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OB seminar- Impact of job satisfaction on employee
performance
Human Resource, Organizational Behavior, (Tribhuvan Vishwavidalaya)
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IMPACT OF JOB SATISFACTION ON EMPLOYEE PERFORMANCE
A THEMATIC REVIEW
A Seminar paper
By
Ayusha Pokhrel
Bachelor of Business Administration (BBA)
Third Semester
Submitted to
Faculty of Management
Sukuna Multiple Campus
Tribhuvan University
Jestha, 2080
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DECLARATION
I hereby declare that the work reported in this thematic review entitled “Impact of Job
Satisfaction on Employee Performance” submitted to office of the Dean, Faculty of
Management, Tribhuvan University, is my original work done in the form of partial fulfillment
of the requirements for the Bachelor in Business Administration under the supervision and
guidance of Mr. Bikram Thapa, Sukuna Multiple Campus, Sundarharaincha, Morang.
Date: …………………………
Ayusha Pokhrel
Sukuna MultipleCampus
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CERTIFICATE FROM THE SUPERVISOR
This is to certify that the thematic review entitled “Impact of Job Satisfaction on Employee
Performance” is an academic done by “Ayusha Pokharel” submitted in the partial fulfillment
of the requirement for Bachelor of Business Administration at the Faculty of Management,
Tribhuvan University under my guidance and supervision. To the best of my knowledge, the
information presented by him in the thematic review has not been submitted earlier.
……………………………
Mr. Bikram Thapa
Supervisor
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EVALUATION FOR APPROVAL
We, the undersigned, have examined the thematic review report entitled “Impact of Job
Satisfaction on Employee Performance” submitted by Ayusha Pokharel of Sukuna Multiple
Campus, Sundarharaincha, Mor,ang, and conducted a viva voce examination of the candidate.
We hereby certify that the report is worthy of acceptance.
Mr. Bikram Thapa Signature
BBA Program ……………………..
External supervisor Signature
BBA Program …………………….
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ACKNOWLEDGEMENT
I would like to take this opportunity to express my heartfelt gratitude and appreciation to all
those who have contributed to my academic journey and the completion of my thematic paper
on “Job Satisfaction and Employee Performance." Firstly, I would like to thank Sukuna
Multiple College for providing me with the platform and resources to pursue my Bachelor's
degree in Business Administration (BBA). The college has been a nurturing environment that
has helped me to grow both academically and personally. I am grateful for the opportunity to
be a part of this esteemed institution. I would also like to extend my sincere thanks to Mr.
Bikram Thapa, for his unwavering support and guidance throughout this project. His expertise,
valuable insights, and constructive feedback have been critical in enhancing the quality of my
work. His mentorship and encouragement have been a source of motivation for me, and I am
grateful for his guidance. Furthermore, I would like to express my heartfelt appreciation to our
BBA Director Mr. Shankar Dewan, for his consistent support and assistance in completing this
project. His insightful comments, constructive criticism, and valuable feedback have been
instrumental in shaping my research and improving the quality of my work
In conclusion, I would like to thank all those who have contributed to my academic journey
and the completion of my seminar paper on “Job Satisfaction and Employee Performance."
Your support and encouragement have been invaluable, and I am deeply grateful for your
contributions.
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TABLE OF CONTENTS
DECLARATION ....................................................................................................................... ii
CERTIFICATE FROM THE SUPERVISOR .......................................................................... iii
EVALUATION FOR APPROVAL .......................................................................................... iv
ACKNOWLEDGEMENT ......................................................................................................... v
INTRODUCTION ..................................................................................................................... 1
Background ............................................................................................................................ 1
Statement of Problem ............................................................................................................. 2
Objectives ............................................................................................................................... 3
Significance of Study ............................................................................................................. 3
Methodology .......................................................................................................................... 3
Sources of Data ................................................................................................................... 3
Methods of Data Analysis .................................................................................................. 3
DISCUSSION AND ANALYSIS.............................................................................................. 4
Literature review .................................................................................................................... 4
Concept of Job Satisfaction ................................................................................................ 4
Models and theories related to factors influencing job satisfaction ................................... 4
Concept of employee performance ..................................................................................... 5
Empirical Review ................................................................................................................... 6
Findings .................................................................................................................................. 9
CONCLUSION ........................................................................................................................ 10
REFERENCES ........................................................................................................................ 11
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INTRODUCTION
Background
Job satisfaction is the positive and negative feelings of an employee towards his job or it is the
amount of happiness connected with the job (Singh & Jain, October-December,
2013)Therefore, job satisfaction is one of the most widely spread researched topics in the field
of organizational psychology According to (Inayat & Khan, 05 Aug 2021), job satisfaction is
the positive and enjoyable feeling that results from the evaluation of one’s job or job
experience.
It is observed from the previous studies that when an employee is satisfied, he will perform at
his level best to achieve the organizational objectives. Employees who are highly satisfied are
usually regular and punctual, more productive, more committed, and more satisfied in their
lives For that purpose, to boost the level of job satisfaction in order to improve performance,
employees should be given the opportunities of advancement, i.e., pay scales, participation of
employee in policy making, and taking efforts to increase organizational commitment
Similarly, safety and good relationships with supervisor and coworkers are the biggest satisfiers
nature of the job, way of supervision, job security, recognition, and advancement are important
factors for employees’ organizational commitment Likewise, participation of employees in
pension, profit-sharing plans and job security are positively correlated with job satisfaction,
whereas many studies have recommended opportunity for professional development as the
biggest determinant of job satisfaction
Satisfied worker leads to extend more effort to job performance, then works harder and better.
Thus, every organization tries to create a satisfied work force to operate the well- being of the
organization. However, the total organizational performance depends on efficient and effective
performance of individual employees of the organization. Therefore, every organization places
a considerable reliance on their individual employee performance to gain high productivity in
the organization. Employee effort is an important factor that determines an individual
performance will be. When an employee feels a satisfaction about the job, he/she is motivated
to do grater effort to the job performance. Then it tends to increase the overall performance of
the organization. In other words, a satisfied individual employee and his effort and commitment
are crucial for the successfulness of the organization
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Statement of Problem
The trend towards globalization, advancements in technology, and novel business strategies all
have an ongoing impact on Nepali organizations. Many businesses are finding it extremely
difficult to increase employee job satisfaction and performance to ensure the prosperity of the
organization. Employee satisfaction is typically higher when they think they are getting a fair
return for the effort they have done. Therefore, those workers are more devoted to the company,
have greater rates of employee retention, and often possess higher efficiency.
Performance management and employee satisfaction are two areas that pose challenges for
employers. Using performance management methods such as appraisals to measure employee
performance comes with its own challenges, which are usually unforeseen. Only after
employers implement complex appraisal programs do they realize the problems associated with
them.
Job satisfaction is another subjective topic that concerns employer’s job satisfaction, or lack
thereof, can affect performance appraisals and threaten the employer employee relationship by
creating friction between employees and their supervisors. Nevertheless, employers can use
surveys, employee feedback and supervisor review to define what problems exist within both
job satisfaction and performance appraisals
Some organizations motivate their staff to work efficiently by providing training and
development opportunities as well as a range of rewards for meeting performance targets.
There are still problems with work satisfaction even if the firms have offered various incentives
and developmental initiatives to inspire the personnel.
Many studies in the field of industrial/organizational psychology have examined the link
between job performance and job happiness with an eye towards its managerial implications.
Despite the fact that there have been several proposed explanations for the association, research
has not yet identified the best causal model to explain the link.
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Objectives
i. TO analyze the impact of job satisfaction on employee performance
ii. To identify the relationship between (extrinsic factors, socio- demographic factors,
promotion opportunities etc.) on employee job performance
Significance of Study
It is expected that this research will yield theoretical and practical benefits. From a theoretical
standpoint, this study would produce useful ideas, advance understanding, and assist future
research by assisting in the verification of the theory by other researchers. Next, from a
management standpoint, this research might help management enhance future employee work
performance and boost employee job happiness across sectors. Finally, our research will help
future students’ better grasp the connection between work happiness and performance, and it
may serve as a reference for other researchers who wish to investigate this link in a different
setting.
Methodology
In this chapter, the general design of the research and the methods used for data collections are
explained in detail. The purpose of this section is to indicate how the research was conducted
throughout the study periods.
Sources of Data
Secondary source of data is used for collecting different information related to inflation and its
causes. Secondary source of data are the source of information that have been previously
collected, compiled, and analyzed by someone else. For example: article, reports, newspaper,
websites etc. the information used in the report is collected from various sources such as
government reports, journal article, books, research report, thesis and so on.
Methods of Data Analysis
The study has employed the descriptive research design with due consideration of the research
objective of the study. A descriptive research design is a fact-finding operation searching for
the adequate information. It is undertaken in order to ascertain and be able to describe the
characteristics of the variables of the interest.
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DISCUSSION AND ANALYSIS
Literature review
Concept of Job Satisfaction
Job satisfaction is the degree of positive affect that an employee feels towards the organization.
It may be a general satisfaction with the job or with specific dimensions of the job or workplace,
such as promotions, pay, and relationships with coworkers. Specifically, with respect to health
workers, job satisfaction is known to influence motivation, staff performance, and retention,
which in turn affect the successful implementation of health system reform. Job satisfaction is
defined as how employees feel about their jobs and different aspects of their jobs. It is a
pleasurable emotional state that results from the appraisal of one’s job. In health sector, job
satisfaction of health care workers is highly associated with quality of services and patient
satisfaction (Rokka & Khanal, 2023). Job satisfaction is defined as a collection of feelings that
people have towards their job. Specially, with respect to health workers, job satisfaction is
known to influence motivation, staff performance, and retention, which in turn affect the
successful implementation of health system reform.
Organization expects to have competent, productive and efficient employees so that they can
accomplish their objectives more efficiently. These days, organizations focus to formulate and
implement various policies to increase the employees’ job satisfaction. Various researchers,
have found that satisfied employees pay their optimal efforts for optimal performance of the
organization. Besides these organizations, health institutions equally need job satisfaction to
lower health worker turnover, increase productivity, efficiency and profit as well as to maintain
respectful work environment. Job satisfaction influences health workers performance by
lowering absenteeism and turnover, and by motivating them to work under pressure by creating
harmonious environment around them.
Models and theories related to factors influencing job satisfaction
Job satisfaction basically contains two model. They are; Expectation from the job and actual
job condition. When the expectation of employees from the job do not match with the actual
job satisfaction then there arise job dissatisfaction. Therefore, job satisfaction is the level of
discrepancy between expectations from job and actual job conditions. Also, there are many
theories which discuss on the job satisfaction of employees. But most studies show that
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Herzberg theory and Maslow’s theory are the most commonly used theory to explore job
satisfaction among employees (Alrawahi, Sellgren et al., 2020). According to Herzberg's
theory of motivation applied to the workplace, there are two types of motivating factors: 1)
satisfiers (motivators), which are the main drivers of job satisfaction and include achievements,
recognition, responsibility, and work advancement, and 2) dissatisfiers (hygiene factors),
which are the main causes of job dissatisfaction. Herzberg used this model to explain that an
individual at work can be satisfied and dissatisfied at the same time as these two sets of factors
work in separate sequences. For example, hygiene factors (dissatisfiers) cannot increase or
decrease satisfaction; they can affect only the degree of dissatisfaction. Satisfiers (motivational
elements) need to be harmonized with hygiene factors to achieve job satisfaction at work.
Managers in healthcare organizations should understand this relationship. In Maslow's theory
of motivation, the lower needs on the proposed pyramid must be met before the higher needs;
this idea can be considered parallel to that of motivational and hygiene factors because hygiene
factors must be present to allow motivational factors to emerge and thereby prevent job
dissatisfaction. The motivators in Herzberg's theory are similar to the intrinsic factors (higher
needs) in Maslow's theory. The extrinsic factors in Maslow's theory resemble the hygiene
factors (dissatisfiers) in Herzberg's two-factor theory.
Concept of employee performance
According to (Harwik)“Employee performance is the degree to which employees accomplish
works requirements”. “Employee performance is a degree in which employees can complete
the work in accordance with the specified conditions’’. “Employee performance depends on
the ability, effort and employment opportunities that are assessed by the output generated by
employee job satisfaction (Gruman & Saks, 2011). Furthermore (Berliana, Siregar, & Gustian, Commented [L1]:
2018) adds that “Performance (work performance is the work quality and quantity achieved by
an employee in carrying out his duties in accordance with the responsibilities given to him’’.
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Empirical Review
(Msuya, may 2016)Examine the role of extrinsic factors and socio- demographic factors in job
satisfaction of employees and find out that both the factors play an important role in designing
job satisfaction. Sociodemographic variables impact job satisfaction in a variety of ways by
influencing how people see their experiences and work environment. Priorities can change
depending on age; younger workers frequently value professional advancement while elderly
workers may prioritize job stability. Gender roles may have an effect on satisfaction levels by
contributing to differences in opportunity and remuneration. Although overqualification can
cause unhappiness, higher education is often linked to higher work satisfaction. Although the
link is complex and takes into account things like perceived fairness, income levels do play a
part. Workplace perks and policies are influenced by marital status and family obligations,
which in turn affects employee happiness. Long work tenure has a tendency to positively
connect with job happiness; nevertheless, lengthy tenure without professional development
may result in discontent. Geographical location affects elements like work satisfaction, while
ethnicity and cultural background determine values that effect it. Similarly, Extrinsic factors,
such as competitive compensation, comprehensive benefits, a positive work environment,
recognition for achievements, job security, and opportunities for career development, play a
crucial role in designing job satisfaction. These external elements contribute to employees'
overall well-being, motivation, and sense of value within the organization, emphasizing the
importance of a holistic approach to creating a satisfying work experience
A high level of job satisfaction will facilitate the successful achievement of organizational
objectives. While a low degree of job satisfaction is a risk that could swiftly or gradually cause
the firm to fail or suffer a setback (Badrianto & Ekhsan, 2020). A key factor in ensuring the
effective accomplishment of company objectives is a high degree of job satisfaction among
employees. People are more likely to be productive, engaged, and dedicated to their work when
they feel happy and fulfilled in their roles. Collaboration, creativity, and a sense of ownership
are all encouraged in this supportive work atmosphere, which eventually helps the company as
a whole. Conversely, a low level of job satisfaction presents a serious danger because it can
result in lower output, higher employee turnover, and a lack of drive. This discontent may
eventually seep into the corporate culture, which could lead to the failure or misfortune of the
company. It becomes essential to address and improve job satisfaction in order to maintain a
successful workplace and guarantee the long-term success of the organization.
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(Nanda & Browne)Have investigated the important employee performance indicators at the
hiring stage. They concluded that level of job satisfaction and motivation affects the
employee’s productivity. Their research showed that a new hire's complete achievement inside
the company may be greatly impacted by their degree of work satisfaction. People are more
inclined to devote their time and abilities to their work when they are happy and fulfilled in
their positions, which boosts output. The study also emphasized the significance of motivation
as a critical factor in determining worker performance. Increased dedication, zeal, and
persistence in the workplace are characteristics of motivated workers, which raises output
levels. Nanda and Brown's findings essentially highlight the crucial relationship between job
happiness, motivation, and subsequently employee productivity. As a result, they recommend
that companies give these elements top priority when hiring new employees in order to promote
a happy and productive work environment.
Similarly, the low level of job satisfaction adversely effects on the employee commitment and
sequentially effect the achievement of organizational objectives and performance (Khan,
Nawaz, Aleem, & Hamed, 2 February, 2012). A low level of job satisfaction has a detrimental
impact on employee commitment, subsequently hindering the attainment of organizational
objectives and overall performance. When employees are dissatisfied with their jobs, they are
less likely to engage fully and commit to their roles. This lack of commitment results in
diminished effort, reduced enthusiasm, and a lower quality of work. As a consequence,
organizational goals and objectives may be compromised due to the compromised dedication
and productivity of dissatisfied employees. In essence, the connection between job satisfaction
and employee commitment is crucial for achieving organizational success, and addressing low
job satisfaction is pivotal to maintaining a workforce that is motivated, dedicated, and aligned
with the organization's objectives.
Antoncic and Antoncic (2011) explain that employee satisfaction has a positive influence on
four dimensions of work (general satisfaction with work; employee relationships;
remuneration, benefits and organizational culture; and employee loyalty). Hence, this impact
has a positive influence on firm growth. The results highlight the positive influence of
employee satisfaction on various dimensions of work, encompassing general satisfaction with
work, employee relationships, remuneration, benefits, organizational culture, and employee
loyalty. The way these components interact greatly influences the growth of the company.
Employee engagement and commitment are increased when they are generally satisfied with
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their job, which cultivates strong connections inside the organization. A motivated and happy
staff also has a tendency to be more devoted and in line with the culture and values of the
organization. Benefits and compensation are also positively impacted, resulting in a
comprehensive work environment that enhances employee wellbeing. In the end, this complex
framework of factors related to employee happiness strengthens the internal workings of the
company and is essential to its growth, as it produces a staff that is driven, devoted, and
productive.
Employees perceive the meaning of their work when they are satisfied with their jobs. Workers
who understand how their positions affect others perform better because they have faith in their
ability to complete work-related tasks. They are more confident in themselves and their work,
which improves job performance [13]. Organizations rely on their workforce to achieve
maximum productivity, which translates into organizational efficiency (Memon, Khahro,
Memon, Memon, & Mustafa, 2023)
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Findings
Numerous studies have consistently demonstrated a positive correlation between job
satisfaction and employee performance. Research findings consistently highlight that satisfied
employee tend to exhibit higher levels of engagement, commitment, and productivity. Job
satisfaction contributes to a positive work environment, fostering a sense of well-being and
contentment among employees. This, in turn, leads to increased motivation, job involvement,
and a willingness to expend discretionary effort to achieve organizational goals.
Satisfied employees are also more likely to stay with an organization, reducing turnover rates
and associated costs. Additionally, job satisfaction has been linked to lower levels of
absenteeism and decreased instances of workplace conflicts. The positive impact of job
satisfaction on employee performance extends beyond individual tasks and responsibilities,
influencing teamwork, collaboration, and overall organizational effectiveness.
The findings shows that employees reporting higher levels of job satisfaction tend to
demonstrate increased productivity, efficiency, and effectiveness in their roles. This positive
correlation is particularly evident in areas such as task performance, creativity, and overall job
commitment. Job satisfaction is often associated with lower turnover rates, reduced
absenteeism, and higher organizational citizenship behavior, all of which contribute to
enhanced employee performance over the long term Satisfied employees are more likely to be
intrinsically motivated, driven by a genuine interest and enjoyment in their work, which, in
turn, positively affects their performance. The impact of job satisfaction is not limited to
individual outcomes; it also extends to team dynamics, as content and engaged employees
contribute to a more collaborative and cooperative work environment
Overall, the findings consistently suggest that fostering job satisfaction within the workforce
can result in a multitude of positive outcomes, ultimately enhancing employee performance
and contributing to the overall success of the organization.
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CONCLUSION
In conclusion, the body of research investigating the impact of job satisfaction on employee
performance consistently points towards a robust and positive relationship between these two
variables. The evidence gathered from various studies using diverse methodologies reveals that
satisfied employees tend to exhibit higher levels of performance across multiple dimensions.
From increased task performance and creativity to lower turnover rates and absenteeism, the
influence of job satisfaction permeates various aspects of organizational functioning.
The findings suggest that fostering a work environment that prioritizes and enhances job
satisfaction can be a strategic investment for organizations aiming to optimize employee
performance. The positive effects extend beyond individual tasks, affecting team dynamics,
organizational commitment, and overall workplace culture. Moreover, the mediating role of
motivational factors underscores the importance of understanding and addressing employees'
subjective experiences to unlock their full potential.
While individual studies may present nuanced insights based on specific contexts, industries,
or methodologies, the overarching conclusion remains clear: job satisfaction is a key driver of
employee performance. As organizations navigate the complexities of talent management,
acknowledging and actively promoting job satisfaction emerges as a pivotal strategy for
achieving sustained high-level performance, fostering employee well-being, and contributing
to overall organizational success.
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REFERENCES
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Berliana, M., Siregar, N., & Gustian, H. D. (2018). The Model of Job Satisfaction and
Employee Performance. International Review of Management and marketing.
Gruman, J. A., & Saks, A. M. (2011). Performance management and employee engagement.
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Harwik, W. (n.d.). The impact of servant leadership on organization culture, organizational
commitment, organizational citizenship.
Inayat, W., & Khan, M. J. (05 Aug 2021). A Study of Job Satisfaction and Its Effect on the
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Khan, A. H., Nawaz, M. M., Aleem, M., & Hamed, W. (2 February, 2012). Impact of job
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Relationship between Job Satisfaction and Employee Performance in the Construction
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Msuya, O. W. (may 2016). Exploring levels of job satisfaction among teachers in. International
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