1 CHAPTER ONE – INTRODUCTION 1.1. Introduction to the topic The topic of the study is The Most Effective Factor out of Psychological, Physical, and Environmental Factors to Enhance Job Satisfaction of Employees. The job satisfaction of an employee is very important to achieve the objectives of each position hold by the employees. When the employee is satisfied with the job he/she is involved, it surely enhance the productivity of the employee, which eventually contribute to increase the overall productivity of the section/department of the employee works in and then ultimately contribute to achieve the goal of the company. There are many factors contribute to increase the job satisfaction. Among them, the psychological, physical and environmental can be considered as major factors. It is a known factor that these factors individually and collectively contribute for job satisfaction. The researcher’s personal opinions on how these factors contribute to job satisfaction are given in the conceptual framework under the methodology part of this study report. However, the researcher intended to identify whether the hypotheses developed on this topic were true or false and thereby to suggest remedial actions for increasing job satisfactions of employees of companies. 1.2. Statement of the problem The recent report of the performance evaluation of Hirdaramani industries Private Limited Company – Kahatuduwa showed that the employees’ motivation level is not up to the expected level of the company. Therefore, the researcher wished to formulate the following problem statement; “What was the most effective factor out of physical, psychological and environmental factors to enhance Job satisfaction of employees?” 1.3. Practical relevance of the study Since Sri Lanka is a labor oriented country, there are many industries that are contributing to the economy of the country. Among those industries, apparel industry is one of the most important industries, which has generated many jobs for the country’s work force. And at the same time, apparel industry is the one, which brings down much of foreign currencies into the economy. Therefore, studying the effectiveness of the performance of the labor force employed in the apparel industry was considered as vital important.
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CHAPTER ONE – INTRODUCTION
1.1. Introduction to the topic
The topic of the study is The Most Effective Factor out of Psychological, Physical, and
Environmental Factors to Enhance Job Satisfaction of Employees. The job satisfaction of an
employee is very important to achieve the objectives of each position hold by the employees.
When the employee is satisfied with the job he/she is involved, it surely enhance the
productivity of the employee, which eventually contribute to increase the overall productivity
of the section/department of the employee works in and then ultimately contribute to achieve
the goal of the company. There are many factors contribute to increase the job satisfaction.
Among them, the psychological, physical and environmental can be considered as major
factors. It is a known factor that these factors individually and collectively contribute for job
satisfaction. The researcher’s personal opinions on how these factors contribute to job
satisfaction are given in the conceptual framework under the methodology part of this study
report. However, the researcher intended to identify whether the hypotheses developed on
this topic were true or false and thereby to suggest remedial actions for increasing job
satisfactions of employees of companies.
1.2. Statement of the problem
The recent report of the performance evaluation of Hirdaramani industries Private Limited
Company – Kahatuduwa showed that the employees’ motivation level is not up to the
expected level of the company. Therefore, the researcher wished to formulate the following
problem statement;
“What was the most effective factor out of physical, psychological and environmental factors
to enhance Job satisfaction of employees?”
1.3. Practical relevance of the study
Since Sri Lanka is a labor oriented country, there are many industries that are contributing to
the economy of the country. Among those industries, apparel industry is one of the most
important industries, which has generated many jobs for the country’s work force. And at the
same time, apparel industry is the one, which brings down much of foreign currencies into
the economy. Therefore, studying the effectiveness of the performance of the labor force
employed in the apparel industry was considered as vital important.
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Accordingly, this study was planned to be carried out in association with Hirdaramani
industries Private Limited company –Kahatuduwa. The researcher is currently following the
Professional Qualification of Human Resource Management (PQHRM) at IPM. Accordingly,
it is a requirement of the diploma that the student should submit a research report based on a
research carried out utilizing scientific method on a selected subject area. In addition, the
researcher is also following an eight-month internship programme in the same company to
fulfill a course requirement of the Fashion Designing and Product Development Degree
conducted by the Department of Textile and Clothing Technology in the Faculty of
Engineering at University of Moratuwa. Therefore, the researcher thought that through this
study she could achieve two objectives viz; (a) obtain necessary data to prepare the study
report, which is required by the IPM and (b) to help the management of Hirdaramani by
presenting the outcome of the study to improve the job satisfaction of the employees to
achieve company goals.
Further, it is learned that Hirdaramani Industries Private Limited Company –Kahatuduwa had
not undertaken any research on the selected subject area for a long time. Since the company
spends considerable amount of funds on employees, it is really important for the organization
to reveal the employees perception of the job satisfaction. At the same time, the study will
help to test the hypotheses too, which will be beneficial to the company.
Therefore, it was the opinion of the researcher that this study is very much relevant both to
her study requirement of the IPM and also to help the Hirdaramani to improve its
performance.
1.4 Objectives of the study
The objectives of the study were as follows;
1.4.1 General objective:
To identify the most effective factor out of three factors: physical, psychological and
environmental, which impact on job satisfaction of employees.
1.4.2 Specific objectives:
Study the effectiveness of each of the three factors namely physical,
psychological and environmental in satisfying employees’ job.
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To test selected hypothesis.
Prepare a quality project report to be submitted to the IPM.
To make a presentation on the outcome of study to the management of Hirdaramani in
order to assist them to enhance the performance of employees
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CHAPTER TWO – LITERATURE REVIEW
2.1 Job Satisfaction
The “job satisfaction of employees” is always an interested subject to study on people who
are working and people who are associated with organizations. It is seen that the various kind
of variables and dimensions have been tested in order to measure the level of satisfaction of
employees throughout their work life and there is a lot more to be covered on that area.
Therefore, it is important to conduct this kind of study, which is aimed at figuring out of
psychological, physical and environmental factors to identify, which factor has more impact
on the job satisfaction of employees.
Job satisfaction is the most widely investigated job attitude, as well as one of the most
extensively researched subjects in Industrial/Organizational Psychology subject area (Judge
& Church, 2000). It is clearly seen that majority of motivation theories such as Hertzberg’s
Two-Factor (Motivator-Hygiene) Theory -1968, Maslow’s (1943) Hierarchy of Needs,
Adam’s (1965) Equity Theory, Hackman and Oldham’s (1976) , have explained the major
role of job satisfaction and its influence.
It is said that as a result of this expansive research, job satisfaction has been linked to
productivity, motivation, absenteeism/tardiness, accidents, mental/physical health, and
general life satisfaction (Landy, 1978). Psychological well-being is a subjective concept that
has a closer connection with the quality of the work life.
Many researches have tried to understand mainly the relationship between the job satisfaction
and the productivity as well as the factors determine for job satisfaction. For the purpose of
the study, it was considered as an important factor to define what job satisfaction was?
Therefore, the researcher tried to collate the definitions already made by various researchers
on the subject concerned.
According to Collins English Dictionary, job satisfaction is the extent to which a person's
hopes, desires, and expectations about the employment he or she is engaged in are fulfilled. It
seems that this definition has been made from the perspective of the employee.
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The Wikipedia describes that Job satisfaction or employee satisfaction has been defined in
many different ways. It further mentions that some believe it is simply how content an
individual is with his or her job, in other words, whether or not they like the job or individual
aspects or facets of jobs, such as nature of work or supervision. Others believe it is not so
simplistic as this definition suggests and instead that multidimensional psychological
responses to one's job are involved. Researchers have also noted that job satisfaction
measures vary in the extent to which they measure feelings about the job (affective job
satisfaction) or cognitions about the job (cognitive job satisfaction).
Agho argues that overall, it was found that the degree to which employees like their job is
influenced by a combination of characteristics of the environment (opportunity), the job
(reutilization and distributive justice), and personality variables (positive affectivity and work
motivation).
Looking at the communication perspective, Townley ( 1994) argues that the employee could
be motivated through proper two way communications. She describes that although many
factors contributed to employee motivation, the Monday Morning Assembly of employees
and senior management, daily section meetings with foremen. Quality circles and briefing
groups have, in particular, been identified as prominent features in satisfying the job of the
employees.
Apart from the definitions, there are many theories and methods have been developed to
define and understand the employee job satisfaction. Among them following are the major
ones;
2.2 Theories of job satisfaction
2.2.1 Affect theory
This theory was introduced by Locke in 1976 and is arguably the most famous job
satisfaction model. The main premise of this theory is that satisfaction is determined by a
discrepancy between what one wants in a job and what one has in a job. Further, the theory
states that how much one values a given facet of work (e.g. the degree of autonomy in a
position) moderates how satisfied/dissatisfied one becomes when expectations are/aren’t met.
When a person values a particular facet of a job, his satisfaction is more greatly impacted
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both positively (when expectations are met) and negatively (when expectations are not met),
compared to one who doesn’t value that facet.
2.2.2 Equity Theory
Equity Theory shows how a person views fairness in regard to social relationships such as
with an employer. A person identifies the amount of input (things gained) from a relationship
compared to the output (things given) to produce an input/output ratio. They then compare
this ratio to the ratio of other people in deciding whether or not they have an equitable
relationship. Equity Theory suggests that if an individual thinks there is an inequality
between two social groups or individuals, the person is likely to be distressed because the
ratio between the input and the output are not equal.
2.2.3 Two-factor theory (motivator-hygiene theory)
Two-factor theory (also known as motivator-hygiene theory) was introduced by Fredrick
Herzberg and it attempts to explain satisfaction and motivation in the workplace. This theory
states that satisfaction and dissatisfaction are driven by different factors – motivation and
hygiene factors, respectively. An employee’s motivation to work is continually related to job
satisfaction of a subordinate. Motivating factors are those aspects of the job that make people
want to perform, and provide people with satisfaction, for example achievement in work,
recognition, promotion opportunities. These motivating factors are considered to be intrinsic
to the job, or the work carried out. Hygiene factors include aspects of the working
environment such as pay, company policies, supervisory practices, and other working
conditions.
Table 2.1 - List of common factors identified by dissatisfied workers and common
factors identified by satisfied workers
Common factors identified by dissatisfied
workers
Common factors identified by satisfied
workers
Working conditions
Achievement
Supervisions Responsibility
Salary Recognition
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Job security Advancement
Status Growth
Source : Madura, 2006
Madura, (2006) elaborated that Herzberg’s study suggested that hygiene factors such as
working conditions and salary must be sufficient in order to prevent employees from being
dissatisfied towards their job. In other words, Mukherjee, (2009) and Patt, (2005) has
elaborated that hygiene factors are important as to prevent job dissatisfaction among the
employees. However, these factors might not necessarily become the contributing factors
towards job satisfaction. This means that when the workers have adequate work conditions
and ample salary, their feelings of dissatisfaction towards their job can be prevented. But,
Madura, 2006 definite that these factors will increase the level of job satisfaction among the
employees Fallon and Zgodzinski (2008) added that the hygiene factors might not have
significant impact in improving performance but if these factors are not fulfilled, the
performance of the employees will deteriorate. On the other hand, motivation factors, also
known as job content factor (Mukherjee, 2009) such as recognition and advancement can
easily contribute to a higher level of job satisfaction. According to Pattanayak (2005),
motivation factors are able to encourage the employees to the extent that they are able to
demonstrate superior effort and superior performance. Therefore, motivation factors are also
known as being able to provide true motivation. Sapru (2006) added that motivation factors
stem from human beings’ need to realize their true potential. Further it says that the absence
of these factors will not cause dissatisfaction though but positive satisfaction will not exist.
2.2.4 Dispositional approach
The dispositional approach suggests that individuals vary in their tendency to be satisfied
with their jobs, in other words, job satisfaction is to some extent an individual trait. This
approach became a notable explanation of job satisfaction in light of evidence that job
satisfaction tends to be stable over time and across careers and jobs. Research also indicates
that identical twins raised apart have similar levels of job satisfaction.
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2.2.5 Need hierarchy theory
Maslow’s hierarchy of needs (often represented as a pyramid with five levels of needs) is a
motivational theory in psychology that argues that while people aim to meet basic needs, they
seek to meet successively higher needs in the tem of a pyramid. Further, the theory explains
that, human actions are directed towards goal attainment. At any given behavior could satisfy
several functions at the same time; for an example, going to a bar could satisfy one’s needs
for self-esteem and for social interaction.
Figure 2.1 – Maslow hierarchy of needs
Source - Maslow's Hierarchy of Needs: 2014
Physiological needs - These are important needs for sustaining the human life. Food, water,
warmth, shelter, sleep, medicine and education are the basic physiological needs which fall in
the primary list of need satisfaction. Maslow was of an opinion that until these needs were
satisfied to a degree to maintain life, no other motivating factors can work.
Security or Safety needs - These are the needs to be free of physical danger and of the fear of
losing a job, property, food or shelter. It also includes protection against any emotional harm.
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Social needs - Since people are social beings, they need to belong and be accepted by others.
People try to satisfy their need for affection, acceptance and friendship.
Esteem needs - According to Maslow, once people begin to satisfy their need to belong, they
tend to want to be held in esteem both by themselves and by others. This kind of
need produces such satisfaction as power, prestige status and self-confidence. It includes
both internal esteem factors like self-respect, autonomy and achievements and external
esteem factors such as states, recognition and attention.
Need for self-actualization - Maslow regards this as the highest need in his hierarchy. It is
the drive to become what one is capable of becoming; it includes growth, achieving
one’s potential and self- fulfillment. It is to maximize one’s potential and to
accomplish something.
As each of these needs is substantially satisfied, the next need becomes dominant. From the
standpoint of motivation, the theory would say that although no need is ever fully gratified,
substantially satisfied need no longer motivates. So if someone wants to motivate other one,
need
to understand what level of the hierarchy that person is on and focus on satisfying those needs
or needs above that level. Maslow‟ s need theory has received wide recognition, particularly
among practicing managers. This can be attributed to the theory‟ s intuitive logic and ease of
understanding.
2.3 Factors affecting job satisfaction
There are three main factors influencing on the job satisfaction namely Psychological,
Physical and Environmental. Each factor is described as follows;
2.3.1 Psychological factors
2.3.1.1 Perception of fair pay
Pay satisfaction is of primary concern to both employers and employees. For employees, pay
is of obvious importance in terms of satisfying their economic needs. It is important that they
are satisfied with their overall pay as this may impact their attitudes and behaviors.
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Whatever your job, for you to be satisfied the pay should be fair. The bigger the difference
between what you think you should earn and what you do earn, the less satisfied you’ll be.
The important point here is it’s all about perception. If you perceive that other people doing a
similar job get paid about the same as you then you’re more likely to be satisfied with your
job than if you think they’re getting more than you.
Money rewards are multi complex and multisided job satisfaction factor. Money not only
gives people an opportunity to satisfy their primary needs, but also fosters satisfaction of
higher levels needs. Employees more often perceive their salary’s levels as a reflection of that
how management estimates their contribution to the company’s activity. If employees have
an opportunity to choose themselves to some extend independently indulgences from the
whole package rendered by the company then they receive greater satisfaction from
indulgences receivables and the job in the whole.
2.3.1.2 Recognition
Harrison ( 2013) has described that employee recognition is the timely, informal or formal
acknowledgement of a person’s or team’s behavior, effort or business result that supports the
organization’s goals and values, and which has clearly been beyond normal expectations. Yes
of course that to be really effective in the job, employees need to understand the psychology
of praising others for their good work, to apply the principles of employee recognition
themselves and to encourage others to initiate it in their working relationships. And it could
be seen that appreciation is a fundamental human need. Employees respond to appreciation
expressed through recognition of their good work because it confirms their work is valued.
When employees and their work are valued, their satisfaction and productivity rises, and they
are motivated to maintain or improve their good work.
Harrison (2013) further says, praise and recognition are essential to an outstanding
workplace. People want to be respected and valued for their contribution. Everyone feels the
need to be recognized as an individual or member of a group and to feel a sense of
achievement for work well done or even for a valiant effort. Everyone wants a ‘pat on the
back’ to make them feel good.
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If you don’t recognize the accomplishment of your team, you might as well tell your staff that
you don’t care about the work they do. And if you only communicate negative outcomes but
don’t accomplishment enough, you might discourage your team from taking risks.
Employees should definitely focus on the challenges that the team is facing, but they should
also spend some time reflecting on how much has already been achieved. If the team feels
that their achievements matter, they will feel motivated to continue pursuing the company’s
goals.
2.3.1.3 Relationship with supervisors
Effective managers know their employees need recognition and praise for their efforts and
accomplishments. Employees also need to know their supervisor's door is always open for
them to discuss any concerns they have that are affecting their ability to do their jobs
effectively and impeding their satisfaction at the office.
Employees want supervisors who have a bond with them and who trust them, understand
them and show fairness. If the supervisor is abusive the worker is left with no choice but to
be dissatisfied with their job. Supervisors play such an important role in jobs that it would not
be wrong to say that employees leave their bosses, not their jobs.
Cheesman (2013) has said that, Employees list having a positive relationship with their
manager a key to high job satisfaction in almost every job satisfaction survey. Building
supportive and understanding relationships with management keeps employees more
engaged. For managers, good relationships with employees make it easier to discuss added
responsibilities or performance issues when necessary. Many supervisors dread having to
have these conversations, and being unsure how to relate to the employee adds to the stress.
Further it says that, The good news is that these relationships can be built intentionally, and
that they rely primarily on the actions of the managers who already work within the
organization. Training managers to have quality conversations and to be open and available
for their employees is the key to creating these relationships.