A STUDY OF FACTORS AFFECTING JOB SATISFACTION (EVIDENCE FROM PAKISTAN)

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1 A STUDY OF FACTORS AFFECTING JOB SATISFACTION (EVIDENCE FROM PAKISTAN) Nasir Mehmood (Corresponding author) Lecturer - Department of Management Sciences, University of Wah The Mall, Quaid Avenue, Wah Cantt (47040) - Pakistan Sobia Irum Lecturer - Department of Management Sciences, University of Wah The Mall, Quaid Avenue, Wah Cantt (47040) Pakistan Kamran Ahmed Lecturer - Department of Management Sciences, University of Wah The Mall, Quaid Avenue, Wah Cantt (47040) Pakistan Afshan Sultana Lecturer - Department of Management Sciences, University of Wah The Mall, Quaid Avenue, Wah Cantt (47040) Pakistan Abstract Myriad of forces affect satisfaction in different situations and conditions. Satisfaction is a dynamic phenomenon and an individual s attitudes and behaviors which evaluate his/her job role at work is referred as job satisfaction. Organizations are concerned about job satisfaction and consider it as a legitimate factor influenced by strong humanistic values. This research simply aims to study different factors (working condition, salary and benefits, working hours, upward striving and work significance) influencing job satisfaction. Primary data (sample size = 324) is collected from employees in multiple Pakistani companies. A relationship of job satisfaction to salary, working conditions, promotion and autonomy is revealed in this study through multiple regression analysis. As shown in this research outcome, working conditions are more significantly related to job satisfaction than salary, upward striving, benefits and autonomy. Key Words; Job satisfaction, working conditions. 1. Introduction The present research is conducted to explore the relationship between job satisfaction and multiple factors like salary, working conditions, working hours, upward striving and work significance instead being relied on single factor. The study includes both intrinsic factors (like autonomy, recognition and accomplishment) and extrinsic factors (like working conditions, security and pay) to assess satisfaction among employees. Intrinsic factors are helpful in analyzing sense of accomplishments, innovative and risk taking abilities, autonomy, and work challenges faced by employees. On the other hand, extrinsic factors reflect behaviours and attitudes towards career development, salary and perks, potential increase in income. The theory of job satisfaction has been prominent in social sciences for ages. According to Kalleberg and Berg 1987, job satisfaction is the evaluation of an individual s current job role. It indicates the feelings of an individual towards his/her job and influenced by myriad of forces caused by complex personal and situational circumstances surrounding that particular individual (Hagedorn, 2000; Herzberg, 1966; Kalleberg, 1977; Volkwein et al, 1998). When work becomes imperative for an individual, he/she would get more satisfied in life when satisfied at work place. This satisfaction includes both intrinsic as well as extrinsic to an individual (Dirk and Donald 1987). The data will be gathered through questionnaire preceded by a literature review of relevant studies and identification COPY RIGHT 2012 Institute of Interdisciplinary Business Research 673

2 of different variables relating to job satisfaction. The following sections will include literature review, theoretical framework, data analysis and discussion. 2. Literature Review One of the predominant areas of study in social sciences has been job satisfaction. Many studies varied in defining the term job satisfaction. Job satisfaction results from job appreciation or job achievement values and termed as a pleasurable emotion (Locke 1969). One s well being as mental and physical fitness is likely to result from his/her satisfaction at work. Several researchers explained two factors playing important role in the context of job satisfaction. First is individual s perceived work characteristics (rewards) and second is work values which means the importance an individual associates with perceived work characteristics (Hulin, Kendall and smith 1969, Kalleberg 1977, Locke 1969 and Katzell 1979 (Clifford J. Mottaz 1985). Herzberg (1966) presented Two Factor Theory which outlined satisfaction in a multidimensional perspective. This tempted us to analyze job satisfaction through intrinsic factors (e.g. autonomy, recognition and sense of accomplishment) and extrinsic factors (e.g. pay, work environment and job security). Intrinsic and extrinsic aspects of job satisfaction have been explored by several studies in the past (Austin and Gamson, 1983; Hackman and Lawler, 1971; Hagedorn, 1994; Kalleberg, 1977; Olsen, 1993). Some aspects of the work responsibilities and conditions may satisfy an employee but others may have opposite effects. According to Kanter (1977), an employee being satisfied with present job contents does not guarantee the same level of satisfaction at the same time for his potential career development or internal mobility in organization. An empirical study by Vold-wein and his colleagues (1998) explored support for several aspects of job satisfaction: work challenges, risk taking initiatives, innovative abilities, autonomy and sense of accomplishment as sources of intrinsic satisfaction and a reflected attitude and behaviors towards potential income, growth opportunities, and salary and benefits as extrinsic satisfaction. The way someone reacts to working hours, job stress, job security and organizational politics shows his/her satisfaction with organizational working conditions. Interpersonal relationships reflect satisfaction in communicating with work colleagues. Job satisfaction is positively and significantly influenced by variety of job-related factors such as strong organizational culture, interpersonal relationships, employee empowerment, teamwork, and self-perceived responsibility (Austin and Gamson, 1983; Hackman and Lawler, 1971; Hagedorn, 1994; Kalleberg, 1977; Olsen, 1993). Job satisfaction in general results from many influential factors, predominantly the intrinsic and extrinsic rewards associated with job position and working environment. Such imperative aspects of job satisfaction include nature of job (intrinsic), tangible rewards (extrinsic) and relationships with people at work (interpersonal). These elements of satisfaction are strongly influenced by direct working environment which encompasses controlling regulations, job stress, interpersonal conflicts, team work, and sufficient provision of funding and facilities. Job is a source of wealth and livelihood for individual, so it has a direct affect of extrinsic rewards associated with work and result into satisfaction for individual (Wim Groota, Henrie tte Maassen van den Brink, 1999). An individual s believes about job satisfaction through increased pay rewards and job characteristics are based on traditional economic wisdom. Individuals evaluate their efforts with rewards received in return and perceive more satisfaction when fixed pay is considered fair in return for their efforts for organization (Jacques and Roussel 1999). Fixed pay can result in job motivation and job satisfaction for exempt employees and only job satisfaction for non-exempt employees. According to Hui, Kevin Au and Fock (2004), one s satisfaction increases with freedom, age and income. Perception of compensation among individuals varies, by studying employee s value system, it is found that employees beliefs of taking pride in their work strengthened when educational and salary levels increased. Workers at early stage of their career have strongly valued both intrinsic and extrinsic aspects of their job. Although they prefer rewarding work assignments and work environments more than experienced workers, a greater potential for economic growth opportunities are also strongly valued by them. Satisfaction has been generally viewed as function of worker s rewards and expectations by many researchers. That is why workers who possess better rewarding jobs have higher satisfaction than with little intrinsic and extrinsic values (Kalleberg, 1977). According to Volkwein and Zhou (2003), employees are affected by different behavioral aspects which result from elements of job and working environment. This particular study explored that immediate working COPY RIGHT 2012 Institute of Interdisciplinary Business Research 674

3 environment more strongly influenced employees at work than individual, environmental and organizational characteristics. Additionally, it was noticed that some of the working environment factors such as interpersonal harmony, job security and teamwork proved more significant than others. The model implies that satisfaction in general is an outcome of complex balance of many elements. Teamwork and strong working relationships have a significantly positive effect on most of the job satisfaction measures. Interpersonal conflict has negative impact on satisfaction. Moreover, job insecurity has a high and direct negative impact on satisfaction in general and in specific to all three elements of job satisfaction. Many years of research in different organizations and jobs have indicated that nature of job itself becomes a dominant factor of job satisfaction when employees assess different aspects of their work like supervision, salary, growth opportunities, colleagues and so on (Judge & Church, 2000; Jurgensen, 1978). When the job performed by an employee is perceived to be important will increase satisfaction level. Work challenges let employees utilize their skills, knowledge and intelligence to deal with complexities involved in job, as researched by Yoav Ganzach (1998). It shows that intelligence increase job satisfaction as employees with high intelligence undertake better, interesting and challenging jobs. There is a negative association between intelligence and job satisfaction when complications in jobs are persistent because most of the jobs are not challenging or interesting, hence if the job lacks the perceived element of interest it may cause dissatisfaction among intelligent employees. Most employees desire for autonomy in order to perform effectively for goal attainment. Few studies have found a positive relationship between autonomy and job satisfaction (Hui, Kevin Au and Fock 2004). Individuals take pride in their jobs if empowered at work and show a moderate relationship with a sense of self-control when measured for perceived life control. According to Messersmith (2007), workers control their matters. Managers can facilitate workers by empowering them in terms of given control over their activities, environment, quantity of work, and considerations for work-life balance. Satisfaction and performance are the product of an individual s three psychological states: (1) experienced meaningfulness job is perceived important, worthy, and valuable; (2) experienced responsibility job is perceived given empowerment; (3) knowledge of results job is perceived given feedback regarding effectiveness of work. Among all the dimensions of job satisfaction, in general, it is better predicted through nature of job which contains work challenges, autonomy, variety, and scope of job. 3. Research Methodology 3.1 Theoretical Framework Salary& Benefits Upward Striving Working Condition Job satisfaction Autonomy COPY RIGHT 2012 Institute of Interdisciplinary Business Research 675

4 3.2 Econometric equation Job Satisfaction (JS) JS = a + b 1 (salary and benefits) + b 2 (upward striving) + b 3 (working conditions) + b 4 ( autonomy) 3.3 Hypothesis H o : Job satisfaction is effected by salary & benefits, upward striving, working conditions, and autonomy. H 1 : Job satisfaction is not effected by salary & benefits, upward striving, working conditions, and autonomy. 3.4 Variable Explanation Independent Variables Salary and Benefits Salary and Benefits are predominant factors that effect job satisfaction. Respondents were presented with a questionnaire and responses were assessed on a 5-Liket scale to investigate the effects of salary and benefits over job satisfaction among employees Upward Striving Upward striving, as an independent variable, also effects job satisfaction. Employees satisfaction in an organization is usually increased through promotions. A 5-likert scale is used to test the responses ranging from 1- strongly disagree to 5-strongly agree Working Conditions Working conditions is another considerable variable that effects job satisfaction. Interpersonal relationships with peers, colleagues and subordinates are also encompassed by working conditions. Responses are evaluated at 5-likert scale of 1- strongly disagree to 5-strongly agree Autonomy Autonomy at work can be a considerable factor to investigate the level job satisfaction. Employees are better able to self-assess their capabilities matching up with their jobs with this factor. In order to evaluate the responses, a 5-likert scale of 1-strongly disagree to 5-strongly agree is used Dependent Variable Job Satisfaction 5-likert scales ranging from strongly disagree to strongly agree is used to assess responses regarding Job Satisfaction. 3.5 Sampling This research was particularly focused to investigate employee s satisfaction in service industry. Non-probability sampling method (convenient sampling) was used for this study. The survey was conducted and questionnaire was distributed. A 5-likert ranging from 1- strongly disagree to 5-strongly agree was used for this research. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 676

5 Insert Table 1 Above-mentioned numbers of male and female were identified with nominal scale. Insert Table 2 Nominal scale was used to determine the ages of the employees as above. Insert Table3 Marital status was also identified through nominal scale as mentioned above. Insert Table4 Data collected about qualification of employees as mentioned above using nominal scale. Insert Table 5 Using nominal scale, data was collected about salary package of employees. Questionnaire method of survey was used to conduct this particular research. A total of 410 questionnaires were distributed, out of which, 320 were returned. Therefore the response rate was calculated as follows: Questionnaire responded *100 Total questionnaires 324 *100 = % 410 The calculated response rate was 79.02% 4. Data Analysis 4.1 Descriptive Statistics Insert Table 6 Table-1, as mentioned above, reflected the average (mean) responses of total sample size of 324. The mean value of job satisfaction was calculated as 3.18 resulting into a neutral response regarding job satisfaction which means we cannot conclude that the employees in service sector are either satisfied or dissatisfied. Most employees in service sectors are neither satisfied nor dissatisfied but possibility of deviation exist between 2.5 and 4.1, e.g. from disagree to agree. Salary and benefits data (mean value of 2.46) indicates that the employees in service industry are not satisfied with their pay packages and benefits. The possibility of deviation exist between 1.7 and 3.5 which means between strongly disagree and neutral. Mean value of 3.32 for upward striving shows that most service sector employees are neutral about their promotions but possibility of deviation exist between 2.25 and 4.1 which means between disagree and agree. Working conditions in service sector have been rated neutral by employees as the mean value of 3.51 indicated in this research. It explains that the working conditions will have no effect on employees job satisfaction but still the possibility of deviation is there and the results could fall between the range of 2.44 to 3.2 which means from disagree to agree. Mean value of 3.31 for Autonomy shows that the employees in service sector are neutral about autonomy and consider the no effect of autonomy on job satisfaction. But there is a possibility of deviation in results ranging from 2.2 to 4 e.g. which means from disagree to agree. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 677

6 4.2 Model Summary Insert Table 7 The above table presents the R values for evaluating the overall fit of the model. The value of adjusted R 2 ( 0.025) indicates that 2.5% of variance in job satisfaction could be due to salary and benefits, upward striving, working conditions, and autonomy. The 0.01 significance level is used; therefore the result is best fitted 4.3 ANOVA Insert Table 8 Relationship of dependent and independent variables is shown by ANOVA table was selected as level of significance for above ANOVA calculations. If we ignore the F value, we can fairly establish that the it is good model based on significance level. 4.4 Co-efficient Insert Table 9 Efficiency between variables is identified by the Co-efficient test as calculated in above table. It determines the amount of change occurs in one variable due to change in other variable. The relationship between dependent and independent variables is shown as one-to-one. It is concluded from the results t=-1.39 shown in the table that the association between salary & benefit and job satisfaction is not strongly supported. This indicate that the salary and benefits have a slight impact the work life satisfaction Likewise, outcome of upward striving according to data in table t= demonstrate even the opportunity of promotion put a little effect on the satisfaction of employees. Similarly, results t = 2.60 enables us to concludes that the working conditions exert more relatively influence other variables in this research. Thus if the controls in work environment are improved, it will directly and positively impact the level of satisfaction of employees. Besides outcome of autonomy t = indicates that relationship between job satisfaction is not efficiently established. 4.5 Correlation Insert Table 10 Correlation table represents the inter-dependency of variables. The results obtained from the samples shows that 1 time change in salary and benefits brings times increase in job life satisfaction which provide the evidence that a negligible effect may observed if the salary is increased. According to the results obtained from the samples explain that 1 time change in upward striving brings times increase in job life satisfaction which confirm that there is a positive relationship between job satisfaction and upward striving however l increase in job satisfaction is not substantial one. However, this variable describes that employees in firm are satisfied with the opportunities offered to them. Similarly one time effect of working conditions yields 0.16 times effect in job satisfaction which indicates a positive association between working conditions and job satisfaction. Hence if we enhance the level of working conditions job satisfaction level will be significantly effected. According to results of study one time change in Autonomy induce a times increase in job life satisfaction which although reflects a positive relationship between two variables however their attachment is quite weak. 5. Conclusion This research endorses the existence of relationship between job satisfaction and the factors which effectively predicts the level of satisfaction. Statistical results demonstrate that the independent variables like salary COPY RIGHT 2012 Institute of Interdisciplinary Business Research 678

7 & benefits, upward striving, working conditions, and autonomy influence the job satisfaction of employee; hence the statement upheld in hypotheses is supported by evidences furnished in study. Study also reveals that role of working environment is the predominant factor that effect the level of satisfaction. So if this aspect is focused and addressed in the organizational setup it may improve the satisfaction level of employee that in turn lead to increase in performance. All other variables influence the job satisfaction however their impact is marginal. Briefly it is concluded that the finding of study not only have indentified the factors that affect the job satisfaction but also discovered that job conditions significantly impact the job satisfaction. COPY RIGHT 2012 Institute of Interdisciplinary Business Research 679

8 References Bernardin H.J, 1987, Development and Validation of a Forced Choice Scale to Measure Job-Related Discomfort among Customer Service Representatives, The Academy of Management Journal, Vol. 30, pp Broedling L.A, 1977, The Uses of the Intrinsic-Extrinsic Distinction in Explaining Motivation and Organizational Behavior, The Academy of Management Review, Vol. 2, pp Cherrington D.J, Condie S.J, Lynn J, 1979, Age and Work Values, The Academy of Management Journal, Vol. 22, pp Ganzach Y, 1998, Intelligence and Job Satisfaction, The Academy of Management Journal, Vol. 41, pp Hui M.K, Kevin Au, Fock H, 2004, Empowerment Effects across Cultures, Journal of International Business Studies, Vol. 35, pp Igalensi J, Roussel P, 1999, A study of the relationships between compensation package, work motivation and job satisfaction, Journal of Organizational Behavior, Vol. 20, pp Lock E.1969 what is job Satisfaction? Organizational Behavior and human performance 4: Messersmith J, 2007, Managing work-life conflict among information technology workers, Human Resource Management, Vol. 46, pp Moura G.R.D, Abrams D, Retteri C, Gunnarsdottiri S, Ando K, 2008, Identification as an organizational anchor: How identification and job satisfaction combine to predict turnover intention, Journal of Social Psychology, Vol. 10, pp. O Connor E.J, Barrett G.V, 1980, Informational Cues and Individual Differences as Determinants of Subjective Perceptions of Task Enrichment, The Academy of Management Journal, Vol. 23, pp Pate L.E, 1978, Cognitive Versus Reinforcement Views of Intrinsic Motivation, Academy of Management, Vol. 3, pp Rabinowitz S, Hall D.T, Goodale J.G, 1977, Job Scope and Individual Differences as Predictors of Job Involvement: Independent or Interactive, The Academy of Management Journal, Vol. 20, pp Sagie A, Elizur D, Koslowsky M, 1996, Work Values: A Theoretical Overview and a Model of Their Effects, Journal of Organizational Behavior, Vol. 17, pp Saari L.M, Judge T.A, 2004, Employee Attitudes and Job Satisfaction, Human Resource Management, Vol. 43, pp Shapira Z, Griffith T.L, 1990, Comparing the Work Values of Engineers with Managers, Production, and Clerical Workers: A Multivariate Analysis, Journal of Organizational Behavior, Vol. 11, pp COPY RIGHT 2012 Institute of Interdisciplinary Business Research 680

9 Taylor R.N, Thompson M, 1976, Work Value Systems of Young Workers, The Academy of Management Journal, Vol. 19, pp Wharton A.S, Rotolo T, Bird S.R, 2000, Social Context at Work: A Multilevel Analysis of Job Satisfaction, Sociological Forum, Vol. 15, pp Young S.A, Parker C.P, 1999, Predicting Collective Climates: Assessing the Role of Shared Work Values, Needs, Employee Interaction and Work Group Membership, Journal of Organizational Behavior, Vol. 20, pp COPY RIGHT 2012 Institute of Interdisciplinary Business Research 681

10 Tables Table 1 Gender No. Male 111 Female 213 Total 324 Table 2 Age Group No and above 22 Total 324 Table3 Marital Status No. Single 131 Married 193 Total 324 Table 4 Qualification No. Masters 200 Bachelors 87 Intermediate 14 Matric 04 Others 16 Total 324 COPY RIGHT 2012 Institute of Interdisciplinary Business Research 682

11 Table 5 Salary No. 5,000 and below 42 5,000-10, , ,000-30, ,000 and above 66 Total 324 Variables Table 6 Mean Std. Deviation Job Satisfaction Salary and Benefits Upward Striving Working Conditions Autonomy N R Table 7 R Square Adjusted R Square Table 8 Sum of Squares df Mean Square F Sig. Regression Residual Total Table 9 t Sig. Beta (Constant) Salary and Benefits Upward Striving Working Conditions Autonomy COPY RIGHT 2012 Institute of Interdisciplinary Business Research 683

12 Table 10 Variables Job & Life Satisfaction Job Satisfaction Salary and Benefits Upward Striving Working Conditions Autonomy Salary and Benefits Upward Striving Working Conditions Autonomy COPY RIGHT 2012 Institute of Interdisciplinary Business Research 684