Impact of motivational factors on employee’s job satisfaction

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Research Article

ISSN 2229 – 3795

Impact of motivational factors on employee’s job satisfaction- A study on some selected organization in Punjab, India Navdeep Kumar 1, Pankaj Garg2 ACS Pvt. Ltd, India [email protected]

ABSTRACT

This paper examined the influence of motivational factors (salary, facilities and promotion) on employees’ job satisfaction in some selected organizations of Punjab, India. Sample size consists of 197 respondents who filled the questionnaire. The data collected was subjected to appropriate descriptive statistical analysis followed by inferential statistics on the variables. The results indicate a statistical significant relationship between the three independent variables (salary, facilities and promotion) with dependent variable i.e. job satisfaction. The results also depict that among independent variables, salary package is the most important and more influential variable. The research reveals that management can make the use of different strategies & policies to satisfy and motivate their employees. Keywords : Employees, job satisfaction, motivation factors, productivity. 1. Introduction

Employee is the most important resource of an organization. The failures or success of an organization can be summed up to the inputs initiated from its human resource. The factors that initiate the performance of employees are matter of key interest for researchers. It has been truly trul y found out o ut that highly satisfied satisfi ed & motivated motiv ated employees following a pattern of daily work management have been the core strength of the most successful organizations. The job satisfaction has got tremendous attention in organizational research. Human resource management’s function is to assist the general manager or the top management in keeping the employees satisfied with their jobs. If employees are not satisfied, they will not perform to expected norms. Kalim ullah Khan et.al (2010) et.al (2010) noted that workplace dissatisfaction and poor performance may lead to high employee turnover in an organization particularly in less developed countries where little opportunities are available to people to join other organizations, but it may affect employee’s performance adversely. Schermerhorn (1993) defines job satisfaction as an affective or emotional response towards various aspects of an employee’s work. The author emphasizes that likely causes of job satisfaction include status, supervision, co-worker relationships, job content, remuneration and extrinsic rewards, promotion and physical conditions of the work environment, as well as organizational structure. The most-used research definition of job satisfaction is by Locke (1976), who defined it as “a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences”. Implicit in Locke’s definition is the importance of both affect, or feeling, and

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Impact of motivational factors on employee’s job satisfaction- A study on some selected organization in Punjab, India Navdeep Kumar, Pankaj Garg

cognition, or thinking. When we think, we have feelings about what we think. Conversely, when we have feelings, we think about what we feel. Cognition and affect are thus inextricably linked, in our psychology and even in our biology. Thus, when evaluating our jobs, as when we assess most anything important to us, both thinking and feeling are involved .Satisfaction level of the employees working as a team is very important because it directly affects their performance on the job. Identification of these factors accurately becomes the key to retain and raise the satisfaction level of the employees (James, 1996). The controversy in the literature, regarding the relation-ship between level of job satisfaction and gender, leads the following hypothesis: H0: There is no significant difference between men and women’ job satisfaction level. H1: There is a significant difference between men and women job satisfaction level. H2: Autonomy has significant impact on job satisfaction “Satisfied employees are productive employees.” “Satisfied employees are not productive employees.” We hear these conflicting statements made by HR professionals and managers in organizations. There is confusion and debate among practitioners on the topic of employee attitudes and job satisfaction— even at a time when employees are increasingly important for organizational success and competitiveness. Therefore, the purpose of this study is to provide greater understanding of the research on this topic and give recommendations related to the major practitioner knowledge gaps. 2. Literature review

According to Petcharak (2002 cited in Kalim ullah Khan et.al 2010) one of the functions of human resource manager is related to ensure employees' workplace motivation. The human resource manager's function should be to assist the general manager in keeping the employees satisfied with their jobs. Another goal in organization is the goal for the services manager is to develop motivated employees and encourage their morale regarding their respective works. The employee work morale, such as supervisors, peers, organization, and work environment can be defined in a sense that the employee has the feeling and be conscious about all aspects of the job. The performance is poor if the employee is not satisfied and happy. Workplace dissatisfaction often leads organization and its employees' poor performance. On reaching the understanding and believing that people (employees) are naturally motivated, an organization simply provide the environment for their motivation to be enhanced and improved (Baron. 1983). It means that an organization is a better environment and working atmosphere provider, it only needs to believe that the people have the motivational behavior. Lawler (2003) noted that different theories questioning why people prefer certain careers, why they seek particular rewards and why they feel satisfied or dissatisfied with their work and rewards. These are some of the resonating questions that create so many assumptions and hypotheses to be researched. It is important to review the literature on motivation clarify the issues. According to Coster (1992 cited in Sempane, Rieger & Roodt, 2002), the work itself could have an effect on the total quality of life of the employee. Schneider and Snyder (1975 cited in Sempane et al., 2002) conclude job satisfaction is an individual’s personal assessment of ASIAN JOURNAL OF MANAGEMENT RESEARCH Volume 2 Issue 1, 2011

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conditions prevalent in the job, thus evaluation occurs on the basis of factors, which they regard as important to them.

Ivancevich et al. (1997) defined job satisfaction as feeling and perception of a worker regarding his/her work and how he or she feels himself well in an organization. According to Davis and Newstrom (1999) job satisfaction is an experience which has various aspects. The most significant aspects are those which are relevant to working conditions and the nature of work. Low job autonomy, low job security, low wages and lack of expectation for promotion negatively affect job satisfaction of employees (Guest 2004 and Silla et al. 2005). lise m. saari and timothy a. judge (2004) conducted the research to discover the effects of employee attitudes and job satisfaction on organizational measures, such as customer satisfaction and financial measures. Greater insights on the relationship between employee attitudes and business performance will assist HR professionals as they strive to enhance the essential people side of the business in a highly competitive, global arena. Garrido et al. (2005) conducted the research to discover the factors that determine the job satisfaction of sales managers. The effect of HRM practices is analyzed by using the model which was already employed by an empirical study on Spanish industrial firms. The study concludes that human resource management practices based on compensation type, compensation level and job design in terms of autonomy and resources are the essential determinants of sales managers’ job satisfaction. Patel and Cardon (2010) suggest that having a group culture is a key factor in the extent to which leadership behavior is adopted, as well as how effective adopting HRM practices are for increasing labor productivity and job satisfaction. Gogoi (2005) find that the importance of work spiritually is consistently growing as the spiritual cause leads to strategic benefits to the business unit and due to the significant contribution of team work spiritually. Ahmed Imran Hunjra et al . (2010), this study aimed at measuring the effect of human resource management practices like autonomy, leadership behavior and team work on job satisfaction. It attempts to measure the importance of each factor on level of job satisfaction. It also examines the difference of level of job satisfaction between male and female employees. Findings of the study indicate that there is a positive relationship between autonomy, leadership behavior and team work environment and job satisfaction. However, leadership and teamwork environment influence more than autonomy on employees’ job satisfaction. The results also depict a significant difference of level of job satisfaction between male and female emplo yees. Rehman et al. (2006) during research found significant differences among male and female employees’ job satisfaction level in Pakistani based service organization. According to their reports service based industry is going under tremendous changes for the last few years in Pakistan. Due to these changes not only their transactions are increasing but their range of services is also expanding. As a result different sectors of service industry such as banks, educational institutes and telecommunication firms are experiencing swift turnover. 3. Problem Statement


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The management of employees at work is an integral part of management process. To understand the critical significance of employees in the organization is to recognize the importance of employee’s satisfaction. Some leaders do not appreciate the fact that employees have to be satisfied to ensure they do honestly & enthusiasm so that higher productivity is targeted. Because of the prevailing situation is Punjab, India, where the supply of labor is greater than its demand. Most employers don’t believe much in effective employee’s satisfaction and motivation to ensure higher performance. 3.1 Purpose of Study

This study concerns at investigating the influence of salary, facilities & promotion on employee’s satisfaction. The specific objectives of study are to determine joint and relative contribution of the independent variables (Salary, facilities and promotion) to employee’s satisfaction level and determine the significant relationship that exists between independent and dependent variable. 4. Research Methodology 4.1 Sample

The sample of the study was consisted of 197 employees working in some selected organizations of Punjab, India. The survey was completed within three months from April to July, 2011. The questionnaire was self-administered and was distributed among the 197 respondents. Before giving the questionnaires, all questions were explained to the participants so they could easily complete the questionnaire and the relevant results. Only one questionnaire was given to each respondent. 4.2 Research Measurement Instrument

The research instrument titled “Employee’ job Satisfaction & Motivation Questionnaire” (EMJOSAMOQ) was used to gather data for the study. Section “A” of the research questionnaire describes respondents’ background information, categories include: gender, age, marital status, and education level. Section B, on the other hand describes possible job satisfaction variables. The questionnaire was made up of 4 items in section ‘A’ and 10 items in section ‘B’. Respondents were asked to rank some possible items on job related sources of satisfaction and motivation from the most important 1, 2, 3… to the least important 8, 9 and 10. 4.3 Data analysis

Statistical Package for the Social Sciences (SPSS) version 17 is used in this research for the purpose of analysis and presentation of results. Descriptive statistics based on frequency tables and graphs used to provide information on demographic variables. The descriptive statistics used in the present study are based on tables of frequency distribution and graphical presentation for the responses of work motivation with respect to biographical information of the respondents. The relationship between motivational factors (Salary, facilities & promotion) and employee work motivation in some selected organizations of Punjab, India. Analysis of Variance (ANOVA) is a statistical technique used to analyze data from designs that whether there are ASIAN JOURNAL OF MANAGEMENT RESEARCH Volume 2 Issue 1, 2011

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significant differences in job satisfaction based on the biographical characteristics of the sample. When significant mean differences among the groups are indicated by the F statistic, there is no way of knowing from the ANOVA results alone as to where they lie. The Scheffe Post Hoc test is necessary to find out which pairs of means differ. This procedure of multiple comparisons involves computing an F value for each combination of two means. 4.4 Findings & Results

The results of the descriptive analyses are presented first, followed by the inferential statistical analysis. 4.5 Demographic Information of the Participants (N=197) Table 1: Frequency distributions of respondents with respect to their gender Gender of participant Gender

Frequency

Percent

Valid Percent

Cumulative Percent

Female

43

21.8

21.8

21.8

Male

154

78.2

78.2

100.0

Total

197

100.0

100.0

Table 1 indicates the gender allocation of the sample of respondents from the organizations at which the research was conducted. As can be seen from the table, the majority of the sample (n = 197), out of which or 78.2% was male, while the remaining 21.8% (n = 43) comprised of female respondents. Table 2: Frequency distributions of respondents with respect to marital status Marital Status of participant Frequency

Percent

Valid Percent

Cumulative Percent

Married

133

67.5

67.5

67.5

Single

64

32.5

32.5

100.0

Total

197

100.0

100.0

The majority of the sample (67.5%) was married while 32.5 % was single as shown in table. Table 3: Frequency distributions of respondents with respect to age Age of participant Age groups

Frequency

Percent

Valid Percent

Cumulative Percent

21 - 25

8

4.1

4.1

4.1

26 - 30

42

21.3

21.3

25.4

31 - 35

77

39.1

39.1

64.5

36 - 40

43

21.8

21.8

86.3

41 - 45

20

10.2

10.2

96.4

46+

7

3.6

3.6

100.0

Total

197

100.0

100.0


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The age of the participants were divided into six groups. Table 3 shows that majority of the sample (39.1%) were of age 31-35 followed by 21.8 % who were from age group of 36 - 40, 21.3% were from 26-30, 10.2% were of age 41-45, 4.1% were of age 21-25 and only 3.6 % above 46 age.

Table 4: Frequency distributions of respondents with respect to education level Education level of participant Frequency

Percent

Valid Percent

Cumulative Percent

14

16

8.1

8.1

8.1

16

77

39.1

39.1

47.2

18

89

45.2

45.2

92.4

20

15

7.6

7.6

100.0

Total

197

100.0

100.0

The respondents’ education level were categorized, their qualification levels were divided into four groups i.e. 8.1% were of 14 years of education, 39.1% were of 16 years of education, 45.2% were of 18 years of education and only 7.6 % were of 20 years of education. It shows that majority of the employees were post-graduate i.e. 45.2%. 4.6 Results of the Work Motivation Questionnaire

Descriptive statistics in the form of arithmetic means and standard deviations for the independent variables and dependent variable for the respondents were computed and presented in table 5. Table 5: Descriptive statistics of motivational factors and employee job satisfaction Variable Salary Facilities Promotion Employee Job Satisfaction

Mean 3.78 3.21 2.67 3.61

Standard Deviation .62 .63 .64 .63

Table 5 shows that the means for the salary, facilities and promotion ranged from a low of 2.67 to a high of 3.78. Results of the descriptive statistics in terms of arithmetic mean and standard deviation show that staff in the sample are relatively influenced, the mean values for all the variables are relatively high. Above mean values of independent variables and dependent variables show that they are influenced by the salary, facilities and promotion they receive and mean value for benefits compared to other variables’ values shows that they are less motivated by promotion. Mean value for employee job satisfaction is 3.61 which shows that employees of selected organizations of Punjab, India are influenced overall. 4.7 Inferential Statistics

In this section the results of the inferential statistical techniques used in the study are presented. An analysis of Variance (ANOVA) was applied to see the differences based on biographical variables and multiple regressions was applied to see that which among the three ASIAN JOURNAL OF MANAGEMENT RESEARCH Volume 2 Issue 1, 2011

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independent variable is most important. Based on the results obtained from the research, conclusions are drawn. 4.7.1 Analysis of Variance (ANOVA)

Analysis of variance was applied to know whether there are differences in satisfaction level of employees based on the biographical characteristics of the sample. The analysis of variance F-test is used to test the hypothesis that several group means are equal. However, the F test or ANOVA is not able to tell us which means are different from which other means. The Scheffe’s post hoc test of multiple comparison procedure is applied to find which pairs of means differ. Table 6: ANOVA: Differences in employee job satisfaction based on gender Gender Male Female

M 3.23 2.52

S .73 .56

N 154 43

F 3.42

P < 0.05

Results of ANOVA in above table show that there is a significant mean difference in the job satisfaction by male and female employees (p < 0.05). Females reported lower levels of job satisfaction as can be seen in above table (Mean = 2.52, s =.56) than males (Mean = 3.23, s = .73) on the basis of satisfaction factors ( Salary, Facilities and promotion ) Table 7: ANOVA: Differences in employee job satisfaction based on marital status Marital status Single Married

M 2.23 3.12

S .36 .51

N 64 133

F 3.13

P < 0.05

A significant mean difference was found in the job satisfaction levels of employees based on their marital status. As can be seen in above table that unmarried employees reported lower level of job satisfaction followed married employees. Table 8: Mean values of job satisfaction level based on age N

Mean

Std. Deviation

21 - 25

8

2.2500

.70711

26 - 30

42

2.4048

.62701

31 - 35

77

2.5714

.61620

36 - 40

43

2.5349

.54984

41 - 45

20

2.9000

.78807

46+

7

3.1429

.69007

Total

197

2.5685

.64809

Table 9: ANOVA: Differences in job satisfaction based on age.

Between Groups

Sum of Squares

df

Mean Square

F

Sig.

6.494

5

1.299

3.271

.05


678


Within Groups 75.831

191

Total

196

82.325

.397

From the above table 9 , it is found out that there were significant differences among groups on .05 level (F=3.271, p <.05) on the basis of age. The significant ANOVA result indicates that there are differences in the means, but it does not tell us which means are different from which others. In order to determine in which groups there were significant differences, A Scheffé Test was applied and result is reported in the following tables. Table 10: Scheffe Hoc Test: Mean differences in job satisfaction level based on age

(J) (I) Age Age

Mean Difference (I- Std. J) Error

95% Confidence Interval Sig.

Lower Bound

Upper Bound

21 - 25 26 - 30 -.15476

.24306

.995

-.9721

.6626

31 - 35 -.32143

.23406

.864

-1.1085

.4656

36 - 40 -.28488

.24261

.926

-1.1007

.5309

41 - 45 -.65000

.26359

.303

-1.5363

.2363

46+

.32611

.192

-1.9894

.2037

.24306

.995

-.6626

.9721

31 - 35 -.16667

.12087

.862

-.5731

.2398

36 - 40 -.13012

.13670

.969

-.5898

.3295

41 - 45 -.49524

.17118

.143

-1.0709

.0804

46+

.25724

.150

-1.6031

.1269

31 - 35 21 - 25 .32143

.23406

.864

-.4656

1.1085

26 - 30 .16667

.12087

.862

-.2398

.5731

36 - 40 .03654

.11995

1.000

-.3668

.4399

41 - 45 -.32857

.15814

.507

-.8603

.2032

46+

.24874

.387

-1.4078

.2650

36 - 40 21 - 25 .28488

.24261

.926

-.5309

1.1007

26 - 30 .13012

.13670

.969

-.3295

.5898

31 - 35 -.03654

.11995

1.000

-.4399

.3668

41 - 45 -.36512

.17054

.471

-.9386

.2083

46+

.25681

.351

-1.4715

.2556

41 - 45 21 - 25 .65000

.26359

.303

-.2363

1.5363

26 - 30 .49524

.17118

.143

-.0804

1.0709

31 - 35 .32857

.15814

.507

-.2032

.8603

36 - 40 .36512

.17054

.471

-.2083

.9386

46+

.27671

.979

-1.1733

.6876

-.89286

26 - 30 21 - 25 .15476

-.73810

-.57143

-.60797

-.24286


679


46+

21 - 25 .89286

.32611

.192

-.2037

1.9894

26 - 30 .73810

.25724

.150

-.1269

1.6031

31 - 35 .57143

.24874

.387

-.2650

1.4078

36 40

– .60797

.25681

.351

-.2556

1.4715

41-45 .24286

.27671

.979

-.6876

1.1733

There is a significant mean difference in the satisfaction level experienced by employees based on their age. Scheffe’s methods provide strong evidence of a significant difference in the mean level between 21-25 and 46 & above (Table 10) Table 11: Mean values of job satisfaction level based on education level

N

Mean

Std. Deviation

14

16

3.0625

.92871

16

77

3.1719

.94554

18

89

3.1685

1.03612

20

15

2.7333

.88372

Total

197

3.1066

.98136

Table 11 indicates employees with education levels up to 20 years show lower level of job satisfaction than others employees with the 16 years educational level reported the highest job satisfaction levels (Mean = 3.1719, s = .9455 ) than employees with 14 years education (3.0625, s = . 92871) & 18 years education (Mean = 3.1685, s =. 1.03612) Table 12: ANOVA: Differences in job satisfaction based on education level Sum of Squares

df

Mean Square

F

Sig.

Between Groups

2.471

3

.824

.853

.466

Within Groups

186.291

193

.965

Total

188.761

196

ANOVA table 12 results indicated that there are significant differences among groups on .05 level (F=.853, p< .05) on the basis of education level. As ANOVA do not tell us which group is significantly different from other groups, to know which group is significantly different Scheffe test was applied and result is reported in the following table. Scheffe test in above table shows that there is a significant mean difference in the job satisfaction levels of employees based on education level. According to Scheffe’s methods there is a strong confirmation of a significant difference in the mean levels between 18 years and 20 years of education as shown in table 13. The Scheffe’s Test indicated the following results in terms of satisfaction levels of employees based on motivational factors and the biographical variables of the sample: ASIAN JOURNAL OF MANAGEMENT RESEARCH Volume 2 Issue 1, 2011

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1. Female employees reported they were less satisfied by factors. 2. Employees in the age group 21-25 showed lower level of job satisfaction than employees in the other age groups. Employees in the age group 46 and above reported the highest satisfaction level. 3. Married employees reported the lowest motivation based on rewards (salary, promotion and facilities) they received. 4. Employees with the 20 years educational level reported the lower level of job satisfaction than employees with other education level. Table 13: Scheffe Test: Mean differences in job satisfaction level based on education

(I) 14

16

18

20

95% Confidence Interval

Education (j)

Mean Difference (I-J)

Std. Error

Sig.

Lower Bound Bound

16

-.05438

.26993

.998

-.8157

.7069

18

-.10604

.26678

.984

-.8584

.6464

20

.32917

.35310

.833

-.6667

1.3250

14

.05438

.26993

.998

-.7069

.8157

18

-.05166

.15291

.990

-.4829

.3796

20

.38355

.27728

.592

-.3985

1.1656

14

.10604

.26678

.984

-.6464

.8584

16

.05166

.15291

.990

-.3796

.4829

20

.43521

.27422

.474

-.3382

1.2086

14

-.32917

.35310

.833

-1.3250

.6667

16

-.38355

.27728

.592

-1.1656

.3985

18

-.43521

.27422

.474

-1.2086

.3382

Upper

5. Conclusion

The research study explored that management can make use of different tactics strategies and policies to influence the satisfaction level of employees in work settings, but different tactics, strategies and policies would have a different motivational impact on diverse people. A motivation strategy may possibly have the power of enhancing satisfaction in one way and diminishing it in others. To make sure the success of motivational tools, it is important to consider the uniqueness of the situation and the diversity of the concerned group .It is the job of management to consider different alternatives according to situation. This study highlights various aspects necessary for satisfy employees to improve their performance. It is observed that there is direct and positive relationship between motivational factors and employee job satisfaction. It means these factors are directly proportion to employee satisfaction. The change in rewards offered to employees necessarily changes the employee satisfaction and performance of employees. The three independent variables (Salary, facilities and promotion) in this study are very important to research on by researchers and human resource managers to consider well if ASIAN JOURNAL OF MANAGEMENT RESEARCH Volume 2 Issue 1, 2011

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effective productivity is to be enhanced from the employees. This research reveals that among these factors, salary is the most influential factor for job satisfaction in the organizations of Punjab, India. 6. References

1. Hmed Imran Hunjra ,Muhammad Irfan Chani , Sher Aslam, Muhammad Azam and Kashif Ur-Rehman (2010), ‘Factors effecting job satisfaction of employees in Pakistani banking sector’, African Journal of Business Management , 4(10), pp 21572163 2. Davis K, Newstrom J (1999), Comportamiento Humano en Comportamiento Organizaciona (10th ed.), Mexico: McGraw-Hill.

el

Trabajo:

3. Garrido JM, Perez P and Anton C (2005), ‘Determinants of Sales Manager Job Satisfaction: An Analysis of Spanish Industrial Firms’, International Journal of Human Resource Management , 16(10), pp 1934-1954. 4. Gogoi P (2005), ‘A little bit of corporate soul’. http://www.businessweek.com. 5.

Guest DE (2004), 'Flexible employment contracts, the psychological contract and employee outcomes: an analysis and review of the evidence". International Journal of Management Review, 5-6 (1), pp 1-19.

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14. Schermerhorn, J.R. (1993), management for productivity (4th ed.), Canada: John Wiley & Sons, Inc. 15. Sempane, M.E., Rieger, H.S., & Roodt, G.(2002), ‘Job satisfaction in relation to Organizational Culture’, SA Journal of Industrial Psychology, 28(2), pp 23-30. 16. Shadare Oluseyi . Hammed, T. Ayo (2009), ‘Influence of Work Motivation, Leadership Effectiveness and Time Management on Employees Performance in Some Selected Industries in Ibadan, Oyo State, Nigeria’, European Journal of Economics, Finance and Administrative Sciences, 16, pp 7-17. 17. Silla I, Gracia F, Peiró JM (2005), job insecurity and health-related outcomes among different types of temporary workers, Economic and Industrial Democracy, 26, pp 89–117.


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Impact of motivational factors on employee’s job satisfaction

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