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CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
Job satisfaction does not seem to reduce absence, turnover and perhaps accident
rates.
-Robert L. Kahn
Job satisfaction is a general attitude towards ones job: the difference between the
amount of reward workers receive and the amount they believe they should receive.
-P. Robbins
Job satisfaction defines as The amount of over all positive affect (or feeling) that
individuals have toward their jobs.
-Hugh J. Arnold and Daniel C. Feldman
Job satisfaction is the amount of pleasure or contentment associated with a job. If
you like your job intensely, you will experience high job satisfaction. If you dislike
your job intensely, you will experience job dissatisfaction.
-Andrew J DuBrins,
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Job satisfaction is not the same as motivation. It is more if an attitude, an
internal state of the person concerned. It could, for example, be associated with a
personal feeling of achievement. Job satisfaction is an individuals emotional
reaction to the job itself. It is his attitude towards his job (Donely, Ivan Cevhic,
Gibson, 1989).
2.2 Independent Variables of Job Satifaction
According to Soeprihanto, John. (1988) Job satisfaction is a complex concept
and difficult to measure objectively. The level of job satisfaction is affected by a
wide range of variables relating to individual factors, social factors, organizational
factors, environmental factors and leadership factors as shown below:-
Individual Factors
Personality Education Gender Age Marital Status and No. of Dependents Tenure Emotions Genetics
Social Factors
Relationship with Co-workers Psychological
Organizational Factors
Pay Company Policies Nature of Work Supervision Recognition and Rewards
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Environmental Factors
Working Conditions Communication Overload and Communication Underload
Superior-subordinate Communication
Leadership Factors
Participative Leadership Style Democratic Leadership Style Autocratic Leadership Style Bureaucratic Leadership Style
2.3 Individual Factors
Individuals have certain expectations from their jobs. If their expectations are
met from the jobs, they feel satisfied. These expectations are based on an
individuals level of education, age and other factors. Dessler, Gark, (1999).
2.3.1 Personality
Some research suggests an association between personality and job
satisfaction. Specifically, this research describes the role of negative affectivity and
positive affectivity. Negative affectivity is related strongly to the personality trait of
neuroticism. Individuals high in negative affectivity are more prone to experience
less job satisfaction. Positive affectivity is related strongly to the personality trait of
extraversion. Those high in positive affectivity are more prone to be satisfied in most
dimensions of their life, including their job. Differences in affectivity likely impact
how individuals will perceive objective job circumstances like pay and working
conditions, thus affecting their satisfaction in that job (Brief, A. P., & Weiss, H. M.,
2002).
There are two personality factors related to job satisfaction, alienation and
locus of control. Employees who have an internal locus of control and feel less
alienated are more likely to experience job satisfaction, job involvement and
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organizational commitment. A meta-analysis of 135 studies of job satisfaction
concluded that there is a positive relationship between internal locus of control and
job satisfaction. The study also showed characteristics like high self-esteem, self-
efficacy and low neuroticism are also related to job satisfaction (Schultz & Schultz,
Duane, 2010).
According to Ellickson and Logsdon (2001), the second most commonly
investigated source of variation in job satisfaction pertains to the socio-demographic
characteristics of the employees themselves. Many researchers also believe that
individual attributed serve to moderate the relationship between the environmental
factors and job satisfaction. The present study posited that the profile of the
employees as moderating variables are equally important with that of the
independent variables specifically in testing the variation in job satisfaction. Also,
profile of employees served as the basis for testing the acceptance and rejection of
the hypothesis. The profile includes age, gender, civil status, educational attainment,
position, length of stay/service, and service location.
Robbins (1989, p. 51) defines personality as the sum total of ways in which
an individual reacts and interacts with others. Research indicates that some people
are predisposed by virtue of their personality to be more or less satisfied despite the
changes to their working environment and other factors (Aamodt, 2004; Johns,
1996).
This idea can apparently be traced back to the Hawthorne studies, which
found that certain people were continually complaining about their jobs (Spector,
1996). No matter what the researchers did, the participants found a reason to
complain. They concluded that their dissatisfaction is a product of their personality.
Thus one way to increase the overall level of job satisfaction in an organisation is to
recruit applicants who show high levels of overall job and life satisfaction (Aamodt,
2004).
Schneider and Dachler (1978) as cited by Spector (1996) also found that job
satisfaction seemed stable over time and that it might be the product of personality
traits. This view holds some truth in that people with a negative tendency towards
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life would most likely respond negatively to their jobs even if their jobs changed
(Atchison, 1999). The author further advances that many organisations spend much
time trying to turn these negative people around. In these cases, the best
organisations could do is to keep these individuals from affecting the rest of their
employees. On the other hand, people with a positive inclination towards life, would
most probably have a positive attitude towards their job as well.
Aamodt (2004), however, notes that findings on the personality-job
satisfaction relationship are controversial and have received some criticism, therefore
more research is needed before firm conclusions can be drawn. Spector (1997)
further indicates that most research on the personality-job satisfaction relationship
has only demonstrated that a correlation exists, without offering much theoretical
explanations.
2.3.2 Education
Level of education of an individual is a factor which determines the degree of
job satisfaction. For example, several studies have found negative correlation
between the level of education, particularly higher level of education, and job
satisfaction. The possible reason for this phenomenon may be that highly educated
persons have very high expectations from their jobs which remain unsatisfied. In
their case, Peters principle which suggests that every individual tries to reach his
level of incompetence, applies more quickly (Dessler, Gark, 1999).
Another study was conducted by Rivera (2003) on the Dimensions of Work
Ethics and its Relationship with Job Satisfaction Factors: The Case of NBI, on the
overall, clerical and non-clerical employees have expressed a moderate level of
satisfaction in their work and that the demographic profile of the respondents such as
age, civil status, length of service and nature of work did not significantly influence
their job satisfaction as well as the performance. The researcher found out that the
higher educational level does not necessarily mean greater job satisfaction. This may
be due in part to increase expectations prompted by higher levels of education.
Exceptions to this trend may be found at the level of graduate education, especially
at the doctoral and post-doctoral levels in medicine and other disciplines.
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2.3.3 Gender
More and more women are entering the workforce and it has become
important to understand how men and women might differ in their job attitudes.
There is a large body of research explaining the gender-job satisfaction relationship.
However, research in this regard has been inconsistent. Some literature reports that
males are more satisfied than females, others suggest females are more satisfied and
some have found no differences in satisfaction levels based on gender.
According to Spector (2000), most studies have found only a few differences
in job satisfaction levels amongst males and females. Studies conducted by Loscocco
(1990) indicated that female employees demonstrated higher levels of job
satisfaction than male employees across different settings. This author purports that
most women value rewards that are readily available to them, such as relationships
with co-workers. It therefore becomes easier for them to experience job satisfaction.
Male employees on the other hand, most likely desire things like autonomy and
financial rewards which are not as readily available. This might result in lower levels
of job satisfaction.
A study by Alavi and Askaripur (2003) amongst 310 employees in
government organizations, found no significant difference in job satisfaction among
male and female employees. Carr and Humans (1988) research is consistent with
this view. These authors investigated a sample of 224 employees at a textile plant in
the Western Cape and found no significant relationship between gender and
satisfaction. Furthermore, Pors (2003) conducted a study including 411 Danish
library managers and 237 library managers from the United Kingdom and concluded
that there is no overall difference in job satisfaction in relation to gender. A possible
explanation is offered by Tolbert and Moen (1998), who maintain that men and
women attach value to different aspects of the job. This therefore makes it difficult to
measure differences in job satisfaction based on gender.
On the other hand, a study conducted by Okpara (2004) which involved 360
Information Technology managers in Nigeria, indicated that female employees are
less satisfied than their male counterparts - specifically with pay, promotion and
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supervision. According to Okpara (2004), this finding may be attributed to higher
educational levels of women in this sample. The author postulates that higher
education levels raise expectations about status, pay and promotion and if these
expectations are not met, they might experience lower levels of satisfaction.
2.3.4 Age
Individuals experience different degree of job satisfaction at different stages
of their life. Job satisfaction is high at the initial stage, gets gradually reduced, starts
rising upto certain stage, and finally dips to a low degree. The possible reasons for
this phenomenon are like this. When individuals join an organization, they may have
some unrealistic assumptions about what they are going to drive from their work.
These assumptions make them more satisfied. However, when these assumptions fall
short of reality, job satisfaction goes down. It starts rising again as the people start to
assess the jobs in right perspective and correct their assumptions. At the last,
particularly at the fag end of the career, job satisfaction goes down because of fear of
retirement and future outcome (Dessler, Gark, 1999).
While research has yielded mixed evidence on the influence of age on job
satisfaction, most studies suggest a positive correlation, that is, older workers tend to
be more satisfied with their jobs than younger workers (Okpara, 2004; Rhodes, 1983
as quoted by Kacmar & Ferris, 1989; Saal & Knight, 1988). Numerous explanations
may be presented to explain the positive correlation between age and job satisfaction
(Okpara, 2004):
Older employees have adjusted to their work over the years, which maylead to higher satisfaction.
Prestige and confidence are likely to increase with age and this could resultin older employees being more satisfied.
Younger employees may consider them more mobile and seek greenerpastures, which could lead to lower satisfaction levels.
Younger employees are more likely to hold high expectations of their jobsand if these expectations are not met, they may experience lower
satisfaction levels.
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However, in contrast to this, other studies found that age does not
significantly explain the variance in job satisfaction levels (Alavi & Askaripur, 2003;
Carr & Human, 1988; Kacmar & Ferris, 1989; Siu, 2002).
2.3.5 Marital Status and No. of Dependents
Research has consistently found that married employees are more satisfied
with their jobs than their un-married co-workers (Chambers, 1999; Loscocco, 1990;
Robbins et al., 2003). Chambers (1999) in particular, found that married employees
experienced increased satisfaction with pay, work, supervision and co-worker
subscales of the JDI. A possible explanation is provided by Robbins (1989). He
purports that marriage imposes increased responsibilities which might make a steady
job more valuable, hence increasing their satisfaction. However, Robbins et al.
(2003) note that the available research only distinguishes between being single and
married. Divorcees, couples who cohabit and the widowed have been excluded from
research and these are in need of investigation.
Furthermore, a study by Alavi and Askaripur (2003) reported no significant
difference in job satisfaction and its five dimensions among single and married
personnel. Researchers are therefore in disagreement concerning the relationship
between marital status and job satisfaction.
Robbins (1989) purports that there is strong evidence suggesting a positive
relationship in between the number of dependents and job satisfaction. This implies
that the higher the number of dependents an employee has, the higher the job
satisfaction is likely to be. A possible explanation could be that employees with more
children are probably older and longer in their jobs. They might therefore have
adapted to their work situations, hence the increase in job satisfaction. Studies by
Alavi and Askaripur (2003) amongst employees in government organizations
reported no statistically significant relationship between the number of dependents
and job satisfaction. Research in this area is, however, limited.
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2.3.6 Tenure
According to Saal and Knight (1988), research suggests that tenure is likely
to influence job satisfaction. Literature overwhelmingly indicates a positive
correlation between tenure and job satisfaction, that is, employees with longer job
experience are more satisfied compared to those with fewer years of experience
(Bilgic, 1998 as cited by Okpara, 2004; Jones-Johnson & Johnson, 2000; Staw,
1995). Okpara (2004) provides an explanation for this positive correlation and
advances that employees settle into their jobs over time, which leads to an increase in
organizational commitment and job satisfaction. Furthermore, Robbins (1989)
maintains that the longer an employee holds a job, the more they tend to be satisfied
with the status quo.
Lambert, Hogan, Barton and Lubbock (2001) on the other hand argue that
there is an inverse relationship between tenure and job satisfaction. Hence, longer
tenured employees are less satisfied than those who have been in the organization for
shorter periods. A possible explanation could be that employees, who hold the same
jobs over a long period of time, may become bored and experience lower levels of
satisfaction.
Another view is provided by Alavi and Askaripur (2003). The authors
conducted a study amongst 310 employees in government organizations and found
no significant difference in job satisfaction amongst employees based on their years
of service. Research in this regard is thus contradictory.
2.3.7 EmotionsMood and emotions form the affective element of job satisfaction. Moods
tend to be longer lasting but often weaker states of uncertain origin, while emotions
are often more intense, short-lived and have a clear object or cause (Weiss HM,
Cropanzano R., 1996).
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Some research suggests moods are related to overall job satisfaction (Weiss
HM, Nicholas JP, Daus CS., 1999). Positive and negative emotions were also found
to be significantly related to overall job satisfaction (Fisher D., 2000).
Frequency of experiencing net positive emotion will be a better predictor of
overall job satisfaction than will intensity of positive emotion when it is experienced
(Fisher D., 2000).
Emotion work (or emotion management) refers to various types of efforts to
manage emotional states and displays. Emotion management includes all of the
conscious and unconscious efforts to increase, maintain, or decrease one or more
components of an emotion. Although early studies of the consequences of emotional
work emphasized its harmful effects on workers, studies of workers in a variety of
occupations suggest that the consequences of emotional work are not uniformly
negative (Pugliesi K., 1999).
It was found that suppression of unpleasant emotions decreases job
satisfaction and the amplification of pleasant emotions increases job satisfaction
(Cote S.,Morgan LM, 2002).
2.3.7.1 Emotion regulation model
The understanding of how emotion regulation relates to job satisfaction
concerns two models:
2.7.3.1.1 Emotional dissonance model.
Emotional dissonance is a state of discrepancy between public displays of
emotions and internal experiences of emotions (Ashforth, B. E., & Humphrey, R. H.,
1993 & Rafaeli, A., & Sutton, R. I., 1989). that often follows the process of emotion
regulation. Emotional dissonance is associated with high emotional exhaustion, low
organizational commitment, and low job satisfaction (Abraham, R., 1999 & Morris,
J. A., & Feldman, D. C., 1997).
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2.7.3.1.2 Social interaction model
Taking the social interaction perspective, workers emotion regulation might
beget responses from others during interpersonal encounters that subsequently
impact their own job satisfaction. For example: The accumulation of favorable
responses to displays of pleasant emotions might positively affect job satisfaction
(Cote S.,Morgan LM, 2002).
2.3.8 Genetics
It has been well documented that genetics influence a variety of individual
differences (Rowe, D. C., 1987). Some research suggests genetics also play a role in
the intrinsic, direct experiences of job satisfaction like challenge or achievement (as
opposed to extrinsic, environmental factors like working conditions). One
experiment used sets of monozygotic twins, reared apart, to test for the existence of
genetic influence on job satisfaction. While the results indicate the majority of the
variance in job satisfaction was due to environmental factors (70%), genetic
influence is still a minor factor. Genetic heritability was also suggested for several of
the job characteristics measured in the experiment, such as complexity level, motor
skill requirements, and physical demands (Arvey, R. D., Bouchard, T. J., Segal, N.
L., & Abraham, L. M., 1989).
2.4 Social Factors
2.4.1 Relationship with co-workers
Another dimension which influences job satisfaction is the extent to which
co-workers are friendly, competent and supportive (Robbins et al., 2003). Research
indicates that employees who have supportive co-workers will be more satisfied with
their jobs (Aamodt, 2004; Robbins, 1989; 2005). This is mainly because the work
group normally serves as a source of support, comfort, advice and assistance to the
individual worker (Luthans, 1995, p. 127).
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Researchers further found that employees observe the levels of satisfaction of
other employees and then model these behaviors (Salancik & Pfeffer, 1997 as cited
by Aamodt, 2004). Hence, if an organizations veteran employees work hard and talk
positively about their jobs, new employees will model this behavior and be both
productive and satisfied. The reverse can also be true.
Johnston (2000) also cited that job satisfaction and employee retention are
directly linked to the quality of an employees relationships. Emphatic and
available human resource professionals are in a unique position not only empower
employees solve personal and professional problems, but, through their interpersonal
skills, help their company save thousands of dollars that would otherwise be spent in
employment-related legal fees. The trick in dealing with problem employees is not
putting a bandage on their boo-boos when they cry, but rather help them learn how to
heal their own. Not only this help them mature, it will leave you with the energy at
the end of the day to deal with children you want to take care ofthe ones at home.
2.4.1.1 Group working
Individuals work in group either created formally of they develop on their
own to seek emotional satisfaction at the workplace. To the extent such groups are
cohesive; the degree of satisfaction is high. If the group is not cohesive, job
satisfaction is low. In a cohesive group, people derive satisfaction out of their
interpersonal interaction and workplace becomes satisfying leading to job
satisfaction. Robbin, Stephen ,P (1999).
2.4.1.2 Workplace friendship
According to Fehr (1996), friendship is a voluntary, personal relationship
typically providing intimacy and assistance (p. 20). The definitions of WF,
however, are distinct from general types of friendship because workplace friendship
is focused on friendship occurred in the workplace (Song, 2005). Berman et al.
(2002) define workplace friendship as nonexclusive voluntary workplace relations
that involve mutual trust, commitment, reciprocal liking and shared interests and
values (p. 218). WF is a phenomenon that is beyond mere behaviours engaged in
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friendly ways among people in an organization; there should be trust, liking, and
shared interests or values rather than being only mutual acquaintances (Berman et
al., 2002, p.218).
Workplace friendship has been considered valuable for both individuals and
organizations. According to Fine (1986), WF increases support and resources that
help individuals to accomplish their job, reduce work stress, and provide increased
communication, cooperation, and energy. Hamilton (2007) also suggested that when
in a friendship at work, people might feel comfortable with their workplace friends
and reduce feelings of insecurity and uncertainty. They also share more information
and empathies with workplace friends about work-related problems and concerns.
Jehn and Shah (1997) further argued that employees in a friendship exchange words
of encouragement, confidence, trust, respect, and critical feedback, which may
increase enthusiasm and a positive attitude.
Based on these functional values of WF, previous empirical research in
psychology, sociology, and management commonly revealed that WF can influence
employees work-related attitudes, intentions, and behaviours such as job
satisfaction, OCB, job performance, turnover intention, and absenteeism (Riordan &
Griffeth, 1995; Ross, 1997). Dotan (2007) suggested that when employees have
trustful friends at work, they can get help or advice from their friend co-workers and,
therefore, gain feelings of security, comfort, and satisfaction with their job at work.
Also, employees in friendship tend to engage in altruistic behaviours by
providing co-workers with help, guide, advice, feedback, recommendation, or
information on various work-related matters (Hamilton, 2007). This aspect of WF as
a source of work assistance is linked to the altruism dimension of OCB. Research
further suggested that WF may enhance organizational performance because
employees in friendships like to help each other with tasks, communicate with
morale-building behaviours, have few communication difficulties and thus can
increase their effort and rate of production (Bandura, 1982). Additionally, research
has shown that individuals who have a close friend at work are less likely to be
absent or leave the organization than individuals who do not because they gain a
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sense of belongingness and obligation to the workplace friends who have accepted,
understood, and helped them at work (Morrison, 2004; Sias & Cahill, 1998).
2.4.2 Psychological
Psychological well-being (PWB) is defined as the overall effectiveness of an
individuals psychological functioning as related to primary facets of ones life:
work, family, community, etc (Wright, T. A., & Cropanzano, R., 2000). There are
three defining characteristics of PWB. First, it is a phenomenological event, meaning
that people are happy when they subjectively believe themselves to be so. Second,
well-being involves some emotional conditions. Particularly, psychologically well
people are more prone to experience positive emotions and less prone to experience
negative emotions. Third, well-being refers to one's life as a whole. It is a global
evaluation (Wright, T. A., & Cropanzano, R., 2000). PWB is primarily measured
using the eight-item Index of Psychological Well-Being developed by Berkman
(IPWB). IPWB asks respondents to reply to a series a questions on how often they
felt pleased about accomplishing something, bored, depressed or unhappy, etc
(Wright, T. A., & Cropanzano, R., 2000).
Psychological well-being (PWB) in the workplace plays an important role in
determining job satisfaction and has attracted much research attention in recent years
(Baptiste, N. R., 2008). These studies have focused on the effects of PWB on job
satisfaction as well as job performance (Robertson, I. T., Birch, A. J., & Cooper, C.
L., 2012). One study noted that because job satisfaction is specific to ones job, the
research that examined job satisfaction had not taken into account aspects of ones
life external to the job (Wright, T. A., Cropanzano, R., & Bonett, D. G., 2007). Prior
studies had focused only on the work environment as the main determinant of job
satisfaction. Ultimately, to better understand job satisfaction (and its close relative,
job performance), it is important to take into account an individuals PWB. Research
published in 2000 showed a significant correlation between PWB and job
satisfaction (r = .35, p < .01) (Wright, T. A., & Cropanzano, R., 2000). A follow-up
study by the same authors in 2007 revealed similar results (r = .30, p < .01) (Wright,
T. A., Cropanzano, R., & Bonett, D. G., 2007). In addition, these studies show that
PWB is a better predictor of job performance than job satisfaction alone.
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2.5 Organizational Factors
2.5.1 Pay
Pay refers to the amount of compensation received for a specific job
(Robbins et al., 2003). Luthans (1995, p. 127) notes that wages and salaries are
recognized to be a significant, but complex, multidimensional predictor of job
satisfaction. According to Spector (1997) and Berkowitz (1987), the correlation
between the level of pay and job satisfaction tends to be surprisingly small. This
suggests that pay in itself is not a very strong factor influencing job satisfaction.
Berkowitz (1987, p. 545) notes that there are other considerations, besides
the absolute value of ones earnings that influences attitudes toward satisfaction with
pay.
Spector (1996, p. 226) postulates that it is the fairness of pay that determines
pay satisfaction rather than the actual level of pay itself. If an employees
compensation is therefore perceived to be equitable, when compared to another
person in a similar position, satisfaction might be the likely result. Atchison (1999)
however, points out that an increase in pay only acts as a short-term motivator and
management therefore has to look at other ways to increase the levels of job
satisfaction.
Wages do play a significant role in determining of satisfaction. Pay is
instrumental in fulfilling so many needs. Money facilities the obtaining of food,
shelter, and clothing and provides the means to enjoy valued leisure interest outside
of work. Moreover, pay can serve as symbol of achievement and a source of
recognition. Employees often see pay as a reflection of organization. Fringe benefits
have not been found to have strong influence on job satisfaction as direct wages
(Hani T Handoko, 1996).
Pay has long been considered one of the most important organizational
rewards because it allows employees to obtain other rewards. Frederick Taylor
(1911) was one of the earliest to recognize the motivating effects of pay when he
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proposed that workers put forth extra effort on the job to maximize their economic
gains.
Although this premise lost favor in the late 1920s with the emergence of the
human relations school (Wren, 1994), money remains the fundamental way that
organizations reward employees. Yet, despite the long-standing importance of pay,
the way pay impacts the behavior of employees remains to be explained.
Reinforcement theory and expectancy theory emerged as the earliest theories
to shed some light on how pay influences employee behavior. Reinforcement theory
(Skinner, 1953) suggests that pay acts as a general reinforcer because of its repeated
pairing with primary reinforcers. People learn from life experiences that a primary
need, such as food or shelter, can be satisfied if money is obtained. Other theorists
suggest that through similar experiences a drive for money itself develops (Dollard
& Miller, 1950). Whether treating pay as a means to an end or as an end itself,
reinforcement theory does not provide a clear explanation for how pay acts as an
impetus for action. People engage in behaviors because of past experiences, but the
process by which past experiences determine an individuals future behavior
remained unclear.
Vrooms (1964) expectancy theory helped clarify how pay influences future
behavior. According to expectancy theory, three components determine motivation:
A judgment regarding the likelihood that an effort leads to a certain levelof performance (expectancy)
A judgment regarding the likelihood that this level of performance leadsto a certain outcome (instrumentality)
The importance of the outcome to the individual (valence).
Life experience, the key determinant of behaviour as suggested by
reinforcement theory, influences the determination of both expectancy and
instrumentality. If an individual has prior experience which leads him or her to
believe that a certain level of effort will lead to a given level of performance and that
this level of performance will lead to a given outcome, that person will be more
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likely to engage in that behaviour, if the outcome is desirable (high valence). Vroom
(1964) suggests that pay motivates behaviour only if valued by the employee or if
pay allows individuals to obtain some other highly valued outcome.
It was assumed an individual has a general feeling about his or her pay and
that this overall feeling is an important determinant of the individuals attitudes and
behaviours (Lawler, 1971). Equity and discrepancy theories offer insight into how
pay satisfaction is determined and suggests possible consequences of pay
dissatisfaction.
According to Luthans (1989) revealed that salary is the significant factor in
job satisfaction. Money not only helps people attain their basic needs, but it is
instrumental in providing upper-level needs satisfaction. Employees often see pay as
a reflection of how management views their contribution to the organization.
Leveriza (1995) cited in his book that whether in private business or in the
government, the most significant of a job to a worker is the income he derived from
it. There, indeed, may be other vital elements of satisfaction attached to the position
or the work process itself but generally a worker would not be in his job unless he
earns something out of it for his subsistence.
On the other hand, Syptak et.al. (1999) pointed out that old adage you get
what you pay for tends to be true when it comes to staff members. Salary is not a
motivator for employees, but they do not want to be paid fairly. If individuals believe
they are not compensated well, they will be unhappy working for you.
Luthans (1989) viewed fringe benefits are also important, but they are not as
influential. One reason undoubtedly is that most employees do not even know how
much they are receiving in benefits. Moreover, most tend to undervalue these
benefits because they cannot see their practical value.
Zulueta (2002) claims that it is always presumed that happy and satisfied
workers in any kind of organization are productive workers. Their attitudes
behaviours and job satisfaction are very important to the organization, for the desired
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goals and objectives to be realized. However, job satisfaction and human behaviour
have been association with organizational problems and issues and have been the
focal point of deliberate efforts toward improving workers performance and
productivity. It cannot be denied that any type of connected and related to some of
the encouraging outcomes that the managers want.
2.5.2 Company policies
Jimfrase and his collegues propose that the culture of the workplace is the
foundation from which workers develop an assessment of appropriate organizational
behavior (Jimfrase & Co,2002). And their qualitative analysis highlights that the
perceived gap between organizational norms and their actual implementations
creates a deeply felt discontent for many workers from a number of social groupings.
Harris and Mossholder (1996) point out that organizational culture stands as
the center from which all other factors of human resource management derive. It is
believed that culture influences individuals attitudes concerning outcomes, such as
commitment, motivation, morale, and satisfaction. Wallach (1983) has suggested that
individual job performance and favorable job outcomes, including job satisfaction,
propensity to remain with the organization, and job involvement, depend upon the
match between an individuals characteristics and the organizations culture.
A study conducted by Jill L. Mckinnon and co in Taiwan (2003) indicates
that there is a quite compelling support for the importance of organizational culture
in affecting job-satisfaction.
Odom, Boxx, and Dunn (1990), found that the bureaucratic culture neither
improves nor distracts an employees commitment and satisfaction. They also found
that employee attitudes and behaviors are enhanced by an organizational culture that
exhibits innovative characteristics. Additionally, they found that employees who
work in a supportive environment express more job-satisfaction.
One factor related to job satisfaction is the extent to which employees
perceive that they are being treated fairly (Aamodt, 2004). According to Robbins
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(1989), employees seek for policies and systems that they perceive to be fair as this
will likely result in an increase in job satisfaction.
Johns (1996) distinguishes between distributive fairness and procedural
fairness. Distributive fairness is perceived fairness of the actual decisions made in an
organisation. If employees perceive that decisions are made in a fair manner, they are
likely to express satisfaction with their jobs (Robbins, 2005).
Procedural fairness on the other hand, occurs when the processes to
determine work outcomes/decisions are perceived to be reasonable. According to
Johns (1996, p. 142), procedural fairness is particularly relevant to outcomes such
as performance evaluations, pay raises, promotions, layoffs and work assignments.
Hence, if the processes used to arrive at for example, promotion decisions are
perceived to be fair, it could lead to job satisfaction. Aamodt (2004) states that the
relationship between perceptions of justice and job satisfaction is very strong, hence
employers should be open about how decisions are made and provide feedback to
employees who might not be happy with certain important decisions.
2.5.3 Nature of work
Nature of the work itself plays a very major role in determining how satisfied
employees are with their jobs. By and large, workers want jobs that are challenging;
they do want to be doing mindless jobs day after day. The two most important aspect
of the work itself that influence job satisfaction are variety and control over work
methods and work place. In general, job with a moderate amount of variety produce
the most job satisfaction. Jobs with too little variety cause workers to feel bored and
fatigue. Jobs with too much variety and stimulation cause workers to feel
psychologically stressed and burnout. Hani T Handoko. (1996).
According to Luthans (1995), the content of the work performed by
employees is a major predictor of job satisfaction. Not surprisingly, research is
fairly clear that employees, who find their work interesting, are more satisfied and
motivated than employees who do not enjoy their jobs (Gately, 1997 as cited by
Aamodt, 2004, p. 326). Employees tend to prefer jobs which afford them the
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opportunity to apply their skills and abilities, offer them variety and freedom as well
as jobs where they get constant feedback on how well they are doing (Robbins,
2005). Hence, it is important for managers to take innovative steps to make work
more interesting in order to increase the levels of job satisfaction of employees.
Furthermore, if a job is highly motivating, employees are likely to be
satisfied with the job content and deliver higher quality work, which in turn could
lead to lower rates of absenteeism (Friday & Friday, 2003). Fox (1994) as cited by
Connolly and Myers (2003, p. 152) however, advances a contradictory view and
maintain that as workers become more removed from the ability to make meaning
through work, the opportunity to experience job satisfaction becomes more
difficult. This stems from the fact that job satisfaction is related to a myriad of
factors, including physical, psychological and demographic variables, which are
unrelated to the workplace.
Nature of job determines job satisfaction which is in the form of occupation
level and job content.
2.5.3.1Occupation level
Higher level jobs provide more satisfaction as compared to lower levels. This
happens because high level jobs carry prestige and status in the society which itself
becomes source of satisfaction for the job holders. For example, professionals derive
more satisfaction as compared to salaried people: factory workers are least satisfied.
Luthans, Fred. (2006).
Oshagbemi (1997) highlights the fact that relatively few studies have
attempted to investigate the relationship between employees job level and
corresponding levels of job satisfaction. However, according to Mowday, Porter and
Steers (1982) and Saal and Knight (1988), the limited research available suggests
that people who hold higher level jobs are more satisfied than those who hold lower
level positions. Several other researchers also found support for a positive correlation
between job level and satisfaction. Smither (1998) states that job satisfaction tends to
be lower among employees in jobs characterized by hot or dangerous conditions,
which is normally of a lower level nature. Furthermore, Miles, Patrick and King
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(1996) found that job levels moderates the communication-job satisfaction
relationship. It is possible that the more challenging, complex nature of higher-level
jobs lead to higher job satisfaction. Also, employees in professional and managerial
jobs are normally paid more, have better promotion prospects, autonomy and
responsibility which might also increase the levels of job satisfaction (Saal & Knight,
1988). It seems therefore that job level is a reliable predictor of job satisfaction; more
specifically employees in higher level jobs have greater satisfaction than lower level
employees.
2.5.3.2Job content
Job content refers to the intrinsic value of the job which depends on the
requirement of skills for performing it, and the degree of responsibility and growth it
offers. A higher content of these factors provides higher satisfaction. For example, a
routine and repetitive lesser satisfaction; the degree of satisfaction progressively
increases in job rotation, job enlargement, and job enrichment. Luthans, Fred.
(2006).
2.5.4 Supervision
According to Friday and Friday (2003), satisfaction with promotion assesses
employees attitudes toward the organizations promotion policies and practices. In
addition to this, Bajpai and Srivastava (2004) postulate that promotion provides
employees with opportunities for personal growth, more responsibilities and also
increased social status. Robbins (1989) maintains that employees seek promotion
policies and practices that they perceive to be fair and unambiguous and in line with
their expectations. Research indicates that employees who perceive that promotion
decisions are made in a fair and just manner are most likely to experience job
satisfaction.
The type of supervision affects job satisfaction as in each type of supervision;
the degree of importance attached to individuals varies. In employee-oriented
supervision, there is more concern for people which is perceived favourably by them
and provides them more satisfaction. In job oriented supervision, there is more
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emphasis on the performance of the job and people become secondary. This situation
decreases job satisfaction. Luthans, Fred. (2006).
Two dimensions of supervisor style:
Employee centred or consideration supervisors who establish a supportivepersonal relationship with subordinates and take a personal interest in
them.
The other dimension of supervisory style influence participation indecision making, employee who participates in decision that affect their
job, display a much higher level of satisfaction with supervisor an the
overall work situation (Hani T Handoko, 1996).
2.5.5 Recognition and Rewards
According to Friday and Friday (2003), satisfaction with promotion assesses
employees attitudes toward the organizations promotion policies and practices. In
addition to this, Bajpai and Srivastava (2004) postulate that promotion provides
employees with opportunities for personal growth, more responsibilities and also
increased social status. Robbins (1989) maintains that employees seek promotion
policies and practices that they perceive to be fair and unambiguous and in line with
their expectations. Research indicates that employees who perceive that promotion
decisions are made in a fair and just manner are most likely to experience job
satisfaction.
A Watson Wyatt Worldwide study identified a positive outcome between a
collegical and flexible work environment and an increase in shareholder value.
Suggesting that employee satisfaction is directly related to financial gain. Over 40
percent of the companies listed in the top 100 of Fortune magazines, Americas
Best Companies to Work For also appear on the Fortune 500. It is possible that
successful workers enjoy working at successful companies, however, the Watson
Wyatt Worldwide Human Capital Index study claims that effective human resources
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practices, such as employee recognition programs, lead to positive financial
outcomes more often than positive financial outcomes lead to good practices.
Employee recognition is not only about gifts and points. It's about changing
the corporate culture in order to meet goals and initiatives and most importantly to
connect employees to the company's core values and beliefs. Strategic employee
recognition is seen as the most important program not only to improve employee
retention and motivation but also to positively influence the financial situation
(Insight Magazine, January 2013). The difference between the traditional approach
(gifts and points) and strategic recognition is the ability to serve as a serious business
influencer that can advance a companys strategic objectives in a measurable way.
The vast majority of companies want to be innovative, coming up with new
products, business models and better ways of doing things. However, innovation is
not so easy to achieve. A CEO cannot just order it, and so it will be. You have to
carefully manage an organization so that, over time, innovations will emerge
(Forbes, May 2011).
The type of linkage that is provided between job performance and rewards
determines the degree of job satisfaction. If the reward is perceived to be based on
the job performance and equitable, it offers higher satisfaction. If the reward is
perceived to be based on considerations other than the job performance, it affects job
satisfaction adversely. Luthans, Fred. (2006).
Promotional opportunities have a moderate impact on job satisfaction. A
promotion to a higher level in an organization typically involves positive changes I
supervision, job content and pay. Jobs that are at the higher level of an organization
usually provide workers with more freedom, more challenging work assignments and
high salary. Hani T Handoko. (1996).
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2.6 Environmental Factors
2.6.1 Working conditions
Working conditions refers to the working environment and all existing circumstances
affecting labour in the workplace, including job hours, physical aspects, legal rights
and responsibilities. For example, Congress has explained that the purpose of the
federal Occupational Safety and Health Act, which IOSHA implements in Indiana, is
to assure so far as possible every working man and woman in the Nation safe and
healthful working conditions (29 USCS 651; LTV Steel Co. v. Griffin, 730
N.E.2d 1251, 1261, Ind. 2000). In the context of machines or equipments, working
condition means it is operational. For example, once the State introduced prima facie
evidence that the machine was in proper working condition, the burden of production
shifted to Mullins to rebut the State's prima facie showing.
Working conditions is an extrinsic factor that has a moderate impact on an
employees job satisfaction (Luthans, 1995). Working conditions refer to such
aspects as temperature, lighting, noise and ventilation. Robbins (1989) stated that
employees are concerned with their work environment for both personal comfort and
for facilitating good job performance. Studies have demonstrated that employees
prefer physical surroundings that are safe, clean, comfortable and with a minimum
degree of distractions (Robbins, 2005). According to Spector (1997), research has
shown that employees, who perceive high levels of constraints in terms of their work
environment, tend to be dissatisfied with their jobs. Contradictory literature,
however, indicates that most people do not give working conditions a great deal of
thought unless they are extremely bad (Luthans, 1995, p. 128).
The employees desire good working condition because they lead to greater
physical comfort. The working conditions are important to employees because they
can influence life outside of work. If people are require to work long hours and / or
overtime, they will have very little felt for their families, friends and recreation
outside work. Hani T Handoko. (1996).
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Working conditions, particularly physical work environment, like conditions
of workplace and associated facilities for performing the job determine job
satisfaction. These work in two ways. First, these provide means job performance.
Second, provision of these conditions affects the individuals perception about the
organization. If these factors are favourable, individuals experience higher level of
job satisfaction. Luthans, Fred. (2006).
According to Luthans (1999) said that working conditions are another factor
that have a modest effect on job satisfaction. If the working conditions are good
(clean, attractive surroundings, for instance), the personnel will find it easier to carry
on their jobs. If the working conditions are poor (hot, noisy surroundings, for
example) the personnel will find it more difficult to get things done.
Syptak, et.al. (1999) stated that the environment in which people work has a
tremendous effect on their level of pride for themselves and for the work they are
doing.
Also, Bell et.al. (1996), made mentioned that in general, employees do list
physical conditions as important as job satisfaction. In addition to productivity,
managers and others have become concerned with that design of the work
environment can influence job satisfaction. The authors also mentioned that, work
environment can be designed to maximize productivity through facilitating workflow
and providing safe and healthy working conditions.
2.6.2 Communication overload and communication underload
One of the most important aspects of an individuals work in a modern
organization concerns the management of communication demands that he or she
encounters on the job (Krayer, K.J., & Westbrook, L., 1986). Demands can be
characterized as a communication load, which refers to the rate and complexity of
communication inputs an individual must process in a particular time frame
(Farace, R. V., Monge, P. R., & Russell, H. M., 1977). Individuals in an organization
can experience communication over-load and communication under- load which can
affect their level of job satisfaction. Communication overload can occur when an
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individual receives too many messages in a short period of time which can result in
unprocessed information or when an individual faces more complex messages that
are more difficult to process (Farace, R. V., Monge, P. R., & Russell, H. M., 1977).
Due to this process, given an individuals style of work and motivation to complete
a task, when more inputs exist than outputs, the individual perceives a condition of
overload (Krayer, K.J., & Westbrook, L., 1986) which can be positively or
negatively related to job satisfaction. In comparison, communication under load can
occur when messages or inputs are sent below the individuals ab ility to process
them (Farace, R. V., Monge, P. R., & Russell, H. M., 1977). According to the ideas
of communication over-load and under-load, if an individual does not receive
enough input on the job or is unsuccessful in processing these inputs, the individual
is more likely to become dissatisfied, aggravated, and unhappy with their work
which leads to a low level of job satisfaction.
Figure 1: Example of organizational communication flow
2.6.3 Superior-subordinate communication
Superior-subordinate communication is an important influence on job
satisfaction in the workplace. The way in which subordinates perceive a supervisor's
behaviour can positively or negatively influence job satisfaction. Communication
behaviour such as facial expression, eye contact, vocal expression, and body
movement is crucial to the superior-subordinate relationship (Teven, p. 156).
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Nonverbal messages play a central role in interpersonal interactions with respect to
impression formation, deception, attraction, social influence, and emotional
(Burgoon, J.K. Buller, D.B. and Woodall, W.G., 1996). Nonverbal immediacy from
the supervisor helps to increase interpersonal involvement with their subordinates
impacting job satisfaction. The manner in which supervisors communicate with their
subordinates non-verbally may be more important than the verbal content (Teven, p.
156). Individuals who dislike and think negatively about their supervisor are less
willing to communicate or have motivation to work whereas individuals who like
and think positively of their supervisor are more likely to communicate and are
satisfied with their job and work environment. A supervisor who uses nonverbal
immediacy, friendliness, and open communication lines is more likely to receive
positive feedback and high job satisfaction from a subordinate. Conversely, a
supervisor who is antisocial, unfriendly, and unwilling to communicate will naturally
receive negative feedback and create low job satisfaction in their subordinates in the
workplace.
2.7 Leadership Factors
Leadership styles range widely from a job-or task-centered orientation to a
people or relationship-centered one, with many other combinations. A participative
style has special merit for consideration. A supervisor uses in trying to direct,
activate or otherwise provide a motivational atmosphere for employees. It includes
leadership traits skills attitudes and behaviour that employees perceive their
supervisor to have and consistently use.
According to John W. Newstorm (2001) study guide stated that leadership is
one in which the leader sets goals, makes decisions, gives orders and demands
obedience, autocratic style of leadership. A democratic or consultative style is one
in which the leader presents problems, consults with relevant individuals or solicits
ideas from those with expertise and interest before making decisions. It is highly
consistent with the need to employees and assumptions of Theory Y. True
participation gives one or more employees the right to explore problems, gather
information, make decisions, and implement them.
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Leadership style is the behaviour of leader that has expressed ability to
influence the subordinates toward the achievement of goals (Armandi Oppedisans &
Sherman 2003). Leadership style has been classified in different ways in prior
researches.
2.7.1 Participative Leadership Style
Is defined as a leader who shares decision making with group members or
subordinates (Dubrin, 1995). The leader will identify the problem, generate
solutions and evaluate the alternatives together with subordinates. The decision-
making of participative leadership style is decentralized authority throughout the
organization (Steers, 1977).
The positive results are employees are mentally and emotionally to its
success. Conditions that should be in place to assist in having the participative
approach succeed include:-
Adequate time to consult with employees. The benefits of allowing participation must exceed the cost. The issue must be sufficiently interesting to engage the workers mind and
imaginations.
The problem must be within the supervisors area of job freedom. Not all problems lead themselves to the participative approach and the
supervisor and employees must understand this.
Examples of formal programs that encourage employee participation
include:-
Suggestion systems, which invite individual employees to submitrecommendations for work improvements.
Quality circles and total quality programs which involve formal training andproblem solving, group decision making, and statistical techniques to
encourage employee to continuously search for improvements in their
operations.
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Employee ownership plans, also called employee stock ownership plans(ESOPs) which allow employees to purchase shares of common stock in the
company, thereby becoming art owners.
When participate leadership fails its often because:-
It is uncomfortable to change old habits. It is attempted in a insincere fashion. Supervisors fail to follow through on employee input and
decisions.
Performance pressures produce fear and insecurity.
Supervisors fear it could result in a loss of personal power.
2.7.2 Democratic Leadership Style
Is defined as a friendly, helpful leader who encourages participation. A
leader with a democratic leadership style shares his or her power with subordinates
and decisions are made by consensus or majority vote (Seidenberg & Snadowsky,
1976). Democratic leaders encourage subordinates to discuss and make decisions as
a group on the policy and steps towards achieving goals.
Democratic leaders are open in nature and want to get the opinions of
everyone. This free information sharing ensures the teams talents and skills are all
utilized rather than expecting conformity. The end decision however still sits with
them.
These leaders exhibit the following characteristics: Team members are included in decision making but the final say is made by
the leader
Team involvement results in high productivity These teams have highly developed people skills Due to the inclusive nature of these leaders decisions can be delayed as
everyones thoughts are sought (including those who may not have the skill
and knowledge to provide high quality input)
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They are highly suited to teams that need to work together and where theneed for quality outweighs the need for high levels of productivity
They make their staff feel empowered
2.7.3 Autocratic Leadership Style
Is defined as a directive leader, controlling, discouraging or suppressing
participation. An autocratic leader centralizes power with little or no room for
subordinates to participate in decision-making process (Seidenberg & Snadowsky
1976). Autocratic leader determine all policies, dictate techniques and activities,
assign tasks and work partners to group members and are personal in their criticism
and praise. These leaders exhibit the following characteristics:
As the leader they believe that they have total authority and control Their focus is on goal completion They adopt a dictatorial approach when allocating tasks They shows little concern for the opinion of their team, even if these would
be beneficial
They think of them self as being the sole decision maker
The perceived benefit of this style of leadership is that decisions are made
quickly and efficiently and work is done efficiently. This type of leadership is most
often seen in:
Military Manufacturing
Construction
2.7.4 Bureaucratic Leadership Style
These leaders exhibit the following characteristics:
They follow rules and procedures to the letter and without deviation
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If they are unsure of what to do they defer up the chain of command They act as an enforcer rather than leader
The bureaucratic leader works well in situations such as:
For work involving high levels of health and safety concerns e.g. Height,
toxicity or machinery when outine tasks are performed over and over safety or
security.
This style of leadership does not work in organizations that require staff to be
creative, innovative or flexible.
They are often promoted to leader because of rule following rather than
qualifications or expertise and this can produce a culture of resentment.
2.8 Summary
According to Saunders et al. (2009), critical review of literature explores and
identifies some key themes and issues relevant to the research topic. This research
project is based on the effect of job satisfaction and work performance of employees
at JUPEM Negeri Sembilan. There are several factors that influences the job
satisfaction and these include- organizational factors, e.g. organizational
commitment, structure of wages and salary, human resource management policies
and regulations, job design and description etc. and employees personal factors-
attitudes towards job, self-motivation, age, wages and salaries according to level of
experiences, willingness and innovative in working approach etc. There are severalapproaches such as rating scales, global measures, facet measure, interviews,
psychometric tools, balanced scorecard etc. to measure the level of job satisfaction.
The measure of efficiency and productivity is vital for the purpose of measuring job
performance of employees within an organization. The job satisfaction plays great
role within the organization in relation to improve and increase the job performance
of the employees, for example, in respect to organizational perspective including
more customer satisfaction and loyalty to organization and in respect to employee
perspective including efficient and productive outputs in relation to service.