Article 2012
Article 2012
Article 2012
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Samina Qasim *
Institute of Cost and Management Accountants of Pakistan.
Farooq-E-Azam Cheema *
Institute of Business & Technology (IBT), Karachi.
Nadeem A. Syed *
FAST School of Management, National University, Karachi Campus.
ABSTRACT
Purpose- The objective of this project paper is to find out which factor is
contributing to the highest level of job satisfaction and identify the most satisfying
and least satisfying factor selected in the study. The company's employees are
highly satisfied which is a matter of curiosity. It has motivated the researcher
to find out the factors that is contributing towards the highest level of job
satisfaction.
Methodology/sampling- The research report has followed a descriptive
analytical approach; a stratified random sampling of 40 out of 100 employees
was used for analysis. Using descriptive and causal techniques- based survey;
the data were collected through a close- ended questionnaire coupled with Likert
scale. Data has been analysed by applying Regression, ANOVA and Correlation
tests.
Findings- The result indicated that among four factors work environment has
the highest magnitude that is contributing towards the highest level of job
satisfaction of a multinational company's employees of Pakistan. The study
concluded that in order to gain competitive advantage and adapt to the dramatic
changing environment it is important for them to achieve management efficiency
by increasing employee satisfaction in the organization.
Practical Implications- Since the company is working effectively and efficiently
and has succeeded in satisfying its employees at its par excellence therefore
it will provide a benchmark to other Pakistani organization.
* SaminaQasim : [email protected]
* Farooq-E-Azam : [email protected]
* Nadeem A. Syed : [email protected]
1.INTRODUCTION
In developing countries, large segments of the population are deprived of getting a good
job to satisfy their needs. In the context of Pakistan, it is very much competitive to get a
job in multinational. That is reason, those who are being employed in multinational
organizations; perceive them as eligible, fortunate and privileged. But again being employed
through this competitive process does not mean that employees are satisfied from all
aspects. Accordingly, objective of this project paper is to find out which factor is contributing
to the highest and lowest level of job satisfaction in the work place.
2. LITERATURE REVIEW
The job satisfaction of an employee is a topic that has received significant attention by
managers and researchers alike (Gautam; Mandal and Dalal, 2006). Job satisfaction deals
with the feelings that an individual has about his/her job. Organizational behavior research
has revealed that individuals who express high satisfaction in their jobs are likely to be
more productive, have higher involvement and are less likely to resign than employees
with less satisfaction. In 1959, Herzberg, Mauser and Snyderman found that job satisfaction
is elusive even chimerical concept that has been immensely confronted since. In any field
of business job satisfaction has been a matter of concern and attention nowadays. Job
satisfaction is the backbone for an organization's success; the key to successful organization
is the secret of satisfied workers.
Job satisfaction is basically described as the feelings that an employee has about
his/her job. Job satisfaction is an interesting topic to both people who work in organizations
and people who study them. Job satisfaction can be formally defined "as the degree to
which individuals feel positively and/or negatively about their jobs" (Steyn &Van Wyk
1999). Employees experience a feeling of accomplishment if their desired expectations
are met, that will ultimately determine the degree of satisfaction. In other words, job
satisfaction befalls when a job meets the, values, expectations and standards of an individual
and will stimulate their commitment and performance (Gordon 1999). Higher will the
level of job satisfaction if the degree of the expectations being met is greater. The report
reveals that from the worker's perspective, the level of job satisfaction increases when he
finds his work more interesting and different (Dinler, 2008; Wright & Davis, 2003).
(Arnold and Feldman 1996). "I love my work but hate my boss" or "This place pays lousy,
but the people I work with are great" - are the examples that represent different attitudes
towards separate facets of workers' jobs. Smith (1996) however, very correctly says that
whatever is the degree of satisfaction with the individual facets of a job, ultimately they
accumulate in the form of overall job satisfaction.
H1: Work environment has high degree of impact on job satisfaction of the employees.
2.2.2 Remuneration
There is no doubt that monetary rewards play a very influential role in determining job
satisfaction. Pay is one of the fundamental components of job satisfaction since it has a
powerful effect in determining job satisfaction. Individual has infinite needs and money
provides the means to satisfy these needs, (Arnold and Feldman 1996). However, there
is no such empirical evidence that asserts that pay alone improves worker satisfaction or
reduces dissatisfaction (Bassett 1994). The author is of the opinion that handsome salary
cannot be the only factor of job satisfaction even highly paid employees may still be
dissatisfied if they do not like the nature of their job. Moreover, a study conducted by
Young, Worchel and Woehr (1998) in the public sector organizations revealed the failure
of any significant relationship between job satisfaction and pay.
However, Boggie (2005) says that poor pay and absence of recognition often
leads to a problem with employee retention. Chung (1977) says that dissatisfaction and
discontent can be the reason if salaries are not market related. Nel, Van Dyk, Haasbroek,
Schultz, Sono, and Werner (2004) also say that employees will compare themselves with
their colleagues in terms of salary and their inputs to their job and may leave an organization
if they are not satisfied and contented. Hence, we suppose;
H2: Remuneration has low degree of impact on job satisfaction of the employees.
2.2.3 Promotion
There is a consensus among the researchers that job satisfaction is strongly associated to
opportunities for promotion (Pergamit & Veum, 1999; Peterson et al., 2003; Sclafane,
1999). The positive relationship between job satisfaction and promotion is dependent on
perceived equity by employees (Kreitner & Kinicki, 2001). As compared to recognition
and achievement the degree of promotion has a stronger impact on job satisfaction. Locke
(1976) advocates that the aspiration to be promoted emanates from the desire for social
status psychological growth, the desire for justice .Therefore management should
commemorate that promotion furnishes a positive motivating tool in ensuring that the
employee attains goals at a higher level. So we hypothesize,
H3: Job promotion has low degree of impact on job satisfaction of the employees.
H4: Fairness has low degree of impact on job satisfaction of the employees.
3.RESEARCH METHODOLOGY
The study is based on linear equation model wherein the variables are as follows:
This study is survey based. The sample comprised 40 people in the organization;
15manager and 25 non-managerial employees. The age and gender factors have been held
constant because no significant differences were observed to exist in this regard. Respondents
were presented a close-ended questionnaire containing 4 factors job satisfaction scale
coupled with Likert Scale in person whereas discussions were also held in the cases which
required some
4.RESULTS
4.1 Regression
In the Table 1 below regression analysis, the value "R" is 0.548 which indicate that there
is positive correlation (linear relationship) between Job satisfaction and Working environment,
Remuneration, Job promotion, and Fairness.
Table 1
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .548a .300 .220 .66239
a. Predictors: (Constant), Working environment, Remuneration, Job Promotion, Fairness.
Table 2
ANOVA b
Model Sum of Squares df Mean Square F Sig.
1 Regression 6.587 4 1.647 3.753 .012a
Residual 15.356 35 .439
Total 21.944 39
a. Predictors: (Constant), Working environment, Remuneration, Job Promotion, Fairness.
b. Dependent Variable: Job satisfaction
Table 3
Coefficients a
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) -1.367 1.538 -.889 .380
Working Environment 1.130 .334 .496 3.385 .002
Remuneration -.070 .230 -.062 -.303 .764
Job Promotion .239 .220 .229 1.090 .283
Fairness -.055 .239 -.051 -.228 .821
4.3.2 Remuneration
Equation for this relationship is: Remuneration = 1.367-0.303R, where R denotes
remuneration. Outcome shows remuneration value is insignificant p < 0.05, p = 0.764 and
t = -0.303 which shows that Remuneration had negative impact on the job satisfaction.
The value of beta shows 1unit changes in Remuneration will bring -0.303 unit changes
in profitability. Hence, H2 is accepted.
4.3.4 Fairness
Equation for this relationship is: Fairness = 1.367 -0.228F, where F= Fairness. According
to the results, the factor of fairness, it is insignificant p < 0.05, p =0.821 and t = -0.228
which shows that Fairness has insignificant impact on the job satisfaction. The value
of beta shows 1 unit changes in job promotion will bring -0.228 unit changes in profitability.
Hence, H4 stood accepted.
Table 4
Correlations Matrix
AvgJS AvgWE AvgR AvgJP AvgF
AvgJS Pearson Correlation 1 .522** .146 .263 .195
Sig. (2-tailed) .001 .369 .101 .229
40 N 40 40 40 40
AvgWE Pearson Correlation .522** 1 .191 .221 .255
Sig. (2-tailed) .001 .238 .170 .113
40 N 40 40 40 40
AvgR Pearson Correlation .146 .191 1 .646** .686**
Sig. (2-tailed) .369 .238 .000 .000
40 N 40 40 40 40
AvgJP Pearson Correlation .263 .221 .646** 1 .704**
Sig. (2-tailed) .101 .170 .000 .000
40 N 40 40 40 40
Age Pearson Correlation .195 .255 .686** .704** 1
Sig. (2-tailed) .229 .113 .000 .000
40 N 40 40 40 40
**. Correlation is significant at the 0.01 level (2-tailed).
5.CONCLUSION
The study concluded that in order to gain competitive advantage and adapt to the dramatic
changing environment it is important for the organizations to achieve management efficiency
by increasing employee satisfaction. Among four factors, work environment contributing
with highest magnitude towards the highest level of job satisfaction of a multinational
company's employees of Pakistan. Therefore it is concluded that in order to keep employees
satisfied today, it takes an entirely different approach than it did just a few years ago. Now
days the work environment is the most critical factor in keeping an employee satisfied in
today's business world. For a growing number of workers, corporate culture is the key
determinant in their choice to stay with an organization long term.
Since the company is working effectively and efficiently and has succeeded in
satisfying its employees at its par excellence therefore there is no such recommendation
for this company instead it will provide a benchmark to other Pakistani organization.
Moreover this company knows how to develop their culture in an effective way and the
quality of work life among the employees. Indeed, employees must absorb the organizational
culture at the maximum strength and the top management should continue to provide a
beacon to motivate the employees in achieving the company's objectives.
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