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Job satisfaction and its impact on organizational performance

Discuss about the Management Human Resource for Emotional Intelligence.

The study aims to provide a detailed knowledge on the job satisfaction in an organisation. The study focuses on the impact of job satisfaction on the performance of the organisation. The study, analyses the role of managers in an organization, which helps in increasing the level of job satisfaction. In order to validate the use of the management theory such as contingency theory, system theory and organisational environmental theory, the examples of organisations are cited. The advantages and the limitation of the theories used to increase job satisfaction are highlighted to strengthen the study. The study helps to obtain a detailed about job satisfaction and its impact.

Job satisfaction of the employees of an organisation can be termed as the sum total of the feelings and the beliefs that the employees feel towards the current their present job. Ensuring job satisfaction is important to the employees is important for the managers of the company, as the productivity of the company is highly dependent on the employees. In the opinion of Imran, (2014), lack of job satisfaction will cause the productivity of the company to decrease as the employees will not be able to deliver their best performance level. Therefore, it is necessary for the managers to adopt strategies that deliver the high level of job satisfaction to its employees.

 The job satisfaction has a significant impact on the organisational performance. An organisation that provides the high level of job satisfaction to its employees are successful in achieving high productivity, reduction in the number of employee turnover, lesser mischances, minimised unionisation and high productivity of the company (Nicolini & Moteiro, 2016). On the other hand, the performance level of the employees gets decreased when there is a lack of job satisfaction within the staffs. The overall performance level of the company is therefore hampered. (Kogg & Mont, 2012). It increases the turnover rate for the employees as the individuals do not fit well in the organisation. The entrepreneurs of the company need to identify and analyse the level of job satisfaction the company provide to its employees to ensure growth in the performance of the organisation so as to develop further.

The managers of the organisation play a very vital role in enhancing the level of job satisfaction provided to the employees. The first step that the managers undertake in order to increase job satisfaction is providing a healthy and a positive working environment to its employees. It is important to understand the needs of the employees and meet those needs to create a motivating working environment.  The managers can use the personal recognition tool in order to construct motivation and morale within the organisation. A single step taken by the managers can help to bring huge positive changes in the productivity of the labours. Informal celebration, positive feedbacks, small rewards and incentives are the effective way in gaining job satisfaction (Abbas et al., 2014).

Manager's role in increasing job satisfaction

The other ways of ensuring more job satisfaction are to encourage the employees to contribute their ideas and suggestion in the organisational activities. A sense of ownership is delivered through the process that increases the pride to work and thus increases the job satisfaction. Furthermore, the managers conduct training and job-related education to increase the level of job satisfaction of the employees (Park & Shaw, 2013). This process increases the productive and the level of innovation in the employees. Well, trained employees are able to understand their job better and therefore has better control over the job they perform. Trained staffs require minimum supervision that decreases the burden of the managers. The customer service delivered by trained employees is highly satisfactory that builds customer loyalty for the brand.

Moreover, to ensure and balance an effective job satisfaction, the managers need to carry out the continuous evaluation of job satisfaction. This helps the managers to identify the areas of issues that need to be addressed and thereby develop the better plan for improving in the future.

The theories such as the contingency theory, organisational environmental theory and the system theories are some of the effective management theories that are used by the managers to influence job satisfaction. The Elfin Cars in Australia is a sports car manufacturer that employs the contingency theory of leadership and system theory within its workplace. The leadership style allows the managers of the company to meet the internal needs of the company that supports achieving of job satisfaction for the employees (Braun et al., 2013). The management is situational and the managers apply varies ways to gain job satisfaction depending on the present situation of the company. Therefore, the effective of the level of job satisfaction is achieved using the contingency theory and the system theory.

On the other hand, Haigh’s Chocolates implements the organisational environmental theory in the organisation. The organisational environment theory helps the company manage the business in an integrated manner. The approach provides the company with a structured configuration and an orderly plan to manage the activities of the company (Omotayo, 2015). Thus, the employees are able to work in a better manner that increases their job satisfaction level.

Contingency theory:

Advantages:

The contingency theory creates a pressure on the management that helps to achieve success in the projects undertaken and creating job satisfaction. The theory ensures control over the employees by assigning job roles to the employees.

Management theories and practices that influence job satisfaction

Disadvantages:

The theory is criticised for having limited literature and being incapable of carrying out various organisational actions. Moreover, the theory is complex when managers try to implement it within the organisation. There are chances of avoiding thorough analysis of the theory during the lack of time, which might result in inaccurate outcomes (Hülsheger et al., 2013).

Advantages:

The organisational environment theory is useful in creating interpersonal relationships between the employees that increase job satisfaction. The employees are able to adapt better to the challenges in the organisation which increases the productivity by keeping them proactive (Card et al., 2012).

Disadvantages:

Sometimes, the implementation of the theory in certain businesses leads to decrease in the productivities and activities become time-consuming. The ability of the company to make changes and react to the issues reduces that adversely affects the company (Ealias, & George,  2012).

Advantages:

The system theory offers an integrated and a holistic view to the managers in order to manage the whole company. Proper management further helps to earn higher job satisfaction. The theory allows interrelation and interdependence of the subsystems. The impact of issues occurring at one part of the company is analysed by the managers easily that helps them to find effective solutions.

Disadvantages:

There is no specific tool for the theory that the managers can apply in the workplace. Nevertheless, the theory is vague and abstract that hinders the application of the theory in the practical problems (Imran et al., 2014).

Conclusion

 The study infers that the managers of the companies play a vital role in increasing the job satisfaction. The managers of the company use theories such as contingency theory, system theory and organisational environmental theory to achieve job satisfaction by a healthy working environment, feedbacks, rewards, training and continuous evaluation of the company’s productivity. The examples of the Australian companies such as Elfin Cars and Haigh’s Chocolates are cited to understand the implementation and efficiency of the theories. The strengths and the weakness of each theory evaluate the importance of the theories in the management system of the companies.

References

Abbas, M., Raja, U., Darr, W., & Bouckenooghe, D. (2014). Combined effects of perceived politics and psychological capital on job satisfaction, turnover intentions, and performance. Journal of Management, 40(7), 1813-1830.

Braun, S., Peus, C., Weisweiler, S., & Frey, D. (2013). Transformational leadership, job satisfaction, and team performance: A multilevel mediation model of trust. The Leadership Quarterly, 24(1), 270-283.

Card, D., Mas, A., Moretti, E., & Saez, E. (2012). Inequality at work: The effect of peer salaries on job satisfaction. The American Economic Review,102(6), 2981-3003.

Ealias, A., & George, J. (2012). Emotional intelligence and job satisfaction: a correlational study. Research journal of commerce and behavioral science,1(4).

Hülsheger, U. R., Alberts, H. J., Feinholdt, A., & Lang, J. W. (2013). Benefits of mindfulness at work: the role of mindfulness in emotion regulation, emotional exhaustion, and job satisfaction. Journal of Applied Psychology,98(2), 310.

Imran, H., Arif, I., Cheema, S., & Azeem, M. (2014). Relationship between job satisfaction, job performance, attitude towards work, and organizational commitment. Entrepreneurship and innovation management journal, 2(2), 135-144.

Kogg, B., & Mont, O. (2012). Environmental and social responsibility in supply chains: The practise of choice and inter-organisational management.Ecological Economics, 83, 154-163.

Nicolini, D., & Moteiro, P. (2016). The practice approach: for a praxeology of organisational and management studies. The SAGE Handbook of Process Organization Studies, London: SAGE.

Omotayo, F. O. (2015). Knowledge Management as an important tool in Organisational Management: A Review of Literature. Library Philosophy and Practice, 1.

Park, T. Y., & Shaw, J. D. (2013). Turnover rates and organizational performance: A meta-analysis. Journal of Applied Psychology, 98(2), 268.

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