An Investigation on the Relationship between Employee Job Satisfaction and Organizational Performance with Particular reference to the Manufacturing Industry

Abstract

This paper empirically examined the impact of employee job satisfaction on organizational performance in large and medium scale manufacturing industries. It notes that Employee job satisfaction is vital for improved organizational performances. The paper tells that an employee with a high level of job satisfaction holds positive attitudes towards his job. On the contrary, an employee who is dissatisfied with his job holds negative attitudes about the job. It also noted that improved organizational performances result from committed workforces who are satisfied with their work facets in the organizations. The usually judgment about employees is that “A satisfied worker is a productive worker”. If employees are satisfied then it will create a pleasant atmosphere within the organization to perform in a better and efficient manner, therefore, job satisfaction and its relation with organizational performance has become a major topic for research studies. The aim of this study is to analyse the impact of employees job satisfaction on organizational performance among the employees working in manufacturing sector in Karnataka and also to explore the link between job satisfaction and organizational performance and to determine if there is an empirically provable relationship between these two variables, and the direction and the intensity of this relationship. Empirical research was conducted on a research sample of ten companies consists of large and medium scale industries, with 155 employees surveyed. The results of this study show the existence of a clear link between employees’ job satisfaction and organizational performance in both directions, but with pretty weak intensity. Detailed analysis showed that the connection between job satisfaction and organizational performance is stronger than the connection between organizational performance and job satisfaction. From the detailed analysis showed that there is a strong positive relationship between employee job satisfaction and organizational performance. At the same time, analysis showed that “remuneration” and “promotion” are the two crucial factors of job satisfaction these are closely related with job satisfaction. Consequently, based on overall research findings can say that there is a strong positive relationship between employee job satisfaction and organizational performance. It could be stated that job satisfaction determines organizational performance, rather than organizational performance determining job satisfaction.