JOB SATISFACTION AND EMPLOYEE PERFORMANCE

CHAPTER 1

1. Introduction

One of the most significant aspects of a person's life is their job. Their way of life and
social lives are influenced by their work. As a result, having a contented workforce is critical
for any business. Nowadays, the private sector plays an important role in boosting Pakistan's
economy. They not only provide excellent services, but they also provide employment
chances to a great number of individuals. The purpose of this study is to learn about
employee work satisfaction and its link with performance level, keeping in mind the
contribution of the private sector to society and the significant role of job satisfaction in
improving employee performance. There is a widespread belief that an organization's total
productivity and success are dependent on employees' effective and efficient performance
(Green et al., 2016), and that greater performance is dependent on employees' job happiness
(Hira et al., 2012). Researchers have identified numerous dimensions of job satisfaction, their
relative relevance, and their link to performance and productivity for this purpose.

Employment satisfaction refers to an employee's good and negative feelings toward

his or her job, as well as the degree of happiness associated with the job (Singh et al., 2013).
As a result, one of the most commonly explored issues in organisational psychology is work
satisfaction. Job satisfaction, according to Locke (1976), is the pleasant and enjoyable
sensation that comes from evaluating one's job or work experience. Previous research has
shown that when an employee is satisfied, he will perform at his highest level to meet the
organization's goals (Jalagat et al., 2016). Employees that are very satisfied are more likely to
be prompt and reliable, as well as more productive, committed, and fulfilled in their personal
life. Employees should be offered options for growth, such as pay scales, employee
engagement in policy making, and initiatives to build organisational commitment, in order to
boost job satisfaction and improve performance (Feinstein and Vondrasek 2012). Similarly,
safety and good relationships with supervisors and co-workers are the most important factors
for employees' organisational commitment (Volkwein and Zhou 2003). The nature of the job,
supervisory style, job security, recognition, and advancement are all important factors for
employees' organisational commitment (Mosadeghard, 2008). Employee involvement in
pension plans, profit-sharing schemes, and job security are also positively connected with job
happiness, despite the fact that many studies have identified professional development
opportunities as the most important factor of job satisfaction (Sirin, 2009).

Organizational success and failure are determined by their culture, which is why it is
criticised when they fail and commended when they succeed (Abazov et al., 2011).
According to research, organisational culture affects employee attitudes in terms of job
satisfaction and commitment (Farzianpour et al., 2016). Because of cultural differences,
management theories and models created in one region of the world may not be applicable in
another (Denison et al., 2003). If these models and ideas were formed in Western society and
then applied in Eastern culture, their validity becomes more questionable (Farzianpour et al.,
2016). Higher education is a valuable resource for both rich and developing countries, and it
cannot thrive without professors fulfilling their responsibilities in educational institutions
(Mansor et al., 2010). As a result, educational institutions in Pakistan must avoid mechanistic
approaches to achieving their predetermined objectives and instead cultivate a culture that
encourages employee happiness and engagement (Sabri et al., 2011). Job satisfaction is a
significant element that influences employee turnover intentions, either directly or indirectly.
Employees who are dissatisfied create a slew of concerns or problems for their bosses rather
than tackling the matter.

Instead of using their energy to achieve the organization's aims and objectives,
dissatisfied employees create very dangerous challenges or issues. If disgruntled personnel
remain in the organisation, they may engage in counterproductive actions such as bad service,
theft, equipment sabotage, and malicious gossip (Steers M., 1981). Employees who are
unsatisfied show physical symptoms such as despair, lassitude, stress, insomnia, and
apprehension, according to the literature (Frese, 1985). Employee discontent as a result of
these issues leads to a high degree of turnover intention (Sarminah, 2006), which eventually
leads to real turnover (Price, 1986). In almost every industry, remuneration is inversely
proportional to the likelihood of turnover. According to a study, work satisfaction is strongly
linked to the likelihood of a company's employees leaving (Griffeth, 2000). Workers are
quitting their current employers because they may earn a higher income at another company.
Those that place a high value on their pay or remuneration package are more likely to leave
(Rahman, 2008).

Economists have been paying close attention to job satisfaction in recent years. Part of
the fascination in job satisfaction stems from the link between it and employee behaviour.
Employees who are more pleased are less likely to leave their employer (Clark 2001), have
lower absence rates (Clegg 1983), and are more productive (Mangione and Quinn 1975).
According to Ogbulafor (2011), worsening staff performance in Nigerian higher institutions
is quickly becoming a severe threat to the sustainability of Nigerian universities, which must
be addressed immediately. As a result, it is thought that employee performance is critical to
the growth and profitability of an organisation. Employees are regarded as key business
resources that help an organization's daily activities and operations (Mudah, Rafiki & harahap
2014). Similarly, Oluwafemi (2010) claimed that the efficacy and efficiency of an
organisation is determined by the effectiveness and efficiency of its people.

In this research, reported job satisfaction can be viewed as a window into employees'
employment preferences. Workers who report a high level of job satisfaction are indicating a
preference for the current job, as evidenced by the lower quit rates of highly satisfied
workers. Job satisfaction is the closest proxy for the usefulness people obtain from their jobs
in the absence of more direct metrics. Understanding the factors that influence economic
well-being is a major interest of economic science, and work satisfaction is an important
aspect of overall happiness. Employee work performance has always been a big difficulty in
organisational management, and every business organization's main goal is to adopt effective
approaches to inspire employees to attain and deliver higher job performance as well as boost
organisational competitiveness. Employee productivity and performance will be strongly
influenced by an employer's capacity to comprehend employee contentment with regard to
schedules and daily obligations. According to Howard (2009), job satisfaction is a
combination of likeable and unlikable moods or behaviour of an individual worker on their
work schedule, stating that while someone is employed, they may have desires, wants, and
expectations that determine their reason for being there. Job satisfaction represents the
enormity with which optimism is aligned with practical rewards and advantages.

According to Mowday, Porter, and Steers (2013), the majority of today's employees
have a high level of job discontent, which leads to bad attitudes on the job and, as a result,
deteriorates their performance capacity as well as their working environment. Nigerian
universities continue to grow, and this is becoming a major concern, particularly among
professors (Ferreira & Otley, 2005). Nigerian universities are currently a centre of attention
in terms of employee performance. Employee performance has recently been emphasised in
terms of transparency (Hood & Healed, 2006), managerial accountability (Broaddbent &
Laughlin, 2003), performance assessment (Ferreira & Otley, 2005), and managerial control
(Ferreira & Otley, 2005). (Berry, Broadbent & Otley, 2005). Furthermore, higher education
institutions are often viewed as public institutions with a responsibility to increase awareness,
rich ideas, and epitomes (Arikewuyo, 2012). As a result, the university's non-academic
workforce plays a critical role in its management, necessitating the need for them (non-
academic personnel) to be given the opportunity to further their human abilities and obtain
additional training in order to be relevant in the twenty-first century (Oyeyemi, 2012).

Ajibade (2012) similarly maintains that the pursuit of educational dominance in the
classroom is a worthy goal. Ajibade (2012) also maintains that the pursuit of educational
superiority in Nigerian institutions of higher education is not only the responsibility of
academic staff, but also of non-academic staff who play an important role by handling
secretarial and clerical tasks in order to maintain the right state that is required for education
to be impacted. Furthermore, the importance of non-academic staff participation in the
process of Nigerian universities cannot be understated, making it critical to be ignored in the
operational management of the Nigerian university system. In order to improve the value of
education in Nigeria, it is necessary to determine how such employees are treated at work, as
well as their attitude and job satisfaction, in order to improve their performance.
Organizational managers have always been concerned about employee job performance
(Kelidbari, Dizgah, & Yusefi, 2011). Similarly, employee performance is a fundamental
pillar of a company; as a result, characteristics that set the stage for high performance must be
scrutinised by companies in order for them to succeed (Abbas & Yaqoob, 2009).

According to Lee, et al. (2011), in a study titled "The effects of internal marketing,
job satisfaction, and service attitude on job performance among high-tech workers," job
performance is defined as workers' total performance in meeting the expected worth and
completing tasks within the organization's procedure and time constraints. Similarly, Liao et
al. (2012) define job performance as the benchmark for promotions, redundancy, incentives,
punishments, performance evaluations, and wage modifications. It also meets the demands of
employees to become more self-aware. Employee performance, according to Ahmad and
Khurram (2011), symbolises employees' broad beliefs about their behaviour and
contributions to the organization's success. However, Alagaraja1 and Shuck (2015) argue that
employee performance can be improved through training and development. Their study
aimed to discover prevailing viewpoints of organisational configuration and employee
engagement in order to understand reasons associated with enhancing individual
performance. Furthermore, Thomas and Feldman (2010) defined employee performance as
core task performance, which includes in-role performance, safety performance, and
creativity, citizenship performance, which is divided into target-specific and general
organisational citizenship behaviours, and counterproductive performance, which includes
general counterproductive work behaviour, workplace aggression, substance use, tardiness,
and absenteeism. Therefore, employee performance brings about innovation performance and
firm performance as a whole, in such a way that successful effort of fulfilled, inspired, and
devoted human resources produce innovative ideas for new products or services and increase
quality performance, operative performances, and client satisfaction directly (Sadikoglu and
Cemal, 2010).

If pay has been empirically demonstrated to have a major impact on productivity in

the private sector, such as research conducted by Lazear (2000), which demonstrates that the
use of incentives enhanced the productivity of Safelite Auto Glass plant glass workers by
20%. Similarly, Oluigbo and Anyiam (2014) showed that remuneration assisted workers in
Information Technology businesses boost their output / productivity, and urged that
management take all means to provide incentives to improve their employees' work ethic.
And the findings of Hameed et al. (2014), who discovered that salary, had a beneficial and
significant impact on the performance of Pakistani bank staff. What about its public-sector
application? Will it have the same impact as it does in the private sector? Several
investigations yielded conflicting findings. On the one hand, researchers with a background
in traditional economic theory and management behaviour theory argue that performance-
related benefits (remuneration) will improve individual performance if properly designed. On
the other hand, researchers with a background in traditional economic theory and
management behaviour theory argue that performance-related benefits (remuneration) will
improve individual performance if properly designed. As a result, these researchers
concentrate their efforts on developing strategies for implementing this remuneration
structure.

According to a study conducted by Burgess (2003), the implementation of

performance-based incentive schemes (remuneration) in the public sector was more difficult
than in the private sector due to multi-tasking, multi-principal, difficulty in determining
output size (performance), and the issue of intrinsic motivation from individual employees.
As a result, Burgess determined that, depending on the type of organisation, the remuneration
scheme in the public sector would be best. Promotions are a significant part of a worker's
career and life, and they have an impact on other aspects of the job. They are an essential part
of workers' labour mobility, as they frequently result in big income increases (Kosteas 2009),
and they can have a significant impact on other job features like responsibilities and
subsequent job attachment (Pergamit and Veum 1999). Firms can use promotions to reward
highly productive employees, incentivizing them to put up more effort. Promotions will only
be effective at motivating employees to put in more effort if they place a high value on the
promotion itself. Firms would otherwise simply employ pay raises to reward effort and
production. Given all of the ways that promotions can affect a worker's career and income,
the importance of promotions as a driver of job satisfaction has received very little
consideration.

People' wants and concerns should be addressed by all businesses since leaving a
company by an employee is a serious subject, especially for human resources because
attracting and retaining outstanding employees is one of the organization's key investments
(Iqbal et al., 2014). Because the corporate world is growing more competitive and bringing
new challenges to organisations, training and development is critical in today's reality.
Sustaining and surviving in such a dynamic environment is a huge and difficult task ahead of
them. To survive and stay ahead of the competition, businesses must always develop new
strategies to be competitive and provide the finest services to their clients in order to maintain
their market share and progress forward. And this will not be achievable if the organization's
staff do not update and enhance their abilities in order to keep up with their competition.
Organizations must provide the means to upgrade their employees in order to gain a
competitive advantage and achieve the best results, which they can do best by organising
training and development programmes that not only improve the employees' skills but also
improve their performance, motivation, and job satisfaction. Armstrong, M. (2001) defines
training as "the systematic development of an individual's knowledge, skills, and attitudes
required executing properly a particular activity or employment" (Chaudhary et al., 2016).

In this research, there are various advantages to offering ongoing training to

employees in order to assist them learn new skills and gain new knowledge. In order to
ensure that learners are satisfied with their training, it is necessary to do needs assessment,
plan and implement a programme, and evaluate the success of the training. Job training
satisfaction, according to Schmidt, refers to how employees feel about their on-the-job
training. Job training satisfaction (JTS), which affects attitudes about one's job such as job
satisfaction, may be attained by well-planned and prepared training activities in a training
programed, according to evidence (JS). As a result, their job satisfaction and plans to leave
will suffer significantly. In this chapter, we'll study about training, work pleasure, and the
quality of one's training. The most significant variables and approaches for developing
effective training programmers will be discussed. Job satisfaction, job performance, and job
training will all be examined in greater depth. JTS should always be kept in mind by human
resource professionals while planning and delivering training programmes, which is why this
chapter serves as an introduction.

The section 1 provides an introduction followed by section 2 which provides details

on the past research which has been carried out targeting on achieving the set research
objectives. The section 3 describes the relevant methodology selected to carry out research
and rationale for selection of variables and how the collected data quantifies in achieving
research objectives. Results of the data analysis are presented in section 4 followed by
conclusions and future research directions.

CHAPTER 2

2. Literature Review
2.1 Job satisfaction
Various empirical research on the factors influencing employees' job happiness and
turnover intention have been undertaken in several regions of the world, and various elements
have been discovered to have an impact on employees' job satisfaction and its effect on
turnover intention. Raddaha et al. (2012) looked into what factors influence work satisfaction,
discontent, and the desire to leave. Job happiness is influenced by supervision, co-worker
connections, and tenure, according to him. Low satisfaction with contingent rewards, fringe
benefits, and income, on the other hand, was strongly linked to the intention of employees to
leave their positions. He also discovered that while overall job happiness was unrelated to
demographic variables, there were multiple relationships between specific aspects of job
satisfaction and demographic variables. On various job satisfaction dimensions, the degrees
of satisfaction between men and women differed. It was also discovered that a significant
number of employees expressed a strong desire to leave their jobs due to low job satisfaction.
Kanwal and Majid (2013) looked into the aspects that contribute the most to employee work
satisfaction. Low compensation, long working hours, bonuses and prizes, and effective
communication were discovered to be contributors to job satisfaction or unhappiness, as well
as having an impact on employees' intentions to quit or stay in the firm.
 Non-monetary perks, according to Nyamekye (2012), have a direct impact on
employee work satisfaction. Employees were unsatisfied with their supervisors and their lack
of engagement in the decision-making process, which may have influenced their decision to
leave. Furthermore, according to Lee and Jimenez (2011), performance-based awards and
supervisory support minimise the likelihood of individuals leaving their existing
employment, and job satisfaction is the most important predictor of turnover intention.
According to a recent study, poor working conditions, a lack of career advancement, unfair
compensation, a lack of supervisory support, a lack of employee development, and job stress
are all factors that cause employees to leave an organization Mosadeghrad et al. (2008)
looked at the relationship between work satisfaction and employee turnover intentions and
discovered that there was a positive relationship between the two. He also discovered that
demographic characteristics, compensation, fringe benefits, promotion, supervision, coworker
relationships, task diversity, and working conditions are the strongest indicators of intention
to quit, and that job satisfaction and its components are the strongest predictors of intention to
leave. Nazim (2008) looked at job satisfaction and its effect on the likelihood of turnover.
Employees were very unsatisfied with promotion, moderately dissatisfied with compensation,
fringe benefits, and contingent rewards, and moderately satisfied with operational conditions,
co-worker relationships, work nature, and communication, according to his findings He also
discovered a link between turnover intention and compensation and promotion, which was
followed by supervision, fringe benefits, contingent rewards, operational procedures, co-
workers, nature of job, and communication. As a result, there was a strong link between
components of job satisfaction and overall job satisfaction as well as turnover.
Job satisfaction is an attitude that is shaped by and consistent with a variety of
specific likes and dislikes related to the job (Kabir, 2011). A person's job satisfaction is
measured in terms of a degree of satisfaction, which varies depending on the job. Job
satisfaction is an important indicator of how employees feel about their jobs and how
satisfied they are with it (Khan, et al., 2012). Individual satisfaction is connected to an
increase in organisational output (Lambert, et al., 2001). Individual job satisfaction is seen as
a critical aspect in an organization's success. A high degree of individual satisfaction in any
firm is significantly linked to a low incidence of employee turnover (Ghafoor, 2012). As a
result, keeping employees happy and pleased with their current jobs should be a top priority
for any company. Human resource management practises aim to allocate and assign human
capital in the most efficient and effective ways possible in order to achieve long-term
organisational goals. They provide a variety of advantages and benefits, which increase job
satisfaction, motivation, and organisational performance (Jeet, 2014).
Job satisfaction is a difficult topic that encompasses a wide range of emotions and
circumstances. Job satisfaction and its link to employee performance are becoming
increasingly important as the workplace grows more competitive and complex. -The purpose
of this study is to look into the satisfaction and performance levels of three important
professions in Peshawar: doctors, bankers, and university teachers. Health, as one of the most
important industries in both the public and private sectors, makes a significant contribution to
the country's overall development (Siddiq et al., 2016). Pakistan has a number of problems
when it comes to doctor job satisfaction. Due to a scarcity of research in this field, the
purpose of this study is to determine the level of satisfaction and performance of private-
sector medical doctors. - The majority of doctors working in teaching hospitals in Pakistan
were dissatisfied, according to a study (Sohag et al., 2012), due to factors such as bad
working environment, insufficient salary packages, job load, and so on.

2.2 Heories of job satisfaction

2.2.1 Maslow’s Hierarchy of Needs:
People aim to satisfy five basic wants, according to Maslow (1954), as quoted by
Jones and George (2007): psychological needs, safety requirements, belongingness needs,
esteem needs, and self-actualization needs. Managers in the organisation should assist the 8
subordinates in meeting these needs in order to keep them. Psychological requirements can be
met by paying a wage that allows a person to purchase basic necessities like food, clothing,
and suitable shelter. Job security, proper medical benefits, and secure working circumstances
can all help to meet safety needs. Self-actualization needs can be met by developing excellent
interpersonal interactions, esteem requirements can be met by providing promotions and
acknowledging successes, and belonging needs can be met by allowing people to use their
talents. Belongingness needs can be satisfied by promoting good interpersonal relations,
esteem needs can be satisfied by granting promotions and recognizing accomplishments and
self-actualization needs can be satisfied by giving people the opportunity to use their skills
and abilities to the fullest extent.
2.2.2 Herzberg’s Motivator Hygiene Theory:
According to Herzberg (1966), as cited by Jones and George (2007), the theory
distinguishes between motivator needs (related to the nature of work) and hygiene needs
(related to the physical and psychological context in which the work is performed), and
proposes that motivator needs must be met for high motivation and job satisfaction. Pleasant
and comfortable working environment, salary, job stability, good relationships with co-
workers, and effective supervision can all satisfy hygiene needs. Workers will be satisfied if
their hygienic needs are addressed, and they will be unsatisfied if they are not. The theory
highlighted the significance of distinguishing between intrinsic motivation (motivator needs)
and extrinsic motivation (hygiene needs), prompting researchers and managers to investigate
how employment may be created or rebuilt to be intrinsically driven (Jones and George,
2007). According to the theory, an organisation may keep critical employees by fulfilling
both intrinsic and extrinsic motivation. Some of these motivation theories were used in the
current study in the Assessment of Factors Influencing Employees' Job Satisfaction and
Turnover Intention in Commercial Banks of 9 Tanzania to assess how the related factors
named in the theories influence employees' job satisfaction and intention to leave.
2.2.3 Job performance:
Job performance, according to Jex (2002), can be described simply as all of the
actions that people engage in while at work. Employees frequently participate in behaviours
at work that have little or nothing to do with job specific responsibilities, according to Jex
(2002), hence this is an ambiguous description. On the other hand, limiting job performance
to solely actions related to task performance would omit a lot of productive work behaviour.
Job performance, according to Cambell mentioned in Jex (2002, p.89), refers to the activities
that employees engage in while at work. However, in order to be recognised in the domain of
work performance, such behaviours must contribute to organisational goals. Performance is
defined as a function of individual talent, skill, and effort in a specific scenario, according to
Porter and Lawler referenced in Pushpakumari (2008). Job performance can be defined as
ability, skill, and effort toward a job, according to Porter and Lawler's definition. According
to Pushpakumari (2008, p.91), an employee's skill and talents are largely stable in the short
run, and performance is defined in terms of effort applied to the task of an employee, with
higher effort resulting in improved performances.

2.3 Empirical studies on job satisfaction and job performance:

In their paper, Funmilola, Sola, and Olusola (2013) investigated the impact of job
satisfaction dimensions on job performance of employees of Small and Medium Enterprises
in the Ibadan metropolis, south western Nigeria, with the goal of providing empirical
evidence on how job satisfaction dimensions affect job performance in SME's. A null
hypothesis was included in the study's research hypothesis, which stated that work
satisfaction characteristics have no significant impact on job performance. A self-designed
closed ended questionnaire was employed in this study, with a sample size of 105 employees
and a simple random sampling technique. The data was analysed using both the Pearson
Product Moment Correlation Coefficient and Multiple Regression Analysis. According to the
study's data analysis and results interpretation, all job satisfaction dimensions (pay,
supervisor, promotion, work itself, and work condition) have a positive relationship with job
performance and jointly and independently influence job performance with (r =0.087, 0.303,
0.552, 0.108, and 0.352 df= 100, p.05), respectively. The Multiple Regression Analysis result
also revealed that job satisfaction dimensions (pay, supervisor, promotion, work itself, and
work condition) were both jointly and significantly independent predictors of job
performance (F (5,100) = 9.930; R2 =0.33; p.05), implying that job satisfaction dimensions
have a significant impact on job performance.
Alf and Bassem (2003) employed correlation solely without regression in their
empirical findings, which means the study may not indicate the impact of independent factors
on the dependent variable. However, the study's sample size (202) was adequate and included
significant aspects of job satisfaction. "Job satisfaction and Employees' Work Performance: A
Case Study of People's Bank in Jaffna Peninsula, Sri Lanka," according to Balasundaram
(2010). The study's two research questions were as follows: 1) How satisfied are employees
at Jaffna Peninsula's people's banks with their jobs? And 2) does employee job satisfaction
influence their work performance or not? The study's goals were to look at job happiness,
elements that contributed to job satisfaction, work performance, and offer some strategies to
increase employees' work performance through job satisfaction in a people's bank on Sri
Lanka's Jaffna Peninsula. For the study, four hypotheses were developed, saying that a high
degree of fair promotion, reasonable pay, appropriate work, and good working conditions
will result in high levels of employee work performance. Primary data was acquired through
direct personal interview with the help of a questionnaire in this study, which used stratified
random sampling with a sample of 60 employees. When it came to job satisfaction and staff
performance, the survey used a five-point scale ranging from strongly disagree to strongly
agree. To determine the link between job happiness and employee performance, the
researchers performed simple correlation analysis. According to the study's findings and
discussion, there is a relatively positive association between promotion and employee
performance, salary and employee performance, job itself and employee performance, and
working conditions and employee performance. Employee job satisfaction has a favourable
impact on performance, according to the study, and high levels of fair promotion, suitable
pay, appropriate work, and excellent working conditions contribute to high levels of
employee performance. Balasundaram (2010)'s empirical findings were based solely on
correlation rather than regression, which means the study may not have shown the impact of
independent variables on the dependent variable. Furthermore, the study's sample size (60)
was extremely tiny.
Employee job satisfaction is a significant aspect in determining a company's success.
When an employee enjoys his or her job, he or she will be more productive. Job satisfaction
is described as a broad statement of employees' positive feelings about their occupations
(Man M., 2011). When the climate, culture, and management identification are all in order,
job happiness rises. When employees are treated fairly by management, their job happiness
rises directly. Job satisfaction may also be defined as a pleasant or pleasant emotional state
resulting from an assessment of an employee's performance or work experience (Locke and
Latham, 1976). Favourable employment situations, good outcomes, and positive work
opportunities and attitudes all contribute to job satisfaction on three levels. There are ten
characteristics that lead to job satisfaction, according to Dr. Jeremy Dean (Dean, 2011).
These are the following:

● Little hassles – Employees will feel motivated when there are some daily hassles for

them and it is beyond their control. Thus, the job satisfaction will increase.

● Perception of fair pay – When there is a big difference between the actual and expected

pay, the job satisfaction of an employee tend to decrease.

● Achievement – Job satisfaction will increase directly when employees succeed to achieve

something.

● Feedback – No matter it is a negative or positive feedback, it will definitely boost an

employee’s motivation to improve or to maintain the same level of performance. So, the
job satisfaction will increase too.

● Complexity and variety – This factor is same with the previous factor which is little

hassles. When the job tends to be a bit complex and not under control, the motivation and
job satisfaction will be increased too.
● Control – Employees will feel more satisfy with their job when the job is under their

planning and control.

● Organizational support – When the management level is showing more concerns

toward employees or showing a higher level of support to the employees, the job
satisfaction of employees will increase.

● Work-home overflow – A balance of work-life balance will increase an employee’s job

satisfaction.

● Honeymoons and hangovers – Employees often tend to satisfy with the job during the

honeymoons period which is just a start for the job whereas employee will feel more
dissatisfied with the job during the hangovers period.

● Easily pleased – Employees who are readily pleased report higher work satisfaction than

those who are dissatisfied. Work satisfaction, according to Solomon Oyetola Olusegun
(2013), is an attitude resulting from a balance of many distinct loves and dislikes
encountered on the job. When employees are more satisfied with their jobs, it means they
are working in a more enjoyable atmosphere, which leads to fewer absenteeism and
turnover (Olusegun, 2013).
Empirical review:
This section covers the examination and evaluation of work satisfaction practises and
employee performance among firms by other authors or researchers, as well as the
significance of the relationship that has been established. The literature review is intended to
identify a research gap in order to justify this study and to demonstrate the link to the theories
discussed above.
2.4 Work Environment and Employee Performance:
The term "work environment" encompasses a wide range of considerations, including
the physical working environment, management's attitude toward employees, relationships
with associates, and working conditions (Emerson, 2007). "You have to find what turns
people on," Fran Tarkenton says, in order to figure out what motivates them. At the same
time, this is the most fundamental issue. A thrilling workplace environment necessitates
going above and beyond the present commitment and accommodating the employee's needs
(Smith, 2010). A situation is something that motivates and supports employees to be or
perform in order to achieve a specific goal. Furthermore, an influential working environment
is one in which employees believe they are well-managed. Regardless of how much data a
specific employee knows in relation to the business frames in general, it is critical for a
supervisor to give each employee the feeling of playing a self-animated, fundamental role in
something much bigger. To be honest, instilling trustworthiness is an important part of
energising staff and, as a result, increasing the overall efficiency of workouts (Chandrasekar,
2011).An employee's workspace is one of the most important records for evaluating their
working comfort and satisfaction. Because employees provide such a large portion of their
value to a partnership, it is critical for these partnerships to provide and maintain safe
working conditions. An alliance should provide all of the basic assets to its personnel and
make it practicable for them to carry out their responsibilities. Employees will be able to do
tasks more effectively as a result of this, and they will be more satisfied at work (Kawada and
Otsuka, 2011).
2.5 Remuneration and Employee Performance:
According to Dutra (2002), remuneration is the financial or non-financial
compensation that an employee receives as a result of their work. The money received is split
between direct and indirect remuneration. The amount of money earned by an employee for a
job well done is known as direct remuneration, and it is made up of both fixed and variable
remuneration (Chiavenato, et al., 2000). On the other side, indirect remuneration is provided
by the organisation to employees based on their performance in order to provide comfort and
security, such as life insurance, health insurance, auto insurance, vacation insurance, and
other social insurance. Remuneration is defined as a form of remuneration earned by
employees for services given to the company, according to Minister of the State Apparatus
(2011). Employee remuneration is typically used to inspire employees to do better quality
work, be more productive, be less easily transferred to other organisations, develop a service-
oriented attitude, and minimise corruption. Money or salary can be used as remuneration, as
well as fixed and variable allowances, incentives, and other benefits. The overall
compensation received by employees in exchange for their services is referred to as
remuneration. The salary of employees of the Directorate General of Taxation was measured
in exchange for financial and non-financial benefits in this study. Financial remuneration
refers to advantages granted to employees in accordance with their workload and incentives
in order to improve their performance in achieving the tax revenue target. Non-monetary
rewards, on the other hand, can include health insurance and/or vacation.
 Furthermore, success in accomplishing the organization's goals must be
complemented by the dedication of the organization's existing people resources. Business
activities can shape the development and improvement of human resources, improvement of
information systems, remuneration, and other businesses. Those efforts eventually led to the
efforts to improve employee performance. Davis (1996) says that the performance of
employees is the culmination of three elements which interrelate, namely skill, effort, and
external conditions. Skills are something brought by employees to the workplace such as
knowledge, intrapersonal skills, interpersonal skills, and technical skills. The skill level in
this case, dealing with "what to do" employees. Efforts are described as shown motivation of
employees to accomplish the job. External conditions are the defining element of
performance which support employee productivity. Bernardin, et al. (2001) further noted that
performance is defined as a set of gains arising from a specific job function or activity over a
specific time period. Quality, quantity, timeliness, and cost effectiveness are all performance
measures, according to Bernardin et al. (2001). Meanwhile, according to Kiragu and
Mukandala (2005), an employee's performance is the consequence of work completed in
carrying out tasks in accordance with responsibilities based on abilities, experience, honesty,
and punctuality.
In 2015, the Directorate General of Taxation flowed by letter No. S-64 / PJ.08 (2016)
about the supervision of the performance assessment taxpayers by Account Representative
and Supervision and consultation devision for the measurement of employee performance. In
terms of the impact of salary on employee performance, Widyastuti (2010) claims that poor
pay has an impact on employee performance. Kiragu and Mukandala (2005) discovered that
in various African countries, there is a strong link between salary and bureaucracy employee
performance (civil service). According to research conducted by (Kojo et al., 2013),
compensation has a considerable impact on employee performance.
2.6 The effect of remuneration on job satisfaction:
One of the most important aspects to consider when determining overall job
satisfaction is remuneration (Oshagbemi et al., 2013). The congruency between an
employee's expectations and actual remuneration is termed as remuneration satisfaction.
Employees evaluate their pay using the equity principle, which is defined as "a comparison
between what people believe they deserve to be paid and what other people ought to be paid"
(Jackson et al., 2000). Internal and external equity are the two assessment factors used by
employees. The former enables an individual's salary to be evaluated in the context of their
contributions to the company (cf. Adams' Equity Theory). The latter enables for comparison
of an individual's salary to that of other members of the organisation and to that of similar
jobs in other organisations. As a result of these comparisons, an individual may feel
underpaid, which can lead to a decline in compensation satisfaction, as well as lower work
efficiency, dedication to work, and even an increase in fluctuation.
Different levels of pleasure from remuneration are categorised into two categories by
Faulk et al. (2002): scope of reference (directing employees' actions either on the entire
organisation or on their individual task) and sources of consequences (employees' rational or
emotional grounds for functioning). Employees show the following attitudes and types of
behaviour towards their organization: altruism, politeness, conscientiousness, initiative,
positive attitude to work. From among the attitudes and types of behaviour towards work, the
most prominent one is individual efficiency at work. The sources of consequences can be
either rational or emotional. In the latter case, the assessment of equity of remuneration, i.e.
feelings towards remuneration, its components and means of assigning it, plays a significant
role. The results of a study by Faulk et al. (2002) on 526 employees of a public sector
company corroborate this relation. The effect of satisfaction from remuneration is limited to
the attitudes and behaviours connected to an individual’s work, and is not significantly
connected to efficiency at work, it may even lead to reinforcing standards of behaviors aimed
at maintaining the status quo.
Also, according to Gaertner, there is no link between compensation and job
happiness. However, research suggests that emotions of equity have an impact on job
happiness. Furthermore, comparative studies reveal that the importance of salary for overall
job satisfaction varies among employees from work groups defined by demographic variables
or place of origin (Lowe et al (2002). The cultural and economic disparities between
countries are largely responsible for the various amounts of importance put on remuneration.
Maslow's Theory of Motivation can be used to describe how the economic climate affects
employee demands. In countries with poorer living conditions, more basic demands, such as
remuneration, are a more powerful motivation (Huang et al., 2003). Wages have little effect
on job happiness, according to studies done among Dutch employees. Furthermore, findings
from a poll of employees in five Western countries and Hungary suggest that intrinsic
benefits, such as doing fascinating work and having work autonomy, are highly valued by
employees (Westover et al., 2010). In contrast, a study of Hong Kong employees (Chiang et
al., 2006) found that financial incentives were the most important element. In addition,
(Rafikul and Ahmad 2008) discovered that «high wages» were the most important factor for
Malaysian employees across all groups. Because sex and age are the two most fundamental
demographic groupings a person belongs to, sex is one of the key individual characteristics
taken into account by researchers assessing the effect of various circumstances on employee
happiness. Men and women have distinct preferences in terms of satisfaction criteria,
according to the findings of the study.
According to previous research, social aspects have a significant impact on women's
job happiness, but for males, autonomy at work, the ability to self-realize tasks, and income
are among the most important elements (Okpara et al., 2006). According to Kamdron et al.,
(2005) research, female senior officials place a high value on recognition and strong
relationships, whereas men place a higher value on duty. A research among Chinese
employees revealed that for women good pay is not as important a factor as for their male
counterparts (Fang et al., 2011).
2.7 Remuneration significantly affects employee performance
Furthermore, before analysing the impact of salary on job satisfaction, the sense of
job satisfaction was first described. Employee perceptions of how successfully a person's job
in giving something that is considered vital through his or her employment, according to
Luthans (2011). Meanwhile, job satisfaction, according to Greenberg and Baron (2003), is a
person's favourable or negative attitude about their job. Job satisfaction, according to Vecchio
(1995), is "the thinking, feelings, and actions of a person's tendency for his or her attitude
toward work." This study uses the indicators: the work itself, compensation, advancement
opportunities, supervision, co-workers, and work situation to quantify employee happiness,
based on Luthans (2011) and Robbins (2006). In terms of the impact of remuneration on job
satisfaction, Luthans (2011) claims that employee happiness and discontent might affect job
performance and achievement. Meanwhile, Lindgren and Sanna (2008), Vosloo et al., (2014),
and Naji (2014) have all suggested that salary has a major impact on employee happiness. To
put it another way, the higher the salary paid to employees, the higher their job happiness.

2.8 Remuneration significantly affects employee satisfaction:

Individual contributions that go beyond the position responsibilities in the workplace
are referred to as organisational citizenship behaviour (OCB). Some aspects of OCB include
helping others, volunteering for extra responsibilities, and adhering to workplace norms and
procedures. These characteristics define the "value-added employee," which is a type of pro-
social conduct that is constructive and purposeful. Extra role behaviour is another term for
OCB. OCB is defined by Organ (1997) as voluntary behaviour, choice, and individual
initiatives that are not directly tied to the organization's formal incentive structure but, taken
together, can increase the organization's effectiveness. This means that the action was not
specified in employee job descriptions; therefore they would not be punished if they did not
carry it out. Furthermore, according to Luthans (2011), OCB has a positive relationship with
individual, group, and organisational performance. As a result, OCB plays a critical part in an
organization's success. Furthermore, Organ (1997) claims that an employee who performed
OCB expects to be rewarded for executing his or her work. This suggests that monetary
incentives motivate people to undertake OCB and are a significant factor influencing
satisfaction, employee performance, and the attainment of corporate goals. White-collar
workers, blue-collar workers, and professional women's company owners in the United States
who actively participate in OCB are rewarded more than those who do not carry out OCB

2.9 Training and development on job satisfaction:

According to (Chaudhry and Bhaskar, 2016), companies that provide training and
development to their employees have higher employee satisfaction and lower turnover.
Employee training and development strategies are extremely beneficial to employees. The
majority of employees see the value of training programmes and desire to increase their
salary. Staff development is still a big part of the work. (Schmidt, 2007) discovered that there
is a strong link between employers' consoles and the overall job satisfaction of customer
contact people. Training time, training techniques, and content are all important aspects of
employment training that must be addressed in order to achieve job satisfaction. In order to
attain organisational success, (Shelton, 2001) investigated the impact of staff development
programmes on work achievement and employee appreciation. It can also assist employees in
making the best decision possible on whether or not to stay with the company. It went on to
say that if an organization's culture does not promote employee growth, training's influence
would be diminished. Employee training effects, work satisfaction, motivation, and sense of
commitment were researched in five Greek organisations by Shahinides et al. (2007), who
discovered a substantial association between employee training effects, commitment, job
satisfaction, and motivation.
Previously, McDonald‘s suggests that a lower level of training increases the highest
turnover and that the provision of better training has a significant result on staff retention
(Eaglen et al., 2000). (Truitt, 2011) discussed that cheng and Ho (2001) stated in their
research, training is an essential function for work satisfaction. Although worker job
performance is the main factor maintained by senior executives, workers are also anxious
about their performance and stay more aware of the rapid aging of experience and job skills.
The work environment is unstable. As research shows, through effective instruction and
development of workers, they will be further coordinated with further development.
Professional potential can develop their stimulus. To clarify Cheng and Ho's (2001)
perspective, (Ekaterini Galanou, 2009) claims that: Learning and development are critical
components of successful divergence control. It's easy to see how a firm's failure to provide
learning and training could lead to a conflict between the corporation and its employees.
Training is defined as a function that includes all activities and learning experiences
with the goal of influencing and improving performance and other behaviours through skills,
attitudes, new information, and beliefs (Quresh, 2010). As a result, training simulates actions
that are intended to affect employees' capability and motivation. Employee training has a
beneficial impact on job satisfaction, according to the researchers, because it increases
productivity by allowing employers and employees to contribute their performance and share
the benefits of training. Management development, education, conventional training, and
vocational training are all included in training (Batool and Batool, 2012). Training is defined
as a learning method offers to individual with a clear explanation and understanding of the
performance standard and value of the organization. The significance of employee training is
to identify and distinguish the skill gaps of the organization. The gap will be the skills and
capabilities that current individuals have within an organization and the skills and capabilities
that an organization would like to have or required (Farooq & Khan, 2011).
Employee training will assist a company's management in putting its requirements
and needs in order, as well as increasing the company's market value. Training adds value to
the employees who will be trained while also adding value to the organisation. The goal of
the training is to develop a capability that connects to a group or an individual inside an
organisation in order to generate effective results. Employees' experience, capabilities,
knowledge, and skills are considered to be a vital component of a company's success. As a
result, it is critical to regularly educate people and help them expand their abilities and
knowledge. The purpose of training is to improve performance standards and efficiency by
altering individual behaviour within an organisation. The training process includes
development, analysis, design, and implementation. (Jehanzeb & Bashir, 2013).
 Recruiting and retaining top talent in today's competitive corporate labour market is a
key challenge for businesses. Every business's first foe is a disgruntled employee. A
productive employee is one who is happy. a crucial member of the group The purpose of this
study is to determine the present situation of employees' job satisfaction. The purpose of the
study is to see how big of a difference there is in terms of job satisfaction, as well as the
impact of specific demographic features on how pleased people are with their occupations.
This study was conducted on metal. The information was gathered from 163 fabrication
companies in and around Bangalore. Six separate manufacturing companies' employees. Data
was gathered through the use of well-defined survey instruments. According to the findings
of the study, the majority of workers do not accept this. Age and experience, according to
study, have a substantial impact on production. Employee job satisfaction is influenced.
Organizational actions and activities are described as development, and managers
have partial influence over these actions and activities (Shen, 2005). Development is an
important role in human resource management since it allows individuals to improve their
performance standards while also clarifying the future orientations of companies (Hameed,
2011). Employee development is concerned with all actions that have the potential for
growth, learning, and participation in order to achieve both individual and organisational
goals. Individuals' interests, capabilities, comprehension, personalities, skills, and aptitudes
all play a role in the learning process. Individually developed abilities and skills are typically
planned for future use (Pearson and Brew, 2002). When a manager encourages and guides
employee development, the organisation benefits greatly. Job rotation, promotion, education,
job enlargement, job experiences, skills, and interpersonal relationships can all be used to
help an organization's development process. Organizational participation in development
activities varies depending on the strategy, context, and other aspects of the company (Udaya,
et al., 2011).
2.10 The Training Needs in an Organization:
According to (Hassan & Baker, 2018), the primary rationale for including workplace
training is to provide employees with the skills they need to grow the organization's business
in a favourable way. Trained workers can help you get good results and help in a short
amount of time. In this case, a well-trained employee will provide a positive customer service
experience and attract more consumers over time. As a result, we can see how training can
help some firms achieve their goals and objectives, as well as make them more professional
in terms of productivity, management, and services.
2.11 Training and Development and Employee Performance:
(Maimuna & Dr.Rashad, 2013) discussed that Training is of great value for improving
the productivity of the organization. It doesn't just enhance the employees they enjoy the
resource, but it also provides them with an opportunity to learn their work and effectively
improve their abilities. (Rohan & Madhumita, 2012) also supports the decision to invest in
employee training, Teamwork, problem-solving and interpersonal relationships have a
beneficial effect on the level of growth of the organization, because and the effect on worker
performance. Training is a way to improve employee engagement and boost employee
potential. Training is an essential tool that affects the achievement of organizational goals.
But the best goal of all the organisations is achieving high income and maximum profit, and
this is an important tool for achieving this goal Therefore, only by providing appropriate
training and development can a workforce be effective and efficient this leads to increased
productivity.
 CHAPTER 3
3. Theoretical Framework
The research design of this study is explanatory as it tries to explain the impact of job
satisfaction on employee’s job performance. This study explains the casual relationship
between job satisfaction and employee job performance. The style of the research is theory
testing rather than theory building because this study tests the impact of job satisfaction on
employee job performance, using deductive reasoning to set propositions, collect and
analyse data and implications for propositions. The in depth research on effects Work
environment, Remuneration, Promotion, Training and development on employee
performance. The proposed study had certain limitations. For instance, keeping in view the
academic nature of the planned research and due to the budget constraints the study was
restricted to the Pakistani banking sector alone. Because of this, the outcome of the current
research could not be generalised to global companies. Moreover, as the study was
positivist in nature, the data was collected through structured and close-ended survey
questionnaires, where researcher bias could have occurred. In view of time constraints, the
proposed research was a cross sectional study and thus, the cross sectional data could have
hampered the ability of the respondents to make causal relations. As innovation is a
dynamic process, the use of longitudinal data which is otherwise out of the scope of this
study, may help in establishing a significant relationship between job satisfaction and
employee performance.

3.1: Conceptual framework:

In this research, the perceptions of performance were tested. Effects of Work
environment, Remuneration, Promotion, Training and development and employee
performance were tested. It was also explored that whether, Work environment,
Remuneration, Promotion, Training and development have a positive effect on employee
performance. All of these are shown in the conceptual model.

Independent Variables Dependent Variables

Work environment

Remuneration
Employee
performance
 
Promotion

Training and
development

3.2: Hypothesis:

H1: Work environment is positively associated with the Employee Performance in business.

H2: Remuneration is positively associated with the Employee Performance.

H2: Promotion is positively associated with the Employee Performance.

H4: Training and development is positively associated with Employee Performance.

3.3: Variables of the study:

 Job satisfaction is an independent variable and employee job performance is a
dependent variable. Five factors that affect the independent variable are defined as Work
environment, Remuneration, Promotion, Training and development. Job performance is
defined as a dependent variable.