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The Impact of Job Satisfaction, Job Attitude and Equity on Employee

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The International Journal Of Business & Management (ISSN 2321 –8916) www.theijbm.com

THE INTERNATIONAL JOURNAL OF

BUSINESS & MANAGEMENT

The Impact of Job Satisfaction,

Job Attitude and Equity on Employee Performance
Mohammed Inuwa
Graduate Assistant, Bauchi State University, Gadau, Nigeria

Abstract:
Studies conducted in the past related to employee performance adopts few variables in their studies, for instance, many
studies concentrate on job satisfaction and performance while ignoring other important aspect like job attitude and equity.
Therefore study adopts the combination of job satisfaction, job attitude and equity as the independent variable to employee
performance from previous empirical and theoretical studies. The study seeks to come up with a conceptual framework that
will serve as a basis for understanding how job satisfaction, job attitude and equity influence performance of employees in
the workplace. Based on the reviewed literature, the study concludes that there is a positive relationship between job
satisfactions, job attitude, and equity in the performance of an employee an organization.

Keywords: Employee performance, job satisfaction, job attitude, equity and organization

1. Introduction
Employee performance has always been a major challenge in organizational management. Adopting effective ways to motivate
employees to achieve and deliver higher job performance as well as increase the organizational competitiveness is the main objective
of every business organization (Lee & Wu, 2011). Employee performance is instrumental to organizational growth and profitability.
The employees are regarded as the major business resources that facilitate the daily activities and operations of an organization
(Mudah, Rafiki & harahap, 2014). Similarly, Omolayo, &Oluwafemi, (2012) asserted that organizational effectiveness and efficiency
depends on how effective and efficient the employees in the organization are. In order to achieve higher employee’s performance,
effective motivational tools should be adopted by managers of organizations as the performance of employees determine the level of
organizational performance in general.
Understanding the level of employee satisfaction and attitude towards their assigned tasks and responsibilities as well as the level of
fairness and equity between them will help managers of organization in carrying out their collective responsibilities more effectively.
Job satisfaction is seen as a combination of positive or negative feelings that workers have towards their work, when an individual is
employed in a business organization, the employee brings with it the needs, desires and experiences which determine expectations that
he has dismissed. Job satisfaction represents the extent to which expectations are and match the real awards (Aziri, 2011).
In most cases today most employees feel less satisfied with their jobs which result of poor job attitude, thereby affecting the overall
performance of the organization. Those who perceive justice in their organization are more likely to feel satisfied with their job and
feel less likely to leave and feel more committed to their job (Arti, Kuldeep& Ekta, 2009).
However, such dissatisfaction and poor attitude may be as a result of a feeling of inequity among the employees. This therefore
implies that employee’s performance can be determined by level of employee satisfaction on the job which will serve as a catalyst on
the employee attitude resulting to equity and fairness. According to (Vandenabeele, (2009) positive emotions such as a feeling of
satisfaction would bring about higher performance, especially when regarding performance as being broader than simple task
performance. It's also pertinent to note that good pay package conducive working environment and equal level playing ground among
employees can bring about a positive job attitude and their combination will also determine the performance of employees in their
workplace.
This study, however, seeks to identify the relationship between job satisfactions, job attitude, and equity on employee performance,
thereby emphasizing on their respective significance and influence on employee performance.

2. Literature review

2.1. Employee Performance

Employee job performance has always been an important concern for managers of organizations (Kelidbari, Dizgah, & Yusefi, 2011).
Similarly, employee performance is an important building block of an organization therefore, factors that lay the foundation for high

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performance must be analysed critically by the organizations for them to succeed (Abbas &Yaqoob, 2009). Also, Wu &Lee, (2011),
defined job performance as employees’ overall performance in meeting the expected quality and achievement of tasks under the policy
and time requirements of the organization. Similarly Liao, Lu, Huang & Chiang (2012), define job performance as the benchmark for
promotions, redundancy, rewards, punishments, reviews and salary adjustments. Ahmad &Shahzad (2011), also argue that employee
performance represents the general belief of the employees about their behaviour and contributions towards the success of the
organization.
Anitha (2013) defines employee performance as an indicator of financial or non-financial outcome of the employee that has a direct
relationship with the performance of the organization and its success and further mentioned working environment, leadership, team
and co-worker relationship, training and career development, compensation programme, policies and procedures and workplace
wellbeing as well as employee engagement are major factors that determine employee performance. However, a study conducted by
Alagaraja1 & Shuck (2015), aimed to explore existing perspectives of organizational alignment and employee engagement in order to
understand factors associated with enhancing individual performance argue that employee performance can be enhanced through
training and development.
Based on the above the above definitions therefore, employee performance can be referred to as the extent in which an employee carry
out assigned duties and responsibilities. It entails the level of efficiency and effectiveness of an employee towards accomplishing
assigned task.
Furthermore, Thomas & Feldman, (2010) adopted measures of employee performance as core task performance, which includes in-
role performance, safety performance, and creativity, followed by citizenship performance, categorized into both targets-specific and
general organizational citizenship behaviours and lastly, counterproductive performance that consists of general counterproductive
work behaviours, workplace aggression, substance use, tardiness, and absenteeism.
Moreover, employee performance brings about innovation performance and firm performance as a whole, in such a way successful
effort of satisfied, motivated, and committed human resources generate innovative ideas for new products or services and improve
quality performance, operating performances, and customer satisfaction directly (Sadikoglu & Zehi2010).
Employee performance is, therefore, paramount in order to achieve organizational objective. The employee needs to be motivated
accordingly in such a way that it will bring about higher satisfaction thereby enhancing employee and organizational productivity.

2.2. Job Satisfaction and Employee Performance

Job satisfaction is one of variables of paramount importance in the field of organizational behaviour and psychology, it simply means
one’s general attitude to the job (Chen, Zhao & Liu, 2012). Job satisfaction represents one of the most daunting areas being faced by
today’s managers when it comes to managing their employees. Also, Tansel & Gazîoğlu, (2010) further stated that job satisfaction is a
primary policy priority in any organization. Previous studies have demonstrated an unusually large impact on the job satisfaction on
the motivation of workers, while the level of motivation has an impact on productivity, and hence also on performance of business
organizations (Aziri, 2011).
Job satisfaction is defined by Robbins & Judge, (2013) as “a positive feelings about one’s job resulting from and evaluation of its
characteristics. Armstrong, (2006) defines job satisfaction to the attitude and feelings individuals towards their work. While positive
and favourable actions towards the job shows a level job satisfaction, negative and unfavourable attitudes towards the job indicate job
dissatisfaction. Job satisfaction is a worker’s sense of success and achievement on the job. It is perceived to be directly linked to
productivity as well as to personal well-being.
Job satisfaction implies doing a job one enjoys, doing it well and being rewarded for one’s efforts (Aziri, 2011). Job satisfaction plays
a critical role in relations to employee performance, and to some degree on employee’s wellbeing and to the organizations in relations
of its productivity, efficiency, employee relations, absenteeism and turnover (Dugguh & Dennis, 2014).Job satisfaction can, therefore,
be seen as the point in which an employee feels contented and fulfilled with assigned duties and role as well as the laid down policies
of the workplace as it relates to a promotion, salaries, training, leave and other rewards.
Rose, Kumar, & Pak, (2011) in a study aim to examine the relationship organizational learning, organizational commitment, job
satisfaction and work performance using a sample of public service managers in Malaysia conclude thatorganizational learning was
found to be positively related to organizational commitment, job satisfaction, and work performance. Similarly, Similarly, Raza,
Rafique, Ali, Mohsin, & Shah, (2015) also conduct a study with the objective of examining the connection between job satisfaction
and sales person performance with adaptive selling behaviour of organizations, reveals that that there is a strong association of sales
person performance and job satisfaction.
Therefore, Job satisfaction can be considered as one of the major factors when it comes to efficiency and effectiveness of employees.
In reality the new managerial paradigm which makes a necessity that employees should be treated and considered primarily as human
beings that have their own wants, needs, and personal desires are a very good indicator for the importance of job satisfaction in
contemporary companies. When analysing job satisfaction the logic that a satisfied employee is a happy employee and a happy
employee is a successful employee (Aziri, 2011).

2.3. Job Attitude and Employee Performance

Job attitudes play a vital role and function in influencing the work behaviours of employees’ in organizations. Therefore, the need to
understand, measure, and enhance employee attitudes is significant for the organizations of today. As individuals have personalities,
so, too, do organizations. Organizations, like people, can be categorised and viewed as rigid, friendly, warm, innovative, conservative

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or otherwise. Such traits, as well, can serve as factors to predict attitudes and behaviours of the people within these organizations
(George & Jayan, 2013).
Liao et-al, (2012) define job attitude as be a set of attitude and thoughts toward work, and such attitudes and thoughts are reflected in
the form of work involvement and organizational commitment. Based on this definition, therefore job attitude can be viewed as
actions and inactions of employee towards their work. Josephat & Ismail, (2012) in a study aimed at measuring job and work attitude
of an employee in an organization, found that there are five factors which influence employee job and work attitude. These are
satisfaction, independence, teamwork, freedom of expression and supervisory relationship.
However, in a study conducted by Liao et-al, (2012) aims to explore whether there was a significant correlation between work
values, work attitude and job performance with the moderating role of leadership of employees in the green industry in Taiwan finds
out that work attitude of employees in the green energy industry has a mediating effect on their work values and job performance.
Moreover, Pandey, Soodan, & Jamwal (2014) in an attempt to explore employee’s attitude towards job related factors in rural
intervention organizations in India finds out that there is a significant relation of employee productivity and factors which are related
to the job. A positive attitude strengthens employee performance, thereby encouraging creativity and productivity. Therefore, if
employees have more positive attitudes to the organization their productivity rises and, everything else being equal, the organization
will be more resourceful and effective (George & Jayan 2012).
Based on the above literature, one can therefore, assert that job attitude consist of a certain behaviour or action which employee
portrays in regards to his/her job and such action or behaviour may have an influence how such employee carry out assigned
responsibility thereby determining the performance of the employee.

2.4. Equity and Employee Performance

Adams' theory of equity asserts that employees strive for equity among themselves and other workers. Equity is realised when the
ratio of employee outcomes over inputs is equal to another employee outcomes over inputs (Adams, 1965). Robbins, (2013), argues
equity theory identifies that individuals are concerned not only with the total amount of rewards they receive for their efforts, but also
with the connection of this amount to what others collect. They make a verdict as to the relationship between their inputs and
outcomes and the inputs and outcomes of others. Equity theory envisages that employees gauge the fairness of rewards by matching
outcomes with inputs. Outcomes consist of salary, base pay, incentives, benefits, working conditions, or anything received in
exchange for services. Inputs comprise education or expertise, effort expended, and other contributions employees believe should be
rewarded (Day, 2015).
In a study conducted by Aidla, (2013) aimed at examining how perception of negative inequity at work influence individual behaviour
at work adopted fairness, unfairness and situation as indicators for measuring inequity. However, the study concludes that employees
change their outcome when they experience inequity which can result in decreased performance. In most cases, if managers simply
talked with their subordinates and explained what was needed at a given time to get a certain level of performance, or how a given
amount of monies was dispersed, their employees would be more likely to comprehend and neither reduce their output nor intend
leaving the organization (Bell & Martin, 2012).
Sharma, Borna & Steams, (2010) suggests that if employees value fair treatment by the organization and perceive that they are indeed
treated fairly, they will be committed to the organization and thus feel obliged to reciprocate by providing something of value in
return. Similarly, Nadiri, Tanova, (2010) suggest that the fairness of personal outcomes that employees receive may have more impact
on their performance and turnover intentions.
Gino and Pierce (2009) opined that distress in a perceived inequity can lead to a different emotional reaction that motivate individual
to dishonestly favour or hurt others which further shows that negative inequity may produce feelings of envy towards referent other,
and these feelings, might motivate individual to hurt the referent other through dishonest behaviour. Conversely, positive inequity,
may generate guilt that, in turn, might motivate the individual to dishonestly help the referent other. This, however, shows that both
over reward and under reward create an emotional feeling between workers in an organization.
Therefore, equity emphasizes on the need for an employee to be given fair treatment and judgement concerning contributions and
effort made by the employee towards attaining overall organizational objective. This implies that such perceived equity may tend to
boost the performance of the employee, thereby developing a sense of belonging in the workplace.
Therefore, to summarise equity in relation to employee performance, one can assert that what employee perceived as equity that is
fairness in the workplace might enhance employee performance while on the other hand what is perceived as unjust and unfair may
hinder employee performance.

2.5. Theoretical Framework

Victor H. Vroom’s Expectancy Theory (1964) is adopted in order to support the literature for the study. Expectancy theory argues that
the strength of one's propensity to behave in a certain way depends on the expectation of the outcome the behaviour or action as well
as how attractive its (Robbins et-al, 2013). Vroom's theory is centred on the conviction that employee effort will result in performance
and performance will lead to rewards (Vroom, 1964).
However, expectancy theory is a cognitive process theory of motivation that is based on the idea that employees perceive that there are
links between the effort they put forth at work, the performance they achieve from that effort, and the rewards they obtain from their
effort and performance, (Lunenburg, 2011). Further, Robbins & Judge (2013) suggested that expectancy theory focuses on three
relationships that includes, effort- performance relationship, performance- reward relationship and personal goal relationship.

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Therefore, expectancy theory supports the assertion that the employee performs based on an expected outcome and depending on the
outcome of such performance, the level of job satisfaction is determined. This implies that if an employee performance and expected
result, it will enhance his/her job satisfaction, thereby increasing the level of performance of an employee. Also, as mentioned
employee effort on the job determine performance and in such situation the employee expects a reward from the organization which
will determine the level of satisfaction. By implication higher rewards result in higher job satisfaction and increased performance
level, whereas lower rewards demoralises an employee, thereby resulting to job dissatisfaction which will bring about decreased
performance.
The level of satisfaction or dissatisfaction derived from a particular job also has a great influence on employee behaviour. This implies
that employees whose effort and performance meet their expected reward may tend to have a higher job satisfaction and positive job
attitude, on the other hand employees whose effort and performance does not meet their expected reward, develop a negative
behaviour which can hinder their performance.
Furthermore, empirical studies conducted by (Vandenabeele, (2009), conclude that there is positive relationship between job
satisfaction and employee performance. Aidla, (2011), in an empirical paper aimed at finding out how inequity influence behaviour
suggests that there is a positive relationship between equityand employee performance. Another study conducted by Liao et-al, (2012)
using an empirical approach also finds out that there is a positive relationship between job attitude and employee performance.
Based on the above theory and empirical studies conducted, the preposition of the study is thus presented below.
 Preposition 1: There is a positive relationship between job satisfaction and employee performance.
 Preposition 2: There is a positive relationship between job attitude and employee performance.
 Preposition 3: There is a positive relationship between equity and employee performance.

2.6. Research Framework

Independent variable Dependant variable

Job Satisfaction
Employee
Job attitude performance

Equity

Figure 1
Source: (Vandenabeele (2009), Aidla (2011) & Liao et-al (2012)

3. Conclusion and Discussion

Employees with high level of performance tend to be more efficient and effective in carrying out their respective roles. They embrace
their work and workplace wholeheartedly and render services required by them timely. This, however, shows that both their intrinsic
and extrinsic values has been met by the organization.
Further, it is generallybelieved that employee performance can be determined by the employee’s level of job satisfaction, attitude on
the job as well as perceived fairness as asserted in the study of (Vandenabeele, (2009), & Liao et-al, (2012)). Such factors are
interrelated to one another in such a way that one may lead to the other, for instance, higher level of satisfaction on the job may
eventually result to good or positive job attitude which will result in higher performance. Likewise, in a situation where by an
employee perceives equity in the workplace, it may also lead to higher performance on the other round if the employee perceives
inequity or unjust treatment by the employer than it may tend to result to decrease in productivity of the employee (Aidla, 2011).
The study, therefore, concludes that the employee should be given top priority in organizational decision making due to the fact that
they have a very important role to play in achieving organizational goals and objectives. Fairness should consider when it comes to
issues like promotion, pay, recognition, and other important factors, so that employers will remain motivated thereby increasing
productivity level.
Furthermore, the study will make managers and organizations to further recognize the significance of employees in the workplace and
ensure that employees are satisfied with their jobs through just and fair treatment that will bring about positive job attitude.
However, one of the limitations of the study is that it did not adopt any empirical measures to weigh the reliability and validity of the
findings. Therefore, further studies can use empirical analysis to test the validity and reliability of the concepts discussed in the study.

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