Dissertation on Job Satisfaction Impact on Tesco's Performance

This dissertation examines the impact of job satisfaction on organizational performance, using Tesco as a case study. It identifies issues related to job satisfaction among Tesco employees and how this affects organizational performance, including employee commitment, engagement, and turnover rates. The research aims to understand the concept of job satisfaction and organizational performance, identify key factors influencing both within Tesco, assess the association between them, and provide recommendations for improvement. The study employs a positivism philosophy, deductive approach, and descriptive research strategy, using quantitative data collected from 200 Tesco employees via a random sampling technique. Data analysis includes descriptive and inferential statistics, revealing insights into the influence of factors like working environment and co-worker relationships on job satisfaction and its subsequent impact on Tesco's overall performance. The findings support the hypothesis that job satisfaction significantly affects organizational performance, leading to recommendations for enhancing employee satisfaction to improve productivity and service quality at Tesco. Desklib provides access to this paper and other resources for students.

Running head: DISSERTATION
An analysis of Impact of Job Satisfaction on Organizational Performance: A Case Study of
Tesco
Name of the student:
Name of the University:
Author’s Note:

1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

2DISSERTATION
Abstract
Issue in terms of job satisfaction for the employees of Tesco has been identified that is affecting
the performance of the organization. Lack of satisfied workforce in Tesco has lowered the
organizational performance, as the employees are having minimal commitment and engagement
towards their job roles and responsibilities. Higher level of casualness has been noticed among
the existing workforce of Tesco that has hampered the performance of the organization thereby,
affecting the productivity and sales of the company. The research will also help to identify the
main factors of lack of job satisfaction for the current employees Tesco out of the different
factors thereby, evaluating the potential reasons why the company is lacking in achieving the job
satisfaction factors (Saeed et al. 2014). After identifying the gaps, the research will help in
finding methods of achieving job satisfaction for the employees of Tesco and improving the
organizational performance by improved service quality and increased productivity. Thus, the
research is significant, as this will help in analyzing the impact of job satisfaction on
organizational performance for Tesco.
The researcher has applied positivism philosophy, deductive approach and descriptive research
strategy. Additionally, the researcher has used primary quantitative data collection technique for
collecting data for the survey research strategy. The researcher has selected 200 employees of
Tesco by random sampling technique and analyzed the collected data by conducting both
descriptive analysis and inferential analysis.
The results mentioned above highlights that the female employees of Tesco agree that employee
job satisfaction highly influences the performance of the employees. The correlation value
between job satisfaction and relationship with co-workers is 0.749 and perceived organizational

3DISSERTATION
support and job satisfaction is 0.721 respectively thereby, signifying strong association between
the variables. Thus, both the factors effect employee job satisfaction. The P value of hypothesis 2
is 0.000 highlighting that the P value is less than 0.05 thereby, rejecting the null hypothesis.
Thus, it can be job satisfaction has no impact on the organizational performance.

4DISSERTATION
Table of Contents
Chapter 1: Introduction..................................................................................................................10
1.0 Overview.........................................................................................................................10
1.1 Problem statement...............................................................................................................11
1.2 Research aim........................................................................................................................12
1.3 Research objectives.............................................................................................................12
1.4 Research questions...............................................................................................................12
1.5 Research hypothesis.............................................................................................................12
1.6 Research rationale................................................................................................................14
1.7 Structure of the research......................................................................................................15
1.8 Summary..............................................................................................................................16
Chapter 2: Literature review..........................................................................................................17
2.0 Overview..............................................................................................................................17
2.1 Conceptual framework.........................................................................................................17
2.2 Concept of job satisfaction..................................................................................................18
2.3 Factors affecting job satisfaction.........................................................................................18
2.3.1 Working environment...................................................................................................18
2.3.2 Job security...................................................................................................................19
2.3.3 Promotion and pay........................................................................................................20

5DISSERTATION
2.3.4 Relationship with co-workers.......................................................................................20
2.3.5 Flexibility......................................................................................................................21
2.3.6 Perceived organizational support..................................................................................21
2.4 Theory of job satisfaction....................................................................................................22
2.4.1 Hertzberg’s two-factor theory of job satisfaction.........................................................22
2.5 Challenges faced in ensuring job satisfaction......................................................................23
2.6 Concept of organizational performance...............................................................................24
2.7 Factors affecting organizational performance.....................................................................24
2.7.1 Employee satisfaction...................................................................................................24
2.7.2 Employee engagement..................................................................................................25
2.7.3 Risk management capabilities......................................................................................25
2.7.4 Involvement of the stakeholders...................................................................................25
2.7.5 Organizational values and cultures...............................................................................25
2.7.6 Creativity and innovations............................................................................................26
2.8 Impact of job satisfaction on organizational performance..................................................26
2.9 Summary..............................................................................................................................27
Chapter 3: Research methodology.................................................................................................28
3.0 Introduction..........................................................................................................................28
3.1 Research outline...................................................................................................................28
3.2 Research philosophy............................................................................................................28

6DISSERTATION
3.2.1 Explaining the selection of positivism philosophy.......................................................29
3.3 Research approach...............................................................................................................29
3.3.1 Explaining the selection of deductive approach...........................................................29
3.4 Research design...................................................................................................................29
3.4.1 Explaining the selection of descriptive design.............................................................29
3.5 Research strategy.................................................................................................................30
3.5.1 Explaining the selection of survey strategy..................................................................30
3.6 Sampling technique and sampling technique......................................................................30
3.6.1 Explaining the selection of random probability sampling technique...........................30
3.7 Data collection technique....................................................................................................31
3.7.1 Explaining the selection of quantitative data collection technique..............................31
3.8 Data analysis technique.......................................................................................................31
3.8.1 Explaining the selection of quantitative data analysis technique.................................31
3.9 Ethical considerations..........................................................................................................31
3.10 Accessibility issues............................................................................................................32
3.11 Summary............................................................................................................................32
Chapter 4: Data Analysis...............................................................................................................33
4.0 Introduction..........................................................................................................................33
4.1 Descriptive analysis.............................................................................................................33
4.1.1 Demographic analysis...................................................................................................33

7DISSERTATION
4.2 Inferential analysis...............................................................................................................51
4.2.1 Correlation analysis......................................................................................................51
4.2.2 Hypothesis 1.................................................................................................................52
4.2.3 Hypothesis 2.................................................................................................................54
4.3 Summary..............................................................................................................................55
Chapter 5: Conclusion and recommendations...............................................................................57
5.0 Conclusion...........................................................................................................................57
5.1 Linking with objectives.......................................................................................................58
5.2 Recommendations................................................................................................................59
5.3 Future scope of the study.....................................................................................................60
References......................................................................................................................................61
Appendices....................................................................................................................................67
Appendix 1.................................................................................................................................67
Survey questionnaire.............................................................................................................67
Appendix 2.................................................................................................................................73
Factors influencing job satisfaction.......................................................................................73
Appendix 3.................................................................................................................................74
Regression statistics output....................................................................................................74
Appendix 4.................................................................................................................................75
Regression statistics output....................................................................................................75

8DISSERTATION
List of Figures
Figure 1: Conceptual framework...................................................................................................18
Figure 2: Demographic results.......................................................................................................34
Figure 3: Working environment....................................................................................................35
Figure 4: Job security.....................................................................................................................37
Figure 5: Pay and promotion.........................................................................................................39
Figure 6: Relationship with co-workers........................................................................................41
Figure 7: Flexibility.......................................................................................................................43
Figure 8: Perceived organizational support...................................................................................45
Figure 9: Factors affecting organizational performance................................................................47
Figure 10: Job satisfaction on organizational performance...........................................................49

9DISSERTATION
List of Tables
Table 1: Hertzberg’s two-factor theory of job satisfaction............................................................22
Table 2: Correlation values............................................................................................................52
Table 3: Testing null hypotheses impact of factors on job satisfaction.........................................54
Table 4: Testing null hypothesis on impact of job satisfaction on organizational performance...55

10DISSERTATION
Chapter 1: Introduction
1.0 Overview
The job satisfaction of the employees plays a significant role in improving the performance
of the business organizations. As mentioned by Hulsheger et al. (2013), it is important for the
business organization to be aware of retaining the employees by ensuring job satisfaction and
establishing a motivated workforce. This provides an opportunity for the business organization to
achieve extraordinary results by the particular business organization. Achieving the
organizational targets and goals is largely influenced by the level of employee job satisfaction, as
satisfied employees contributes towards improved organizational performance thereby,
facilitating organizational growth, productivity and quality offered to the customers and the
market sector. One of the core responsibilities of the human resource management of the
business organization is to identity and determines what the employees feel and thinks as well as
recognize their needs and demands while working for the company (Vermeeren, Kuipers and
Steijn 2014).
Identification provides an opportunity for the business organizations to improve employee
job satisfaction thereby, improving productivity as well as strengthening employee commitment.
Therefore, it can be said that improving the job satisfaction of the employees allow the business
organizations to improve the organizational performance. The satisfied employees are the most
productive employees. As a result, the business organizations have to ensure job satisfaction, as
it directly affects the organizational performance. Improved organizational performance also
provides an opportunity for the business organization to gain competitive advantage and stand
out in the market and attracting the customers (Ko, Hur and Smith-Walter 2013).

11DISSERTATION
Tesco is a Bristish multinational grocery and general merchandise company with its
headquartered in Welwyn Garden City, England, the United Kingdom. According to the profits
generated by Tesco, it is considered as the third-largest grocery retail. Tesco has retail outlets
over 12 countries in overall Europe and Asia. Tesco has an estimated 4,76,000 employees
throughout all the retail outlets in the world. Recently, the job satisfaction for the employees of
Tesco has been an issue thereby, hampering the performance of the employees. Thus, the
research is commenced in order to analyze the impact of job satisfaction on organizational
performance for Tesco (Tesco.com, 2018).
1.1 Problem statement
Issue in terms of job satisfaction for the employees of Tesco has been identified that is
affecting the performance of the organization. Lack of satisfied workforce in Tesco has lowered
the organizational performance, as the employees are having minimal commitment and
engagement towards their job roles and responsibilities. Higher level of casualness has been
noticed among the existing workforce of Tesco that has hampered the performance of the
organization thereby, affecting the productivity and sales of the company (Wong and Laschinger
2013). In addition to, the rate of employee turnover has increased due to inadequate employee
job satisfaction. Due to higher employee turnover rate, Tesco is losing experienced and qualified
employees that are also hampering the organizational performance.
Inadequate job satisfaction among the employees and compromised organizational
performance is also threatening the current position of Tesco in the market (Cullen et al. 2014).
Poor organizational performance is resulting is lack of competitive advantage for Tesco, as the
company is unable to ensure higher productivity thereby, affecting the revenue and sales.