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org
ISSN 2224-5766 (Paper) ISSN 2225-0484 (Online)
Vol.13, No.3 2023

Impact of Organizational Behavior on Job Satisfaction with Its

Effect on Organizational Performance
Mrs. Syeda Sarah Alif
Department of Business Administration, Port City International University, Bangladesh

Abstract:
Job satisfaction is a subjective phenomenon in a business that aids in the achievement of positive organizational
performance and the maintenance of the overall working environment. Performance within an organization is
largely influenced by employee output, and employees' work performance output is mainly affected by
workplace job satisfaction. This study found that organizational behavioral factors have a direct effect on job
satisfaction in relation to organizational performance. The study is focused on determining the many critical
elements that have a significant impact on organizational performance and job satisfaction in a given firm. The
study's findings indicate that organizational behavior influences job satisfaction via having an impact on
organizational performance.
Keywords: Organization Behavior; Job Satisfaction; Motivational Factors; Superstore Retail Organization
DOI: 10.7176/RHSS/13-3-02
Publication date: February 28th 2023

1. INTRODUCTION
Job satisfaction is correlated with how well an employee's expectations for their job match their actual
experiences in the workplace. A worker's expectations of the job have been considered in certain research when
examining job satisfaction. Although there are many different ways to define job satisfaction, all of these
definitions agree that a satisfied worker enjoys their work, has a feeling of dedication to their work, and is
content with their work and/or aspects associated with their work. Improving leader attitudes will raise
employees' overall job satisfaction and serve as a foundation for employee engagement (Alan H. Rosenstein,
2015). Job satisfaction is the emotional reaction of a worker he has towards his/her job after a comparison of the
outputs he /she expects or desires with real outputs (Cranny et al., 1992). The employee’s attitude towards
her/his work shows job satisfaction if it reflects the positive mood, but job dissatisfaction is demonstrated if it
reflects the negative mood (Dinler, 2010). Efficient employees are considered as the most valuable asset for an
organization. Qualified, devoted & skilled employees of an organization are needed to achieve its goal (Nahar et
al., 2008). Employee’s devotion, loyalty, skill and the likes are influenced by the level of employee’s job
satisfaction. Cetin (2011) has defined job satisfaction as the extent to which the employees like what they do.
According to Vroom (1964), job satisfaction is a worker’s positive or negative emotional reaction to his/her role
at work or in work-related matters.The motivating elements (the nature of work, the achievement from their
work, the recognition, the responsibility that is granted to them, and opportunities for personal growth and
advancement) assist employees in determining their value in relation to the value placed on them by the
company (Baah and Amoako, 2011). Additionally, this may enhance employees' levels of motivation, which will
ultimately increase their internal contentment, which will lead to satisfaction.
Organizational behavior (OB) simply refers to the way people behave in organizations and the relationship
between human behaviors and organizational settings. The challenge for organizations today is to institute a new
organizational culture that reflects shared values, regardless of previous organizational affiliation, or geographic
location. While managing change, organizations will have to become more psychologically minded; that is, they
will have to understand the personalities of their subordinates better, particularly the unconscious factors in
motivation (Newstrom, 2008). Diagnosing organizational behavior is an ongoing cycle of recognizing areas of
concerns, explaining the short term and long-term implications of each behavior, and continuously developing
best practices and strategies that can help an organization transform into a robust, high-performing, and dynamic
entity (Kaifi, 2011). Organizational behavior is particularly interested in the distinctive behavior displayed by a
specific individual inside an organization, because human behavior is essential to performance and
organizational effectiveness. Organizational behavior emphasizes both social dynamics and the fundamentals of
systems thinking. Organizational behavior is the study of human behavior in groups and organizations. It can be
broadly split into two categories: the organization's perspective on individuals and the human perspective on the
organization (Sule & Priansa, 2018). The cornerstone of corporate human resources is the study of organizational
behavior, which encompasses fields of study devoted to enhancing job satisfaction, job performance, and
creativity.

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1.1. Objectives of the Study

i) To determine the various critical factors that have a significant impact on organizational performance and job
satisfaction.
ii) To appraise the significant relationship between organizational behavior and job satisfaction through the
mediating effect of organizational performance.

1.2. Hypotheses of the Study

To achieve the objective of the study, this hypothesis was formulated and tested at the 0.05 level of significance.
The following hypotheses have been developed in order to test the relationship between organizational behavior
and job satisfaction.
H0: There is no significant relationship between organizational behavior and job satisfaction with its effect on
organizational performance.
H1: There is a significant relationship between organizational behavior and job satisfaction with its effect on
organizational performance.

2. LITERATURE REVIEW
2.1. Organizational Behavior
Organizational behavior is the academic study of how individuals behave in groups, and its concepts are mostly
used in efforts to improve corporate operations effectively and efficiently. Organizational behavior includes the
layout of the workplace as well as the psychological, emotional, and interpersonal behavioral dynamics that
affect organizational effectiveness. Organizational behavior (OB) or organisational behaviour is the "study
of human behavior in organizational settings, the interface between human behavior and the organization, and
the organization itself (Moorhead & Griffin, 1995). Individual’s exhibit certain behaviors when they are in
groups or when they are assigned organizational roles, OB is the study of such behaviors and how they affect
organizations.
Organizational behavior has the aim of improving the attitudes of workers at their workplace, enhancing
organizational leadership, promoting job innovation, and satisfaction, among others. Organizational behavior
implies that effective leadership must be based on understanding rather than on techniques alone, on mature
relationships of mutual trust rather than on manipulation. Nelson and Quick (2003) organizational behavior is
primarily concerned with the psychological, interpersonal, and behavioral dynamics in organizations necessary
for performance festiveness. Organizational behavior seeks to understand why one person could respond
favorably to a scenario while another responds badly to the same circumstance. Good organizational behavior is
typically observed in the actions of workers who are familiar with one another, share goals, are connected,
communicate, can lead and be led, and have responsibilities and a division of labor as a way to contribute to the
organization. Such conduct will have an impact on the most powerful organizations and wheels.
Organizational behavior is a field of study to research and examine the consequences of organizational
actors and structures in organizations with a view to implementing science and knowledge to improve the
organization (Sule & Priansa, 2018). According to Kreitner and Kinicki (2004) there are three basic levels of
analysis in organizational behaviour, which are; individual, group and organizational levels. While the
individuals and groups bring their skills, knowledge, values, motives and attitudes into the organization, thereby
affecting the organization, the organization on the other hand, modifies or restructures the individuals and groups
through its own system of operations. Organizational behavior is not only bound towards the enhancement of the
effectiveness of organizations, it is the field that seeks enhanced knowledge of behavior in organizational
settings through the scientific study of individual, group, organizational processes politics and power, and the
goal of such knowledge being the enhancement of both organizational effectiveness and individual well-being
(Sidle, 2008; Strohmair, 2013; Swanson, 2015; Williams and Anderson, 1991). However, organizational
behavior has a great impact on employee job satisfaction at the workplace of a company.

2.2. Job Performance

Job performance evaluates how successfully a person does their job. Job performance refers to how an employee
carries out their duties in their position of employment and involves an evaluation of their attendance, attitudes,
effort, knowledge, behaviors, and abilities. To achieve organizational objectives (high levels of productivity) and
maintain the business' ability to gain competitive advantages, high-performing people are required (Sonnentag
and Frese, 2002). In general, high performers are given hiring preference over low performers since they are able
to perform better. Job performance is characterized as the sum of the projected benefits to the business from each
discrete behavioral episode that a person engages in over a predetermined time frame. Due to their high levels of
motivation and morale, employees who are highly satisfied with their jobs can exert extraordinary effort and
improve their performances.

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Organ (1977) has especially emphasized that the provision of job satisfaction to the employee is an act of
increasing the organizational effectiveness, i.e. performance, with the social change theory, while Lawler and
Porter (1967) have highlighted that job satisfaction is a result of performance with the expectancy theory.
Performance is the practices and behaviors that are useful in fulfilling the objectives established by the
organization and depend on the employee (Bashur et al., 2007: 190). Thus, we can say that the organizational
performance is the sum of the individual performances of the employees within the organization.
This is due to the fact that organizational success is typically based on organizational performance, which is
heavily reliant on the performance of each and every individual in the company (Pushpakumari, 2008). When
workers are satisfied in their work positions, they are more likely to be motivated, willing to put up more effort,
and dedicated to their job. Therefore, a company's success depends on how satisfied its employees are at their
jobs, especially when it comes to raising job performance.

2.3. Job Satisfaction

Job satisfaction is one of the topics most extensively studied in the fields of organizational behavior and human
resource management. Detailed descriptions of fair outcomes, treatment, and practices are necessary for job
satisfaction. Therefore, the characteristics that can affect job satisfaction include the nature of the job, a suitable
price or compensation, pleasant working conditions, coworker support, and personality compatibility with work
(Robbins, 2006). To achieve the organizational quantitative and qualitative goals and enhancing employee’s
performance effective intrinsic and extrinsic incentives must be given to employee’s (Broad, 2007). Job
satisfaction refers to the attitude a person has toward their work (Daft, 2003). Individual has satisfied in his/her
job place if they get what they were expected.
Job satisfaction as how far the employees are satisfied with their work (Furnhamet et al., 2009). Job
satisfaction is defined as the level of contentment employees feel with their job. This goes beyond their daily
duties to cover satisfaction with team members/managers, satisfaction with organizational policies, and the
impact of their job on employees’ personal lives. Job satisfaction has also been defined as more of an attitude, an
internal state that could be associated with a personal feeling of achievement, either quantitative or qualitative
(Mullins, 2005). Job satisfaction is a form of self-expression of the rewards related to work, which is received by
him (Fauzi & Warso, 2016). Each individual has their own character, therefore the level of job satisfaction will
vary. Job satisfaction, an unquantifiable metric, is defined as a positive emotional response you experience when
doing your job or when you are present at work. It’s important to remember that job satisfaction varies from
employee to employee. In the same workplace under the same conditions, the factors that help one employee feel
good about their job may not apply to another employee.
The high level of organizational performance is the indicator of the successful management in all
organizations, whether public or private. Good organizational performance basically depends on job satisfaction
that means if employees are satisfied in their work place then their performance will be high and its influence on
the organizational performance. The high level of organizational performance in the private sector is perceived
as an effective and efficient use of public resources, while it provides competitive advantage to organizations
against their competitors. Theoretically, job satisfaction has a relationship with work performance. An
organization with more satisfied employees tends to be more effective and productive. Besides, employees with
high levels of satisfaction will have a low number of turnovers (Chen, 2006). Employees are resources in an
organization, and therefore they need to be developed properly in order to achieve an organization’s goals and
expectations (Brewster, 2007). An organization must determine the elements that significantly affect an
employee's performance at work and must take the necessary corrective action. Employees play a critical role in
the survival of organizations. Therefore, the success of any organization mainly depends on the performance of
its employees and the major determinate of employee’s performance is job satisfaction.
According to Spector (1997) recognized a set of mediating factors that can influence job satisfaction. These
variables are categories into five distinct fragmentations (i) ) rewards (pay, promotion, recognition, (ii)
organizational context (policies, promotion opportunities, procedures, working conditions), (iii) self or individual
differences (internal motivation, moral values), (iv) satisfaction with work attributes (the nature of the work,
autonomy, responsibility), and (v) other people (supervisors, co-workers) (Spector, 1997). As stated above, this
study is concerned with the factors that produce job satisfaction and with the interconnectedness of those factors
to organizational performance.

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Salary and Provident Fund

Working Conditions

Allowance

Bonus Job Satisfaction Organizational

Performance

Training and Development

Insurance

Vacation Facilities

Achievement

Figure 1 | A Conceptual Framework

3. RESEARCH METHODS AND PROCEDURE

3.1. Nature of the Study
It is a descriptive study which is designed to find out how organizational behavior influences job satisfaction
with its effect on organizational performance of Shwapno retail organization. However, this study report
contributed to the confirmation of the significance of organizational behavioral aspects that influence present job
satisfaction levels and organizational work performance.

3.2. Population and Sample

For the purpose of gathering sample data, this study adopted a non-probability convenient sampling approach.
This research paper aims to measure the impact of organizational behavior on job satisfaction in a superstore in
Shwapno retail organization, Bangladesh. A total of 150 respondents were included in the survey's sample,
which was conducted from June 2022 to December 2022. Primary data has been gathered from a variety of
employee groups at several outlets in the Chittagong metropolitan area in Bangladesh.

3.3. Data Collection Technique

This study basically depends on primary data collected from a survey. For this reason a structured questionnaire
has been developed and distributed to the employees of Shwapno retail organization. Excepting the questions
relating to respondents demographic characteristics, the factors relating to job satisfaction like salary and
provident fund, working conditions, allowance, bonus, training and development, insurance benefits, vacation
facilities, and achievement and these investigated through 5-point Likert scale standardized by (Brayfield-Rothe,
1951). The measure consists of five responses available for each i.e. 5= strongly agree, 4= agree, 3= undecided,
2= disagree, 1= strongly disagree.

3.4. Reliability of Scale and Data Analysis Technique

SPSS software package version 21 has been deployed for statistical analysis. Cronbach Alpha (Cronbach, 1951)
was used to assess data reliability. Cronbach Alpha was 0.762. Alpha should be higher than 0.7, which is
suggested by Nunnally (1978), and therefore data collection can be considered reliable. The questionnaire is
divided into two sections: The first segmentation of the questionnaire is demographic data, which comprises age,
education, sex, and marital status. The second section included respondents' scale items aimed at analyzing the
organizational behavior factors that have a mediating influence on job satisfaction in superstore retail
organizations, as recommended by the literature. A demographic profile is understood through the use of
descriptive statistical methods like mean, frequency, and percentage. Multiple regression analysis was used to

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determine the significance relationship between organizational behavior and job satisfaction in order to provide
answers to research questions.

4. RESEARCH FINDINGS AND DISCUSSION

4.1. Demographic Information
Table 01 shows the respondents’ demographic items of the study. The researcher surveyed 150 sample questions
to distribute the respondents and among them 100 percent respondents show their name. From demographic
table researchers overlook that 100 percent of respondents were service holders and doing the job in Shwapno
superstore retail organization in Bangladesh.
Table 01: Demographics of the respondents Frequency Percent Cumulative Percent

Age Bellow 20 years 17 11.3 11.3

20-30 years 127 84.7 96.0
30-40 years 4 2.7 98.7
Above 40 years 2 1.3 100.0
Total 150 100.0
Education Bellow SSC 8 5.3 5.3
SSC 10 6.7 12.0
HSC 41 27.3 39.3
Bachelor 70 46.7 86.0
Master 20 13.3 99.3
Others 1 .7 100.0
Total 150 100.0
Sex Male 131 87.3 87.3
Female 19 12.7 100.0
Total 150 100.0
Marital Status Single 141 94.0 94.0
Married 9 6.0 100.0
Total 150 100.0
From above table 01 revealed that 11.3% respondents age below 20 years, 84.7% respondents age 20-30
years, 2.7% people age 30-40 years, and 1.2% participants age above 40 years old. Among the respondents
educational qualification table 01 overlooked that 5.3% were below SSC, 6.7% were SSC, 27.3% were HSC,
46.7% were bachelor, 13.3% were master degree, and 0.7% respondents were Ph.D and others, that means the
majority of respondents have been highly educated. From the above table 01 reveals that a total 131 respondents
were male (87.3% samples) and 19 respondents were female (12.7% samples) that means the majority of
respondents were male and all are currently working in Shwapno Super Shop. Among the respondents, marital
status table 01 disclosed that 94.0 % people were single and 6.0 percent respondents were married.

4.2. Regression Analysis

The regression analysis is performed to determine the impact of organizational behavior (achievement, bonus,
training and development, allowance, insurance, salary and provident fund, vacation facilities, and working
conditions) on job satisfaction. In Table 2, the model summary of the regression analysis shows R =.586 and R2
= .343, standard error of the estimate is 0.260, and the Durbin-Watson value is 1.606.
Table 02: Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate Durbin-Watson
1 .586a .343 .306 .260 1.606
a. Predictors: (Constant), Achievement, Bonus, Training and Development, Allowance, Insurance, Salary and
Provident fund, Vacation Facilities, Working Condition
b. Dependent Variable: Job Satisfaction
The coefficient of correlation (R) is 58.6%, showing that there is a positive linear relationship between
organizational behavioral factors and job satisfaction through the mediating effect of organizational performance.
If the independent variable increases then this will result in the dependent variable increasing accordingly. That
means a 1 percent shift in organizational behavior will cause a 58.60 percent shift in job satisfaction, which will
have an effect on organizational performance. Table 02 shows the regression analysis (R2) value of 0.343 which
reveals that organizational behavior independently accounts for 34.3% of the variation in job satisfaction.

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Table 03: ANOVA

Model Sum of Squares df Mean Square F Sig.
1 Regression 4.970 8 .621 9.198 .000a
Residual 9.523 141 .068
Total 14.492 149
a. Predictors: (Constant), Achievement, Bonus, Training and Development, Allowance, Insurance, Salary and
Provident fund, Vacation Facilities, Working Condition
b. Dependent Variable: Job Satisfaction
If the significance (P value) is less than alpha (α =.050), it suggests that the model is significant. Therefore,
in determining the adequacy of the model, table 03 discloses the analysis of variance (ANOVA) results with a
value F (8,141) = 9.198, p=.000 and significance at p < .050. The F-statistics of 9.198 reveals that the model is
statistically significant at 0.05 significant levels. And the value of t = 6.105 is also statistically significant;
however, it can be certainly deduced that the null hypothesis is rejected.
Table 04: Coefficients
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.351 .221 6.105 .000
Salary and Provident Fund .067 .033 .152 1.997 .048
Working Conditions .072 .038 .165 1.887 .061
Allowance .087 .041 .159 2.130 .035
Bonus .086 .044 .147 1.928 .046
Training and Development .067 .036 .158 1.872 .063
Insurance .054 .040 .107 1.339 .183
Vacation Facilities .082 .034 .193 2.383 .019
Achievement .029 .025 .083 1.144 .255
a. Dependent Variable: Job Satisfaction
According to the information gathered, the following regression equation may be created (table 01): Y=
β0+ β1 X1 + β2 X2 + β3 X3 + β4 X4 + β5 X5 + β6 X6 + β7 X7 + β8 X8 + e
Where, Y = Job Satisfaction (Dependent Variable);
Independent Variables [organizational behavior: (X1 = Salary and Provident Fund, X2 = Working Conditions, X3
= Allowance, X4 = Bonus, X5 = Training and Development, X6 = Insurance, X7 = Vacation Facilities, X8 =
Achievement)]; β0 (Constant) = 1.351; e (Error term) = .260
As X2, X5, X6, and X8 have an insignificant result that is at p > 0.05, therefore, the regression equation has been
reduced to the following:
Y= 1.351+ .067X1 + .087X3 + .086X4 + .082X7 + .260
The study of regression analysis revealed that components of organizational behavior like salary and
provident fund, allowance, bonus, vacation facilities, working conditions, training and development, insurance,
and achievement will significantly predict job satisfaction with its effect on organizational performance. In a
nutshell, the study’s result clarified the significant positive relationship between organizational behavior and job
satisfaction towards organizational performance.

5. LIMITATIONS OF THE STUDY

There are certain limitations of the study. Firstly, Primary data sources for the study may be heavily reliant on
participant cooperation. Secondly, this study empirically tests the factors of organizational behavior and its effect
on job satisfaction towards organizational performance as the theoretical base. Thirdly, data is gathered at a
specific point in time, hence the results are only valid for that time period. Fourth limitation is the sample size
was limited to just one leading super shop in Chattogram, Bangladesh, but future research might expand the
sample to include other corporate businesses there as well as take into account other job satisfaction factors
besides achievement, bonus, training and development, allowance, insurance, salary and provident fund,
vacation facilities, and working conditions.

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6. CONCLUSION AND RECOMMENDATIONS

According to the findings of the study, there is a strong correlation between organizational behavior and job
satisfaction. Organizations must devote greater attention to these components of the job, as the results of the
regression analysis indicated that organizational behavior has a direct impact on job satisfaction (R square is 34.3
percent) and its influence on organizational performance. Organization should more concern the factors like
salary and provident fund, allowance, bonus, and vacation facilities as well as prioritize the elements i.e. working
conditions, training and development, insurance and achievement that are contributed to satisfy the job
satisfaction which is aided to the organizational performance. Employees in this era of globalization are highly
qualified and more concerned with their rights while doing job in an organization which includes salary and
provident fund, allowance, bonus, vacation facilities, working conditions, training and development, insurance
and achievement as mentioned in this study that the companies recognize and meet the needs of their employees
to ensure effective achievement of their goals and objectives.

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