Understanding Employee Satisfaction's Impact on Business Development

This report investigates the impact of employee satisfaction on business development, using H&M as a case study. The research aims to understand how employee satisfaction influences business growth, examining employee attitudes towards their work environment, identifying motivational factors, and analyzing the relationship between employee job satisfaction and organizational performance. The study employs a quantitative research approach, utilizing a questionnaire to collect primary data. The literature review explores the effects of employee attitudes, empowerment, and recognition on productivity and profitability. Key findings highlight the benefits of employee motivation in enhancing productivity, fostering loyalty, and ensuring employee retention. The report is structured with an introduction, literature review, research methodology, data analysis, and conclusion, providing a comprehensive analysis of the subject.

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To Understand the Impact of
Employees Satisfaction on
Business Development
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ABSTRACT
Present research is based on impact of the employee satisfaction on business development.
The aim of this research is “To understand the impact of employee's satisfaction on business
development.” A study on H&M. It is necessary for company to motivate the staff members for
sustaining employees and enhancing productivity of business. For conducting the literature
review part, there have been secondary sources used such as articles, journals, websites etc. In
conducting the research methodology, research onion has been considered by using different
layer. In literature review, positive and negative attitude of employees towards working
environment has been discussed. Empowerment, flexibility and give the employee recognition
are some main factors which company used to motivate employees has been examined through
secondary sources. There have been positivism philosophy, deductive research approach,
questionnaire strategy, quantitative research choice, primary data collection method, cross-
sectional time horizon and random sampling method used. There has been questionnaire
developed by collecting data from primary method because this gives the authentic information
regarding specific subject area. The key findings stated that employee motivation is beneficial
for enhancing the productivity and profitability of business. This helps in male employees loyal
and sustaining them at workplace for long period of time.
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TOPIC: “To understand the impact of employee's satisfaction on business development.”
CHAPTER 1- INTRODUCTION
1.1 Overview of research topic
Companies, in order to have a hold in market area it is important that they win in the
workplace i.e. their employees and other staff members because they are the one who can further
add profits or growth. However, this can be fulfilled by foster employee satisfaction so that they
can show their best abilities in providing benefits. Employee Engagement: Engagement of
employees always helps them in driving their performance because workers have better
understanding if their roles and responsibilities (Alegre, Mas-Machuca and Berbegal-Mirabent,
2016). As a result, this will enhance productivity level and benefits can be seen in the company’s
performance. Customer Satisfaction: Employees who are more engaged in workplace activities
are tend to be more loyal and doesn’t feel hesitated in putting extra efforts while serving their
valuable customers. Thus, this could help company in establishing a better relationship between
them and customers. Henceforth, subsequently it will improve sales and better customer
satisfaction.
1.2 Background of the research
Organisations are the important part of nation that aid in building economy and
infrastructure. This would be the reason that development of these is important in nature because
help in overall nation's growth. The success of organisation depends over many factors such as
conditions present in market, internal capabilities, employee's satisfaction etc. The factors which
are present in market are called external in nature. On these, organisation does not have control.
This would be the reason that the impact of these is quite unexpected and high. Effective use of
strategic development models and planning is the option that help to recover from the negative
impact of such changes. Internal capabilities includes the aspect of resource availability.
Presence of good number of resources always aid in performing better functions (Babalola,
2016). If not able to maintain that then this creates negative impact in process of attaining market
opportunities.
Workforce’s fulfilment is also one of the matter that impact the process of business
development. This is so because employee's are main asset of an organisation and completion of
business objectives totally depends over their effective performance of business functions.
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Employee's satisfaction refers as the positive attitude of employees towards the policies and
working situations present within an organisation. This also depicts as the persistence of positive
working environment where all can work with each other in team and accomplish goals on time.
Satisfaction of employees presents as their high involvement and engagement within business
activities that leads towards development of business in positive direction.
The organisation considered for carrying further research along with attainment of
appropriate findings in relation to the topic is H&M. This is a multinational organisation where
large number of employee's are working in all over the world (Chandra, 2016). The successive
level of an organisation depicts the satisfaction level of employees. The same is further
researched and justified from the identification of findings.
1.3 Background of the organization
Hennes and Mauritz (H&M), is a Swedish international corporation which majorly deals in
clothing and trade. The firm is recognized for its fast-fashion for all age group whether men,
women, teenagers or children. Currently, company is operating its business in around 50
countries with approximately 4,743 stores. Erling Persson, who founded this company nearly in
the year 1947. First store soled only women’s clothes and was opened in Vasteras, Sweden and
later second store sold men’s clothes which was opened in 1964. Hennes and Mauritz (H&M), ha
a significant role in providing goods and products online and with the online process company
offers its shopping facilities in nearby 33 countries. Besides this, corporation is environmentally
conscious as they are taking an initiative of selling second-hand clothes by requesting its
customer for dropping off any of their clothes. In term of outcome, it will assist organisation in
reducing their use of raw materials and other sources.
1.4 Rationale of the research
The justification behind carrying this investigation is about ascertainment of the role of
employee's satisfaction in development of business activities. This will help to clear out the
concept that appointing employee's in large number does no help to attain success. This would be
possible in the situation when they are fulfilled with the functioning conditions of an
organisation and provides their full support in completion of individual and organisational targets
(Coyne and et. al., 2017). In this regard, the primary reason behind responsibility this study is to
assess how employee satisfaction within the company may assist in developing its growth and
success as well. This investigation also support investigator in improving their abilities and
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awareness towards the particular investigation subject. With the assistance of this, researcher can
simply draw a suitable conclusion and make it more reliable. Furthermore, it is also carried out
with the aim of investigator self-investigator as they easily improve their personal skills that
assist in attaining optimistic outcomes at the end of the results.
1.5 Research Aim
“To understand the impact of employee's satisfaction on business development.” A study
on H&M.
1.6 Research objectives
 To study the attitudes of the employees towards their work environment.
 To identify factors that motivates the employees.
 To understand the relationship between employee, job satisfaction and performance of
the entity.
1.7 Research questions
 How is the approach of the workers differing towards their work environment?
 What are the factors that motivates the employees?
 What is the connection between employee, job contentment and presentation of the
organisation?
1.8 Structure of the research
This part plays a vital character in determining the entire study that may assist successfully
developing the effective and successful investigation. It also defines entire information about
each and every chapter that contributes in providing their actual analysis towards the particular
research subject and region as well.
Chapter 1: Introduction
This part of study plays an important role in providing overview of research topic that
assist researcher in shaping the positive and dependable results at the end of the investigation
(Hanaysha and Tahir, 2016). Along with this, it also includes aims and goals, rationale of the
study, background of the investigation project, overview of company and many more. All these
are may assist in attaining making whole research in reliable way.
Chapter 2: Literature review
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It is also important as it provide detailed and in-depth data about the investigation subject
with the purpose of drawing a suitable conclusion at the end of the study. In addition of this, it is
a part of secondary sources of data collection that provide published data that tis already used by
others and another research as well. One of the main advantages of this chapter is to provide
detailed information about specified topic that contributes in recovering the possibilities of
accomplishing consistent objectives.
Chapter 3: Research methodology
This section is also measured as a significant part that provide framework of
methodologies that may help researcher to collect applicable information. Mainly, it is related to
the procedures that implement or apply by surveyor in order examine the actual facts towards the
particular research theme (Choi and et. al., 2016). In this regard, researcher is accountable for
choosing right and suitable system and techniques to undertake the study in successful manner.
Chapter 4; Data analysis
It is significant for researcher to effectively analyse collected data and information that
may assist in determining the actual results within the investigation. In this, researcher use
thematic analysis that helps them in effectively presenting collected data in various graphical
representations. This will make engagement in accomplishing steadfast outcomes in an
appropriate way.
Chapter 5; Conclusion and recommendation
This section of study conclude entire activities that supports in developing reliable data
that hold in captivating right and appropriate judgment within the study to make it successful and
authentic. Along with this, this section also includes effective and necessary improvement that
required within the company and research as well. By this, investigator can develop a valid
investigation to attain positive results (Huang and Su, 2016).
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CHAPETR 2: LITERATURE REVIEW
This is one of the important sections of whole research as it includes theoretical
framework on the basis of specified research topic and area that support in drawing a valid
conclusion within the project. It is part of secondary method of data collection wherein
investigation gathers information from view point of different authors towards the impact of
employees satisfaction. This will provide support to researcher sin taking accurate decision
within the study that contributes in providing reliable results.
2.1 Attitude of the employees differ towards their work environment
As per opinion of Nikki Gill (2015) the work attitudes are feelings which employees have
towards the various aspects of working environment. The organisational commitment and job
satisfaction are main attitudes which are relevant to the necessary outcomes. Job is seen as a
feeling that workers have in a specific business environment. The employees 'attitude appears to
dominate the working environment, mainly linked to the values of employees, creating teams
and successful activities. The attitude is related to feelings, opinions and beliefs regarding the
aspects of working environment. Employee attitudes are strongly correlated with the various
motivational factors, including personal development, recognition, progression and promotion. It
encourages higher standards of productivity for the workforce and also provides the workers of
the company with greater psychological satisfaction. Workplace attitudes influence everyone in
the organization, from employees to consumers and even the owner of the company. Attitudes
lead to improving the existing working environment that determines values, efficiency and team
building skills.
At the workplace with positive attitude, competition is same as motivated that inspired the
staff members to performance at best in order to improve productivity in their creativities so that
they will feel that their ideas will contribute towards success of a company. Maintaining positive
attitude at workplace will provide benefit to career of employees and also towards promotion.
The optimistic approach is most necessary qualities that administrator looks for in applicants and
also the teammates. Managing and keeping optimistic approach on daily basis at place of work is
harder than employees may think the work is demanding and most challenging and many of the
employees face obstacle and their lines on weekly basis. It is needed for the workers to
concentrate on dealing with the rising complexities and also concentrate on attaining this explicit
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objective within the granted time frame. On the other hand, negative attitude at workplace
develop atmosphere of the distrust between the staff members and this causes staff members to
attempt to attend the organisational goals in a successful manner. The negative attitude towards
the work develops the negative working environment to company and also create the negative
relationship with staff members. Other than this, the negative attitude to employees arise at
workplace due to some problems for an instance negative communication with the management,
negative working environment, not provide the roles according to interest area of employees and
many others.
2.2 Factors that motivates the employees
On the basis of Amanda C. Kooser (2020) employee satisfaction refers to extent of energy,
imagination and commitment that employees of an establishment carry to their jobs. It is method
for motivating the staff members in contest to intrinsic and well as inner force to put essential
efforts and also performances towards the work connected actions. Employee’s motivation is
necessary for the H&M organisation as this can lead to enhance efficiency and also allow a
corporation to achieve high output altitude. Every employee has various set of the factors which
help in motivate them to do best work. Management must consider the employee motives to
maintain and grow a company that receives maximum support from their employees effectively.
Motivation is a positive force that pushes, encourages and makes the most of employees.
Balancing and accomplishment of goals, specific priorities, appreciation, input and management
support all lead to growing encouragement for the workplace. The environment is optimistic and
so many leaders would like to learn new ways to inspire their workers. There are some different
factors used by H&M to motivate employees:
Give employee recognition- This can influence the motivation when this is provided and
executed in an effective manner. It is one of main successful way to motivate the employees. The
Recognition of employees follows the trust as a main factor in employee satisfaction with
supervisor in also workplace.
Sharing profits to performance improvement- Encourage workers with an income sharing
reward scheme. It raises workers 'wages thus helping to increase company revenue. This
approach encourages mutual interests and cooperation at the same time. It also gives workers a
sense of ownership and can boost efficiency, improve profits and raise morals.
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Empowerment- It is necessary for H&M company to providing the staff members more
responsibilities and also authority about decision-making that enhance their control over tasks for
which they are mainly responsible as provide them better equipments so that they can carry out
their tasks in an effective manner. From this, the frustration feelings arising from held
accountable for something that does not have resources to carry out diminished. This will help in
improving the way to attend the set task.
Give professional enrichment- Increasing the participation of staff in higher education or in
business organizations. Give the reimbursement for fees or send staff to conferences and
seminars. If a staff member is inspired to move forward, provide incentives for mentoring and
shading. Encourage workers to learn from a technical point of view, wherever possible.
Flexibility- There is a need to H&M Company to providing the flexibility to staff members
in their work that can help them to motivate. The flexibility in time helps in accommodates
vacation days, work from home and holidays options which are all the influential inducements.
These kinds of Perks can be provided as bonus to Staff members who can meet certain
expectations or goals. The flexible preparation opens up possible to recruit the Qualified and
experienced staff members which cannot work traditional 40 hours week in office because of
family and some other reason. Appreciate staff members being capable to have life exterior
business for shop so it is necessary for company to support the employees so that they can
motivate and work effectively to attend the organizational objectives.
2.3 Relationship between employee, job satisfaction and performance of the organisation
According to viewpoint of Danica Bakotic (2020) Employees are the main part of company
and they give their contribution in success of company. A company mainly hires the employee
that performs the specific job role and focus on enhancing the organisational efficiency level.
There is a direct association in the job fulfilment, organisational performance and the employee.
The contributions of employees are considered to be an important metric for assessing success
for individuals. If the company workers are happy, the company's efficiency and profitability are
expected to increase. The business is strongly interlinked with job satisfaction and efficiency, as
the concentration of highly satisfied workers on the high quality of work contributing to
increased productivity. The job fulfilment is explained as extent to which the staff member feels
motivates, satisfied and content with their job role. It happens when workers feel that they
having the career development, comfortable working environment and the job stability in an
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organisation. On the other hand, organisational performance is related to actual output or result
as measured against the intended outputs. This consists analysing the performance of company
against its goals and aim. Its main focus on the three main objectives for an instance financial
performance, market performance and value performance. The output of the company is linked
to the progress of a structured group of individuals with a common objective. Although there is a
obvious causality directions in connection among the job fulfilment and the organisational
performance. The attitudes of the staff members have connections with the performance of
company and the outcomes. If the employees will be satisfied from their job then this will assist
in ornamental the organisational presentation and gain the competitive benefit to company in an
effective manner.
Gap analysis: Gap analysis is done to identify and compare between the actual performance
which was supposed to be achieved and what has been achieved. In an organisation, this can be
used in different fields such as to analyse the gap between sales, financial performance etc.,
Although, literature review provided with the all the suitable information but in some aspect
needs to have in-depth studies. Like in future researcher can find out the relationship between the
attitude of a workers and working environment. For example: whether having a positive
environment at workplace shows a different attitude as compared to negative environment. This
will help in having a proper understanding between variables and provide with adequate
information. Moreover, as a further study, it can also be analysed that does motivation always
delivers with a positive outcome or does it have a bad impact on the performance of an
individual like it develops a sense of overconfidence or not.
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