Impact of Job Satisfaction on Employee Performance and Retention

The assignment investigates how job satisfaction affects employee performance and organizational retention. By examining multiple theories such as intrinsic and extrinsic motivation, alongside empirical data from diverse industries, this paper aims to offer a comprehensive understanding of the role job satisfaction plays in enhancing employee productivity and reducing turnover rates. The analysis also explores practical HR strategies that can be implemented to boost job satisfaction, thereby fostering a more engaged and committed workforce.

Running head: JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
Fundamentals of Human Resource Management
[Job Dissatisfaction in Australian Employees]
Name of the student:
Name of the university:
Author note:

1JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
Introduction:
The role of human resource management is highly felt in making the employees satisfied
and committed to their respective firms. They design the job, which may or may not be
meeting all the needs of employees. This study is aimed at understanding the reasons behind
the dissatisfaction level in Australian employees. An incompetent management, poor job
design, and the job insecurity are found a few of the dominating reasons behind the reducing
level of commitment from Australia employees (Seek.com.au 2018). Bad management has
contributed in approximately around 28% cases when employees have adapted to turn off from
their existing job (Seek.com.au 2018). Lack of appreciation, which is one of the kinds of job
design, has also caused approximately around 26% of turn-offs (Seek.com.au 2018). The paper
seeks the validation of poor job design and job insecurity as significant causes behind the
dissatisfaction of Australian employees. Moreover, it also suggests a useful way out to the
Australian organizations when its employees are dissatisfied. Additionally, it also checks what
the Australian human resource managers can do to address the issue.
Definitions:
Poor job design can be defined as an ineffective or a less effective job structure, which is
not capable to retain its employees (Parker 2014). The human resource management is
responsible for job design. The HRM may design the jobs according to the demands of
employees, but they cannot as they are sort of different types of resources. Such resources
include but are not limited to like the financial resource (Lin and Wu 2014).

2JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
Job insecurity can be defined as a state where employees feel insecure and live in a
perception that they can anytime lose their job (Murphyet al. 2013). Such perceptions are not a
healthy sign for employees as well as for the employers. Such employees may lose their
motivation and become stressed, which is not good for their health and their presence of mind.
The fear to lose the job will keep them haunting, which will affect their concentration level
(Murphyet al. 2013).
Human resource management is like a system that supports the various core functions
of an organization like recruitment & selection, job designing and training & development
programs (Alfeset al. 2013).
Literature review:
Young Australians in specific countenance the job insecurity (Opray 2018). There can be
many reasons for it. Computerization and technology have been the one reason that has
created such state. It is interesting to understand what difference the advancement in
computerization and technology will bring to the job insecurity. The advancement will
automate a large number of works like accounting/clerks, cashiers/checkout operators,
workers of fabrication trades, wood machinists and few others (Opray 2018). Interestingly, 60%
of Australian students are getting trained on and are studying the occupations, which are
expected to wash out with the automation in the future ahead (Opray 2018). This will reduce
the number of Millennials getting the entry-level job as they are being trained in wrong skills.
Part-time workers have also added fuels to the threat that full-time Millennials are
surviving with (ABC News 2018). Healthcare, hospitality, and tourism sector have been biased

3JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
towards the concept (ABC News 2018). They have found part-timers more effective for the
work. This is indeed good for students as they will have a better chance of getting jobs after
they complete their job-related course. However, this is not equally good for those who have to
pay the mortgage loans (ABC News 2018). They will feel the pressure as they will have reduced
opportunities in the healthcare, tourism and the hospitality sector. There will be thousands of
people who have lost their job and are on the regular hunt to get a good job to support their
needs. However, they will not be able to get many opportunities due to increased competition
from the part-timers. Many workers will be left out due to the highlighted fact (ABC News
2018).
During the 1980s and 1990s, both women and men were able to earn more by working
more (ABC News 2018). However, the trend will witness a change. The concept of part-time
jobs may cause a serious impact on the trend. Both the partners may not necessarily be
working as full-timers, which mean that a combined take-home amount will be less (ABC News
2018). The cost of living keeps arising; however, the expected scenario does not offer them the
much-needed income. They want to live a settled life where they can provide their kids a good
life; however, they might not be able to do so (ABC News 2018).
According to Bakker and Demerouti (2014), employees should get ample opportunities
where they could explore their credibility. The authors have taken a conventional mode by
selecting the “Jobs Demands-Resources Theory” to understand the existing and the expected
situation in the Australian workplace. The authors have identified that employees perform
better in a challenging and resourceful environment (Bakker and Demerouti 2014). This means

4JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
that employees should be given enough support to make them engaged in their roles and
responsibilities. Such supports may include feedback, social support, challenging environment
and skill variety. Management can indeed influence the job demands of employees and the
resources. On the other hand, employees may also play significant roles in influencing them in
situations when managers are not available (Bakker and Demerouti 2014).
The theory takes a very conventional approach and explains that there is a need to have
a balanced relation between the job demands and the job resources. This means that different
job resources should be provided to employees. On the other hand, job demands should also
be there. If both the needs are not balanced, this will create a state of stress (Bakker and
Demerouti 2014). The current situation in Australia and the expected future is about to bring
increased stress to employees in particular to Millennial. According to the theory of Jobs
Demands-Resource, an ineffective structure of job system is a potential cause of job insecurity
(Bakker and Demerouti 2014). Moreover, to maintain a balanced relation between job resource
and the job demands, it is necessary to have an effective job design. Additionally, job insecurity
should also be mitigated (Bakker and Demerouti 2014).
The importance of job design and the severance of job insecurity can further be
understood from another theory of human resource management, which is the “Theories of
Performance”. The theory states that to achieve a better performance and profitable venture,
organizations need to have committed supports of employees (Dugguh and Ayaga 2014). This
further means the human resource management should plan accordingly to get a more
effective & superior work performance and an increased staff motivation (Dugguh and Ayaga

5JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
2014). It further identifies planning, categorizing, leading and controlling a four important
functions of management. This clearly indicates that the management can play a very
important role in controlling the workforce (Dugguh and Ayaga 2014).
The two theories such as the “Jobs Demands-Resources Theory”and the “Theories of
Performance” that have been selected in to understand the role of human resource
management in motivating the workforce do put forward some key findings. Those key findings
include but are not limited to such as the control that the HRM can have on the workforce and
the control will lead to a productive direction if it follows the fundamental beliefs of the
mentioned theories (Bakker and Demerouti 2014). The fundamental beliefs include influencing
the job demands & the job resources, putting an emphasized focus on the worker’s motivation
and facilitating a more effective workforce (Dugguh and Ayaga 2014). It also means that the
workforce should contribute in influencing their participation at the time they do not have any
temporal support from the managers. They should behave matured according to the Jobs
Demands-Resources Theory(Bakker and Demerouti 2014).

6JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
Figure 1: HRM Implications to Mitigate Employee’s Dissatisfaction
(Source: Kabungaidze, Mahlatshana and Ngirande 2013)
Appropriate HRM implications or the role of HR managers can be understood with the
help of diagram presented as (figure 1). The diagram clearly illustrates that job satisfaction and
employee satisfaction is a dependent variable. It means that the human resource managers
need to implement several strategies to counter back the job dissatisfaction of employees
(Kehoe and Wright 2013). Now, the diagram further explains the possible independent
variables, which are under the control of the human resource management. Those independent
variables include training & motivation, absenteeism & turnover, performance appraisal &
teamwork and employee participation & compensation (Kabungaidze, Mahlatshana and
Ngirande 2013). Training is an important tool that organization has in its control, which it can
use to raise the thought process in employees. Moreover, employees can be encouraged to
think matured by putting them in relevant training sessions (Elnaga and Imran 2013).

7JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
Employees can be motivated by letting them realized that they are valuable to the organization.
They are also the part of the business and that the organization is dependent on them
(Gorozidis and Papaioannou 2014).
Performance appraisal is another element of independent variable, which can influence
the participation of employees. Appraisal means that employers are concerned with the rising
challenges that employees encounter due to a varying nature of economy (Sallehet al. 2013).
Moreover, employees will feel justified in such situations. They will also feel their contribution
as valuable to the organization, which is why they have been considered for the appraisal
system (Sallehet al. 2013). Teamwork is another very important element, which can help
employees with low satisfaction level through providing them the job resources (Brunettoet al.
2013). It is important to understand the issue or the challenge that has caused them to become
dissatisfied. Teamwork may have a much deeper penetration into the cause. Employees
working in a team will be able to understand the concerns of each other. The human resource
management can utilize the process to get the valuable data on employees with dissatisfaction
level. Moreover, they will be able to plan accordingly to motivate them and to mitigate the
chance of turnover (Brunettoet al. 2013).
Employee participation can be increased through various strategies such as providing
them compensation benefits (Gupta and Shaw 2014). Compensation can be both the intrinsic
and the extrinsic (Legault 2016). Intrinsic compensation means giving encouraging comments to
employees on their achievement. This can be through the mails or physically by being at the
workplace. Managers need to take the initiatives and acknowledge the achievement of

8JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
employees through a professional set of words like “congratulation, well done & good job”
(Acar 2014). Extrinsic compensation can be the occasional bonus pay and the incentives on
target achievement (Acar 2014). Bonus pay as stated may be paid to employees on few
occasions like during the festivals (Acar 2014). Incentives can be paid to them on their
achievement of target. They will feel satisfied and valued. Moreover, they may feel to continue
the same work to get many such values in future also. This may also encourage others who are
failing to achieve the target (Acar 2014). Some other monetary values can also be given like
voucher cards with a certain value of amount. Any sort of monetary values is a good source of
motivating employee’s participation provided the values are both justified and useful as well
(Acar 2014).
Absenteeism is a loss of organizational productivity. Organizations do better that have a
low rate of absenteeism (Johns and Miraglia 2015). Absenteeism increases the issues like task
allocation. Every single employee is assigned a certain task. If few of them do not turn up to
work, then their tasks will remain undone until the management takes some feasible
alternatives to counter back the issue (Johns and Miraglia 2015). However, this is not always
feasible. Most of such employees are assigned to the different set of works as they are experts
with that set of work. Such situations may bring dreadful consequences like a delayed
deliverance project (Johns and Miraglia 2015). Absenteeism has some other threatening
consequences as it may be the indication that the employee turnover rate will increase
(Hancocket al. 2013). Absenteeism because of health-related issues or some genuine
emergencies is not a worry. However, it is also not necessary that absenteeism is for a genuine
reason. It is indeed important for the human resource management that they have feasible

9JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
measures of absenteeism. This will help the HRM to identify whether the absenteeism is for a
genuine reason (Johns and Miraglia 2015). Absenteeism can be effectively reduced by using the
work-life balance approach (Haaret al. 2014). This will support those employees who have a
genuine reason for absenteeism. On the other side, this may help to identify those who make
false excuses for absenteeism as they will have no option but to work at their convenience
(Haaret al. 2014).
Findings:
The use of different theories like “Jobs Demands-Resources Theory”and the “Theories
of Performance” in literature review section and the relevant implications for human resource
management have helped to understand the ongoing issue at the Australian workplaces. It
looks much feasible that a poor job design and the job insecurity have played major roles in
employee dissatisfaction. The existing job design is less suitable to those who are aiming at
long-term sustenance with a full-time job. This is because many employees are not satisfied
with the basic pay. Both the male and female employees have the same issue with their
employers (Seek.com.au 2018).
Employees both male and female have to work much; however, at the end of the day,
their combined take-home pay is comparatively lesser than it was a few decades back. It is not
a good indication as they might struggle to provide a stable life for their children. Additionally,
their education might also hamper. On top of all, they will feel pressure to repay the mortgage
loans as their combined take-home earning is not very healthy at the moment (ABC News
2018). The situation can be understood from the theoretical perspectives such as by the

10JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
theories of performance and the jobs demands-resources theory. The jobs demands and
resource theory suggest that creating job demands and the job resources is under the control
of the management. They can accordingly influence the job performance of employees;
however, a very significant population of full-timers is not happy with their employers (Bakker
and Demerouti 2014). Again the theories of performance suggest that management can plan,
organize, attract and control the participation of employees. However, many full-timers have
complaints regarding the basic pay. They have doubts whether they will be able to sustain their
jobs (Dugguh and Ayaga 2014).
Part-timers are much favored by the healthcare, tourism and the hospitality industry in
Australia (ABC News 2018). Such industries are believed to have a biased feeling for full-timers.
They believably tend to be biased while hiring employees (ABC News 2018). Giving preference
to part-timers is a good option indeed for a student who needs part-time jobs to manage their
expenses. However, this is equally a sad thing for full-timers. This is because full-timers have to
pay their mortgage loans. They need to sustain their job with good prospects for taking home
pay. The entrance of part-timers has enhanced the competition, which is beneficial for the
employers but not to the full-timers (ABC News 2018).
The incrementing job dissatisfaction in employees, in particular, the full-timers need to
be mitigated with useful implications as stated above in figure 1. Part-timers are a good option
for employers as they will work for fewer wages (ABC News 2018). It does not look feasible that
trend will change but there is a need to support the full-timers as well. They need to provide a
better pay structure, so that, they feel it valued to their needs. Additionally, there is a need to

11JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
facilitate training to motivate the participation of such employees. The jobs demands-resources
theory has indeed stated that resources should be created to influence the participation of
employees (Bakker and Demerouti 2014). Additionally, such employees need to be trained on
their responsibilities for the employers. They need to realize that managers will not be available
all the time to give them feedback. In such situations, they should act matured and take the
responsibility to motivate others (Bakker and Demerouti 2014).
Job insecurity is also a threat, which is getting bigger with the years passes on. However,
this is also true that the human resource management may not be able to do much in this
regard. The economic transition in Australia has been good but significantly below the expected
limit (Opray 2018). Such growth will not be able to resolve the employment issue.
Unemployment rates are expected to continue. Until and unless it is being controlled, the
market will be better for part-timers (Opray 2018). Nevertheless, an increased participation of
part-timers will significantly hamper the participation of full-timers. They will keep on living
with the fear to lose their jobs.
Computerization and technology is another threat, which is expected to automate many
works such as cashier and clerical jobs. The automation is expected to happen in the next 10 to
15 years (ABC News 2018). This is also unstoppable as the needs for the technologically
advanced system have been felt in the different industries for different purposes. Australia is
heading towards a technologically advanced state, which is expected to provide a better
experience for customers (ABC News 2018). However, many employees will lose their jobs.
Additionally, many students are into industrial training for domains, which are expected to

12JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
automate in the nearing future. Consequently, they are expected not to get jobs in the domains
they are getting trained on. This just shows how a poor job design in Australia is hampering the
career of many. They do not even know that their hard works might not fetch them the
expected result (ABC News 2018).
Conclusion:
To conclude, this can be said a poor job design and the job insecurity are few of the
major factors for a large population of Australian employees being dissatisfied with their
employers. The theoretical perspectives presented in the literature review section with the help
of the jobs demands-resources theory and the theories of performance validates the importance
of job resources and demands for a fair performance of an organization. Moreover,
management can control its manpower through facilitating the job resources to employees. Job
resources like feedback, standard pay structure, and the appraisal system are a few such
resources that may influence the work behavior of employees. Automation of few job sectors is
a threat to many. Indeed, part-timers are an emerging threat to the full-timers as they might
face the challenge to manage their mortgage loans.

13JOB DISSATISFACTION IN AUSTRALIAN EMPLOYEES
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