Organizational Behavior Essay: Happy Workers & Productivity

This essay critically examines the statement "Happy workers are more productive workers" within the framework of organizational behavior. It delves into the concepts of job satisfaction and job performance, defining them and exploring their interrelationship. The essay argues that job satisfaction, encompassing cognitive, affective, and behavioral aspects, positively influences job performance, supported by examples like Tesco's implementation of Maslow's hierarchy of needs. However, it also acknowledges that not all happy employees are necessarily productive, citing factors like employee engagement and external pressures. The essay further discusses Herzberg's two-factor theory and the impact of work design on employee happiness and productivity. Real-world examples, including case studies of Tesco and Asda, are used to illustrate the complexities of this relationship. The essay concludes that while the statement holds merit, its validity is contingent on various organizational and individual factors. This essay provides a comprehensive analysis of the topic, incorporating research findings and practical examples to offer a nuanced perspective on the link between employee happiness and productivity.

ORGANIZATIONAL BEHAVIOR
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ORGANIZATIONAL BEHAVIOR

“Happy workers are more productive workers”
In the present business environment, it is important for the management to emphasize on
keeping their employees happy as it leads to higher productivity. It has been examined that if
employees are satisfied then they give their best towards the assigned activities. But on the other
hand, it is the responsibility of the higher authority to focus on keeping their employees happy.
In this essay, the discussion will be made on the topic “Happy workers are more productive
workers”. The purpose of the essay is to discuss about the relation between happiness and
productivity of employees and also to check that whether happy workers are more productive or
not.
Employees are considered as an asset of the organization so it is important to maximize job
satisfaction as it helps in boosting the performance. The statement “Happy workers are more
productive workers” might be true if emphasis is given on the organizational behaviour concepts
such as job satisfaction and job performance. According to Hoffman and Miller 2013, “Job
satisfaction emphasizes on three factors linked with organizational behaviour such as cognitive,
affective and behavioural and it also determines the satisfaction in relation to human capital
management”. Job satisfaction also relates with the workers who are happy with their job and are
willing to perform to the optimum level (Yang, Jen-Shou, and Hung. 2017,1592). On the other
hand, job performance is linked with the effectiveness and efficiency towards work. If emphasis
is given on the concept of job satisfaction and job performance then it can be stated that these
concepts are interrelated. If employees are satisfied then only, they will perform better towards
the allocated work. In simple words, job satisfaction is also considered as the positive attitude of
employees towards work (Alegre, Mas-Machuca, and Berbegal-Mirabent. 2016, 1393).
Job satisfaction relates with the job performance as it has been examined that a satisfied
workforce will always be efficient and dedicated towards work which will lead to higher
performance. Employees in the workplace are satisfied when they are offered with different
benefits or when their needs and wants are satisfied. Job satisfaction has a direct link with the
happiness of the employees. It is noticed that workers have some expectations which should be
fulfilled as it can assist them in giving their best towards the work given by the higher
management. The expectations such as self-esteem, competitive salaries and benefits, flexible
timing and recognition has an important role in assisting the employees to be satisfied in relation

to the given work. From the employee’s perspective, the good job is the one in which the
employees earn more, have growth opportunity and also in which the company offers socialized
environment (Bani-Melhem, Zeffane, and Albaity 2018,1602). But on the other hand, there are
many cases in which the key value that makes the workers happy is respect which they get from
subordinates and supervisors. There are many researchers who stated that employees are happy
when their higher management is understanding, offers praise and also considers their opinions.
It is also investigated that job satisfaction is usually influenced by the age, qualification and also
environment in which the employees are surrounded. The research on happiness stated that social
relations with colleagues and friends are considered as essential cause of joy and happiness
(Adhikari, Wonseok Choi, and Sah. 2017, 68).
One of the best examples can be of Tesco company. It is analysed that employees in Tesco are
satisfied and happy as company offers various benefits such as maternity pay, retirement savings
plan, annual colleague bonus plan, holiday and sick pay, open plan offices, health and beauty
services and rewards (Tesco 2019).
It observed that to boost the job satisfaction which will lead to higher productivity of its
employees, the company has emphasized on the motivational theory related to “Maslow
hierarchy of needs” as seen in appendices image 1. In relation to the motivational theory
considered by the company, there are five stages on which the company has emphasized as it
satisfies the needs of the employees which assist in boosting the performance towards work. In
this theory, Maslow separated the basic requirements of workers which both result in boosting
the motivational level of workers. He also said that lower end needs are linked with
physiological and safety needs. Moreover, the needs which come under the category of higher-
order are satisfied internally in relation to social, esteem and self-actualization needs (Sherman,
Randall, and Kauanui 2016, 9).
The first stage is psychological need in which the company emphasizes on place of work,
regularly pay and lockers for personal belongingness. The second stage is security needs, in
which Tesco offers pension and sickness schemes. The next stage is social needs in which Tesco
focuses on promoting teamwork by considering the concept of “Steering wheel”. The fourth
stage is self esteem need in which the company focuses on self-respect and on providing 360-
degree feedback. The last stage is self-fulfilment in which there are various personal

development plans and also career progression programs conducted by Tesco. Therefore, it can
be said Tesco employees are happy and satisfied and due to this the company is known as third
largest retailer with the outlets across Europe, Asia and USA (Tesco 2019).
But on the other hand, it can also be said that every employee who is happy is not productive.
There are employees who are satisfied with the benefits provided by the management but they
are not able to give their best towards work. In this case, the company has to suffer the loss
which can also negatively impacts the growth. The employees are availing the benefits but they
are not showing engagement towards work which adversely impacts the job performance. For
example: As per the research done by “Deloitte Global human capital trends”, 2500 companies
in 90 countries are struggling to involve the employees towards work (World Economic forum
2019). Gallup research also stated that only 13% employees on the global platform are engaged
towards work but more than twice are not engaged and spreading negativity to others (Walsh,
Boehm, and Lyubomirsky2018, 200).
Today’s workforce is satisfied but they need more and more. It is investigated in the recent
study that almost 40% of the US employees works part time. Baby boomers who have lost the
jobs are out for 18-24 months. The millennials also want the jobs that are creative. In the present
era, retention is also the issue and it is stated that 26% of the US employees will going to change
their jobs this year, especially the one who are highly skilled and motivated. So, employees are
satisfied with the jobs but they have the feeling of getting more and more which directly affects
the overall performance in relation to the assigned work (Peng, Li, Zhang, Miao, Xiao, and
Zhang. 2016,52).
There are three features which impacts the performance such as ability, opportunity and
motivation. But one of the major factors that impacts performance is motivation. There are many
aspects of job satisfaction such as positive and negative aspects which directly impacts the
performance of the employees. Also, it has been stated by Herzberg that positive satisfaction is
linked with good experience and these are only because of achievement, recognition and
responsibility but he also stated that dissatisfaction can be caused by the hygiene factors such as
policy of the company, working conditions and personal life. He also said that if hygiene factors
are not considered then it may lead to dissatisfaction and can impact the overall productivity but
if the motivators are fulfilled then it would be easy to boost the satisfaction of the employees

(Smith, 2019,19).It is examined that work design also has a direct influence on employee
satisfaction and happiness. If the work design offers opportunity to the employees to develop and
grow and also offers flexibility in the work then it will directly boost the satisfaction level of
employees and will enhance happiness towards work (Zablah, Carlson, Donavan, Maxham III,
and Brown. 2016, 543). But on the other hand, there are also many other factors that leads to
unhappiness and low productivity such as repetition, work pressure and high work pace. For
example: Asda company accused the employees to consider the new contract “Contract6”. It has
been said by GMB Union that, employees of the company have been told that if they do not sign
the contract then they have to face unemployment (Ladders 2019). So, the action taken by the
company has enhanced the work pressure which also negatively impacted the productivity.
Hence, it can be said that the employees who are not happy are less productive.
Employees who are satisfied and happy towards the organizational functions plays an
important role in the overall growth of the organization in the competitive business world.
According to the research, it was examined that happy employees are 13% more productive as
compared to the employees who are unhappy. The research was done by British Telecom form
for six-month period. The employees of the company were asked to provide rating of their
happiness on the weekly basis for six month and this should be done by using the survey in
which there were five emoji buttons that shows the happiness level. The researchers compared
the employee’s happiness information against the analytics that company considered to examine
the productivity of employees in relation to call length, worker schedule and also percentage of
sales converted into sales (Judge, Timothy, Weiss, Kammeyer-Mueller, and Hulin. 2017, 356.)
Researchers also emphasized on the data linked with the attendance of employees, number of
hours worked and also satisfaction level of customer. Hence, the researchers evaluated that
workers who are happy were 13% more productive as compared to the weeks in which the
people being reported as unhappy. The employees who were happy not only worked faster but
also made more calls on hourly basis. The happy employees in the company attained 13% higher
sales in relation to the workers who are unhappy as seen in appendices image 2. The researchers
of the company stated that “to have the employees who are happy is not only good for wellbeing
but also helps to consider the positive outcome for the bottom line”. The researchers also stated
that happy workers do not actually produce more work but they are more productive in relation

to their time (World Economic forum 2019). Therefore, it is stated that the employees who are
happy are more productive as compared to the employees who are not happy in relation to the
assigned work. By examining the overall results, the team of the company also said that due to
routine call centre work is not enjoyable in itself, but the positive results are achieved as happy
workers bring happiness to the work rather than deriving from the job (Peñalver, Salanova,
Martínez, and Schaufeli. 2019, 378).
Therefore, by evaluating the entire paper it can be concluded that the statement “Happy
workers are more productive” is true. It can be stated that employees are happy in the workplace
only when they are satisfied with the job given to them. If employees are satisfied with their job
then it would be easy for the company to attain positive outcome. As, it is observed that to boost
the satisfaction level of the employees Tesco considers Maslow hierarchy of needs theory as it
boosts the motivation level which leads to higher satisfaction towards the assigned job role. The
company emphasizes on satisfying the needs of the employees so that it could be easy to boost
the job satisfaction which will result in good job performance. On the other hand, it has been
investigated that Asda company accused the employees to consider the new contract “Contract6”
which enhanced dissatisfaction among the employees and also directly impacted their
productivity. So, at last by examining the different real work examples it can be said that “Happy
employees are more productive”. The statement is true as happiness is internal feeling which
comes when employees are satisfied with the job. If the employees are satisfied with the job then
they put efforts to accomplish the targets and goals given by the management. So, it is the
responsibility of the management to emphasize on keeping their employees happy as it can help
in boosting the overall productivity in relation to the allocated job role.

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Appendices
A.) Image 1
(Source: Tesco,2019).

b.) Image 2
Source: (World Economic forum 2019).