Pokharel
Pokharel
PERFORMANCE
A Seminar paper
By
Sandhya Tripathi
Third Semester
Submitted to
Faculty of Management
Tribhuvan University
Kathmandu
March 3, 2024
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Table of Contents
Cover page ..................................................................................................................... 1
Table of contents……………………………………………………………………….2
Abstract .......................................................................................................................... 3
Introduction .................................................................................................................... 4
Objectives................................................................................................................... 6
Methods ...................................................................................................................... 6
Conclusion ................................................................................................................... 21
Summary .................................................................................................................. 21
Conclusion ............................................................................................................... 21
References .................................................................................................................... 23
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Abstract
Job happiness is a critical component of an organization's performance and survival,
and this paper explores the complicated idea of job satisfaction along with the wide-
ranging ramifications of job satisfaction for both individuals and the business they work
for. The degree to which employees are content with their jobs and workplaces is
measured by job satisfaction. This study aims to examine the impacts of job satisfaction
on employee performance. Furthermore, this paper aimed to determine the factors of
job satisfaction and how each of them affect employee performance. In this regard, the
paper reviewed various articles related to job satisfaction, factors of job satisfaction and
employee performance. The articles were looked up in the internet and only few related
articles were reviewed. Likewise, this paper is also based on the Porter-Lawler
Expectancy Theory and Maslow’s theory of hierarchy of needs which were reviewed
from the book that was searched on the internet. The seminar paper observed the usage
of Quantitative methods in majority of the articles reviewed such as descriptive
statistical tool, correlation analysis to analyze the relationship between the variables
and regression analysis to analyze the effect of independent variables (pay and
promotion, Nature of job, job security, working environment, interpersonal relation,
challenging task, decision making authority etc.) on dependent variable (employee
performance). And the seminar paper found that there is significant positive
relationship between job satisfaction and employee performance.
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Introduction
Background of the Paper
Employee performance is one of the main factors that affect the condition of the
company or agency. Rosita & Yuniati (2016), mentioned that performance cannot be
separated from the company. Fulfilling employee rights by providing facilities,
implementing rules and regulations, and creating comfortable situations and conditions
can affect employee performance. Therefore, the fulfillment of human resource
satisfaction in a company becomes a benchmark for the company’s progress. This
statement is reinforced by the opinion expressed by Rosita & Yuniati (2016) namely
that the success in achieving the company’s vision and mission is indicated by the
quality of human resources in the company. Therefore, efforts to improve employee
performance are both a task and a challenge for company management. Increased
employee performance can be influenced by one factor in human resource management,
job satisfaction.
Job satisfaction and organizational commitment are indicators that can improve
employee performance in the company. The success of an organization is seen by how
much employees do their jobs well and follow organizational goals. Therefore, before
the company has good employee performance, the company can increase employee job
satisfaction. Job satisfaction can be defined as a sense of employee achievements and
successes. It is generally believed that it is directly related to productivity and work
performance, as well as to personal well-being. Job satisfaction means doing the work
one likes, doing it well and being rewarded for own efforts (Aziri, 2011). People can
also have different approach to various aspects of their work, such as the type of work
they are doing, colleagues, superiors or subordinates and their salary (George & Jones,
2008).
Different motivation style and leadership style can work in different way on every
employee, resulting in increased work performance and job satisfaction. Therefore, Job
satisfaction is an essential element motivating employees and encouraging them to
achieve better results (Raziq and Maulabakhsh, 2015). Ostroff (1992) says that
employee satisfaction is of great importance not only for employees but also for the
entire organization. Because satisfied employees are usually happy and motivated to
work, consequently the organization can get amazing results from their work, from the
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other side, those dissatisfied employees will not be encouraged and will be disturbed
by their work routine, they will run away from responsibility and even avoid work (sick
leave, days off etc.) (Judge , Thoresen, Bono, & Patton, 2001)
According to Brenninger (Brenninger, 2015) for getting satisfied employees and good
results supervisors have to adapt their leadership style in a way that employees get more
involved in the decision making processes to get a higher level of commitment for the
enterprise's goals. Supervisors have to involve as many employees as possible. They
have to support individual and team effort and share information through the company
for motivating employees. Good supervisors do not work only vertically they also work
horizontally, which means they have to manage cross-functional processes, projects,
time and resources.
Employee efficiency and work performance have always been an important issue for
organization managers (Kelidbari, Dizgah, & Yusefi, 2011). Employees who are very
committed to their organization ensure a high level of the services' or products' quality,
maintenance, productivity and generate higher profits. Employees have more than job
satisfaction, are happy that they can serve and are promoters of products and brands.
There is evidence that employee involvement increases work performance and overall
productivity, creates a better and more productive work environment, reduces
employee absence and work leaving (Bin Shmailan, 2016).
It has been claimed that a satisfied employee tend to have better mental and physical
health and learn new job- related tasks more quickly. Practicing manager and OB
researcher would agree that, job satisfaction is important to an organization. On the
other hand, when job satisfaction is low, there seems to be negative effects on the
organization. So, if only from the stand point of viewing job satisfaction as a minimum
requirement or point of departure, it is of value to the organization’s overall health and
effectiveness and is deserving of study and application in the field of OB. Several job
element contribute to job satisfaction .The most important amongst them are wage
structure, nature of work, promotion chances, quality of superior, work group and
working conditions.
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Methods
This seminar paper is based on the review of various articles related to job satisfaction
and its impact in employee performance, factors affecting job satisfaction etc. The
Journal articles were looked up in the internet and only various articles were reviewed
which is shown briefly in Table 1. Furthermore, the seminar paper also reviewed some
book for theories like Porter-Lawler Expectancy Theory and Mashlow’s Theory of
hierarchy of needs.
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Table 1
Description and analysis include the current knowledge on the area of seminar paper
including substantive findings, as well as theoretical and methodological contributions
to a particular topic. It states the findings from previous researchers hence enabling a
researcher to understand the theoretical and empirical review. It consists of theoretical
and empirical review. It is useful in setting the purpose of the study and provides
guidelines for determining the variables under study. It enables a researcher to find out
about the existing bodies of knowledge on the topic of the seminar paper.
Theoretical Review
The theories that are reviewed in this study are Maslow’s Theory of Hierarchy of Needs
and Porter-Lawler Expectancy Model.
Having chosen the instrumentality approach, porter and Lawler set out to test an initial
model aimed at describing behavior in the industrial setting. This model appears in
figure 1. The definitions of the various components in Figure 1 are as follow;
Value of Reward. The element characterizes the valence, or appeal, of different results
to the person. As an illustration, although one person might value pay more than
friendly coworkers, another person might value friendly coworkers more than pay. The
feedback loop from "satisfaction" to "value of reward" suggests at least one method of
how outcomes acquire preferential value, or valance, even though the model does not
explicitly state this process. Reward valence is derived from its capacity to "satisfy."
The drive theorists would take this stance.
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Perceived
Value of Abilities Equitable
Reward and Traits Rewards
Intrinsic
Rewards
Performance
(Accomplishment) Satisfaction
Effort
Extrinsic
Rewards
Perceived Role
effort-Reward perceptions
probability
Intrinsic Reward. Intrinsic rewards are the rewards that satisfy higher order needs (in
Maslow sense) and are administrated by the individual to himself rather than by some
external agent.
Self-
fulfillment
needs
Self
Actua-
lization
Physiological Needs:
Food, Water, Warmth, Rest
This five-stage model can be divided into deficiency needs and growth needs. The first
four levels are often referred to as deficiency needs (D-needs), and the top level is
known as growth or being needs (B-needs). Deficiency needs arise due to deprivation
and are said to motivate people when they are unmet. Also, the motivation to fulfill
such needs will become stronger the longer the duration they are denied. For example,
the longer a person goes without food, the morehungry they will become. Maslow
(1943) initially stated that individuals must satisfy lower level deficit needs before
progressing on to meet higher level growth needs. However, he later clarified that
satisfaction of a needs is not an “all-or-none” phenomenon, admitting that his earlier
statements may have given “the false impression that a need must be satisfied 100
percent before the next need emerges”. The theoretical framework of deficiency needs
and growth needs is exhibited in figure 3.
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Motivation Self
increases as Actua- Being (Growth)
needs are met ization needs
Safety needs
Physiological needs:
Physiological needs. - These are biological requirements for Human survival, e.g. air,
food, drink, shelter, clothing, warmth, sex, sleep.
If these needs are not satisfied the human body cannot function optimally. Maslow
considered physiological needs the most important as all the other needs become
secondary until these needs are met.
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Safety needs. - Protection from elements, security, order, law, stability, freedom from
fear.
Love and belongingness needs. - After physiological and safety needs have been
fulfilled, the third level of human needs is social and involves feelings of belongingness.
The need for interpersonal relationships motivates behavior. Examples include
friendship, intimacy, trust, and acceptance, receiving and giving affection and love.
Affiliating, being part of a group (family, friends, work).
Esteem needs. - which Maslow classified into two categories: (i) esteem for oneself
(dignity, achievement, mastery, independence) and (ii) the desire for reputation or
respect from others (e.g., status, prestige).
Self-actualization needs. - realizing personal potential, self-fulfillment, seeking
personal growth and peak experiences. A desire “to become everything one is capable
of becoming”.
Empirical Review
This study is carried out to demonstrate the impact of job satisfaction on employee
performance. The aim of this paper is to look at various determinants the job satisfaction
and their impact on the performance of employees. All these studies supported that
employee’s performance depends upon various factors such as pay, promotion, working
environment, Nature of the job, interpersonal relation, etc. The study has reviewed some
of the articles on related subject matter. The summary of the major articles on this
subject matter is presented in the Table 1.
Pokharel and Sah (2022), conducted study on impact of job satisfaction on performance
of employees working in Nepalese Life Insurance companies. Based on factors such as
gender, age, group, educational attainment and organizational position the research
examines Employees satisfaction levels and how they affect performance. The data
were collected by primary sources from 240 employees from all life insurance
companies. The majorities of employees were male (69.71%) highly satisfied and the
least females were satisfied. Employees from age group 35-39 were highly satisfied
while employees of age group 18-24 and 40 above were least satisfied. Regarding
qualification, most respondents were bachelor's degree holders, (60.42%) were
moderately satisfied, and the least was from intermediate and below (8.33%) were also
moderately satisfied. However, master's degree holders were highly satisfied.
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The descriptive statistics used to sum up the data produced the result that nearly all
respondents agreed with the job satisfaction components and job performance. All the
independent constructs being positively significant at 1% level. The working
environment is highly correlated with interpersonal relationships and pay. However, it
is moderately associated with employee performance. Similarly, interpersonal relations
are highly correlated with pay factors and moderately correlated with employee job
performance. It also reported that payroll significantly impacts performance rather than
other factors. The payroll system influences employees to increase their performance.
The impact of independent variable on the dependent variable were tested using
regression analysis. The regression coefficient of working environment was 0.096
indicating that 1% change in working environment leads to 9.6% positive change in
employee performance. The regression coefficient of interpersonal relationships and
payroll were 0.286 and 0.396 respectively, indicating 1% change in a relationship leads
to 28.6% change in employee performance and 1% increase in payroll leads to
39.6%positive change in employee performance in Nepalese life insurance sectors. So,
the study’s result explained a significant relationship between job satisfaction
constructs and employee performance.
Shrisagar and Rajguru (2023), concluded that the organization prioritizing the job
satisfaction leads to lower turnover, absenteeism, and higher level of engagement and
innovation which really boosts how well the company does. The study found that area
such as grievance handling, promoting policy, pay and participation in decision making
needs improvement which can be helpful for management to figure out the problems
and solutions to the problems. The study used two methods to get information. The first
method, primary data collection method used questionnaires to gather answers from
people. The second method, secondary data collection method referring data collected
by individuals or organizations other than the user. Data for this study is collected
through various sources such as journals, websites and Newspapers.
According to the response collected, out of the 102 employees surveyed, 28.4% said
that having challenging tasks affect their work performance. Job safety and security
was chosen by 15.7% respondents, while 21.6% picked the work environment. The
highest selected variable (i.e. bonuses, raises, or incentives) was picked by 52% of
respondents. Decision making authority was selected by 26.5%, equipment and supplies
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by 10.8% and promotion by 15.7% as the key factors influencing their performance at
work. The job satisfaction study conducted in this research served as a powerful
diagnostic tool for identifying employee issues and improving communication. The
research framework of the study is exhibited as Table 2.
Table 2: Research Framework of Shrisagar and Rajguru
Choices % of Respondents
Job Safety and Security 15.7%
Work Environment 21.6%
Bonuses/ Raises/ Incentives 52%
Challenging Assignment 28.4%
Decision Making Authority 26.5%
Equipment and Supplies 10.8%
Promotion 15.7%
Inayat and Khan (2021), conducted study on impact of job satisfaction on employee
performance in Peshwar, Pakistan. It is found that satisfied employee performed better
than the dissatisfied employees. They are comparatively more productive and
innovative. Employees from three private organizations (i.e. Hospitals, Banks, and
universities) were selected as sample for conducting the study. The sample included
180 employee (60 employees each from three different organizations) which were
selected on the basis of random sampling technique. Based on gender, qualifications,
family, setup, marital status and one’s profession, the research examines employee
satisfaction level and how they affect their performance. Minnesota Satisfaction
Questionnaires and performance evaluation form were used as measuring instruments
of employee satisfaction level. Minnesota Satisfaction Questionnaires was
administered on the employees while performance evaluation form was administered
on their respective heads/ administrators of organization.
The descriptive statistics analysis used to sum up the data produced the result that job
satisfaction has no significant association with gender, qualification, and family system
as well as marital status. But it significantly correlated with what job the person does.
The study showed that medical doctors are happier at work compared to teachers and
bankers. Also, the study found that satisfied employees perform better than unsatisfied
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ones. This suggests that to boost how well employees do their job, like the quality of
their work, productivity and leadership skills, companie should focus on making sure
their employees are content with their job.
Fadlallh and Wahid (2015), investigated on the factors of job satisfaction affecting
employees performance in in the faculty of science and humanity studies /Aflaj branch.
The Research was conducted on the basis of job satisfaction and employee's
performance. Research determined the impact of job satisfaction factors on employee's
performance. The independent variable of the study is job satisfaction factors (working
conditions – pay and promotion potential – work relationships) and the employee's
performance is a dependent variable. The Research framework of Dependent and
independent variable is exhibited as figure 4.
Dependent Variable Independent Variable
Employee’ performance Job Satisfaction
Rodrigo, Pathirana, & Kuruppu (2022), conducted a research investigating the impact
of job satisfaction on employee performance. The company selected for this study is a
food processing organization which was started with two main brands and now it has
expanded the business in to international context where this brands became popular in
South Asia. The study population consisted of 510 employees and the sample was
selected through the simple random sampling where the sample size for this study
consisted of 66 professionals. Primary data was gathered from the chosen organization
using a survey approach. Furthermore, the researchers employed quantitative methods
to reach their conclusion, and as such, their main tool for gathering data was a
questionnaire with a five-point Likert scale to sum the values of each statement and to
produce a score for each individual respondent.
Regression analysis and correlation analysis were used in this study to measure the
impact of job satisfaction on employee performance and to measure the relationships
between the variables. The results and interpretations were done using IBM SPSS
version 22's Statistical Product and Service Solutions. It was found that there is a
positive correlation between employee performance and pay and benefits, based on
correlation analysis. Additionally, training and working conditions showed a weakly
positive relationship, but training and working conditions showed a positive
relationship between Employee Performance. There was a somewhat positive
correlation between employee performance and the nature of the work. The regression
analysis result showed that job satisfaction has a significant positive impact on
employee performance, and that all predictor variables, including pay and benefits,
training, and working conditions, had a positive impact on employee performance. The
primary factor influencing employee performance is the nature of the job.
Ndulue and Ekechukwu (2016), concluded that the relationship between job satisfaction
and employees commitment has a positive relationship on the basis of the responses
from the employees, this implies that employee’s commitment to their work largely
depends on job satisfaction. The population for the purpose of this study made use of
staff of Nigerian Breweries Plc Kakuri, Kaduna State. Hence, the estimated population
for this study is 3,195 (Nigerian breweries Plc annual report and accounts, 2014).
Stratified random sampling technique was used in selecting staff of the company, the
respondents were divided into different strata and sample was drawn from each stratum
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randomly and the reason for this is chosen because it minimizes bias to barest minimum
by giving each member of the sample an equal chance of being chosen.. The strata in
this case are the top managers, middle managers, supervisors, and junior workers. A
total of 470 workers were chosen to take part in the survey.
The survey research design was used in this study. The researcher was able to draw
more trustworthy conclusions about job satisfaction and how it affects workers'
performance by using a survey research design. Regression, simple percentages, tables,
and other statistical tools have been used to augment the descriptive method of data
analysis. The analysis indicates that the coefficients for nature of job and Job reward
by Nigerian Breweries Plc Iganmu, Kaduna State in improving job satisfaction are
positive and significant in improving employee’s morale. The findings showed that
there is an evidence of existence of linear relationship between job satisfaction (nature
of job, job reward and job security) and employees performance proxy which is
employees morale.
Ezeanyim, Ezinwa, Ufoaroh, Theresas, & Ajakpo (2019), investigated the Impact of
Job Satisfaction on Employee Performance in the selected Public Enterprise in Awka,
Anambra State of Nigeria and it was concluded that the employees are dissatisfied
with the working conditions of the organization resulting their bad performance in the
job. This research made used of the descriptive survey research design. The target
population for the study consists of 1000 workers which is made up of the doctors,
nurse, from COOU hospital Amaku and administrative, accounts, finance workers in
purity FmAwka. Two hundred and fifty employees were selected using stratified
random sampling to participate in the survey.
The descriptive method for the data analysis has been supplemented with the use of
some statistical instruments, such as table, sample percentage and chi square. The
questionnaire was analyzed by simple percentage distribution. From the analysis done
in this study together with the findings it is obvious that workers (reward/pay,
promotion, job safety/security, working conduction) package matters a lot and should
be a consider as priority by both employers and employees. The study finds that there
is significant and positive relationship between the dependent (i.e employee
performance) and independent (i.e. reward/pay, promotion, job safety/security, working
conduction. The study showed that increase in Promotion increases employee
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The results obtained from the hypotheses showed that worker’s place great value on
motivation to improve their performance. And Most of the respondents brief on how
their management sub-charge them on any slightest mistake and as well fall to
encourage them on their quest to move the organization forward. They further informed
that how their management withheld their salary for every 3 months only for them to
pay half of the salary at the end of each 3 months. However most organization treat
their staff like a slaves and threaten to sack them in any slightest mistake. When rewards
are not given, workers tend to express their displeasure through poor performance and
non-commitment to their job.
Riyanto, Endri, and Herlisha (2021), conducted a research investigating the effect of
work motivation and job satisfaction on employee’s performance. This study was
conducted on IT companies in Indonesia, with respondents who are system developers
who handle system development activities for a project or part of an ongoing project.
The study was conducted from January 2020 to May 2020. The locations of the
companies studied were Jakarta and Bandung. The number of respondents in this study
was 103 IT developers who were selected using the convenience sampling method. This
study used qualitative data quantified with a Likert scale of 1-5, with research variables
consisting of motivation, job satisfaction, employee engagement, and employee
performance and the analysis used is Partial Least Square (PLS).
Empirical findings proved that the motivation variable has a positive effect on employee
performance variables. Motivation and job satisfaction have a positive and significant
effect on employee performance. The direct involvement of workers does not affect
employee performance, but mediating the effect through motivation and job satisfaction
can significantly affect employee performance. The results of this study provide
recommendations for company management, in increasing high employee engagement,
employee motivation needs to be encouraged to be more active and innovative, and
facilitate the achievement of desired results, reviews generate feedback, and
performance improvement plans help employees develop skills that maximize their
potential.
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Conclusion
Summary
The purpose of this seminar paper was to determine the impacts of job satisfaction on
employee performance. Furthermore, this paper aimed to determine the factors of job
satisfaction and how each of them affect employee performance. In this regard, the
paper reviewed various articles related to job satisfaction, factors of job satisfaction and
employee performance. The articles were looked up in the internet and only few related
articles were reviewed. Likewise, this paper is also based on the Porter-Lawler
Expectancy Theory and Maslow’s theory of hierarchy of needs which were reviewed
from the book that was searched on the internet. The dependent variable (employee
performance) under those articles were uniform while independent variables were not
uniform. The sample under various articles were observed to be heterogeneous in the
sense that each of the sample being employee of different organization with different
job. Some of them were teacher, some were bankers, some were doctors, some of them
worked on factories etc. The seminar paper observed the usage of Quantitative methods
in majority of the articles reviewed such as descriptive statistical tool, correlation
analysis to analyze the relationship between the variables and regression analysis to
analyze the effect of independent variables (pay and promotion, Nature of job, job
security, working environment, interpersonal relation, challenging task, decision
making authority etc.) on dependent variable (employee performance). And the seminar
paper found that there is significant positive relationship between job satisfaction and
employee performance. Out of all the factors of job satisfaction pat and promotion is
found to be the most effective factors to enhance the employee performance. Also,
working environment, decision making authority, motivation, nature of the job and job
security is highly correlated with employee performance. While, interpersonal relation,
challenging assignment, training, etc. has moderate positive correlation with employee
performance.
Conclusion
The seminar paper found that Out of all the factors of job satisfaction payand promotion
is found to be the most effective factors to enhance the employee performance. Also,
working environment, decision making authority, motivation, nature of the job and job
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References
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Practice, 3(4), 77-86.
Brenninger, H.-J. (2015). Employee Satisfaction and Its Impact on Company Value,
Doctoral Thesis. University of Lativa, Faculty of Economics and Management,
Riga Lativa.
Ezeanyim, Ezinwa, E., Ufoaroh, Theresas, E., & Ajakpo. (2019). The Impact of Job
Satisfaction on Employee Performance in Selected Public Enterprise in Awka,
Anambra State. Global Journal of Management and Business Research: A
Administration and Management, 19(7), 40-52.
Inayat, W., & Khan, M. J. (2021). A Study of Job Satisfaction and its Effect on the
Performance of Employees Working in Private Sector Organizations, Peshawar.
Education Research Internatuonal, 5(3), 1-9.
Judge , T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001). The Job Satisfaction-
Job Performance Relationship: A Qualitative and Quantitative Review.
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