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Received September 2002 Revised January 2003 Accepted February 2003
Job satisfaction and employee performance of Lebanese banking staff
School of Management, University of Surrey, Guildford, UK, and
´ Middle East, Dubai, United Arab Emirates Nestle
Keywords Banking, Job satisfaction, Lebanon, Employees, Performance Abstract This paper investigates the relationships between job satisfaction, individual job facets, socio-demographic variables and job performance in the Lebanese commercial banking sector. The sample consists of 202 employees from nine commercial banks. The results indicate that job satisfaction is not independent in all job facets and that satisfaction with one facet might lead to satisfaction with another. Female employees were found to be less satisﬁed with all facets except pay. Those with lower educational qualiﬁcations were least satisﬁed. Self-reported job performance was found to increase with tenure.
Journal of Managerial Psychology Vol. 18 No. 4, 2003 pp. 368-376 q MCB UP Limited 0268-3946 DOI 10.1108/02683940310473118
Introduction Job satisfaction is one criterion for establishing the health of an organisation; rendering effective services largely depends on the human source (Fitzgerald et al., 1994) and job satisfaction experienced by employees will affect the quality of service they render. The impact of other variables on efﬁciency, such as infrastructures and internal relationships, should also be recognised. Job satisfaction has been deﬁned as a positive emotional state resulting from the pleasure a worker derives from the job (Locke, 1976; Spector, 1997) and as the affective and cognitive attitudes held by an employee about various aspects of their work (Kalleberg, 1977; Mercer, 1997; Wright and Cropanzano, 1997; Wong et al., 1998); the later implying that satisfaction is related to the component facets rather than the whole job, which is consistent with Spector’s (1997) view. The research aim was to broaden the research agenda to the banking sector in general and to the Lebanon in particular. While there is limited research into job satisfaction in the Middle-East the focus is principally concerned with gender and limited to Kuwait (Metle, 1997, 2001), or to leadership and commitment in the United Arab Emirates (Yousef, 2000). Drawing on a sample of 202 employees from nine commercial banks in the Lebanon, the results of this research indicate that job satisfaction is not independent in all job facets and that satisfaction with one facet might lead to satisfaction with another.
it is a signiﬁcant income-generator (Association of Banks in Lebanon. 1993. drawn from the Annual Report for 1999-2000 (Association of Banks in Job satisfaction and employee performance 369 . By September 2000 there were 64 commercial banks working in the Lebanon. 2000).. 1969). approximately 1 per cent of the total employment in the Lebanon (Association of Banks in Lebanon. According to Quarstein et al. The individual evaluates the situational characteristics before commencement of employment (Quarstein et al. Iaffaldano and Muchinsky. overall satisfaction is a function of a combination of situational characteristics and situational occurrences. 1984. (1992). and education (Clark. but the evidence tends to be mixed. The cause and effect determinants are still unclear and it cannot be assumed that satisfaction leads to high performance. There have been numerous studies into job satisfaction which explore the impact of demographic characteristics such as age. 1997) suggest a potential relationship between satisfaction and performance. Oshagbemi. Spector. organisational characteristics and individual characteristics inﬂuences job satisfaction (Hoy and Miskel. The relationship between job satisfaction and performance is still open to question. By the end of 1999 the number of banking employees was 15. 1992).Job satisfaction theory Situational theories assume that the interaction of variables such as task characteristics. promotion. supervision and co-workers (Smith et al. gender. 1985) while others (Caldwell and O’Reilly. it would be unwise to assume that high job satisfaction leads to high performance. The situational characteristics commonly proposed as key factors in job satisfaction are: the work itself. 2000a. in the capital and the north and south regions. or that high performers are necessarily satisﬁed with their jobs (Euske et al.152. pay... 1980). Hickson and Oshagbemi. whereas situational occurrences are evaluated afterwards. A number of studies indicate a weak link (Petty et al. 1999. with reported net proﬁts of 513. The results suggest the existence of relationships between demographic characteristics and job satisfaction. 1996). 1998.4 billion Lebanese Lira. 2000).. Background to the research The banking industry in Lebanon is considered to be an important source of the country’s gross domestic product and. 1980). with positive and negative relationships sometimes identiﬁed for the interactions between same variables. b). Clark and Oswald. 33 were Lebanese and nine foreign-owned.. although other variables such as employee involvement and organisational commitment may impact also. or that high performers are satisﬁed with their jobs (Euske et al. 1990. tenure. Method The target population was the non-managerial staff in the 33 Lebanese commercial private banks. 1995.
3 ¼ among the upper 40 per cent. gender. 7¼ among the upper 5 per cent.4 370 Lebanon. 11 were selected by stratiﬁed random sampling by region with a roughly proportionate response being achieved. 2000). The questions were adopted from Yousef (2000). the instrument was extended by two additional facets: fringe beneﬁts and working conditions. .. 6 ¼ among the upper 10 per cent. as it appeared to bore objective than Yousef’s own seven-point (“very high” to “very low”) scale: . As the JDI has been criticised for being limited to ﬁve facets and that particular items might not apply to all employee groups (Buffum and Konick. 5 ¼ among the upper 20 per cent. . The responses were measured using Baruch’s (1996. 1 ¼ among the lower 50 per cent. 65) seven-point scale. A pilot study. Jung et al. education. applicable across a variety of demographic groups (Golembiewski and Yeager. 1978. Of the 33 banks. . indicated that the variation of response was not very high. 4 ¼ among the upper 30 per cent. Response Yes to a positive item No to negative item ? to any item Yes to a negative item No to a positive item Source: Smith et al. Section one concerned job satisfaction and was based on the Job Descriptive Index (JDI) (Smith et al. The original ﬁve facets weighting is displayed in Table I. rank and length of service. 1982). which had been used successfully in a Middle-Eastern culture.56 and a SD of 30. The data were collected by questionnaire. p.JMP 18. 1995)..51. Section two contained four self-evaluation questions regarding the respondent’s own performance and productivity. (1969) Revised weighting 3 3 1 0 0 Table I.. 2002). as well as their own performance compared with their colleagues. 2 ¼ among the upper 50 per cent. . 1986) and reliable when translated into Arabic (Mughrabi and Johnson. a reliable facet measure over time (Kinicki et al. . Analysis of the pilot study data produced an estimate of the population mean of 147. Section three contained socio-demographic questions related to characteristics such as age. 1969). conducted with ten non-managerial employees from one of the banks surveyed in Beirut. . marital status. Direct scoring of the JDI items . which were measured on a seven-point scale with dissatisﬁed (1) to very satisﬁed (7) anchors.
supervision and co-workers) were constructed by taking the mean of the respective items. promotion.5 per cent had more than 21 years of service.7 26. The overall job satisfaction score was M ¼ 1. The majority (58.3 15.80). 202 (usable) were returned.9 15. but less satisﬁed with the work itself (M ¼ 1. The main characteristics of the sample .8 1.24).8 4.8 per cent hold a masters degree.4 5. promotion (M ¼ 1.2 66. The internal reliability of the items was tested using Cronbach’s alpha.0 14. More than half (53.25) and quality of supervision (M ¼ 2. Overall job performance was constructed by taking the mean of the four respective items.8 16.8 per cent were female.08).There were 202 respondents in the study (Table II).81 for self performance being generated (Table III).0 58.5 Job satisfaction and employee performance 371 Table II. with scores of 0.6 per cent of the respondents hold a bachelor degree and 18. 21 Note: n ¼ 202 Frequency 67 135 34 20 32 76 38 2 30 108 53 10 118 43 32 9 Per cent 33.6 18.4 per cent) had worked for less than ﬁve years in their present bank. Five new measures of job satisfaction (work. The relationship between all the facets Characteristic Gender Male Female Education School Certiﬁcate Certiﬁcate Diploma Bachelor Degree Master Degree PhD Age (years) .4 21.8 37.8 9. The results show that respondents were most satisﬁed with co-workers (M ¼ 2.44) and pay (M ¼ 1.90 for satisfaction and 0. 44 Length of service (years) 0-5 6-10 11-20 .5 per cent) of the respondents were in the 25 to 34 age range.77). Results Of the 370 questionnaires distributed.9 53. pay. while only 4. a response rate of 55 per cent. The overall job satisfaction measure was then constructed from the mean of these ﬁve dimensions. 25 25-34 35-44 . and 5 per cent were aged 44 and above. of which 66. Around 37.
67 0. Although the results indicated a relationship. MR ¼ 2.93 0. While the results indicate some differences in satisfaction with the different facets these are not statistically signiﬁcant.95. MR ¼ 3. MR ¼ 3.4 372 was found to be signiﬁcant.JMP 18. MR ¼ 2. The results (Table IV) indicate signiﬁcantly higher satisfaction among females for pay and signiﬁcantly higher satisfaction among males for supervision.05 level ( p ¼ 0. promotion and co-workers. As far as the relationship between job satisfaction and socio-demographic characteristics. The mean ranks for each facet were co-workers.94. Subscale Coefﬁcient alpha 0.05 level ( p ¼ 0. MR ¼ 1.0001) at the 0.094). but is not statistically signiﬁcant at the 0. and pay. The signiﬁcance (sig. As the two gender groups were not normally distributed. it is not statistically signiﬁcant ( p ¼ 0. promotion. supervision. the mean job satisfaction score in each facet was plotted against the different age groups. but not statistically signiﬁcant at the 0. Respondents with a school certiﬁcate reported the lowest levels of overall job satisfaction and the highest job satisfaction levels were reported from those with a college certiﬁcate. 0.71. a Mann-Whitney U test was performed to test the relationship between gender and job satisfaction with each facet. The results show little variation between overall job satisfaction and respondents’ tenure. The relationship between overall job satisfaction and education was tested by way of a one-way ANOVA.41.89 0. When the individual job satisfaction facets and age.80 Table III. The results indicate that males are more satisﬁed than females with the facets of the work itself.25). Internal reliability of the job satisfaction facets Work Pay Promotion Supervision Co-workers .05 level suggests the satisfaction was not independent in the individual job facets.78 0. The data were also subjected to a non-parametric Friedman test. Further analysis indicates that respondents with less than ﬁve years tenure are highly satisﬁed with co-workers and supervision followed by the work itself.99. work itself. Those with less than ﬁve years are least satisﬁed with pay and promotion.58). The results of a one-way ANOVA show that overall job satisfaction is slightly related to tenure. the results of a one-way ANOVA indicate that overall job satisfaction is slightly related to the age of the employee. indicating the respondents’ job satisfaction is not related to an individual facet. the results indicate a weak relationship between age and facets of job satisfaction. but these are not statistically signiﬁcant. but that overall job satisfaction level is lowest for workers with 11 to 20 years tenure and it slightly increases thereafter.
The self-reported performance of males is higher in all facets of job performance than that of females.92 97.50 2 0.50 2 2.51.38 99.19).50 7.958. The relationship between gender and overall job satisfaction (Mann-Whitney U test) .50 113. (two tailed) 4.50 13.00 107.195. these results may be skewed by the self-evaluation method with self-ratings are being inﬂated and colleagues performance under-rated. Overall job Promotion Supervision Co-workers satisfaction 3.50 13. Discussion and conclusions Female employees were found to be signiﬁcantly more satisﬁed with pay than their male counterparts. possibly because they value more the opportunities for self-expression and to inﬂuence important decisions.403 0. On the other hand.138. male employees are signiﬁcantly more satisﬁed with supervision than their female counterparts.915. followed jointly by own performance compared to colleagues and quality of own performance (M ¼ 4.50 6.50 12.29 22.214.171.1240.890.50 2 1. the only exception being the respondents own performance rating which increases linearly up to the 11-20 years group then declines for the .76 7.080 0. and overall.741.459 0. The overall performance mean was 4.56 97. p ¼ 0.364. 44 years group. However.60). The highest score was for productivity (M ¼ 4.01.90). The respondents’ rating of their colleagues’ performance attracted the lowest score (M ¼ 4. Further analysis of the data revealed that self-reported performance is related to age.019.01 98.00 13.120 Table IV.333.612.037 3.50 106.08 Pay 3.65).62 95. As far as the relationship between tenure and mean job performance is concerned.49 7. The self-reported scores for each of the four measures were on the higher side of the seven-point scale.945 0.50 13.00 2 0.045 0.003 2 1.84 107. 21 years group. the score was higher in the 25– 34 group than in the .095.375.127.50 110.407. 25 years. in each of the four performance measures.837 2 2. The score was lower in the 35-44 years group and considerably higher in the .50 89.145 4.345 Job satisfaction and employee performance 373 Work Mann-Whitney U Mean rank Male Female Sum of ranks Male Female Z Sig.483. The results of the Spearman rank order correlation test indicate there is no signiﬁcant relationship between job satisfaction and job performance (r ¼ 2 0.555 0.The third area of investigation was the relationship between job satisfaction and job performance.50 14. this seems to conﬁrm the argument by Spector (1997) that women expect less from work and so they are satisﬁed with less.50 109.32 7.00 3. the results show that self-reported performance increases linearly with tenure.
University of Essex Workshop. Vol. A. 50-65. 6. Journal of Applied Psychology. Possible explanations are that these employees do not have the necessary skills to cope with the changing nature of the banking industry or that management treats them less favourably. 648-57. (1990). there are.E. and O’Reilly. 7. Clark. “Employees’ job satisfaction. C. males were more satisﬁed with supervision. First. Vol. As for the relationship between job satisfaction and performance. the results show no signiﬁcant relationship. (1993). In order to overcome these limitations further research is recommended to investigate link between job satisfaction and employee performance. 11 No. Job Satisfaction and Gender: Why Are Women So Happy at Work. Y. this contradicts the ﬁndings of Clark (1993) and Clark and Oswald (1995). a method with well-known shortcomings. a relationship between satisfaction and performance may be identiﬁed. A. While this research contributes to the limited body of knowledge on job satisfaction in the Middle-East. of course. 75. W. Annual Report 1999-2000. pp. Second. “Measuring person-job ﬁt with a proﬁle-comparison process”. On the whole the respondents were satisﬁed with their jobs. Hickson and Oshagbemi (1999). University of Essex. Association of Banks in Lebanon. London. this seems to bear out the ﬁndings of Petty et al. A. Perhaps it is. the data were collected by self-administered questionnaire. although augmented. pp. Clark. b). Baruch. drawing on a more diverse sample and which explores the relevance. A. Discussion Paper 4. if any. of national culture. Vol. female employees were found to be more satisﬁed with pay than their male counterparts. (1984) as well as those of Iaffaldano and Muchinsky (1985). Beirut. Buffum. paper presented at CEPR/ESRC. D. and the validity of the results may be questionable. and Oswald. (1995). There was a signiﬁcant relationship between gender and job satisfaction with pay and supervision. (1982). Consequently the ﬁndings may not be generalised to other sectors or to other national and cultural contexts. the performance measure was based on self-evaluation and may have caused over-rating of performance scores. Caldwell. is limited in scope. whereas. Journal of Managerial Psychology. residents functioning. Metle (2001) and Oshagbemi (2000a. References Association of Banks in Lebanon (2000). London. a potential rather than an easily identiﬁable reality. and treatment progress in psychiatric institutions”. (1996). pp. using alternative performance measures. Third. However.F. the sample is relatively small and restricted to the banking sector in one country. if the scope was broadened and another performance appraisal method used. and Konick.4 374 Less well-educated staff. “Self performance appraisal vs direct-manager appraisal”. Health and Social Work. ESRC Research Centre on Micro-social Change. mainly those qualiﬁed to school certiﬁcate. were least satisﬁed with jobs. It is important to remember that the job satisfaction score was derived from the JDI questionnaire which.A. “Satisfaction and comparison income”. a number of limitations. 320-7. . as Spector (1997) suggests.JMP 18.
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