4.2 Auxiliary hypothesis

✓ Job satisfaction among employees is higher in the first three stages of the
organization's life cycle than in the other two stages (excluding the rebirth phase).

This auxiliary hypothesis provides a specific expectation about the relationship between job
satisfaction and the organization's life cycle stages. It suggests that you anticipate higher job
satisfaction in the initial stages compared to the later stages, excluding a potential rebirth
phase.

5. Research methodology

To achieve the research objectives outlined in the above section, a quantitative research
design will be employed. This research method allowed a comprehensive exploration of the
relationship between employee satisfaction and the organizational life cycle.
Quantitative Data: Surveys were administered to collect quantitative data on employee
satisfaction at different stages of the organization's life cycle. The surveys utilized validated
scales to ensure reliability and validity. The data were collected using online survey platforms or
paper-based questionnaires, depending on the preferences and accessibility of the target
participants. Survey research was carried out in a form that aimed to give a quantitative
evaluation of the degree - evaluation of satisfaction of the respondents from their company
according to the previously determined questions. The results were processed in quantitative
form and based on the values obtained for each subset of the research, quantitative analysis
was enabled.
5.1 Sampling

Quantitative Sampling
A stratified random sampling approach will be used for the quantitative survey.
Organizations from different industries and at different stages of the life cycle (start-up and
mature (stable),) will be included in the sample. Within each stratum, a random sample of
employees will be selected to participate in the survey. This approach ensures representation
across various organizational contexts.

5.2 Data Analysis

Quantitative Data Analysis

The obtained results were analyzed and translated into conclusions with the application
of methods of quantitative hypothetical testing and application of the traditional quantitative
analysis. The obtained results were divided into 5 different levels and then were grouped into
two main subgroups: satisfied and dissatisfied employees. In the process of processing the
results, a formula was used for the percentage expression of levels obtained based on survey
responses.
100
Percentage value = ------------------------------------------ X responses received
the total number of respondents
6. Empirical Findings & Analysis

6.1 Quantitative results of stable (mature)-stage company research

A representative of a company in a stable (mature) phase is PETROL OIL COMPANY


which is a family company that was created based on a long family tradition of
entrepreneurship and trade. The company's activity in the past years on the Macedonian
market is mostly related to the distribution and turnover of oil derivatives as well as the import
and sale of renewable energy sources for heating such as pellets and briquettes. For more than
five years, the company has been conducting technical inspection and registration of motor
vehicles in its technical inspection station, for which an insurance brokerage company was also
established.
The history of the company shows that it developed gradually but with a stable and
progressive development plan. Due to this Petrol Oil Company was defended as a sample for a
company in a more stable (mature) stage. The examined sample that was the subject of the
research was composed of 40 employees of different ages and professional profiles.
Age distribution of the examined sample

Under 29 years From 30 to 49 years From 50 years


15 2 2

Educational distribution of the examined sample

Secondary education Bachelor Degree Master Degree


13 25 2

Gender distribution of the examined sample

Male Female
22 18

Quantitative review of results:


Explanation of the quantitative gradation of the questionnaire:
1 - Completely satisfied
2 - Satisfied
3 - Satisfied to a certain extent
4 - Slightly satisfied
5 - Dissatisfied
The final grading was realized by grouping the results of 1 and 2 in a group of Satisfied and 3,
4 and 5 in the group of Dissatisfied.

6.2. Results from questionaries for stable (mature) organization

Question Satisfied in Satisfied in % Dissatisfied in Dissatisfied in


total total %

Group of questions
related to satisfaction
with working conditions
1. Satisfaction with 17 42.50% 23 57.50%
working conditions - with
the working environment
2. Satisfaction with 20 50.00% 20 50.00%
working conditions - with
workplace safety
3. Satisfaction with 16 40.00% 24 60.00%
working conditions -
workplace organization
4. Satisfaction with 18 45.00 % 22 55.00%
working conditions - the
opportunity for education
and professional
development
5. Satisfaction with 19 47.50% 21 52.50%
working conditions -
hygiene in the
organization
6. Satisfaction with the 20 50.00% 20 50.00%
working conditions - the
equipment for the work
Group of questions
related to satisfaction
with coworkers and
colleagues
7. Satisfaction with co- 18 45.00% 22 55.00%
workers, i.e. colleagues -
the ability to communicate
8. Satisfaction with 16 40.00% 24 60.00%
collaborators ie colleagues
- the quality of
communication
9. Satisfaction with 21 52.50% 19 47.50%
collaborators, i.e. the
colleagues - freedom of
mutual communication
10. Satisfaction with the 17 42.50% 23 57.50%
collaborators, i.e. the
colleagues - acceptance of
useful suggestions and
inventive solutions
11. Satisfaction with 14 35.00% 26 65.00%
colleagues, i.e. colleagues -
objectivity and consistency
when evaluating the
achievements and
behaviours of colleagues

Group of questions
related to satisfaction
with the organization in
which you work
12. Satisfaction with the 20 50.00% 20 50.00%
organization in which you
work - with the attitude of
your superiors
13. Satisfaction with the 18 45.00% 22 55.00%
organization in which I
work - the organizational
structure
14. Satisfaction with the 14 35.00% 26 65.00%
organization in which I
work - the possibility of
remote work
15. Satisfaction with the 13 32.500000% 27 67.50%
organization in which I
work - the recognition I
receive for a job well done
16. Satisfaction with the 19 47.50% 21 52.50%
organization in which I
work - the status that I
receive
Group of questions
related to the benefits

17. Satisfaction with the 17 42.50% 23 57.50%


benefits that I receive in
the organization in which I
work - the security that I
have in terms of benefits,
which refer to severance
pay
18. Satisfaction with the 17 42.50% 23 57.50%
benefits that I receive
from the organization in
which I work - absence
from work that implies -
(lunch break, holidays,
vacations, family leave,
health and hospital leave,
latent leave and leave for
severe bereavement and
funeral).
19. Satisfaction from the 15 37.50% 25 62.50%
information I receive from
the organization in which I
work - the information
about the conditions that
are important for the
performance of work
duties
20. Satisfaction with 13 32.50% 27 67.50%
information that I receive
from the organization in
which I work - information
about my rights and
obligations
21. Satisfaction with 17 42.50% 23 57.50%
information that I receive
from the organization in
which I work - information
about my quality goals and
their realization
22. Satisfaction from the 16 40.00% 24 60.00%
material rewards that I
receive from the
organization in which I
work – the salary and
bonus that I receive as a
reward system
23. Satisfaction from the 13 32.50% 27 67.50%
material rewards that I
receive from the
organization in which I
work - group and
individual incentives.
24. Satisfaction from the 15 37.50% 25 62.50%
material rewards that I
receive from the
organization in which I
work - the opportunity to
participate in the
formation of profits in the
form of material rewards
25. Satisfaction with the 13 32.50% 27 67.50%
immaterial rewards I
receive from the
organization I work in -
receiving praise from the
management team when I
achieve a great result in
my work
26. Satisfaction with 10 25.00% 30 75.00%
immaterial rewards that I
receive from the
organization I work for -
the opportunity to travel
frequently outside my
country

The results of the survey can be shown in a percentage version and after the following
formula:
Total amount of responses/number of responses per squad. satisfaction category
If the above is used, the resulting views are:

Completely Satisfied = 19%


Satisfied = 22 %
Satisfied to a certain extent =26%
Slightly satisfied = 17%
Dissatisfied = 16%
Group results:
Satisfied = 41%
Dissatisfied = 59%
Results reviews can be grouped into four subgroups depending on which aspect of total
satisfaction is addressed
Satisfaction with the working conditions:
Completely satisfied = 28%
Satisfied = 18%
Satisfied to a certain extent = 24%
Slightly satisfied = 19%
Satisfied
46% Dissatisfied = 11%
54% Dissified
Group results:
Satisfied = 46 %
Dissatisfied = 54%

Satisfaction with co-workers, i.e. colleagues


Completely satisfied = 20%
Satisfied = 23%
Satisfied to a certain extent = 26%
Slightly satisfied = 15%
43% Satisfied
57% Dissatisfied = 16%
Dissified
Group results:
Satisfied = 43 %
Dissatisfied = 57%
Satisfaction from the organization in which you work

Completely satisfied = 13%


Satisfied = 30%
Satisfied to a certain extent = 27%
Slightly satisfied = 16%
43% Satisfied
57% Dissatisfied = 14%
Dissified
Group results:
Satisfied = 43 %
Dissatisfied = 57%

Satisfaction from the benefits


Completely satisfied = 16%
Satisfied = 21%
Satisfied to a certain extent = 26%
Slightly satisfied = 16%
37%
Satisfied Dissatisfied = 21%
63% Dissified
Group results:
Satisfied = 37 %
Dissatisfied = 63%

If the results of the subgroups are analyzed, it is interesting to note that the percentage
of employee dissatisfaction with the benefits category in terms of material and unmaterial
rewards, (bonus, salary and other forms of rewards) is higher than the percentage of
dissatisfaction with other subgroups. The reason for this will be explained later.

6.3 Quantitative results of startup stage company research

To provide a larger sample for the realization of the research groups in the initial startup
phase, three companies were taken as the target of the research with different numbers of
employees, Baby Shop Online DOOEL, Different DOOEL and Different Group DOOEL. The
examined sample that was the subject of the research was composed of 37 employees of
different ages and professional profiles.
Age distribution of the examined sample

Under 29 years From 30 to 49 years From 50 years


24 13 0

Educational distribution of the examined sample

Secondary education Bachelor Degree Master Degree


4 31 2

Gender distribution of the examined sample

Male Female
19 18

Quantitative review of results:


Explanation of the quantitative gradation of the questionnaire:
1 - Completely satisfied
2 - Satisfied
3 - Satisfied to a certain extent
4 - Slightly satisfied
5 - Dissatisfied
The final grading was realized by grouping the results of 1 and 2 in a group of Satisfied and 3,
4 and 5 in the group of Dissatisfied.

6.4. Results from questionaries for startup organization

Question Satisfied in Satisfied in % Dissatisfied in Dissatisfied in


total total %

Group of questions
related to satisfaction
with working conditions
1. Satisfaction with 32 80.00% 5 13.51%
working conditions - with
the working environment
2. Satisfaction with 32 80.00% 5 13.51%
working conditions - with
workplace safety
3. Satisfaction with 23 57.50% 14 37.84%
working conditions -
workplace organization
4. Satisfaction with 24 60.00 % 13 35.14%
working conditions - the
opportunity for education
and professional
development
5. Satisfaction with 25 62.50% 12 32.43%
working conditions -
hygiene in the
organization
6. Satisfaction with the 30 75.00% 7 18.92%
working conditions - the
equipment for the work
Group of questions
related to satisfaction
with coworkers and
colleagues
7. Satisfaction with co- 29 72.50% 8 21.62%
workers, i.e. colleagues -
the ability to communicate
8. Satisfaction with 30 75.00% 7 18.92%
collaborators ie colleagues
- the quality of
communication
9. Satisfaction with 30 75.00% 7 18.92%
collaborators, i.e. the
colleagues - freedom of
mutual communication
10. Satisfaction with the 28 70.00% 9 24.32%
collaborators, i.e. the
colleagues - acceptance of
useful suggestions and
inventive solutions
11. Satisfaction with 21 52.50% 16 43.24%
colleagues, i.e. colleagues -
objectivity and consistency
when evaluating the
achievements and
behaviours of colleagues

Group of questions
related to satisfaction
with the organization in
which you work
12. Satisfaction with the 28 70.00% 9 24.32%
organization in which you
work - with the attitude of
your superiors
13. Satisfaction with the 26 65.00% 11 29.73%
organization in which I
work - the organizational
structure
14. Satisfaction with the 24 60.00% 13 35.14%
organization in which I
work - the possibility of
remote work
15. Satisfaction with the 22 55.00% 15 40.54%
organization in which I
work - the recognition I
receive for a job well done
16. Satisfaction with the 26 65.00% 11 29.73%
organization in which I
work - the status that I
receive
Group of questions
related to the benefits

17. Satisfaction with the 24 60.00% 13 35.14%


benefits that I receive in
the organization in which I
work - the security that I
have in terms of benefits,
which refer to severance
pay
18. Satisfaction with the 30 75.00% 7 18.92%
benefits that I receive
from the organization in
which I work - absence
from work that implies -
(lunch break, holidays,
vacations, family leave,
health and hospital leave,
latent leave and leave for
severe bereavement and
funeral).
19. Satisfaction from the 27 67.50% 9 24.32%
information I receive from
the organization in which I
work - the information
about the conditions that
are important for the
performance of work
duties
20. Satisfaction with 28 70.00% 9 24.32%
information that I receive
from the organization in
which I work - information
about my rights and
obligations
21. Satisfaction with 28 70.00% 9 24.32%
information that I receive
from the organization in
which I work - information
about my quality goals and
their realization
22. Satisfaction from the 20 50.00% 17 45.95%
material rewards that I
receive from the
organization in which I
work - the salary and
bonus that I receive as a
reward system
23. Satisfaction from the 19 47.50% 18 48.65%
material rewards that I
receive from the
organization in which I
work - group and
individual incentives.
24. Satisfaction from the 14 35.00% 23 62.16%
material rewards that I
receive from the
organization in which I
work - the opportunity to
participate in the
formation of profits in the
form of material rewards
25. Satisfaction with the 25 62.50% 12 32.43%
immaterial rewards I
receive from the
organization I work in -
receiving praise from the
management team when I
achieve a great result in
my work
26. Satisfaction with 22 55.00% 15 40.54%
immaterial rewards that I
receive from the
organization I work for -
the opportunity to travel
frequently outside my
country

The results of the survey can be shown in a percentage version and after the following
formula:

Total amount of responses/number of responses per squad. satisfaction category


If the above is used, the resulting views are:
Completely satisfied: 48%
Satisfied = 22 %
Satisfied to a certain extent =21%
Slightly satisfied = 7%
Dissatisfied = 2%
Group results:
Satisfied =70%
Dissatisfied = 30%
Results reviews can be grouped into four subgroups depending on which aspect of total
satisfaction is addressed:
Satisfaction with the working conditions:
Completely satisfied: 50%
Satisfied = 24 %
Satisfied to a certain extent =19%
26%
Slightly satisfied = 6%
Satisfied Dissatisfied = 1%
74%
Dissified
Group results:
Satisfied =74%
Dissatisfied = 26%

Satisfaction with co-workers, i.e.


colleagues
Completely satisfied = 47%
Satisfied = 28%
Satisfied to a certain extent = 17%
75% Satisfied Slightly satisfied = 7%
25%
Dissified Dissatisfied = 1%
Group results:
Satisfied = 75 %
Dissatisfied =25%
Satisfaction from the organization in which you work

Completely satisfied = 46%


Satisfied = 22%
Satisfied to a certain extent = 23%
Slightly satisfied =8%
68% Satisfied
32% Dissatisfied = 1%
Dissified
Group results:
Satisfied = 68 %
Dissatisfied = 32%

Satisfaction from the benefits


Completely satisfied = 47%
Satisfied = 16%
Satisfied to a certain extent = 22%
Slightly satisfied = 10%
63%
Satisfied Dissatisfied = 5%
37% Dissified
Group results:
Satisfied = 63 %
Dissatisfied =37%
6.5 Comparative analysis of research results

Upon initial examination of the results derived from the survey research, we can
immediately notice a difference in the degree of employee satisfaction. This was expected;
however, the purpose of this hypothesis effort was not only to distinguish the degree of
satisfaction but to confirm that the degree of employee satisfaction in companies that are in the
first three stages is higher compared to companies that are in the last two stages.
According to the chosen example of a successful company in a mature stage, the
generally expected employee satisfaction is at a high level, although compared to companies
from the initial stage this satisfaction is lower.
The comparative analysis that will be given below aims to show the differences between
the two groups of companies, and specific descriptions of the results based on the subgroup’s
satisfaction.
6.5.1 Comparative analysis of satisfaction from the working conditions

The notable difference in employee satisfaction with working conditions between stable
companies like Petrol Oil Company and start-ups like Babyshop Online DOOEL, Different DOOEL
and Different Group DOOEL can be attributed to several factors. Established companies are
expected to meet industry standards for workplace satisfaction due to their long market
presence. However, their extensive operations can make it challenging to address each
employee's unique needs. In contrast, start-ups often have smaller teams, including owners
who are closely involved in day-to-day operations. This results in greater individual attention
and higher satisfaction levels, as the smaller workforce allows for more personalized support
and accommodation of individual preferences.
The difference observed in the examination and the results do not imply that mature
companies have lower working conditions standards. Rather, it underscores the distinction in
employee expectations between those in established corporations and those in nascent
enterprises.
6.5.2 Comparative analysis of the satisfaction with co-workers, i.e. colleagues

The variation in satisfaction among colleagues also exhibits noticeable differences.


These discrepancies and distinctions predominantly arise from several key factors:

• Established Management Systems: Mature companies typically have well-established


managerial structures, often with a centralized leadership approach. This can sometimes
harm interpersonal relations, particularly in cases where delegation is limited.
• Adaptation Processes: In mature companies, new employees undergo adaptation
processes not only to the work environment but also within the existing team. This
adaptation often involves the unofficial positioning of senior employees in a hierarchical
manner.
• Turnover Rates: Mature companies tend to experience higher employee turnover
compared to newly established ones that are building their inter-organizational
interpersonal systems.
• Structural Flexibility: New companies, by their startup phase, often possess more
flexible internal structures that facilitate closer relationships among employees, both
vertically (superiors and subordinates) and horizontally (colleagues).
• Adaptability to Standards: Start-up companies are generally more adaptable when it
comes to defining and implementing standards for inter-organizational interpersonal
relations.
It is essential to emphasize that the observed differences in the test results do not
suggest inferior inter-organizational and interpersonal relations in mature companies. Rather,
these distinctions arise from the phase of development and the structural intricacies, leading to
higher employee satisfaction in start-up companies.

6.5.3 Comparative analysis of satisfaction from the organization

In this particular segment, the research results reveal a subtle deviation from the
previously observed trend in employee satisfaction levels. Several conclusions can be drawn to
elucidate these findings:
• Complexity of Organizational Structures: Mature companies typically exhibit more
complex and, at times, less adaptable organizational structures. In contrast, start-up
companies, still in their early stages, often begin with minimal essential units, processes,
or segments, with a readiness for future modifications.
• Resistance to Change in Mature Companies: While this observation is yet to be
empirically confirmed, it is noteworthy that a significant portion of employees in mature
companies may exhibit limited interest in organizational changes, except in cases
concerning managerial positions. This lack of interest can influence the survey results.
It is crucial to emphasize that these results do not conclusively indicate lower employee
satisfaction levels in mature companies. Instead, they reflect the impact of differing
organizational structures and the varying degrees of employee interest in organizational
changes.

6.5.4 Comparative analysis of the satisfaction from the benefits

In this section, one might expect employees in mature companies to exhibit higher
satisfaction levels with their income and various tangible and intangible rewards. Surprisingly,
the results reveal that start-up companies boast a higher degree of overall employee
satisfaction, although this difference diminishes in favour of mature companies within the mid-
range of the employee satisfaction spectrum.
Several key factors contribute to these results:

• Perception of Affordability: Employees in mature companies often assume that their


organizations can provide a superior system of material and intangible rewards, leading
to higher expectations.
• Psychological Commitment in Start-ups: In start-up companies, employees tend to
derive satisfaction from their material and intangible rewards due to their psychological
commitment to a promising future. This outlook is prevalent not only among employees
but also among the company's owners.
• Integral Role in Start-ups: Employees in start-ups often join at the company's inception,
positioning themselves as integral to its foundation. This unique connection fosters
intrinsic satisfaction without the need for significant intervention from the company's
organizational structure.
It is imperative to underscore that these differences should not be inherently viewed as
negative for mature companies, except in cases where the negative results, such as a high
percentage of dissatisfaction, are pronounced. In such instances, regardless of whether it is a
mature or start-up company, these outcomes should be regarded as critical warnings requiring
serious attention and remedial action.
Because part of this paper deals with the difference in the degree of satisfaction and the
ratio between the phase and the satisfaction, it is necessary to give a comparative review of
certain parameters, i.e. results in the form of comparative reviews at the general level of both
companies/groups of companies. The general concept of comparing results is intended to
provide an overview of which groups of quantitative representation of the level of satisfaction
are the most prominent in one or the other category of companies.
From the graphical overview, it can be observed that there is a drastic difference in the
group of completely satisfied employees as well as in the group of dissatisfied employees. The
high percentage of employee satisfaction is expressed in start-up companies as well as the low
percentage of dissatisfaction. The middle segment of a little, to a certain extent normally
satisfied, according to the percentage amount is the same as in the results of the mature
company. On the other hand, the results of the mature company are the opposite of the results
of the start-up companies.
7. Conclusion

In this comprehensive research project, we have delved into the intricate relationship
between the organization's current stage and job satisfaction among employees. Our research
journey began with a critical examination of the impact of organizational life cycle stages on the
well-being and contentment of individuals in the workplace. Through a concept of quantitative
surveys, we sought to unravel the complex dynamics at play, addressing not only the
overarching research question but also the auxiliary hypotheses that guided our investigation.
Our findings have shed light on the significant role that the organization's current stage
plays in shaping job satisfaction levels. As anticipated, our research confirms that job
satisfaction is notably higher in the initial stages of an organization's life cycle. The emergence,
growth, and establishment phases provide fertile ground for employees to experience a sense
of novelty, rapid development, and a greater degree of autonomy, all of which contribute to
heightened job satisfaction. However, we also noted a decline in job satisfaction in the later
stages, highlighting potential challenges in maintaining employee contentment amid stability
and maturity.
Furthermore, our research uncovered the nuanced ways in which employees perceive
the influence of the organization's current stage on their career trajectories. While the earlier
stages offer opportunities for rapid career advancement, the later stages are associated with
stability but potentially slower progression. This insight underscores the importance of aligning
individual career goals with organizational life cycle stages.
In conclusion, our research contributes to the growing body of knowledge on the
interplay between organizational development and employee satisfaction. It provides empirical
evidence that informs organizational leaders and managers about the critical role they play in
fostering a positive work environment at various stages of an organization's life cycle. As
organizations strive for sustained success and adaptability, understanding the nuances of job
satisfaction in the organization's current stage is indispensable. We hope that the insights
gained from this study will guide decision-makers in optimizing employee well-being and, by
extension, enhancing organizational performance.
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