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The Impact of Pay Satisfaction and Job Stress on Job Satisfaction in Pakistani
Firms of Gujranwala District

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American Journal of Economics, Finance and Management
Vol. 1, No. 3, 2015, pp. 207-210
http://www.aiscience.org/journal/ajefm

The Impact of Pay Satisfaction and Job Stress on

Job Satisfaction in Pakistani Firms of Gujranwala
District
Rizwan Qaiser Danish1, *, Ahmad Usman Shahid1, Nauman Aslam1,
Ameer Ali2
1
Hailey College of Commerce, University of the Punjab, Lahore, Pakistan
2
Government Islamia College, Civil Lines, Lahore, Pakistan

Abstract
Job is the most important part of life for career growth and financial soundness of a person. If one person is dissatisfied with
the job then he is unable to set any goals and objectives in his professional career. Job Stress diminishes the performance and
effectiveness of the employees at the workplace. The purpose of this study is to examine the impact of pay satisfaction and job
stress over job satisfaction among the managers and employees working in different industrial sectors (Ceramics, Cutlery,
Plastic, Paints, Electronics, Poultry, and Crockery etc.) of Gujranwala, Pakistan. Questionnaire was used to collect the
information from employees, managerial as well as non managerial. Overall 200 questionnaires were distributed among which
180 were received which were useable for a response rate of 90 %. SPSS 17.0 was used to analyze the data. The impact of pay
satisfaction and job stress over job satisfaction is 26.9%. About 11.1% variation in job satisfaction was due to the job stress and
of about 47.8% variation in job satisfaction was due to the pay satisfaction. Results concluded that pay is very important for
job satisfaction while job stress negatively associated with job satisfaction. No doubt stress has a great negative effect on job
satisfaction but if employees get handsome income or pay, it can reduce the bad effect of stress.

Keywords

Pay Satisfaction, Job Stress and Job Satisfaction, Pakistan

Received: April 6, 2015 / Accepted: April 30, 2015 / Published online: May 15, 2015
@ 2015 The Authors. Published by American Institute of Science. This Open Access article is under the CC BY-NC license.
http://creativecommons.org/licenses/by-nc/4.0/

organizational job competitiveness by ignoring the stress

1. Introduction factor which affects their effective working and daily routine
of life.
Employment is the most important constituent of life from
earning perspective and it helps to maintain a living Organizations having high reputation try to provide their
standard. Stress is a situation in which a person has to employees, a favorable and friendly environment where they
perform his task efficiently and effectively under some sort can work productively for the wellbeing of the organization,
of pressure from higher management. Stress is inversely by remaining satisfied with their jobs and by keeping
proportional to job satisfaction and pay satisfaction is directly themselves unstressed (Folkman & Lazarus, 1990). The
proportional to job satisfaction. Lower the stress and higher organizations who do not value their employee finally
the pay satisfaction will lead to more job satisfaction and vice disappear from this universal market of global competition.
versa. Most of the people around the globe, having Various researches have been organized inside and outside
professional competencies, are doing their jobs due to the the country to evaluate the relationship between employee
and employer, peer to peer relationship, extent of job

* Corresponding author
E-mail address: [email protected] (R. Q. Danish)
208 Rizwan Qaiser Danish et al.: The Impact of Pay Satisfaction and Job Stress on Job Satisfaction in Pakistani Firms of
Gujranwala District

satisfaction with the sole purpose of enhancing the employment as well as household responsibilities of the
satisfaction on the job (Hobfoll, 2002). The purpose of this women. (Malik, 2011) studied the stressors in the working
study was to examine and see the relationship between job environments of banking sector in public as well as private
satisfactions, job stress and pay satisfaction among the sector like more work demand in less time raises the conflict
managers and employees of different industries of between top level hierarchy and lower level employees.
Gujranwala, Pakistan. Abdullah, Uli, and Parasuraman, (2009) proposed that there
are some other factor which are relevant to compensation and
2. Literature Review pay like working environment, fellow worker, promotion
system, work with worker and relation with other department
Job satisfaction is used as a key tool to evaluate the employees.Bytyqi, Reshani and Hasani, (2010) in their
effectiveness of organizational health as service quality research observed the extent of work stress, satisfaction with
which depend upon the human capital which is needed to be their jobs, commitment towards their work in an organization
focus to reduced the job stress level of the employees and the effect these work environment measurements have
(Crossman & Abou-Zaki, 2003).Stress is a situation that is upon each other and by this we concluded that there exist a
affected by the external factors which pertains in high level of job satisfaction, organization commitment and
organizational climate it enhances the persons capabilities of work stress among employees working in a specific
efficiently performance of their tasks according to the environment.
required resources and this efficiency depend upon the
justified reward system which the employees expects after Khalid and Irshad, (2010) examined the constituents of job
accomplished their organizational objectives. (McGrath, satisfaction which are performance, pay, promotion,
1976). remuneration, and appreciation besides overall job
satisfaction, their results concluded that employees working
For the measurement of pay satisfaction, we observed its private sector banks were more gratified with their salary,
various dimensions, specifically satisfaction with pay rises, acknowledgement, and working hours as compared to
benefits, incentives structure and remuneration increment employees of public sector banks, whereas the employees of
level. (Currall, Towler, Judge, & Kohn, 2005) proposed that public sector banks were happy with the security of their jobs.
four dimensions of job satisfaction are individually Ram, Khoso, Shah, Chandio and Shaikih, (2011) found that
associated with organizational outcomes. Previous studies majority of the managers who were employed at different
proposed a relationship between pay satisfaction and the organizations were under stress, their results showed that 80%
expected outcomes at the organizational level. The of the workers are not able to entirely employ their abilities
investigation of (Schneider, Hanges, Smith, & Salvaggio, because of the stress.
2003) combined the survey of job satisfaction and
organizational financial performance, they used longitudinal Malik (2011) observed different factors in his studies which
data that allowed the authors to examine the relationship includes surplus work, undefined role, conflict of role and
between satisfaction and performance whether there exist a absence of higher management support in the organization
causal relation or correlation. (Ahsan, Abdullah, Fie, & Alam, contribute towards professional stress. Heneman and Judge
2009) confirmed with their studies that satisfaction level of (2000) concluded, “Research has unambiguously shown that
the employees is associated with job stress if employees are pay dissatisfaction can have significant and undesirable effect
satisfied with the management workload, allocation of duties on numerous employee outcomes”. Previous researches
and their way of performance appraisal then job stress level defined Pay satisfaction as the amount of overall positive
of employees is minimal in that organizations. According to affect (or feelings) individuals have towards pay.
(Opeke, 2002), female employees are progressively leading Reinforcement theory proposed by (Skinner, 1953) which
the organizations and they are not only working in the suggests that pay is associated with the performance of the
operational level but now also involved in top level employees and used as supporting tool because with the help
management and efficiently making the strategic decisions. of it one can achieve its primary objectives.
Now world become global street but still women faces
discrimination obstacle of male and female in the workplace. 3. Methodology
Females are now actively participated in all the professions
and according to the May, 2000 Beijing Platform for Action 3.1. Sample
women facing the different obstacles in all the fields such as The target population of the study was managers and
work empowerment pay rate and working environments, employees of different industries of Gujranwala, Pakistan
education, heirloom rights, promotion opportunities, and sample size of the population was 180. The data is
 American Journal of Economics, Finance and Management Vol. 1, No. 3, 2015, pp. 207-210 209

gathered through closed ended questionnaire as a tool of satisfaction. The scale which has been used for the
survey instrument which is distributed among the measurement of job satisfaction and job stress indicate 1
respondents. 180 questionnaires were received from the “strongly disagree”, 2 “disagree” , 3 “ neutral” , 4 “agree” , 5
respondents of the different industries which are selected as a “strongly agree” and for the measurement of pay satisfaction
sample of the study. The sample size is taken from different 1 “strongly dissatisfied”, “dissatisfied”, 3 “neutral” 4
sectors for the purpose of taking diversification regarding the “satisfied”, 5 “strongly satisfied”.
job stress and pay satisfaction. The respondents in our sample
size of the study were 19% female and 81% male.
4. Theoretical Framework
3.2. Instrument Development
In this diagram Job satisfaction is dependent variable and Pay
The composition of the instruments is basically it is divided satisfaction and Job stress are the independent variables as
into three parts. The first part deals with pay satisfaction, shown in figure 1.0.
second part deals with job stress and third part deals with job

Figure 1.0. Theoretical framework

questionnaire that the majority of managers are satisfied with

5. Hypotheses their job pay and organizational environment but conversely
there are few employees which are satisfied with their jobs it
On the basis of above literature following hypotheses can be
means we can say that job satisfaction increases with the
developed;
increase of designation of employees.
H1: There exist a relationship between pay satisfaction and
In demographical section 81% respondents were from male
job satisfaction
and 19% were from female respondents. Respondents from
H2: There exist a relationship between job Stress and job the age class of 25-29 were 46.4% and respondents
satisfaction. responded very little in number from the age group of 40 or
above which comprises of 9.4%. 42% respondents are
married and 58% respondents belong to single class. 26.5%
6. Data Analysis
respondents are having 2-3 years working experience while
The study was conducted on 40 managers and 140 employees the respondents having more than 10 years’ work experience
to evaluate the job satisfaction level in the organizations. We responded very little in number i.e. 9.9%.
deduce after the evaluation of the variables of the
Table 1. Mean and correlations

Mean Standard Deviation Job Satisfaction Pay Satisfaction Job Stress

Job Satisfaction 3.31 0.481 1
Pay Satisfaction 3.22 0.525 .516** 1
Job Stress 3.05 0.619 -.277** -.346** 1

Table 1 explain that the Pearson co-relation between job Table 2 shows the model summary which explains that Co-
stress is weakly negatively co-related and job satisfaction is efficient of co-relation is 0.526 and co-efficient of
weakly negatively co-related (i.e. -.277). Pay satisfaction is determination is 0.277 and adjusted R square which is the
moderately positively co-related with job satisfaction (i.e. most refined form of co-efficient of determination is 0.269.
0.516). Job stress and pay satisfaction are moderately The impact of pay satisfaction and job stress over job
negatively co-related with each other with the value of (- satisfaction is 26.9% and other variables that affect job
.346). The data which we have retrieved is having zero satisfaction are related to environmental, social, workplace
significance level, which we can see from 1-tail test in table 1. and political factors. About 11.1% variation in job
210 Rizwan Qaiser Danish et al.: The Impact of Pay Satisfaction and Job Stress on Job Satisfaction in Pakistani Firms of
Gujranwala District

satisfaction was due to the job stress and of about 47.8% satisfaction level is not much high and the pay satisfaction is
variation in job satisfaction was due to the pay satisfaction as negatively co related in this case. As in job stress if stress is
shown in table 2. high the satisfaction level is low and result is also negative.

Table 2. Model Summary

Adjusted R Std. Error of the

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