Comprehensive Literature Review on Employee Job Satisfaction Factors

This literature review explores the multifaceted concept of employee job satisfaction, examining its significance in organizational behavior and its influence on employee performance, retention, and overall well-being. The review delves into various definitions and dimensions of job satisfaction, differentiating between intrinsic and extrinsic factors and highlighting the use of measurement tools such as the Minnesota Satisfaction Questionnaire (MSQ) and Job Description Index (JDI). It presents and analyzes prominent theories, including Locke's Job Satisfaction Model, Maslow's Hierarchy of Needs, ERG Theory, Theory X and Theory Y, and Herzberg's Two-Factor Theory, to understand the diverse perspectives on what drives employee satisfaction and dissatisfaction. Furthermore, the review identifies and discusses critical factors influencing job satisfaction, such as health and safety, the working environment, training and development opportunities, and compensation and benefits, emphasizing their impact on employee motivation and organizational success. The literature underscores the importance of job satisfaction as a crucial element for a competent working environment and suggests that addressing these factors can lead to improved employee welfare and productivity.

Chapter 2: Literature Review
2.1 Introduction to Employees Job Satisfaction
The notion of job satisfaction is multi-dimensional and may be applicable to productivity and
organizational commitment. It is observed as an individual or a social dimension, or from
perspectives such as cost and reward, public sector and private sector.
The aim of this study is to determine the most important factors that affect the job satisfaction of
employees. Job satisfaction is an important indicator of how employees feel about their jobs and
a predicator of work behavior such as organizational citizenship, absenteeism and turnover. Job
satisfaction is the key element that emphasizes recognition, income, promotion and the
achievement of other goals for feeling of fulfillment (AZIRI 2011). Job satisfaction is considered
as an important factor for employees’ retention. It is defined as employees’ views regarding
various magnitude of their job (Omidifar 2013). Job satisfaction is explained as a bi-dimensional
concept which provides two types of approaches, intrinsic and extrinsic satisfaction dimensions
(Funmilola et al. 2013).
Job satisfaction is measured by two techniques- Minnesota Satisfaction Questionnaire (MSQ)
and Job Description Index (JDI). The MSQ can be utilized both individually and in group but it
does not consider gender differences. 1977 version of MSQ indicates various aspects of job like
co-workers, achievement, activity, advancement, authority, company policies, compensation,
security, working conditions etc. But JDI is one of the widely used measuring technique which

considers all aspects of work, including gender differences. The scale of job satisfaction is a)
Nature of work; b) Pay; c) Co-workers and d) Promotion (Astrauskaitė et al. 2011).
2.2 Definitions of Employees Job Satisfaction
Job satisfaction is defined as “a pleasurable or positive emotional state resulting from the
appraisal of one’s job or job experiences”. Locke’s Job Satisfaction Model (1976) is a well-
known corner stone theory in the job satisfaction literature. He uses mainly two dimensions for
analyzing the job satisfaction: job components and comfort factors. Job components include
reward, interest, challenge, autonomy, and relation with co-workers, opportunities to use
abilities, creativity, variety, self-esteem, pay, promotion, and supervision. Comfort factors
include working hours, travel time, physical surrounding, characteristics of the enterprise and its
management, fit between employee, work, and expectations in the workplace. It is also defined
by Newstrom (2011) as “a set of favorable or unfavorable feelings and emotions which
employees view with their work”. According to Fogarty, job satisfaction is referred to the extent
to which employees gain enjoyment from their efforts in their workplace. According to Kaplan
(2008), emotional aspect refers one’s feelings regarding the job, cognitive aspect refers one’s
thoughts and beliefs regarding the job, and, behavioral component refers to people's actions with
respect to the job.
Theories of job satisfaction are divided into two categories: content theories and process theories.
Content theories identify factors leading to job satisfaction or dissatisfaction and suggest that job
satisfaction come true when employees’ need for growth and self-actualization are met by their job.
Process theories attempt to describe the interaction between variables for job satisfaction and explain
job satisfaction by looking at how well the job meets one’s expectations and values.
Maslow’s Hierarchy of Human Needs
A.H. Maslow developed the hierarchy of human needs model during 1940-50’s. Maslow’s
hierarchy of needs is leading one of the fundamental motivation theories. According to Maslow’s

theory, human needs divided into five categories. These categories contain all human activities,
which are “Physiological or Basic Needs”, “Security or Safety Needs”, “Belonging or Affection
Needs”, “Esteem or Ego Needs” and “Self-Actualization Needs”. The assumption of this model
is that, only feeling satisfied, to a certain level, about needs of a lower level creates a desire to
implement a need on a higher level . Each employee of an organization would prefer to move to
the next level after achieving the needs in the low level, then, the old need loses its importance
since it is satisfied.
The ERG Theory
Clayton Alderfer (1969) proposed Existence-Relatedness-Growth Theory. The ERG theory is an
extension of Maslow's hierarchy of human needs theory. Alderfer stated that needs could be
classified into three categories, rather than five and these are; existence needs, psychological and
safety needs; and relatedness needs. Existence needs are similar to Maslow's physiological and
safety need categories. Relatedness needs involve interpersonal relationships, which are similar
to Maslow's belongingness and esteem needs. Growth needs are related with the attainment of
one's potential, which are associated with Maslow's esteem and self-actualization needs.
Theory X and Theory Y
Douglas McGregor introduced Theory X and Theory Y, which contains two different assumption
sets corresponding to relationships between managers and employees (De Cenzo & Robbins,
1994). The main assumption of Theory X is that employees dislike work and have tendency to
avoid it. This kind of people must be continuously controlled and threatened with punishment in
order to succeed the desired aims. On the other hand, Theory Y is assumed that employees could
have self-direction or self-control if he/she is committed to the jobs. According to McGregor,
Theory Y is seemed to be more valid and greater job involvement, autonomy and responsibility;
given employees, increase employee motivation.
Herzberg-Two Factor Theory

According to Herzberg’s two-factor theory of motivation, the factors are divided into two
aspects, “motivators” and “hygiene”. Herzberg calls these factors as the “motivators” which give
the intrinsic satisfaction, and represent the need for self-actualization and grow. The motivators
are based on personal perceptions and internal feelings; including achievement, experience, the
work itself, responsibility, changing status through promotion and opportunity for growth and
advancement. On the other hand, “hygiene” factors, which lead to extrinsic satisfaction and
cause dissatisfaction, include; supervision, inter-personal relationships, recognition,
management, company policy and administration, promotion, salaries and benefits, status, job
security and physical working conditions. According to Herzberg’s two-factor theory, the
primary determinants of employee satisfaction are intrinsic factors, because employees are
motivated to obtain more of them. If the motivator factors are not provided by the institution,
individuals will be dissatisfied, as, dissatisfaction is caused by hygiene factors. Absence of
hygiene factors contribute to job dissatisfaction but their presence does not contribute to
satisfaction. In other words, when the hygiene factors are not met, dissatisfaction occurs but they
do not motivate employees.
2.3 Importance of Employees Job Satisfaction
Job satisfaction is meant through different things to different people as employees are affected by
various different factors including which includes individual characteristics, needs, feelings and
expectancies. However it varies from organization to organization, as job satisfaction has an
influence factors like working environment, job characteristic, benefits and working environment
(index). It inspires sense of belongingness and sense of participation leading to the overall
increase in the productivity of the organization. Moreover it facilitates in determining the
training and development needs of the both, employees and the organization.
2.4 General Factors of Employees Job Satisfaction
Locke (1976) defined the essential aspects of job satisfaction as the job itself, payment,
promotion, working conditions, benefits of the work, fellow workers, personal values, employee

relationship. In 1962, Vroom mentioned that the job satisfaction has seven aspects and they are
the compensation, the supervisor, the colleagues, the working environment, the job content, the
promotion, and the organization itself. As a recent study, Şirin (2009) states the factors affecting
job satisfaction as follows; feeling of success, relations with the management and employees, job
safety, responsibility, recognition, high salary, promotion opportunity, clarity of roles,
participation in decisions, freedom, good coordinated work, lack of continuity, relocation,
performance, life satisfaction, and perceived work stress.
Some other factors which impact on job satisfaction are salary, benefits, the nature of work,
pressure, career development, education and training, job nature, management style, safety, job
security, appreciation, training, workload, pay, promotional opportunities, organizational support
of career, rewards, meeting, the overall working environment, department environment, physical
conditions, equity, task variety, intergroup conflict, perceived organizational support,
organizational commitment, delegation of power, communication, organizational integration,
role ambiguity, communication with management, style of management, communication
between colleagues and other groups, teamwork and cooperation, personal development, content
of work, variety of task, responsibility, working hours, timings, recognition of superiors, job
characteristics, job clarity, role conflict, advancement opportunities, company culture, safety at
work, work content, good relationships with coworkers, technology, atmosphere at work,
workload, feelings of accomplishment, performance, advancement opportunities, work
exhaustion, turnover, absenteeism, performance evaluation systems, compensation, company’s
image and corporate culture.
2.5 Critical Factors of Employees Job Satisfaction
Job satisfaction has been studied both as an independent and a dependent variable. As an
independent variable, job satisfaction explains outcomes such as performance, absenteeism, and
turnover. For instance, job satisfaction shows the ways to decrease turnover. Job satisfaction as a
dependent variable is affected by a number of rewards, including pay, benefits and employee
recognition.

The critical factors of job satisfaction are health and safety; working environment; training and
development and salary and fringe benefits.
- Health and Safety:
Job related safety and health is aimed at the promotion and maintenance of the highest degree of
physical, mental and social well-being of workers in all professions. This issue ranges from
prevention among workers from leaving work due to health problems from protection of workers
in their employment from risks resulting from factors adverse to their health; placing and
maintenance of the worker in an occupational environment adapted to his or her physiological
and psychological capabilities and adaption of work to the person and of each person to their job.
Workplace safety and health administration reveals that much of the subject has been covered in
different parts of the world. The areas covered tends to focus predominantly on disease
prevention, psychosocial factors at the workplace, safety apprehensions at the workplace,
workplace politics, workplace spirituality, epileptic medication at the workplaces, safety climate
at the workplace, safe management, exposures to chemicals and perceptions of risks.
- Training and Development:
Forgacs (2009) defines training is as a planned activity that aspires to improve employees
performance by helping them realize an obligatory level of understanding or skill through the
impartation of information. Armstrong (2000) also defines training as an organized procedure to
modify employee proficiencies so that they can achieve its objectives. The modern approach to
training is that globally, organizations have comprehended the importance of training. Training is
now observed as a commitment and retention tool than a cost (Torrington et al. 2004).
- Working environment:
The concept of work environment is an actual comprehensive one including the physical,
psychological and social aspects that mark up the working condition. Work environment
performs to have both positive and negative consequences on the psychological and
welfare of employees. Working conditions consists of the physical and social conditions
at the work. People want to work in a comfortable, safe environment, a clean and an

equipped environment (Sun, 2002) and work in good conditions such as appropriate
temperature, lighting and noise (Green, 2000).
- Salary and fringe benefits:
The judgment of satisfaction related to job can be made with the help of wage payment
system. Different type of organizations adopts different types of payment system of
wages. The workers of low paid and high paid with in developing countries to analyze
job satisfaction level and also inform different determinants of job satisfaction among the
workers that exist in low and higher wages in across the world. Job satisfaction level is
less for employees, who obtain less amount of pay whereas higher amount receiving
employees have high level of satisfaction.
2.6 Summary of the chapter
Job satisfaction plays a crucial role for competent working environment. However the
influencing factors of job satisfaction are important for improving the welfare of a large part of
our society.
In this study the critical factors like health and safety have its own role to protect employees
from any types of hazard. Moreover, the working environment and training aspect are able to
increase employees’ satisfaction level. Lastly, the proper compensation plan can retain
employees to have good performance level.
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