Impact of Employee Job Satisfaction and Motivation on Job Performance: Bunnings Warehouse, New Zealand

Running head: RESEARCH REPORT
Impact of employee job satisfaction and employee motivation on employee job performance:
Bunnings Warehouse, New Zealand
Name of the Student:
Name of the University:
Author note:

1RESEARCH REPORT
Abstract
Bunnings Warehouse is one of the leading home improvement retailers in Australia and New
Zealand. The store of Bunnings in New Lynn, New Zealand has been facing some challenges in
the matter of increasing the job satisfaction and motivation of the employees to handle the
issues of employee retention and absenteeism. The researcher aimed to provide solutions to
this problem and to do this, he had conducted a primary research on 60 employees of Bunnings
and collected primary data through a survey. The survey questionnaire contained multiple
questions on the aspects of job satisfaction, employee motivation and performance of the
employees. Statistical analysis, that is, descriptive analysis, reliability test, correlation and
regression analysis were performed on the data. It is found that, the respondents have mostly
agreed and strongly agreed to the factors identified under each category. However, from the
correlation and regression analysis, significant relationship among the variables were not found,
which can result in accepting or rejecting the hypotheses. It is assumed that the survey
questionnaire had structural issues and selection of the variables was not accurate, which led to
insignificant results in this research study.

2RESEARCH REPORT
Introduction
Bunnings Warehouse is Australia and New Zealand’s leading retail store of home
improvement and outdoor living goods. The company was established in 1886 in Perth,
Australia. After it was acquired by the Australian retail giant Wesfarmers in 1994, the business
was expanded in multiple locations in Australia and also in New Zealand, UK and Ireland. It
provides hardware supplies to the project builders, housing industry and to the commercial
traders. In 2017, the total revenue for Bunnings was $11.5 billion (bunnings.co.nz, 2018). It has
around 40000 employees across Australia and New Zealand. The internal and external
stakeholders of Bunnings New Zealand are the thousands of employees, suppliers, contractors,
distributors and millions of customers across the country. By December 31, 2017, Bunnings had
253 warehouses, 33 trade centers, 77 small stores and 3 frame and truss stores across New
Zealand and Australia, and people involved in all these centers are the stakeholders of
Bunnings (Garcia, 2017).
Being a multinational company, owned by the retail giant Wesfarmers, Bunnings has
almost 50 store locations in New Zealand and has strong employee strength. The business is
still expanding in New Zealand. As the business is growing and number of employee is
increasing, Bunnings also faces challenges in job satisfaction, motivation and the job
performance of the employees. The particular issue of the research is that the warehouse is
facing challenges in improving employee job satisfaction and increasing motivation to
maintain retention of employees and absenteeism.
Research aim
This study aims to investigate to what level of extent makes employee’s job satisfaction
and intrinsic or extrinsic motivation factors impacts on employees’ job performance (Task and
Contextual performance) of Bunnings Warehouse, New Lynn.
Research objectives
The objectives of the research paper are:
 To examine the factors contributing in employee motivation and job satisfaction

3RESEARCH REPORT
 To evaluate the impact of employee motivation and job satisfaction on the performances
of the employees
Research questions
Based on issues at Bunnings Warehouse, New Lynn this study addresses and investigates
following questions:
 Question 1: Is there an impact on employee’s job performance by employee job
satisfaction?
 Question 2: Is there an impact on employees’ job performance by employee motivation?
Research hypotheses
H10: There is no impact of employee’s job satisfaction on employees’ job performance.
H1: There is a positive or negative impact of employee’s job satisfaction on employees’ job
performance.
H20: There is no impact of employee’s motivation on employees’ job performance.
H2: There is a positive or negative impact of employee’s motivation on employees’ job
performance

4RESEARCH REPORT
Literature review
Factors of employee motivation
Employee motivation is a crucial factor that influences the job satisfaction as well as
productivity of the employees. It also affects the overall organizational performance to achieve
the goals and objectives, and hence, the organizations put high emphasis on increasing the
motivation of the employees. There are many factors that contribute in the employee motivation.
Maslow’s Hierarchy of Needs is the most applied theory in explaining the motivation of the
employees in a work place. The factors for motivations can be arranged in a pyramid, which
displays a hierarchy. According to Anderson (2014), people must satisfy their physiological
needs first, followed by the safety needs, belongingness or love needs, esteem needs and
finally the self-actualization needs for getting motivation. It does not necessarily mean that all
these needs must be satisfied for a human being to be motivated, but it implies the order of the
needs must be followed while fulfilling the needs.
The employees of any organization can be motivated, if the organization can fulfill their
hierarchy of needs. The employees must be provided enough remuneration to be able to have
the basic goods and services to meet the physiological needs. Financial security affects the
safety needs. The healthy working environment and cooperation and coordination among the
employees fulfil the need of love and belongingness with an organization (Lester, 2013).
Recognition for good work, respect from the other employees, and importance in the
organization meet the need of esteem and lastly, when an employee can achieve his full
potential by going through all the other needs, then his need of self-actualization is met, leading
to high level of motivation. Hence, following from the theory, it can be said, when an
organization suffers from the problem of lack of employee motivation and absenteeism, then it
can be inferred that the organization cannot fulfill the needs of security, belongingness and
esteem. This makes the employees leave the organization or remain absent from work (Niemela
& Kim, 2014).
At the same time, when an employee gets motivation from his organization, he feels
motivated to increase his productivity and give the best performance. Miner (2015) says that to
get the enough motivation, the hierarchy of needs of the employee has to be fulfilled by the
organization. Hence, it is seen that, an employee puts his best effort when he is motivated from
his work.

5RESEARCH REPORT
Factors of employee job satisfaction
Job satisfaction is a highly relative factor. Almost every organization faces the challenge
of providing job satisfaction to the employees. There are many factors that affect the job
satisfaction of the employees of an organization and motivation is one of them. When the
employees do not get motivation from their jobs, they do not get the job satisfaction (Ozguner &
Ozguner, 2014). Many theories have addressed the factors influencing job satisfaction of the
employees and one of the most commonly used theories in this regard is the Two Factor Theory
by Herzberg. This is also known as the motivation-hygiene theory or the dual-factor theory.
According to this theory, there are two sets of factors in a workplace, one set causes job
satisfaction, known as the motivation factors, and the other set, known as the hygiene factors,
causes dissatisfaction (Yusoff, Kian & Idris, 2013). Motivations factors are the intrinsic factors,
such as, rewards and recognition, value to the organization, sense of achievement, scope for
personal growth etc. These give rise to the job satisfaction of the employees. On the other hand,
extrinsic factors, such as, salary, fringe benefits, job security, working conditions, paid and
unpaid leaves, and organization’s policies, cause dissatisfaction regarding the job (Latham,
2012). These are the hygiene factors. This theory is also relevant for explaining the job
satisfaction of the employees.
Hence, increasing the job satisfaction of the employees requires not only the reduction
of the hygiene factors, but also increasing the motivation factors. Miner (2015) points out that
job satisfaction influences the employees to increase their productivity and perform well. Hence,
it is seen that, when an organization takes efforts to increase the motivation factors and reduce
the hygiene factors, the job satisfaction of the employees increases and that is reflected in the
work performance.
Gap in the literature
The theories on the job satisfaction and motivation have addressed only the specific
issues of satisfaction and motivation respectively. However, the combined impact of employee
motivation and job satisfaction on the employee job performances was not measured.