Impact of Job Satisfaction on Employee Performance

Running head: EMPLOYEE SATISFACTION AND EMPLOYEE PERFORMANCE
Professional Project: Impact of Employee Satisfaction on Employee Performance
Name of the Student
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Executive Summary
The main purpose of this report is to explore the impact of employee satisfaction on employee
performance. This report sets three research questions and this report aims to meet these research
questions. The first question tries to focus on factors of employee satisfaction within the
Australian workplace. The second question is about employees' performance that can bring
productivity to the organisation. The last question of this report focuses on the impact of
employees' satisfaction within the workplace that can bring employees' performance.
In the literature review section, previous literature based on the similar topic has been reviewed.
Theoretical understanding of the subject area of employees' satisfaction has been explained in an
argumentative way. Herzberg's Two Factor Theory and Discrepancy theory have been described
to offer the insights of the motivation and job satisfaction of the employees that can provide
employees' performance. Employees' performance is related to the employees' motivation,
employees' interest in work, workplace environment, leadership and incentives criteria.
In order to conduct the report, data has been collected from secondary data sources like ABS
Australia and OECD Australia. This report is solely depended on secondary sources. Secondary
sources of information have been analysed in qualitative data analysis technique. Thematic
analysis has been conducted to analyse the sources of information. The researcher segregated the
information into four themes to analyse the data with graphs and pie-charts.
This study concludes relating questions to findings and analysis. Recommendations have been
given on increasing employees' engagement within the workplace and increasing productivity of
the employees.

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Table of Contents
1. Introduction..................................................................................................................................4
1.1 Problem statement..................................................................................................................4
1.2 Research aim..........................................................................................................................5
1.3 Research questions.................................................................................................................5
2. Literature review..........................................................................................................................6
2.1 Concept of employees’ satisfaction and employee performance...........................................6
2.2 Theoretical understanding of employees’ satisfaction...........................................................6
2.3 Factors that drive employee satisfaction within organisations..............................................7
2.4 Impact of employee satisfaction on employee performance..................................................8
2.5 Reasons behind low employee performance..........................................................................8
3. Research Methodology..............................................................................................................10
3.1 Data collection procedures...................................................................................................10
3.2 Data analysis........................................................................................................................10
4. Findings and analysis.................................................................................................................12
5. Discussion..................................................................................................................................18
5.1 H1: Employee satisfaction can impact on employee performance.......................................18
5.2 H1: Employee performance can influence organisation's productivity................................18
6. Conclusion.................................................................................................................................20
6.1 Addressing aim and research questions...............................................................................20

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6.2 Limitations...........................................................................................................................21
6.3 Recommendations................................................................................................................21
Reference List................................................................................................................................23

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1. Introduction
The main purpose of this study is to find out the relationship between employee
satisfaction at the workplace on organisational performance. Secondary research is conducted to
get the information related to the employees' satisfaction at the workplace and detailed analysis is
done to show the connection between two variables. Employees' satisfaction determines the
organisational performance to meet the objectives of the organisation. In this study, problem
statement of the research area and aim, objectives are stated clearly. In the literature review
section, theoretical perspectives of the scholarly articles are reviewed. Data collection method
and data analysis are selected in methodology section and secondary data analysis is done based
on the research objectives.
1.1 Problem statement
Employee satisfaction comes from good salary, compensation, motivation, the interest of
work and fringe benefits that the employers provide to the employees. As stated by Abbas et al.,
(2014), lack of employee satisfaction hinges on fulfilling relationship between management and
employees to be productive and it can influence the success of the organisations. Employees
become happy when their desires get fulfilled, however, the hostile atmosphere in the workplace
does not bring employee satisfaction. When employees do not like to work in the workplace due
to lack of job satisfaction, this vibe spreads throughout the workplace. According to Den Hartog
et al., (2014), job satisfaction, employee commitment and employee productivity can bring
comparative advantage. The employees may leave the organisations and it lowers the employee
morale. High turnover can bring the unproductive time for the organisation as it reduces the
employee performance. Lack of employee satisfaction can lead to low employee performance

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and employees spend time gossiping and complaining to fellow workers. As opined by Cullen et
al., (2014), lack of employee performance can be observed when absenteeism, conflict among
employees, turnover, disorganised employees are increased as well as productivity.
1.2 Research aim
The aim of the research is to explore the impact of employee satisfaction on the
performance of the employees in Australia.
1.3 Research questions
 What are the factors that can bring employee satisfaction within an organisation?
 To what extent employee performance is important for an organisation to bring
productivity?
 What is the relationship between employees’ satisfaction on employee performance
within an organisation?