Full Project – THE IMPACT OF JOB SATISFACTION ON WORKERS PRODUCTIVITY

Full Project – THE IMPACT OF JOB SATISFACTION ON WORKERS PRODUCTIVITY

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CHAPTER ONE

INTRODUCTION

1.1  Background of the Study

There are certain factors within or outside the organization which attach employees to their jobs or detach them from it.  These factors -such as pay, promotion, the work itself, supervision, communication and co-workers has determine the level of their job satisfaction and commitment to achieving more on the job or to showing poor interest in performing their tasks. Igbaekemen and Idowu (2014) noted that:

“The presence of an organizational commitment to employees job satisfaction can be used to gain employees support for organization and in turn maximize the benefits it receive from their employee with greater productivity and individual performance seems to increase in the same proportions.”

Job satisfaction is the extent to which rewards actually received meets the perceived equitable level of rewards (Porter et.al 1974).  The gateway to the success of an organization is employee’s satisfaction because employees who exhibit a higher level of satisfaction tend to put more effort in their jobs which may lead to better job performance. Therefore, for any organization to achieve a higher level of performance, a satisfying working condition is compulsory (Wong et,al., 2014).

In the field of labour economics, following the seminal papers by Hamermesh (1977), Freeman (1978) and Clark and Oswald (1996), this has spawned a growing number of studies of the determinants and consequences of individuals’ differences reported on job satisfaction. Warr (1999), argued that for most people jobs cannot only be characterised by the pay and hours of work associated with them, as standard economic analysis does, but also by job and workplace features like promotion and other career prospects, job security, job content and interpersonal relationships.

A substantial body of research (Porter et.al 1974; Hamermesh 1977, Freeman 1978 ; Clark and Oswald 1996;  Warr 1999; Ogunleye et.al 2013;  and Wong et.al 2014) has been built showing that job satisfaction is strongly correlated with several mental physical health indicators that have resulted in productivity. Job satisfaction is found to be the next most important factor, and mediates the impact of routinization, industrial relations (IR) climate, promotional opportunity, work overload, family isolation, kinship support, positive affectivity, community participation and negative affectivity on life satisfaction.

In addition, job satisfaction is observed to have a strong effect on a company’s productivity. Aaccording to Ogunleye et.al (2013), any organization that wishes to achieve its goals need not only to retain talented workers, but must fully engage them, capturing their minds and hearts at each stage of their work lives. Therefore, they cannot afford to neglect essential needs of the workforce job satisfaction and organizational commitment through pay satisfaction, good working environment, satisfaction with promotion and recognition as well as good mentoring relationship.

1.2       Statement of the Problem

Increase in productivity may be partly due to employees’ job satisfaction, organizational factors and individual factors. According to Knoop (1991), inadequate salary was much related to employees’ dissatisfaction. And recent studies showed that a participative (democratic) management style was mostly preferred by today’s managers to increase their employees’ job satisfaction.

Satisfaction with job is an emotional reaction towards job situation, which is assessed by the extent of performance. Thus, the treatment towards the employees with regard to their performance is unfairly evaluated and rewarded, they will exhibit unenthusiastic attitude towards their job, supervisor, or colleagues and the end result would be dissatisfaction. Contrary to that, empathetic and considerate state of mind as a result of equitable and fair treatment on job will materialize (Ssemogerere, 2003). Hence, satisfaction with job exhibits how pleased is an employee with his/her works. Thus, the understanding of employee job satisfaction and its contributing variables are important for any organization to exist and prosper (HR Report, 2010).

For a few decades, many researchers have been carried out on job satisfaction and its components. Many researchers and administrators have noticed the importance of job satisfaction on a variety of organizational variables (Ssemogerere, 2003). In particular, bored and dissatisfied employees are likely to leave their jobs; they are also likely not to complete their work within stipulated deadlines and may even take time off without proper official permission. Some complain that the job is not giving them adequate compensation and that co-workers are not cooperating.

According to HR Report (2009), in indigenous companies, there are some issues related to employees’ job satisfaction that has led to low organizational productivity.  HR Report (2010) opines that these issues are inherent in the variable determinants of employee job satisfaction such as pay, promotion, the work itself, supervision and co-workers. According to the sources and data collected from the Human Resource Department, there are continuous issues of job satisfaction in the organization.

The concepts of positive affectivity and negative affectivity have now been introduced into the study of organizations. Positive affectivity is an individual’s disposition to be happy across time and situations; negative affectivity is an individual’s disposition to experience discomfort across time and situations (Watson and Clark, 1984). Every organization could not last without their employees. Employees are the main reason an organization could exist for a long time. Hence, the organization should pay attention to them in order to keep them in the organization. This will also impact the productivity of the organizations which eventually will lead to achieving the organizations’ visions and goals. Undeniably every company tries to retain and motivate its staff.

1.3    Objectives of the Study

The purpose of this study is to examine the impact of job satisfaction on workers productivity using Nigeria Brewery Plc, Lagos as case study. This research seeks to:

  • Examine the effect of job satisfaction on employees’ productivity
  • Examine the motivational techniques that enhance employees’ productivity
  • Examine the effect of reward system on employees’ commitment.
  • Examine the effect of remuneration on employees’ job productivity

1.4   Research Questions

  • To what extent will job satisfaction affects employees’ Productivity?
  • Does motivational technique enhance employees’ productivity?
  • How effective is reward system on employees’ commitment?
  • Does remuneration has any effect on employees’ job productivity?

 

1.5  Research Hypotheses

The following research hypotheses will be formulated and validated in the study:

  • HO1: There is no significant relationship between job satisfaction and workers’ productivity
  • HO2: There is no significant relationship between motivational techniques and employees’ productivity.
  • HO3: There is no significant relationship between reward system and employees’ commitment
  • HO4: There is no significant relationship between effective remuneration and employees’ job productivity

 

1.6   Significance of the Study

This study will identity and provide answers to some key issues in the Nigerian Labour market. It will therefore be valuable to Human Resource managers, food and agricultural organizations, government agencies (the Nigerian labour force), food and agricultural organizations associations, and business administration students in the following ways:

  • To enable the Nigerian labour force measure the relationship between employees job satisfaction and organizational productivity
  • It would serve as a form of advocacy to sensitize managers to improve employee job performance in the future as well as to increase employee job satisfaction.
  • This study will enable students to understand the relationship between job satisfaction determinants and employee job satisfaction better and also create an area for future research

 

1.7   Scope and Delimitation of the Study

The study under investigation covers the employees of Nigeria Brewery Plc Lagos. Employee participation is based on voluntary basis and only conducted in Lagos metropolis. Therefore, the respondents selected did not represent all employees of the Nigeria Brewery Plc.  Other limitation is related to work environment where distraction factors will take place such as work stress and also job burnout which could impact employees’ feelings and emotions besides biasness that could affect the entire result of this research.

1.8       Definition of terms

Job:   A job is an activity, often regular and often performed in exchange for payment. A person usually begins a job by becoming an employee, volunteering, or starting a business.

Job Satisfaction: “An attitude which results from balancing and summation of many specific likes and dislikes experienced in connection with the job.

Management: Management in all business areas and organizational activities is the art of getting people together to accomplish desired goals objectives efficiently..

 

Employee: Employee refers to any person who is employed for wages in any kind of work manual or otherwise, in or in connection with the work of an establishment and who gets wages directly or indirectly from the employer.

Remuneration: This is the total compensation that an employee receives in exchange for the services rendered to the employer.

Motivation: this is impacts a person to act towards certain goals and behaviors in order to achieve what they desire.

 

Productivity: Productivity is the accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed.

 

Reward: Reward is a thing given in recognition of service, effort, or achievement

 

 

 

 

 

 

References

Clark, A. E. and Oswald, A. J. (1996). Satisfaction and comparison income. Journal of Public Economics 61, 359–381

 

Freeman, R. (1978). Job satisfaction as an economic variable. American Economic Review 68, 135-42

 

Hamermesh, D. (1977), Economic aspects of job satisfaction, in: O. Ashenfelter and W. Oates (eds.): Essays in labor market and population analysis. New York: Wiley

Hamermesh, D. (2001), The changing distribution of job satisfaction. Journal of Human Resources 36, 1-30

Igbaekemen, G. O. and Idowu, O. A. (2014). Impact International, Journal of Research in Business Management (Impact: IJRBM) Vol. 2, Issue 9, 107-122.

 

Knoop, R. (1991), Achievement of work values and participative decision-making”, psychological reports, 68: 775-781.

Ogunleye, P. O,  Odebiyi, I. I. and  Olaoye, B. O. (2013). Exploring The Relationship Between Job Satisfaction Dimensions And Organizational Commitment Among Nigerian Banks Employees. International Journal of Academic Research In Economics And Management Sciences.  November 2013, Vol. 2, No. 6.

 

Porter, L. W., Steers, R. M., Mowday, R. T., and Boulian, P. V. (1974).Organizational commitment, 59, 603-609.

Ssemogerere J. M. (2003). Survivor syndrome, psychological contract, organization commitment, and organisational citizenship behavior: a survey of East Mengo Cooperative Union Ltd. Unpublished MBA dissertation, Makerere University.

Watson, D. and Clark, L. A. (1984). Negative Affectivity: The disposition to experience aversive emotional states. Psychological Bulletin, 96, 465-490

Wong Yvonne, Rabeatul H. A. and Choi S. L. (2014).  Employee Job Satisfaction and Job Performance: A Case Study in a Franchised Retail- Chain Organization. Research Journal of Applied Sciences, Engineering and Technology 8(17): 1875-1883.

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