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Abstract: In today’s increasing competitive environment, organizations recognize the internal human element as a fundamental source of improvement. On one hand, managers are concentrating on employees’ wellbeing, wants, needs, personal goals and desires, to understand the job satisfaction. And on the other hand, managers take organizational decisions based on the employees’ performance.

The purpose of this essay is to identify the factors influencing job satisfaction and the determinants of employee performance, and accordingly reviewing the relationship between them. This essay is an interpretivist research that focuses on exploring the influence of job satisfaction on employee performance and vice, the influence of employee performance on job satisfaction. The essay also examines the nature of the relationship between these two variables.

INTRODUCTION

In today’s increasing competitive environment, Organizations face a lot of challenges. Indermun and Bayat (2013) stated that many organizations are struggling to be strong competitor to achieve its goals and objectives. Workforce now days are the organizational key success factor, therefore organizations put a lot of thought and effort to discover the degree of employee satisfaction in order to enhance their productivity and attain overall organizations objectives(Indermun & Bayat, 2013). Therefore, organizations are concerned about the relations between employee and the level of satisfaction and considered to be critical issue in relation with organization performance and improvement.

Locke (1976) defined employee satisfaction as “*…+ a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience.”There are many factors affect employees job satisfaction. Job satisfaction derives from intrinsic factors that are related to work itself or extrinsic factors which are related to instrumental values (Watson, 2012). While Aziri (2011) mentioned that job satisfaction is under the influence of many factors such as: The nature of work, salary, advancement opportunities, management, work groups and work conditions.

Understanding job performance for each employee is essential as organizational decisions are based on individual performance (Sonnentag, Volmer, &Spychala, 2008), leading to an organizational success. Performance is defined as “behavior that accomplishes results” (Armstrong & Taylor, 2014) or whether an employee is doing well at his job or not (Javed, Balouch, & Hassan, 2014).

Employee performance is influenced by lots of determinants. Folami et al. (2005) used a job context model thatclassified the determinants into four groups, the individual factors, the task characteristics, the economic factors, and the organizational context.

Skibba (2002) stated that the relationship between job satisfaction and job performance is one of the most researched areas in organizational psychology sector. There are lots of researches tested the impact of job satisfaction on employee performance. Most of them indicated that there is an impact of job satisfaction on employee performance and there is an impact of employee performance on job satisfaction (Skibba, 2002). But, rarely of them emphasize on whether the impactis direct or indirect.

Accordingly, an explanatory interpretivist essay is conducted to capture the reality of the relation between job satisfaction and employee performance in greater details. Numerous secondary data collection sources have been covered to get close understanding of the research subject and to look at previous researchers’ work in the same domain.

This research paper composed of first, the literature review, where job satisfaction and performance aspects are demonstrated according to other researchers. Second, the methodology chapter, where the research method and data sources are explained. Third, discussion and findings, where the relationship is examined and the hypothesis are discussed. Finally, the conclusion and recommendations.

 

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