Final Thesis Saira

Table of contents:
Abstract...............................................................................................................................5
Chapter 1: Introduction8
1.0 Introduction....9
1.1 Purpose statement .. ....12
1.2 Objectives... ..12
1.3 Significance .... .13
1.4 Research questions ....14
1.5 key term definition.............15
Chapter 2: Literature Review......16
Chapter 3: Theoretical Framework.34

3.0 Theoretical Model 35
3.1 Norm of reciprocity .... 36
3.2 Social exchange theory 36
3.3 Theory of Motivation . .36
3.4 Affect Theory.. .36
3.5 Two-Factor Theory (Motivator-Hygiene Theory):. .37
Chapter 4: Methodology.. 38
4.0 tools of data collection .........39
4.1 sampling technique and sample ... 41
4.2 measure .. . 41
4.3 methodology ..42
Chapter 5: Analysis.............45
5.0 data screening.....46
5.1 results .47
5.1.1 Descriptive summary ..50
5.1.2 Histogram....52
5.1.3 Scatter plot ..54
5.1.4 Correlation ..58
5.1.5 Regression ...60
Chapter 6: summary/ conclusion.62

6.0 summary .....62
6.1 conclusions .63
6.2 policy recommendation 66
References .....68
Appendix
Questionnaire.73
The impact of job satisfaction on job performance in the banking

sector of Pakistan
A Thesis Submitted
To
Department of Economics
Superior University
In Partial Fulfillment of the Requirement for the Degree of
MASTERS IN BUSINESS ECONOMICS
By
SAIRA ALEEM
2010
Declaration of Originality
I hereby declare that this project is entirely my own work and that any additional sources of
information have been duly cited.
I hereby declare that any Internet sources published or unpublished works from which I have
quoted or draw references fully in the text and in the content list. I understand that failure to
prove this will result in failure of this project due to plagiarism.
I understand I may be called for viva and if so must attend. I acknowledge that this is my
responsibility to check whether I am required to attend and that I will be available during the
viva periods.
Signed
Date
Name of Supervisor
Abstract
4
This proposal is aimed at conducting a research to find the relationship between job satisfaction
and job performance in the banking sector of Pakistan. It focuses on if the employees of an
organization are satisfied what will be its effect on their Job performance. It will further discuss
that for this organization, job satisfaction of its workers means a work force that is motivated and
loyal to high quality performance. This research will use Social exchange theory as the base of
the research. A theoretical framework of job satisfaction and job performance is shaped which
will be tested through the research. The research will move using quantitative method. A sample
of 100 employees who has been working in the banking sector is selected using convenience
sampling. Data will be collected through survey method using questionnaires. The data collected
through surveys will be tested using statistical analysis by using SPSS software as the data is
quantitative. The results and data are discussed in depth within this report. There are also several
limitations as well as future research implications at the end of this research study.
Keywords: Job Satisfaction (JS), Rewards (RE), Growth Opportunities (GR), Employee
Development (ED) and Job Performance (JP).
Acknowledgement
I would like to thank the following persons without whose guidance this dissertation could not
have been completed.
First of all I would like to thank my ALLAH who always guides me in every walk of my life.
Secondly, I would like to express my sincere appreciation and gratitude to my supervisor sir.
Muhammad Illyas for his guidance and insight throughout in making my dissertation and
especially, his invaluable suggestions and comments that really guided my research and also
helped me to structure my dissertation.
Thirdly I am also very indebted to my best friends, my father and mother for their continuous
support. I owe a lot of their unconditional love and understanding. Well, their suggestions
allowed me to think in many different ways. Most importantly, they continually helped me
improve my confidence. There were certain times, when I used to say that I just did not think I
could go on with my studies, but they always knew just what to say to get me back in the race.
ACROYMS
RE ----------------------------.REWARDS
GR --------------------------- GROWTH OPPORTUNITIES
ED----------------------------- EMPLOYEES DEVELOPMENT
JS----------------------------..JOB SATISFACTION
JPJOB PERFORMANCE
Chapter 1
Introduction
7
CHAPTER 1
1.0 Introduction:
In recent years Job satisfaction has received a great amount of attention from the policy makers.
Satisfaction of the employees with the job is very important feature for any organization. This
research looks on the relationship of job satisfaction and job performance in the banking sector
of Pakistan. It is important for the top management to develop strong relationship between the
organization and the employees to complete the continuous changing needs of both parties.
Organizations be expecting that the employees follow the rules and regulations, work according
to the principles set for them, and the employees expect good working conditions, fair pay, fair
treatment, secure career, power and involvement in decisions. These expectations of both parties
8
differ from organization to organization. For organizations to address these expectations an

understanding of employees motivation is required Beer, (1984). It sees whether a satisfied
employee gives better performance or not. It will also look at some factors which results in the
satisfaction of the employee with his job. The relationship between job satisfaction and
performance is one of the the majority researched areas in the organizations (Judge, Thoresen,
Bono, & Patton, 2001). However industrial psychologists do not give good reason for any
relationship between job satisfaction and job performance (Rashmi Shahu, S.V. Gole, 2008). This
research will help developed organizations like banking sectoring in Pakistan to be on familiar
terms with how employee will perform their job if they are satisfied with their job, also will look
at factors that have an effect on their satisfaction.
Job satisfaction has been defined as an agreeable affecting state follow-on from the evaluation of
ones job. One of the largest preludes to the study of job satisfaction was the Hawthorne studies.
These studies (1924-1933), mainly credited to Elton Mayo of the Harvard Business School,
wanted to find the effects of various conditions (most notably luminosity) on workers output.
These studies ultimately showed that the novel changes in work conditions for the time being
increase output (called the Hawthorne Effect). It was later establish that this increase the resulted
new situation, but from the information of being experiential.
Employee satisfaction has always been vital issues for organizations. Few practices (in fact, few
organizations) have made job satisfaction a top main concern, perhaps because they have failed
to understand the important opportunity that lies in front of them. Satisfied employees tend to be
more productive, creative and loyal to their employers. (J. Michael Syptak, MD, David W.
Marsland, MD, and Deborah Ulmer, PhD)
Human resource management is a serious function within an organization by which all the
company could depend on it, and one that is concerned with five main areas: staffing,
development, employment relations, reward and evaluation (Mondy, Noe & Premeaux 17).
Human resource planning is therefore concerned with the efficient and resourceful use of human
resources inside an organization, further satisfied and more developed employees, and more
effective equal employment opportunity planning. Its straight relationship to the employment
process is determining what types of employees are wanted, how many of those employees are
needed and the best way to find those employees for the organization. Once employees have
been hired, effective human resource managers make sure that employees and their supervisors
have suitable training in the evaluation procedure so that the organization receives the highest
benefit from employees and the employees enjoy a high level of confidence, resulting in
increased productivity (Hernan 94).
persons learn always as a natural result of doing work, which is good. Up till now, how much of
that learning is a result of an organizations planned employee Development programs can be
questioned. Employee development does not necessarily include all instances of employee
knowledge. Employee development refers to an incorporated set of planned programs, provided
over a period of time, to help and assure that all individuals have the capability necessary to
perform to their fullest possible in maintain of the organizations goals. As a procedure,
employee development encompasses the learning of all persons in organizations as well as lead
employees, professionals or managers and can be delivered from side to side a variety of
approaches, including off-the-job and on-the-job training programs, educational programs and
seminars, job rotations, self-study resources and mentoring programs, in the middle of others.
10
Accordingly, in put into practice, employee development can be defined together by the
employee level being served and the methods used to bring programs to the employees. Such a
wide range benefits practitioners by extending its theoretical boundary further than technical or
managerial training on your own. Unfortunately, at the same time, such range makes it all the
more difficult for researchers to describe the exact relationship between employee development
and organizational performance.
Job performance is a commonly used, however badly defined idea in industrial and
organizational psychology, the branch of psychology that deals with the workplace. It most
usually refers to whether a person performs their job well. Among the most commonly accepted
theories of job performance comes from the work of John P. Campbell and colleagues. Coming
from a psychological point of view, Campbell describes job performance as a person level
variable. That is, performance is something a single person does. This differentiates it from more
surrounding constructs for example organizational performance or national performance which
are higher level variables (Campbell, J. P. 1990).
1.1 The purpose statement:

In order for the organization (banking sector) to be successful it must be able to use people who
will continue with the business and perform at high levels, research indicates that employees
who are satisfied with the organization are more expected to perform well. As a result the
achievement of strategies to satisfy employees is one way that developed concerns can make
loyalty & satisfaction between employees to improve performance. Thus the purpose of this
study will be to study impact of job satisfaction on job performance in banking sector of
Pakistan with survey method and the calculating variables will be rewards, growth opportunities
11
and working conditions, there effect will be seen on satisfaction with job and their performances.
Than these results will be tested using statistical analysis.
1.2 Objectives of Study:

The importance of the study will be on the following objectives:
To find the relation of job satisfaction on job performance.
To facilitate banking sector for increasing job performance.
To facilitate banking sector for increasing job satisfaction in employees.
To make stronger the findings on experience of satisfaction.
To find the result of rewards, working conditions and growth opportunity on satisfaction.
1.3 Significance of the Study:

The study is significant in the following ways:
The study will expand our understanding of employees job performance by including the
view of job satisfaction and the environment of job satisfaction.
It will explain how rewards, growth opportunities and working conditions effect
employee satisfaction.
12
It will help to appreciate the relationship between job satisfaction and job performance
about banking sector in Pakistan.
It will be important for the policy makers to enlarge the job performance of the
employees.
It will further make stronger the research findings regarding the background of job
satisfaction.
It will make easy the decision makers on how to increase the satisfaction of the
employees.
1.4 Research Question and Hypothesis

In this research the independent variable is rewards, growth opportunities, employee
development and the intermediary variable is Job satisfaction and dependent variable is Job
performance these variables will be studied independently. This study will firstly verify the
impact of rewards, working condition and growth opportunity on Job satisfaction and then verify
the result of Job satisfaction on the Job performance.
Main Question:
13
Q: Does Job satisfaction effect Job performance in the banking sector of Pakistan?
Sub Questions:
Q: Does job satisfaction growth employees performance?
Q: Does rewards affect on job performance?
Q: Does employee development affect on job performance?
1.5 Key Terms of the Study Defined:

Job Performance:
The work-related production or result of employee is his performance
Job Satisfaction:
Job satisfaction is a work-related attitude which indicates that employee is not dissatisfied with
the job (Herzberg, Mausner & Snyderman, 1959). This research will use the following three
practices as ancestor of satisfaction:
Growth Opportunities:
14
Growth Opportunities refers whether employee is given opportunity to develop in the

organization, an investment or project that has the possible way to grow significantly, leading to
a profit for the investor. New savings are often presented to potential investors as growth
opportunities.
Reward:
Brief and Aldag (1977) defined extrinsic rewards as any "object or event" that an individual
received as a result of performing or completing a task. There are two kinds of rewards,
monetary and non-monetary rewards.
Employee Development:
In the field of human resource management, training and development is the field concerned
with organizational activity aimed at bettering the performance of individuals and groups in
organizational settings.
15
Chapter 2
Literature Review
CHAPTER 2
Literature Review
Job Satisfaction:
Job Satisfaction has been defined as the area to which an employee has a positive successful
direction and position towards particular factors of it (Smith, Kendall, and Hulin, 1969). Job
satisfaction has been the most often investigated variable in organizational behavior (Specter,
1997). The industrial and business sectors of various countries specially developing countries
including Pakistan (where per capita income is very low) are facing the problem of job
dissatisfaction among the employees and high rate of turnover. Job satisfaction is regard to ones
16
feeling or state of mind regarding the nature of their work. Job satisfaction can be influenced by
variety of factors such as kind of supervision, organization policies & administration, salary &
quality of life etc. Job satisfaction varies and researchers, Peretomode (1991) and Whawo
(1993), have suggested that the higher the status of the job, the greater the job satisfaction. Many
workers, still, are satisfied in even the most important jobs. Specifically, they just like what they
do. In any case, job satisfaction is a person feelings or state of mind (Nwachukwu Prince
Ololube, University of Helsinki Finland).
In 1966, Frederick Herzberg, introduced the Two Factor Theory (Stamps, 1997) that draws our
awareness on both the essential job satisfied factors and the extrinsic factors these job related
factors have direct impact on three kinds of satisfaction: organizational satisfaction, career/work
satisfaction and satisfaction with salary and benefits (Volkwein & Parmley, 2000; Warner, 2000).
On the other hand, Maslows hierarchy of needs views satisfaction as arising from work and the
workers own life experiences and not from work itself (Stamps, 1997). Maslows motivational
theory emphasizes internal causes of behavior so that every person is working at fulfilling own
needs.
In earlier research, job satisfaction was viewed as a positive emotional outcome or affective
response to ones own work experience (Bullock, 1984; Locke, 1976) that might be brief and not
even linked with jobs themselves (Brief, Butcher, & Roberson, 1995). But modern studies have
established an additional affective role in understanding job satisfaction (Connolly &
Viswesvaran, 2000; Judge & Larsen, 2001; Thoresen et al., 2003)
Job satisfaction can be defined as the degree to which persons feel positively or negatively
About their jobs (Schermerhorn. Jr,et al.,2005). It is an attitude or emotional reaction to ones
17
Tasks as well as to the physical and social conditions of the workplace. From the point of view of
Herzbergs two-factor theory some aspects of job satisfaction should be motivational and lead to
positive employment relationships and high level of individual job performance. The relationship
of age and tenure with job satisfaction as discussed by (Herzberg, et al., 1957) was a U shape
Relationship. Herzberg explained his result that individuals at their in the early stages of
employment usually experienced low job satisfaction owing to displeased work expectations. He
further added that these individuals or employees when superior in their careers gain maturity
and work Experience which led them to a more sensible level of work expectations
In recent years Job satisfaction has received a great amount of attention from the policy makers.
Satisfaction of the employees with the job is very important feature for any organization. This
research looks on the relationship of job satisfaction and job performance in the developed
organizations of Pakistan. It sees whether a satisfied employee gives better performance or not. It
will also look at some factors which results in the satisfaction of the employee with his job. The
relationship between job satisfaction and performance is one of the most researched areas in the
organizations (Judge, Thoresen, Bono, & Patton, 2001). However industrial psychologists do not
justify any relationship between job satisfaction and job performance (Rashmi Shahu, S.V. Gole,
2008). This research will help developed organizations in Pakistan to understand how employee
will do their job if they are satisfied with their job, also will look at factors that have an effect on
their satisfaction.
Job satisfaction has been defined as an agreeable emotional state resulting from the evaluation of
ones job. Main thing to study in job satisfaction was the Hawthorne studies. These studies
(1924-1933), mainly qualified to Elton Mayo of the Harvard Business School, required to find
the effects of various conditions (most notably illumination) on workers productivity. These
18
studies eventually showed that novel changes in work conditions temporarily increase
productivity (called the Hawthorne Effect). It was later found that this increase resulted, not from
the new conditions, but from the knowledge of being observed.
Employee satisfaction has always been important issues for organizations. Few practices (in fact,
few organizations) have made job satisfaction a top main concern, maybe they have failed to
understand the major opportunity that lies in front of them. Satisfied employees tend to be more
productive, creative and committed to their employers. (J. Michael Syptak, MD, David W.
Marsland, MD, and Deborah Ulmer, PhD)
On the other hand HRM systems in explaining the significance of human resources to
organizational performance, the majority of work in planned HRM have adopted the resourcebased view of the firm (Barney, 1991). According to this view, an organization can gain
competitive gain by attracting and retaining the best human resources (Delery, 1998).
Accordingly, HRM policies can be grouped into two HRM systems: the systems aiming at
attracting human resources, and retaining human resources.
Huselid (1995) highlights two HRM systems: employee skills and organizational structures
(including a broad range of HRM policies intended to improve employees knowledge, skills and
abilities); and employee motivation (collected of HRM policies designed to recognize and add
force to desired employee behaviours). Theoretically speaking in, core competencies surrounded
by employees are developed during selection, training and design of work (first HRM system)
and are next reinforced through employee motivation (second HRM system).
Delaney and Huselid (1996) suggest three HRM systems, namely employee skills (referring to
staffing selectivity and training); employee motivation (referring to incentive compensation and
19
grievance procedure); and organization of jobs and work (referring to decentralized decision
creation inside labour market and vertical hierarchy).
Youndt et al. (1996) propose two HRM systems: administrative HR system(including selection
for manual and physical skills, policies and procedures training, results-based performance
evaluation, person equity, individual incentive and hourly Katou and Budhwar: Human resource
management . . . performance 1227 pay); human-capital-enhancing HR system (consisting of
selective staffing, selection for technical and problem-solving skills, developmental and
behavior-based performance appraisal, external equity, group incentives, skill-based pay and
salaried compensation).
Huselid et al. (1997) conceptually define two HRM systems: technical HRM effectiveness
(describing perceptions of how well the HRM function performs behavior usually associated
with staff management, including HRM policies such as recruitment, selection, training,
performance appraisal and reward management); and strategic HRM effectiveness (explaining
perceptions of how well the HRM function retains employees to hold up the business needs, as
well as HRM policies such as teamwork, participation and communications).
Ngo et al. (1998) present four HRM systems: structural training and development (measuring
the firms training and development policies); retention-oriented compensation (measuring the
firms compensation policies); seniority based compensation (indicating that compensation is
joined to position and the job title); and diversity (measuring the point to which the staff is
composed of expatriates).
From the works confirmed above, although the number and type of HRM systems differ
according to the aims and objectives of each individual work, two HRM systems are usually
present in approximately all works. The first HRM system refers to the HRM policies of
20
researching and development, aiming at attracting and developing human resources, and the
second refers to the HRM policies of rewards and relations, aiming at retaining and motivating
human resources. Job Satisfaction has been defined as the area to which an employee has a
positive helpful point of reference and approach towards particular factors of it (Smith, Kendall,
and Hulin, 1969). Job satisfaction has been the most commonly investigated variable in
organizational behavior (Spector, 1997). Job satisfaction vary and researchers, Peretomode
(1991) and Whawo (1993), have suggested that the higher the status of the job, the greater the
job satisfaction. Many workers, still, are satisfied in even the least important jobs. That is, they
simply like what they do. In every case, job satisfaction is as individual as ones thoughts or state
of mind (Nwachukwu Prince Ololube, University of Helsinki Finland).
Carnige (1985) focused the human feature of management as the author believes that it is the
people who make organization achieve something or failure so it should be the main
responsibility of organizations chief manager to motivate their company employees so that they
experience satisfaction and assure organizational success. The main subject of the author is that
human capital engages in recreation is very important position in an organizational effectiveness
as compared to financial capital. People are at the present seen as the most important source of a
companys competitive advantage. As Lawler (2003) also reported that the treatment with
employees basically determines that whether organization Will do well or not. Organizations are
under constant force to improve and get better their performance and are realizing that
relationship exists linking between organizational Performance and employee performance
(Roberts, 2005). Rutherford (1990) reported that motivation makes an organization more
effective because motivated employees are always looking for better ways to do a job, so it is
21
important for management to understand how organizations influence the motivation of their
individual employees
In 1966, Frederick Herzberg, introduced the Two Factor Theory (Stamps, 1997) that draws our
attention on both the natural job satisfied factors and the extrinsic factors these job related factors
have direct impact on three kinds of satisfaction: organizational satisfaction, career/work
satisfaction and satisfaction with salary and benefits (Volkwein & Parmley, 2000; Warner, 2000).
On the other hand, Maslows hierarchy of needs views satisfaction as arising from work and the
workers own life experiences and not from work itself (Stamps, 1997). Maslows motivational
theory emphasizes internal causes of behavior so that every person is working at satisfying own
needs.
In previous research, job satisfaction was viewed as a positive emotional outcome or affective
response to ones own work experience (Bullock, 1984; Locke, 1976) that might be temporary
and not even associated with jobs themselves (Brief, Butcher, & Roberson, 1995). But recent
studies have demonstrated an additional affective role in understanding job satisfaction
(Connolly & Viswesvaran, 2000; Judge & Larsen, 2001; Thoresen et al., 2003)
Reward on employee satisfaction
Customer satisfaction incentive schemes are increasingly common in a variety of industries. We
offer explanations as to how and when incenting employees on customer satisfaction is profitable
and offer several recommendations for improving upon current practice. Faced with employee
groups (including managers) who may have shorter time horizons than the firm, such systems
enable a firm to use customer reaction to monitor implicitly how employees allocate effort
between the short and long terms. Throughout the paper we interpret the formal results based on
22
our experience with actual firms and the current literature. We close with a brief discussion of
on-going research at field sites.
Reward and relations: This includes the policies of job evaluation (Foot and Hook1999);
compensation (Beer et al., 1984; Paul and Anantharaman, 2003; Roberts, 1997); promotion
arrangements (Guest, 1997; Pfeffer, 1995); incentive schemes (Gomez- Mejia and Wellbourne,
1988; Marchington and Grugulis, 2000); benefits (Mowday et al., 1982; Paul and Anantharaman,
2003); employee participation (Harel and Tzafrir, 1999; Marginson et al., 1988; Pfeffer, 1994;
Verma, 1995;Wagner, 1994); employee involvement (Marchington and Goodman, 1992);
communications (Pfeffer1994, 1998; Marchington and Grugulis, 2000); and health and safety
(Miner and Crane, 1995; Phillips, 1996).
Summarizing the above discussion and considering the resource-based view of the firm (Barney,
1991; Chadwick and Cappelli, 1999), we may say that the HRM systems of attracting and
retaining human resources (Delery, 1998) influence directly or indirectly organizational
performance (Harel and Tzafrir, 1999) by creating a workforce that is competent and cooperated
(Doty and Delery, 1997), motivated, committed and satisfied (Guest, 2001) and being present
and staying within the organization (Boselie et al., 2001).
In other words, the HRM outcomes of skills (competent, cooperation), attitudes (motivation,
commitment, satisfaction) and behaviours (turnover, absenteeism) may 1228 The International
Journal of Human Resource Management mediate HRM systems and organizational performance
(Becker and Huselid, 1998; Parket al., 2003; Paul and Anantharaman, 2003).
Job Performance:
23
In- role job performance refers to activities that are related to employees formal role
requirements (Borman & Motowidlo, 1997). Generally it is believed that job involvement by
positively affecting employees motivation and effort, leads to higher levels of in-role job
performance (Brown, 1996). Prior research has indicated some support for this claim. For
instance Brown and Leigh (1996) in their study found that job involvement had both direct and
indirect effects via effort on performance. More specifically they found that the modest but
statistically significant relationship between job involvement and performance became non
significant when effort was inserted into the model, indicating the mediating effect of effort on
the relationship.
According to Porter and Lawler (1968), there are three types of performance:
One is the measure of output rates, amount of sales over a given period of time, the production of
a group of employees reporting to manager, and so on.
The second type of measure of performance involves ratings of individuals by someone other
than the person whose performance is being considered.
The third type of performance measures is self-appraisal and self-ratings. As a result, the
adoption of self-appraisal and self-rating techniques are useful in encouraging employees to take
an active role in setting his or her own goals.
Thus, job performance measures the level of achievement of business and social objectives and
responsibilities from the perspective of the judging party (Hersey and Blanchard, 1993).
Chen, Silverthorne and Hung (2006) studied the relationship of the organizational commitment,
communication and job performance. Their research findings indicated that there are positive
relationships between organizational communication, organizational commitment and job
24
performance. This finding suggested that companies strengthen their communication channels
and processes in order to strength their accounting professionals organizational commitment and
job performance.
Rashid, Sambasvani and Joari (2003) studied 202 managers in Malaysian companies and their
research findings suggested that corporate culture and organizational commitment are
interrelated and both have far reaching impacts on the performance.
Job satisfaction and Performance:

One of the most researched areas in industry is the relationship between job satisfaction and job
performance (Judge, Thoresen, Bono, & Patton, 2001). Landy (1989) described this relationship
as the Holy Grail of Industrial psychology.
Research linking job performance with satisfaction and other factors has been studied since at
least 1939 and started with the Hawthorne studies (Roethlisberger & Dickson, 1939). It was
found by Brayfield and Crockett (1955) that there is only a minimal relationship between job
performance and job satisfaction but Judge et al (2001) cited that there are other studies by
Locke (1970), Schwab & Cummings (1970), and Vroom (1964) that have shown that there is at
least some relationship between job satisfaction and job performance.
In some studies job satisfaction has been identified as a key variable mediating any positive
relationship between HRM practices and organizational performance (Guest, 2002). Iaffaldano
and Muchinsky (1985) did an extensive analysis on the relationship between job performance
and job satisfaction. Across their many studies, they found a mean correlation of 17 (Rashmi
Shahu, S.V. Gole, 2008).
25
A Meta analysis of the relationship between job satisfaction and performance conducted by Petty
and Cavender (1984) reported that relationship between job satisfaction and performance is
stronger and more consistent than that reported by previous reviews (Brayfield, & Roth, 1951;
Vroom, 1964). Results indicate that individual job satisfaction and job performance are
positively correlated.
Organ (1988) also found that the job performance and job satisfaction relationship follows the
social exchange theory; employees performance is giving back to the organization from which
they get their satisfaction.
Judge et al. (2001) argued that there are seven different models that can be used to describe the
job satisfaction and job performance relationship. Some of these models view the relationship
between job satisfaction and job performance to be unidirectional, that either job satisfaction
causes job performance or vice versa. Another model states that the relationship is a reciprocal
one; this has been supported by the research of Wanous (1974).
The final model is Alternative Conceptualizations of Job Satisfaction and/or Job Performance.
This model discusses how positive attitudes toward ones job can predict a high degree of job
performance. George and Brief (1996) and Isen and Baron (1991) both found that employees
attitudes are reflected in their job performance. If this is the case, then we can argue that there is
a relationship between employees job satisfaction and job performance, as satisfaction is an
attitude about their job. Industrial psychologists do not justify any relationship between job
satisfaction and job performance; although it has been found that a positive mood is related to
higher levels of job performance and job satisfaction.
26
As cited in Clement (1993), Brayfield and Crockett (1955) examined the relationship between
employee satisfaction and performance. Their findings concluded that productivity is not an
important goal that employees bring with them to their jobs; this research was further supported
in the 1964 work of Vroom. What they suggested was rather than satisfaction leading to
performance, it is performance that can lead to higher satisfaction and that individuals who seek
challenge, achievement and personal growth can fulfill those needs performing well. Most
professionals and managers probably fall into this category (Clement, 1993).
Past researches show that in the beginning it was considered that there is less relationship
between job satisfaction and job performance also various models were presented to describe the
relationship. Also there were studies that showed that not only satisfaction affects performance
but performance can effect satisfaction also. However later studies revealed that the relation
between job performance and job satisfaction is significant and consistent. Porter and Lawler
(1968), there are three types of performance:
One is the measure of output rates, amount of sales over a given period of time, the production of
a group of employees reporting to manager, and so on. The second type of measure of
performance involves ratings of individuals by someone other than the person whose
performance is being considered. The third type of performance measures is self-appraisal and
self-ratings. As a result, the adoption of self-appraisal and self-rating techniques are useful in
encouraging employees to take an active role in setting his or her own goals. Thus, job
performance measures the level of achievement of business and social objectives and
responsibilities from the perspective of the judging party (Hersey and Blanchard, 1993).
In order to develop employee skills, organizations implement various HRM policies. Although
recruitment may be a valid measure for obtaining employee skills this is not the only one
27
(Delery, 1998). It is argued, for example, that apart from effective recruitment, employee skills
are positively related with effective training and development. It is widely recognized that
training and development assist employees in keeping and extending their knowledge and skills
(Boxall, 1996; Marchington and Grugulis, 2000; Pfeffer, 1998). Furthermore, it is argued that
satisfactory incentives, such as performance related pay, may encourage employees to gain skills
for higher performance (Lado and Wilson, 1993; Latham and Wexley, 1981; Park et al., 2003;
Paul and Anantharaman, 2003; Snell and Dean, 1992). Moreover, effective training and
communication may enhance cooperation among employees (Mishra and Mishra, 1994), and
thus skills.
It is also argued that cooperation between management and employees is positively related to
effective recruitment, separation, training, incentives and communication. Cooperation among
employees is positively related to effective recruitment, training, monitor training and
communication. The right mix of employee competences is positively related to effective
training, careers, performance appraisal, incentives and communication.
Moreover, with respect to the right mix of employee competences, proper career development
programmes will help ensure that employees possess the right mix of skills, and will most
probably have a positive effect on the level and type of skills and knowledge in an organization.
In order to bring lasting and better results and to contribute significantly to the success of their
organization, employees must be motivated, committed and satisfied (e.g., Mowday, 1998; Paul
and Anantharaman, 2003). It is argued that employee characteristics such as employee skills do
not provide value to the organization unless they are embedded through proper employee
attitudes (Wright et al., 1994; Park et al., 2003), and, furthermore, it is the employee attitudes
28
that determine to what extent employees are prepared to use effectively their various capabilities
for the benefit of the organization (Schuler and Jackson, 1987).
Unless the organization is able to retain its employees, it will not be able to capitalize on the
human assets developed within the organization. Thus, turnover and absenteeism may have a
negative impact on organizational effectiveness, or respectively employee retention and
employee presence may have a positive impact on organizational effectiveness (dArcimoles,
1997; Arthur, 1994; Boselie et al., 2001). The influence of HRM policies on behaviours may be
either direct or indirect through attitudes. For example, Huselid (1995) found that motivation has
a negative impact on turnover. In our case it is seen that the HRM systems of resourcingdevelopment and reward-relations are positively related to employee behaviour lending support
to Hypothesis 2. Having produced arguments with respect to the possible mediating variables, we
show in Table 10 that the HRM outcome partially mediates the relationship between the human
resource management system and overall organizational performance. Furthermore, it is seen that
the HRM outcomes of skills and attitudes partially mediate the relationship between the HRM
systems of resourcing-development and reward-relations, and organizational performance, One
of the most researched areas in industry is the relationship between job satisfaction and job
performance (Judge, Thoresen, Bono, & Patton, 2001). Landy (1989) described this relationship
as the Holy Grail of Industrial psychology.
Research linking job performance with satisfaction and other factors has been studied since at
least 1939 and started with the Hawthorne studies (Roethlisberger & Dickson, 1939). It was
found by Brayfield and Crockett (1955) that there is only a minimal relationship between job
performance and job satisfaction but Judge et al (2001) cited that there are other studies by
29
Locke (1970), Schwab & Cummings (1970), and Vroom (1964) that have shown that there is at
least some relationship between job satisfaction and job performance.
In some studies job satisfaction has been identified as a key variable mediating any positive
relationship between HRM practices and organizational performance (Guest, 2002). Iaffaldano
and Muchinsky (1985) did an extensive analysis on the relationship between job performance
and job satisfaction. Across their many studies, they found a mean correlation of 17 (Rashmi
Shahu, S.V. Gole, 2008).
A Meta analysis of the relationship between job satisfaction and performance conducted by Petty
and Cavender (1984) reported that relationship between job satisfaction and performance is
stronger and more consistent than that reported by previous reviews (Brayfield, & Roth, 1951;
Vroom, 1964). Results indicate that individual job satisfaction and job performance are
positively correlated.
Organ (1988) also found that the job performance and job satisfaction relationship follows the
social exchange theory; employees performance is giving back to the organization from which
they get their satisfaction.
Judge et al. (2001) argued that there are seven different models that can be used to describe the
job satisfaction and job performance relationship. Some of these models view the relationship
between job satisfaction and job performance to be unidirectional, that either job satisfaction
causes job performance or vice versa. Another model states that the relationship is a reciprocal
one; this has been supported by the research of Wanous (1974).
The final model is Alternative Conceptualizations of Job Satisfaction and/or Job Performance.
This model discusses how positive attitudes toward ones job can predict a high degree of job
30
performance. George and Brief (1996) and Isen and Baron (1991) both found that employees
attitudes are reflected in their job performance. If this is the case, then we can argue that there is
a relationship between employees job satisfaction and job performance, as satisfaction is an
attitude about their job. Industrial psychologists do not justify any relationship between job
satisfaction and job performance; although it has been found that a positive mood is related to
higher levels of job performance and job satisfaction.
Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a
framework to study how particular job characteristics impact on job outcomes, including job
satisfaction. The model states that there are five core job characteristics (skill variety, task
identity, task significance, autonomy, and feedback) which impact three critical psychological
states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of
the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work
motivation, etc.).
As cited in Clement (1993), Brayfield and Crockett (1955) examined the relationship between
employee satisfaction and performance. Their findings concluded that productivity is not an
important goal that employees bring with them to their jobs; this research was further supported
in the 1964 work of Vroom. What they suggested was rather than satisfaction leading to
performance, it is performance that can lead to higher satisfaction and that individuals who seek
challenge, achievement and personal growth can fulfill those needs performing well. Most
professionals and managers probably fall into this category (Clement, 1993).
Past researches show that in the beginning it was considered that there is less relationship
between job satisfaction and job performance also various models were presented to describe the
relationship. Also there were studies that showed that not only satisfaction affects performance
31
but performance can effect satisfaction also. However later studies revealed that the relation
between job performance and job satisfaction is significant and consistent.
Locke (1976) defined job satisfaction as ... a pleasurable or positive emotional state resulting
from the appraisal of ones job or job experience. That is, it is the discrepancy between what an
employee values and what the situation provides. Smith et al. (1969, p. 6) suggested that ... job
satisfaction are feelings or affective responses to facets of the situation. Dawis and Lofquist
(1984) defined job satisfaction as the result of the workers appraisal of the degree to which the
work environment fulfills the individuals needs. These definitions, as Lease (1998) pointed out,
are similar to other definitions where job satisfaction is viewed as the degree of an employee s
affective orientation toward the work role occupied in the organization.
Employee Participation and Job Satisfaction Historically, management theory (Argyris 1957;
Bennis 1966; Herzberg 1966, 1968; Likert 1967; Maslow 1954) has emphasized the importance
of coordinating the organization-human relationship to improve productivity and develop human
capital. Focusing on human motivation and its impact on job satisfaction and productivity,
scholars have conducted research on Employee Participation and empowerment (Drucker 1954,
1974; Likert 1967; Spreitzer, Kizilos, and Nason 1997; Ouchi 1981; Pascale and Athos 1981).
Participation is a process in which difficulty is shared among individuals who are otherwise
hierarchical unequal (Locke and Schweiger 1979; Wagner 1994).
Employee satisfaction has always been important issues for organizations. A small number of
practices (in fact, few organizations) have made job satisfaction a top main concern, maybe
because they have failed to understand the important opportunity that lies in front of them.
Satisfied employees tend to be more productive, creative and committed to their employers. (J.
Michael Syptak, MD, David W. Marsland, MD, and Deborah Ulmer, PhD).
32
A study conducted by (Kalleberg and Loscocco, 1983) reported that work role and family life
Cycle of individual employee have a strong impact on the level of job satisfaction. They have
Empirically proved that work values and rewards are the key concepts that essentially make
stronger the relationship of age and job satisfaction. They further added that older workers are
more satisfied than their younger counterparts because they actually have better or more highly
rewarded jobs (Quinn et al., 1974; Wright and Hamilton, 1978). In another study conducted by
(Hunt and saul, 1975) based on the evaluation of job satisfaction about age and tenure in two
Groups that are male and female reported U-shaped, important, positive and linear relationships
Between age-tenure-job satisfaction. They found a high level of correlation among in general job
Satisfaction with the age of employees under 25 and tenure of less than 12 months.
Chapter 3
Theoretical Framework
33
CHAPTER 3
Theoretical Framework:
The present study will utilize concept of Social Exchange Theory (Blau, 1964), norms of
reciprocity (Gouldner, 1960) and expectancy theory which will form the theoretical basis of the
research. The social exchange theory and norms of reciprocity will be used to explain the basis of
employee satisfaction. This research will be utilizing the following theories to build its
conceptual framework:
3.0Theoretical model
34
REWARD
GROWTH
OPPORTUNITIES
JOB
SATISFACTION
JOB
PERFORMANCE
EMPLOYEE
EVELOPMENT
3.1 Norm of Reciprocity (Goudlner, 1960):

Context for this Research: What the employee receives from the organization will be
reciprocated by him/her to the organization. Feeling of satisfaction by the employee will be
reciprocated in the form of better performance.
3.2Social Exchange Theory (Blau, 1964):

Context for this Research: Organization and employees are engaged in an exchange process. Job
satisfaction will result in greater work capability, which in turn, is expected to result in
motivation of the employee towards performing of the job resulting in better performance.
3.3Expectancy Theory of Motivation (Vroom, 1964):
35
Context for this Research: Higher reward and opportunities will result in high job satisfaction,
(high instrumentality) and this will result in high work-motivation triggering the performance of
the employee.
3.4Affect Theory:
Edwin A. Lockes Range of Affect Theory (1976) is arguably the most famous job satisfaction
model. The main premise of this theory is that satisfaction is determined by a discrepancy
between what one wants in a job and what one has in a job. Further, the theory states that how
much one values a given facet of work (e.g. the degree of autonomy in a position) moderates
how satisfied/dissatisfied one becomes when expectations are/arent met.
3.5Two-Factor Theory (Motivator-Hygiene Theory):

Frederick Herzbergs two factor theory (also known as Motivator Hygiene Theory) attempts to
explain satisfaction and motivation in the workplace (J. R. Hackman, G. R. Oldham, 1976). This
theory states that satisfaction and dissatisfaction are driven by different factors motivation and
hygiene factors, respectively. An employees motivation to work is continually related to job
satisfaction of a subordinate. Motivation can be seen as an inner force that drives individuals to
attain personal and organization goals (Hoskinson, Porter, & Wrench, p.133).
36
Chapter 4
Data & Methodology
37
CHAPTER 4
Data/Methodology
4.0Tools of Data Collection:
In order to find data on job satisfaction and job performance. I will collect data on 5 variables:,
job satisfaction (JS) ,growth opportunities(GR), rewards(RE), employees development(ED)and
job performance(JP), for that I decided to use a questionnaire survey because it is a existing
quantitative method used vastly by social science, management, and HRM researchers
(Anderson, 2004). A survey describes a population (Sapsford, 1999) by providing a quantitative
or numeric description of some fraction of the population the sample through the data
collection process of asking questions of people this enables a researcher to generalize the
findings from a sample of responses to a population (Creswell, 1994). In adding, questionnaire
survey data can give useful statistics to the researcher, which can be used to explain how things
38
are and why the phenomena occur (Lewin, 2005). On the one hand, descriptive statistics can be
used to describe and summaries data and include measures of central tendency (average) and
dispersion (the spread of data or how close each other is to the measure of central tendency)
(Lewin, 2005). On the other hand, inferential statistics are used to identify differences between
groups, look for relationships between attributes and create models in order to be able to make
predictions (Lewin, 2005). Therefore, by using a questionnaire survey method, the author was
able to quantify answers to questions, compare and contrast responses among the samples look
for relationships between variables, and enable generalizations from a sample of responses. More
specifically, the present study will use a self-completion questionnaire, repeatedly referred to
as a self-administered questionnaire referring to the type of questionnaire where respondents
answer questions by completing the questionnaire themselves (Bryman, 2001). The first benefit
to use questionnaire technique is that
It is good for measuring attitude and eliciting other content from research participants.
It is low-cost.
It can oversee to probability samples.
It can be quick revolving around.
It can be administered to groups.
The anonymity by respondents possibly high.
There is an ease of data analysis for close-ended items.
But on the other hand, there are some weaknesses of using questionnaire technique like
39
It needs rationale.
It must be kept short.
The high ratio of non response to selective items
The analysis of data sometimes time consuming for open-ended items.
Acknowledging that each method has some limitations but efforts will be made to minimize the
weaknesses in order to increase the validity of the result.
4.1 Sampling Technique and Sample

The Population of my study will be higher job satisfaction and job performance of employees.
The sample size of 125 employees and students will be taken for conducting the study by using
simple random sampling in order to generalize the findings in the particular sector.
4.2 Measures:
In case of measuring job satisfaction support growth opportunities (GR), rewards (RE),
employees development(ED) and job performance (JP), respondent filled questionnaire will be
used. Participant data was obtained through in one survey with 5-point likert scale only.
Participant will asked a few questions. The survey contained a total of 15 questions and took
approximately 10 to 15 minutes to complete. Incomplete survey was not included in the survey.
There were different measures for the variables defined and were thought of with many
40
complications. There were at least 3 questions in the survey obtaining data for one variable and
some questions were directly obtaining data with no complications. Measure for each variable is
defined below:
Reward
Reward was measure by asking the 3 questions by using the 5-points itemized rating type scale
ranging from (1) strongly disagree to (5) strongly agree
Growth opportunities
Growth opportunities was measure by asking the 3 questions by using the 5-points itemized
rating type scale ranging from (1) strongly disagree to (5) strongly agree
Employee development
Employee development was measure by asking the 3 questions by using the 5 -points itemized
rating type scale ranging from (1) strongly disagree to (5) strongly agree
Job satisfaction
Job satisfaction was measure by asking the 3 questions by using the 5-points itemized rating type
scale ranging from (1) strongly disagree to (5) strongly agree
Job performance
Job performance was measure by asking the 3 questions by using the 5 -points itemized rating
type scale ranging from (1) strongly disagree to (5) strongly agree
4.3Methodology:
41
To make analysis of data we will use SPSS software in which we will make analysis in to two
parts where part one will lead descriptive statistics that will be use to describe and summarize
data and include measures of central tendency (average) and dispersion (the spread of data or
how close each other is to the measure of central tendency) (Lewin, 2005) and part two will
lead to inferential statistics that will be use to identify differences between groups, look for
relationships between attributes and create models in order to be able to make predictions
(Lewin, 2005). The methodology that we will adapt is discussed below one by one.
In order to get the general summary of variable we will used descriptive statistics in which we
will come to know about the nature of response that we will get from respondent like the value of
maximum, minimum, mean and standard deviation.
We will use frequency distribution which is a descriptive measure used for a graphical
representation of the data to check the frequency (occurrence of one option) of the data as well as
the normality curve to check either data is normally distributed or not.
To check the overall image for identifying the relationship between dependent and independent
variable we will use scatter-plots. This matrix shows all the possible two dimension plots of the
variables. Scatter plot will used to see the graphical picture of relationship between the
dependent and independent variable.
We will use regression analysis to find out the effect size of independent variable on dependent
variable that how much change will occur in dependent variable due to change in independent
variable by using regression equation for analysis. Where we will check the value of t-test to
check the goodness of fit of the model. We will also make focus on the value to T to check the
significance level of relationship for the acceptance or rejection of our alternative hypothesis. We
will also make focus on the value of R square to see the contribution level of variable mean how
42
much independent variable contribute in changing the value of dependent variable. Since the
objective of this study is to check the impact of job satisfaction on job performance in banking
sector of Pakistan. So, here in this study ordinary least square (OLS) method of impact of job
satisfaction on job performance simple regression will be used to find such equation which could
be used to find the and the specified regression equation will take the following form
JPi = C + B (JS) + Ei
The equation which shows above where JPi is the dependent variable and C is the value of
constant; B (JS) is the value of independent variable shows the partial regression coefficient
represents the change in dependent variable, due to one unit change in independent variable. Ei is
the error term.
We will also use correlation to find the relationship among variables as well as check the strength
of the relationship of different variables. It will also show the direction of relationship between
two variables.
43
Chapter 5
Results & Analysis
44
Chapter 5
Analysis
The result of the study analysis is presented in this chapter. Reliability analysis & Descriptive
analysis used to describe the data by using descriptive summary as well as histogram with
normal distribution curve. Inferential analysis used to describe the relation between variables by
checking the acceptance or rejection of hypothesis and to see the nature of relationship between
variables. In inferential portion the study tested the relationship between Job Satisfaction (JS),
Growth Opportunities (GR), Rewards (RE), Employee Development (ED) and job performance
(JP).
5.0Data Screening:
Data screening and preparation is focused on ensuring that the data restricted the appropriate
range of scores for all analyzed variables including the identification of possible outlines. We
used questionnaire for collection of data. After that the most difficult work is to make analysis of
the data. So, for that purpose the first step is data screening in which we ensure that all the
participants were filled the questionnaire correctly and completely and after that we coded all
returned questionnaires in to Spss software for data analysis. For every variable we used 3
questions so, firstly we compute all the variables to get the final shape of our data variables and
after that used different test for analysis. So, I will give the detail of each variable one by one in
the results portion.
45
5.1Results:
In this portion all the results with their interpretation were shown and being discussed one by one
RELIABILITY ANALYSIS
RELIABILITY ANALYSIS OF JOB SATISFACTION:
Reliability Statistics
Cronbach's
Alpha
N of Items
.788
In this reliability shows that the reliability statistic value is 0.788 and used the questions which
shows as N are 3.
RELIABILITY ANALYSIS OF GROWTH OPPORTUNITIES:
Cronbach's
Alpha
N of Items
.789
shows as N are 3.
46
RELIABILITY ANALYSIS OF REWARDS:

Cronbach's
Alpha
N of Items
.843
shows as N are 3.
RELIABILITY ANALYSIS OF EMPLOYEE DEVELOPMENT:
Cronbach's
Alphaa
N of Items
.762
shows as N are 3.
RELIABILITY ANALYSIS OF JOB PERFORMANCE:
47
Cronbach's
Alpha
N of Items
.872
shows as N are 3.
5.1.1Descriptive Statistics
48
Descriptive Statistics
N
Minimum Maximum Mean
Std. Deviation
JS
125
2.33
4.67
3.8293
.61873
GR
125
2.00
5.00
4.0213
1.06234
RE
125
3.33
5.00
4.2773
.46900
ED
125
3.67
4.67
4.0640
.33252
JP
125
3.00
4.67
3.9947
.56318
Valid N
125
(listwise)
The descriptive statistics show the overall picture of all the 5 variables. There were scales of 5
responses that lead to the options (strongly disagree, disagree, neutral, agree, and strongly agree).
Number of observations of each variable is 125. In the above table the mean values and the
values of standard deviation of all the 5 variables have been shown. Mean value provides the
idea about the central tendency of the values of a variable. For example if we observe the above
output to assess the average response rate or the respondent then we come to know the mean of
different variables like JS (mean: 3.8293), GR (mean: 4.0213), RE (mean: 4.2773), ED (mean:
4.0640) and JP (mean: 3.9947). If we observe then for the first three variables (GR, RE & ED)
the average response rate of responded because the option is tick by 4 which shows that 4 is for
agree and the two variables (JS & JP) the average response rate of responded because the
options tick by 4-3 (4is for agree and 3 is for neutral). The minimum option that is ticked by
responded is 2 and 3 and the maximum option that is ticked by responded is 5.
Standard deviation gives the idea about the dispersion of the values of a variable from its mean
value. So, if we observe then in the response rate for the variable of commitment is value of
49
standard deviation is (S.D.33252) which is the lowest value as compare to other variable values.
Which shows that most of the respondent answers were same for the variable of ED and have
consistency in their response rate but if we observe then for GR the value of standard deviation is
(S.D 1.06234) which is quite high as compare to other variables which clearly shows that the
response regarding GR of mostly respondents were not the same and they dont have consistency
in their answers.
5.1.2HISTOGRAM:
Histogram of Job Satisfaction:
Histogram of Growth Opportunities:
50
51
Histogram of Rewards:
52
Histogram of Employee Development:
Histogram of job performance:
53
54
5.1.3 SCATTER PLOT:

Scatter plot or graph of two variables shows how the scores for an individual on one variable
associates with his or her scores on the other variable. Lets discuss each plot or graph one by
one:
Scatter Plot of Growth Opportunities and Job Satisfaction:
55
The results of scatter plot matrix where we intend to have some idea about the relationship
between Growth Opportunities and job satisfaction. If we observe then the flow of line is come
from left to right which shows the negative relationship between Growth Opportunities and job
satisfaction. This means that if the organization gives high growth opportunities then there is also
increase in the job satisfaction of an employee and the above results have been confirmed by the
table of correlations.
Scatter Plot of Rewards and Job Satisfaction:
56
between Rewards and job satisfaction. If we observe then the flow of line is come from right to
left that shows the positive relationship between Rewards and job satisfaction. This means that if
the rewards of an employee are high then there job satisfaction occurs for an employee and the
above results have been confirmed by the table of correlations.
Scatter Plot of Employee Development and Job Satisfaction:
57
between Employee Development and Job Satisfaction. If we observe then the flow of line is
come from left to right which shows the negative relationship between Employee Development
and Job Satisfaction .This means that if the organization gives high employee development then
there is also increase in the job satisfaction of employees and the above results have been
confirmed by the table of correlations.
Scatter Plot of Job Satisfaction and Job Performance:
58
between Job Satisfaction and Job Performance. If we observe then the flow of line is come from
right to left which shows the positive relationship between Job Satisfaction and Job Performance.
This means that if the organization gives high Job Satisfaction then there is also increase in the
job performance of an employee and the above results have been confirmed by the table of
correlations
5.1.4Correlations
59
Correlation is used to check the mutual relationship among variables. For checking the
relationship we will make two hypotheses: null (H0) and alternative (H1). We interpret the
findings on the acceptance or rejection of the hypothesis. We used correlation matrix to check the
mutual relationship of different variables. The hypothesis which we developed is given below:
Hypothesis 1:
H1: there is relationship between growth opportunities and job satisfaction
H0: there is no relationship between growth opportunities and job satisfaction
Hypothesis 2:
H1: there is relationship between rewards and job satisfaction
H0: there is no relationship between rewards and job satisfaction
Hypothesis 3:
H1: there is relationship between employee development and job satisfaction
H0: there is no relationship between employee development and job satisfaction
Hypothesis 4:
H1: there is relationship between job satisfaction and job performance
H0: there is no relationship between job satisfaction and job performance
60
Correlations
JS Pearson Correlation
JS
GR
RE
ED
JP
.359**
-.247
.433**
.545
.000
.041
.000
.000
125
.393**
.000
125
1
125
.449
.000
125
.386
.000
125
1
125
.647**
.000
125
.253
.000
125
.542**
.000
125
1
Sig. (2-tailed)
GR
RE
ED
JP
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
125
.359**
.000
125
-.247
.041
125
.433**
.000
125
.545
125
1
Sig. (2-tailed)
.000
.000
.000
.000
125
125
125
125
125
.293**
.000
125
.449
.000
125
.647**
125
.386
.000
125
.453
125
.542**
125
. Correlation is significant at the 0.01 level (2-tailed).
In this correlations results show that Where three variables GR, ED and JP are positively
correlated to JS (r=.359, p = .000, and r=.433, p= .000, and r=.545, p= .000 respectively). RE is
negatively correlated to the JS (r=-.247, p =.041). The magnitudes of the above discussed three
correlations are greater than 0.33 in the absolute terms, which shows the moderate correlations
between the said pairs of the variables but the correlation of RE is lesser than 0.33 in absolute
terms, which shows the weak correlation between JS and RE. As in this correlation explained
that if the value Pearson correlation will be increased 0.33 to 0.77 than there is strong
relationship and if the value of Pearson correlation will be greater than 0.77 than there is weak
relationship. All the above correlations are statistically significant at less than five percent level
61
of significant. In the case of these correlations the null hypothesis that were stated above of no
correlation are rejected as the P-values are lesser than 0.05.
5.1. 5Regression:
Regression is used to check the effect size of independent variable on dependent variable. The
value of the coefficient of determination (R2) is 0.31. This shows that the correlation between the
observed values of JS and the fitted value of the JP is 31% percent. The adjusted coefficient of
determination (adj. R2) shows is adjusted for the degrees of freedom. The value of the adjusted
coefficient of determination (adj. R2) is not affected. The value of F-statistic is statistically
significant at less than five percent that exhibits that in the estimated model at least one of the
partial regressions coefficients is different from zero.
Coefficients
Model
1
Unstandardized
Standardized
Coefficients
Coefficients
Std. Error
(Constant) 4.604
.313
JS
.081
.159
Beta
.175
a. Dependent Variable: JP
Necessary Statistics
62
Sig.
14.691
.000
1.970
.051
R2 = 0.31
F =3.882
SigF = 0.010
JP= C + B (JS) + Ei
JP= 4.604+.159(JS)
The coefficient table presents the results of the regression analysis. The objective of the
regression in this study is to find such an equation that could be used to find the impact of JS on
JP. The specified regression equation takes the following form:
The results show that the independent variables less significantly affect the employee job
performance as shown by the values of the t-statistic and the corresponding P-values. T-test is
used to test the significance of the individual partial regression coefficients. Null hypothesis in
this test is set as the partial regression coefficient is zero. This test shows that the coefficients of
the predictor are statistically significant at less than five percent level of significance.
Chapter 6
Summary & Conclusion
63
Chapter 6
6.0 Summary
The main reason of this study is to examine the study which will expand our understanding of
employees job performance by including the view of job satisfaction and the environment of job
satisfaction. It will explain how rewards, growth opportunities and working conditions effect
employee satisfaction and job performance. It will help to appreciate the relationship between
job satisfaction and job performance on banking sector in Pakistan. It will be important for the
policy makers to enlarge the job performance of the employees. It will further make stronger the
research findings regarding the background of job satisfaction. It will make easy the decision
makers on how to increase the satisfaction of the employees. This study uses the quantitative
method to check the proposed model in the situation of Pakistan and to see the research to the
large population with the sample size of 125 employees and students will be taken for conducting
the study by using simple random sampling in order to generalize the findings in the particular
64
sector. The purpose of this study is to develop and implement of such policies that improve job
performance that measured the factor in job satisfaction. Research linking job performance with
satisfaction and other factors has been studied since at least 1939 and started with the Hawthorne
studies (Roethlisberger & Dickson, 1939). It was found by Brayfield and Crockett (1955) that
there is only a minimal relationship between job performance and job satisfaction but Judge et al
(2001) cited that there are other studies by Locke (1970), Schwab & Cummings (1970), and
Vroom (1964) that have shown that there is at least some relationship between job satisfaction
and job performance.
Through an extensive literature review on initial model is proposed which encompass that how
rewards, growth opportunities, employee development imply on Job satisfaction and Job
performance. This study will firstly verify the impact of rewards, working condition and growth
opportunity on Job satisfaction and then verify the result of Job satisfaction on the Job
performance. The literature review has provided the basic theoretical evidence with regard to the
link between job satisfaction and job performance. This study also provides the link of job
satisfaction to reward, growth opportunities and employees development.
Questionnaire was developed for data collection reason on five variables (growth opportunities,
rewards, employees development, job satisfaction and job performance). Moreover, generally
speaking it is helpful for the employees to set reforms to enhance the job performance which is
likely to contribute in overall organizational success. Lastly, it enhances our understanding of an
under researched area of employees with respect to their performances and job satisfaction
support in banking sector of Pakistan. Therefore this study is an effort to examine the impact of
job satisfaction on job performance in the banking sector of Pakistan
65
Descriptive analysis used to describe the data by using descriptive summary as well as histogram
with normal distribution curve. Inferential analysis used to describe the relation between
variables by checking the acceptance or rejection of hypothesis
and to see the nature of
relationship between variables. In inferential portion the study tested the relationship between
(growth opportunities, rewards, employees development, job satisfaction and job performance).
After observing the scatter plot matrix, histogram, descriptive analysis and the correlations and
regression has been used for analysis purpose. In this correlations results show that Where three
variables GR, ED and JP are positively correlated to JS (r=.359, p = .000, and r=.433, p= .
000, and r=.545, p= .000 respectively). RE is negatively correlated to the JS (r=-.247, p =.041).
The magnitudes of the above discussed three correlations are greater than 0.33 in the absolute
terms, which shows the moderate correlations between the said pairs of the variables but the
correlation of RE is lesser than 0.33 in absolute terms, which shows the weak correlation
between JS and RE. As in this correlation explained that if the value Pearson correlation will be
increased 0.33 to 0.77 than there is strong relationship and if the value of Pearson correlation will
be greater than 0.77 than there is weak relationship. All the above correlations are statistically
significant at less than five percent level of significant. In the case of these correlations the null
hypothesis that were stated above of no correlation are rejected as the P-values are lesser than
0.05.
These findings shows that there were be lots of other factors that play role in enhancing job
performance in the banking sector but if we only make focus on The impact of job satisfaction on
job performance in the banking sector of Pakistan The regression show that the independent
variables less significantly affect the employee job performance as shown by the values of the tstatistic and the corresponding P-values. T-test is used to test the significance of the individual
66
partial regression coefficients. Null hypothesis in this test is set as the partial regression
coefficient is zero. This test shows that the coefficients of the predictor are statistically
significant at less than five percent level of significance
Despite the contributions of the study, several factors may limit the value of the findings
expected. First, I limited my study to the banking sector only, thus the results may not be valid in
other organizations secondly this study is also limited to single job within banking sector, that of
employees, selected because it represent a core job within banking sector and is critical to the
success of any organization
6.1Conclusion
Results of the study will be discussed after the analysis of the data collected from different
respondents to check the significance of proposed study. Further the implications of study for
both theoretical and practical purposes will be discussed. Further, scope for future research in
this area will be highlighted. This study aims at measuring the effect of human resource
management practices like autonomy; leadership behavior and team work on job satisfaction and
job performance. It attempts to measure the importance of each factor on level of job satisfaction
and its performance. Findings of the study indicate that there is a positive relationship between
autonomy, leadership behavior and team work environment and job satisfaction and job
performance. Though, leadership and teamwork environment influence more than autonomy on
employees job satisfaction and their performances. The results also portray a important
difference of level of job satisfaction and job performance.
6.2 Recommendation:
67
The banking sector in Pakistan is facing a tremendous change for several years. Not only number
of new entrants has increased competition in the middle of the banks, but economic condition,
political instability and energy crises affected on this industry which affected banking sector. As
a result, not only their business volume is declining, but the number of the business is also
declining. Due to this banking sector is experiencing rapid turnover. The results of this study are
not only beneficial for employers in private banks, but are also useful for public banks. Since this
study finds that employees weigh up more to management performance and team work
atmosphere, than independence, to improve their job satisfaction, so the management should
focus on leadership behavior to their employees, and should provide them with a good team
work environment which will enhance their level of job satisfaction. It will further decrease
absence and turnover. The experimental study of this work suggests that male employees should
be prioritized when formulating human resource strategies as compared to female employees.
Human resource strategies should not be devised on gender discrimination basis but include both
categories (Male and female). This study covers the effect factors like autonomy, leadership
behavior and team work environment on job satisfaction and its performance because in this
study both depend on each other.
68
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Appendix
73
QUESTIONNAIRE
1. What is your gender?
Male
Female
2. What is your age?

1. Under 20
2. 20-30
3. 31-40
4. 41-50
5. 50-60
6. Over 60
1. Does your department better work in the organization?
2. Would you satisfy with your job at your organization?
74
3. Are you committed to a long-term career with your organization?
4 Are youre satisfied with your performance of organization?
5. Do you think job performance effects by job satisfaction?
6. Growth Opportunities refers whether employee is given opportunity to develop in the

organization?
7. Would work-related output or outcome of employee effect on job performance?
8. In the field of human resource management, training and development is the field
concerned with organizational activity aimed at bettering the performance of individuals
and groups in organizational settings?
9. Does Job satisfaction effect Job performance in the manufacturing concerns of Pakistan?
75
10. Does job satisfaction growth employees performance?
11. Does rewards affect on job performance?
12. Does employee development affect on job performance?
13. Are customer satisfaction incentive schemes increasingly common in a variety of

industries?
14. How rewards, growth opportunities and working conditions effect job satisfaction and
performance?
15. Do you understand the relationship between job satisfaction and job performance
regarding manufacturing concerns in Pakistan?
76
THANK YOU!
77

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Table of contents:

Chapter 2: Literature Review......16

Chapter 3: Theoretical Framework.34

Chapter 6: summary/ conclusion.62

The impact of job satisfaction on job performance in the banking

differ from organization to organization. For organizations to address these expectations an

1.1 The purpose statement:

1.2 Objectives of Study:

To find the relation of job satisfaction on job performance.

To facilitate banking sector for increasing job performance.

To facilitate banking sector for increasing job satisfaction in employees.

To make stronger the findings on experience of satisfaction.

1.3 Significance of the Study:

1.4 Research Question and Hypothesis

1.5 Key Terms of the Study Defined:

Growth Opportunities refers whether employee is given opportunity to develop in the

Job satisfaction and Performance:

3.1 Norm of Reciprocity (Goudlner, 1960):

3.2Social Exchange Theory (Blau, 1964):

3.3Expectancy Theory of Motivation (Vroom, 1964):

3.5Two-Factor Theory (Motivator-Hygiene Theory):

It can oversee to probability samples.

It can be quick revolving around.

It can be administered to groups.

The anonymity by respondents possibly high.

There is an ease of data analysis for close-ended items.

It must be kept short.

The high ratio of non response to selective items

The analysis of data sometimes time consuming for open-ended items.

4.1 Sampling Technique and Sample

RELIABILITY ANALYSIS OF REWARDS:

RELIABILITY ANALYSIS OF JOB PERFORMANCE:

Minimum Maximum Mean

Histogram of Growth Opportunities:

Histogram of Employee Development:

Histogram of job performance:

5.1.3 SCATTER PLOT:

Scatter Plot of Growth Opportunities and Job Satisfaction:

Scatter Plot of Rewards and Job Satisfaction:

Scatter Plot of Employee Development and Job Satisfaction:

Scatter Plot of Job Satisfaction and Job Performance:

. Correlation is significant at the 0.01 level (2-tailed).

and to see the nature of

human assets. New York: The Free Press.

Brayfield, A. H. and Rothe, H. F. (1951). 'An index of job satisfaction'. Journal of

Relations, 44(3),335-358. lied Psychology 35 307-311.

Brown, S.P. (1996). A meta-analysis and review of organizational research on

Campbell, J. P. (1990). Modeling the performance prediction problem in industrial

Consulting Psychologists Press, Inc.

Methods Approaches, 2nd ed, London: Sage Publications Ltd.

Gouldner, A. W. (1960). The norm of reciprocity: A preliminary statement. American

Sociological Review, 25:161178.

Prentice Hall, Englewood Cliffs, NJ.

Herzberg, F., B. Mausner, R. O. Peterson, and D. F. Capwell, 1957. Job Attitude,

J. R. Hackman, G. R. Oldham (1976). "Motivation through design of work".

Organizational behavior and human performance

managerial and technical personnel

of Career and Technical Education Volume 20, Number 1

(Anderson et al. edited), SAGE.

job satisfaction in Taiwan.

Kalleberg, A. L., and K. A. Loscocco., (1983), Aging, Values and Rewards:

PLawler, E.E. (1990). Strategic Pay. San Francisco: Jossey-Bass Inc.articipation On

Dorsey, Homewood, IL.

resource practices in the teachers performance.