In this study, I will examine the research analysis concerning the correlation between employee satisfaction and their productivity within the work environment. Various theories and research models will be used to validate or disprove the theory of a happy worker is a productive worker. Ultimately, the employer’s role in building and sustaining a healthy organizational culture will be analyzed and reviewed. The Role Employee Satisfaction in Organizational Effectiveness There has been a great deal of research attempting to link employee’s satisfaction with productivity. This research will explore the dynamics of that relationship and attempt to find correlating factors that may contribute to the success of an organization. An employee’s satisfaction within an organization plays a significant role in defining the effectiveness of that company. Defining organizational effectiveness is a difficult task, because it has various meanings to different people. One of the best-rounded definitions can be found in the business dictionary. It states that the organizational effectiveness will generally be expressed in terms of how well its net profitability compares with its target profitability ("Organizational Effectiveness," 2014, p. 1). The definition concludes that additional measures may include growth data and the results of customer satisfaction surveys. As stated earlier in this research paper, employee satisfaction should be a priority in an effort for an organization to
It has been shown that employees who have a high satisfaction rate on the job or with the company that they work for, are less likely to leave the company that they work for compared to those who have a less satisfaction rate (Hellawell, 2012). As mentioned earlier, this would result not only in cost savings, but it would improve the overall relationship between the employee and the company. Employees that are committed and satisfied are not only not going to leave, they would also be able to contribute more and be more effective and efficient.
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.
Most every organization must deal with the issues of employee satisfaction in order to achieve their customer satisfaction targets and, consequently profitability. The paper considers the determinants of employee satisfaction using an empirical approach and premising arguments on extant literature. The focus on this paper is to explain the level of satisfaction among employees with an aim of providing dynamic recommendations to improve the worker satisfaction in firms. This will be achieved by examining published research and robust data obtained from interviews related to employee satisfaction, customer retention, and corporate profitability. The paper recognizes that employee satisfaction has fundamental implications for
Employee satisfaction is a prerequisite for the customer satisfaction. Enhanced employee satisfaction leads to higher level of employee retention. There is a definite link between employee attitudes and customer satisfaction. If employees are unhappy or dissatisfied, despite their best efforts; it is difficult for them to conceal this factor when interacting with customer and other staff members. One of the primary reasons for evaluating employee satisfaction is to identify problems
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
Employee job satisfaction is supremely important in an organization because it is what productivity depends on. If your employees are satisfied they would produce superior quality performance in optimal time and lead to growing profits. Satisfied employees are also more likely to be creative and innovative and come up with breakthroughs that allow a company to grow and change positively with time and changing market
Increased productivity the quantity and quality of output per hour worked seems to be a byproduct of improved quality of working life. It is important to note that the literature on the relationship between job satisfaction and productivity is neither conclusive nor consistent. However, studies dating back to Herzberg's (1957) have shown at least low correlation between high morale and high productivity, and it does seem logical that more satisfied workers will tend to add more value to an organization. Unhappy employees, who are motivated by fear of job loss, will not give 100 percent of their effort for very long. Though fear is a powerful motivator, it is also a temporary one, and as soon as the threat is lifted performance will decline. Tangible ways in which job satisfaction benefits the organization include reduction in complaints and grievances, absenteeism, turnover, and termination; as well as improved punctuality and worker morale.
Through-out this essay the notion of satisfied employees being more productive will be broken down and examined, taking into consideration research and theories, to determine if there is any correlation between the two elements, and if so, to what extent. Locke (1976) defines “job satisfaction as pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience… a perception of how well their job provides those things that are viewed as important.” The feeling of satisfaction is an attitude, “a psychological tendency that is expressed by evaluating a particular entity with some degree of favour or disfavour” (Eagly and Chaiken, 1993) favour being the satisfaction the employee feels. “While in its purest
The productivity of any organization depends on the satisfaction of the employees, as happier employees also make more profit as they work faster and harder.
Job satisfaction is defined as "the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs". This factors bring positive impact on organizational performance and employees’ commitments.
It is essential for employees to be satisfied in their job in order to have a happy workplace environment. Having a business where employees are happy boost company morale, and increases job performance because employees experience a sense of fulfillment, belonging and appreciation. This qualitative study was conducted to determine whether or not there is a relation between employee satisfaction and reward systems. Also, to what extent does the reward system influence behavior? This study clearly stated their hypotheses and tested it without bias (Galanou et al., 2010).
According to Nancy C. Morse (1997) “Satisfaction refers to the level of fulfillment of one’s needs, wants and desire. Satisfaction depends on what an individual wants from the world, and what he gets.” Employee satisfaction is a measure of how happy workers are with their job and working environment. It is undeniable that there are many different factors affecting organizational effectiveness, and one of them is employee satisfaction. Also, it is said that a satisfied employee is a productive employee, so every company is giving higher priority to keep their employees satisfied by providing several facilities which improve satisfaction and promote a healthy work environment. If employees are not satisfied with their job, there can be chances for absenteeism, high turnover, low productivity, and making mistakes. Employee satisfaction is the sum of an employee’s experiences, both positive and negative, when performing his or her job. Moreover, the quality of an employee’s workplace experiences may be largely determined by his or her ability of meet personal objectives.
In this essay, I will explore the relationship between the level of employee satisfaction and employee production. Firstly defining and explaining satisfaction and job performance as these variables are difficult to define, and a clear definition is critical for assessing the relationship between them. Secondly I will discuss some of the most significant studies in this area of research. I will then analyse various factors which determine the correlation between these two variables, focusing on the attitude-behaviour relationship as this gives an insight into how a higher level of satisfaction may link to greater production. Finally I will look into a set of different models which propose variations to the job satisfaction-performance
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
There had been literatures and arguments that express the importance of improving employee satisfaction as it increases service quality and, in turn, improve customer loyalty and profitability. In a study about the relationship between and among employee satisfaction, customer satisfaction, and financial performance, the proponents cited the work of Rucci, Kirn, & Quinn (1998) in which discussed and analysed the case of Sears and used the Service Profit Chain. The report revealed that by improving employee satisfaction by 5 points customer satisfaction and sales increased by 1.3 points and 0.5% respectively. One of the literatures presented in the study explained that the reason why employee satisfaction has a direct impact on customer satisfaction (and in