Paaryveanthan Vellasamy (100227571)

CHAPTER 1

INTRODUCTION

1.1

Background of the Study

Employees are a valuable corporate asset that must be managed by the company in order to provide optimal contribution. One of the things that should be the primary concern of the company is the job satisfaction of their employees, because the employees in the work they do not feel comfortable, under-appreciated, can not develop all their potential, then automatically the employee unable to focus and concentrate fully on the job . Employee job satisfaction by Hariadja (2002) it can be seen that "the job is not just doing a job, but also related to other aspects such as interacting with co-workers, superiors, follow the rules - the rules and the specific work environment often inadequate or lacking preferred. '

Job satisfaction is basically an individual, each individual has a different level of job satisfaction - vary according to desire and value system espoused. (Handoko, 2000). More and more aspects of the work in accordance with the wishes and individual value systems adopted, the higher the level of satisfaction obtained. Likewise, more and more aspects of the job that is not in accordance with the wishes and individual value systems adopted, the lower the level of satisfaction obtained. Job satisfaction is a pleasant emotional state with how workers view their work. Job satisfaction reflects one's feelings towards his work can be seen from the attitude of employees towards work and everything else in the working environment. ~1~

Paaryveanthan Vellasamy (100227571) All types of companies actually requires a working system to seriously pay attention to the job satisfaction of its employees. As noted Handoko (1995) "Employees who do not get job satisfaction will never attain psychological maturity and, in turn, would be frustrated."

Aspects - aspects that can shape employees' job satisfaction include: individual factors (age, sex, personal attitude towards work), a factor inter-employee relationships (relationships between managers and employees, the social relationships between fellow employees, a suggestion from a co-worker, physical factors and workplace conditions, emotional and employment situation) external factors (family circumstances, recreation, education). Aspect gives motivation to achieve job satisfaction for employees. And the obligation to meet the job satisfaction is every leader of the company, because job satisfaction is a factor that is believed to motivate employees so that employees can deliver the best results for the company so that performance can be improved.

Besides job satisfaction also have significance for employee selfactualization. Employees who do not get job satisfaction will not achieve psychological maturity. Employees who get a good job satisfaction typically have attendance records, job rotation and job performance is good compared to employees who did not get job satisfaction. Job satisfaction has a very important meaning to provide a conducive environment situation of the company.

1.1.1

Measuring the level of job satisfaction

The researcher thinks that to measure the level of job satisfaction, it is require to provide some appropriate definitions of job satisfaction because it is very complex issue to measure the level of job satisfaction within an organization. As cited by Rashid (1983) shows that there is no simple definition of the job satisfaction because it means different things to different people. He described that job satisfaction varies in fact according to what a person seeks in a job, how he or she ranks the items sought in order to priority, and how well the job permits the person to achieve the various personal goals. Job satisfaction is simply how people feel about their jobs

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Paaryveanthan Vellasamy (100227571) and different aspects of their jobs. It is the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs (Spector, 1997).

According to McKenna (2000), the most frequently adopted approach to measuring job satisfaction involves the use of rating scales that are standard instrument that are designated to provide feedback on specific examples of employee satisfaction and dissatisfaction. He also mentioned that there are other techniques for measuring job satisfaction such as critical incidents and interviews. The technique in which the employees are requested to focus on some situation or incident that is related to job satisfaction is known as critical incident technique where the employees experience greater freedom to express themselves, unlike the situation with rating scales. Another technique interview that is regarded as more open-ended approach than critical incidents and where interviews offer interviewee wider scope in terms of response (McKenna, 2000 p.280). Moreover, Archnahr, et al., (2006) have stated that to measure level of job satisfaction is very subjective approach. The psychometric tools are the most effective and efficient to measure level of job satisfaction. Other tools that can be used to measure job satisfaction include- global measure that measures the overall satisfaction of the job; facet measure where satisfaction is measured on each aspect of the job.

According to Stanton et al. (2001), job description index (JDI) items is one the best methods that can be used to measure level of job satisfaction of the employees within the organization. This JDI items include- working environment, payment, promotion, supervision and relations with co-workers etc. However, other researchers have used JDI in relation to measure level of job satisfaction. For instance, the JDI is an instrument that is used to assess job satisfaction more than any other inventory (Kinicki, 2002). Balzer et al. (1997) describes the purpose of the JDI as well as the validity and reliability conducted. The basis for the Job Descriptive Index is that job satisfaction is important for three different reasons: humanitarian concerns, economic concerns, and theoretical concerns.

Humanitarian concerns: Humanitarian concerns are of interest because employers want people to be satisfied with their jobs. Job satisfaction has been related to various factors, like physical and mental health, as well as ~3~

Paaryveanthan Vellasamy (100227571) overall life satisfaction, so it is important for people to be satisfied at work (Balzer et al., 1997).

Economic concerns: Economic concerns are of interest to employers because they want to get the most from their employees. If happier employees lead to increased productivity, then it is worth the employers time to make the employees satisfied. Job satisfaction can also lead to various factors like decreased absenteeism, reduced turnover, and fewer on the job injuries (Balzer et al., 1997).

Theoretical concerns: Theoretical concerns are of interest because many people view satisfaction as the cause of work-related behaviours, such as maintaining good working relationships, coming to work, and doing the job well (Balzer et al., 1997). Other researchers (e.g. MacDonald, 1996; OToole, 1980) argue in favour of

the control of job satisfaction by factors intrinsic to the workers. Their arguments are based on the idea that workers deliberately decide to find satisfaction in their jobs and perceive them as worthwhile. Several authors and researcher have revealed that job satisfaction is an important aspect within the organizational performance, particularly in the hospitality and hotel industry as the business is concern with services through the employees. For example, according to Nguyen, et al. (2003), job satisfaction is an issue of substantial important both for employers and employees. They suggest that employers benefit from satisfied employees as they are more likely to profit from lower staff turnover and higher productivity if their employees experience a high level of job satisfaction. However, employees should also be happy in their work, given the amount of time they have to devote to it throughout their working lives. Thus, the researcher will adopt and implement some common and appropriate tools and techniques for the purpose of measuring level of job satisfaction in relation to investigate and analyse the effect of job satisfaction on the employees work performance at JUPEM Negeri Sembilan.

1.1.2

Relationship between job satisfaction and work performance

This is an important area of research because job satisfaction is correlated to enhanced job performance, positive work values, high levels of employee ~4~

Paaryveanthan Vellasamy (100227571) motivation, and lower rates of absenteeism, turnover and burnout (Begley and Czajka, 1993; and Tharenou, 1993). Several authors have described that there is close and vital relations with the job satisfaction and work performance within an organization. The most prominent researchers and authors who have worked on it include- Judge et al. (2001); Schwab and Cummings (1970); Locke (1976); and Iaffaldano and Muchinsky (1985) and all them have agreed that the job satisfaction can influence work performance of the employees within an organization. There are also stronger relationships depending on specific circumstances such as mood and employee level within the company (Morrison, 1997). Organ (1988) also found that the job performance and job satisfaction relationship follows the social exchange theory; employees performance is giving back to the organization from which they get their satisfaction.

Judge et al. (2001) argued that there are seven different models that can be used to describe the job satisfaction and job performance relationship. Some of these models view the relationship between job satisfaction and job performance to be unidirectional, that either job satisfaction causes job performance or vice versa. Another model stated that the relationship is a reciprocal one; this has been supported by the research of Wanous (1974). The underlying theory of this reciprocal model is that if the satisfaction is extrinsic, then satisfaction leads to performance, but if the satisfaction is intrinsic, then the performance leads to satisfaction. Other models suggest there is either an outside factor that causes a seemingly relationship between the factors or that there is no relationship at all, however, neither of these models have much research. George and Brief (1996) and Isen and Baron (1991) both founded that job satisfaction can lead better work performance of the employees within an organization. Bishay (1996) postulates that if employees are satisfied with their work they will show greater commitment and thus more better performances within the organization. Conversely, dissatisfied workers with negative attitudes will ultimately leave the organisation. The researcher will try to find the application and implementation any models for the purpose of identifying relationships of job satisfaction with work performance within the case studied organization, JUPEM Negeri Sembilan.

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Paaryveanthan Vellasamy (100227571) 1.2 Research problem

This research project is based on the investigation and analysis of the effect of job satisfaction on the employees work performance within an organization, such as JUPEM Negeri Sembilan. Based on the case studied organizations current situations and conditions, it is clear that the organization is commitment to provide excellent and quality services to their clients, customers, visitors and tourists from different parts of the world. So, there is need for the identification and analysis of the employees job satisfaction and how does this affecting the work performance within the organization in relation to achieve goals and objectives of the organization.

1.3

Research questions

The primary query of the research is the investigation and analysis of the effect of job satisfaction on the employees work performance. Based on the main research question, following research questions can be construct in relation to research aims and objectives

What are the factors that can influence the satisfaction and dissatisfaction of employees in their workplace, such as JUPEM Negeri Sembilan?

How the level of performance of employees can be measured based on their job description and job satisfaction?

How the organization/company, such as JUPEM Negeri Sembilan can motivates the employees that will enhance work performance by increasing job satisfaction?

What are the positive and negative impacts within the organization/company? How the job satisfaction can increase work performance of the employees within the organization/company, such as JUPEM Negeri Sembilan?

1.4

Purpose of the Study

The primary aim of this research is to investigate and analyze the effect of job satisfaction on the employees work performance. The sub aims in accordance with primary aim include- to identify the factors that influence satisfaction and dissatisfaction of employees; to evaluate the productivity and efficiency of ~6~

Paaryveanthan Vellasamy (100227571) employees based on their job satisfaction; and to identify and evaluate how the job satisfaction influence the performance of the employees. The key objectives of this research are as follows-

1. To explain the simultaneous effect of the five variables on Job Satisfaction Level at JUPEM Negeri Sembilan. 2. To determine which variables were the dominant influence of the five variables on Job Satisfaction Level at JUPEM Negeri Sembilan.

1.5

Scope of the Study

This research project will investigate and analyze the effect of the job satisfaction on the employees work performance within an organization, such as JUPEM Negeri Sembilan. Data both primary and secondary has been collected through semi-structured questionnaire survey and document analysis etc. The researcher has made valid conclusions and recommendations base on the research findings where there are several issues and concepts that need further investigation and analysis that can lead future research initiatives. Thus, the researcher would like to opine that this research has created several research scopes in the field of job satisfaction and work performance of the employees within an organization.

1.6

Rationale of the Study

According to Yousef (2000), job satisfaction and organizational performance is closely related because if the employees are satisfied then there will be no tardiness, absenteeism and turnover that will improve the work performance and organizational productivity. Moreover, factors that are associated with job satisfaction linked to increase productivity and organizational effectiveness that affect the work performance of the employees (Buitendach and de Witte, 2005). According to Nimalathasan (2010), the employees who are satisfied with their job can create more effort that will create better organizational performances as well as he or she can provide better performance from him or her. He also described that job satisfaction has two types of role- from organizational perspective and employees perspective. The organization has to ensure job satisfaction to achieve ~7~

Paaryveanthan Vellasamy (100227571) organizational goals and objectives. On the other hand, job satisfaction can provides mental refreshment, good relations with co-workers, good relations with supervisor etc. to the employees within the organization.

Job satisfaction has both positive and negative consequences within the organization. For instance, Hodgetts (1991) has described that the outcomes or consequences of job satisfaction in relation to performance, employee turnover and absenteeism.

Performance: The employees who are satisfied with the job they do better work than the employees who are not satisfied with their job, a research study carried out by (Ostroff, 1992). As an example (West, 1998) has mentioned in UK job satisfaction has great influence on the work performance of the employees within an organization, such as in retail organization.

Employee turnover: Job satisfaction is closely related with employee turnover that can be used to measure the level of efficiency and productivity of the employees and thus the work performance of those employees and Lee and Mowday (1987) stated that the employee who is satisfied he or she wants to stay within the organization compare to employee who is not satisfied with the job.

Absenteeism: There is said to be an inverse relationship between job satisfaction and level of absenteeism- that is, when job satisfaction is low, absenteeism tends to be high (Steel and Rentsch, 1995). There is opposite argument as well in respect to job satisfaction and level of absenteeism, such as Clegg (1983) has mentioned that there is no guarantee in low levels of absenteeism despite of having high levels of job satisfaction.

Heskett et al. 1997 and Weaver, 1994 have stated that the people who are satisified with the job, they are very productive than those are not satisfied with the job within an organization. According to Reichheld (1996), there are mainly three features by which an organization can explore the role of job satisfaction on the work performance of the employees that include- the feel proud of their jobs, they find very much interests and meanings by doing jobs and after receiving recognition from the colleagues and/or other employees within the organization. All of the features ~8~

Paaryveanthan Vellasamy (100227571) can be termed as to assess the roles of job satisfaction on the work performance of the employees within an organization. Moreover, some other prominent researchers have mentioned that job satisfaction has role to work performance in several ways. For instance, satisfied employees provide a higher level of external service quality, the service experience that customers receive and evaluate, which leads to increased customer satisfaction, stated by Heskett et al. 1997 and Spinelli and Canavos, 2000.

Job satisfaction has one most crucial role within the organization in relation to human resource management (HRM). The issue of turnover is an important concern for the purpose of human resources management. Several authors have revealed that there is closely a relationship with the job satisfaction and turnover that affect human resources management and thus work performance of the employees within an organization. As an example, Hackman and Oldham (1975) have described that job satisfaction is generally believed a higher job satisfaction is associated with increased productivity, lower absenteeism, and lower employee turnover. Glance et al. (1997) described that employee turnover is positively related with the productivity of the employee. Amah (2009) noted that employee turnover can be reduced through increasing job satisfaction. The satisfied employees are willing to involve in more volunteering within the organization that increase more productivity of them and thus reduce turnover of them.

According to Mudor and Tooksoon (2011), HRM practices in specific internal fit as an ideal set of practices which identify three variables; supervision, job training, and pay practices believed to influence job satisfaction and toward turnover of the employees, as some of the practices of high the performance working system practices by previous HRM researchers such as Bradley et al. (2004). From the review, it is clear that the job satisfaction has impact on the several issues and concepts such as organizational performance, employee performance, turnover and absenteeism, employee productivity, service quality of employees and human resources management etc. So, there should be initiatives by the researcher to explore and evaluate about the impact of job satisfaction on the above mentioned issues and concepts.

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Paaryveanthan Vellasamy (100227571) 1.7 Significance of the Study

Job satisfaction surveys can produce positive, neutral or negative results. If planned properly and administered, they will usually produce a number of important benefits, such as-

1. It gives management an indication of general levels of satisfaction in a company. Surveys also indicate specific areas of satisfaction or dissatisfaction as compared to employee services and particular group of employee. 2. It leads to valuable communication brought by a job satisfaction survey. Communication flow in all direction as people plan the survey, take it and discuss the result. Upward communication is especially fruitful when employee are encouraged to comment about what is on their minds instead of merely answering questions about topics important to management. 3. This survey act as safety value, an emotional release. A chance to things gets off. The survey is an intangible expression of managements interest in employee welfare, which gives employees a reason to feel better towards management. 4. Job satisfaction surveys are a useful way to determine certain training needs. 5. Job satisfaction surveys are useful for identifying problem that may arise, comparing the response to several alternatives and encouraging manager to modify their original plans. Follow up surveys allows management to evaluate the actual response to a change and study its success or failure.

1.8

Limitations of the study

Limitation are as follows

Data collected is based on questionnaire. The number of employees in JUPEM Negeri Sembilan is more, so sample size is limited by 100. The information collected by the observation method is very limited. ~ 10 ~

Paaryveanthan Vellasamy (100227571) The result would be varying according to the individuals as well as time. Some respondents hesitated to give the actual situation; they feared that management would take any action against them

1.9

Summary

Work carried out in the government sector is one of the jobs or activities are always carried out repeatedly. Employees faced with the same routine day after day. In conditions such as these employees work extremely susceptible to saturation causing no satisfaction in the work, in addition to financial satisfaction factors, physical, social satisfaction and psychological satisfaction also affects job satisfaction. Lack or loss of motivation also affects the performance. Employees are a valuable corporate asset and if managed properly will yield profits for the company achieving all the goals that have been set. JUPEM Negeri Sembilan should be keen to see things that could lead to job satisfaction of employees, making employees motivated in their work and firm performance increases with employee performance.

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