Impact of Job Satisfaction

on Employee Performance:
A Study with Reference to
Biblical Management Principles
Diwakar Prahaladaiah*, Udayakumar H M** and Mukesh Soni***

The paper examines the relationship between job satisfaction and employee
performance. The study adopted qualitative and quantitative research methods
based on a survey conducted among the employees of IT MNCs (Multinational
Corporations) in Bengaluru. Through systematic literature review and textual
analysis, the study explores the principles of Human Resource Management
(HRM) in an organization and employee job satisfaction and performance. It
found that there is an impact of job satisfaction on employee performance and
that a significant correlation exists. The study also cites strategies from the
Bible in this regard. The analysis brings out the importance of holistic approach
in the organizations for its growth and development.

Introduction
Human Resource Management (HRM) or people management is an essential part
of any employer or organization. “Human Resource Management (HRM) is important
in organizations, which facilitates the effective use of people to achieve
organizational and individual goals” (Hashim, 2009). Employees’ motivation,
commitment, resolving conflicts, performance evaluation, employee rewards, and
employee retention are all critical areas addressed by HRM. Essentially, people
make an organization. If good people are lost, the organization is lost. The global
trend shows that a microbusiness organization can have employees, consultants,
and other stakeholders engaging in spreading the business across several
countries. The motivation of the employees and commitment towards the
organization are correlated with the rewards and benefits from the employer and

* Assistant Professor, Department of Humanities, Ramaiah Institute of Technology, M S R

Nagar, MSRIT Post, Bengaluru, Karnataka, India; and is the corresponding author.
E-mail: diwakar.p@msrit.edu
** Assistant Professor, Department of Humanities, Ramaiah Institute of Technology, M S
R Nagar, MSRIT Post, Bengaluru, Karnataka, India. E-mail: udaykumar@msrit.edu
*** Assistant Professor, Dayananda Sagar College of Arts, Science and Commerce,
Bengaluru, Karnataka, India. E-mail: mukeshenglish@gmail.com

Impact
© 2023ofIUP.
JobAll
Satisfaction on Employee Performance: A Study with Reference to
Rights Reserved. 49
Biblical Management Principles
the employer retaining the employees; all these interventions play a vital role for
an organization and HR department. The digital era has manifested the latest
trends where the current workforce can work anywhere and from any part of the
world. These developments caution HRM to be more flexible at the micro and macro
level. “Human resources play a vital role in any organization. It, thus, requires the
considerable attention of the management so that employees can work up to their
full potential” (Ahmad and Schroeder, 2003). These add to the complex nature of
HRM and its functions.

Literature Review
Employee job performance has always been an important concern for managers of
organizations (Kelidbari et al., 2011). Similarly, employee performance is key edifice
of an organization therefore, aspects that place the grounds for high performance
must be scrutinized critically by the organizations for them to succeed (Abbas and
Yaqoob, 2009). If the employer fails, it causes poor performance, employee
frustration and job dissatisfaction and increases the decline of the organization
(Steers and Porter, 1983). Employee job performance has always been a major
challenge in organizational management, and adopting effective ways to motivate
employees to achieve and deliver higher job performance as well as increase the
organizational competitiveness is the main objective of every business organization
(Lee and Wu, 2011). Participation of employees satisfies the employees, it fills the
self-actualization need, and it enhances the productivity of the employees (Syed
and Yan, 2012). According to Mowday et al. (2013), most employees of today have
a high degree of job dissatisfaction, which creates undesirable attitudes that
decrease their performance and affect workplace as well.

The current study aims to answer the following questions: How to develop HRM
strategic principles? How well do such strategies work in practice? What is the
relationship between job satisfaction and employee performance? Every company
sets goals and achieves them. For HR department, it is essential to retain an effective
and efficient workforce. HRM must pay attention to an organization’s human
resources to nurture them to perform better for the organization. HRM needs to
ensure that the employees are satisfied in their job for effective and efficient
performance. The current study explores how job satisfaction among employees
improves performance in the organization. Further, the study also cites strategies
from the Bible for enhancing job satisfaction which leads to high performance.

“Human resource practices include determining human needs, recruitment and

selection, training, rewarding, appraising and a labor attending to labor relations,
safety and health and fairness concerns” (Dessler, 2007; and DeCieri et al., 2008).
Alagaraja and Shuck (2015) aimed to discover the prevailing viewpoints of
organizational configuration and employee engagement that allows one to
understand the reasons related to improving individual overall performance. They
argued that employee overall performance can be more desirable through training

50 The IUP Journal of Management Research, Vol. 22, No. 2, 2023

and improvement. Thomas and Feldman (2010) followed measures of worker
performance as core assignment overall performance, which incorporates in-function
performance, protection overall performance, and creativity observed via citizenship
overall performance.

Every company sets goals and achieves them. For HR department, it is

essential to retain an effective and efficient workforce. HRM must pay attention
to an organization’s human resources to nurture them to perform better for the
organization. HRM needs ensure that the employees are satisfied in their job
for effective and efficient performance. The current study explores how job
satisfaction among employees improves performance in the organization. Further,
the study also cites strategies from the Bible for enhancing job satisfaction
which leads to high performance. “Human resource practices include determining
human needs, recruitment and selection, training, rewarding, safety and health
and fairness concerns” (Dessler, 2007; and DeCieri et al., 2008). Table 1 illustrates
of the economic Survey conducted by Survey of India on the correlation between
employee performance and job satisfaction, which is one of the important
variables of the current research.

Table 1: Correlation Between Employee Performance and Job Satisfaction

Correlation Between Employees

Work Performance and Job Coefficient of
Correlation
Satisfaction Variables Determination

Promotion 0.5704 0.3254

Pay 0.6147 0.3780
Work Itself 0.4416 0.1950
Working Condition 0.7355 0.5410

Source: Economic Survey, Survey of India (2016-17)

Objective
• To examine employees’ job satisfaction in MNCs in Bengaluru

• To examine the relationship between job satisfaction and high

performance of employees in Bengaluru MNCs.

• To study the impact of job satisfaction on employee performance.

• To explore the management principles for HRM available in the Bible.

Hypotheses
H01: There is no significant relationship between job satisfaction and employee
performance.

Impact of Job Satisfaction on Employee Performance: A Study with Reference to 51

Biblical Management Principles
 H02: There is no impact of job satisfaction on employee performance.

Data and Methodology

The study followed a mixed research method, that is, both qualitative and
quantitative methods were used for data collection and analyses. A survey method
was adopted for quantitative study.

A questionnaire (see Appendix) based on Inuwa Mohammed (2016) was sent

to select Bengaluru MNC employees for the survey. The questionnaire was used
to measure the variables —job satisfaction and employee performance and also
the impact of job satisfaction on employee performance. The questionnaire was
based on a five-point Likert scale that ranged from Strongly Agree (SA) to Strongly
Disagree (SD). The questionnaire was sent via Google Forms to MNC (IT companies)
employees in Bengaluru city, in January 2022. The researchers selected a random
sampling technique to send the questionnaire and to collect data from MNC
employees in Bengaluru. The respondents were working in different organizations
and working at various job profiles in Bengaluru MNCs. The sample size (n = 107)
was considered by adopting the Krejcie Morgan’s table for calculation after data
collection.

Qualitative method and textual analysis method were adopted in the current
research to explore the principles from the Bible for HRM in an organization, with
regard to empowering employees for high performance and job satisfaction. The
aim of selecting textual analysis was to examine the occurrence of themes, phrases
and motifs in the Bible. HRM is the foundation for a moral and ethical organizational
culture. It is essential to build a humane and good work environment. The Bible
provides the framework of ‘Servant leadership’ style, a much-needed approach in
today’s world. The validity and trustworthiness of the study was established by
adopting Miles and Hubeman’s formula, and it is 0.88. Explicit conceptual analysis
was adopted and the texts were classified into main theme; human resource
management and sub-themes; human empowerment, compensation, development,
and performance were connectors of meanings running through the text. The reflected
and interpreted texts were analyzed through the themes and sub-themes.
Figure 1 illustrates the research procedure used to execute the current study.

Results and Discussion

The value of Cronbach’s alpha for the dimensions Job Satisfaction and Employee
Performance is more than 0.80 (Table 2), which indicates the consistency of the
instrument is good.

Table 3 presents the descriptive statistics of dimensions of job satisfaction

and employee performance. The mean and standard deviation of the dimension
job satisfaction are 3.19 and 0.95, whereas for employee performance, they are

52 The IUP Journal of Management Research, Vol. 22, No. 2, 2023

 Figure 1: Sage Method of Survey for Data Discovery and Practices
in Research, a Mixed-Method Approach

Systematic Data Processing Data Analysis

Review

Questionnaire
Adaptation Data Collection Textual Analysis
of Scriptures

Survey Determining the Data Reporting

Sample Size and Interpreting

Table 2: Reliability of Dimensions — Job Satisfaction

and Employee Performance

S. No. Dimension Cronbach Alpha

1. Job Satisfaction 0.908
2. Employee Performance 0.891

3.80 and 0.82, respectively. The skewness for the job satisfaction dimension is
–0.401, which indicates that the distribution is approximately skewed, whereas
the dimension of employee performance is highly skewed as the skewness value
is less than –1.

Hypotheses Testing
H01: There is no significant relationship between job satisfaction and employee
performance.

From Table 4, it is evident that Pearson’s Coefficient of Correlation is 0.477,

which indicates that there is a positive correlation between job satisfaction and
employee performance. The table also indicates that correlation is significant at
1% level of significance. Therefore, H01 stands rejected.

Impact of Job Satisfaction on Employee Performance: A Study with Reference to 53

Biblical Management Principles
 Table 3: Descriptive Statistics of Dimensions — Job Satisfaction
and Employee Performance

Job Satisfaction Employee Performance

Mean 3.1944 3.8056
Standard Deviation 0.95172 0.82551
Skewness –0.401 –01.044
Kurtosis 0.229 2.285

Table 4: Correlation Coefficient Between Job Satisfaction

and Employee Performance

Job Satisfaction Employee Performance

Job Satisfaction Pearson Correlation 1 0.477**
Sig. (2-tailed) 0.000
Employee Pearson Correlation 0.477** 1
Performance Sig. (tailed) 0.000

H02: There is no impact of job satisfaction on employee performance

The R2 value indicates how much of the total variation in the dependent variable
Employee Performance can be explained by the independent variable Job
Satisfaction. In this case, 22% can be explained (Table 5).

Table 5: Model Summary

Std. Error
Model R R2 Adjusted R2 of the Durbin-Watson
Estimate

1 0.477 0.227 0.220 0.72904 2.330

Table 6 predicts employee performance from Job Satisfaction. From the table,
the determinants of Job Satisfaction contribute statistically to Employee performance
as the p-value is less than 0.05.

Table 6: ANOVA of Employee Performance

Model Sum of Squares df Mean Square F Sig.

Regression 16.578 1 16.578 31.191 0.01

Residual 56.339 106 0.531 – –
Total 72.917 107 – –

54 The IUP Journal of Management Research, Vol. 22, No. 2, 2023

 The t-test finds that both intercept variables are highly significant (p< 0.05),
which shows that Job Satisfaction has an impact on Employee Performance

Job satisfaction which is directly correlated with employee performance in the

organization, fair pay, on-time salary payment, non-exploiting management,
ret enti on a nd re view of perfo rmance, empow ering pe ople, sup port ive
management, are some of the management principles which were discussed
during the interview with the respondents. Further, the discussion concluded
that job satisfaction and employee performance are correlated with pay
satisfaction. The respondents expressed their concern that their pay and rewards
are relatively low, which is affecting their performance.

Table 6, indicates the variance sum of 72.9 and degrees of freedom value of 107
with significant value of 0.01 which indicates that the hypothesis testing is statistically
significant and there is also positive correlation of satisfaction and performance.

Table 7 indicates coefficient value is 0.477 and significant value is 0.01 which is
statistically significant.

Table 7: Coefficients

Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
B Std. Error Beta

(Constant) 2.484 0.247 – 10.069 0.01

Job Satisfaction 0.414 0.074 0.477 5.585 0.01

The study also explores and analyzes some of the management principles for
HRM to adopt, and it also brings out a few principles from the Bible for effective
management of employees. The management principles derived based on content
analysis and exploratory study are listed below.

Content Analysis
Management Principles from the Bible Empowering Employees
for Job Satisfaction and High Performance
Pay Fairly – Based on the Contribution of the Employees to the
Organization
“Masters, give your bondservants what is just and good” (Colossians 4:1). The
employees should be paid fairly. The paper proposes that the employees must be
paid for their actual contribution to the organization. It also states that the number
of years does not matter in many situations, but it would be fair if the employer
considers the present contribution of the employees to the organization. The
employees’ present value orientation towards the organization, leadership qualities,

Impact of Job Satisfaction on Employee Performance: A Study with Reference to 55

Biblical Management Principles
skill sets, problem-solving capability, and decision-making abilities are the key
components to bind the employer and employee together. The ability of the
employees to be supportive to the vision, mission and culture of the organization
and the ability to discharge new tasks and meet challenges in the organization
are the vital contributions, for which they need to be paid fairly and justly.
“Performance appraisal is used by organizations to evaluate employees’ efforts to
reward them for the actions” (Collins and Clark, 2003).

Pay Salary on Time

“Do not hold back the wages of someone you have hired, not even for one night”
(Leviticus 19:13, GNB). Many organizations pay remuneration/salary on a monthly
or a weekly basis, in some exceptional cases fortnightly. But the companies must
ensure that they pay on time because an employee’s family is dependent on the
salary. “If employees are not paid on time, they will cry out against you to the Lord,
and the employer will be guilty of sin” (Deuteronomy 24:14-15, GNB).

Never Exploit the Poor and the Oppressed

“Never exploit an oppressed or a hired servant who is poor and needy.”
(Deuteronomy 24:14-15, GNB). The employer must not exploit the poor and the
oppressed. Moreover, employers must not hold back the employees’ salaries.

Hire Right, Retain, Review

“An employer who hires any fool that comes along, hurting everybody concerned”
(Proverbs 26:10, GNB). Organizations must recruit carefully because the people
who are recruited have an impact on organizational performance. “Human capital,
at times, is irreplaceable” (Awan and Sarfraz, 2013). An effective recruitment process
involves recruiting the right candidate, eliminating undeserving candidates, and
retaining the best employees which is the vital role played by HRM in an
organization. “Human Resource Management (HRM) is a vital function performed in
organizations that facilitates the effective use of people to achieve organizational
and individual goals” (Hashim, 2009).

Empower People for High Performance

“Go to the ant, you sluggard! Consider her ways and be wise, which, having no
captain, overseer or ruler, provides her supplies in the summer, and gathers her
food for the harvest” (Proverbs 6:6-8). The ants are the best example of
spontaneous teamwork and collective collaboration. Thousands of ants perform a
task together without direction from a supervisor. There is nobody to instruct the
ants what they need to do, and yet they perform at their best while collecting
food, constructing a nest, etc. These examples show us the power of spontaneous
teamwork, and they also teach us self-empowerment. “Locusts all keep marching
straight ahead and do not change direction or get in each other’s way. They swarm
through defenses, and nothing can stop them” (Joel 2:6-8, GNB). Modern
management is expected to be liberal without imposing much restrictions on the

56 The IUP Journal of Management Research, Vol. 22, No. 2, 2023

employees and controlling them. Employees will be more committed to the
organization as a result of teamwork and decentralization of decision making;
with active participation, employees will feel like a part of the organization, and
this will have a positive impact on organizational performance (Tata and Prasad,
2004). The unwanted interference from the management must be suppressed to
empower the employees in the organization. Organizational performance is the
overall growth of an organization (Drucker, 2002). According to Maslow’s Hierarchy
of Needs Theory, to ensure self-actualization, organizations need to provide training,
provide challenges and encourage creativity (Ramlall, 2004).

Sweetness and Supportiveness Increase Learning

“The wise in heart will be called prudent, and sweetness of lips increases learning”
(Proverbs 16:21,24). Learning takes place in the most conducive and supportive
environment. The organization must be more inclined towards skill development
because it is essential for organizational development. As Maslow stated,
motivation plays a vital role if management encourages their employees. The
organization must setup a healthy environment to compare, criticize or question
each other’s work; this would enhance continuous learning. “Smart people know
how to hold their tongue; their grandeur is to forgive and forget” (Proverbs 19:11,
MSG). The employer’s support and encouragement would motivate employees to
explore, discover, experiment and think out of the box for organizational
development.

One Standard for All, No Partiality

“To show partiality is not good, because for a piece of bread a man will transgress”
(Proverbs 28:21). A healthy environment must be supplemented with unbiased or
impartial environment. “Stop judging by external standards, and judge by true
standards” (John 7:24). If employees are treated without partiality by the
management, there would be a definite assurance to employees which would lead
to wellbeing of the employees and the organization.

Keep Dispute and Gossip Out of the Work Environment

“A quarrelsome person in a dispute is like kerosene thrown on a fire” (Proverbs
26:21, MSG). If an employee is found to be quarrelsome, it would be better to
work separately with him/her. “When it is run out of wood, the fire goes out;
when gossip ends, the quarrel dies down” (Proverbs 26:20, MSG). Any work
environment must be devoid of gossip for organizational performance. “Improving
performance is an important goal of modern management. The quality of the
workforce is a deciding factor behind organizations’ success because employee
performance has proven to have a significantly positive effect on their
performance” (Collis and Montgomery, 1995, pp. 118-128). So, organizations need
to keep a check on what is happening and early intervention of HRM would solve
the problem.

Impact of Job Satisfaction on Employee Performance: A Study with Reference to 57

Biblical Management Principles
Summary
Employees’ performance has always been a challenge in organizations and adopting
suitable strategies to motivate employees to perform and deliver greater
performance as well as increase organizational competitiveness is the main
objective of every business organization (Lee and Wu, 2011). The study highlighted
that job satisfaction is an important investment for any business. Moreover, studies
also revealed that employee satisfaction is one of the important predictors of
organization’s performance, which means employee satisfaction leads to company’s
improved performance. The findings highlight the significant impact of job satisfaction
and employee performance. It is important to note that the overall efficiency and
accomplishment of the organizations depend on the effective and efficient
performance of employees (Green, 2016) and that better performance depends
on employees’ job satisfaction. Further, the study present management principles
from the Bible that would be of help to human resource managers to pursue a
framework of faith-based management. Similar research by Roberts et al. (2018)
investigated a balance between adopting Scriptures and the vision of the
organization; the study further highlighted the integrity of faith-based
organizations.

Conclusion
The study highlighted the strategic principles from the Scriptures, which Human
Resource Management (HRM) in an organization can use as solutions to
empower employees for high performance and job satisfaction. The findings
further stress the role of HRM in developing a conducive work environment for
employees. @

References
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Engagement Linkages and Impact on Individual Performance: A Conceptual
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Biblical Management Principles
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60 The IUP Journal of Management Research, Vol. 22, No. 2, 2023

 Appendix
Questionnaire

The statement in this section describes job satisfaction. Please tick () any option
among the listed options to indicate your preferred answer to the questions.

Interpretations of the scale. Strongly Disagree (SD); Disagree (D); Neutral (N);
Agree (A) and Strongly Agree (SA).

S.
SD D N A SA
No.

1. Generally, I am satisfied with my job.

2. I find my job very interesting.

3. My current job meets my expectations.

4. My current job is pleasant.

5. I am satisfied with my salary and other incentives.

6. I am satisfied with my current job position.

The statement in this section describes employee performance. Please tick ()
any option among the listed options to indicate your preferred answer to the
question.

Interpretations of the scale. Strongly Disagree (SD); Disagree (D); Neutral (N);
Agree (A); and Strongly Agree (SA).

S.
SD D N A SA
No.

1. I understand the criteria of performance review of

my organization.

2. I understand my job and how to carry it out.

3. I am able to resolve unexpected schedules on time.

4. I maintain good record of attendance in this

organization.

5. I can carry out assigned duties effectively and

efficiently.

6. I am very conversant with the standard operating

procedure of my job.

Reference # 02J-2023-04-03-01

Impact of Job Satisfaction on Employee Performance: A Study with Reference to 61

Biblical Management Principles
Reproduced with permission of copyright owner. Further reproduction
prohibited without permission.