Employee Satisfaction And Performance In Organizations: Impact Of Technological Advancements And Human Resource Management

Importance of Employee Satisfaction and Performance in Large Scale Business Organizations

Discuss about The relationship between job satisfaction.

In recent times, with the development of information technology, most of the large scale business organizations are emphasizing more on the development of human resources. The main objective behind this is to develop a small group of highly skilled professionals who will effectively utilize technology in order to enhance the business of the organizations. However, some organizations fail to notice the importance of employee satisfaction on the resulting employee performance and hence, do not address problems related to employee behavior. While working in an organization, the employees expect to be satisfied by several personal and job related benefits that automatically enhance their performances. On the contrary, some employees misuse the benefits and take them for granted. These employees destroy professionalism inside office premises and also negatively affect the progress of work of the organization. Hence, most business organizations are confused about the amount of employees to be provided so that they are not misused but the employees are satisfied and their performances are enhanced. On the other hand, some organizational leaders believe employee satisfaction is not related to performance at all. The performance only comes from an employee’s skill set, ability to take challenging duties and his willingness to proceed with the duties assigned to him. They also believe that employee satisfaction only extends the time for which the employee is willing to work for the organization.

In this report, a research proposal has been presented for the detailed research of employee satisfaction and employee performance using data from some well known journals and secondary data collected from a number of reliable sources online. 

With the advancement of technology and the fast changes in the requirements in every business sector, the concept of human resource management is also fast changing. Before the advent of the digital age, human resource was considered to be the most important factor behind the running of an organization and the attributes that were required of the employees included loyalty and long life cycle working in the organization in addition to required technical and nontechnical skills. However, as more and more technologies are coming into existence, human resource is not the sole important factor for driving an organization. Rather, human resource is now mostly considered in most of the industries as the driving force behind the technologies that help the organization to move forward in the market.With time and change in technology, the human resource requirements are also changing in terms of global nature of work as well as diversity. Most organizations are interested to reap maximum benefits from the use of human resources to gain maximum competitive advantage in the market without spending much time on the development of the human resources. Hence, loyalty is no longer the required attribute, rather the chosen attribute is skill – the more skill one employee has, the more he is utilized and his lifetime inside the organization also increases accordingly. Instead of appointing just large number of employees for a job, most of the organizations now have specific employee group structures and they only recruit new and skilled employees only when certain posts are vacant. Again, many employees are also sacked for failing to meet job requirements or for being not skilled enough for providing the organization with competitive advantage in the market.

Role of Technology in Changing Human Resource Requirements

According to studies, these policies of the companies are significantly affecting employee satisfaction and that in turn results in decreasing their quality of performances in the organization. In other words, this has created a cyclic process – poor employee management → poor employee satisfaction → poor employee performance → poor employee management. In the current rat race of organizational superiority in the market, the organizations are mostly emphasizing on gaining competitive advantage rather than trying to enhance the employee performances i.e. they are failing to notice the positive impact of employee satisfaction and performance on the overall business performance of the organization. Furthermore, the organizations are always in the search for getting cheapest possible work for a particular duty, hence, once the value of a skilled employee is increased, they recruit new and fresh employee who they can pay less but can get the same amount of work output. This has created a lot of negative influence on the human resources and loyalty towards a particular organization is very rare to find in these days.

According to Hussin (2011), employee satisfaction and employee performance are two interrelated aspects that promote the growth of a business organization. Sufficient benefits and chance of personal and professional growth increases employee satisfaction and the employees put extra efforts and enhance their performances in the business organization. According to the common beliefs of most of the researchers, the enhancement of employee performance is directly related to the change in employee satisfaction. As per Nabirye et al. (2011), the more satisfied the employee is, the more enhanced performance he gives during the course of his work. However, Ram (2013) contradicted this belief by saying that employee performance is in most cases not affected by employee satisfaction. According to him, employee performance mainly comes from an urge to perform duties that may or may not come from satisfaction. In the current landscape of organizational human resource management, most employees enhance their performance in the fear of getting terminated from job or the prospect of facing heavy penalties due to the lack of sufficient performance during a certain period of time.

According to the works of Cullen et al. (2014), organizations nowadays run for instant success and gaining competitive advantage in the market but mainly emphasize on the deployment of available skills of employees rather than developing them as per the requirements and demands of the market condition. Before digital age, all aspects of business organizations were run by employees like data entry and processing, market analysis, preparation of strategies, implementation of strategies and others. Hence, employees were generally held in high esteem and the organizations took several steps and initiatives for further development of skill sets of the employees (Shmailan, 2016). Furthermore, the organizations also provided a large number of benefits, leaves, incentives, rewards, bonuses and others to the employees that helped to maintain their satisfaction. This in turn helped to enhance the performances of the employees, who performed exceedingly well not only for personal professional development but also to earn the benefits and incentives. However, in the current age, the organizations recruit skills employees only to sack them in case they fail to meet their job targets and business requirements of the organization.

Impact of Organizational Policies on Employee Satisfaction and Performance

Yao, Chen & Cai (2013) said that the reason for which the organizations have stopped providing the employees with sufficient benefits is that human resources are no longer required in every field of the organizational operations. Data entry, operations, management, analytics and others can now be done efficiently by various softwares and software platforms like analytics tools, cloud computing and others. As a result, less manpower is now required compared to the prior conditions. Moreover, some employees today use the benefits for personal gain and take them for granted. As a result, they receive the benefits but do not provide sufficient input in their job responsibilities that ultimately causes the organization to lose competitive advantage in the market.

In spite of the negative aspects discussed as well as the available technologies in the current age, Dusterhoff, Cunningham & MacGregor (2014) said that employee engagement and maintenance of employee morale is still an important requirement for the enhancement of business operations of an organization. They also emphasized that the modern organizations should understand the important of employee loyalty and satisfaction in order to earn their maximum performance in driving the organization towards operational excellence.

The main process to be followed for the execution of this research project is the collection of secondary data that contain some statistical proof of employee satisfaction and performance in various business organizations. Before the collection of secondary data, a literature review has been conducted that throws some significant light regarding the selected research topic. The data collected from the literature review will be further compared and validated with the secondary data collected from various online sources that have published results of questionnaire based surveys based on employee satisfaction and performance. This secondary data will be used reaching a suitable conclusion at the end of the research process. 

By analyzing the requirement of the entire research course, the proposed project schedule is as follows.

Accordingly, the Gantt chart of the project is presented as follows.

References

Abbas, M., Raja, U., Darr, W., & Bouckenooghe, D. (2014). Combined effects of perceived politics and psychological capital on job satisfaction, turnover intentions, and performance. Journal of Management, 40(7), 1813-1830.

Cullen, K. L., Edwards, B. D., Casper, W. C., & Gue, K. R. (2014). Employees’ adaptability and perceptions of change-related uncertainty: Implications for perceived organizational support, job satisfaction, and performance. Journal of Business and Psychology, 29(2), 269-280.

Den Hartog, D. N., Boon, C., Verburg, R. M., & Croon, M. A. (2013). HRM, communication, satisfaction, and perceived performance: A cross-level test. Journal of management, 39(6), 1637-1665.

Dusterhoff, C., Cunningham, J. B., & MacGregor, J. N. (2014). The effects of performance rating, leader–member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of Business Ethics, 119(2), 265-273.

Fock, H., Hui, M. K., Au, K., & Bond, M. H. (2013). Moderation effects of power distance on the relationship between types of empowerment and employee satisfaction. Journal of Cross-Cultural Psychology, 44(2), 281-298.

Gayathiri, R., Ramakrishnan, L., Babatunde, S. A., Banerjee, A., & Islam, M. Z. (2013). Quality of work life–Linkage with job satisfaction and performance. International Journal of Business and Management Invention, 2(1), 1-8.

Huang, Y. T., & Rundle-Thiele, S. (2014). The moderating effect of cultural congruence on the internal marketing practice and employee satisfaction relationship: An empirical examination of Australian and Taiwanese born tourism employees. Tourism Management, 42, 196-206.

Hussin, A. (2011). The relationship between job satisfaction and job performance among employees in tradewinds group of companies (Doctoral dissertation, Open University Malaysia).

McCann, J. T., Graves, D., & Cox, L. (2014). Servant leadership, employee satisfaction, and organizational performance in rural community hospitals. International journal of Business and management, 9(10), 28.

Nabirye, R. C., Brown, K. C., Pryor, E. R., & Maples, E. H. (2011). Occupational stress, job satisfaction and job performance among hospital nurses in Kampala, Uganda. Journal of nursing management, 19(6), 760-768.

Ram, P. (2013). Relationship between Job Satisfaction and Job Performance in the Public Sector-A Case Study from India. International Journal of Academic Research in Economics and Management Sciences, 2(2), 16.

Shmailan, A. S. B. (2016). The relationship between job satisfaction, job performance and employee engagement: An explorative study. Issues in Business Management and Economics, 4(1), 1-8.

Shooshtarian, Z., Ameli, F., & Aminilari, M. (2013). The effect of labor’s emotional intelligence on their job satisfaction, job performance and commitment. Iranian Journal of Management Studies, 6(1), 29.

Yao, Q., Chen, R., & Cai, G. (2013). How internal marketing can cultivate psychological empowerment and enhance employee performance. Social Behavior and Personality: an international journal, 41(4), 529-537.

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