89

The Impact of Job Satisfaction on Job Performance :

An Empirical Analysis

Abstract

Employee attitudes are important to management because they determine the

behavior of workers in the organization. The commonly held opinion is that “A satisfied
worker is a productive worker”. A satisfied work force will create a pleasant atmosphere
within the organization to perform well. Hence job satisfaction has become a major topic
for research studies. The specific problem addressed in this study is to examine the
impact of job satisfaction on performance. It considered which rewards (intrinsic and
extrinsic) determine job satisfaction of an employee. It also considered influence of age,
sex and experience of employees on level of job satisfaction. In addition it investigated in
most satisfying event of an employee in the job, why employees stay and leave the
organization. Data were collected through a field survey using a questionnaire from three
employee groups, namely Professionals, Managers and Non-managers from twenty
private sector organizations covering five industries. The analysis data revealed that
there exists positive correlation between job satisfaction and performance of employees.
Key words : Job satisfaction, Rewards, Effort, Performance

１． Introduction

Attainment of a high level performance through productivity and efficiency has always
been an organizational goal of high priority. In order to do that highly satisfied work force
is an absolutely necessity for achieving a high level of performance advancement of an
organization. Satisfied worker leads to extend more effort to job performance, then works
harder and better. Thus every organization tries to create a satisfied work force to
operate the well- being of the organization. However, the total organizational
performance depends on efficient and effective performance of individual employees of
the organization. Therefore, every organization places a considerable reliance on their
individual employee performance to gain high productivity in the organization. Employee
effort is an important factor that determines an individual performance will be. When an
employee feels a satisfaction about the job, he/she is motivated to do grater effort to the
job performance. Then it tends to increase the overall performance of the organization. In
other words, a satisfied individual employee and his effort and commitment are crucial
 90 第９巻 第１号
for the successfulness of the organization. Therefore, the address research problem of
this study is that ; Is there an impact of job satisfaction on employee
performance ?
In literature, it is evidenced that there is a relationship between job satisfaction and
performance of employees. However, this study is aimed to assess the validity of this
relationship from Sri Lankan working environment. Therefore, the specific objectives of
this study are
・ To determine whether there is a positive relationship between the job satisfaction
and performance of employee.
・ To find out whether the employees derive job satisfaction from extrinsic job
rewards or from intrinsic job rewards.
・ To find out the most satisfying event of an employee in the job and why
employees stay in the job and leave the organization.
・ To identify the influence of experience, age and sex on job satisfaction of
employees.

Within this paper, it is presented the literature review related to the study, research
methodology which is applied, results and discussion, conclusions drawn from the study,
suggestions and recommendations and areas for further research.

2． Literature Review

2.1 Concepts of Job Satisfaction, Rewards and Performance

In this part it defines the major concepts involved in problem statement of the study.
These concepts are job satisfaction, performance and organizational rewards.
It is the general understanding that job satisfaction is an attitude towards job. In other
words job satisfaction is an affective or emotional response toward various facets of
one’s job. A person with a high level of job satisfaction holds positive attitudes towards
his or her job, while a person who is dissatisfied with his or her job holds negative
attitudes about the job.
Luthans (1985) quotes a comprehensive definition given by Locke. A pleasurable or
positive emotional state resulting from the appraisal of one’s job or job experience. Job
satisfaction is a result of employees’ perception of how well their job provides those
things which are viewed as important. Job satisfaction is also defined as reintegration of
affect produced by individual’s perception of fulfillment of his needs in relation to his
work and the surrounding it (Saiyaden, 1993). Organ and Hammer (1991) pointed out
that job satisfaction represents a complex assemblage of cognition, emotion and
tendencies.
From the above definitions, it is clear that job satisfaction is an unobservarable
variable. Therefore, there is no definite way of measuring job satisfaction. But there are
 The Impact of Job Satisfaction on Job Performance （ PUSHPAKUMARI ） 91
variety of ways can be identified from the current literature. A questionnaire can be used
to measure job satisfaction. In the questionnaire method, it is measured the satisfaction
with the different dimensions or facets of the job and sum of all satisfactions scores will
be taken as the overall job satisfaction (JS). JS ＝ f(Satisfaction with different facets
of job)
Almost any job related factor can influence a person’s level of job satisfaction or
dissatisfaction.
There are a number of factors that influence job satisfaction. The major ones can be
summarized by recalling the dimensions of job satisfaction. They are pay, the work itself,
promotions, supervision, workgroup, and working conditions (Luthans 1985).
Further, job satisfaction has significant managerial implications. If the job satisfaction
is high, the employees will perform better. On the other hand if the job satisfaction is low,
there will be performance problems. In examining in outcomes of job satisfaction, it is
important to breakdown the analysis into a series of specific set of variables. They are
productivity, turnover, absenteeism and other effects (accidents, grievances, physical
and mental health).
The main objective of reward programs are attract qualified people to join the
organization to keep employees coming to work and to motivate employees to achieve
high level of performance. Though the rewards are provided by the organization, they are
evaluated by the individual. To the extent that the rewards are adequate and equitable,
the individual achieves a level of satisfaction. The rewards can be broadly categorized in
to two groups, namely intrinsic rewards and extrinsic rewards. Intrinsic rewards are
psychological rewards that are experienced directly by an individual. These are defined
as rewards that are part of the job itself. (Gibson, Ivancevih and Donnely, 1991). It had
also defined as psychological reward that is experienced directly by an employee (Stoner
and Freeman, 1992). Extrinsic rewards are provided by an outside agent such as
supervisor or work group. These rewards had been defined as rewards external to the job
(Gibson, Ivancevih and Donnely, 1991). Pay, promotions, interpersonal relationships,
status and fringe benefits are some of the examples for extrinsic rewards. Responsibility,
achievement, autonomy, personal growth, challenge, complete work and feedback
characteristics of the job are some intrinsic rewards.
Performance very much depends on perception, values and attitudes. There appear to
be so many variables influencing the job performance that is almost impossible to make
sense of them. Performance is defined as a function of individual ability and skill and
effort in a given situation (Porter and Lawler, 1974). In the short run, employee’s skills
and abilities are relatively stable. Therefore, for the purpose of the study, the researcher
defines the performance in terms of effort extended to the job of an employee.
Effort is an internal force of a person which makes him or her to work willingly when
employees are satisfied with their job and their needs are met, they develop an
attachment to work or we say that they make and effort to perform better. Increased
effort results in better performances.
 92 第９巻 第１号
2.2 Job Satisfaction and Performance Relationship.
The relationship between job satisfaction and performance has been critically
assessed in a variety of organizational settings. Results of these studies have been
mixed. Cummings (1970) identified three major points of view concerning this
relationship. Satisfaction causes performance, performance causes satisfaction and
rewards cause both performance and satisfaction. All of these three views are supported
by various researches. Mirvis and Lawer (1977) produced conclusive findings about the
relationship between job satisfaction and performance. In attempting to measure the
performance of bank tellers in terms of cash shortages, their proposed arguments are
satisfied tellers were less likely to show shortages and less likely to leave their jobs.
Kornhanuser and Sharp (1976) have conducted more than thirty studies to identify the
relationship between satisfaction and performance in industrial sector. Many of the
studies have found that a positive relationship existed between job satisfaction and
performance. Katzell, Barret and Porker (1952) demonstrated that job satisfaction was
associated neither with turnover nor with quality of production. Smith and Cranny (1968)
reviewed the literature and concluded that satisfaction is associated with performance as
well as effort, commitment and intention. In the western electric studies (1966) the
evidence from the Relay Assembly test room showed a dramatic tendency for increased
employee productivity to be associate of with an increase in job satisfaction.
Porter and Lowler (1969) suggested that satisfaction will affect a worker’s effort,
arguing that increased satisfaction from performance possibility helps to increase
expectations of performance leading to rewards, Carroll, Keflas and Watson (1964) found
that satisfaction and productivity are crucial relationship in which each affects the other.
They suggest that performance leads to more effort because of high perceived
expectancy. The effort leads to effective performance, which again leads to satisfaction in
crucial relationship. David, Joseph and William (1970) suggest that the type of reward
system under which workers perform strongly influence the satisfactionperformance
relationship.
According to the above literature review and to achieve the research objectives the
following conceptualized research model (Figure 1.1) is developed. Further, Figure 1.1
shows that job satisfaction of an employee is influenced by various job related factors
and they are derived from job context and job content factors. Job content factors are
related with intrinsic rewards and job context factors are related with extrinsic rewards. A
satisfied employee can motivate to extend more effort to improve the performance.
 The Impact of Job Satisfaction on Job Performance （ PUSHPAKUMARI ） 93

Job content Job Facets Job Context

Intrinsic Rewards Extrinsic Rewards

Level of Job satisfaction

More Effort Less Effort

Level of Performance

Figure 1.1 Conceptualized Model

3． Research Methodology

3.1 Sample
For the purpose of analyzing the research problem, a total number of two hundred and
thirty seven respondents were selected from twenty organizations limited to five
industries relating to manufacturing and services industries in private sector in the
economy in Sri Lanka. Namely, Banking, Ceramics, Milk powder, Insurance and News
Paper Industries. Three employee categories were considered as Professionals, Managers
and Non Managers. All respondents are selected from random basis of the office
employees and emphasis is given to profession, organization and industry. Further
respondents were selected by representing ten percent of existing number of employees
in each category of in each organization.

3.2 Data Collection

A field survey is conducted to collect the data. Field studies are realistic because they
study the phenomenon in their natural setting. The researcher collected primary data
pertaining to attitudes related with job satisfaction, performance effort, rewards, age, sex
and experience of employees. In order to that, the principal method of data collection
was by the use of questionnaires. To obtain the required data, the questionnaire method
is chosen as it affords the advantages of speed, cost and versatility.
For the purpose of collecting data, two questionnaires were developed separately for
measuring job satisfaction and performance. In questionnaire one (job satisfaction
measuring questionnaire), item number one and two were used to determine the
relevant organization and designation (Professional, Manager and Non manager). Next
two items, age and sex were included to get personal data to determine their impact on
job satisfaction.
Item number five is consisted of twenty one statements which are developed to
measure the employee satisfaction with different facets of job. These job facets are self
esteem or respect, opportunity for growth, prestige of job inside the organization,
amount of close supervision, opportunity for independent thought, feelings of security,
 94 第９巻 第１号
opportunity for feedback on performance, prestige job outside the organization,
opportunity for complete work, opportunity to do many things, opportunity to get to
know others, freedom on the job, pay for job, variety on the job, feeling of
accomplishment, opportunity to help others, opportunity for participation, opportunity for
close friendships, opportunity for promotion, amount of respect and fair treatment. To
these

Table 1.1 Interpretation of Job Satisfaction level

Scale Classification
0-1.7 Low level
1.8-3.4 Medium level
3.5-5 High level
twenty one statements, the respondents were required to indicate their level of
satisfaction rating on the given statements by using a five-point scale ranging from very
low to very high. Further to determine which rewards (intrinsic or extrinsic) make high
level job satisfaction, the above identified job facets were divided into extrinsic and
intrinsic rewards. Extrinsic rewards will be determined through status, security, pay,
promotion, interpersonal relations and intrinsic rewards will be determined through
recognition, growth, accomplishment, challenge, autonomy, completion, feedback, and
variety of job. In measuring the job satisfaction level of employee, the used scale is
indicated in Table 1.1 based on the maximum score and lowest score.
Further, in this questionnaire item six, seven, eight and nine were used to evaluate
the experience, reasons for employee to stay in the organization or leave the
organization. These are open ended questions.
Questionnaire two was developed to measure the employee performance in terms of
effort extended to the job. Time effort, knowledge effort, responsibility, performance
targets, punctuality, absenteeism, relationship with others, loyalty, submitting new ideas,
initiativity, dependability, obedience, reliability and accuracy were the criteria identified
to measure the performance of employees degree of effort extended towards the job.
This questionnaire consists of seventeen questions to measure these variables and all
are close ended purposely so that required answers can be obtained with out much
difficulty. The respondents were required to indicate their level of effort extended to the
job on the given questions by using a five point Lickert scale ranging from great extend
to very little. In measuring the performance effort, the average score of the employees
was taken in to consideration. Table 1.2 indicated a scale for interpretation of effort of
employees to job performance.

3.3 Data Analysis

The coefficient of correlation was applied to identify the impact of job satisfaction on
performance of employees and it was calculated by using level of job satisfaction as the
X-variable (independent variable) and level of performance as the Y-variable (dependent
 The Impact of Job Satisfaction on Job Performance （ PUSHPAKUMARI ） 95
variable) for three employee categories. The statistical technique of paired comparison of
means was also used to determine the satisfaction which is derived from extrinsic
rewards or from intrinsic rewards. Further, average level of job satisfaction and
performance was determined by the summation of total scores, dividing by number of
employees in each category.

Table 1.2 Interpretation of Performance Level

Scale Classification
0-1.7 Low level
1.8-3.4 Medium level
3.5-5 High level
4． Results and Discussion

Although data were collected from 237 employees, 14 employees had to be

disregarded for analysis due to unsuccessful responding to the questionnaire. Table 1.3
shows the number of professionals, managers and non managers in the actual sample.
This total sample is consisted of 43% females and 57% males. Further age wise
classification is 20-30 yrs 34% employees, 30-40 yrs 50% employees and over 40-16%
employees.

4.1 ． Satisfaction and Performance

In category wise calculated coefficient of correlation is shown by the following Table
1.4. This table shows that the t-statistic value is greater than the t-table value for
managers and non managers. Therefore, it is revealed that there is a positive and
significant relationship between satisfaction and performance for managers and non
managers. But statistical test does not support to identify the significant relationship
between job satisfaction and performance for professionals. However, based on the
calculated correlation coefficient for all managers, it can be concluded that there is a
significant impact of job satisfaction and performance of employees in private sector
organizations.

Table 1.3 Composition of the Sample

Category Number ％
Professionals 42 19
Managers 67 30
Non-Managers 114 51
Total 223 100
Source : Survey data
 96 第９巻 第１号
Table 1.4Correlation Coefficient for Managers, Professionals and Non-Managers.
Managers Professionals Non-Managers All-Managers

X coefficient 0.570644 0.090551 0.462879 0.512714

Constant 54.59751 58.60393 49.99491 38.59141
R Squared 0.678351 0.012736 0.322646 0.47891
t-test statistic 11.7082 0.7183 9.56228 12.27615
t-Value 1.645 1.6839 1.645 1.645
t-statistic >t-table value <t-table value >t-table value >t-table
value
Source : Survey data

4.2 Satisfaction and Rewards

For the statistical analysis, based on the general opinion it is hypothesized that job
satisfaction is influenced more by intrinsic rewards than extrinsic rewards for managers
and professionals. But for non managers, it is hypothesized that job satisfaction is
influenced by more extrinsic rewards than intrinsic rewards. The results of the statistical
analysis for determining satisfaction level with rewards for three employee categories are
shown by the following Table 1.5.
According to this table t-statistic is greater than the t-table value for professionals, but
less than for managers. Therefore, it inferred that professionals derive more satisfaction
with intrinsic rewards than extrinsic rewards. Normally, professional is a highly educated
person. He/She will become a professional after only getting a substantial qualification.
Such a person may have favorable attitudes towards opportunities for growth. Therefore
they derive a greater satisfaction from intrinsic rewards. Another reason for higher level
of satisfaction with intrinsic rewards may be greater recognition which prevails in the
outside society for professionals.
Managers derive equal amount of satisfaction with intrinsic rewards and extrinsic
rewards. But the analysis data shows that non managers derive more satisfaction form
extrinsic rewards rather than intrinsic rewards. The major reason for such a situation is
that in Sri Lankan, most of lower level employees are satisfying their basic needs.
Therefore most of them may need monetary rewards rather than other rewards for
achieving their basic needs.

4.3 Level of Job Satisfaction

The average level of job satisfaction for each category was determined by the
summation of total scores, dividing by number of employees in each category. Table 1.6
shows the average level of job satisfaction for three employee categories.
The above data shows that average level of job satisfaction for manager and
professional category is high. But non manager employees are the least satisfied among
other categories. The Table 1.7 illustrates the level of job satisfaction in industry wise.
 The Impact of Job Satisfaction on Job Performance （ PUSHPAKUMARI ） 97
Table 1.7 shows that level of job satisfaction of three categories is high and medium
for the Banking Industry. Non manager employees of other industries have low
satisfaction level except Insurance industry. Managers of other industries also high
satisfaction level except Milk powder industry. Professionals in all five industries are high
and medium satisfiers. Therefore it seems to

Table 1.5 Satisfaction Level with Rewards for Professional, Managers and Non-
Managers.
Number (n) t-test statistic t-table
value
Professionals 42 3.4081 1.671
Managers 67 .03932 1.661
Non-Managers 114 2.67235 1.661
Source : Survey Data
Table 1.6 Level of Job Satisfaction of Professionals, Managers and
Non-Managers
Employee category Job Satisfaction Level Classificatio
n
Professionals 3.51 High
Manager 3.72 High
Non-Manager 1.61 Low
Source : Survey data

Table 1.7 Level of Job Satisfaction in Industry Wise

Industry Professional Manager Non-Manager
J.S J.S J.S Classificati
Level Classification Level Classification Level on
Banking 3.5 High 3.8 High 2.4 Medium
Ceramics 2.5 Medium 3.5 High 1.4 Low
Milk Powder 3.4 Medium 3.3 Medium 1.2 Low
Insurance 3.5 High 3.6 High 1.9 Medium
News Paper 3.3 Medium 3.5 High 1.3 Low
Source : Survey data

be, employees in high competitive industries are satisfied with their jobs than employees
in less competitive industries.

4.4 Level of Performance

Average level of performance for each category was calculated and analysis is shown
by the following Table 1.8. Average level of performance of employees is high for
managers and professionals, but there is a medium level of performance of non
 98 第９巻 第１号
managers. However the following Table 1.9 illustrates the level of performance in
industry wise.
The analysis shows that level of performance in terms of effort is high for manager
category for all five industries. There is also high level of performance for professional
category except milk powder industry. Under analysis of average level of job satisfaction
shows that most of managers and professionals are satisfied with their jobs. Therefore
they are willing to extend more effort to their jobs,

4.5 Most Satisfying Event of an Employee in the Job

Analysis of sample data which could be identified the most satisfying event of an
employee in the job. Table 1.10 illustrates the most satisfying event of an employee in
the job for three employee categories.
According to Table 1.10, all three categories of employees are highly satisfied, when they
have
Table 1.6 Level of Job Satisfaction of Professionals,
Managers and Non-Managers
Employee category Job Satisfaction Level Classificatio
n
Professionals 3.51 High
Manager 3.72 High
Non-Manager 1.61 Low
Source : Survey data

Table 1.7 Level of Job Satisfaction in Industry Wise

Industry Professional Manager Non-Manager
J.S J.S J.S Classificati
Classification Classification
Level Level Level on
Banking 3.5 High 3.8 High 2.4 Medium
Ceramics 2.5 Medium 3.5 High 1.4 Low
Milk Powder 3.4 Medium 3.3 Medium 1.2 Low
Insurance 3.5 High 3.6 High 1.9 Medium
News Paper 3.3 Medium 3.5 High 1.3 Low
Source : Survey data

Table 1.8Level of Performance of Professionals, Managers and Non-Managers

Employee Category Job Satisfaction Level Classification
Professionals 3.5 High
Manager 3.7 High
Non-Manager 2.9 Medium
Source : Survey data
 The Impact of Job Satisfaction on Job Performance （ PUSHPAKUMARI ） 99
Table 1.9 Level of Performance in Industry Wise
Industry Professional Manager Non-
Manager
Performance Classificatio Performance Classificatio Performance Classificati
Level n Level n Level on
Banking 3.6 High 3.7 High 2.4 Medium
Ceramics 3.5 High 3.6 High 1.4 Medium
Milk Powder 3.3 Medium 3.4 High 1.2 Medium
Insurance 3.7 High 3.8 High 1.9 High
News Paper 3.6 High 3.5 High 1.3 Medium
Source : Survey data

a feeling of accomplishment (When they finish some task successfully). It is important to

note that twelve employees have indicated that financial benefits such as an increment
have made them most satisfied.

4.6Most Important Reason for Employees to Stay in the Organization

The Table 1.11 illustrates that 33.33 percent of non manager category employees
have indicated that they stay in the organization due to no other option. Financial
benefits and autonomy is also important for this category. But for the manager category
Financial benefits are the most important. Professional category has shown a significant
variation from both of above categories. Opportunity for growth has come first with a
percentage of 30.56 and financial benefits comes second.

4.7 Why Employees Leave the Organization

The table 1.12 illustrates the reason for employees to leave the previous job, if the
present job is not his first job. From the data it is clear that employees have changed
their jobs mainly due to lack of financial benefits. But there is a variation in professional
category that growth has shared the first place with financial benefits with a percentage
of 29.41. There is evidence that opportunity for growth affect the decision of learning an
organization for professionals.

4.8 Influence of Age, Sex and Experience on Job Satisfaction

Employees are categorized according to their age and level of job satisfaction which is
shown

Table 1.10 Most Satisfying Event of an Employee in the Job

Non-Manager Manager Professionals
Reason Numbe ％ Numbe ％ Numbe ％
r r r
Accomplishment 51 48.1 27 41.5 17 47.1
100 第９巻 第１号
1 3 2
Autonomy 12 11.3 4 6.1 5 13.8
2 5 9
Interpersonal Relations 5 4.7 4 6.1 0 0.0
2 5 0
Financial 10 9.4 0 0.0 2 5.5
3 0 6
Growth 5 4.7 0 0.0 4 11.1
2 0 1
Variety 6 5.6 6 9.2 2 5.5
7 3 6
Help others 6 5.6 13 2.0 3 8.3
7 0 3
Recognition 0 0.0 5 7.6 0 0.0
0 9 0
Complete work 4 3.7 2 3.1 2 5.5
7 0 6
Feed back on performance 5 4.7 4 6.1 1 2.7
2 5 7
Total 106 100.0 65 100.0 36 100.0
0 0 0
Source : Survey data

Table 1.11Reason for Employees to Stay in the Organization

Non-Manager Manager Professionals
Reason
Number ％ Number ％ Number ％
Autonomy 16 15.69 12 18.46 5 13.90
Working condition 3 2.94 3 4.61 0 0.00
Interpersonal Relations 8 7.84 2 3.17 1 2.78
No Option 34 33.33 2 3.17 3 8.33
Job Satisfaction 6 5.88 1 1.54 1 2.78
Prestige 4 3.92 2 3.17 0 0.00
Growth 8 7.84 4 6.15 11 30.56
Financial benefits 21 20.06 29 44.61 7 19.44
Variety 2 1.96 1 1.54 2 5.56

Help others 0 0.00 2 3.17 0 0.00

Security 2 1.96 1 1.54 0 0.00

Recognition 0 0.00 3 4.61 3 8.33

Interesting work 0 0.00 1 1.54 2 5.51

Challenge 0 0.00 2 3.17 1 2.78

Accomplishment 0 0.00 2 3.14 0 0.00

Total 102 100.00 65 100.00 36 100.00

Source : Survey data
 The Impact of Job Satisfaction on Job Performance （ PUSHPAKUMARI ） 101
Table 1.12Reason for Employees to Leave the Organization
Non-Manager Manager Professionals
Reason
Number ％ Number ％ Number ％
Financial benefits 34 55.74 35 70.00 5 29.4
1
Security 6 10.00 4 8.00 2 11.7
6
Autonomy 2 3.33 1 2.00 0 0.0
0
Job satisfaction 4 6.67 2 4.00 0 0.0
0
Growth 7 11.67 2 4.00 5 29.4
1
Promotion 2 3.33 4 8.00 1 5.8
9
Recognition 2 3.33 1 4.00 2 11.7
6
Working Conditions 0 0.00 0 0.00 0 0.0
0
Challenge 0 0.00 0 0.00 0 0.0
0
Work Load 2 3.33 0 0.00 2 11.7
6
Inter per : Relations 1 1.67 1 2.00 0 0.0
0
Total 60 100.00 50 100.00 17 100.0
0
Source : Survey data
 102 第９巻 第１号

by Table 1.13. The majority of high satisfiers are in over 30 years. 51.43% of over 40
year’s age group are high satisfiers. Majority of medium satisfiers are in 30 to 40 age
group. The majority of low satisfiers belonged to the 20-30 age category. Sometimes, this
may be affected by changing needs satisfaction of employees in different age group
categories. It means employees who are in different age groups have different expected
needs and wants to achieve from their jobs. It seems to be most of young employees
expect status, challenge, growth and monetary rewards from their jobs. On the other
hand most of young employees change their jobs from short period. Therefore they have
less experience and may also affect to less satisfaction of younger employees.
The data related to the following Table 1.14, it shows that high satisfiers equally
distributed among males and females. Majority of medium satisfiers were females.
Majority of low satisfiers are in males. However the analysis data does not support to find
out significant relationship between sex and satisfaction. As the data in the Table 1.14
indicates, all employees are in the group of more than ten years experience were either
medium or high satisfiers. All of low satisfiers were in the group of less than ten years
experience. This shows that employees who have high experienced are high satisfiers
than less experienced employees. Sometimes this situation may be affected by age of
employees.
Further the analysis of data inferred that most of high satisfiers (82%) have greater
effort to attend to work. They have willingness to attend to work when ever possible. But
most of low satisfiers have (71%) have little effort to attend to work. Therefore it implies
indirectly a negative correlation between job satisfaction and absenteeism. On the other
hand high satisfiers also have (62%) greater effort to contribute more time to the present
job. They also have an attachment to

Table 1.13Influence of Sex on Job Satisfaction

Age High Medium Satisfiers Low Total

Gro satisfiers Satisfier
up No. ％
No. ％ No. ％ ％
No.

Ove 18 51.4137 48.57 0 0.0305 100.00

r 40
Source : Survey data
 The Impact of Job Satisfaction on Job Performance （ PUSHPAKUMARI ） 103

Table 1.14Influence of Sex on Job Satisfaction

High satisfiers Medium Satisfiers Low Satisfier Total
Age Group
No. ％ No. ％ No. ％ No. ％
Female 21 21.43 41 41.84 36 36.73 98 100.00
Male 24 19.24 48 38.40 53 42.46 125 100.00
Source : Survey data

Table 1.15Influence of Experience on Job Satisfaction

Experience
Satisfaction Less than 10 years More than 10 years
Number ％ Number ％
Low 84 54.17 0 0.00
Medium 50 32.26 34 40.96
High 21 13.55 29 59.04
Source : Survey data

the present job as well as to the organization. Therefore these positive attitudes of
satisfied employees tend to retain in their present jobs. It indirectly relates with less turn
over of employees.

5． Conclusion

Though there have been certain limitations in the study, the following conclusions
drawn from the study could provide some insight to the managers to improve the level of
job satisfaction of employees in private sector organizations in Sri Lanka.
・ There is a significant impact of job satisfaction on performance of employees in
private sector organizations.
・ Employees who are in higher levels tend to derive more satisfaction from intrinsic
rewards while, employees who are in lower levels tend to derive more
satisfaction with extrinsic rewards.
・ Higher level employees are more satisfiers than the lower level employees in
private sector organizations.
・ Employees who are in highly competitive industries are more satisfied with their
jobs than employees who are in less competitive industries.
・ Professionals and Managers are willing to extend more effort to the job than non-
managers.
・ Older employees are more satisfiers than the younger employees in private sector
organizations.
 104 第９巻 第１号

・ High experienced employees tend to satisfy with their jobs than the less
experienced employees in private sector organizations.
・ Sex has not significant impact on job satisfaction.
・ Satisfied workers tend to less absenteeism to the work than low satisfied workers.
・ High satisfaction leads to less turn over of employees in private sector
organizations.
・ Financial benefits play an important role to satisfy, retain and attract employees
in private sector organizations.
・ Satisfied employees have high commitment to the job than dissatisfied employees.

6． Suggestions and Recommendations

Satisfied employees have positive attitudes regarding their jobs. Satisfied workers are
tend to attend to work on time, more concern about the given targets, work speedily,
work free of errors and omissions, loyalty and commitment to the job, less dependability,
suggest new ideas, tend to improve knowledge, willing to accept more responsibility,
obedience of rules and regulations, less absenteeism and effort to retain in the present
job. The positive attitudes will increase the quality and quantity of employees’
performance. Hence such a situation is good for an organization. But, some organizations
do not concern about satisfaction of employees. Therefore, if organizations can be more
concerned about the job satisfaction of employees, better performances can be
expected, because the relationship between satisfaction and performance is positive and
significant. This aspect should be given more consideration by the managers in order to
improve performance. For this, in macro level managers can be educated the importance
of the concept of job satisfaction.
In Sri Lanka it seems that most of organizations more concern about extrinsic rewards
than intrinsic rewards. But the findings of the study revealed that intrinsic rewards also
play an important role of satisfying employees. Hence, the attitudes of managers towards
intrinsic rewards should be changed. Therefore when managers plan organizational
reward systems, they should give priority not only for extrinsic rewards but also intrinsic
rewards. Such as growth, autonomy, recognition, accomplishment, challenge and
feedback etc.
The survey data shows that only 14% has indicated that they are highly satisfied with
the opportunities for promotions. In other words 86% of the employees in the sample are
not satisfied with this reward. Though it is an extrinsic reward, it will lead to intrinsic
rewards such as advancement and recognition. Therefore, the revision of internal
promotional schemes will most probably improve the degree of job satisfaction.
In addition most of employees expect career development from their profession. It
seems that the existing promotional programs do not serve this purpose adequately.
 The Impact of Job Satisfaction on Job Performance （ PUSHPAKUMARI ） 105

Higher level employees also derive satisfaction with their job, if they have opportunity to
career development. Therefore, organizations can be arranged their internal programs for
providing prospects to career development of employees.
The study also revealed that, financial benefits have a significant influence to attract
and retain employees in an organization. Some employees leave from organizations due
to lack of financial benefits. In highly competitive industries, most employees are
satisfied with money rewards. Therefore, organization should more concern about the
financial benefits and revised the existing monetary rewards systems to retain and
attract employees.
Major source of job satisfaction of most employees is related to job content factors than
job context factors. Such as achievement, autonomy, growth, recognition, variety
challenge, feed back etc. Therefore, when organizations do job enrichment and job
redesign, employees should be given more autonomy, responsibility challenging and
interesting work. In other words give priority for job content factors.
Most of non- managers are not satisfied with interpersonal relationships. Such as
opportunity to get to know others, opportunity to help for others, and opportunity for
close friendships. In order to that, Organizational culture can be created for providing
above opportunities to increase interpersonal relationships in an organization. It will help
to satisfy employees in lower level.
Most of private sector organizations do not have proper performance evaluation
systems for employees. Employees derive job satisfaction, if there is feedback on their
performance. Therefore, organizations can establish proper performance appraisal
system to provide this opportunity.

7． Further Research

The present study was concerned only of the private sector organizations limiting the
number of industries to five. A large sample would have been more representative of the
private sector employees. In addition another posssibility is to conduct the same study
for public sector employees. That will give a comparable picture between employees in
public and private sector organizations.
Further, the present study conducted only for three employee categories. This is to
extended into many more categories. That will give a more realistic picture.
The variation of degree of satisfaction with intrinsic rewards and extrinsic rewards can
be measured against demographic variables. Such as educational level, sex and family
background of employees.
This study considered only the influence job satisfaction on performance. But there
are other factors which influence on performance. Such as leadership, organizational
culture, Climate and other external variables. A detailed study considering all these
 106 第９巻 第１号

factors would provide a insight to determine the most crucial factor that influence
performance of an employee

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