Impact of Income and Psychological Ownership on Worker Performance

The assignment content highlights two important points: Firstly, it is stated that majority of the workers strongly disagree that psychological ownership provides ability to advance coordination at the workplace, while a few employees strongly agree with this notion. Secondly, the research conducted among 221 workers suggests that most employees believe that work commitment and job satisfaction can be improved through consideration of psychological ownership factors, with many respondents strongly agreeing with this idea.

Dissertation
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Table of Contents
1.1Imperial Studies on Employee’s Satisfaction.............................................................................5
1.2Imperial Studies on Employee’s Psychological Ownership.......................................................7
1.3.1Factors contributing to employee satisfaction at workplace.............................................10
..................................................................................................................................................10
1.4 Background.........................................................................................................................12
1.5 Rational...............................................................................................................................13
1.6 Aim and Objectives.............................................................................................................14
1.7 Research question................................................................................................................14
1.8 Focus and purpose...............................................................................................................15
1.9 Dissertation structure..........................................................................................................16
1.10 Framework and analysis....................................................................................................17
1.11 Significance of the research..............................................................................................18
CHAPTER 2: LITERATURE REVIEW.......................................................................................19
2.0: Literature Review...................................................................................................................19
2.1: Definition of Key Concept......................................................................................................19
2.2 Theoretical gap....................................................................................................................24
2.3.1 Maslow's need hierarchy theory.......................................................................................25
2.3.2 Herzberg two factor theory..............................................................................................26
2.4 The Concept of Work Performance....................................................................................27
2.5 Conceptual Framework.......................................................................................................29
2.6 Co-relationship between satisfaction level and employee performance.............................31
2.8 Dimensions of psychological ownership of employees......................................................37
2.9 Conclusion...........................................................................................................................39
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................41
3.1 Introduction.........................................................................................................................41
3.2 Research philosophy...........................................................................................................41
3.3 Research design...................................................................................................................43
..................................................................................................................................................43
3.4 Research methodology........................................................................................................43
3.5 Data collection....................................................................................................................44
3.6 Sampling.............................................................................................................................45
3.7 Data analysis.......................................................................................................................46
3.8 Validity and reliability........................................................................................................46
3.9 Ethical considerations.........................................................................................................47
3.10 Research limitations..........................................................................................................48
3.11 Accessibility issues...........................................................................................................48
CHAPTER 4– DATA ANALYSIS...............................................................................................50
4.1 Introduction.........................................................................................................................50
4.2 Discussion...........................................................................................................................50
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................69
5.1 Conclusion...........................................................................................................................69
5.2 Recommendation.................................................................................................................71
REFERENCES..............................................................................................................................73
APPENDIX....................................................................................................................................79
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Questionnaire............................................................................................................................79
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1.0: Introduction
Ultimate aim of any organization is to gain maximum profit. With the initiation of globalization,
one of the major challenges for managers is to develop valuable strategies for human resource to
perk up business performance. Job satisfaction that describes how happy a person is with his /
her job. According to, a number of studies job satisfactions are a pleasurable or positive
emotional state resulting from the valuation of their work and experience (Jussila, Tarkiainen,
Sarstedt and Hair, 2015). Undefined optimistic attitude towards work and an enhanced
organizational commitment leads to greater job satisfaction which in return perks up the
performance of the individual.
The main purpose of this research is to investigate the impact of job satisfaction and job
performance to ward organizational commitment. And To highlight the effects of psychological
ownership on employee performance in Small and Medium Enterprises (SME's) in Kuala
Lumpur Malaysia.
Employees can be determined as one of the main and important resource within the firm. They
are the one who have direct interaction with customers. They present the products and services
that are being delivered by the firm. In this context, it is important to make sure that all the issues
that are being faced by employees are identified and solved so that they will be able to put on
their full efforts to make the organization achieve the goals and objectives. Workers involvement
and their interest towards the work is important that has to be considered so that they understand
that requirement and make improvement in their skills and capabilities so that perform better and
support the firm (Wong and Laschinger, 2013).
There are different departments and for each of them, there are employees who work together to
make sure that management will be able to achieve the organizational goals and objectives. One
of the issuers that affect the satisfaction level is conflicts. There are different type of reasons due
to which conflicts arises. This is one of the issues due to which performance of workers gets
negatively affected. However, it is important to make sure that there is proper interaction with
employees. This will enable to understand problems or issues that are being faced by them
(Ramos, Man and Ng, 2014). Further, interaction also enables to develop trust and confidence
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within the mind of people. This way it becomes helpful enough to reach out the areas in which
improvement is required to be achieved.
Imperial Studies on Employee’s Satisfaction
A number of studies had been done in relation to job satisfaction among the employees.
Optimized the performance of the employee are important so the route to achieved the end result
of generating greater income and optimized profit for the company will be more attainable, in
this section we going to highlight a number of the pioneer in this area.
Masooma Javed, et al (2014) focus to examine the satisfaction level of the employees and helps
organizations to know about the elements that influence job satisfaction. The authors utilized two
sections of variables in the research. Section 1 in the research mentioned on different personal
and demographic variables to attain the respondents’ information about gender, age, tenure,
income and education while Section 2 consists of the latent variables that include employee
empowerment, workplace environment, job performance, and turnover intention and job loyalty
towards job satisfaction (Mulki, Caemmerer and Heggde, 2015). The result shows that there are
significant positive associations of employee empowerment, workplace environment, job loyalty
and job performance with job satisfaction.
Hafiz Imran , et al (2014) intends to investigate the impact of job satisfaction and job
performance to ward organizational commitment. The authors adopted survey method to conduct
the research. There are five controlled variables i.e. Gender, Department, Education, Income and
Age in the research. In order to conduct the survey, dichotomous and interval scales were use to
measure the variables. The result of the search study is that the job performance of is strongly
associated with job satisfaction and these of two variables are coherent or in harmony.
Chung Jo Ey and Dr Rashad Yazdanifard (2014), the study discuss the factors that affect
employees' satisfaction and the impact of their satisfaction to the company's well-being and
sustainability of the company in the long run. The authors utilized the following variables i.e.
Corporate Culture, Pay Satisfaction, Management Style, Meaningfulness Of Work, Customer
Satisfaction Corporate Financial Performance, And Company’s Sustainability In The Long Run
in their studies in regards of job satisfaction among the employees' It has been verified in this
study that job satisfaction will directly affect employees' motivation and engagement in work and
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tend to link with customers' satisfaction, corporation's financial performance and sustainability,
in other word, profit.
determine the role of job satisfaction and commitment on job performance. There four affective
factors that includes organization, environment, the nature of the work and individual factor use
by authors in their research paper. The result of their research is that Kano model was used to
test the hierarchical correlation analysis of the hypotheses (Mafini and Dlodlo, 2014). Based on
the results, Pearson correlation coefficient was significant between job satisfaction and job
commitment at 99% that shows direct and strong correlation between two measures and means
that job commitment will increase by an increment in job satisfaction. The hypothetical impact
of job satisfaction and career Commitment on job performance was approved and Kano model
parameters are determined the factors that increase employee satisfaction.
Alamdar Hussain Khan, et al (2012) conducted research factors that influence level of job
satisfaction among the workforce and its effects on performance. The author using sampling
technique (questionaire) to collect data from Respondent. The questionnaire divided into two
parts, which the first section included the questions about pay, promotion, job safety and
security, working conditions, autonomy, relationship with co-workers, relationship with
supervisor and nature of work. The second part however focus on enumerate the demographic
factors like age, designation, education, experience, gender, job relevancy and nature of job
(Wong and Laschinger, 2013). The result of the research is that facet of job satisfaction such as
pay, promotion, job safety and security, working conditions, job autonomy, relationship with co-
workers, and relationship with supervisor, and nature of the work significantly affect the level of
job satisfaction.
Imperial Studies on Employee’s Psychological Ownership.
A number of studies had been done in relation to psychological ownership among the employees.
Optimized the performance of the employee are important so the route to achieved the end result
of generating greater income and optimized profit for the company will be more attainable, , in
this section we going shed some light on a number of the pioneer in this field .
Samsinar Md-Sidin , et al (2014) research paper focus on investigation of the impact of
psychological ownership, job performance, job commitment, and job satisfaction. The authors
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identify three factors that create psychological ownership among Respondent: (a) having control
over the target or object, (b) intimate contact or knowledge about the target or object, and (c)
investing the self to the target or object The result empirically shown that psychological
ownership has positive relations with job commitment, job satisfaction, and the three dimensions
of performance.
Divya K P.T.Srinivasan (2015) conducted to study is an attempt to build on the emerging theory
of psychological ownership, which has been developed over the last two decades and suggest the
scope for research on the influence work environment, psychological ownership and individual
work outcomes, The authors identify the following i.e efficacy and reflectance, self–identity and
having a place to dwell that create psychological ownership among Respondent (Knapp, Smith
and Sprinkle, 2014). The study has found that psychological ownership is an effective
managerial construct with significant practical implications for management.
Xie Qian (2016), the article reviews the latest research on psychological ownership from the
following three aspects: 1) theoretical background of psychological ownership; 2) connotation
and measurement of psychological ownership; 3) formation mechanism and influence
mechanism of psychological Ownership and also reveals the formation mechanism, the impact
mechanism and interpretation of psychological ownership from local organization members’
perspective under Chinese culture. The authors utilized the following variables i.e. Corporate
Culture, Pay Satisfaction, Management Style, Meaningfulness Of Work, Customer Satisfaction
Corporate Financial Performance, And Company’s Sustainability In The Long Run in their
studies in regards of job satisfaction among the employees' It has been verified in this study that
the impact boundary conditions of psychological ownership, especially what factors affect the
mediating role in the relationship between formal ownership and psychological ownership, need
further study.
Kimbal Fraser and Simon Kemp (2012),This study examines how psychological ownership by
employees of an organisation and their perceptions of justice might be affected by the actual
control they have over the organisation and the extent to which their remuneration depends on
the organisation’s performance. In the research there are 4 scenario use in conducting the
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research. There is as follows, Employment scenario, Share Trust scenario, Representative
Control scenario, Direct Control scenario (Hanus and Fox, 2015). The result of their research is
that both governance and operational control enhance psychological ownership and have
reasonably sized effects on commitment, perceived justice and satisfaction.
Mona Mohamed Sayed Ibrahim (2016) conducted research factors that influence level of job
satisfaction among the workforce and its effects on performance. The psychological ownership
emphasized that self-efficacy, self-identity, belonging, and accountability. The results of the
research is that increasing individual’s perceptions of organizational justice and enhance ethical
leadership and other types of leadership, organizations can increase individual’s psychological
ownership through developing its four dimensions.
1.1 Employee satisfaction (Common Variables).
A measurement of an employee’s “happiness” with current job and conditions; it does not
measure how much effort the employee is willing to expend. Job satisfaction is the
favourableness or un-favourableness with which employees view their work. As with motivation,
it is affected by the environment. Job satisfaction is impacted by job design. Jobs that are rich in
positive behavioural elements- such as autonomy, task identity, task significance and feedback
contribute to employee’s satisfaction. Fallowing these points come under this category:
 Job design
 Task identity
 Recognition
 Responsibility
 Empowerment
 Quantity of task.
 Difficult level of task
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Fig 1: Factors Contributing to Job Satisfaction
Factors contributing to employee satisfaction at workplace.
It can be stated that there are wide range of factors which are responsible for creating a sense of
satisfaction among employees at workplace. In order to carry out smooth flow of operations and
sustain in highly competitive market place, it is required by companies to provide hygienic
working conditions to employees (Lapierre and et.al., 2008). It can be also expressed that safe
and hygienic conditions at wok results in boosting up the morale and motivation level of
workers to a great extent. Along with this, it also plays very crucial role in overall growth and
success of a company by keeping employees highly satisfied. Another key factor which can be
held responsible for creating higher degree of satisfaction among workers is related to the
competitive salaries and wages which have been paid by small and medium sized businesses to
their respective employees. Companies are required to focus and take care of the fact the
salaries, incentives and wages provided needs to be appropriate and satisfactory as per the
industry standards.
Furthermore, it will be also required by companies to ensure that rate of employee turnover does
not increase because of low salaries and other monetary incentives (Nishii, Lepak and
Schneider, 2008). Job security and relationship with co-workers are some other key factors
which can results in increasing the overall motivation level among employees working in small
and medium sized businesses. Companies needs to make sure no form of discrimination is
carried out among workers and fair opportunities of growth and development is provided to
them (Jones and et.al., 2009). Along with this, the small and medium sized businesses can come
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up with strict rules and regulations regarding elimination of any form of discrimination at
workplace. This will also play a very important role in enhancing the degree of employee
satisfaction. Apart from this, the leadership style adopted by businesses will also play a very
crucial role in determining the level of satisfaction among staff members. As per the view of
Aziri, (2011) autocratic style of leadership in long run can directly results in increasing the
degree of dissatisfaction as the view and opinions of workers are not taken into consideration as
per this style. On the other side of this, the use of democratic style of leadership results in long
can improve the level of satisfaction among worker in small and medium sized businesses.
According to Luthans and et.al., (2008), employee satisfaction is one of the ways of assessing
whether the employees are happy and engaged at their work. It is the extent to which the
employees are content and satisfied with their jobs. Employee satisfaction is essential for the
success of every organization. A high rate of employee contentedness results in lower turnover
rate. In addition to this, it can be said that there are number of factors that might impact the
employee satisfaction in negative manner. It has been noticed that dissatisfaction is experienced
by many employees at one point of the time or another. Some workers want better opportunities
and leave their company. Huey Yiing and Zaman Bin Ahmad (2009) has stated that inflation is
one of critical factor that might affect the overall outcome in diverse manner. If inflation rate is
high and employees are not attaining appropriate income then it will impact the overall
motivation in negative manner. In order to improve the satisfaction among employees during the
high inflation the businesses need to advance its financial strength so that goals and objectives
can be accomplished in desired manner. It has been noticed that low salary aspects impacts the
morale in negative manner. By having improvement in income level the satisfaction can also be
advanced effectively for sustainable development.
Van den Broeck and et.al. (2008) has contended that satisfaction can also be influenced in
negative manner if Herzberg motivational aspects are not well maintained. It has been noticed
that it is significant for management of business firm to make sure that needs are being
considered effectively so that objectives of satisfaction promotion can be accomplished in
desired manner (Grandey, Chi and Diamond, 2013). Safety, status and interpersonal benefits
need to be provide so that goals and objectives can be accomplished effectively. With an
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assistance of this, overall working can be advanced effectively because it has direct relationship
with morale.
1.4 Background.
At Kuala Lumpur that is at Malaysia, there are many small and medium business that aim at
gaining maximum profit. However, there are different set of issues that are being faced by this
place. In this context, one of the main issues is related with high employees turnover rate. In this
context, some of the reasons includes demotivation, lack of proper training, conflicts, ineffective
working environment, etc. Current study will focus on identifying the strategies through which
all the issues that are faced al small and medium scale business at Kuala Lumpur Malaysia can
be resolved. In this context, motivational, theories, training plans, strategies to resolve conflicts
will be identified (Pan, 2015). There are different type of skills and capabilities individuals
possess. In this context, managers should understand that the capabilities and skills that workers
possess. Accordingly, work should be divided with the help of which employees will be able to
perform with their full efficiency and effectiveness. On the other hand, there are cases in which
workers get demotivated. Further, when employees are not skilled, then it becomes difficult for
management make sure that they present the products and services effectively to customers. Rate
of satisfaction if is not high, then there are cases in which workers fail to perform the part of
roles and responsibilities that are provided to them. It is important to consider the areas in which
improvement needs to be made so that the work that is presented can be conveyed to customers
in an effective manner (Mowday, Porter and Steers, 2013). In case, organization is not able to
perform their part of roles and responsibilities effectively, then there are conditions in which
other firms will get to raise their capabilities and increase their market share. However, it is
important that there are different set of strategies that are implemented with the help of which
firm aim at attaining competitive advantage. In this context, one of the effective way is to make
sure that they have skilful and capable workers who will be able to support the firm in achieving
the goals and objectives of the firm.
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1.5 Rational.
Human resources are considered as the most important aspect of the business as they help in
integrating all resources and delivering better quality of services to the end users. However, the
issue related to inappropriate working condition, low growth and poor pay scale affect the
personnel to a great extent and results in higher employee turnover. This has direct impact on the
performance of the businesses which are operating at small scale and seeking for their upward
trend. Owing to this, current study is being conducted to assess the factors which increases the
satisfaction level of employees and help to retain them for longer time span (Anitha, 2014).
However, it is known that in case employees are not provided proper working condition and
appropriate environment then they just like to switch from one to another organization due to
absence of psychological ownership among them. For this purpose, study under consideration
would be effective to understand the impact of customer satisfaction and its direct link with their
performance in context of small and medium sized businesses. Therefore, completion of study
would be effective to research the factors which increases the satisfaction level of personnel and
support them to have feeling of psychological ownership. It enables researchers to propose the
valid suggestions for the improving the performance of workforce in the line of implementation
of appropriate satisfaction procedure of employees (Anitha, 2014). Hence, current study is
important to research about the factors which increases the feeling of psychological ownership
among personnel and ascertain the success of small and medium sized business in an effectual
manner.
1.6 Aim and Objectives.
Aim:
“To identifying the Effects of Employee Satisfaction and Employees Psychological Ownership
on Employees Performance in Small and Medium Enterprises (SME's) in Kuala Lumpur
Malaysia.”
Objectives:
 To identify the co-relationship between satisfaction level and employee performance
 To investigate the factors that contribute to employee satisfaction at workplace
 To identify the dimensions of psychological ownership of employees.
 To analyses the relationship between psychological ownership and work performance
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in Small and Medium Enterprises (SME's) in Kuala Lumpur Malaysia
1.7 Research question.
 What is the conceptual framework of work performance?
 What is the co-relationship between satisfaction level and employee performance?
 What are the factors that contribute to employee satisfaction at workplace?
 What are the dimensions of psychological ownership of employees?
 What is the relationship between psychological ownership and work performance in
Small and Medium Enterprises (SME's) in Kuala Lumpur Malaysia?
 What are the effects of employees satisfaction and psychological ownership on their
performance Small and Medium Enterprises (SME's) in Kuala Lumpur Malaysia?
1.8 Focus and purpose.
In accordance with the above mentioned objectives, main aim of author is to understand the
importance of satisfied employees in raising their performance level. In order to understand it, all
reasons due to which workers get satisfied will be determined and suitable strategies will be
identified with the help of which performance can be improved. In this context, researcher will
make use of different set of tools, techniques and theories in order to raise satisfaction level of
employees. Further, investigator will aim at understanding the relationship between
psychological ownership and work performance in Small and Medium Enterprises (Jussila,
Tarkiainen, Sarstedt and Hair, 2015). This way the difference and the perception that workers
have towards the work they perform and expectations from organization will be determined. In
addition to this, impact of employees satisfaction and psychological ownership on their
performance Small and Medium Enterprises (SME's) in Kuala Lumpur Malaysia. This will help
the management of small and medium Enterprise to identify importance of workers and to list
out the skills and capabilities that workers should have so that they will be able to contribute
towards achievement of goals and objectives.
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1.9 Dissertation structure.
In the current dissertation, systematic structure will b used. This will enable to compete it
effectively and efficiently. In this context, below given are the various chapter that will be
followed:
 Chapter 1- Introduction: In this chapter, there is brief discussion about the chapter that
take place. With this respect, it includes aim, objectives, background of the entire
investigation. Further, it will also consist of framework and structure and the analysis.
 Chapter 2- Literature review: It covers the historic investigation related to the research
(Barrick, Thurgood and Courtright, 2015). This chapter is helpful enough to present the
past research that are already being collected by some other researcher.
 Chapter 3- Research Methodology: It includes appropriate methods that will
implemented or used to complete a present the research in an effective manner. In this
context, it includes research design, philosophy, data analysis, data collection, etc.
 Chapter 4- Data analysis: All the information or the data collected needs to be
presented in an effective manner. For this purpose, chapter of data analysis is helpful
enough to make sure that the collected data is proper presented (Mowday, Porter and
Steers, 2013). Further, it is helpful enough to make meaningful recommendation and
conclusion.
 Chapter 5- Conclusion and Recommendation: This chapter enables to state that result
out of the whole research conducted. Further, it also states proper recommendations that
can be implemented with the help of which the issues or the problems can be solved.
1.10 Framework and analysis.
Researcher will make use of appropriate strategies with the help of which the current
research will be presented in an effective manner. There is different type of methods and
approaches that will be used and they are as follows: Research philosophy: There are various type of philosophies in which investigator will
make use of positivism research philosophy. This is type of is being selected as it will
helpful enough to focus over the objectives rather than the subjectivity of the topic. Research approach: Investigator will make use of inductive research approach. This type
of approach is being used as it will carry out the research from general to specific. This
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way it will be helpful enough to understand the topic effectively and efficiently. More
specifically, evaluation of positive and negative impact of customers satisfaction is
possible with the help of this approach. Research design: Researcher will make use of descriptive research design. This type of
design will be used as there will be survey conducted form managers of different small
business enterprise. This design enables to develop an appropriate survey that can be
conducted to know the perception of managers towards customers satisfaction. Research strategy: These are of two type and they are qualitative and quantitative
strategy. As per the current research, investigator will make use of combined strategy. In
this context, it includes both qualitative and quantitative strategy. More specifically,
quantitative strategy will be used in order to identify the appropriate method in which
they will be able to make sure that employees can be satisfied. On the other hand,
qualitative method will be applied in order to understand the subjective concepts. Data collection: So as to collect information, there are two different type of methods.
They are secondary and primary. In this context, both these methods will be used.
Primary will be collected with the help of questionnaire. On the other hand, secondary
will be gathered through books, journals, articles, etc. Sampling: Survey methodology will be used in order to collect primary information. This
will help to understand that perception of manager in order to satisfy employees in small
business enterprise. It is difficult to select an appropriate outcome from large number of
information. With this respect, random sampling method will be used in order to make
sure that the data collected from large sample size will be properly evaluated and
outcome is being derived.
 Data analysis: As per the current research, investigator will make use of thematic
analysis method. This is a type of method in which evaluation is made over the each and
every question that is included in the questionnaire. As per the response made, it becomes
easy to make proper analysis of the data and to come up with an appropriate outcome.
1.11 Significance of the research.
The completion of this research will be effective for number of researcher. Specially for the
people who are willing to investigate over the issues that are faced by employees at small and
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medium business (Ramos, Man and Ng, 2014). Further, it will also be beneficial for the small
and medium scale business to implement strategies through which they can make workers to
perform with their full efficiency and effectiveness.
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CHAPTER 2: LITERATURE REVIEW
2.0: Literature Review.
2.1: Definition of Key Concept.
The present section of literature review emphasis on areas such as relationship between
employee satisfaction level and employee performance, the overall concept of work
performance, the impact of psychological ownership on overall performance of people working
in a business enterprise, and the potential impact of self identity on psychological ownership of
staff member etc. (Anitha, 2014). There are different set of perception that people has towards
the job they perform. Some may get satisfaction from the pay that they are provided to them for
the work they perform, some may be happy with the incentives that are provided to them.
Satisfaction of workers is an important aspect that has to be considered by the firm so that they
will put on their full efforts to support the firm.
2.1.1: Employee Satisfaction Definition.
In order to evaluate the validity of previous measurement of job satisfaction, the initial question
to ask is "what is job satisfaction?"
Unfortunately, a major problem in a review of job satisfaction literature is to define precisely the
concept of job satisfaction. Each researcher seems to work on a limited aspect of the field and
defines their variables in terms of the concepts with which she can work most easily.
Those different approaches and conceptual ideas often make it difficult to compare the results of
various studies. In the earliest research studies on job satisfaction, the three terms "job
satisfaction", "job attitudes", and "morale" often caused confusion because many researchers
used them interchangeably while others drew significant distinctions among them (Bakker and
Schaufeli, 2008). Some researcher used the word "job satisfaction" and "job attitudes"
interchangeably because both refer to the affective orientation of the individual toward the work
role the worker is occupying. Positive attitudes are equated with satisfaction and negative
attitudes with dissatisfaction. Introducing the third term, they says that "morale" has been given
many meanings, some of which are closely related to the other two concepts. In their case study
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the concept of "morale" by restricting it to items measuring satisfaction with the work
environment.
Defining the single concept "job satisfaction" has itself created a problem. Considering
definitions taken several researchers, the essence of job satisfaction is "the favourable viewpoint
of the worker toward the work role he presently occupies." There are researchers that view that
the concept differently and describes job satisfaction as the "evaluation of one's job and the
employing company as contributing suitably to the attainment of one's personal objectives".
There are also researcher that listed nine different operational definitions of job satisfaction of
which each based on a different theoretical orientation and each will resulting a different
measures (Chi and Gursoy, 2009). The major difference between those definitions is in terms of
the different ways in which aspects of job satisfaction are combined. After considering numerous
definitions of job satisfaction, the most ideal definition for job satisfaction as "an overall
affective orientation on the part of individuals toward work roles which they are presently
occupying" as per suggested by one among all the researchers in this field.
2.1.2: Literature Review on Employee Satisfaction.
In this section a number of studies conducted to investigate the effect of employee satisfaction.
P. Mulki, et al (2013) collected secondary data to analyzed whether leadership supports the
employees in raising their satisfaction level. The result shows that leaders with effective skills do
influenced satisfaction level among employees, another study done by Wong, C.A. et al (2013),
gathered data from 263 employees to examine whether autocratic leadership has positive impact
over the job satisfaction of workers. The result found that it does improve performance but
satisfaction level is low.
In (2014) Ann Yan Zhang, et al, the researchers generate data from 535 employee for 40
companies to identify the relationship between employee and employer. In the findings, it is
identified that employees get highly satisfied when there is effective interaction between
managers. This way gets to develop trust and confidence that leads to better performance,
however Chengedzai Mafini et al (2014), perform research towards 246 employees to analyse
whether the high turnover rate can be reduced with the help of employee’s satisfaction. The
finding reflects that when employees are satisfied, then the rate of turn over gets reduced.
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Additionally, in 2015 Marie Carasco-Saul et al, composed secondary data to identify the impact
of leadership on employees in developing engagement with business activities in which they
found that Leadership has strong relationship with employees and in raising satisfaction level.
2.1.3: Psychological Ownership Definition.
Psychological ownership is the feeling of possession over a target, an object, concept,
organization, or other person that may or may not be supported by formal ownership. This
ownership not only defines the object (“that is my team”), but also, more importantly, the owner
(“my team is Oxford United; I am an Oxford United fan”). Individuals become invested in the
target of ownership as an expression of who they are and that to which they belong.
The individual has a personal stake in the performance of the object, as its performance reflects
upon his or her identity (Daniel and Sam, 2011). This leads to a feeling of possessiveness, a
desire to retain ownership, which can be manifested positively or negatively, and a mental
attachment to the target.
Job satisfaction, a positive attitude at work, or extra-role behaviours could all be indicative of an
employee who feels strong ownership or of someone who is very committed. It is indeed hard to
disentangle PO from responsibility felt by an employee who is expected to produce a good
outcome as part of his or her job. Yet there are many concepts that are related to PO but are still
distinct from it.
2.1.4: Literature Review on Psychological Ownership.
In this section several studies conducted to investigate the effect of Psychological Ownership
factors on employee performance.
In (2011) Ghafoor et al, extracted data from 270 employees to evaluate the impact of leadership
styles and human resource practices on the behavioral development of telecommunication sector
employees. The finding concludes that leadership style and human resource practice, employee
engagement, significantly affects the dimensions discussed in the context of psychological
ownership. Another studies by Joshua R. Knapp et al in year (2014) however, conducted studies
upon 347 workers to understand theoretical framework influence the satisfaction level of
employees. The result shown that psychological ownership raised the rate of workers satisfaction
level. Subsequently, in 2014 Pan et al, generate data from 2,566 employees to explore the effect
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of organizational psychological ownership (OPO) and organization-based self-esteem (OBSE)
on positive organizational behaviors (POBs). The results showed that POB is positively related
to OPO and OBSE, and that OPO and OBSE are positive predictors of POBs (Franklin, 2012).
The results also demonstrated that OBSE has partial mediating effects on OPO and POB. In
particular, psychological ownership has a significant impact on each sub-factor of POB, while
OBSE has a remarkable effect on the behavior of devotion and interpersonal harmony.
Iiro Jussila et al in year (2015), gather secondary data to analyse whether psychological
ownership is helpful enough to develop positive perceptive towards work. It evaluates that
providing workers with the opportunity to take part in decision making enables to develop
positive perception. He Peng et al in (2015), collected data from over 158 participants to
investigate regarding the relationship between job and organization based on psychological
ownership. The final the final evaluation found that the psychological ownership enables to
mediate the relationship among these two aspects.
2.1.5: Employee Performance Definition
Individual performance is a core concept within work and organizational psychology. During the
past 10 or 15 years, researchers have made progress in clarifying and extending the performance
concept. Moreover, advances have been made in specifying major predictors and processes
associated with individual performance (Grandey, 2003). With the ongoing changes that we are
witnessing within organizations today, the performance Concepts and performance requirements
are undergoing changes as well.
2.1.6: Literature Review on Employee Performance.
In this section various studies conduct to investigate the effect of employee performance.
Amanda Shantz et al in year (2013), were evaluated 283 employees to collect data for the
purpose of analysing the job design and performance relationship. The result of the evaluation
shown that job design provides high level of autonomy and higher performance.
Additionally, Min Z. Carter et al in the year of (2013) were generated data from 251 employees
to monitor the changes in leadership enables to boost up the performance of workers. The finding
20

reflects that if there is improvement in leadership style, it helps to raise the performance level
and support in growth and profitability.
In Alicia A. Grandey et al, (2013), data were obtained from 221 employees to identify the impact
of reward system in raising employee's performance level. The result reveals that reward system
enables to boost up the performance that has to be performed by the workers.
Rajib Lochan Dhar et al in (2015), the researcher monitor 494 employees to gather data to
identify whether attitude of workers influence their performance level with the help of training.
The finding shows that training and development enables to raise the performance level of
workers and in supporting organization.
In conjunction to the aforesaid studies, year 2015 Pan, F.C. et al the data were collected data
from 474 employees to determining the roles that has to be performed by workers is helpful to
improve the performance level (Harrison and Reilly, 2011). The result shows that when workers
are provided with proper goals that have to be achieved, then it is favourable to perform
effectively and efficiently.
2.2 Theoretical gap
It can be stated that the main reason behind carrying out the present research was to analyse
Identifying the Effects of Employee Satisfaction and Employees Psychological Ownership on
Employees Performance in Small and Medium Enterprises (SME's) in Kuala Lumpur Malaysia.
Furthermore, it has been identified by the scholar that earlier researches have been conducted
over areas such as employee satisfaction and employee performance. There are companies that
deliver their customers with similar products and service, in order to competitive it is important
to have workers who will be able to support the firm in achieve their desired goal for this respect,
it is important that the workers are satisfied with the work they perform (Jun, Cai and Shin,
2007). However, no such research is carried out which mainly focuses on variable such as
employee psychological ownership, performance and small medium enterprise. This can be
termed as a clear gap which has been identified by the researcher and this is the main rationale
behind conducting the research.
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2.3: Critical review of relevant theory
2.3.1 Maslow's need hierarchy theory.
Maslow's hierarchy of needs is a theory in psychology anticipated by Abraham Maslow in his
1943 paper "A Theory of Human Motivation". Maslow consequently extended the idea to
include his observations of humans' innate curiosity, over the years researches and authors has
tend to criticizes the theory as being irrelevant in most part of the world for is western in nature
Contrary to such assertion, Maslow’s hierarchy of needs theory remains relevant in every sector
of our business today as its best analyzes below Maslow’s hierarchy of needs where the lower
order needs (physiological and safety needs) may be linked to organizational culture.
Every new organization passes through this lower order stage in which they struggle with their
basic survival needs. At the third level of the Maslow’s hierarchy, social needs would correspond
to the formation of organized roles within the organization into distinct units, depicting the
human resource management function which resonates according to the tone set by
organizational culture (Huey Yiing and Zaman Bin Ahmad, 2009). The positive interaction of
organizational culture and human resource management would result in self-esteem and self-
actualization. This is manifested through the employees’ performance which showcases the
strength and reliability of their organization in the face of competitors. It also implies that the
organization through its employees has excelled and met their objectives, mission and vision
statement, i.e. a stage that can be considered parallel to self-actualization.
This can be determined as a motivational theory that enables to boost up the moral of workers
and o make them perform with their full efficiency. This is an effective theory to make the
workers satisfied for the type of work they perform (Christopher, 2014). There are five different
needs that are involved and they are: physiological, safety, belongingness, esteem and self-
actualization. All these needs are the basic requirement that enables to raise the employee's
satisfaction and Employees Psychological Ownership.
2.3.2 Herzberg two factor theory.
Frederick Herzberg's Two factor theory (also known as Motivator Hygiene Theory) attempts to
explain satisfaction and motivation in the workp place ,This theory states that satisfaction and
22

dissatisfaction are driven by different factors , motivation and hygiene factors, respectively. An
employee's 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. Motivating factors are those aspects of the job that make people want to
perform, and provide people with satisfaction, for example achievement in work, recognition,
promotion opportunities (Jiang, Baker and Frazier, 2009). These motivating factors are
considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspects of
the working environment such as pay, company policies, supervisory practices, and other
working conditions. While Hertzberg's model has stimulated much research, researchers have
been unable to reliably empirically prove the model, with Hackman & Oldham suggesting that
Hertzberg's original formulation of the model may have been a methodological artifact.
Furthermore, the theory does not consider individual differences, conversely predicting all
employees will react in an identical manner to changes in motivating/hygiene factors. Finally,
the model has been criticized in that it does not specify how motivating/hygiene factors are to be
measured.
As per this theory, there are two different factors with the help of which the satisfaction level of
workers can be raised. In this context, it includes motivator and hygiene. Motivational factors
includes providing the employees with additional responsibility, appreciation, developing sense
of achievement, etc. On the other hand, hygiene factors includes job security, status, providing
physical working condition, etc. (Franklin, 2012). All these are helpful to make sure that
employees develop Psychological Ownership and job satisfaction. This way the rate of work that
is performed within the firm will be raised.
2.3.3: Psychological Ownership theory
The theory of psychological ownership argues that a sense of possession directed toward the
organization satisfies three basic human motives (efficacy and effectance, self-identity, and
having a place or home) and produces positive evaluative judgments.
23

The psychology of possession identifies three fundamental outcomes associated with feelings of
possession: positive attitudes toward the target, enhanced self-concept, and a sense of
responsibility (Islam, 2014). In work organizations, a number of researcher suggest that this
sense of possession (which allows individuals to satisfy their basic needs for place, efficacy and
effectance, and self-identity) is key to work-related attitudes (commitment and satisfaction), self-
concept (organizational-based self-esteem), and behaviors (performance and organizational
citizenship).
2.4 The Concept of Work Performance.
As per the view of Kim, Murrmann and Lee, (2009) the success or failure of a company heavily
relies on the kind of performance which has been delivered by its staff members. In the modern
era, the market has become highly competitive for small and medium businesses in Malaysia
and therefore it is no longer easy to attract new customers and retain the old ones in long run. It
can be stated that two businesses can have same type of technological and financial resources
but makes a company different from other market players is the level of performance which has
been delivered by its staff members (Ihantola and Kihn, 2011). This is one of the main and most
important reasons behind the fact that work performance has started to play very significant role
in success and failure of an organization. Nishii, Lepak and Schneider, (2008) has explained that
in the present scenario, companies are required to evaluate performance of their employees at
regular intervals. This helps a business enterprise in identification of the fact that whether efforts
of staff members are heading towards right direction or not. Along with this, monitoring of
employees work performance also supports in accomplishment of an organization aim and
objectives in the best possible manner. According to Huey Yiing and Zaman Bin Ahmad,
(2009) there are wide ranges of tools and techniques which can be used by firms in order to
define or determine the level of performance which has been delivered by people or workers.
For examples performance appraisal is a kind of effective tool which has been used by firms
with an objective to evaluate performance which has been delivered by people in and
organization.
24

Other than this, 360 degree feedback system can be also used with an objective to
monitor and deliver the performance of staff members. As per this tool, small and medium sized
businesses needs to gathered information about employees performance through feedbacks and
reviews from their respective colleagues and other members (Ihantola and Kihn, 2011). It can be
stated that in order to operate in long run and delivered high end performance, companies are
required to develop and implement effective methods which can results in enhancing their
overall productivity and performance. Apart from this, evaluation of work performance also
plays very important role in increasing the market share, customer base and overall profit
margin of small and medium sized businesses which are operating in Kuala Lumpur, Malaysia.
As per the view of Madlock, (2008) employees can be encouraged to take part in the process of
decision making and they can be asked to provide their views and opinions regarding how their
existing performance can be improved. Such kind of strategy will not only results in enhancing
overall productivity of a company but will also results in providing opportunities to sustain in
the highly competitive marketplace.
On the other side of this, has critically argued that the use of work performance
management is crucial because it provides insight and proper documentation regarding the
quality of work which has been delivered by a person over a given period of time. Along with
this, work performance measurement also provides small and medium sized enterprises with an
opportunity to interact with their employees and develop effective strategies for performance
measurement. Boxall and Macky, (2009) has critically argued that at the time of carrying out
evaluation of work based performance, it is required by enterprise working at small and medium
level to be very careful as wrong measurement of performance can create negative environment
at workplace which is a big threat. In addition to this, wrong measurement of work performance
can also result in wastage of time, money and resources of a company.
H6: The job satisfaction positively affects the employee’s job performance.
H7: Job Performance has a negative impact on employees’ intentions to leave the
organization.
2.5 Conceptual Framework.
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In addition to this, it can be said that design of research is descriptive and it provides in-depth
analysis about the subject. This design will be helpful in describing the characteristics of the
population and explore the investigation in an effective manner. Moreover, the inductive
approach is being adopted by the researcher (Grandey, 2003). These reasons can be varied and
will require new findings to be added to the study. It assist in meeting the objectives of the
investigation. Along with this, it can be said that present research is qualitative that helps in
identify the co-relationship between satisfaction level and employee performance.
Fig 2: Conceptual Framework
2.6 Co-relationship between satisfaction level and employee performance.
In the modern era, employees are considered as one of the most important and crucial assets of
any business enterprise. As per the view of Luthans and et.al., (2008) there was a time when the
main focus of businesses was laid upon achieving higher degree of employees satisfaction and
26

enhancing the same in the best possible manner. However, Huey Yiing and Zaman Bin Ahmad,
(2009) has argued that at present organizations has also started focusing upon achieving higher
degree of their customers satisfaction. The rationale behind this is that satisfied and motivated
workers are able to deliver more effective performance towards the success of organization. It
can be expressed that attaining higher degree of employee satisfaction is no longer an easy task
for the businesses operating in the market.
There are wide ranges of factors and elements which need to be take care of by
companies while carrying out their business practices. For example appropriate growth and
development opportunities is required to be provided to each and every employees in order to
make them satisfied and feel motivated. According to the view point of Van den Broeck, and
et.al. (2008) There is a direct relationship which existing among variable such as employees
satisfaction level and work performance. Furthermore, satisfied employees are always able to
deliver effective and desired performance toward the success of a business enterprise.
The rationale behind this is that satisfied employees are innovative and they also provide
different types of unique and creative ideas for the success of a particular company. On the other
side of this, it can be asserted that dissatisfaction among people working in an organization can
also create several kinds of obstacles in its overall success. According to the theory presented by
Maslow, it is required by firms to identify the need of people working at different level and the
take corrective measure for the satisfaction of the same. However, Chi and Gursoy, (2009) has
explained that enhancing degree of employee satisfaction is a very complicated task for
businesses as it is not easy to identify the needs of employees and satisfy them. Nowadays,
companies has also started making use of Herzberg two factor theory of motivation with an
objective to make employee satisfied and enhance their overall performance (Takeuchi, Chen
and Lepak, 2009). According to Herzberg theory, there are two major factors which can either
cause satisfaction or dissatisfaction among workers. The factors are motivators and hygiene
which plays a very vital role in a business enterprise. For example if the workplace is not safe
and hygienic, then workers may not feel satisfied and they also find it very difficult to deliver
required performance.
Apart from this, employee satisfaction is also created with the help of tools such as
reward system and providing responsibilities to workers. In the modern era, lots of time and
energy is invested by employers to examine the overall degree of satisfaction among employees.
27

Furthermore, corrective measures are also taken in order to increase the level of job satisfaction
as it is directly linked with their overall productivity (Madlock, 2008). Nowadays, many
employers are well aware of the fact that the employee satisfaction and their overall
performance are closely linked with each other. In addition to this, monitoring of employee
satisfaction level has also become very crucial and one of the most important aspect of
companies operating in market place. As per the view of Bakker and Schaufeli, (2008) SMEs in
Kuala Lumpur, Malaysia are carrying out very close monitoring of employees satisfaction level
and they are also taking corrective measures through which the performance can be enhanced.
For companies which are operating at middle and small scale, attracting more and more
customers has never been an easy task but it is possible with the skilful and knowledgeable
workers. In order to gain competitive advantage over other key players in the market, it is
required by SMEs to focus upon delivering quality products and services at convenient prices.
Along with this, they are also required to focus on developing and implementing
effective strategies through which they can retain employees in long run. SME in Kuala
Lumpur, Malaysia, needs to take care of the fact that in order to sustain in highly competitive
marketplace, their employee posses high degree of motivation (Mafini and Dlodlo, 2014). It can
be stated that employees no longer remains motivated in situations where they are doing same
kind of work over and over again and they have no satisfaction in doing that. At the time of
carrying out process such as recruitment and selection also, it is required by small and medium
sized enterprises to ensure that over qualified candidates are not hired for the vacant position as
it may increase the chances of dissatisfaction. It can be also expressed that having a team of
skilled, motivated and satisfied workers also contributes a lot in overall success and productivity
of a company.
However, Ilies, Wilson and Wagner, 2009 has argued that it is not always necessary that
satisfied workers can results in enhancing a company’s overall productivity as there are some
other factors also which can create obstacles in overall success. Sometimes carrying out
constructive or productive work results in developing a sense of satisfaction among workers. It
can be also stated that delivering desired and effective performance may results in achieving
better monetary and non monetary rewards. Takeuchi, Chen and Lepak, (2009) has critically
argued that sometime employees working in small and medium sized businesses can get
dissatisfied even after delivering desired and effective performance. The rationale behind this is
28

that the main and most common motive of staff members behind delivering quality performance
is to achieve various kinds of monetary and non monetary incentive. Therefore, if these rewards
are not present in a business enterprise, then worker's morale and motivational level directly gets
degraded. In addition to this, small and medium sized companies are also required to take care
of the fact that appreciation and satisfactory appraisal is always provided to people in situations
where they are delivering outstanding performances at regular intervals.
2.7 Relationship between psychological ownership and work performance.
According to Luthans and et.al., (2008), it can be said that psychological ownership is
having great relationship with work performance. It has been noticed that psychological
ownership is associated with job performance, job commitment and job satisfaction. By having
improved focus on these aspects every business firm can have improvement in work
performance. Psychological ownership is considered as a concept hat creates a positive
environment within organization. It means by having improved focus on such aspects the
employees' morale can also be advanced effectively so that goals and objectives can be
accomplished effectively. However, Chi and Gursoy, (2009) has stated that if employees are
considering the psychological ownership as critical aspect then it will impact positively on the
job commitment. Advancement in job commitment is beneficial for improvement in work
standards that may lead business firm to impressive level of success.
Madlock, (2008) has contended that psychological ownership is referred as psychological
experience in which an employee feel motivated due to possessive feeling to accomplish
objectives. With an assistance of this, employees morale can be advanced so that they have
effective efforts in regard to accomplishment of target. In addition to this, it can be said that
psychological ownership promotes two kinds of elements such as affective and cognitive
elements. Activities are being developed by business firm on the basis of belief and judgements
so that business firm can have impressive level of success (Pan, Qin and Gao, 2014). For
example, the company is well focused towards application of psychological ownership and
employees are well satisfied with the work standards then it will force management to have
improvement in services. Bakker and Schaufeli, (2008) has asserted that psychological
ownership has critical relationship with satisfaction and commitment. Psychological ownership
also indicates the effective prediction in regard to work engagement. Study also indicates that
29

employee retention rate can be controlled and improved through advanced focus on
psychological ownership. In addition to this, it can be said that psychological ownership is
referred as measurable aspect that helps in effective management of employees so that work
performance can be improved in critical manner. Psychological ownership may advance the
organizational citizenship behaviours and organizational commitment which strengthen the work
environment and allows employees autonomy.
Grandey (2003) has concluded in the study that positive work environment allows to
have effective promotion of independent working which improves overall outcome of
organization. For example, employee is considering organization as his/her second home and
providing high ratio of commitment then it will help in accomplishment of task. It will also
improve the work performance because it improves the systematic standardised focus on the
designed work activities. Along with this, it has been noticed that engagement is one of critical
factor that allows to have improvement in the work performance (Anitha, 2014). It has been
witnessed that engagement is considered as motivational aspect which is directly linked with the
well being of employees. It enhances the positiveness within organization so that goals and
objectives can be accomplished effectively. Study of Grenway (2008), indicates that employees'
engagement can be advanced by offering work flexibility. Along with this, the management can
also provide control over activities so that employee engagement can be advanced. In order to
improve the work flexibility and engagement the psychological ownership is a significant aspect.
It is because psychological ownership allow employees to feel valuable and feel like they are
working for their own. It means the work commitment can also be advanced effectively which is
beneficial for improvement in work performance. It reflects that work performance and
psychological ownership is having great relationship with each other.
Halepota and Shah (2011) has critically explained that psychological ownership also
assist in controlling the targets in effective manner. Responsibilities allocation can also be
advanced in effective manner which is also beneficial to advance the level of work satisfaction. It
means the overall working of organization can also be boosted through effective responsibilities'
allocation. It reflects that psychological ownership is having effective relationship with work
performance. In addition to this, it can be said that employee engagement is also beneficial to
improve the work commitment ratio among the employees. Hellawell (2012) has said that
engaged employees may lead work to impressive commitment so that job roles can also be
30

accomplished in desired manner. It has been noticed that if employees are feeling safe in context
to the psychological aspects then employee engagement can also be advanced. However, the
employee engagement is considered as one of key aspect which plays a key role in overall work
performance. If employees are having involvement in decision making then it will enhance the
motivation. By having advancement in morale the employees will have better efforts to
accomplish goals and objectives. Islam (2014) has asserted that decision making process
participation allows to present innovative ideas to the management. It will also facilitate the
employees to have effective application of innovative idea so that work performance can be
advanced in significant manner. Moreover, the participation in managerial activities also provide
psychological safety. It means the managerial participation and engagement can also be consider
as critical aspect that lead business to impressive level of success. With an assistance of this,
employee performance can also be advanced because it promotes satisfaction among workforce.
It has been witnessed that engaged workforce feel motivated to have long term working with the
organization that improves the employee turnover cost and effectively influences on work
performance.
According to Jepsen and Rodwell (2008), the satisfaction level can also be advanced by
having effective promotion of psychological ownership. Improved level of satisfaction is also
beneficial to have continuous advancement in regard to work performance. It has been noticed
that by having improved focus on the psychological aspects the overall work productivity can
also be advanced effectively. With an assistance of this, business activities' commitment can also
be advanced effectively so that goals and objectives can be accomplished effectively.
Psychological belief improvement is also advantageous to have promotion independent working
(Dhar, 2015). It means the employee retention can be enhanced through appropriate
consideration of work flexibility. It indicates that psychological ownership is having great
relationship with the employee satisfaction and work performance.
2.8 Dimensions of psychological ownership of employees.
According to Jiang, Baker and Frazier (2009), psychological ownership is considered as
one of most critical aspect because it is directly linked with the belief of employees. In addition
to this, it can be said that it creates a possessive element in regard to work. Employees get
attached with the work culture and focus towards application of work activities so that goals and
31

objectives can be accomplished effectively. Jun, Cai and Shin (2006) has contended that there
are number of factors that need to be considered by employees in order to have effective
application of psychological ownership. Classification of dimensions are as follows attitude, self
concept and sense of responsibilities. In addition to this, it can be said that attitude is a factor
which is linked with the psychological belief. If employee is holding positive attitude towards
work and organization then it will benefit overall business in positive manner. It is necessary for
employees to develop positive belief in regard to both tangible and intangible targets of
ownership (Elnaga and Imran, 2013). For example, employee is feeling motivated in regard to
improve the work productivity so that sales ratio can also be advanced. It means the
psychological aspect will also be turned positive so that objectives can be accomplished
effectively.
As per the view of Jiang, Baker and Frazier (2009), self concept is also critical aspect. In
order to have effective promotion of psychological aspect the business firm need to make sure
that employees are self confident for accomplishment of objectives. It is necessary for employees
to make sure that the work they are performing is for their own benefits. It will provide them
better values and lead to diverse advantages. It is necessary to design strategies that improve
valuable aspects so that goals and objectives can be accomplished. Tangible and intangible
feelings of psychological ownership must be linked with the self concept. Employees must take
organization as their own business so that positive culture can be created. It will allow to have
sustainable development and make sure that goals and objectives can be accomplished. Jepsen
and Rodwell (2008) has contended that feelings in respect to the ownership must reflect the
sense of responsibility for the entity. If employees are reflecting a commitment towards job roles
the work environment might get affected. It will also influence the psychological belief among
employees. In addition to this, it can be said that psychology of possession link feelings of
ownership with positive attitude allows to have better accomplishment of target. With an
assistance of this, overall working can be advanced effectively.
Islam (2014) has also contended that self belief is also one of critical aspect that helps in
promotion of psychological belief. It is significant for individual to make sure that motivation is
well maintained among the members so that goals and objectives can be accomplished
effectively. Motivation also promotes the satisfaction aspects so that better opportunities can be
taken into account. Control of objects through ownership is pleasure producing effectiveness and
32

leads to perceptions of personal efficacy. Self belief is important to individuals because they are
instrumental in exercising control over the physical environment as well as over people.
Hellawell (2012) has asserted that self identity is considered as critical aspect because it allows
to accomplish goals and objectives. In order to have effective development of psychological
aspects the social interaction also need to be consider in appropriate manner. By having
appropriate consideration of communication the key aspects of work culture can be understand
effectively which is also beneficial to improve the work performance. With an improved focus
on appropriate consideration of personal values and attitudes the psychological aspects can be
advanced in appropriate manner. It is also necessary for business firm to make sure that they
have developed the work conditions in appropriate manner so that self identity aspects can be
well maintained.
2.9 Conclusion.
As per above study, it can be concluded that companies has started using different types of
motivational theories such as Maslow need hierarchy theory and Herzberg two factor theory
with an objective to attain higher degree of employee satisfaction. Market has become highly
competitive for small and medium businesses in Malaysia and therefore it is no longer easy to
attract new customers and retain the old ones in long run. It can be also expressed that safe and
hygienic conditions at wok results in boosting up the morale and motivation level of workers to a
great extent. Advancement in job commitment is beneficial for improvement in work standards
that may lead business firm to impressive level of success. With an assistance of this, employees
morale can be advanced so that they have effective efforts in regard to accomplishment of target.
In addition to this, it can be said that psychological ownership promotes two kinds of elements
such as affective and cognitive elements. In order to improve the work flexibility and
engagement the psychological ownership is a significant aspect. It is because psychological
ownership allow employees to feel valuable and feel like they are working for their own. It
reflects that psychological ownership is having effective relationship with work performance.
33

CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction.
Research methodology comprise of the systematic plan that is followed by researcher for
carrying out a study. It involves several important aspects such as research design, approach,
data collection and analysis procedures, sampling, ethical issues etc. (Chenail, 2011) It also takes
into consideration the aspect of validity and reliability of data. After drafting the literature
review, appropriate methodology was adopted by the researcher for conducting the study on
effects of employee satisfaction in SMEs in Kuala Lumpur, Malaysia. The present chapter
provides details of the research techniques that were employed along with justifications. These
techniques provided significant assistance in carrying to the study to find out the effects of
satisfaction and psychological ownership on their performance in SMEs in Kuala Lumpur
Malaysia.
3.2 Research philosophy.
This is associated with the development of knowledge and helps in forming the
background to a study. Research philosophy involves the perception of an individual with which
he views the world and his belief towards reality (Christopher, 2014). For the present study on
SMEs in Kuala Lumpur, a combination of positivism and interpretivism philosophies were
utilized. Interpretivism philosophy was used because it helped in adequately justifying the
research problem. With the assistance of this philosophy, the research was able to highlight the
various figures and facts that depicted the research background. Moreover, interpretivism
enabled the researcher to understand the views of the sample in detail so that effects on their
performance can be studied.
Positivism philosophy was also used by the researcher because it assisted in providing his
viewpoint for evaluation of the social world (Ihantola and Kihn, 2011). In the present study on
SMEs in Kuala Lumpur, the researcher was required to collect information from the respondents
about the ways in which their performance was affected by satisfaction. Therefore, use of
40

positivism philosophy was most suitable as with the researcher could play his role independent
from the study. This made him concentrate better on facts and analyze them efficiently.
41

3.3 Research design.
Research design depicts the overall strategy that is used for combining the various
components of the study in a coherent manner. It is therefore, an important concept in
research. An appropriate research design is essentially required for ensuring that the
researcher will be able to address the research problem efficiently (Harrison and Reilly,
2011). There are various research designs such as exploratory, descriptive, analytical etc. For
the present study on employee satisfaction and psychological ownership, exploratory research
design was used. There were various reasons for selecting this design. Firstly, exploratory
research is conducted for a problem that has not been defined in a clear manner. the research
had knowledge about employee satisfaction and psychological ownership and wanted to
understand more about their impacts on performance in SMEs. Hence, it required to explore a
new angle of viewing an aspect. Therefore, exploratory research was suitable for the present
study. The present research on SMEs in Kuala Lumpur had time and money constraints. This
also suggested that exploratory research was the best suited for it. Further, the purpose of the
research was to suggest and provide some recommendation on specific organizational
aspects. This necessitated the utilization of exploratory research design. Moreover, in the
present study, the researcher was required to use a statistical tool for analyzing the data to
reach conclusion. Hence, exploratory research was used as it assisted in successfully
implementing the tool.
3.4 Research methodology.
Basically, a research can be carried out by following two methodologies, namely,
qualitative and quantitative. Qualitative research aims at gaining an understanding of
underlying motivations and reasons thereby providing insights into a particular problem. In
contrast to this, quantitative research comprises of empirical investigation of a phenomenon
with the use of statistical techniques (Franklin, 2012). The aim of the present research to
analyse the effects of employee satisfaction and psychological ownership on employee
performance in SMEs in Kuala Lumpur. In order to achieve the aim, the research required to
obtain large volume of data from a number of respondents. Qualitative research would not
have supported this requirement efficiently. It is for this reason that quantitative methodology
was adopted for conducting the present research on SMEs in Kuala Lumpur. The researcher
81

was required to collect data with the help of a questionnaire. Hence, Quantitative research
was best suited for this.
3.5 Data collection.
Data collection can be done by utilizing two methods, namely, primary and secondary
data collection. Primary data is the first hand information that a researcher specifically
collected for a particular study. Primary data collection comprises of the various research
techniques that are employed for gathering primary data. These include interviews, focus
groups, survey questionnaire etc. (Grafton, Lillis and Mahama, 2011). In contrast to this,
secondary data refers to information that was already published in studies carried out by other
researchers. It is readily available ion other sources such as books, journals, blogs, reports,
government factsheets etc. For the present study, only primary data collection methods were
used. This is because the researcher wanted to explore the effects of employee satisfaction
and psychological ownership on their performance, which could only be done by obtaining
information from employees. Hence, primary data collection was suitable for the present
study on SMEs in Kuala Lumpur.
For collecting the data, questionnaire was utilized. This is because large amount of
information could be collected from a large sample. Hence, with it the researcher could
collect data about the effects of employee satisfaction on their performance from a large
sample in order to achieve the aim of the study. Another reason for using questionnaire was
that results could be quickly and easily quantified (McGrath and O'Toole, 2012). As the
present research used quantitative methodology, questionnaire was suitable for it. The
development of questionnaire was done with the help of Google Forms tool. The
questionnaire was divided into three sections. In the first section, general information about
the respondents was collected. The second section comprised of independent variables. The
last section of the questionnaire was related to dependent variables.
3.6 Sampling.
Sampling refers to the method of selecting a subset of individuals from a population.
Collecting data from each and every unit of the population does not seem to be a feasible task
for the researcher as it requires a lot of time and money. Therefore, sampling is done to select
a sample that is capable of representing the entire population. There are two types of
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sampling methods, namely, probability and non- probability sampling (Cox and McDonald,
2013). For the present study on SMEs in Kuala Lumpur, probability sampling method was
used. Sample was selected by utilizing simple random sampling technique. The reason behind
using this technique was that it was a fair way of sample selection because every member got
an equal chance of being included in the sample. The respondents were selected in a random
manner from the population of employees working in SMEs in Kuala Lumpur region of
Malaysia.
Sample size is another important concept because an appropriate size of sample is to
be selected by researcher which is capable of representing the entire population (Ormerod
and Ulrich, 2013). For the present study, sample size was calculated by using Raosoft sample
size calculator. The allowed error margin was of 5 per cent with 95 per cent confidence level.
In Malaysia, 35. 7 percent of all SMEs are in Kuala Lumpur. With the help of Raosoft, the
calculated sample size was 221 from a population of 500. Questionnaire was distributed to
500 respondents and only 221 responses were selected through probability sampling.
3.7 Data analysis.
Data analysis refers to cleaning and transforming the data by using systematic and
logical techniques. There are two methods of analyzing the data. These include qualitative
and quantitative analysis (Kumar, 2014). For the present research, data was analysed by using
quantitative methods. IBM’s SPSS version 22 software was used for carrying out analysis on
the data collected from the respondents. The data analysis comprised of conducting 3 tests. In
order to ensure the reliability and integrity of data Cronbach’s Alpha test was used. In order
to determine the effects of employee satisfaction on their present, the researcher was required
to identify relationship between dependent and independent variables. For this, Pearson
correlation was employed. Further, linear regression was also performed to identify the
independent variable that has the strongest impact on dependent variable.
3.8 Validity and reliability
Validity refers to the extent to which a research measures what it is intended to
measure (Flick, 2011). It is an important concept to be considered while carrying out a
research. For the present research on SMEs in Kuala Lumpur, validity was maintained by
utilizing appropriate tools for collecting and analyzing data. Question used by the researcher
was suitable as it assisted in obtaining the responses of a large sample. This helped the
researcher in determining the effects of employee satisfaction and psychological ownership
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on their performance. Hence, it measured the effect that it was intended to measure. This
indicates that questionnaire fulfilled the purpose for which it was used.
Reliability is another vital concept and refers to the degree to which a study is capable
of producing consistent results it is conducted again in future (Fiegen, 2010). The present
research on SMEs in Kuala Lumpur is reliable as authentic sources have been used for
collecting the data. Employees could provide the most useful and relevant information about
the effects of satisfaction on their performance. As the present research collected data from
employees, it ensured that the study is reliable. Further, it also ensured that the chances of
biasness have been reduced to minimum. Also, the data as not manipulated in any form.
3.9 Ethical considerations
Researcher needs to take into consideration ethical aspect while carrying out the research.
This is because a study is considered to be complete in all aspect if it has followed the ethical
norms (Cox and McDonald, 2013). In the present research on effects of employee
satisfaction, the following ethical considerations were taken into account by the researcher: Prior approval: It is not necessary that all the participants agree to take part in the
study. It is therefore important for research to take informed consent from the
respondents (Daniel and Sam, 2011). For the present study, the research informed the
participants about the nature and purpose of research. Informed consent was then
obtained from them to ensure that the individuals are taking part in the study in a
voluntary manner. This also ensured that they are aware of the benefits and risks of
research. Data use: The data collected for this study was used specifically for academic
purposes. As the participants were ensured that the data will be not be used for any
other purpose, adequate steps were taken for restricting the data use for research
purpose. Principle of honesty and objectivity: The principle of honesty was followed by the
researcher while carrying out the present study on SMEs in Kuala Lumpur. Each
respondent was allowed to fill the questionnaire only once. There was no use of any
automated software for submitting multiple responses at once. This helped in
maintaining the objectivity by avoiding bias in data analysis and interpretation. Confidentiality and privacy: In order to follow the ethical principles of
confidentiality and privacy, the researcher ensured that anonymity of the participants
is maintained. In no case, their identifying information was shared with anyone who
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was not involved in the research. Further, confidentiality of the data provided by the
participants was also maintained. For this, unauthorized access to data was checked
by the researcher.
 Proper citation of work: The researcher took appropriate care to ensure that all the
resources have been cited where necessary. It was also ensured that correct citation of
work was done. Further, the content was not copy pasted at any part so that plagiarism
could be avoided.
3.10 Research limitations.
There are various limitations of the present research. As it was primarily focused on
employees working in Kuala Lumpur, the present research cannot be applied on employees
who do not belong to Malaysia. Another limitation of the study was that it was focused on
small and medium sized organizations. Hence, it did not take into account large
organizations. Employee satisfaction and psychological ownership may have different effects
on employee performance in the context of large organizations.
3.11 Accessibility issues.
Various accessibility issues were also faced by the researcher while carrying out the
present study on SMEs in Kuala Lumpur. The researcher was required to collect data from
the employees of SMEs in Kuala Lumpur. However, a lot of areas were under federal
territory of Kuala Lumpur. Hence, it was a difficult and challenging task for the researcher to
collect data from such a wide spread area in a random manner. As majority of the SMEs were
in Klang Valley, Selangor; it was narrowed down by the researcher to Klang Valley which
helped in overcoming the accessibility issues. Further, accessibility issues were also
addressed by researcher by using various online media such as Whatsapp, Facebook, emails
for data collection. This saved time, money and efforts as the researcher did not have to
collect data by visiting the respondents.
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81

CHAPTER 4– DATA ANALYSIS
4.1 Introduction.
This can be determined as a crucial chapter that includes discussion over the analysis
done. This is made depending up on the responses who are asked to fill up the questionnaire.
It is a difficult task to make proper analysis of the data that is collected from the respondents.
This is because of the large population that is selected to be the sample size. As per the case,
there are about 221 respondents selected that is gathered from employees who work in SME
in Kuala Lumpur. In order to carry out the research in an effective manner, research has made
use of quantitative data analysis. More specifically, the satisfaction of customers will be
evaluated in understanding their advantage in performance and the benefit that firm gets. The
collected data can be presented on tables that will enable to show up the relationship between
employees performance and ownership structure with employees satisfaction. This enables to
make the viewers to understand the findings, from each of the questions over respondents has
chosen. In addition to this, SPSS are used that helped in obtaining the information efficiently
and enabled in achieving the desired result.
4.2 Discussion
Normality test:
Descriptive Statistics
N Skewness Kurtosis
Statistic Statistic Std. Error Statistic Std.
Error
P1 221 -.643 .164 -.825 .326
P2 221 -1.235 .164 .723 .326
P3 221 -2.142 .164 4.348 .326
O1 221 -1.253 .164 1.571 .326
O2 221 -1.209 .164 1.301 .326
S1 221 -1.279 .164 .761 .326
S2 221 .096 .164 -1.490 .326
S3 221 -2.036 .164 3.519 .326
Valid N
(listwise)
221
In accordance with the given data, it can be stated that there are 221 respondents that
are selected in order to collect the and come up with appropriate outcome. In accordance with
the descriptive statistics conducted for each of the questions, it can be stated that the
responses of the employees are different. They have diverse set of perception over the options
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that are given. Further, for each of the responses the outcome determined is different. There
are about 8 of the questions that are asked from employees and for each one of the responses
that has been attained, it shown that diverse set of perception is derived by the employees. On
the other hand, with the help of Kurtosis conducted, it can be stated that the outcome for each
of the responses is different and this will enable to identify the and come up with appropriate
outcome for the present research conducted.
Reliability test:
Reliability Statistics
Cronbach's Alpha N of
Items
.791 8
This can be determined as the means that is helpful enough to measure consistency.
There are different type of responses that are provided by workers and this test is helpful
enough to make sure that the responses provided are reliable or not. In this context, when
measurement is done of an object multiple times with the help of same instrument, the
investigator will get the same score each time with no or little errors. With this respect, it can
be stated that when the reliability test is more than 0.7, then it can be stated that the
questionnaire is reliable. In accordance with the current study, it is conducted to determine
the employees satisfied level. The above table shows that the responses that given by the can
be relied as the reliability test show to be more than 0.7.
Descriptive:
Descriptive Statistics
N Mean Std. Deviation
Employee
performance
221 3.998491704374158 .850132335246131
Ownership structure 221 3.998 .8976
Employee satisfaction 221 3.752639517345501 .772735741720574
Valid N (listwise) 221
There are in total 8 questions that are asked and all the questions are divided into three
different elements. This is effective enough to determine the rate of satisfaction level of
employees. As per the mean that is taken, it can be stated that the majority of the workers
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have selected 4th option in majority. Further, the standard deviation is selected to be
moderate. For the performance, it can be stated that majority of the employees think that
personal growth like skills and learning are highly important. In order to perform a job, it
requires one to have certain set of skills and capabilities so that they will be able to achieve
the desired goals and objectives. Further, there are majority of the workers who think that
autocratic leadership is somewhat helpful enough to make sure that the rate of satisfaction get
negatively affected. Further motivation play vital role in make sure that workers perform with
their full efficiency. It is essential for the workers to have highly motivated and it enables
develop positive perception within the mind of customers. Majority of employees have
selected that they strongly agree to motivation level is effective. As per the employee
satisfaction, it can be stated that majority of the employees strongly agree that when
employees are provided with development opportunity, then it helps to raise the motivational
level. Overall, workers are not fully satisfied they are somewhat satisfied. It is important for
the management to consider that requirements and take appropriate steps with the help of
which workers can be boosted up or motivated. As per the questionnaire filled, it can be
determined that income play vital role in raising the satisfaction level of workers. Further, as
per the psychological ownership, it can be stated that employees some what agree that it is
important to have psychological ownership in order to provide proper coordination within the
work place. Workers strongly agree that work place commitment and job satisfaction is
highly important for the employees so that they will be able to put on their full efforts to
support eh organization to grow. When management take up proper steps, then they will be
able to raise the performance level of workers and firm will be able to reach out their goals.
Correlation:
Correlations
Employee
performance
Ownership
structure
Employee
satisfaction
Employee
performance
Pearson
Correlation
1 .620** .709**
Sig. (2-tailed) .000 .000
N 221 221 221
Ownership
structure
Pearson
Correlation
.620** 1 .613**
Sig. (2-tailed) .000 .000
N 221 221 221
Employee
Pearson
Correlation
.709** .613** 1
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satisfaction Sig. (2-tailed) .000 .000
N 221 221 221
**. Correlation is significant at the 0.01 level (2-tailed).
When compared with employees satisfaction and ownership, satisfaction has high
impact over the performance of the workers and ownership structure has moderate impact
over the performance of the workers. In this context, it can be stated that major emphasis
should be made over the raising the satisfaction level of the workers. This is effective enough
to make sure that the rate of performance or workers can be encouraged to make sure of their
full efficiency to achieve the goals and objectives of the firm.
Regression:
Model Summaryb
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 .747a .558 .554 .56774165038
4265
1.963
a. Predictors: (Constant), Employee satisfaction, Ownership structure
b. Dependent Variable: Employee performance
This determines the relationship between the elements that are taken into
consideration. In this context, it can be stated that when the employee's satisfaction and
ownership structure have changes, then the rate of performance also affects. With this
respect, is can be stated that both employee sanctification and ownership structure have close
interrelation with the performance of workers. In accordance with the test performed it can be
state that when any factor that has inverse impact over the employee's satisfaction, then it
affects there performance of workers. There are different set of areas that has to be
considered by management through which they will be able to raise the satisfaction level of
employees and they will able to raise their performance. There are certain motivational
factors that are determined by workers and when these are satisfied, then workers will be able
to perform with their full potential. Further, there all the factors that due to which workers get
demotivated should be considered . There are many reasons that can affected the performance
of workers. In this context, it includes lack of proper training, lack of interest, lack of
communication, lack of understanding of the roles and responsibilities that has to be
performed by them. When all these elements are considered, then it is favourable enough to
make sure that all these elements are considered by the management and strategies are
delivered in order to raise the performance level.
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On the other hand, in an organization it requires proper communication so that trust
and confidence can be developed. This way the rate of coordination that one has for the work
will be raised. Further, there are different type of issues that are being faced by workers and
when there is effective communication, then it is helpful enough to determine the issues or
the problems that are faced by the employee. As per the findings, effective steps can be taken
that will enable to raise the performance level. There are conditions in which when workers
does not have proper information about the reporting person, then they fail to put on their full
effort to perform effectively and efficiently. When both terms have any impact, then it has
inverse impact over the employee's performance. As per the findings, made with the help of
SPSS, it can be stated that when there are any changes in both these term, then the rate of
impact over the performance of employees is about 0.747.
In this context, this can be determined that when management need to raise their
employees performance within small scale firms, then they have take up steps that will help
to improve the rate of satisfaction and Ownership structure. Proper steps needs to be
considered by the managers and appropriate strategies should be applied that will enable
them to improve the performance level of workers within the organization. Overall analysis
stated that changes in both the given element have high impact over the employees perform
and so management need to consider these elements. In addition to this, difference in these
terms also effective the performance of the workers.
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) .697 .203 3.439 .001
Ownership
structure
.282 .054 .298 5.224 .000
Employee
satisfaction
.579 .063 .527 9.239 .000
a. Dependent Variable: Employee performance
With the organization, is employees feel changes in any one element and that is
ownership structure and employees satisfaction, then there is impact over the performance.
More specifically, the changes in ownership structure is a type of systematic structure that
included proper flow of information. There are conditions in which workers fail to understand
the information that is being conveyed to them. This is because of land chain of
communication flow. It is important that employees are provided with the opportunity to have
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proper interaction with their managers so that they share their problems and also share the
issues that are faced by customers. They are the one who have direct interaction with
customers. They know better about the problems that are faced by them. For this purpose, it
is essential to have proper ownership structure that helps to improve the performance level.
At singular level this element is highly important for the workers so as to make perform with
their full efficiency.
Employees satisfaction is also equally important in order to raise the performance
level. It is essential to make sure that all the workers are satisfied as it has strong relationship
with performance of the employees. There are different type of strategies that can be included
by the firm. In this context, it includes reward system, informal meetings, additional
responsibilities, etc. All these some of the strategies that are applied by firm in order to make
sure that workers are satisfied and their rate of performance is also raised. When any changes
are identified in the satisfaction level of customers, then there are issues in which people get
to fail in raising the sales and profitability of the firm. With the help analysis made, it can be
stated that when there are any changes in this element, then the rate of performance get
negativity affected by 0.579.
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81

CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Conclusion.
There are different type of issues that are identified at Small and medium enterprise.
At all aspect employees play vital role. They are the one who make sure that all the products
and services are delivered to customers. When issues are faced by workers, then they it has
negative impact over the organization. There are different type of strategies that are
implement with the help of which management boost up the moral. Firm face issues due to
unsatisfied workers. In this context, one of the main issues that affect the business is due to
high turnover rate. The rate of workers turnover is high at SME. Different type of reasons are
identified due to which the rate of turn over is high. In this context, it includes reasons like
lack of understanding towards the roles that is to be performed by workers, lack of
motivation, lack of proper training and development, conflicts, etc. When all these aspects are
covered, then it becomes favourable enough to make sure that the rate of turnover is reduced.
As per the findings of literature review, it is identified that there is strong relationship
between employees performance and satisfaction. When workers are satisfied, only then they
get to understand the part of role that has to be performed by them. There are different steps
like incentives, higher responsibilities, etc. that are considered by management to make sure
that workers get satisfied. Further, it is identified that there are certain expectations that
employees and when these expectations are satisfied, then workers get encouraged and they
put on their full efforts to support the firm. At Kuala Lumpur Malaysia, workers expects to
get their minimum requirement to be fulfilled and if it not satisfied, then they do not get
satisfied and performance level also gets negatively affected. There are cases in which
workers fail to perform effectively and one of the reasons is due to lack of understanding
towards the work that is given to them. In this context, it is important for the firm to
understand the set of areas in which they require improvement. Accordingly, they should be
provided with proper training and this way their performance and satisfaction level can be
raised. Further, to monitor, there are different type of tools that are implemented. In this
context, one of the effective tool is 360 degree feedback. It enables to know where workers
stand. Further, the quality of work that is performed at helps to know where the employee
stands.
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There are different factors that contribute towards raising satisfaction level of
workers. When workers are satisfied, then it becomes helpful enough for them to understand
their customers and to deliver their services accordingly. Further, there are certain
expectation that workers have for the type of responsibilities or roles that is given to them.
There are different type of roles that has to be performed within the organization. When the
role is provided to worker as per their expectation, then it enables to boot their moral or to
increase their satisfaction level. Further, when there is proper security for the job they
perform, then it enables to encourage and raise their performance level. There are situations,
in which conflicts arises and this negatively affect the business performance. For example, a
set of role needs to be performed by a team and if there is conflict among workers, then the
time take to complete it will be more when the task is performed by a team where there is not
conflict.
As per the findings, for the data analysis made, it is identified that main issue that is
faced by workers with the organization is ineffective working environment. To perform a job
it requires to have effective tools and equipments provided so that the work given can be
completed effectively. The environment in which individuals work have positive and
negative impact. As per the outcomes of the respondents it is identified that at SME, the
working environment is not effective and this can be determined as the main reason due to
which employees remain unsatisfied. Further, there are different type of leadership styles but
as per the analysis made, it is identified that majority of workers think that democratic
leadership is most effective as provide workers with the opportunity to get involved in
decision making.
Moreover, motivation also affects the performance level of employees. When worker
has willingness and interest, then it has favourable aspect with the help of which employees
put on their full efforts. Further, one should have the willingness, interest and positive
towards the work they perform. Further, management need to take up proper steps so that
they understand the skills and capabilities that are performed by firm. Accordingly, work
should be divided so that the work that has to performed can be completed efficiently. In
order to reduce the turnover rate, one of the effective factors that supports is psychological
ownership. It helps to have proper positivity towards the roles that are performed by the
worker. Further, it also increases the commitment towards work and raises job satisfaction.
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5.2 Recommendation.
There are various recommendations that can be made with the help of which the rate
of employees satisfaction can be raise. One of the benefit to firm is that they will get to raise
their profitability and to reduce their employees turnover rate. With this respect, below given
are the different ways with the help of which the rate of employees satisfaction can be raised:
Positive working environment: To performance with their full efficiency, it is
important for the management of SME's to make sure that they provide their workers with
healthy and positive environment in which they can work. There are many conflicts situations
that arise within the firm. With this respect, proper steps should be take so that they will be
able to resolve the conflicts and this way the coordination that employees have will get
raised. Positive environment can be developed with effective communication. When there is
proper communication, then members of the firm will get to know each other. They will
develop trust confidence within the work their perform and over other staff members.
Training and development: There are conditions in which workers fail to performance
effectively and this is due to lack of understanding towards the work they perform. In this
context, management should understand the areas in which they need to improve and for that
proper monitoring should be made. As per the findings, workers should be provided with
proper training and development. This way the areas in which they lack can be reduced and
the rate of satisfaction will also be increased. This way the type of role that has to be
performed will be done with their full efficiency.
Motivational theories: There are various type of motivational theories that are
implemented to boost up the moral of employees. These enables to raise their satisfaction
level and willingness towards the work they perform. In this context, it includes Maslow's
hierarchy of need, Theory X and Theory Y, etc. Among all these one of the effective theory
that can be implemented is Maslow's hierarchy of need. This is an effective one as it covers
all the essential areas with the help of which workers can be satisfied. It covers the basic
requirements which when fulfilled, then workers get satisfied.
Additional responsibilities: When same type of role is performed by workers again
and again, then it affects the performance and satisfaction level. There are certain
expectations that one has over the work they perform and when same set of work is
performed, then they fail to list out the development that they have made. However, by
making sure that workers are provided with additional responsibilities enables to increase the
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satisfaction level as one get to understand the development that they have made through the
additional roles that is provided to them.
Workforce engagement: All workers should be engaged for the activities that are
planned within the organization. When workers are not engaged, then they develop a feeling
that they are neglected. With the help of engagement, workers develop a feeling that they are
important for the firm and all the type of suggestions that are given by them are effective and
the aim that are developed by the firm will be achieved and firm will get to raise their
profitability.
Recognition and rewards: There are cases in which workers put on their full efforts
towards the work they perform. However, with time the efficiency get reduced. This is a type
of issue in which the business gets affected. However, the rate of satisfaction can be raised
when workers are provided with appreciation or rewards for the quality work that is
performed by them.
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APPENDIX
Questionnaire
Section 1 – Performance Related Questions (P)
P1. You experience personal growth such as updating skills and learning different jobs (P1)
 Strongly Disagree = (1)
 Somewhat Disagree = (2)
 Neither Agree nor Disagree = (3)
 Somewhat Agree = (4)
 Strongly Agree = (5)
P2. Autocratic style of leadership in long run can directly results in increasing the degree of
dissatisfaction (P2)
 Strongly Disagree = (1)
 Somewhat Disagree = (2)
 Neither Agree nor Disagree = (3)
 Somewhat Agree = (4)
 Strongly Agree = (5)
P3. Do you agree that lack of motivation affects the employee's performance? (P3)
 Strongly Disagree = (1)
 Somewhat Disagree = (2)
 Neither Agree nor Disagree = (3)
 Somewhat Agree = (4)
 Strongly Agree = (5)
Section 2 – Employee Satisfaction Related Questions (S)
S1. Appropriate growth and development opportunities is required to be provided to each and
every employees in order to make them satisfied and feel motivated (S1)
 Strongly Disagree = (1)
 Somewhat Disagree = (2)
 Neither Agree nor Disagree = (3)
 Somewhat Agree = (4)
 Strongly Agree = (5)
S2. Overall, You are satisfied with my job (S2).
 Strongly Disagree = (1)
 Somewhat Disagree = (2)
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 Neither Agree nor Disagree = (3)
 Somewhat Agree = (4)
 Strongly Agree = (5)
S3. By having improvement in income level the satisfaction can also be advanced (S3)
 Strongly Disagree = (1)
 Somewhat Disagree = (2)
 Neither Agree nor Disagree = (3)
 Somewhat Agree = (4)
 Strongly Agree = (5)
Section 3 Psychological Ownership Related Questions (PO).
PO1. Do you agree that psychological ownership provides ability to advance coordination at
the work place (O1).
 Strongly Disagree = (1)
 Somewhat Disagree = (2)
 Neither Agree nor Disagree = (3)
 Somewhat Agree = (4)
 Strongly Agree = (5)
PO2. Do you agree that work commitment and job satisfaction can be improved through
consideration of psychological ownership factors (PO2)
 Strongly Disagree = (1)
 Somewhat Disagree = (2)
 Neither Agree nor Disagree = (3)
 Somewhat Agree = (4)
 Strongly Agree = (5)
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APPENDIX
There are about 221 employees who are considered in order to get adequate
information about the related with the employee's performance. With this respect, below
given are the respondents for each of the questions:
P1: Personal growth such as updating skills and learning different jobs
You experience personal growth such as updating skills and learning different jobs
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 36 16.3 16.3 16.3
Somewhat Disagree 17 7.7 7.7 24.0
Neither Agree nor
Disagree 35 15.8 15.8 39.8
Somewhat Agree 76 34.4 34.4 74.2
Strongly Agree 57 25.8 25.8 100.0
Total 221 100.0 100.0
In accordance with the above conduced data it can be stated that 57 of the employees
strongly agree that personal growth like skills and learning are highly important for the job.
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Further, there are 76 of the worker who somewhat agree to it. On the other hand, there are
also 15.8% of the employees are not sure for it. From this it can be stated that majority of
individuals working within the firm understand the important of having skills and learning as
it helps to perform the part of role in an effective manner.
P2: Autocratic style of leadership in long run can directly results in increasing the degree
of dissatisfaction
Autocratic style of leadership in long run can directly results in increasing the degree
of dissatisfaction
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 11 5.0 5.0 5.0
Somewhat Disagree 14 6.3 6.3 11.3
Neither Agree nor
Disagree 27 12.2 12.2 23.5
Somewhat Agree 63 28.5 28.5 52.0
Strongly Agree 106 48.0 48.0 100.0
Total 221 100.0 100.0
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In accordance with the analysis made, it can be determined that there are different type of
leadership styles that can be followed within the organization. Among all these autocratic
style is effective to make sure that in long run the degree of dissatisfaction is high. It is
important to make sure that management make use of other leadership style. In this context,
the rate of employees is about 48% of the total sample size. Further, there are 28.5% of the
individuals who are somewhat satisfied.
P3: Lack of motivation affects the employee's performance
Do you agree that lack of motivation affects the employee's performance?
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Disagree 8 3.6 3.6 3.6
Somewhat Disagree 5 2.3 2.3 5.9
Neither Agree nor Disagree 13 5.9 5.9 11.8
Somewhat Agree 47 21.3 21.3 33.0
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Strongly Agree 148 67.0 67.0 100.0
Total 221 100.0 100.0
As per the above, conducted analysis, it can be stated that majority of the workers
think that motivation play vital role in raising performance level. There are certain set of
motivational factors that are determined by employees and when they are fulfilled, then
workers get motivated. More specifically, there are about 67% of the total sample size who
think motivation is highly important. Further, there are 5.9% of the respondents who are not
sure whether motivation play vital role in raising performance. In addition to this, there are
3.6% of employees who strongly disagree.
S1: Growth and development opportunities is required to be provided to each and every
employees in order to make them satisfied and feel motivated
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Appropriate growth and development opportunities is required to be provided to
each and every employees in order to make them satisfied and feel motivated
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 8 3.6 3.6 3.6
Somewhat Disagree 9 4.1 4.1 7.7
Neither Agree nor
Disagree 28 12.7 12.7 20.4
Somewhat Agree 97 43.9 43.9 64.3
Strongly Agree 79 35.7 35.7 100.0
Total 221 100.0 100.0
There are certain set of personal goals that are developed by individuals and for this
purpose, it is important for the management to make sure that workers are provided with
proper opportunity and growth. Within an organization when workers does not get such
opportunities related with growth, then it has negative impact over the performance level. As
per the data collected, it is identified that 3.6% of the workers strongly disagree to the to it.
Further, there are 43.9% of the respondents who somewhat agree that development growth is
important in order to satisfy workers and to raise their performance level.
S2: Satisfaction with job
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Overall, You are satisfied with your job
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 10 4.5 4.5 4.5
Somewhat Disagree 11 5.0 5.0 9.5
Neither Agree nor
Disagree 28 12.7 12.7 22.2
Somewhat Agree 102 46.2 46.2 68.3
Strongly Agree 70 31.7 31.7 100.0
Total 221 100.0 100.0
It is important for the management to make sure that workers are provided with all
type of services that will enable to deliver them with healthy environment in which they work
effectively and efficiently. Majority of the workers are fully satisfied. This shows that all the
organizations are working with an aim to make sure that workers get satisfied. Sales and
profitability of the firm gets negatively affected when employees are not satisfied. There are
12.7% of the workers who are not sure whether they are satisfied with the type of job they
perform.
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S3: Improvement in income level the satisfaction can also be advanced
By having improvement in income level the satisfaction can also be advanced
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 7 3.2 3.2 3.2
Somewhat Disagree 18 8.1 8.1 11.3
Neither Agree nor
Disagree 22 10.0 10.0 21.3
Somewhat Agree 59 26.7 26.7 48.0
Strongly Agree 115 52.0 52.0 100.0
Total 221 100.0 100.0
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Different people have diverse set of preference some may be satisfied with the type of
working culture they have, some will be satisfied with the type of job they perform. However,
there are some who will be satisfied with the income that is given. In this context, income of
the workers play vital role in raising the performance level. There are about 115 of the
respondents who strongly agree that increase income enables to boost up the moral of
workers and their performance also increases. On the other hand, there are 7 of the workers
out of 221 who are strongly disagreed to it.
PO1: Psychological ownership provides ability to advance coordination at the work place
Do you agree that psychological ownership provides ability to advance coordination
at the work place
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Disagree 81 36.7 36.7 36.7
Somewhat Disagree 18 8.1 8.1 44.8
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Neither Agree nor
Disagree 40 18.1 18.1 62.9
Somewhat Agree 58 26.2 26.2 89.1
Strongly Agree 24 10.9 10.9 100.0
Total 221 100.0 100.0
In accordance with the above conducted analysis, it can be stated that majority of the
workers strongly dissatisfy that psychological ownership provides ability to advance
coordination at the work place. More specifically, there are about 36.7% of the respondents
who think this. Further, there are 8.1% of the workers who somewhat disagree. On the other
hand, there are 10.9% of the employees who strongly agree that psychological ownership
does have the ability to raise the performance level within organization. In addition to this,
there are 18.1% of the respondents who are not sure to it.
PO2: Work commitment and job satisfaction can be improved through consideration of
psychological ownership factors
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Do you agree that work commitment and job satisfaction can be improved through
consideration of psychological ownership factors
Frequency Percent Valid Percent Cumulative
Percent
Valid
Strongly Disagree 8 3.6 3.6 3.6
Somewhat Disagree 10 4.5 4.5 8.1
Neither Agree nor
Disagree 9 4.1 4.1 12.2
Somewhat Agree 46 20.8 20.8 33.0
Strongly Agree 148 67.0 67.0 100.0
Total 221 100.0 100.0
As per the research conducted from 221 workers, of different organizations, it can be
stated that majority of the employees think that Work commitment and job satisfaction can be
improved through consideration of psychological ownership factors. In this context, there are
148 of the respondents who strongly agree to it. Further, there are 46 of the employees who
somewhat agree. On the other hand, there are 8 of the workers who does not agree to it.
Further, there are worker who somewhat agree for the same.
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