EXECUTIVE SUMMARY:

"Basically, job satisfaction is about linking your job and finding fulfillment in what you
do”. We have done research on this wide topic of employees’ job satisfaction with a
problem statement of, “To study the relationship of Salary and challenging job
Opportunities with the employees Job satisfaction”. There are many factors that affect
job satisfaction but here we are mainly dealing with the salary and challenging job
opportunities. We have slightly manipulated these two variables and then checked the
level of satisfaction after these manipulations. Our main objectives of this research were,
to solve the problem stated and to give the recommendations to the organization that how
can they increase the employees’ job satisfaction.

We have used primary data i.e. from face to face interviews and observation and the
questionnaires and the secondary data from the books, journals, internet and newspapers.
Employee satisfaction and retention have always been important issues and many authors
had published their researches and so we find much material in this context in past
studies which we have included in the literature review. Our theoretical framework
includes one dependent variable Employees Job Satisfaction and two independent
variables i.e.; Salary and Challenging Job Opportunities. The type of research we have
done was basic and nature of our study was descriptive. The researcher’s interference
was minimal and work was continuing in the natural environment. Basically our
population was all the employees doing jobs that involve some repetitive tasks. So we
have taken an organization and selected a sample of 40 employees from that organization
named as SHAHZAD INTERNATIONAL and then by giving the questionnaires to the
sample respondents in different departments of the organization, we gathered the required
data, in form of the responses of employees.

Then there were two hypotheses generated by us:

1) Ho: Change in the salary will change the job satisfaction of employees in

the same direction.

1
 H1: Change in the salary will change the job satisfaction of employees in

the opposite direction

2) Ho: Change in the challenging job opportunities will change the job

satisfaction of employees in the same direction.

H1: Change in the challenging job opportunities will change job

satisfaction of employees in the opposite direction.

Both of the hypotheses were substantiated and we find out and concluded that the
increase in the salary will increase the satisfaction level among employees.

We can also conclude that increase in challenging job opportunities will increase the
satisfaction level among employees after testing these hypotheses.

Then by looking the overall respondents we get the overall satisfaction level increases
with the increase in salary and challenging job opportunities but more with the salary as
compared to the challenging job opportunities.

We also find out by analyzing the data gathered that the current level of satisfaction
among high-income groups is not that much low and increases by the increasing their
challenging job opportunities and not have much impact of the salary. Satisfaction among
low-income groups is low and increases by the increase in their salaries. Impact of
increasing their challenging job opportunities in this case is not that much as with the
salary.

We also find out the approximately the same result with the job status as with the income
levels of the employees.

Although what we had claimed, is proved but as we can see that there is not vary large
affect on the satisfaction level, like it had not moved from dissatisfaction towards strong
satisfaction by manipulation of two variables. So our claimed is not strongly proved.

2
INTRODUCTION:

Job Satisfaction of Employees: With so many organizations undergoing significant

change in today's competitive environment, employee dissatisfaction is a frequent
occurrence. When dissatisfaction occurs, stability and organizational success are
threatened. For any organization seeking to improve processes, downsize operations,
improve customer service or grow in profitability, understanding and enhancing
employee satisfaction can benefit both employees and employer.

Now question arises that what is job satisfaction?

We can define job satisfaction as,

 A pleasurable, positive emotional state resulting from the appraisal of one’s job or

job experience.

 A person's general attitude towards their job satisfaction is a term used to describe

how content an individual is with their job.

 Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature

of their work.

 The pleasure derived from a job well done, from knowing that what you do is

appreciated, valuable to someone.

The company views employee satisfaction as an essential it results in,

 Increase in productivity

 Less turn over

 Increase in employee commitment

 Decrease in employees absenteis

So, increasing job satisfaction is not only important for its humanitarian value but also

for its financial benefit too.

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"Basically, job satisfaction is about linking your job and finding fulfillment in what you
do. It combines an individual's feelings and emotions about their and how their job
affects their personal lives” (1)

Job satisfaction is a degree which individual feel positively or negatively about various
aspects of the job including tasks, work setting, pay and relationship with supervisor and
other co-workers. According to Vroom (1967:99), job satisfaction is the reaction of the
workers against the role they play in their work. Similarly, Blum and Naylor (1968:364)
define job satisfaction as a general attitude of the workers constituted by their approach
towards the wages, working conditions, control, promotion related with the job, social
relations in the work, recognition of talent and some similar variables, personal
characteristics and group relations apart from the work life.

Employees with higher job satisfaction:

 believe that the organization will be satisfying in the long run

 care about the quality of their work
 are more committed to the organization
 have higher retention rates, and are more productive.

Problem Statement:

“To study the relationship of Salary and challenging job Opportunities with the
employees Job satisfaction”

Increasing job satisfaction is important for its humanitarian value and for its financial
benefit, due to its effect on employee behavior. Now as there are many factors that affects
the job satisfaction like;

 Salary
 Challenging Job Opportunities
 Work timings
 Stress

4
  Leadership
 Work standards
 Fair rewards
 Adequate authority

Now, here we are mainly dealing with the salary and challenging job opportunities and
have tired to calculate the relationship of them with employee job satisfaction, whether
their direction moves in the same direction or not? In this study we have identified three
variables i.e.; salary and challenging job opportunities and employee job satisfaction,
assuming that all other factors are kept constant. So we have checked out first the average
current job satisfaction level of the employees and then checked their average satisfaction
level with respect to the change in salary level or how much they are concerned with the
salary, and our claim is that if the job satisfaction level increases at this point from the
current level then we can say that salary and job satisfaction level of employees moves in
the same direction and same is the case for the challenging job opportunities, an
employee get in his their jobs.

Research Goals:

Our main objectives of this research are;

 To solve the problem stated and to rectify the problem statement and to check
whether factors are directly or indirectly related to job satisfaction.
 To give the recommendations to the organization that how can they increase the
employees’ job satisfaction.
 Find out the best solution in the sample organization, i.e.; the ways to increase the
level of the satisfaction among employees which in turn will automatically affect
many things as productivity, absenteeism etc.
 This research is of our academic interest and will be helpful in our future life.
 Will become the foundation of our future studies.

5
Importance/Benefits of the study: Some of the benefits/importance creating
points in our study are:

 Help us in understanding the relationship of salary i.e.; the economic reward and
opportunities i.e.; the non-economic reward with the employee satisfaction.
 Give us an understanding that employee satisfaction leads to the customer
satisfaction.
 If our hypotheses will be substantiated than we can say that increase in the job
satisfaction will increase the productivity of the employees.
 An understanding that employees should be given preference as compared to
technology because human resource is better than, as technology can fail but man
cannot when their is job satisfaction among him.
 By giving salary incentives to the employees they can improve their way of living
or living standards.
 They can also satisfy their social needs by accepting challenging opportunities.

PRELIMINARY DETAILS:

Sources of data: There are two sources of our data are; primary data i.e. from face to
face interviews and observation and the questionnaires and the secondary data from the
books, journals, internet and newspapers.

Literature review:

Employee satisfaction and retention have always been important issues and many authors
had published their researches and so we find much material in this context in past
studies. Reviews of the relevant material from literature for the better understanding of
this topic are given as under:

 This literature review gathers data to help determine the level of job satisfaction
among school principals. The data for this study is collected from information
obtained in a literature review of both current and earlier studies and reports that

6
 illustrate factors that affect the level of job satisfaction for school principals. The
research attempts to demonstrate that the following factors can affect a principal's
level of job satisfaction. It points out that these factors include, but are not limited
to, location and demographics of the school, principal-teacher relationships,
principal-student relationships, principal-parent relationships, and community’s
attitude towards the school, gender, wages and benefits. According to this
research Job satisfaction is defined as, basically, job satisfaction is about liking
one’s job and finding fulfillment in what one do. It combines an individual's
feelings and emotions about their and how their job affects their personal lives”(1)

 Bavendam Research has included measures of job satisfaction. Surveyed

included over 15,000, largely white collar, employees nationwide from all levels
of the participating organizations. 20% were managers/supervisors; 91% worked
full-time; average age was 33; there was an even proportion of males and females.
As part of a larger project whose goal was to create an employee-driven, survey-
improvement process [our MFI® process], Bavendam Research identified six
factors that influenced job satisfaction. When these six factors were high, job
satisfaction was high. When the six factors were low, job satisfaction was low. Of
these two are,

Opportunity: Employees are more satisfied when they have challenging opportunities
at work. This includes chances to participate in interesting projects, jobs with a satisfying
degree of challenge and opportunities for increased responsibility. Important: this is not
simply "promotional opportunity." As organizations have become flatter, promotions can
be rare. People have found challenge through projects, team leadership, special
assignments-as well as promotions.

Fair Rewards: Employees are more satisfied when they feel they are rewarded fairly for
the work they do. Consider employee responsibilities, the effort they have put forth, the
work they have done well and the demands of their jobs. (2)

 Author Jennifer L. Kettle RN, using literature review, investigates several aspects
of job satisfaction, and the impact of said factors on turnover rates in health care

7
 settings. Reviewed were research articles on each of the following factors
contributing: job satisfaction, productivity, burnout, turnover rates, and,
empowerment.

In this article, job satisfactions as well as dissatisfactions were investigated.

Questionnaires were mailed to 5,192 registered nurses (RNs), 1,780 of which were
returned and scored using several evaluation methods. (2001). Researchers looked at job
satisfaction, patient satisfaction and safety, extrinsic work values, role of the immediate
supervisor, and intent to stay in nursing. Extrinsic work values such as, job security,
salary, fringe benefits, and work schedules, are also considered to be important in job
satisfaction.

The authors used 150 nurses and the questionnaire method of investigation, and the
variables studies were: opportunity, information, support, resources, overall
empowerment, formal power, informal power, job tension, work effectiveness, and
achievement orientation.

In another article H. K. Spence Laschinger and D. Sullivan Havens, discussed testing of

the Kanter’s theory of organizational power. (Kanter, 1993). Based on Kanter’s work,
empowerment is defined as "…conditions [that] are created that enhance persons’ ability
and motivation to develop and make the most constructive use of their talents and
experience". (3)

 Job satisfaction is correlated with labor market behavior such as productivity,

quits and absenteeism. Recent work examined job satisfaction in relation to
various factors. In this paper four different measures of job satisfaction are related
to a variety of personal and job characteristics. We use a unique data of 28 240
British employees Workplace Employee Relations Survey (WERS97). Our data
set is larger and more recent than in the previous studies. The four measures of
job satisfaction considered are satisfaction with influence over job, satisfaction
with amount of pay, satisfaction with sense of achievement and satisfaction with
respect from supervisors. (4)

 MOTIVATION: by Manfred Davidmann Reviews and summarizes past work in

8
 Motivation. Provides a clear definition of 'motivation', of the ... Job Satisfaction -
Accountants and Engineers Challenging Job - Professional People and Manual
Workers.

"What motivates is a challenging job which allows a feeling of achievement,

responsibility, growth, advancement, enjoyment of work itself, and earned recognition.
Workers become dissatisfied when opportunities for meaningful achievement are
eliminated."

 Frederick Herzberg theorized that employee satisfaction has two dimensions:

"hygiene" and “motivation”.

Hygiene issues, according to Herzberg, cannot motivate employees but can minimize
dissatisfaction, if handled properly. In other words, they can only dissatisfy if they are
absent or mishandled.

Hygiene issues, such as salary and supervision, decrease employees' dissatisfaction with
the work environment. Motivators, such as recognition and achievement, make workers
more productive, creative and committed. (5)

 Application of the apply Herzberg's theory to real-world practice begin with the
hygiene issues: Company and administrative policies, Supervision, Salary,
Interpersonal relations, Working conditions, Work itself, Achievement,
Recognition, Responsibility, Advancement. Salary is not a motivator for
employees, but they do want to be paid fairly. If individuals believe they are not
compensated well, they will be unhappy working for their jobs. Consult salary
surveys or even your local help-wanted ads to see whether the salaries and
benefits the one is offering are comparable to those of other offices in one’s area.
(6)

 Randall S. Hansen worked on an employee named Jamie, who once loved his job
and the accomplishments he achieved in it. Then he was dissatisfied with his job
and he worked on it and then concluded that dissatisfaction begins with a

9
 downward spiral of missed promotions, increased sick days, poor performance
evaluations, and lost salary increases.(7)

 Director of the consumer research center for the Conference Board in New York,
Franco suggested that there may have been sharp declines in many areas of job
satisfaction in the American work force since 1995. Wages weren't as satisfying,
in the study's findings. The number of respondents saying they were satisfied
went down by 9.4 percent -- dropping from a rating of 39.3 in 1995 to 35.6 this
year. Money may not be everything, but the Conference Board study does tend to
show the lowest satisfaction levels occurring among those respondents who make
the least.(8)

 Szymanski and Hershenson (1998) defined job satisfaction as an outcome

resulting from the interaction of several variables. For people with disabilities or
chronic illnesses, three factors can affect satisfaction with employment--extrinsic
factors such as wage and salary levels (Bokemeier & Lacy, 1986), chronic illness
or disability factors affecting one's ability to perform work tasks (Hershenson,
1996), and subjective factors such as perceived job match and job tenure (Dawis,
2002).(9)

Low Pay, Higher Pay and Job Satisfaction within the European Union: Empirical
Evidence from Fourteen Countries. Author Luis Diaz-Serrano (National
University of Ireland Maynooth, CREB and IZA Bonn) and Jose A. Cabral Vieira
(University of the Azores and CEEAplA) examine differences in job satisfaction
between low- and higher-paid workers within the European Union (EU). To do so
The European Community Household Panel Data covering the period 1994-2001
used.

Results indicate that low paid workers report a lower level of job satisfaction when
compared with their higher paid counterparts in most countries, except in the UK.
This supports the idea that low-wage employment in these countries mainly comprises
low quality. The results also indicate that gap in average job satisfaction between low-
and higher-paid workers is markedly wider in the Southern European countries than in

10
the rest of EU. (10)

Theoretical framework:

Here we have one dependent variable Employees Job Satisfaction and two independent
variables i.e.; Salary and Challenging Job Opportunities. Given on the is the
diagrammatical representation of this theoretical framework.

Salary

Job Satisfaction

Challenging
Job
Opportunities
.

Dependent variable
Independent variable

Theoretical framework

Hypotheses Formulated:

Now we have formulated two hypotheses;

11
 1) Ho: Change in the salary will change the job satisfaction of employees in the
same direction.
H1: Change in the salary will change the job satisfaction of employees in the
opposite direction.
OR
Ho: Increase in the salary will result an increase in the job satisfaction
of employees.
H1: Increase in the salary will result in a decrease in the job
satisfaction of employees.

2) Ho: Change in the challenging job opportunities will cause the change
in the job satisfaction of employees in the same direction.
H1: Change in the challenging job opportunities will cause the change
in the job satisfaction of employees in the opposite direction.
OR
Ho: Increase in challenging job opportunities will result an increase in the
job satisfaction of employees.
H1: Increase in challenging job opportunities will result in a decrease in the
job satisfaction of employees.

RESEARCH DESIGN:

Type and nature of the study: The type of research we have done is basic. The
nature of our study is descriptive and is undertaken to understand the characteristics of
organizations that follow certain common practices. It is correlational studies done to
check relationship between variables.

Research interference: The researcher interference was minimal because we had

just given questionnaires to the employees and they had just filled them and we are
returned with the responses and there was not more than this disturbance in their normal
work routine than just spending some time in filling these questionnaires.

12
Study Setting: Research was done in the Non-contrived settings i.e.; in the natural
environment.

Unit of analysis: Our unit of analysis was individual employees.

Time Horizon: Our study was cross-sectional or one shot.

RESEARCH METHODOLOGY:
Population: Basically our population was all the employees doing jobs that involve
some repetitive tasks. The reason was that we want to give them a change like
challenging job opportunities and then to study their behaviors with respect to their job
satisfaction and this was only possible with that kind of employees.

Sample: Then as we can’t study whole of the population so we have taken an

organization and selected a sample of 40 employees from that organization named as
SHAHZAD INTERNATIONAL 15, Nazimuddin Road, SectorF-10/4, Islamabad,
Pakistan.

Now we have taken random samples from different departments of their Islamabad
office. Our sample consist of every management level, Top Management, Middle
Management, Operational Managers and non-managerial.

Company’s Profile: Shahzad International is a dynamic and result oriented Company

with an experience of quarter of a century. It has emerged as a major integrated service &
trading house in Pakistan. It is a supplier of general machinery, equipment, sophisticated
material and services to energy related industries in Pakistan and else where in the region.
It is a reputable Business House with worldwide contacts and business experience of over
25 years.

Shahzad International has played a commendable role in bringing world-renowned

multinational companies to Pakistan for substantial investment in oil and gas sector,
which has culminated into large discoveries of gas in the provinces of Sindh and

13
Balochistan.
Over two decades of proven track record, experience and growth, has credited Shahzad
International as a leading Pakistani corporate entity.

• Services Offered: Over two decades of experience in multifarious business

activities has credited Shahzad International to emerge as a leading corporate
entity in the fields of Oil & Gas Upstream and Downstream Equipment &
Services, Oil Refining, Oil & Gas Pipelines, Gold Prospecting & Exploration,
Metallurgy, Minerals, gemstones and industrial rocks, Coal washing and coal
gasification, Defence Procurement, Security Documents, ID Cards, Machine
Readable Passports etc, Computerized Vehicles Licencing Systems, Security
Services including Police Wireless Systems, VIP Security Systems, Geographical
Information System (GIS), Automatic Mapping Facility Management Systems,
Power Generation, Petrochemical, Chemical, Environment and Pollution
Treatment, Ports and Shipping, Highways and Railroads, Telecommunication,
Civil Aviation, Civil Construction, Airports & Hotels, Consulting Services /
Feasibility, Project Management, Engineering Services, Mining and Mineral
Development, Procurement of all types of Machinery and Equipment,
Agriculture. They are offering services in these fields.

• Structural aspects: The Company has divisions as petroleum, energy, mineral

wing, personnel and administration construction, headed by a professional
manager. Individual functions have the necessary technical and organizational
capability to pursue work assignments of a specialized nature with a degree of
autonomy.
The company maintains an integrated team of experienced administrative, management,
engineering, construction and support personnel who are highly motivated. In-house
personal computers ensure fast and accurate preparation of business proposals. The
company has a complete library of standard products, materials and equipments to
expedite the preparation of quotations. The company is experienced in all phases
including project management, engineering, and construction. They possess well-
developed professional skills and use finely-tuned procedural techniques. Each function

14
or department, whether of technical or support service in nature, is headed by a manager
or senior technical specialist with broad industry experience. SI is based in Pakistan and
has offices in U.K. and Canada. Regional and overseas operations are controlled and
supervised directly by the corporate headquarters, Islamabad, Pakistan. Mr. Zaheeruddin
is the chairman and chief executive of Shahzad International group of companies.(11)
DATA COLLECTION:
Now we had done a survey to collect the required data, after the collection of the initial
data, by giving the questionnaires to the sample respondents in different departments of
the organization. We have send 50 questionnaires and get returned back with 40 and rest
of them were unfilled or incomplete which we had to discard. The questionnaire
instrument used in the survey is given in the appendix and its description is given below.

Survey Questionnaire: Now the questionnaire given is to check the relationship

and the direction of relationship of these three variables i.e.; employee job satisfaction,
salary and challenging job opportunities which contains all closed ended questions but
only one open ended question to represent the feelings of the respondent is given but with
the exception of few respondents mostly left it blank. At the beginning of the
questionnaire confidentiality is being ensured, so that every participant can answer the
questions without any hesitation.

Now, it basically consists of undifferentiated four sections. First contains four important
questions to get demographic and basic information of the respondent. We have given
significant ranges in the options to be encircled.

Now after this section there are 25 questions having more three subsections, in which five
options are given to the participant i.e.; Strongly Agree, Agree, Neutral, Disagree,
Strongly Disagree and each is allocated a number 1,2,3,4 and 5 respectively.
Second section consist of consist of question #1 to question #7, which measures

the overall current level of job satisfaction of an individual.

Third section consists of question # 8 to question # 17, which measures the job
satisfaction of an individual with respect to the pay level.

15
Fourth section consists of question # 18 to question # 25, which measures the

job satisfaction of an individual with respect to the challenging job opportunities

including full freedom, authority and newer or challenging jobs.

In this questionnaire there are 11 questions whose scaling should be reversed and are
indicated by (R) at the end of the questions for only our own convenience and were not
shown to the respondents because they can create confusion in their minds.

Scoring information: Now the numbers we have allocated to different options i.e.;
from 1 to 5 actually represent the satisfaction level of an individual. As the number
moves below 3 it means satisfaction is increasing and as it moves up from 3 it means
satisfaction is decreasing. Or we can say it like that 1 shows strong satisfaction, 2
satisfaction, 3 as neither satisfaction nor dissatisfaction, 4 as dissatisfaction and 5 as
strong dissatisfaction.
Here first of all every reverse questions were decoded i.e.; for example a person scoring
5 on the first question means 1 actual score. Similarly, 4 means 2, 3 remains same i.e.; 3,
2 means 4 and 1 means 5. Then sum of score of first eight question measuring the current
level of job satisfaction of an individual respondent, is calculated and is divided by eight
i.e.; its average is taken. Similarly averages of all 40 respondents for first eight questions
are taken and treated as dependent variable X1 having 40 values. Similarly each of next
two sections are treated and taken as X2 for the second section measuring the job
satisfaction with respect to the salary and X3 for the third section measuring job
satisfaction with respect to the challenging job opportunities. So we get 3 series of
variables X1, X2 and X3. Then both the hypotheses are tested using these values. Also
proportion of responses showing different levels of satisfaction is calculated for each
question. (Appendix B, Table V)

FINDINGS, ANALYSIS AND INTERPRETATIONS:

(1)- Findings:
The details of respondents who responded properly and we included them in our analyses
are given in Appendix B.
Table I in Appendix B shows that our respondents included 20 respondents from top

16
management, 9 from middle management, 20 from operational managers and from 8 non-
managerial.
Table II in Appendix B shows that our respondents included 0 respondents from age
group under 20, 30 from 21-35, 7 from 36-50, 3 from 51-65 and 0 from 65 and above
group.
Table III in Appendix B shows that our respondents included 2 respondents from income
group of Less than 10,000, 20 from 10,001-20,000, 8 from 20,001-30,000, 6 from
30,001-40,000, 3 from 40,001-50,000 and 1 from 50,001-Above group.
Table IV in Appendix B shows that our respondents included all male respondents and 0
female respondents.

(2)- Findings:
As respondents are not in equal proportion in each group, so we have used the percentage
of number of respondents, whenever data was needed about these categories, like see in
Table V in Appendix B, which shows the percentage of respondents showing different
levels of satisfaction against each item or question in percentage of respondents favoring
different levels of satisfaction for each of the given situation in all of the 25 questions.

(3)- Findings: Now, after doing some calculations we get the overall average level of
satisfaction with respect to each variable in table 1.1
Table 1.1 Figure 1.1

Levels3.1 of satisfaction: Mean score

Current leve l

Current3 level(X1) 3.02

2.9

Level2.8 with respect toLevel w ith

respect to
2.7 2.60
increase in
increase
2.6 in salary (X2)
salary

Level2.5after increase inLevel after

increase in
2.4 2.69
challenging job
challengingM ean score jobopportunitie s
opportunities (X3)

Analysis: Table 1.1 shows that mean

17
 score for current level of satisfaction is 3.02 shows that there is slight dissatisfaction
among employees. Afterwards the satisfaction level increases i.e.; its numeric value
goes down to 2.60 when they are given a rise in the salary. The mean score for
satisfaction after increase in challenging job opportunities goes down but with less
proportion as compared to the one with rise in salary but overall satisfaction
increased. Figure shows the same result more clearly but remember that the more the
height of bars in figure, less will be the satisfaction. So, overall satisfaction level
increases with the increase in salary and challenging job opportunities but more with
the salary as compared to the challenging job opportunities.

(4)- Findings:
Testing of Hypotheses:
(1)- Ho: Increase in the salary will result an increase in the job satisfaction
of employees.
H1: Increase in the salary will result in a decrease in the job
satisfaction of employees..

i.e; Ho: μx2 < μx1 or μx2 - μx1< 0

H1: μx2 >μx1 or μx2 - μx1> 0

Now as we have used t-distribution in order to test these hypotheses. We have
following data as, mean of differences i.e.; Mean(X2 - X1) = μx2-x1= -0.51
Sx2-x1 = 0.83 By using this data we get calculated value of t as, t = -3.89
Using 95% level of confidence, we
Figure 1.2
get critical region as, t > 1.6853
means that if our calculated value of 95% 5%

t lies in this interval, then our Ho

will be rejected but as our value is,
t = -3.89 < 1.6853, so we get
0 1.6853 t

the result that our null hypothesis is accepted as shown in figure 1.2.

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 Analysis: We can conclude that increase in the salary will increase the satisfaction
level among employees.

(2)- Ho: Increase in challenging job opportunities will result an increase in the
job satisfaction of employees.
H1: Increase in challenging job opportunities will result in a decrease in the
job satisfaction of employees.

i.e; Ho: μx3 < μx1 or μx3 - μx1< 0

H1: μx3 >μx1 or μx3 - μx1> 0

Now as we have used t-distribution in order to test these hypotheses. We have
following data as, mean of differences i.e.; Mean(X3 - X1) = μx2-x1= -0.34
Sx2-x1 = 12.9 By using this data we get calculated value of t as, t = -0.17
Using 95% level of confidence, we Figure 1.3
get critical region as, t > 1.6853
means that if our calculated value of 95% 5%

t lies in this interval, then our Ho

will be rejected but as our value is,
t = -0.17 < 1.6853, so we get
the result that our null hypothesis is 0 1.6853 t
accepted as shown in figure 1.3.
Analysis: We can conclude that increase in challenging job opportunities will increase the
satisfaction level among employees.

(5)- Findings: Now average satisfaction level of employees with respect to the income
groups is shown in Table 1.2.
Analysis: Figure 1.4 describes the Table1.2 clearly by looking at the height of bars. In
income group of Less than 10,000, there is an increase in satisfaction level with an increase in
salary and challenging job opportunities but proportion of change in the former is more than the
latter one. So we can say that these income groups are more satisfied with salary than does

19
challenging job opportunities.
Income group of 10,001-20,000, here again case is same like the previous income group so
same conclusion can be made.
In income group of 20,001-30,000, there is an increase in satisfaction level with an increase in
salary and challenging job opportunities but proportion of change in the former is more than the
latter one. So we can say that these income groups are more satisfied with salary than does
challenging job opportunities. But if we compare them with the previous groups more change
here is with the challenging job opportunities.
In income group of 30,001-40,000, there is an increase in satisfaction level with an increase in
salary and challenging job opportunities but proportion of change in the challenging job
opportunities is more than the salary. So we can say that these income
groups are more satisfied with challenging job opportunities than the salary.
In income group of 40,001-50,000, there is an increase in satisfaction level with an increase in
salary and challenging job opportunities but proportion of change in the challenging job
opportunities is more and salary has very small impact on their satisfaction. Again we can say
that these income groups are more satisfied with challenging job opportunities than the salary.
In income group of 50,001-Above, there is a decrease in satisfaction level with an increase in
salary, but increase in satisfaction level with increase in challenging job opportunities. This is
an extremely different case. Though not a great change but average satisfaction level decreases
and the other one increases far more. So, we can say that these income groups are more
satisfied when they get more challenging job opportunities. But the salary does not change
their satisfaction.

Figure 1.4

20
 3.5
3
2.5
2
1.5 Current le
1 of satisfac
With 11) 0.5 Satisfaction levels
0

Less 10,001- 20,001- 30,001- 40,001- 50,001- With

20,000 30,000 40,000 50,000
than Above Challengi
10,000
Opportun
Income Groups

Table 1.2.
Satisfaction level after increase in
Income Group Current Salary Challenging Job
(Rs) Satisfaction level Opportunities
Less than 10,000 3.30 2.50 3.00
10,001-20,000 3.10 2.62 2.80
20,001-30,000 3.30 2.73 2.80
30,001-40,000 2.80 2.70 2.60
40,001-50,000 3.10 2.90 2.70
50,001-Above 2.40 2.42 2.13

(6)- Findings: Now look at figure 1.5 which can easily be explained by table 1.3
Table 1.3.
Satisfaction level after an increase in
Job Status Current Salary Challenging Job
Satisfaction level Opportunities
Top Management 2.70 2.50 2.20
Middle Management 3.20 2.65 2.60
Operational Manager 3.00 2.65 2.80
Non-Managerial 3.40 2.79 3.10

Analysis: Now, if we look according to the management level it does also make some
difference.

21
First at the Top management level, we can see from table and graph that there is more
proportionate change in the satisfaction level of employees when we give them more
challenging job opportunities as compared to the salary. There is some increase in the
satisfaction level with increase in salary but it is less than the other factor. The reason may be
that their salaries enough for them and now they are moving towards their achievement needs
as described in Abraham Maslow’s Hierarchy of needs theory.
Then, at the middle-management level, we can see from table and graph that again the level of
satisfaction changes slightly more with the increase in challenging job opportunities than does
the salary. But here both changes with more proportion from the current level of satisfaction
than the previous group.
Then, at the operational-management level, we can see from table and graph that it moves from
dissatisfaction towards satisfaction, it increases with the increase in both variables but changes
more with the increase in the salary than does the challenging job opportunities.
At non-managerial level, again it moves from dissatisfaction towards satisfaction but salary
changes with more proportion than does challenging job opportunities.
Figure 1.5

4
3.5
Current
3
2.5
Salary
2
1.5
Challenging Job
1
Opportunities
0.5
0
Management

Management

Operational

Managerial
Manager
Middle

Non-
Top

Job Status

That’s why we have taken them under consideration. Conclusions and recommendations, we
have made by only considering these two variables with different dimensions and considered
other variables as constant.

22
LIMITATIONS OF RESEARCH:
Our research had certain limitations, which were as follows:
 Lack of experience in survey research.
 A major limitation was willingness and availability of the respondents.
 Our sample was small, so it does not shows the opinions of whole population. We used
average satisfaction to generalize but that may not be applicable to every one.
CONCLUSIONS:
After the analysis we have done and looking at the data we have obtained from the employees
as our respondents, we made some conclusions that are as follows:
 Both variables understudy have direct or positive relationship with employees’ job
satisfaction.
 So, overall satisfaction level increases with the increase in salary and challenging job
opportunities but more with the salary as compared to the challenging job opportunities.
 If we look at the employees with respect to the income level we can say that current
satisfaction among low-income groups is low and increases by the increase in their
salaries. Impact of increasing their challenging job opportunities is not that much as
with the salary. We can say this is because of having not enough income for their
needs.
 Current satisfaction among high-income groups is not that much low and increases by
the increasing their challenging job opportunities and not much impact of the salary
because they have enough income for their needs and want recognition and
achievement.
 As job status moves up the current satisfaction level increases more with the increase in
challenging job opportunities not that much more with salary. Because they want to
have freedom and autonomy and authority along with income.
 As job status moves down the current satisfaction level increases more with the
increase in salary not that much more with challenging job opportunities.
 Theses are not only two variables that influence job satisfaction more but many other
factors also affect like job status, income group and age, as our analysis shows that our
claim was right but not very strong that only these two factors play key role in

23
 increasing job satisfaction.
Although what we had claimed, is proved but as we can see that there is not vary large
affect on the satisfaction level, like it had not moved from dissatisfaction towards strong
satisfaction by manipulation of two variables. So our claimed is not strongly proved.

RECOMMENDATIONS:

On the basis of the conclusions we made given on the previous page on the basis of facts and
findings we get after survey, we have given the organizations some recommendations that they,
if consider appropriate can apply to get better results, are as following:

 Both of these variables are important in determining job satisfaction of an employee, so

they should be given considerable importance.
 Employees with high income should be given opportunities to do some challenging
projects with full freedom and authority, so that they can feel their importance in the
firm and they should be satisfied with their jobs. Also their jobs that they are doing in
their routine work should be made attractive by involving some authority or
challenging aspects.
 Employees with low income should be given more salary so that they can feel their
work has been justified with their salary. Then they will be satisfied with their jobs and
will contribute more towards their jobs. They should also be given some jobs that are
challenging but not that much challenging as to the higher income groups. Overall
result will be more satisfaction, more productivity, less absenteeism and greater will be
the company’s performance, as we know that job satisfaction contributes more towards
the company’s performance.
 Employees at high level of management should be treated in the same way as high-
income groups because they want their recognition and want of achievement is high in
them.
 Similarly, employees at low level should be treated as low-income groups. Because

24
 they want to fulfill their basic needs and that can be done with increase in salary or
giving them justified salary according to the work they do.

If there is any other case, like an employee having high post but not much pay, then he should
be given both increment in salary and provided with more challenging job opportunities, in
order to increase satisfaction level.

25
REFERENCES:

1) http://www.academon.com/lib/essay/job-satisfaction.html

2) Bavendam Research, Incorporated, “Managing Job Satisfaction”, Special reports,

Volume 6, http://www.employeesatisfactions.com/

3) Jennifer L. Kettle RN, “Factors Affecting Job Satisfaction in the Registered Nurse”,
http://juns.nursing.arizona.edu/articles/Fall%202002/Kettle.htm

Saziye Gazioglu (Department of Economics, METU) & Aysit Tansel (Department of

Economics, METU); “Job Satisfaction in Britain: Individual and Job Related
Factors”,http://ideas.repec.org/p/met/wpaper/0303.html

F. Herzberg, et al, 1959 {2}, Job Satisfaction & M. Scott Myers, 1964 {3}, Challenging Job,”
MOTIVATION” ,http://www.solbaram.org/articles/motvtnsu.html

4) J. Michael Syptak, MD, David W. Marsland, MD, and Deborah Ulmer, PhD, “Job
Satisfaction: Putting Theory Into Practice”, Journal “Family Practice Management”;
October 1999; http://www.aafp.org/fpm/991000fm/26.html

5) Randall S. Hansen, Ph.D.;”Job Satisfaction Quiz:

How Satisfied Are You with Your Jobs?”
http://www.quintcareers.com/job_satisfaction_quiz.html

6) Porter Anderson, CNN.com/career Editor, “'Job satisfaction': Oxymoron?”, October

24, 2000,Web posted at: 2:21 p.m. EDT (1821
GMT);http://www.cnn.com/2000/CAREER/trends/10/23/job.dissatisfaction/

7) Hershenon, D. (1996). A systems reformulation of a developmental model of work

adjustment. Rehabilitation Counseling Bulletin, 40, 2-9.; Dawis, R. (2002). Person-
environment-correspondence theory. In D. Brown & Associates (Eds.). Career choice
and development (pp. 427-464). San Francisco: Jossey-Bass; Szymanski, E., &
Hershenson, D. (1998). Career development of people with disabilities: An ecological

26
 model. In R. Parker & E. Szymanski (Eds.), Rehabilitation counseling:Basics and
beyond (3rd ed., pp, 327-378), Austin, TX; PRO-
ED ,http://www.findarticles.com/p/articles/mi_m0825/is_3_70/ai_n6237491/pg_5

8) (http://ideas.repec.org/p/iza/izadps/dp1558.html)

9) http://www.shahzadintl.com.pk/pe/pemain.htm

27
 APPENDIX-A

SURVEY QUESTIONARIE

Department of Administrative
Sciences,
Quaid-i-Azam University,

This questionnaire is developed to study the job satisfaction of

employees. Your responses can help in our understanding a lot. So
you are kindly requested to please respond to questions honestly.

Please encircle your choice.

1) Job status:
1. Top Management
2. Middle Management
3. Operational Manager
4. Non-Managerial

2) Age (Years):
1. Under 20
2. 20-35
3. 36-50
4. 51-65
5. Over 65

3) Monthly Income (Rs):

1. Less than 10,000
2. 10,001-20,000
3. 20,001-30,000
4. 30,001-40,000
5. 40,001-50,000
6. 50,001-Above

28
 4) Gender:
1. Male
2. Female
Please circle one number for each statement:
Strongly
Strongly
Agree Agree Neutral
Disagree Disagree
1. I enjoy while doing my job………………….......................1.............2.............3............4
5
2. Generally speaking I am very satisfied with my staff...........1.............2.............3............4
5
3. Doing my work is not a great fun. (R)……..........................1.............2.............3............4
5
4. Most of my colleagues are very satisfied with the job..........1.............2.............3............4
5
5. I frequently think of quitting this job. (R).............................1.............2.............3............4
5........................................................................................................................
6. I am satisfied with the working environment of
this job...................................................................................1.............2.............3............4
5
7. I find much of my job repetitive and boring. (R)..................1.............2.............3............4
5
8. I have a good feeling that I am earning something for
what I do………………………...........................................1.............2.............3............4
5
9. I seldom think about my salary and promotions. (R)............1.............2.............3............4
5
10. I am satisfied with my job because my pay is reasonable... .1.............2.............3............4
5
11. Whenever there is a high pay raise, I feel very good about
my job……..........................................................................1.............2.............3............4
5
12. I do not care if I have been given an assignment to work
late hours but without an additional pay. (R)........................1.............2.............3............4
5
13. I feel very stressed if no financial reward is given
on the given job done............................................................1.............2.............3............4
5

29
 14. If given a project with a promise to have an increase
in pay, I feel very satisfied....................................................1.............2.............3............4
5
15. It does not make any sense to do a good job
without getting a fair pay. (R)……………….......................1.............2.............3............4
5
16. As long as I can do what I enjoy, I am not concerned
about what I am paid. (R).....................................................1.............2.............3............4
5
17. I feel that I should get more pay in my present job..............1.............2.............3............4
5
18. I enjoy tackling the problems that are completely new
to me......................................................................................1.............2.............3............4
5
19. I am more comfortable when I can set my own goals……...1............2.............3............4
5
20. I enjoy relatively simple, straightforward tasks. (R).............1.............2.............3............4
5
21. Whenever I have a job that is challenging, I feel very
stress and not satisfied. (R)..................................................1.............2.............3............4
5
Strongly
Strongly
Agree Agree Neutral
Disagree Disagree

22. I feel very comfortable whenever I get an assignment

without the manpower to complete it. (R)............................1.............2.............3............4
5
23. I enjoy when the task given to me is very challenging.........1.............2.............3............4
5
25. I prefer to take a moderating difficult assignment rather than
an extremely challenging one. (R)........................................1.............2.............3............4
5
26. I feel very happy to get an opportunity of working
independently, with full freedom and no interference
of my supervisor to achieve a predefined goal.....................1.............2.............3............4
5

30
 Anything that you want to say after filling this
questionnaire?

_________________________________________________________________________
________________________________________________________________________

Thanks a lot for giving your precious time and for

your cooperation.

31
 APPENDIX-B

TABLES

Table I
Job status Top Middle Operational Non-
Management Management Manager Managerial
Respondents 3 9 20 8

Table II
Age (Years) Under 20 20-35 36-50 51-65 Over 65
Respondents 0 30 7 3 0

Table III
Income Group Less than 10,001- 20,001- 30,001- 40,001- 50,001-
20,000 40,000 Above
10,000 30,000 50,000
Respondents 2 20 8 6 3 1

Table IV
Gender Male Female
Respondents 40 0

Table V

32
Question Respondents (%)
Number:
Scores
1 2 3 4 5
Strong Neither Strong
Satisfaction Satisfaction Satisfaction Dissatisfaction dissatisfaction
Nor
Dissatisfaction
1 50 35 10 5 0
2 15 27.5 45 10 2.5
3 0 42.5 20 22.5 15
4 5 30 37.5 25 2.5
5 7.5 50 12.5 20 10
6 12.5 27.5 37.5 12.5 10
7 2.5 25 12.5 25 35
8 20 20 40 15 6
9 7.5 27.5 32.5 20 12.5
10 12.5 27.5 27.5 27.5 5
11 40 35 17.5 7.5 0
12 10 35 30 15 10
13 5 22.5 27.5 30 15
14 47.5 32.5 15 5 0
15 7.5 27.5 30 27.5 7.5
16 20 20 25 17.5 17.5
17 27.5 30 22.5 20 0
18 52.5 30 12.5 2.5 2.5
19 52.5 32.5 10 2.5 2.5
20 2.5 15 12.5 40 30
21 10 42.5 22.5 12.5 12.5
22 12.5 20 42.5 22.5 12.5
23 40 37.5 15 7.5 0
24 0 10 25 42.5 22.5
25 52.5 27.5 15 5 0

33