THE IMPACT OF JOB

SATISFACTION ON
ORGANIZATIONAL
PERFORMANCE
(ALPHA-MEGA - A RETAIL STORE)
PROJECT TEAM MEMBERS:
Andria Karekla (S20091366)
Durga Dangi (F20082338)
Khiari Tariq (F20092527)
Mehdi Chennour (F20082322)
Okori Tony Okechukwu (F20092566)
Rafiqul Islam Mithun (S2007313)
Uprety Ganesh (F2006758)
HRM Issues – Statement of
Problem
Communication barriers with foreign employees
= dissatisfaction of employees – negative feelings
Work Environment/conditions (repeated job
responsibilities=boredom)
Employee relationships–barriers= age
differences, cultural differences
strong culture established by staff-difficult to
change
Lack of salary increase opportunity
 Information collected –
Alpha mega
Benefits and facilities provided are satisfactory but not
valued (Christmas bonus, personal lockers, change rooms,
staff cafeteria)
Assessment – once every year
Staff meetings every 2 months – presentation of new
developments of the store
Internal promotions-up to supervisors / management
recruited externally
Demographics: 22 to 60 years / 65% Females-35% Males /
75% Locals-25% Foreign
Working conditions: 38 hours per week – 6 days a week
Training: after recruitment-15 days and 2-3 times per year
(safety & regulatory, handling difficult customers/grooming)
Retention: 10 years average
 Introduction
Job satisfaction is a positive emotional state
resulting from evaluating one’s job experiences.
(mathis and Jackson, 2004).

Job satisfaction issues are more evident in

recent research than the past.
Reasons = globalization of the markets,
international competition and limitations in
workforce availability and quality (mathis and Jackson,
2004).
 Introduction
Important to examine
= to facilitate employees work efficiently
= consequently increase employee
performance
= lead to organizational success
Several HRM practices raise workers overall
job satisfaction: ongoing learning, job
autonomy, supervision of work, regular
meetings with employees, valued financial
rewards.
(Petrescu and Simmons,2008)
 Examining Job satisfaction –
Literature Review:
•‘Affect theory’ developed by Edwin. A. Locke (Brief,
A. P., & Weiss, H. M. (2001). This theory supports the fact
that the degree of satisfaction actually depends on
what each individual values at a workplace and if
his/her expectations are met.

•“Psychological contract”, which refers to

employee’s subjective interpretations and
evaluations of their employment deal
(Rousseau, 2001).
 Examining Job
satisfaction
Both theories support that the satisfaction
depends on what employees value and
that retention methods used by the
organization can only be successful if they
are consistent to the values that employees
have.
 Jobsatisfaction / ALPHA _MEGA
Monday , Decem

Recognition

Attitudes

Career Advancement

SupervisionStyles

WorkingConditions

WorkResponsibilities

EmployeeRelationships
JobSatisfaction

Retention
Loyalty Absenteeism
 Recognition
A culture of recognition supports organizations success
(Fina and Ford, 2006) (Nelson, 2004).
Recognition culture encourages positive, innovative
and productive culture (Fina and Ford, 2006)
The employees’ performance increases more with the
non cash incentives than cash (recognition). (Fina and
Ford, 2006) (Nelson, 2004).
38.6% performance improved by non-cash recognition
where only 14.6% by cash (Fina and Ford, 2006)
non-cash awards motivate, engage and retain
employees (Fina and Ford, 2006)
Fina M.C., Ford E.L. (2006). Leveraging recognition: Non-Cash incentives to
improve performance. Accounting &Tax Periodical, Page-19.
 Recognition
A culture of recognition involves little time, resources or
budget (Fina and Ford, 2006) (Nelson, 2004).
Recognition is more effective informally rather than formal
(Nelson, 2004).
Employees dislike formal recognition activities-
 “No pens, pen sets or watches”
 “ No clocks, paperweights or T-shirts”
 “Too many mugs” (Nelson, 2004).
More personalized form of recognition and employees want
them now (Nelson, 2004).
78% employees expect recognition and 73% value
immediately or soon thereafter (Nelson, 2004).
Top ranked recognition activity appraisal: personal, written,
electronic and public (Nelson, 2004)
Nelson B. (2004). Formal recognition program do not work. Industrial and
commercial training, 36(6/7), page-243.
Suggestions/Recommendations
Communicate with employees and
assess their recognition expectations.
Create culture of recognition
Transform recognition program from
formal system to informal system.
ABSENTEEISM

www.wspsmag.com/absenteeism
 CONTRiBUTORS TO
ABSENTEEISM
 Culture

 Lack of challenging job

 Attitude of Supervisor / Management

 Pay structure

 Lack of accountability

 lack of motivation

Kaldenberg Do. The Satisfaction Report newsletter. Volume 3

Suggestions/Recommendati
ons
 Disciplinary approach

 Positive reinforcement

 Combination approach

 “No fault” absenteeism

 Paid time off (PTO) programs.

www.employeeretentionstrategies.com
 Employee relation
Some aspects that can improve Positive employee relations
ER
 positive leadership
 The psychological contract
 working relationships
 the impact of corporate culture on
employees
 information sharing
 designing supportive policies and
procedures  Response seeking

 The organizational success  Employee input into planning

through employees
 Corporative decision making and
 Employee as competitive planning
advantage

www.energex.com.au
Person-Job fit / working
conditions
Working condition= all circumstances affecting labor in the
work place = job hours , physical aspects, legal rights and
responsibilities .
76% currently employed, report that are somewhat to very
likely to begin job search if they perceive an improvement in
the economy and job market. (Job retention poll of the Society for
Human Resource Management 2006)
Meaningful work experiences are critical to employee
engagement, performance and turnover (Tower Perrin, 2003)
Self-verification theory: individuals prefer other individuals
and situations that confirm their self-views. (Swann, 1990) = if
the job fits the person, it will result in meaningful work and
consequently to retention
Suggestions/Recommend
ations
HR managers
Re-design job specifications and identify
valued benefits – feedback from existing
employees and competition
Identify the degree of fit between
applicants and jobs at the recruiting and
selection process
Create career planning activities =
meaningful work experiences
 Career Advancement
Employee capabilities depends on his/her career
development opportunities (Nick Bontis & Alexander
Serenko)
Employee job satisfaction is affected by training and
development (Nick Bontis & Alexander Serenko)
Job satisfaction is directly related to employee’s job
performance
Training and career development positively affect
organizational commitment and intention to stay (Bassi
and Van Buren, 1999; Sheridan,1992; Wood, 1999)
Training is the symbol of the employer’s commitment to
their staff (Storey and Sisson, 1993)
Suggestions/Recommend
ations
Continually develop their employees
skills to bring new and creative ways
of services by creating effective
career advancement opportunities
Increase commitment towards
employee
 What is Employees
Attitude?
An attitude is a hypothetical construct that represents an
individual's degree of like or dislike for an item.
Attitude play vital role for the job satisfaction.
Positive Attitude can be Innovative work for the
organization.
Positive Attitude of employee can make better performance.
Communication with the entire employee may be favorable
for motivation.
Strategic Leadership may affect attitude of Employees
Culture & Climate also change employee attitude.
http://www.nbrii.com/Employee_Surveys/Attitude.html
 What is Employees
Attitude?
Independent Variables Dependent
Supervisor relations Variables
Pay & benefits Overall satisfaction
Work environment
Likelihood to
Corporate
communications
recommend
Likelihood to stay
Employee loyalty

http://www.infosurv.com/employee-opinion-survey.h
ournal of Knowledge Management Vol- 11 No 3 2007 page 35)
 Retentio
•“The ability to hold onto those
n to keep, for
employees you want longer
than your competitors” (Johnson, 2000)
• Factors: attractive financial reward
package, employees’ benefits, career
perspectives, job enrichment, training &
development opportunities, supportive
work environment, work-life balance.
(Mathis & Jackson, 2003; Anderson et al, 2002; Cappelli, 2001; De
Vos & Meganck, 2007)
 Retenti
•According to theon
research of De Vos & Meganck,
2007, manager’s views on which factors contribute
to employee retention were different in importance
compared to the employees’ views.
•The factors identified were the same but in
different level of importance = financial rewards -
ranked as the top reason for voluntary turnover by
managers / employees ranked social atmosphere
and career opportunities as the most important
reasons.
 Suggestions/Recommend
ations
Challenges: diversity of the workforce
(how to handle discrimination) =
training =group work workshops =
enhance positive employee relations
when downsizing=reassure the
employees that remain at the
organization
identify satisfactory facets at the
interviewing stage
 References
1. Mathis R.L., Jackson J.H. (2004). Human Resource Management. Thomson South
Western. Tenth edition- page (91-92).
2. Petrescu A.L., Simmons R. (2008). Human Resource Management practices and
workers’ job satisfaction. International Journal of Manpower. Vol.29 (7), P.651-667.
3. Rousseau, D. M. (2001), “The idiosyncratic deal: Flexibility versus Fairness?”
Organizational Dynamics, Vol.29, pp. 260-73.
4. Johnson, M. (2000) Winning the people war, Talent and the Battle for Human
Capital, London.
5. Anderson, S. E., Coffey, BS and Byerly, R.T. (2002), “Formal Organizational
initiatives and formal workplace practices: links to work-family conflict and job-
related outcomes”, Journal of Management, Vol. 28, pp. 787-810.
6. De Vos, A., Meganck, A. (2007), “What HR managers do versus what employees
value”, Journal of Management, Vol.38, pp. 45-60.
7. Scroggins, W. A., (2008), “The Relationship between employee fit perceptions, job
performance and retention: Implications of Perceived Fit.” Employee Response
Rights, J20: 57-71.
8. Nick Bontis & Alexander Serenko (2007).The moderating role of human capital
management practices on employee capabilities .Journal of knowledge
management, page 31.
9. Fina M.C., Ford E.L. (2006). Leveraging recognition: Non-Cash incentives to improve
performance. Accounting &Tax Periodical, Page-19.
10. Nelson B. (2004). Formal recognition program do not work. Industrial and
commercial training, 36(6/7), page-243.
11. http://www.infosurv.com/employee-opinion-survey.htm
12. http://www.nbrii.com/Employee_Surveys/Attitude.html