ABSTRACT

Journal of Management and Social Sciences

Vol. 8, No. 1, (Spring 2012) 31-39
The material presented by the author does not necessarily portray the viewpoint of the editors
and the management of the Institute of Business & Technology (IBT) or Institute of Cost and Management
Accountants of Pakistan and FAST School of Management, National University, Karachi Campus.
JMSS is published by the Institute of Business and Technology (IBT).
Main Ibrahim Hydri Road, Korangi Creek, Karachi-75190, Pakistan.
*
C
Exploring Factors Affecting Employees' Job Satisfaction
at Work
Purpose- The objective of this project paper is to find out which factor is
contributing to the highest level of job satisfaction and identify the most satisfying
and least satisfying factor selected in the study. The company's employees are
highly satisfied which is a matter of curiosity. It has motivated the researcher
to find out the factors that is contributing towards the highest level of job
satisfaction.
Methodology/sampling- The research report has followed a descriptive
analytical approach; a stratified random sampling of 40 out of 100 employees
was used for analysis. Using descriptive and causal techniques- based survey;
the data were collected through a close- ended questionnaire coupled with Likert
scale. Data has been analysed by applying Regression, ANOVA and Correlation
tests.
Findings- The result indicated that among four factors work environment has
the highest magnitude that is contributing towards the highest level of job
satisfaction of a multinational company's employees of Pakistan. The study
concluded that in order to gain competitive advantage and adapt to the dramatic
changing environment it is important for them to achieve management efficiency
by increasing employee satisfaction in the organization.
Practical Implications- Since the company is working effectively and efficiently
and has succeeded in satisfying its employees at its par excellence therefore
it will provide a benchmark to other Pakistani organization.
Samina Qasim
*
Institute of Cost and Management Accountants of Pakistan.
Farooq-E-Azam Cheema
*
Institute of Business & Technology (IBT), Karachi.
Nadeem A. Syed
*
FAST School of Management, National University, Karachi Campus.
Keywords : Self -Actualization, Remuneration, Working Environment
* Samina Qasim : [email protected]
* Farooq-E-Azam : [email protected]
* Nadeem A. Syed : [email protected]
Jel classification : J280
1.INTRODUCTION
In developing countries, large segments of the population are deprived of getting a good
job to satisfy their needs. In the context of Pakistan, it is very much competitive to get a
job in multinational. That is reason, those who are being employed in multinational
organizations; perceive them as eligible, fortunate and privileged. But again being employed
through this competitive process does not mean that employees are satisfied from all
aspects. Accordingly, objective of this project paper is to find out which factor is contributing
to the highest and lowest level of job satisfaction in the work place.
A successful business organization normally considers the average employees
as the primary source of productivity gains. For such organization, satisfied employees
are the assets. Such employees are satisfied with their job and are inclined to be more
energetic, ardent, inspired, and committed to their work (Syptaket al., 1999). The research
report of Behavioral and social science reveals that job satisfaction and job performance
are positively correlated (Bowran and Todd, 1999). Job satisfaction is a key element of
general satisfaction which gives employees energy to perform and continue his job
adequately. Job satisfaction regulates the peace of mind, foster relaxation that leads to
more enthusiasm and more innovative work (Maher, 2004). It gives the clear picture of
completeness and accomplishment emanating from his work, a feeling which has nothing
to do with money but a feeling of relief that the employee gets out of the work itself
(Odwan, 1999).
Therefore, satisfaction can be classified as a "person's feelings of pleasure or
disappointment resulting from comparing a product's perceived performance (or outcome)
in relation to his or her expectations" (Kotler, 2003). Hence, job satisfaction being source
of relief of tension caused by the gap between the expectations of the individual and unmet
needs. It soaps up the apprehension of job dissatisfaction and factors associated with it
thus helping the Managers to beacon employees' activities in a desired direction. In an
organization the morale of the employees is considered to be deciding factor in the
organization's efficiency (Chaudhary and Banerjee, 2004). It is justifiable to say that
improving job satisfaction; managers, supervisors, human resource specialists, employees,
and citizens in general are concerned (Cranny et al 1992). In order to evaluate employee's
work performance, the manager must consider employee job satisfaction because employee
job satisfaction is related to employee service quality and employee work performance.
1.1 Research Objectives
Accordingly, purpose of this research work is:
To determine the degree of influence of work environment on employee job
satisfaction in a multinational organization.
To identify the degree of influence of remuneration on employee job satisfaction
in a multinational organization.
To examine the degree of impact of fairness on employee job satisfaction in a
multinational organization.
To investigate the degree of influence of promotion on employee job satisfaction
in a multinational organization.
To suggest some improvements in the organization where needed.
2. LITERATURE REVIEW
The job satisfaction of an employee is a topic that has received significant attention by
managers and researchers alike (Gautam; Mandal and Dalal, 2006). Job satisfaction deals
with the feelings that an individual has about his/her job. Organizational behavior research
has revealed that individuals who express high satisfaction in their jobs are likely to be
more productive, have higher involvement and are less likely to resign than employees
32 Vol. 8, No. 1, (Spring 2012)
Impact of Inflation on Taxes in Pakistan: An empirical study of 2000-2010 period
with less satisfaction. In 1959, Herzberg, Mauser and Snyderman found that job satisfaction
is elusive even chimerical concept that has been immensely confronted since. In any field
of business job satisfaction has been a matter of concern and attention nowadays. Job
satisfaction is the backbone for an organization's success; the key to successful organization
is the secret of satisfied workers.
Job satisfaction is basically described as the feelings that an employee has about
his/her job. Job satisfaction is an interesting topic to both people who work in organizations
and people who study them. Job satisfaction can be formally defined "as the degree to
which individuals feel positively and/or negatively about their jobs" (Steyn &Van Wyk
1999). Employees experience a feeling of accomplishment if their desired expectations
are met, that will ultimately determine the degree of satisfaction. In other words, job
satisfaction befalls when a job meets the, values, expectations and standards of an individual
and will stimulate their commitment and performance (Gordon 1999). Higher will the
level of job satisfaction if the degree of the expectations being met is greater. The report
reveals that from the worker's perspective, the level of job satisfaction increases when he
finds his work more interesting and different (Dinler, 2008; Wright & Davis, 2003).
According to McShane and Von Glinow (2005), job satisfaction is a multi-faceted
concept, which is a combination of past and present gratifying feelings that results when
one evaluates his or her work role. Baron and Greenberg (2003) assert that job satisfaction
is an attitude towards ones' job and it is basically the affective, cognitive and evaluative
reactions towards their job. McNamara (1999) defines job satisfaction as one's feelings
or state of mind regarding the nature of their work. Variety of factors influences job
satisfaction e.g. the quality of the physical environment in which they work, relationship
with their supervisor, and their commitment with the work. The definitions of job satisfaction
in a nut shell can therefore be condensed as a collection of behavior, attitudes, feelings
and beliefs that one has towards his or her job. For the purpose of this study it can also
be concluded that job satisfaction is a work-related attitude that epitomize accomplishment
of an emotional feeling that can be either quantitative or qualitative (Newstrom & Davis
1997). Absence of job satisfaction, on the other hand, is a predictor of relinquishing a job
(Alexander, Litchtenstein, Hellmann, Jamal, Levinson and Moser (1997). Organizational
commitment reduces and often leads to lethargy in the absence of job satisfaction (Levinson
and Moser 1997). Organizational commitment recognizes job satisfaction as its one of its
fundamental component (Kovach, 1977).
Various components of job satisfaction have been identified by the researchers
that measure the relative importance of each component of job satisfaction and examine
what effects these components have on workers' productivity. According to Maslow (1954)
human needs form a five-level hierarchy ranging from physiological needs, safety,
belongingness and love, esteem to self-actualization. Herzberg (1959) made some basic
distinctions between intrinsic and extrinsic factors in his Two-Factor Theory of motivation.
According to his theory, people are influenced by two sets of factors: Motivator Factors
and Hygiene Factors. Motivator factor includes achievement, recognition, work itself,
responsibility, promotion, growth and hygiene factors include pay and benefits, company
policy and administration, relationships with co-worker, and supervision.
2.1 Faceted vs. Overall Satisfaction
Spector (1997) says job satisfaction should be typically measured in degrees and examined
from multiple viewpoints using multiple constructs or categories. For instance, one can
be satisfied with certain elements of a job, feel neutral about some, and be dissatisfied with
others. Elements of a job can also have differing degrees of importance, which can cause
those elements to be weighted differently in assessing overall job satisfaction. According
to Mullins, 2002 some employees may be satisfied with few aspects of their work but
dissatisfied with all other aspects. Likewise, Arnold and Feldman (1996) say that there are
a variety of factors that make people feel positive or negative about their job simultaneously
33 Journal of Management and Social Sciences
Samina Qasim, Farooq-E-Azam Cheema, Nadeem A. Syed
(Arnold and Feldman 1996). "I love my work but hate my boss" or "This place pays lousy,
but the people I work with are great" - are the examples that represent different attitudes
towards separate facets of workers' jobs. Smith (1996) however, very correctly says that
whatever is the degree of satisfaction with the individual facets of a job, ultimately they
accumulate in the form of overall job satisfaction.
Overall satisfaction focuses on the individual's general internal state of satisfaction
or dissatisfaction. Positive internal state is created by positive experiences in terms of
friendly colleagues, good remuneration, compassionate supervisors and attractive jobs.
Negative internal state is created by negative experiences emanating from low pay, less
than stimulating jobs and criticism. Therefore, overall satisfaction or dissatisfaction is a
holistic feeling that is dependent on the frequency and intensity of positive and negative
experiences (Cherrington, 1994).
2.2 Determinants of Job Satisfaction
2.2.1 Work Environment
Work environment plays a vital role since it influences job satisfaction, as employees are
concerned with a comfortable physical work environment that will ultimately renders
more positive level of job satisfaction. (Robbins 2001). Lack of favorable working
conditions, amongst other things, can affect poorly on the worker's mental and physical
well-being (Baron and Greenberg, 2003). According to Arnold and Feldman (1996) factors
such as working hours, temperature, ventilation, noise, hygiene, lighting, and resources
are all part of working conditions. Negative performance will be provoked by poor working
conditions since employees job demand mentally and physically tranquility. Moreover,
they (ibid) warned that if working conditions are two extreme ends i.e. either too favorable
or too extreme, this could be taken for granted or ignored by most employees. Furthermore,
when employees feel that management does not appreciate or acknowledge their efforts
or work done they may use poor working conditions as an excuse to get back at management.
So we hypothesize;
H1: Work environment has high degree of impact on job satisfaction of the employees.
2.2.2 Remuneration
There is no doubt that monetary rewards play a very influential role in determining job
satisfaction. Pay is one of the fundamental components of job satisfaction since it has a
powerful effect in determining job satisfaction. Individual has infinite needs and money
provides the means to satisfy these needs, (Arnold and Feldman 1996). However, there
is no such empirical evidence that asserts that pay alone improves worker satisfaction or
reduces dissatisfaction (Bassett 1994). The author is of the opinion that handsome salary
cannot be the only factor of job satisfaction even highly paid employees may still be
dissatisfied if they do not like the nature of their job. Moreover, a study conducted by
Young, Worchel and Woehr (1998) in the public sector organizations revealed the failure
of any significant relationship between job satisfaction and pay.
However, Boggie (2005) says that poor pay and absence of recognition often
leads to a problem with employee retention. Chung (1977) says that dissatisfaction and
discontent can be the reason if salaries are not market related. Nel, Van Dyk, Haasbroek,
Schultz, Sono, and Werner (2004) also say that employees will compare themselves with
their colleagues in terms of salary and their inputs to their job and may leave an organization
if they are not satisfied and contented. Hence, we suppose;
H2: Remuneration has low degree of impact on job satisfaction of the employees.
Impact of Inflation on Taxes in Pakistan: An empirical study of 2000-2010 period
34 Vol. 8, No. 1, (Spring 2012)
2.2.3 Promotion
There is a consensus among the researchers that job satisfaction is strongly associated to
opportunities for promotion (Pergamit & Veum, 1999; Peterson et al., 2003; Sclafane,
1999). The positive relationship between job satisfaction and promotion is dependent on
perceived equity by employees (Kreitner & Kinicki, 2001). As compared to recognition
and achievement the degree of promotion has a stronger impact on job satisfaction. Locke
(1976) advocates that the aspiration to be promoted emanates from the desire for social
status psychological growth, the desire for justice .Therefore management should
commemorate that promotion furnishes a positive motivating tool in ensuring that the
employee attains goals at a higher level. So we hypothesize,
H3: Job promotion has low degree of impact on job satisfaction of the employees.
2.2.4 Fairness of Treatment
Adams (1965) claimed that in evaluating fairness, individuals first assess the ratio of their
contribution (input) to the resulting economic or social compensation (output) and then
compare the ratio with that of referent others. Receiving comparatively both too much
(overcompensation) and too little (under-compensation) is evaluated as unfair, according
to equity theory. Consequently, individuals try to reduce the unfairness by altering input
(e.g., working less) or output (e.g., stealing from the company). Adam's work is considered
the basis of organizational justice research. However, its popularity was waning by the
mid-1980s (Greenberg, 1990). Along with various methodological criticisms, equity
theory's predictive usefulness was questioned. A main drawback for organizational behavior
researchers was that equity theory does not provide specific predictions about people's
reactions to inequity (Byrne & Cropanzano, 2001). This limitation of equity theory promoted
the shift of emphasis in organizational justice research toward procedural justice.
H4: Fairness has low degree of impact on job satisfaction of the employees.
3.RESEARCH METHODOLOGY
The study is based on linear equation model wherein the variables are as follows:
JB = a + b1 (WE) + b2 (R) + b3 (JP) + b4 (F) + ei
Whereas: JB denotes job satisfaction, WE denotes working environment, R denotes
remuneration, JP denotes job promotion, F denotes fairness and ? denotes the error term.
This study is survey based. The sample comprised 40 people in the organization;
15manager and 25 non-managerial employees. The age and gender factors have been held
constant because no significant differences were observed to exist in this regard. Respondents
were presented a close-ended questionnaire containing 4 factors job satisfaction scale
coupled with Likert Scale in person whereas discussions were also held in the cases which
required some
4.RESULTS
4.1 Regression
In the Table 1 below regression analysis, the value "R" is 0.548 which indicate that there
is positive correlation (linear relationship) between Job satisfaction and Working environment,
Remuneration, Job promotion, and Fairness.
35 Journal of Management and Social Sciences
Samina Qasim, Farooq-E-Azam Cheema, Nadeem A. Syed
Table 1
Model Summary
a. Predictors: (Constant), Working environment, Remuneration, Job Promotion, Fairness.
4.2 Analysis of Variance (ANOVA)
Tabulated in the Table 2 below, ANOVA test results shows that F < 0.05 i.e. Significance
value of F=3.753 which clearly explains that the research model is acceptable and deviation
in the model is not just by chance.
Table 2
ANOVA
b
a. Predictors: (Constant), Working environment, Remuneration, Job Promotion, Fairness.
b. Dependent Variable: Job satisfaction
4.3 Coefficient Analysis
Table 3 below tabulates data on coefficient analysis and outcomes of hypotheses testing.
Table 3
Coefficients
a
4.3.1 Work Environment
Equation for this relationship is: Working environment= -1.367+ 1.130WE, where, WE
is working environment. Statistical result shows remuneration value is insignificant p <
0.05, p = 0.002 and t = -0.764 which shows that working environment had positive impact
on the job satisfaction. The value of beta shows 1unit changes in working condition will
bring -0.764 unit changes in profitability. Hence, H
1
is accepted.
4.3.2 Remuneration
Equation for this relationship is: Remuneration = 1.367-0.303R, where R denotes
remuneration. Outcome shows remuneration value is insignificant p < 0.05, p = 0.764 and
t = -0.303 which shows that Remuneration had negative impact on the job satisfaction.
The value of beta shows 1unit changes in Remuneration will bring -0.303 unit changes
in profitability. Hence, H
2
is accepted.
36 Vol. 8, No. 1, (Spring 2012)
Impact of Inflation on Taxes in Pakistan: An empirical study of 2000-2010 period
Model
1
R
.548
a
R Square
.300
Adjusted R Square
.220
Std. Error of the Estimate
.66239
Model
1 Regression
Residual
Total
Sum of Squares
6.587
15.356
21.944
df
4
35
39
Mean Square
1.647
.439
F
3.753
Sig.
.012
a
Model
1 (Constant)
Working Environment
Remuneration
Job Promotion
Fairness
B
-1.367
1.130
-.070
.239
-.055
Std. Error
1.538
.334
.230
.220
.239
Standardized
Coefficients
Beta
.496
-.062
.229
-.051
t
-.889
3.385
-.303
1.090
-.228
Sig.
.380
.002
.764
.283
.821
Unstandardized
Coefficients
4.3.3 Promotion
Equation for this relationship is: Job Promotion = 1.367+1.090JP, where JP denotes job
promotion. Results show that promotion on the job has insignificant p < 0.05, p = 0.283
and t = 1.090 which shows that job promotion has insignificant impact on the job satisfaction.
The value of beta shows 1 unit change in job promotion will bring 1.090 unit changes in
profitability. Hence, H
3
stood accepted.
4.3.4 Fairness
Equation for this relationship is: Fairness = 1.367 -0.228F, where F= Fairness. According
to the results, the factor of fairness, it is insignificant p < 0.05, p =0.821 and t = -0.228
which shows that Fairness has insignificant impact on the job satisfaction. The value
of beta shows 1 unit changes in job promotion will bring -0.228 unit changes in profitability.
Hence, H
4
stood accepted.
5.4 Correlation Analysis
In the Correlation Matrix below, the independent variable R = 0.522 clearly shows a
positive correlation between work environment and job satisfaction. On the other hand,
remuneration R = 0.146, Job promotion R=, .263, and Fairness R= 0.195 which is close
to zero so it means there is low correlation between these independent variables
(Remuneration, job promotion, fairness ) with job satisfaction .
Table 4
Correlations Matrix
**. Correlation is significant at the 0.01 level (2-tailed).
5.CONCLUSION
The study concluded that in order to gain competitive advantage and adapt to the dramatic
changing environment it is important for the organizations to achieve management efficiency
by increasing employee satisfaction. Among four factors, work environment contributing
with highest magnitude towards the highest level of job satisfaction of a multinational
company's employees of Pakistan. Therefore it is concluded that in order to keep employees
satisfied today, it takes an entirely different approach than it did just a few years ago. Now
days the work environment is the most critical factor in keeping an employee satisfied in
37 Journal of Management and Social Sciences
Samina Qasim, Farooq-E-Azam Cheema, Nadeem A. Syed
AvgF
.195
.229
40
.255
.113
40
.686**
.000
40
.704**
.000
40
1
40
AvgJP
.263
.101
40
.221
.170
40
.646**
.000
40
1
40
.704**
.000
40
AvgR
.146
.369
40
.191
.238
40
1
40
.646**
.000
40
.686**
.000
40
AvgWE
.522**
.001
40
1
40
.191
.238
40
.221
.170
40
.255
.113
40
AvgJS
1
40
.522**
.001
40
.146
.369
40
.263
.101
40
.195
.229
40
AvgJS Pearson Correlation
Sig. (2-tailed)
N
AvgWE Pearson Correlation
Sig. (2-tailed)
N
AvgR Pearson Correlation
Sig. (2-tailed)
N
AvgJP Pearson Correlation
Sig. (2-tailed)
N
Age Pearson Correlation
Sig. (2-tailed)
N
38 Vol. 8, No. 1, (Spring 2012)
Impact of Inflation on Taxes in Pakistan: An empirical study of 2000-2010 period
today's business world. For a growing number of workers, corporate culture is the key
determinant in their choice to stay with an organization long term.
Since the company is working effectively and efficiently and has succeeded in
satisfying its employees at its par excellence therefore there is no such recommendation
for this company instead it will provide a benchmark to other Pakistani organization.
Moreover this company knows how to develop their culture in an effective way and the
quality of work life among the employees. Indeed, employees must absorb the organizational
culture at the maximum strength and the top management should continue to provide a
beacon to motivate the employees in achieving the company's objectives.
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