JOB SATISFACTION AND EMPLOYEE PERFORMANCE IN A RECEDING ECONOMY (A SURVEY OF SELECTED COMPANIES IN PORT HARCOURT)

ABSTRACT

The study examines job satisfaction and employee performance in a receding economy. The main objective of the is to determine whether there is positive relationship between Job satisfaction and employee performance, to find out whether employee’s derived job satisfaction from extrinsic job rewards or intrinsic job rewards, to find out the most satisfying event of an employee’s in the job and why employee’s stay in the job, to identify the problem of job satisfaction in a receding economy, to find solution to the problems of the job satisfaction in a receding economy. The population of this study is made of all the management and junior staffs of Prodeco, Dangote Cement and Intels in Port Harcourt. The researcher draws a sample size of one hundred (100) respondents using non probability sampling technique. Based on the analyses of the study, hypothesis was tested the researcher concluded on the null hypotheses that there is relationship between job satisfaction and employee performance. Based on the findings of the study summary conclusion and recommendations were made that managers should be cautions and apply sense of professionalism in the application of motivational tools in their various organizations with regards to the organizational cooperate objectives, managers should adopt motivational tools that will ensure employee job satisfaction to boost their morale for the achievement of high productivity in the organization and also to reduce organizational conflict, ) Organizational leadership should involved employees in some decision making affecting them through periodic meeting, managers should be mostly concerned about employee job satisfaction to motivate them for high performance.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Job satisfaction is an important factor about employee’s performance and the predictors of work behavior. The benefits of job satisfaction for an organization are to reduce complaints and grievance regarding workers, better turnover and absenteeism and reducing cost of training as termination of employees and also improved punctuality and work morale of the workers.

Job satisfaction has been defined as a positive emotional state resulting from the pleasure a worker derives from the job (Locke, 1976; Spector, 1997) and as the affective and cognitive attitudes held by an employee about various aspects Of their work (Kalleberg, 1977; Mercer, 1997; Wright and Cropanzano, 1997; Wong et.al., 1998); the later implying that satisfaction is related to the component facets rather than the whole job, which is consistent with Spenctor’s (1997) view. This definition suggests job satisfaction is a general or global affective reaction that individuals hold about their job. While researchers and practitioners most often measure global job satisfaction, there is also interest in measuring different “dimensions” of satisfaction. Examination of these facet conditions is often useful for a more careful examination of employee satisfaction with critical job factors. Traditional job satisfaction facets include: co-workers, pay, job conditions, supervision, nature of the work and benefits. (Williams, 2004).

According to Mitchell and Lasan (1987), it is generally recognized in the organizational behaviour field that job satisfaction is the most important and frequently studied attitude. While Luthan (1998) posited that there are three important dimensions to job satisfaction: 1/. Job satisfaction is an emotional response to a job situation. As such it cannot be seen, it can only be inferred; Job satisfaction is often determined by how well outcome meet or exceed

expectations. 3/. Job satisfaction represents several related attitudes which are most important characteristics of a job about which people have effective response.

Employee Performance is a multi-dimensional construct. It may be defined as the record of an individual’s accomplishment. Kane (1996) argues that performance is something that the person leaves behind and that exists apart from the purpose. Performance, apart from being an outcome, is about doing the work as well as being about the results achieved. Campbell (1990) believes that performance is behavior. For this paper, performance is ‘both behavior and results. This is because behaviors emanate from the performer and transform performance from abstraction to results.

Motivating is a strong factor of satisfy worker. Motivating factors include responsibilities, promotion and personal development. In the working environment, motivating factors play an important role to satisfying worker whiles the absence of the motivation resulting dissatisfying worker. Lack of skilled person is result the selection of less qualified person for the job. It also affects the worker mind towards negatively (Mark A. Tietjen, 1998).

Age factor is also impact on job satisfaction. It is proving by a study that by passing a time in job, the satisfaction level of the worker increasing. It is also found a strong relationship between age and satisfaction. On the other hand we also can say that by passing a time in job the basic needs of a worker are decreasing so worker does not want to pay any more attention for satisfaction (Clark A., 1996). Another research shows that sex is also an effective factor of job satisfaction. It is found that male worker is less satisfied than the female worker. The reason is that male worker wants personal development and more decision power than the female worker. In most of the societies, there are fewer opportunities for females so that they may be more satisfied to attain these few opportunities (Keith A. Bender, 2005). Few of researchers do not believe that increased in job satisfaction can improve the performance of the worker.

Sometime more satisfaction can decrease the performance of worker. For example if a worker sit around all the day and do nothing then he is more satisfied in short run but it effect the performance of worker as well as organization so better way to satisfaction only can improve performance.

1.2 STATEMENT OF THE PROBLEM

Job satisfaction is increasing in importance, as the competition for talent is high and still growing. It is not hard for a competitor to compete with individual elements of employment such as salaries and benefits. Boyens (2007), focuses on the reasons of involuntary turnover, voluntary turnover, and promotion for employees to leave a particular company. Furthermore, he says that the two types of turnover are the most devastating for organizations. The effect of voluntary turnover includes loss of performance, knowledge, expertise, relationship, and loss of the time and resources that it took to train the employee. This leads to a feeling of insecurity and affects the performance of the employees who are left because of the constant disruption of services and too much change which as a result affects the general performance of the company.

Employee turnover rates have, within the last decade become a nationwide epidemic. Employees in some organizations no longer feel the sense of company loyalty that once existed. Increasing numbers of corporate mergers and acquisitions have left employees feeling detached from the companies that they served and haunted by concerns of overall job security. This has led the employees to focus more on job hunting rather than performance thereby hurting the general performance of the company. With the problem of increasing employee turnover in the industries today, one wonders if the goal of the government concerning the growth and expansion of the economy is going to be realized. It therefore calls for a greater action to be taken to find out how to retain the organizations valuable employees and the factors likely to affect them to remain in their organizations to help achieve corporate objectives. This

research study seeks to investigate the factors that may influence employee job satisfaction in a receding economy and how these factors affect performance of employees in the organization.

1.3 RESEARCH QUESTIONS

1. What are the relationships between Job satisfaction and employee performance?
2. Does employee’s derived job satisfaction from extrinsic job rewards or intrinsic job rewards?
3. What are the most satisfying event of an employee in the job and why do employee’s stay in the job?
4. What are the problems of job satisfaction in a receding economy?
5. Are there solutions to the problems of the job satisfaction in a receding economy?

1.4 OBJECTIVES OF THE STUDY

1. To determine whether there is positive relationship between Job satisfaction and employee performance.
2. To find out whether employee’s derived job satisfaction from extrinsic job rewards or intrinsic job rewards.
3. To find out the most satisfying event of an employee’s in the job and why employee’s stay in the job.
4. To identify the problem of job satisfaction in a receding economy.
5. To find solution to the problems of the job satisfaction in a receding economy.

1.5 SIGNIFICANCE OF THE STUDY

The value of any study lies in its usefulness to the society. In view of this fact therefore, this study which focuses on Job satisfaction and employee performance in a receding economy is of most useful to managers in various organization especially the human resources department of selected companies in Port Harcourt Rivers State.

Apart from its value to decision makers in organizations, this study is of immeasurable importance to students and lecturers of the faculty of management sciences who may like to further their understanding of the role of industrial relations practices in both government owned parastatals and outside firms.

Above all, it is therefore hoped that this study will stimulate further studies in this area.

1.6 STATEMENT OF HYPOTHESIS

Ho: There is no significant relationship between job satisfaction and employee performance

H1: There is a significant relationship between job satisfaction and employee performance.

1.7 SCOPE AND LIMITATIONS OF THE STUDY

The study is designed to focus on selected companies in Port Harcourt Rivers State.

This study will be limited to the study of job satisfaction and employee performance in Prodeco, Dangote Cement and Intels.

The short period required for all completion of the study would introduced elements in rush, which will affect the researcher’s performance. Besides lack of enough money is also another chronic limitations among students of which the researcher was not exempted.

The sample size involving Three (3) companies and statistical error will also constitute the major weak point to the study; notwithstanding, the researcher believes that, the data generated will guarantee reasonable conclusion therein.

Limitation: The followings are limitations to the research work.

Finance: Accessing fund for the research work as difficult and this to a great extent limited the quality of research activity.

Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.

Organization Policy: Policies of some of the organizations visited limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.

1.8 DEFINITION OF RELATED TERMS

Employee: A person employed for wages or salary, especially at non-executive level.

Performance:  an activity (such as singing a song or acting in a play) that a person or group does to entertain an audience.

Job: a paid position of regular employment.

Satisfaction: Fulfillment of one’s wishes, expectations, or needs, or the pleasure derived from this.

Job satisfaction: It is simply how content an individual is with his or her job, in other words, whether or not they like the job or individual aspects or facets of jobs, such as nature of work or supervision.

Employee performance: The job related activities expected of a worker and how well those activities were executed. Many business personnel directors assess the employee performance of each staff member on an annual or quarterly basis in order to help them identify suggested areas for improvement.