CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

Related Literature

For an organization, manpower is considered the backbone of the operation and the
complementing entity that can make or break the goal of the organization. In the Philippines,
there are four types of government employment status: job order, casual, temporary, and
permanent. A job order, also known as an individual contract of services, is a type of
employment in which there is no employer-employee relationship. Individual-government
employee relationship (Resolution No. 020790, 2002). As a result, the individual is paid on a
daily basis and does not receive benefits such as bonuses, Personal Economic Relief Allowance
(PERA), Representation and Transportation Allowance (RATA), and leave benefits. Except for
job security, the benefits of casual and permanent employment are similar. In contrast to
permanent government employees, casual employees can be fired at any time (Macaraya, n.d.).
In the Philippines, Filipino workers in their mid-twenties and mid-fifties are found to be more
alike than different. Both believe that work should provide personal growth, desire for
development, contribution and cooperation. Younger workers, on the other hand, show a clear
preference for greater workplace participation and empowerment when compared to older
employees (Claudio-Pascua, 2005). Permanent employees have higher organizational
commitment and job satisfaction than part-time workers when working a preferred schedule, but
lower when working an unfavorable schedule. However, the results only partially supported the
hypothesis for full-time workers while fully supporting the hypothesis for part-time workers (Lee
and Johnson, 1990).
According to Davis (2002), "job satisfaction is a collection of employee feelings regarding
enjoyable or unpleasant employment." Job satisfaction is critical for workers, businesses, and
society as a whole. As a result, creating a positive work environment is an absolute responsibility
of all levels of company leadership. Herzberg (2000) developed a theory of satisfaction known as
the theory of two factors, which are dissatisfied factors and satisfied factors. According to
Herzberg, dissatisfaction and satisfaction are not continuous variables. Satisfied or dissatisfied a
person is inseparable from factors that can affect the person, while that can affect job satisfaction
will be known by looking at some factors that can cause and encourage job satisfaction, as stated
by As'ad (2004), that is:
(a) Psychological factors, which include interest, tranquillity in work, attitudes toward work,
talents, and skills, are factors associated with psychiatric employees.
(b) Social Factor, is a factor associated with social interaction between co-workers, employers,
and employees of various types of work.
(c) Physical factors, which cover the type of work, setting time and rest periods, work
equipment, the condition of the room, temperature, lighting, air exchange, employee health
conditions, age, and so on, are factors related to the physical condition of the work environment
and the physical condition of the employee.
(d) Financial Factor, is a factor related to employee welfare that includes the system and the
amount of salary, social security, various benefits, facilities provided, promotion, and so on.
Furthermore, Kreitner and Kinicki (2001: 225) state that the following five factors can
influence job satisfaction:
(a) Need fulfilment: Job satisfaction is determined by the level of job characteristics that allow
the individual to meet their needs.
(b) Inconsistencies: Satisfaction is the result of meeting expectations. The difference between
what is expected and what the individual gains from the job is reflected in the fulfilment of
expectations. People are dissatisfied when their expectations exceed what they receive.
Individuals will be satisfied if they receive benefits that exceed their expectations.
(c) Value attainment: Satisfaction is the result of a job's perception of providing the fulfilment of
the value of important individual work.
(d) Equity: Employee satisfaction is influenced by how fairly individuals are treated in the
workplace.
(e) Genetic components: Job satisfaction is influenced by both personal characteristics and
genetic factors. This implies that, in addition to the characteristics of the work environment,
differences in the nature of the individual have an important meaning to explain job satisfaction.
The issue of job satisfaction is an intriguing and important one to investigate because it
benefits employees, corporations or organizations, and society as a whole. However, there are
many factors that influence employee job satisfaction, and each expert provides different
indicators, as proposed by Robbins (1996). Employee job satisfaction is influenced by the
following factors:
(a) Work that is mentally demanding. Individuals prefer jobs that allow them to put their skills
and abilities to use and that offer a variety of tasks, freedom, and feedback on how well work is
done.
(b) Appropriate incentives. Employees desire a fair, unambiguous pay check system that is
consistent with employee expectations.
(c) Pleasant working conditions. Employees relate to their work environment for personal
comfort and the ease with which they can do good work.
(d) Co-workers who are helpful. Work provides individuals with more than just money or a
tangible achievement; employees also meet the needs of social interaction.
According to Organ and Hammer (1991), job satisfaction is a complex array of insight,
feelings, and inclinations. It is the extent to which an employee valued his or her work and job
activity. Job satisfaction is influenced by intrinsic factors (recognition, tasks, and responsibility)
as well as extrinsic factors (salary, policies, working conditions, and company policies). The
intrinsic factor, also known as internal job satisfaction, represents the desire to perform a task
that involves pleasure. These elements are associated with internal motivation. The extrinsic
factor (external job satisfaction) refers to the external benefits provided by the organization to its
professional employees. Almost any job-related factor can have an impact on a person's job
satisfaction or dissatisfaction.
Job satisfaction is influenced by a variety of factors. Patricia Smith et al (n.d.) developed the
job description index (JDI), which measures five important aspects or facets of job satisfaction.
The five components of the JDI are work on the current job, current pay, opportunities for
advancement, supervision, and co-workers.
According to the study, job satisfaction must be considered as a feeling, and job fulfilment
must be considered as an inclination that has emerged in the worker as a reaction to the overall
Job situation. It is also obvious that the opportunities available to an employee have an impact on
job satisfaction. According to Nwachukwu (2006), a worker with few job openings will
undoubtedly excuse this and find fulfilment in what he has available. Whereas an employee with
more available opportunities will undoubtedly complain and constantly consider the opportunity
cost, which influences his overall job satisfaction. The significant benefit of Patricia Smith's JDI
is that the scale used has proven validity.
Work on the Present Job: It is widely acknowledged that one of the most important factors
influencing work fulfilment is one's current occupation. The JDI attempts to determine whether
one's current job is satisfying or tiresome and disappointing. Whether a representative tries
sincerely or not, getting satisfaction from one's work is influenced by how he sees the work.
Present Pay: According to Herzberg, money is not a satisfier, regardless of how people feel about
it. Money can be viewed as a reflection of success, accomplishment, status, renown, or power.
Most importantly, there are a few people who need to work in order to support a large family or
to address medical issues. The possession of a large sum of money gives the impression that one
has control over one's surroundings. The JDI scale attempts to determine whether an employee's
pay is adequate, whether he is overpaid or underpaid. According to Baridan and Nwibere (2008),
there is no single clear proof for alleged getting some distance from material rewards. According
to Drucker, no amount of human connection can compensate for a lack of financial rewards. If
the rewards are correct, great human relations will provide additional rewards to a group, rousing
them to make their best efforts. According to Porter and Lawler (1976), satisfaction motivates
workers and helps to raise performance expectations, which leads to rewards.
Promotional Opportunity: The average employee looks forward to the day when he will be
promoted. Promotion is a reward for past performance, as well as an encouragement to continue
to excel. It is a blessing and a vote of confidence. Promotion is a behavior motivator. According
to Nwachukwu (2006), an employee who is denied promotion for an extended period of time
becomes frustrated and dissatisfied with his or her work. Employees who are dissatisfied and
frustrated will never give their all to ensure the organization's productivity and performance.
When an employee feels unjustly treated as a result of an unfair promotion policy or practice, he
becomes disconnected and dissatisfied with his work, and he may withdraw some commitment to
the organization. As a result, how an employee perceives his opportunity for advancement
influences his level of job satisfaction.
People on the Current Job: The people who work with an employee in the workplace influence
his overall job satisfaction. JDI asks employees if their co-workers are stimulating, boring, slow,
and so on.
On-the-job supervision: Because the supervisor is closest to the operative employee and
performs the linking-pin function, the supervisor has the power to make or break an employee.
Thus, the employee's perception of the supervisor as good or bad, supportive and encouraging or
discouraging, has a significant impact on the employee's job satisfaction.
According to Noe et al. (2003), satisfied employees are more eager and willing to apply new
knowledge and innovation to their job performance, which always helps organizations gain a
competitive advantage in the business arena. Job satisfaction is also an effective strategy for
attracting top talent. Employees who are satisfied with their overall job facets in an organization
will attempt to recruit people they know who have the skills and competencies required to help
the company. Furthermore, when current employees speak favorably and positively about their
organization, prospective employees see the organization as a destination of choice. This helps
organizations attract talented and experienced employees. Furthermore, job satisfaction fosters
positive employee attitudes, which are associated with lower rates of personal turnover and
absenteeism. According to Kasim and Ghaffar (2012), job satisfaction generates loyalty, self-
confidence, and high commitment to the organization, and it also leads to productivity
improvement and the elimination of organizational deviant behaviors, as well as absenteeism and
turnover (Linda & Michael, 2014).
Job satisfaction is the total feeling of liking or disliking one's job. It is an effective or
emotional reaction to the various aspects of one's job. It is an individual's overall attitude and
perception of one's job. Job satisfaction, according to Baridam and Nwibere (2008), is the degree
to which an individual feels negatively or positively about the various aspects of job tasks, the
work setting, relationships with co-workers, and the job itself. Individuals who are highly
satisfied with their jobs have positive attitudes toward their work, whereas those who are
dissatisfied with their jobs have negative attitudes toward their work (Puskpakumari 2008).
According to Luthans (2005), a pleasurable or positive passionate state resulting from the
appraisal of one's experience is defined by Locke (2000). Job satisfaction is a result of
employees' perceptions of how well their work provides those things that are deemed important.
Job satisfaction is also defined as the reintegration of the effect produced by a person's
perception of satisfaction of his needs in relation to his work and the tasks that surround it
(Saiyaden, 1993).
Performance is heavily influenced by perception, values, and attitudes. There appear to be so
many variables influencing job performance that it is nearly impossible to keep track of them all
(Puskpakumari, 2008). Individual ability, skill, and effort in a given situation are referred to as
performance (Porter and Lawler, 1974). Performance is the result of an employee's, group's, or
organization's effort on the job. Effort is an internal force that drives a person to work willingly.
Employees develop an attachment to their job or make an effort to perform better when they are
satisfied with their job and their needs are met. Increased effort leads to improved performance.
According to Richard et al. (2009), organizational performance is defined as an organization's
actual output or results as measured against its intended outputs (or goals and objectives).
Financial performance (profits, return on assets, return on investment, etc.), product market
performance (sales, market share, etc.), and shareholder return are the three explicit areas of firm
outcomes covered by organizational performance (total shareholder return, economic value
added, etc.). Organizational performance, according to Market Business News (2019), entails
"analyzing a company's performance against its objectives and goals." In other words,
organizational performance refers to how well an organization performs or achieves its
predetermined objectives and goals.

Related Studies
Job satisfaction is critical because it has numerous positive organizational outcomes as well as
important positive outcomes for individual employees. According to Cranny et al (2004), job
satisfaction fosters positive high staff morale among employees. When an employee is
dissatisfied, he either directly or indirectly communicates his displeasure to the rest of the staff.
This can result in a significant decrease in overall staff morale as well as a significant decrease in
productivity. A dissatisfied and unmotivated employee, on the other hand, is a serious threat to
the well-being of any organization. Employee commitment to an organization grows as a result
of job satisfaction. An employee who is satisfied will want to stay in the job and give his or her
all to his or her employer, whereas an unsatisfied employee will always be looking for another
job and will leave the organization at the slightest chance or opportunity. Furthermore, job
satisfaction increases the intensity of motivation among employees, as well as the job quality and
productivity level of employees (Ahmad et al., 2012; Seema & Maryam, 2013; Aaron et al.,
2015).
According to Anwar, 2017,” Employee satisfaction has long been a focus of industrial and
organizational psychologists' research. Some people enjoy working and consider it an important
part of their lives. Some people, on the other hand, despise their jobs and only work because they
have to. Job satisfaction indicates how much people enjoy their jobs. Job satisfaction is the most
researched area of organizational behavior “. For a variety of reasons, it is critical to understand
the level of job satisfaction, and the findings of job satisfaction studies have an impact on both
workers and organizations. From the perspective of the workers, it is obvious that people prefer
to be treated fairly. If employees feel respected and satisfied at work, this could be a sign of good
treatment. According to the organization, good job satisfaction can lead to better worker
performance, which affects the company's results (Smith et al. 2020). Employee satisfaction is
widely regarded as a key driver of employee retention and productivity.

Employee satisfaction is a prerequisite for increasing productivity, responsiveness,

quality, and service recognition. Job satisfaction is influenced by intrinsic and extrinsic
motivators, the quality of supervision, social relationships within the work group, and whether or
not individuals succeed or fail in their work. One of the key issues that have attracted the
attention of organizations and scholars is job satisfaction. As competition intensifies as a result
of globalization, managers place great importance on job satisfaction. Job satisfaction can be an
important factor in organizational involvement in many studies. Happy employees make extra
efforts and actively contribute to the performance and efficiency of their organization. Job
satisfaction leads to increased productivity, profitability, and employee engagement with the
company (Thiagaraj & Thangaswamy, 2017).

A study by Thiagaraj and Thangaswamy (2017) presents a variety of questions that need
to be clarified when studying job satisfaction, work satisfaction, work attitude, and work ethic
are well-defined terms. According to research, job satisfaction affects productivity, employee
turnover, absenteeism, safety, stress, unionization, and other difficulties. Work satisfaction can
be measured in a variety of ways. Rating scales, job description indexes, Minnesota satisfaction
surveys, critical incidents, interviews, and behavioral trends are some of the tools available.
According to Paais, M., and Pattiruhu, 2020, "it is believed that the behavior that helps the firm
to be successful is most likely to happen when the employees are well motivated and feel
committed to the organization and when the job gives them a high level of satisfaction." The
research showed that the key factors affecting job satisfaction are career opportunities, job
influence, teamwork, and job challenge. (Riyadi, 2020) ".

Kamdron 2015, demonstrated that work motivation is strongly associated with job
satisfaction in his research with 767 employees working in both private and public offices in
Estonia. On the other hand, Dartey-Baah and Harlley (2010) stated that employees' job
satisfaction does not always predict their level of motivation. The same was discovered when the
focus shifted from motivation to job satisfaction. Nonetheless, she acknowledged that an
employee's level of satisfaction is related to how well he or she performs the job, participates in
the training that is provided to him or her, and the level of empowerment, incentives, and
flexibility of his or her working hours. Based on an extensive literature search conducted by the
researchers on more than 60 studies and scholarly papers published in various periodicals and
research databases online, it was discovered that work motivation and job satisfaction have been
widely studied over the last 20 years, with the majority of studies conducted among employees in
the private be sector.

Compensation policies play a critical role in motivating employees to deliver high levels
of performance, discretionary effort, and contribution. Motivation usually begins with someone
recognizing an unsatisfied need. Then a goal is set to be achieved in order to meet the need.
People can be rewarded and incentivized to work harder to achieve their goals. The social
context will also have an impact on motivation (Anwar & Shukur, 2015). This context includes
organizational values and culture, as well as leadership and management, as well as the influence
of the group or team in which a person works. Intrinsic or extrinsic motivation can exist. Intrinsic
motivation can be defined as the process of motivation by work itself insofar as it meets the
employee's personal needs. Intrinsic motivation is self-generated, and it is believed that people
seek jobs that will best meet their needs.

Employee commitment is critical for improving employee performance because committed

employees will always support the achievement of organizational goals because high employee
commitment can improve their performance (Benny Agus Setiono, Ida Ayu Brahmasari, and Siti
Mujanah, 2019). Employees who have a significant impact on employee performance, according
to the findings of Yusuf Arnold, Ida Aju Brahmasari, and Riyadi Nugroho's research (2018).
This implies that organizational commitment is critical to improving employee performance.

Almato et al. (2020) examined work satisfaction through the lens of need fulfilment, using
Maslow's hierarchy of needs as a guide. In recent years, the emphasis has shifted to cognitive
processes. Unlike popular belief, Herzberg and Mausner proposed that satisfaction and
dissatisfaction were two distinct phenomena that could even be considered unrelated. They
believed that intrinsic factors (factors related to work done) provided satisfaction, whereas
extrinsic factors (factors related to salary, stability, and job security) caused dissatisfaction. The
Motivational Hygiene Theory developed by Herzberg and Mausner has dominated research on
the nature of work satisfaction and served as one of the theoretical foundations for the
development of work satisfaction measurements. Incentives, both intrinsic and extrinsic, have
been shown to influence professional work satisfaction. It served as one of the theoretical pillars
for researching the nature of job satisfaction and developing a work satisfaction assessment.
Incentives, both intrinsic and extrinsic, have been shown to influence professional work
satisfaction.

Furthermore, Worf (1970) defines job satisfaction as a fulfilment that must be met within an
employee's work environment, addressing both physical and psychological needs. Job
satisfaction, like Herzberg's two-factor theory, refers to an employee's positive attitude toward
their job, including feelings of enjoyment and happiness while performing their duties. This
leads to job satisfaction studies that focus on employee motivation. Similarly, Butler and Banik
(1991) defined job satisfaction as "personal fulfilment and gratification from the workplace"
(Liu, Aungsuroch, & Yunibhand, 2015). Pool (1997), on the other hand, defines job satisfaction
as an attitude that people have toward their jobs. And it was people's perceptions of their jobs.
According to Locke and Henne (1985), job satisfaction is defined as the employee's value
judgment and response as satisfied and fulfilled in perceiving their job values. According to
Kalleberg (1977), there is a clear distinction between satisfaction and the specific dimensions of
work roles in which individuals classify their satisfaction. Despite the unitary concept of job
satisfaction, Kalleberg emphasizes that it can be represented in multiple dimensions.

Tarcan et, al (2017) Job satisfaction is the primary driver of organizational success (Hayajneh
et al., 2021). As a result, Shana Goldwyn asserts that job satisfaction is a critical factor in an
organization's overall efficiency (Burmad & Malik, 2018). And it is critical to ensure that every
employee in a company is satisfied with their workplace in order to increase productivity and
performance (Cajuday, Reyes, Joaquin, Ronquillo, & Al-Kwihi, 2019). According to Rivera-
Rentas (2019), job satisfaction influences employee retention, motivation, burnout, and job
performance, making it an important topic for researchers. Organizations with high job
satisfaction can achieve significant results while maintaining high employee retention and
organizational commitment. It has been demonstrated that a satisfied worker is more engaged
with their work. (Almato et. Al, 2020).
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