Impact of Job Satisfaction on Organizational Performance: A Case Study of Tesco

Running head: DISSERTATION
An analysis of Impact of Job Satisfaction on Organizational Performance: A Case Study of
Tesco
Name of the student:
Name of the University:
Author’s Note:

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ......................... whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the............... [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
Issue in terms of job satisfaction for the employees of Tesco has been identified that is affecting
the performance of the organization. Lack of satisfied workforce in Tesco has lowered the
organizational performance, as the employees are having minimal commitment and engagement
towards their job roles and responsibilities. Higher level of casualness has been noticed among
the existing workforce of Tesco that has hampered the performance of the organization thereby,
affecting the productivity and sales of the company. The research will also help to identify the
main factors of lack of job satisfaction for the current employees Tesco out of the different
factors thereby, evaluating the potential reasons why the company is lacking in achieving the job
satisfaction factors (Saeed et al. 2014). After identifying the gaps, the research will help in
finding methods of achieving job satisfaction for the employees of Tesco and improving the
organizational performance by improved service quality and increased productivity. Thus, the
research is significant, as this will help in analyzing the impact of job satisfaction on
organizational performance for Tesco.
The researcher has applied positivism philosophy, deductive approach and descriptive research
strategy. Additionally, the researcher has used primary quantitative data collection technique for
collecting data for the survey research strategy. The researcher has selected 200 employees of
Tesco by random sampling technique and analyzed the collected data by conducting both
descriptive analysis and inferential analysis.
The results mentioned above highlights that the female employees of Tesco agree that employee
job satisfaction highly influences the performance of the employees. The correlation value
between job satisfaction and relationship with co-workers is 0.749 and perceived organizational

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support and job satisfaction is 0.721 respectively thereby, signifying strong association between
the variables. Thus, both the factors effect employee job satisfaction. The P value of hypothesis 2
is 0.000 highlighting that the P value is less than 0.05 thereby, rejecting the null hypothesis.
Thus, it can be job satisfaction has no impact on the organizational performance.

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Table of Contents
Chapter 1: Introduction..................................................................................................................10
1.0 Overview.........................................................................................................................10
1.1 Problem statement...............................................................................................................11
1.2 Research aim........................................................................................................................12
1.3 Research objectives.............................................................................................................12
1.4 Research questions...............................................................................................................12
1.5 Research hypothesis.............................................................................................................12
1.6 Research rationale................................................................................................................14
1.7 Structure of the research......................................................................................................15
1.8 Summary..............................................................................................................................16
Chapter 2: Literature review..........................................................................................................17
2.0 Overview..............................................................................................................................17
2.1 Conceptual framework.........................................................................................................17
2.2 Concept of job satisfaction..................................................................................................18
2.3 Factors affecting job satisfaction.........................................................................................18
2.3.1 Working environment...................................................................................................18
2.3.2 Job security...................................................................................................................19
2.3.3 Promotion and pay........................................................................................................20

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2.3.4 Relationship with co-workers.......................................................................................20
2.3.5 Flexibility......................................................................................................................21
2.3.6 Perceived organizational support..................................................................................21
2.4 Theory of job satisfaction....................................................................................................22
2.4.1 Hertzberg’s two-factor theory of job satisfaction.........................................................22
2.5 Challenges faced in ensuring job satisfaction......................................................................23
2.6 Concept of organizational performance...............................................................................24
2.7 Factors affecting organizational performance.....................................................................24
2.7.1 Employee satisfaction...................................................................................................24
2.7.2 Employee engagement..................................................................................................25
2.7.3 Risk management capabilities......................................................................................25
2.7.4 Involvement of the stakeholders...................................................................................25
2.7.5 Organizational values and cultures...............................................................................25
2.7.6 Creativity and innovations............................................................................................26
2.8 Impact of job satisfaction on organizational performance..................................................26
2.9 Summary..............................................................................................................................27
Chapter 3: Research methodology.................................................................................................28
3.0 Introduction..........................................................................................................................28
3.1 Research outline...................................................................................................................28
3.2 Research philosophy............................................................................................................28

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3.2.1 Explaining the selection of positivism philosophy.......................................................29
3.3 Research approach...............................................................................................................29
3.3.1 Explaining the selection of deductive approach...........................................................29
3.4 Research design...................................................................................................................29
3.4.1 Explaining the selection of descriptive design.............................................................29
3.5 Research strategy.................................................................................................................30
3.5.1 Explaining the selection of survey strategy..................................................................30
3.6 Sampling technique and sampling technique......................................................................30
3.6.1 Explaining the selection of random probability sampling technique...........................30
3.7 Data collection technique....................................................................................................31
3.7.1 Explaining the selection of quantitative data collection technique..............................31
3.8 Data analysis technique.......................................................................................................31
3.8.1 Explaining the selection of quantitative data analysis technique.................................31
3.9 Ethical considerations..........................................................................................................31
3.10 Accessibility issues............................................................................................................32
3.11 Summary............................................................................................................................32
Chapter 4: Data Analysis...............................................................................................................33
4.0 Introduction..........................................................................................................................33
4.1 Descriptive analysis.............................................................................................................33
4.1.1 Demographic analysis...................................................................................................33

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4.2 Inferential analysis...............................................................................................................51
4.2.1 Correlation analysis......................................................................................................51
4.2.2 Hypothesis 1.................................................................................................................52
4.2.3 Hypothesis 2.................................................................................................................54
4.3 Summary..............................................................................................................................55
Chapter 5: Conclusion and recommendations...............................................................................57
5.0 Conclusion...........................................................................................................................57
5.1 Linking with objectives.......................................................................................................58
5.2 Recommendations................................................................................................................59
5.3 Future scope of the study.....................................................................................................60
References......................................................................................................................................61
Appendices....................................................................................................................................67
Appendix 1.................................................................................................................................67
Survey questionnaire.............................................................................................................67
Appendix 2.................................................................................................................................73
Factors influencing job satisfaction.......................................................................................73
Appendix 3.................................................................................................................................74
Regression statistics output....................................................................................................74
Appendix 4.................................................................................................................................75
Regression statistics output....................................................................................................75