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EFFECT OF EMPLOYEES JOBS SATISFACTION ON ORGANIZATIONAL PRODUCTIVITY
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The issue of employee job satisfaction has been momentous in recent times to the development and accomplishment of organizational productivity. This research study aims at investigating the factors that affect employee job satisfaction at Skye Bank Plc, Eruwa. Specifically, the study seeks to investigate the influence of talent development on employee satisfaction, to establish the extent to which reward influences employee satisfaction; establish the influence of organizational structure on employee satisfaction and investigate the influence of organizational commitment on satisfaction of employees. Theoretical and empirical studies will be reviewed to assess the factors likely to affect employee retention The study will adopt descriptive research survey, A sample size of 21 employees will be taken for the research study, representing an entire population of staff. Data for the study will be collected primarily through semi-structured questionnaire.
1.1 Background to the Study
Job satisfaction can be defined as psychological state of how an individual feels towards work, in other words, it is people?s feelings and attitudes about variety on intrinsic and extrinsic elements towards jobs and the organizations they perform their jobs in. The elements of job satisfaction are related to pay, promotion, benefits, work nature, supervision, and relationship with colleagues (Mosadeghard, 2003). Employee?s satisfaction is considered as all-around module of an organization?s human resource strategies. According to Simatawa (2011) Job satisfaction means a function which is positively related to the degree to which one?s personal needs are fulfilled in the job situation. Kuria (2011) argues that employees are the most satisfied and highly productive when their job offers them security from economic strain, recognition of their effort clean policy of grievances, opportunity to contribute ideas and suggestions, participation in decision making and Managing the affairs, clean definitions of duties and responsibilities and opportunities for promotion, fringe benefits, sound payment structure, incentive plans and profits sharing activities, health and safety measures, social security, compensation, communication, communication system and finally, atmosphere of mutual trust respect. Job satisfaction means pleasurable emotional state of feeling that results from performance of work (Simatawa, 2011)
It commences with the recruiting of right people and continues with practicing programs to keep them engaged and committed to the organization (Freyremuth, 2004). Sutherland, (2004) contends that companies with high quality human capital perform better in marketplace, and deliver higher and more consistent returns to shareholders, than companies with mediocre workers. Sustainable competitive advantage requires satisfaction of employees for retention to the knowledge base of an organization. This knowledge is often tacit and hard to transit between employees. Competitive companies worldwide rely on their employees to provide innovative, advantageous and original solutions to problems the company may have. Employees are deemed to be part of the intangible assets of an organization. They are a precious commodity that forms a significant part of an organization?s value. Employee job satisfaction is supremely important in an organization because it is what productivity depends on. If your employees are satisfied they would produce superior quality performance in optimal time and lead to growing profits. Satisfied employees are also more likely to be creative and innovative and come up with breakthroughs that allow a company to grow and change positively with time and changing market conditions. Employee satisfaction is becoming more challenging for companies including those in the telecommunication industry due to a number of factors such as availability of the right talent in some fields, manager-employee relations, competition, differences in the level of employer-employee expectations, the high cost associated with hiring new talents, among others. Employer? need for strategic effort directed at satisfying current employees is now urgent than ever to improve retention rates and decrease the associated costs of high turnover. Voluntary turnover is a huge problem for many organizations (Mitchell et al., 2001).
Job satisfaction is an important attribute of all labour market matches, as it is a useful summary measure of utitlity at work. The effects of job satisfaction on various labour market outcomes have been widely explored in the literature (e.g. Freeman 1978; Clark et al. 1998). Despite this, there are still relatively neglected areas of research. One of those concerns the effect of employees? job satisfaction on firms? performance. Job satisfaction can have a positive effect of performance, if it increases effort e.g. by reducing employee shirking and superfluous on-the-job activities. This issue has been at a high place on the policies agenda. For example, European Union argues in its Lisbon strategy that job satisfaction positively contributes to firms? performance. This is a rather provocative claims, because it implies that policies to improve job satisfaction would be beneficial for both employees and employers.
The labour market today is growing and changing fast. It is the responsibility of the leader in the organization to adapt to these changes to be able to make the organization profitable. To be able this, it is crucial to satisfy the key employees in the organization since they are the ones that drive the company forward. According to Young (2006), companies are faced with people leaving to join other companies. The average worker is changing jobs ten times between ages of 18 and 37 continuously. Young assert that one answer to this issue is to believe that you can purchase knowledge to replace what you are losing. McCrea (2001) suggests that employees today change jobs frequently and do not have the company loyalty and existed 30 years ago when your valued employees were hired. The article, ?The battle of brainpower? (2006), also states that loyalty to employers is fading therefore companies need to raise productivity by managing talent better. The hunt for talent has gone global as the globalization creates demands and opportunities for most employees.
Employees in an organization have always been key asset to their departure could have significant effect on the implementation of the organization?s business plans and may eventually cause a parallel decline in productivity. At such, employee satisfaction is important in the long-term growth and success of a company. Employee satisfaction would ensure customer satisfaction and effective succession planning (Mello, 2007). Employee satisfaction would also improve investor?s confidence, as they are concern with organization?s capacity to perform in such ways that would positively influence the value of their investment in the company, hence there is no question that uncontrolled employee turnover could damage the stability of the company.
Talent and employee job satisfaction are closely related, in that happy brain lead to creative brains. Job satisfaction and employee happiness should be a big aspiration in talent management due to its impacts on productivity, creativity and loyalty of employees. Talented employees want a clear vision of where the organization is going and an opportunity to personally grow and develop.
Talent is the natural above average ability to perform a task. This individual has the natural inclination to perform the tasks they are talented is better than others. A talent is always a skill but a skill isn?t always a talent. A skill is the ability to do something well i.e. expertise, while talent is the natural aptitude.
1.2 Statement of the Problem
Employees? satisfaction is increasing in importance, as the competition for talent is high and still growing. It is not 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 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 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 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 research study seeks to investigate the factors that may influence employee satisfaction and how these factors affect retention of employees.
The current level of job satisfaction is quite low. With the constant changes in ownership and resultant management teams which always comes with a myriad of new ways of doing things. Most of these new strategies have not performed well in the market because the employees themselves do not believe in them and will therefore not perform optimally to meet these goals.
1.3 Objectives of the Study
1.3.1 General Objective
The general objective of the research is to examine the relationship between job satisfaction and employees performance and to analyze how these affect employees in an organization.
1.3.2 Specific Objectives
Specifically, the research seeks to:
(i) Investigate the effect of talent development including training and development on job satisfaction and performance at Skye bank.
(ii) Probe the extent to which reward and recognition influences job satisfaction and performance at Skye bank.
(iii) Explore the influence of availability of career advancement, promotions and new job opportunities on job satisfaction and performance at Skye bank.
(iv) To study the influence of organization structure and organization policies on job satisfaction and performance at Skye bank
(v) To investigate the influence of organizational commitment, physical working environment and involvement of employees in decision making on job satisfaction and performance at Skye bank.
1.4 Research Questions
The study will be based on the following research questions:
(i) How has talent management& development influenced job satisfaction levels at Skye bank
(ii) How has reward and recognition influenced employee satisfaction in an organizational productivity?
(iii) Describe how organizational structure has influenced employee satisfaction at Skye bank?
(iv) How does organizational commitment influence satisfaction of employees at Skye bank?
1.5 Significance of the Study
To an organization as a whole, the findings and results of the study will provide a more reliable in-depth understanding of the factors that affect employee satisfaction and to help shape the future policy formulation of the organization. The data provided will assist in monitoring the organization achievement towards the millennium goals as well as vision 2030 objectives. To the management of Skye bank, the findings are expected to provide answers to the fundamental question of while employees stay and what would cause them to leave and to help the company formulate appropriate retention policies and strategies to enhance employee satisfaction and company performance and productivity. To researchers, the result of the study will serve as literature to throw more light on the factors that may affect employee satisfaction. The outcome will further research on the topic.
1.6 Scope of the Study
This research work focuses particularly on the effect of employees? job satisfaction on organizational productivity using SKYE BANK, PLC as a case study.
1.7 Definition of Operational Terms
Employees: A person in the service of another under contract of hire, express or implied, oral or written where the employer has the right or power to control and direct the employee in the material detail on how the work is to be performed (Arthur, 1995).
Satisfaction: The attitudes and feelings people have about their job. It is the degree to which an employee has positive emotions towards the job role.
Organization: Refers to a social arrangement which pursues collective goals, controls its own performances and has boundary separating it from its environment (Harrison, 2005).
Productivity: A measure of how well resources are brought together in organizations and utilized for accomplishing a set of results.
Management: The act of ruling and controlling a business or similar organization.
Reward: Anything given by organizations to employees in response to their contribution and performance. It may be financial or non-financial reward.
Performance: The act or process of performing a tax, and actions
Achievement: A thing that somebody has done successfully, especially using their own effort and skill.
Globalization: The fact that different economic systems around the world are becoming connected and similar to each other because of the influence of large.
1.8 Historical Background of the Study
It is no longer news that Skye bank recently acquired Main Street Bank, formerly Afri Bank of Nigeria. What is news is whether this is going to be Nigeria?s newest mega bank? It was late literary giant, Prof Chinua Achebe stated that in his novel, Things Fall Apart that a chick that will grow into a cock will be spotted the very day it was hatched.
Interestingly, the merging unit had to amicably resolve to prune to five to ensure seamless business combination, sustained strength and guaranteed returns to stakeholders, including investors, customers and employees. According to information at bank?s website, the bank has a cumulative wealth of experience spanning over 50 years, which historically makes the bank, one of Nigeria?s oldest banking institutions.
The major strength of the bank include its diverse ownership structure, quality management and staff, prudent financial management and strong reputation on service delivery. To this, the bank has added size by the acquisition of Main Street Bank, which sees it spring to being ranked among the top five banks in Nigeria by branches.
The recent history of bank shows that in 2006, Prudent Merchant Bank Limited merged with four other banks to become Skye Bank Plc. The four other constituent banks were; EIB International Bank Plc, Bond Bank Limited, Reliance Bank Limited and Co-operative Bank Plc. To the credit of the management of the bank at its take-off, that seamless consolidation exercise soon saw the bank evolve into one of the top financial institution in the country. That high score, analysts posited is set to count in favour of the bank as it takes this bold step to leapfrog contemporaries from being a tier two bank to one of the top five banks in Nigeria by number of branches.