Effect of Organizational practices on employee Satisfaction

Submitted By

S.No Name Reg. No.

1 Ghulam Muhammad 20201-27686

2 Shahmir Gandhi 20201-28304

3 Sahaar Adeem Asif 20201-28222

4 Danish Saleem 20191-26745

A Research Report

submitted in partial fulfillment of the requirements

for the course of Methods in Business Research

to Dr. Irfan Hameed

at the Institute of Business Management,

Karachi, Pakistan

April, 2022
 Acknowledgments

We would like to thank Dr. Irfan Hameed for his assistance throughout this semester and

his assistance to make our term project possible. With team work we have completed this

project and we believe that this would be beneficial for us in future and beneficial for

those who read this to gather information regarding this topic.

Regards,

Team members.

Abstract

The purpose of this study is to evaluate the impact of organizational culture on employee

satisfaction and organizational commitment among employees in small and medium-

sized enterprises in Karachi, Pakistan. The study hypothesized that organizational culture

has a significant influence on employees’ satisfaction and that satisfaction also

significantly impacts organizational commitment among employees. The data are

collected from a sample of 100 employees.

In this study we have conducted a thorough research by interpreting results for

calculating employee satisfaction and finding relationship with organizational

performance. This study uses exploratory approach and analyses data numerically which

was obtained by conducting a online survey through random sampling.

The current study contributes to providing a practical insight into the relationships

between organizational culture, employees’ job satisfaction, and organizational

commitment. Based on that, managers can develop suitable personnel policies for their

organizations to simultaneously enhance employees’ performance and satisfaction, which

makes them stay with the company.

Contents

Acknowledgments.......................................................................................................................................2

Abstract.......................................................................................................................................................2

List of tables................................................................................................................................................3

List of figures...............................................................................................................................................3

Introduction.................................................................................................................................................4

Overview.................................................................................................................................................4

Problem Statement.................................................................................................................................4

Research Objectives................................................................................................................................4

Research Questions.................................................................................................................................4

Outline of the study.................................................................................................................................5

Literature Review........................................................................................................................................5

THEORETICAL FRAMEWORK....................................................................................................................6

Research Method.........................................................................................................................................7

Procedure of data collection...................................................................................................................7

Sampling technique and sample size.......................................................................................................8

Results.........................................................................................................................................................8
Discussions, Conclusion, Implications, Limitations & Future Research......................................................10

Discussions............................................................................................................................................10

Conclusion.............................................................................................................................................10

Implications...........................................................................................................................................11

Limitations.............................................................................................................................................11

Future Research.....................................................................................................................................11

List of tables

S.NO Tables Page No

1 Model summary 12

2 ANOVAa 13

3 Coefficientsa 13

4 Hypotheses Assessment Summary 14

List of figures

S.NO Figures Page No

1 Hypothesized Model 10
 Introduction

Overview

Our research is based on the impact of organization practices and performances on

employee satisfaction. We will analyze whether the independent variables (workplace

environment, training and development, Rewards (intrinsic and extrinsic)) have a positive

impact on the dependent variable (Employee Satisfaction) or not. For this purpose we

have conducted a survey and gathered a sample of 100 respondent who gave their

respective opinion on the questions which were asked in the questionnaire. We will

discuss in the report about the sampling techniques, sampling size, hypothesis,

limitations, research findings and other valuable things regarding the research.

Problem Statement

The problem that is being identified in our research is that many organization practices

affects employees mental health and reduces employee satisfaction. This research is a

connection between the variable identified and concluded that whether employee’s

treatment according to their organizational practices affects their level of satisfaction or

not or there is any other reasons which increases or decreases their level of satisfaction

Research Objectives

The objective of the study is to investigate the impact of organizational practices on job

satisfaction and commitment among employees. In other words, by assessing the

influence of organizational cultural factors, we can determine the level of employee

satisfaction and how satisfaction has an impact on employee commitment. The findings
in this study may suggest some practical and managerial implications for managers about

enhancing employees’ job satisfaction, thereby encouraging employees to commit to their

organizations.

Research Questions

1. Organization considers training as a part of organizational strategy.

2. Training and development activities help to maintain employee relation.

3. Training helps in individual growth.

4. Training helps in organizational growth.

5. Training enhances productivity and performance.

6. Friendly interactions motivate employees.

7. I have all the resources I need to do my job successfully

8. I have opportunity to express myself.

9. I feel like my work is valued.

10. I am comfortable with the environment I work in.

11. I get optimal reward for the work I do.

12. Extrinsic rewards motivate for work.

13. I feel like I get rewarded for good work.

14. I am satisfied with the opportunity I have to grow within the company
 15. Considering everything I am satisfied with my job.

Outline of the study

The main point this study presents is to prove that our hypothesis that we have

constructed that says good workplace environment, training and development, and rewards

have positive impact and increases employee satisfaction is proved by the data we have collected

through questionnaire

Literature Review

Job satisfaction is by all accounts an exceptionally intriguing subject concerning the

organizational behavior of the organization. As indicated by Taneja et al (2015), job satisfaction

is an examination of the appraisal level of the person about how the working environment fulfils

its demands. The satisfied employees will work for the development and progression of the

association and will invest each energy to make its organizational culture solid. Several

researchers expressed that job satisfaction is fundamental for employee inspiration (Aldridge and

Fraser, 2016; McFadden et al, 2015). Some evidence suggests that if workers are satisfied with

their job performance, their usefulness with the organization becomes more noteworthy. In this

manner, it brings about solid employee commitment with the association.

Organizational Performance had been the most serious need of the administration researchers for

a for quite a long time. Enormous quantities of the researchers have worked in solicitation to sort

out how organizational performance adds to the accepted procedures of the executives. The

researchers moreover recommend that to truly evaluate the performance two things ought to be

checked completely; initially the idea of performance and besides the idea of measures on which

the performance is being determined (Pierre J., Timothy M., George S., and Gerry, 2009)
Employee satisfaction has been considered as a fundamental part to gauge the

organizational performance. Positive attitudes towards the work environment creates

positive impact on the performance of the firm while dissatisfaction depicts negative

picture of the firm. Intrinsic as well as the extrinsic characteristics of the employees

should be catered by the directors to give a sound work setting. It should also be kept in

mind that how b creating such a satisfactory environment will lead to better

organizational performance (O. & Omah, 2019).

Gravan et al. (2008) propose that employee satisfaction is a magnificent tool that can play

a vital role in enhancing various organizational practices. Inadequate salary structure,

lack of opportunities, weak incentive schemes for excellent job performance, promotion

code based on seniority rather than actual performance, delays in promotion, non-existent

compensation modules, punitive treatment, and absence of motivational strategies are the

salient determinants of employees performance and their engagement at workplace.

Schuster et al (2016) argued that if workers are well content with the culture of the

organization, they will be motivated to work tirelessly to boost the business performance

over their rivals. From their perspective, the duties of the employee are clear, which

would inevitably boost the organizational performance level. MasMachuca et al (2016)

reported in their research that each positive organizational culture will increase employee

satisfaction and will lower organizational turnover ratio. Although, all companies have a

culture but any company that does not incorporate encouraging and compensatory

cultural traits, such as, incentives for professional development, training and supervisory

support, their workers are not as engaged in a well-mannered way. The effects of
alienated and unengaged workers will adversely affect the competitive advantage of the

company.

THEORETICAL FRAMEWORK

Workplace environment

H1: Good workplace environment has positive impact on Employee satisfaction.

Good workplace environment always have a positive impact on employee which helps

him/her to increase efficiency and help organization towards achieving its vision and

mission. A positive work environment is a space that promotes employee wellbeing,

productivity and growth. A few factors go toward this, including having good working

practices, relatable values, a supportive atmosphere, and a culture of trust. Good work

place environment also helps an employee to reduce its work stress and creates a good

work-life balance.

Training and development

H2: Effective training and development programs have positive impact on Employee satisfaction.

Training helps an employee to develop its skills and increase its current potential.

Training and development can help employee tackle with the difficulties he/she is facing

in job and can help in overcoming performance gaps that are based on lack of knowledge

and skills. This can help organization and its teams to increase overall performance and

productivity.
Rewards

H3: Rewards have positive impact on Employee satisfaction.

Rewards can be one of the most important factor which can help employee to stay satisfied and

reduces employee turnover. There are two types of rewards intrinsic and extrinsic. If organization

keeps balance between extrinsic and intrinsic rewards, it leads to high satisfaction and

performance. (Adeoti et al, 2006) found that non-financial rewards such as recognition,

achievement, responsibility and personal growth have positive effect on worker performance.

Figure 1.1 Hypothesized Model

Good Workplace
Environment
+ve

Effective training and +ve Employee satisfaction

development

Rewards (Intrinsic and

Extrinsic)
+ve

Research Method

Procedure of data collection

This portion consists of a review of the methodology and essence of the analysis. In addition, a

description of the methods used to collect research results, the analysis of these data and the
consequences of the test hypotheses has been presented. This chapter further explains the data

quality issues associated with the analysis methodology that was chosen. In order to measure the

study variables of employee satisfaction and the extent of impact it poses on corporate

performance; it is important to use the quantitative numerical methodological method' which is

commonly used for deductive models of science.The sample of the current study is

predominantly empirical where the key purpose of this examination is to determine the influence

of workplace environment, training and development, rewards on the extent of employee

satisfaction. The study design is defined as a general strategy for how the researcher can test the

study theory, resolve research problems and accomplish the research objectives. Three distinct

types of study architecture are commonly used by scholars in the fields of explanatory, analytical

and exploratory studies .

The exploratory method of analysis focused on the discovery of new ideas or hypotheses on

particular problems based on the findings of the survey, the informative sample used to examine

the qualitative knowledge of individuals, cases or circumstances, and the explanatory analysis

clarified the relationship between study variables (Dudovsiky, 2018). Therefore, despite the

reasons provided above, we will use an exploratory method of research.

Sampling technique and sample size

100 employees of different organizations were the targeted audience and random sampling was

used in order to get the surveys filled. The survey was further divided into four parts:

1. First section had questions related to the effectiveness of training and development.

2. The second section had questions related to a good workplace environment.

3.The third section had questions related to rewards.

4.The fourth section had questions related to employee satisfaction.

The respondents ' answers are tested through “The Five Likert Scale” answer are divided sections

as (1 to 5) in following way:

5 = Strongly Agree

4 = Agree

3 = Neutral

2 = Disagree

1 = Strongly Disagree

Results

We have used simple linear regression to propose our research findings and software that we have

used to obtain these result tables is IBM SPSS Statistic.

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .832a .693 .683 .40418

a. Predictors: (Constant), Rewards, Effective_training_and_development,

Good_workplace_environment

R-correlation coefficient has a positive sign which shows positive relation and the reading is

0.832 which is between 0.8 and 1 which shows a very strong relation between observed and

model-predicted values of the dependent variable.

Relation between organizational practices and employee satisfaction is positive and very strong,

with one unit change in organizational practices employee satisfaction will increase by 0.832.

R square is the coefficient of determination which shows a reading of 0.693 which means 69.3%

in percentage form, which means 69.3% change in Employee satisfaction is caused by

organizational practices and remaining by unknown factors.

 ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 35.396 3 11.799 72.223 <.001b

Residual 15.683 96 .163

Total 51.078 99

a. Dependent Variable: Employee_satisfaction

b. Predictors: (Constant), Rewards, Effective_training_and_development,

Good_workplace_environment

Since the significance value of Anova table is <0.001, which is less than 0.05, so the applied test

is suitable.

Coefficientsa

Unstandardized Standardized

Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) .232 .251 .922 .359

Good_workplace_environment .352 .096 .358 3.681 <.001

Effective_training_and_development .057 .078 .058 .726 .470

Rewards .509 .097 .481 5.269 <.001

a. Dependent Variable: Employee_satisfaction

First hypothesis that Good workplace environment has positive impact on Employee satisfaction

has been accepted as P-value is <0.001 which is less than 0.05.

Second hypothesis that Effective training and development programs have positive impact on

Employee satisfaction has been rejected as P-value is 0.470 which is greater than 0.05.
Third hypothesis that Rewards have positive impact on Employee satisfaction has been accepted

as P-value is <0.001 which is less than 0.05.

Hypotheses Assessment Summary

S.No. Hypotheses P-Value Empirical Decision

1 Good workplace environment has <0.001 Accept

positive impact on Employee

satisfaction.

2 Effective training and development 0.470 Reject

programs have positive impact on

Employee satisfaction.

3 Rewards have positive impact on <0.001 Accept

Employee satisfaction.

Discussions, Conclusion, Implications, Limitations &

Future Research

Discussions

The study of organizational culture and its impact on job satisfaction has become a major topic

in the global corporate world, and a lot of time has been spent on it. There is a strong link

between organizational culture and employee happiness, which has a significant impact on

business performance.  Staff satisfaction and efficient employee performance are fueled by a

highly gratifying culture. Job satisfaction is a measure of an organization's culture. It's critical to
provide pleasant working conditions for all employees so that they are inspired to perform well

and become more invested in their work.

A positive working environment is essential for workplace culture and the employee experience.

It influences everything from stress levels and mental wellbeing to productivity and

performance. It encourages people to perform at their best, it boosts the moral of the employee

leading to longer retention in the business and helps them in the long run.

Training and development program are also very helpful to improve the self-efficiency of

individuals.  In this changing world training both physically, socially, mentally and intellectually

are very essential for up gradation of not only the skills of employee but also of the organization.

Employees’ training and development programs are the part of good management practices and

good risk management strategies. Therefore, both employers and employees have responsibility

for improving skills.

Intrinsic motivation involves doing something because it's personally rewarding to you. Extrinsic

motivation involves doing something because you want to earn a reward or avoid punishment.

Intrinsic rewards are intangible; they usually arise from within the person who is doing the

activity or behavior.  Extrinsic rewards are tangible, they are usually given to the person doing

the activity; as such, they are typically not from within the person.

Conclusion

After testing the impact of Organizational practices on Employee satisfaction it can be concluded

from the results obtained from this study that Employee satisfaction does indeed gets positively

affected by the Organizational practices. In this research, the 3 hypothesized variables were
Good workplace Environment (H1), Effective Training and development (H2), and Rewards

intrinsic and extrinsic (H3).

Although several other variables could come into action when talking about increasing

Employee satisfaction, these 3 variables play an extremely vital role in creating an appealing

image of a business. H2 variable (Effective training and development) has been rejected, and

the reasons could have been higher training costs or quality of training was not up to the mark.

However, H1 and H3 are accepted.

Implications

This study provides valuable insights to the employers in different sectors in the industries on

how to keep their employees motivated and satisfied. As the H1 and H3 variable were accepted,

this indicates that keeping a good workplace environment and providing rewards (intrinsic and

extrinsic) would keep the employee engage and motivated. Whereas the H2 variable (training

and development) was rejected, this gives an insight that this factor shouldn’t be a source of

concern for the employers compared to other factors.

Limitations

While our research has valuable offerings, it also has few limitations that justify consideration.

One of the major limitations is the use of probability random sampling technique and sample

size, which limits to the generalization of findings and imposes caution in drawing conclusions.

Another limitation is that majority of our respondents are students which have little or no work

experiences, which could hinder the reliability of the research.

Future Research

Moreover, we used a survey design with elements of Organizational practices as situational

variables. In future more variables could be tested for instance, job rotations, flexibility and etc.

In future stratified sampling technique could be used as it would amplify the accuracy and

reliability of the research.

References

Reidhead, Christine. (2020), Impact of Organizational Culture on Employee Satisfaction: A Case

of Hilton Hotel, United Kingdom. In: Journal of Economics and Business, Vol.3, No.1, 432-437.

Journal of Business and Social Review in Emerging Economies ISSN: 2519-089X (E): 2519-0326

Volume 6: No. 3, September 2020

ROLE OF HUMAN RESOURCE PRACTICES IN EMPLOYEE PERFORMANCE AND JOB SATISFACTION

WITH MEDIATING EFFECT OF EMPLOYEE ENGAGEMENT Author(s): Tehmina Sattar, Khalil Ahmad

and Syeda Mahnaz Hassan Source: Pakistan Economic and Social Review , Summer 2015, Vol. 53,

No. 1 (Summer 2015), pp. 81-96 Published by: Department of Economics, University of the

Punjab

The Influence of Organizational Culture on Employees’ Satisfaction and Commitment in SMEs: A

Case Study in Vietnam Thuy Dung PHAM THI, Anh Tin NGO, Nam Tien DUONG, Van Kien PHAM /

Journal of Asian Finance, Economics and Business Vol 8 No 5 (2021) 1031–1038

 Appendix

Research Questions

1. Organization considers training as a part of organizational strategy.

2. Training and development activities help to maintain employee relation.

3. Training helps in individual growth.

4. Training helps in organizational growth.

5. Training enhances productivity and performance.

6. Friendly interactions motivate employees.

7. I have all the resources I need to do my job successfully

8. I have opportunity to express myself.

9. I feel like my work is valued.

10. I am comfortable with the environment I work in.

11. I get optimal reward for the work I do.

12. Extrinsic rewards motivate for work.

13. I feel like I get rewarded for good work.

14. I am satisfied with the opportunity I have to grow within the company

15. Considering everything I am satisfied with my job.