1. Review of Literature
BrikendAziri Management Research and Practice 12/2011;
Employee Satisfaction is one of the most complex areas facing by today managers when it comes
to managing their employees. Many studies have shown an unusually large impact on the job
satisfaction and the motivation of workers, while the level of motivation has an impact on
productivity, and hence also on performance of business organizations. Unfortunately our region,
job satisfaction has not still received the proper attention from anyone,2 neither scholars nor
managers of various business organizations.
Allen and Meyer, 1996; Karrasch, 2003;
Organization commitment can be defined as affiliation of employees to the organization and
involvement in it. In general there are three dimensions of commitment which are continuance
commitment, affective commitment and normative commitment.
Goyal (1995) Determined the extent of employee satisfaction experienced by textile workers
due to primarily the statutory labour welfare facilities provided in the private, public and co-
operative textile sectors in Punjab, the awareness and implementation of these labour welfare
facilities and their correlation with job satisfaction, including the relationship between labour
welfare and job satisfaction.
Srivastava (2004) The Impact of Labour Welfare on Employees Attitudes and Job Satisfaction, a
comparative study was conducted on workers in the private and public sectors of Kanpur city.
The researcher attempted to assess the quality oflabour welfare activities;measure the degree of
job satisfaction of workers provided with labour welfare facilities in private and public sectors
and evaluates the attitudes of workerstowardsmanagement in both the sectors.
AlamSageer, Dr. SameenaRafat, Ms. Puja Agarwal ISSN: 2278-487X. Volume 5, Issue 1 (Sep-
Oct. 2012), Employee satisfaction is the terminology used to describe whether employees are
happy, contended and fulfilling their desires and needs at work. Many measures support that
employee satisfaction is a factor in employee motivation, employee goal achievement and
positive employee morale in the work place. Basically employee satisfaction is a measure of how
happy workers are with their job and working environment. In this paper various variables
responsible for employee satisfaction has been discussed such as Organization development
factors, Job security factors, Work task factors, Policies of compensation and benefit factor and
opportunities which give satisfaction to employees such as Promotion and career development
also has been described .This paper also deals the various ways by which one can improve
employee satisfaction.
2. HalilZaimSelimZaim Fatih University, TURKEY
Employee satisfaction is considered to be a critical success factor for organizations. The concept
of employee satisfaction has gained a special concern from both academicians and practitioners.
This study aims to provide a framework for employee satisfaction and determine the critical
factors of employee satisfaction and to measure their effect on overall evaluation of employee
satisfaction in small and medium sized enterprises (SME) based on the data collected from
Turkey. Data analysis revealed that there is a positive relationship between the each factor of
employee satisfaction which are named satisfaction from pay and benefits (P&B), satisfaction
from peers (P), satisfaction from management (M), satisfaction from working environment
(WE), satisfaction from superior (S) and overall employee loyalty in SMEs.
Furthermore, relevant recommendations and measures for improving the employee satisfaction
are proposed.
Judge, Timothy A.; Thoresen, Carl J.; Bono, Joyce E.; Patton, Gregory K.Psychological Bulletin,
Vol 127(3), May 2001,
A qualitative and quantitative review of the relationship between job satisfaction and job
performance is provided. The qualitative review is organized around 7 models that characterize
past research on the relationship between job satisfaction and job performance. Although some
models have received more support than have others, research has not provided conclusive
confirmation or discontinuation of any model, partly because of a lack of assimilation and
integration in the literature.
According to Nancy C. Morse (1997) “Satisfaction refers to the level of fulfilment of one s ‟
needs, wants and desire. Satisfaction depends basically upon what an individual wants from the
world, and what he gets.” Employee satisfaction is a measure of how happy workers are with
their job and working environment. It is sure that there may be many factors affecting the
organizational effectiveness and one of them is the employee satisfaction. Effective
organizations should have a culture that encourages the employee satisfaction, Bhatti & Qureshi,
(2007)
According to Hunter & Tietyen, (1997), Employees are more loyal and productive when they
are satisfied and these satisfied employees affect the customer satisfaction and organizational
productivity, Potter field, (1999).There is no limit for the employees to reach the full satisfaction
and it may vary from employee to employee. Sometimes they need to change their behaviours in
order to execute their duties more effectively to gain greater job satisfaction, Miller, (2006).
Having good relationships with the colleagues, high salary, good working conditions, training
and education opportunities, career developments or any other benefits may be related with the
increasing of employee satisfaction
3. Cranny, Smith & stone (1992) Employee satisfaction is the terminology used to describe whether
employees are happy, contended and fulfilling their desires and needs at work. Many measures
support that employee satisfaction is a factor in employee motivation, employee goal
achievement and positive employee morale in the work place. Susan M.Heath field (About.Com
defined ES as the ‟ combination of affective reactions to the differential perceptions of what
he/she wants to receive compared with he/she actually receives.
According to Moyes, Shao & Newsome (2008) the employee satisfaction may be described as
how pleased an employee is with his or her position of employment. As Spector (1997) defined
job satisfaction as all the feelings that a given individual has about his/her job and its various
aspects. Employee satisfaction is a comprehensive term that comprises job satisfaction of
employees and their satisfaction overall with companies policies, company environment etc. ‟
The history of job satisfaction stems back to the perspective on job satisfaction. This perspective
states that satisfaction is determined by certain characteristics of the job and characteristics of the
job environment itself. This view has been present in the literature since the first studies by
Hauser, Taylor and the various projects at the Western Electric plants in Hawthorne
(Cranny, Smith & Stone 1992). These studies follow the assumption that when a certain set of
job conditions are present a certain level of job satisfaction will follow. The Hawthorne Studies
are considered to be the most important investigation of the human dimensions of industrial
relations in the early 20th century. They were done at the Bell Telephone Western Electric
manufacturing plant in Chicago beginning in 1924 through the early years of the Depression.
The Hawthorne plant created an Industrial Research Division in the early work on morale
and designed to identify salient aspects of behavior has the consequence of changing the
behavior it is designed to identify. The initial Hawthorne effect referred to the observation that
the productivity of the workers increased over time with every variation in the work conditions
introduced by the hen people realize that their behavior is being watched they change how they
act. The development of the Hawthorne studies also denotes the beginning of applied
psychology, as we know it today. These early studies mark the birth of research on job
satisfaction relating to ergonomics, design and productivity.
(Hackman & Oldham, 1975).
Supervision, the second facet, is measured in such ways assignments.Coworkers, the third
facet, are measured in terms of social support, networking, and possible benefits attached to
those relationships (Cranny, Smith & Stone, 1992). Pay, the fourth facet, is an important source
of satisfaction because it provides a potential source of self-esteem as well as the generic
opportunity for anything money can buy (Brockner, 1988). Obviously satisfaction with pay is
measured primarily by current income but also by opportunities for salary increases. Promotion
is the final facet and the one that the JDI explicitly assesses how perceptions about the future can
4. affect job satisfaction. Today the facets of the JDI are generally assessed by modifying
measured from one (strongly disagree) to five (strongly agree)
(Cranny, Smith & Stone, 1992).
Another popular and highly researched measure of job satisfaction is the Minnesota Satisfaction
Questionnaire (MSQ). The MSQ can be scored for twenty facets; scores from one question for
each facet provide a single overall composite score. The MSQ is commonly used in
designed for use with adult career counseling clients with work experience. They are particularly
experience in one or more chosen occupations who are dissatisfied with their work and remain
undecided about their caree
Jens J. Dahlgaard(2003)
A study conducted in Europe, Asia, Africa, and the Americas reported similarities among
United States. Researchers consistently identified the same top five key attributes in a job: ability
to balance work and personal life, work that is truly enjoyable, security for the future, good pay
or salary and enjoyable co-workers. Across the four major geographic regions studied, workers
specifically emphasized the importance of potential advancement and the opportunity to build
A survey polling members of the Association for Investment Management and Research found
that 81% of the managers said they were satisfied or very satisfied with their job. When asked to
identify the factors that create positive feelings about their job, most managers named
professional achievement, personal or professional growth, the work itself and their degree of
responsibility more important than compensation. Factors they viewed as creating negative
feelings about their jobs were company policies, administration, relationships with supervisors,
compensation and the negative impact of work on their personal lives (Cardona, 1996,). In order
to decrease some of these negative feelings and increase productivity it has been proposed to
reduce the number of work days employees miss by increasing job satisfaction, redesigning
disability plans and involving supervisors in management (Maurice, 1998,).
Smith, Kendall, and Hu (1999)
research indicates that customer satisfaction and loyalty are excellent predictors of general
satisfaction studies comparing differences between age groups and level of job satisfaction report
an increases managerial or organizational effectiveness standpoint, job satisfaction is important
due to its impact on absenteeism (1) turnover, (2) and pro- coworkers, helping customers, and
being more cooperative. (3) Thus, to redesign jobs, reward systems, and human resource
management policies that will result in optimum job satisfaction and order to know what
employees value it is necessary for organizations to assess and pay attention to current levels of
job satisfaction. Current studies on job satisfaction are plentiful with some interesting results. In
one study the relationship among career experience, life satisfaction, and organizational factors
5. for managers of healthcare organizations is explored. Within this study a two-stage Delphi
analysis of American College of Healthcare Executives (ACHE) members identified nine
domains of important job skills, knowledge, and abilities necessary for Success as healthcare
managers. The nine domains, ranked in order of importance, are cost/finance, leadership,
professional staff interactions, healthcare delivery concepts, accessibility, ethics, quality/risk
management, technology, and marketing.
Jacob K. Eskildsen (2002)
Employees are recognized as the most crucial asset of today's organizations by both academics
and practitioners. The importance of employees is also reflected in the EFQM Excellence Model,
since two of the criteria deal with employee - related issues (i.e. 'people' and 'people results').
The EFQM Excellence Model is by far the most widely used model for self - assessment in
Europe, but there is no knowledge about the relationships between the enabler criteria and the
most crucial of the results criteria: 'people results'. In this paper a frame of reference for
employee satisfaction is constructed by comparing the EFQM Excellence Model and Hackman
and Oldham's Work Design Model. This comparison has revealed a number of causal
relationships between the enabler criteria and 'people results'. These causal relationships have
been tested empirically through the Structural Equation Model and the results indicate that the
enablers from the EFQM Excellence Model have a positive effect on the criterion 'people
results'.
Christina G.(1998)
Furthermore, this study examines the mediating role of customer satisfaction on the indirect
relationship between employee satisfaction and financial performance. Data for this study was
collected from employees, customers and managers of three- and four-star hotels. Structural
equation modeling (SEM) with a two-step approach was utilized to empirically test the proposed
hypotheses and the relationships between the constructs. Findings suggest that while customer
satisfaction has positive significant impact on financial performance, employee satisfaction has
no direct significant impact on financial performance. Instead, there is an indirect relationship
between employee satisfaction and financial performance, which is mediated by customer
satisfaction.
AlexEdmans(2001)
This paper analyzes the relationship between employee satisfaction and long-run stock returns. A
value-weighted portfolio of the “100 Best Companies to Work For in America” earned an annual
four-factor alpha of 3.5% from 1984 to 2009, and 2.1% above industry benchmarks. The results
are robust to controls for firm characteristics, different weighting methodologies, and the
removal of outliers. The Best Companies also exhibited significantly more positive earnings
surprises and announcement returns. These findings have three main implications. First,
6. consistent with human capital-centered theories of the firm, employee satisfaction is positively
correlated with shareholder returns and need not represent managerial slack. Second, the stock
market does not fully value intangibles, even when independently verified by a highly public
survey on large firms. Third, certain socially responsible investing (SRI) screens may improve
investment returns.
EfthymiaSymitsi(2005)
We examine the effect of employee satisfaction on corporate performance using employees’
online reviews. Our results indicate that although employee satisfaction positively impacts
corporate performance, this is not fully reflected in equity prices .Study the effect of employee
satisfaction on corporate performance. As measure of employee satisfaction, we use employees
online reviews. Employee satisfaction positively impacts corporate performance. This intangible
is not fully priced in the stock market.
Statement Of The Problems
There is only two shift in a Day one start in the morning 5am and second one start in evening
6pm. All the employess has to work on stop for the continuous 12 hr a day without any rest in
between, they have lot of pressure form the management to work in a excellent manner. So they
have to take care of all the things as well.
They don’t have enough salary accourding to the work, they work for atleast 12 hr non-stop and
their salary lies betwwen 10k to 15k only. Some time they have to work in both the shift also
which means more than 12 hr a day without any extra pay.
The one of the major problem is that they don’t have proper lunch and dinner. For all the staff
working over their, there is a separate and different quality of food which is been served to them
the quality of food is not really very good. There is no variety for them only SOUTH INDIAN
food is been served to them. This is really a problem for the North Indian worker who is working
over their.
