Examples Of Variance Theory

2000 studies have been published on job satisfaction since the 1950’s (Kahn, 1972). Job satisfaction refers to an employee’s feelings towards their job based on the comparison between actual versus desired outcomes (Locke, 1969). Each individual experiences various levels of job satisfaction due to their different expectations towards their job

Organizations that are serious about making improvements are going to have to deal with the issue of job satisfaction. Job satisfaction can be best described as the positive feeling that an individual has about their job resulting from an evaluation of the job’s characteristics (Robbins & Judge, 2009, p.31). It would seem natural to think that job satisfaction would have a positive correlation with successful organizations. What impact does job satisfaction have on an organization? Research will show that there are not only internal effects from performance related issues, but also external effects that impact customer satisfaction.

This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

Theory X and Theory Y represent two sets of assumptions about human nature and human behaviour that are relevant to the practice of management. They describe two contrasting models of workforce motivation. Theory X represents a negative view on of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. Theory Y represents a positive view of human nature and assumes individuals are generally hard-working, creative, and able to take on responsibility

There should be clear communication between management and employee. Not a single employee should felt like left out or undervalued. After following my recommended compensation mix employee should feel free to talk about their need, rewards and benefits and depending on their work, capacity and quality of

According to the interview results in the case study, the company was conducting regular surveys to evaluate employee satisfaction with salaries. It is evident that employees are motivated through bonuses and a standard pay. Good incentives address employees’ needs in a satisfactory manner. The firm therefore spends a good amount of money putting into employees’ welfare in order to boost their performance and reward their efforts.

After analyzing this organization, it is apparent to that job satisfaction should be a priority for management. Job satisfaction can be best understood as a positive emotional state resulting from a perceived satisfaction from one’s job (Locke & Lathan, 2007). Employee satisfaction is an important retention strategy based on the knowledge that a satisfied employee is more effective in completing their duties, more productive, and seldom contemplates alternative employment. Achieving a goal of a high employee satisfaction rate consist of implementing compensation and reward strategies mentioned prior. It should be emphasized that employees, regardless of industry respond in a positive manner to positive recognition. Positive recognition can be achieved with more than compensation and rewards. Creating an atmosphere where employees feel like their ideas and opinions matter can be just as effective as monetary and non-monetary rewards. A routinely exchange of ideas

Job satisfaction can be defined as psychological state of how an individual feels towards work, in other words, it is people‟s feelings and attitudes about variety of intrinsic and extrinsic elements towards jobs and the organizations they perform their jobs in. The elements of job satisfaction are related to pay, promotion, benefits, work nature, supervision, and relationship with colleagues. Employees‟ satisfaction is considered as all-around module of an organization‟s human resource strategies. According to Simatwa (2011) Job satisfaction means a function which is positively related to the degree to which one‟s personal needs are fulfilled in the job situation. Kuria (2011) argues that employees are the most satisfied and highly productive when their job offers them security from economic strain, recognition of their effort clean policy of grievances, opportunity to contribute ideas and suggestions, participation in decision making and managing the

Motivational Theories are important to management today because employers and managers need to know what drives the employees to perform at their best, and why. As Hersey explains, “If we are to understand, predict, and influence behavior, we must know what our employees really want from their jobs. Only then can we appeal to their strongest motivations and increase the probability of meeting both professional and organizational goals”

The Value Percept Theory argues that job satisfaction depends on whether a job supplies the things an individual value most. Overall satisfactions derive form combined levels of satisfaction from various elements of an individual’s job, whether it’s: pay, promotion, supervision, coworkers, or the work itself. Job satisfaction is based on cognitive and affective components, which is evaluated by what an individual thinks about the job, and how they feel. Cognition evaluation is based on experiences, weighing different aspects of a job; as affect is a reaction of the job, which can fluctuate based on moods and emotions. Level of dissatisfaction is measured by the difference between what one has and what one wants, and the level of importance of that facet to the individual. Statistics have proven, that supplying individuals with what they value, will increase the chance of better performance, which has a high correlation with an individual’s affective commitment with the organization.

Job satisfaction comes from the attitude that employees have towards their work. There is a close relationship between the degree of satisfaction and the motivation level of employees. Explaining that if there is a lack of motivation in the workplace, it is likely due to a lack

Job satisfaction can be known to some people as an important element in their lives. If an individual is unhappy with their occupation it may affect other parts of their life. Job satisfaction can be seen in what one wants in a job as to what one has in their current job.

Personal characteristics of workers also has an impact on job satisfaction. Job satisfaction increases age. Whites have greater job satisfaction than non-whites. The level of education is slightly negatively related to job satisfaction. If personal skills and abilities are not required by a job, job satisfaction decreases. When a person is more adjusted personally, they will be more satisfied with work. Most of all having a job with decent and fair wage may be the most important variable to job satisfaction. High job satisfaction is associated with low turnover and low absenteeism and with high commitment. Although the evidence is not conclusive, high job satisfaction is associated with high performance and prosocial behaviors.

Job satisfaction is the very important factor in general quality of life because it is closely connected with working life (e.g. Argyle, 1989; Bang & Lee, 2006), with family life, everyday life, and mental health (Orpen, 1978; Schmitt and Bedeian, 1982; Faragher, Cass & Cooper, 2005). Level of job satisfaction is also highly related to turnover, absenteeism rate, work productivity or accomplishment (Muchinsky, 1977; Organ, 1977). Many researchers (e.g. Cherrington, 1994; Acorn, Ratner & Crawford, 1997; Ostroff, 1992; Spector, 1997) state that employees who experience high job satisfaction contribute to organisational commitment, job involvement, their physical, mental health and overall well-being are improved. Job dissatisfaction on the