Relationship of Job Satisfaction and Employee Performance - Essay Sample

Abstract

Employee satisfaction is a momentous issue in the recent times in organizational setup to the achievement of its goals and objectives. Job satisfaction is a critical element to the management of an organization because it significantly determines the behavior of employees in an organization. More satisfied employees are more productive compared to less satisfied; moreover, they are pivotal in creating a conducive environment in the organization as well as influence co-workers to perform better in the organization. This paper aims to explore how the UAE in the midst of a recession can retain the best talent in relation to job satisfaction and employee performance. The study utilized the human capital theory, Adam's Equity theory and Vroom's expectancy theory.

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Based on the data, the research established that compensation, growth and development, supervision, work environment, and co-worker relations affected job satisfaction and employee performance of employees in the companies. Moreover, low morale, company losses, lack of productivity, and high employee turnover are the risks of low satisfaction among employees. Finally, the study established job satisfaction plays a pivotal role in employee performance.

Introduction

Background for Research

Talent management is among the greatest debated topics in human resource management, both practice and theory and the primary issue facing managers in the contemporary society. Ashley (2018) indicated that the recruitment and retaining of experienced and capable personnel in an organization underpins the success of a business, regardless of the size. Hence, the failure of an organization to ensure its employees have job satisfaction often results in challenges in retaining their employees. Consequently, loosing capable and experienced employees through resignation becomes destruction to the delivery programs as well as company goals. Lu, Zhao and While (2019) highlights the existence of a relationship between job performance, job satisfaction, turnover, and absenteeism.

However, they also stressed that the changing employee expectations are greatly influenced by the demographic trends including the rising number of generation Y employees and rising number of women entering the working force and generally a more changing society significantly impacted by technology and changing trends. Therefore, the focus of the study is examining the relationship between job performance and job satisfaction.

Over the years, researchers have studied the reasons contributing to some employees showing high satisfaction rates while others show low satisfaction rates and some total dissatisfaction in their jobs. The most famous research on job satisfaction and job performance was the Hawthorne study in 1924 that highlighted the importance of the relationship between the two variables (Jung and Lee, 2015). Job satisfaction and job performance both significantly influence service delivery in an organization (Sharma and Dhar, 2016). Munir and Rahman (2016) identified the various dimensions that contribute to employee satisfaction, including remunerations, good management, and leadership, promotions, working environment as well as acknowledgment.

In the 21st century, the influence of job satisfaction and job performance is pivotal since the primary concern in several companies is an improvement in job performance to increase their effectiveness and efficiency through a change in attitude. Bareket-Bojmel, Hochman and Ariely, (2017) pointed out that every employee is motivated by a different incentive regardless of its nature, including internal, external, and monetary motivations. Moreover, non-monetary motivation methods, including appreciation, recognition by senior management and empowerment are most preferred as a means of being motivated in the workplace during fluctuating economic conditions. The use of non-monetary strategies is a widely used technique among organizations during moments of a financial crisis. Besides, employee empowerment is often preferred in both times when a company is in a crisis or performing better. The study of Grayson and Hodges (2017) found support by a similar study done in Western Europe companies concerning the use of empowerment as a working strategy during a business decline.

A significant number of employees in the UAE are unhappy with the frequency of the increase in their salaries amidst the increasing cost of living (Ibrahim, 2019). Expatriates often consider saving for the future is a critical factor when moving to the UAE; however, the rising costs of living are affecting their financial security and often consider moving to other countries such as USA and UK for alternatives. Job security is an essential factor to consider following the introduction of a 5% VAT rate as well as an economic recession experienced in the recent years (Ibrahim, 2019). Although job satisfaction is relatively high among specific industries in the UAE.

The apparel industry in UAE invests time and money to recruit talented employees and strive to retain individuals who are valuable to the organization. The success of the apparel industry is directly linked to the satisfaction of employee who embodies that particular organization. Moreover, they often strive to create favorable working conditions to minimize employee resignations due to dissatisfaction in their job. The textile industry needs to attract and retain skilled employees through the creation of a good working environment. One view related to the early human association pointed out that performance results in satisfaction. The common factors associated with dissatisfaction are labor turnover and absenteeism. Although this factor might show a significant level of correlation, there might be other factors related.

In an article in Gulf News (2017), it is stated that the level of employee engagement in the United Arab Emirates is very low. Approximately 85% of the people in the UAE are not engaged and satisfied with their work that leads them to become less productive (Gulf News, 2017). The dissertation has been chosen because it has been seen that the job market in the UAE is quite unstable because of job dissatisfaction of the employees. Therefore, the research study will assist in identifying the actual causes and the percentage of the people who are not satisfied with their job. Moreover, the study will assess the causes, which lead to job satisfaction and helps to understand job satisfaction within the UAE.

Other factors can be associated with changes in the workplace, social trends, demographics, as well as the growth of the UAE economy. Platis, Reklitis and Zimeras (2015) highlights a general change in employee satisfaction trends since 2003, while economic and technological changes are the significant influencers to job satisfaction. States the contributors to job satisfaction as job security, communication between senior management and company employees, relationship with intermediate supervisors. The senior management of a company is required to address the urgent needs of employees to minimize an increase in the present job attrition rates. Activities of the top management to the employees improve a sense of job satisfaction and motivates employees to improve on their service delivery. However, an organization should consider internal and external factors that fluctuate over time; therefore, it is vital for an organization to understand how such factors contribute to their employee satisfaction or dissatisfaction rates. It is critical to ensure employees receive optimal motivation to impact on their job performance.

The worldwide skill gaps position organizations to introduce more aggressive talent management practices as well as approaches to develop, retain and attract available talent, both local and from abroad. Even amidst recession in Dubai economy, the competition for and retention of the best talent is still high, driven by the need to gain a competitive advantage. Talent management practices and talent shortages are often affected by various trends and factors including demographic changes, globalization and technology advancements.

Research Questions

The following questions will guide the research:

• What are the factors influences employee satisfaction in the apparel industry in UAE?
• Which contributors of job satisfaction affects employee performance?

Significance of the Study

Every senior management in an organization should ensure that employee's needs are catered for while at work. Employees should perform their duties in a friendly environment where they are satisfied with their work. To enhance productivity in an organizational setup, managers shoul...