Effect Of Job Satisfaction On Organizational Performance

A STUDY OF NESTLE PLC, FLOWERGATE FACTORY, SAGAMU

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Abstract

The study examined the effect of job satisfaction on organizational performance. The objectives of the study was to examine the effect of employee pay, promotion and supervision on organizational performance. The population of the study consist of all employees in Nestle Plc, flowergate factory, Sagamu with staff strength of 736. Sample size of 259 was determined using simple random sampling technique with the aid of Taro Yamane formulae. Structured questionnaire was used to gather data for the study. All the data gathered were arranged and presented in textual and tabular form and also analysed using simple percentage. The findings of the study revealed that, all the three variables (employee pay, promotion and supervision) has significant effect on organizational performance. The study therefore concluded that, job satisfaction has significant effect on organizational performance. Based on the conclusion, the study recommends that, the organization should adjust their salary and compensation packages to reflect the current economic realities so as to increase employees’ job satisfaction and overall organizational performance.

Aims and Objectives

The main objective of this study is to examine the effect of job satisfaction on organizational performance. The specific objectives are to:

  1. Examine the effect of Employee Pay on organizational performance
  2. Evaluate the effect of Employee Promotion on organizational performance
  3. Determine the effect of Employee Supervision on organizational performance
Research Questions

The following questions are what the study seeks to find answers to:

  1. What is the effect of Employee Pay on organizational performance?
  2. To what extent does Employee Promotion has effect on organizational performance
  3. Does Employee Supervision has effect on organizational performance?
Chapter One

1.0 INTRODUCTION

1.1 Background to the Study

In its daily operations and activities, every organization aspires to achieve a high level of performance, productivity, and efficiency. Organizations always set a number of goals and objectives to accomplish these, and in order to successfully accomplish these goals, they always look to recruit and retain highly skilled and motivated employees. In order to prevent obstacles from getting in the way of employees’ willingness to generously devote themselves to the pursuit of stated and/or emergent organizational goals, organizations also endeavor to cultivate a pool of satisfied employees. However, the overall performance of the organization depends on how well each employee performs in their role within the company (Onyebuchi, Lucky, & Okechukwu, 2019). In order to achieve high performance, an organization looks to the performance of each individual employee. Ezeanyim, Ufoaroh, and Ajakpo (2019) claim that job satisfaction is an attitude toward work, or an affective or emotional reaction to many aspects of one’s job. Positive attitudes are held by those who have high levels of job satisfaction, whereas negative attitudes are held by those who have low levels of job satisfaction. Employees’ perceptions of how well their jobs supply the things they perceive as important have an impact on how satisfied they are with their jobs (Theresa & Henry, 2016). Additionally, job satisfaction is a complicated assemblage of attitudes, emotions, and cognitive processes. There is no definite way of measuring job satisfaction, but there are varieties of ways to identify when an employee is satisfied or dissatisfied with his or her job (Ezeanyim, et al., 2019).

Understanding the level of employee satisfaction towards their assigned tasks and responsibilities as well as the level of fairness and equity between them will help managers of organization in carrying out their collective responsibilities more effectively. Inuwa (2018), opined that job satisfaction is seen as a combination of positive or negative feelings that workers have towards their work, when an individual is employed in a business organization, the employee brings with it the needs, desires and experiences which determine expectations that he has dismissed. Job satisfaction represents the extent to which expectations are and match the real awards (Aziri, 2021). In most cases today, most employees feel less satisfied with their jobs which result in poor job attitude, thereby affecting the overall performance of the organization. Those who perceive justice in their organization are more likely to feel satisfied with their job and feel less likely to leave and feel more committed to their job (Arti, Kuldeep & Ekta, 2019). Employees should meet the performance criteria set by the organization to ensure the quantity and quality of their work. To meet organizational standards, employees need good pay, periodic promotion and good supervision that allows them to work freely without problems and that can stop them from reaching their full potential (Raziq & Maulabakhsh, 2019). They also need appropriate superior that will provide them with this environment, but above all, he will motivate them to work in the right way, make them feel satisfied with their work. Each employee has different criteria for measuring own job satisfaction. The factor that influences it, is the style of management, but also payments, working hours, schedule, benefits, stress level and flexibility. Job satisfaction is related to productivity, motivation, work performance and life satisfaction (Abuhashesh Al-Dmour & Masa’deh, 2019), which means that this also applies to the private lives of employees. It should be remembered that job satisfaction affects the employee’s feeling of security in the enterprise. A satisfied employee feels better in the company, perform his work better, but above all feels safe when it comes to his future and work in the enterprise. That is why job satisfaction is such an important element in an organization (Wolniak and Olkiewicz, 2019; Niciejewska, 2017).

Organizational performance is the actual production of the organization against the planned one. In most of the cases the performance falls short of the intended or set goals. Su (2014) pointed out three facets onto which performance of any organization can be measured. These facets include; financial productivity, product market performance and shareholder return. All these factors contribute in calculating the performance. Organizational performance is very much depends on perception, values, and attitudes. There appears to be so many variables influencing the job performance that it is almost impossible to make a sense of them (Puskpakumari, 2018). Performance refers to an individual ability, skill and effort in a given situation (Porter & Lawler, 2016). Performance is the outcome of the effort extended to the job by an employee or group of employee.

Therefore, job satisfaction is an essential target for any organization to realize or achieve either in short run or in long run. Low level of job satisfaction generates high employee turnover and the turnover intention is the desire to leave an organization (Saghir, Asad & Ishtiaq, 2020). It also reflected in leaving a department of a company (Abouraia & Othman, 2017). A person with a high level of job satisfaction holds positive attitudes towards his or her job, while a person who is dissatisfied with his or her job holds negative attitudes about the job. Job satisfaction is a result of employees’ perception of how well their job provides those things which are viewed as important. Therefore, job satisfaction depicts an important factor on organization’s performance.

  • Statement of the Problem

Job dissatisfaction and poor attitude to work may be as a result of a feeling of inequality among the employees, poor pay/remuneration, lack of promotion, poor supervision etc,. These factors combined together or separated affect the performance of employees which in turn affect the overall performance of the organization. Many organization is facing sustainability and poor performance problem probably due to job dissatisfaction, poor management or some other factors (Laosebikan, Odepidan, Adetunji, & Aderinto, 2018).

A Dissatisfied employee tends to have a low morale towards the job and when employees’ morale to the job is low; their performance could be affected because he/she will not be motivated to perform well. In other words, if employees feels that the organization does not fulfill their promises or they are not well taken care of, they will become disengaged and less committed which possibly may result to employee leaving the organization (Ezeanyim, Ufoaroh and Ajakpo (2019).

With the aforementioned problems, therefore, this study wants to examine the effect of job satisfaction on organizational performance.

Chapter Two

2.0 LITERATURE REVIEW
2.1 Introduction

The chapter presents a review of related literature that supports the current research on the Effect Of Job Satisfaction On Organizational Performance, systematically identifying documents with relevant analyzed information to help the researcher understand existing knowledge, identify gaps, and outline research strategies, procedures, instruments, and their outcomes

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