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Job Satisfaction And Employee Performance In Manufacturing Firm (A Study Of Coco-Cola Company)


Job satisfaction represents one of the most complex areas when it comes to managing their employees. Many studies have demonstrated an unusually large impact on the job satisfaction on the motivation of workers, while the level of motivation has an impact on productivity, and hence also on performance of business organizations. There is a considerable impact of the employee’s perceptions for the nature of his work and the level of overall job satisfaction. Financial compensation also has a great impact on the overall job satisfaction of employees.

Chapter one


1.1Background of the study

Job satisfaction is a psychological state of how an individual feel towards work, in other words, it is people’s feelings and attitudes about variety of intrinsic and extrinsic elements towards jobs and the organizations they perform their jobs in. The elements of job satisfaction are related to pay, promotion, benefits, work nature, supervision, and relationship with colleagues (Mosadeghard, 2003). Employees‟ satisfaction is considered as all-around module of an organization’s human resource strategies. According to Simatwa (2011) Job satisfaction means a function which is positively related to the degree to which one’s personal needs are fulfilled in the job situation. Kuria (2011) argues that employees are the most satisfied and highly productive when their job offers them security from economic strain, recognition of their effort clean policy of grievances, opportunity to contribute ideas and suggestions, participation in decision making and managing the affairs, clean definitions of duties and responsibilities and opportunities for promotion, fringe benefits, sound payment structure, incentive plans and profit sharing activities, health and safety measures, social security, compensation, communication, communication system and finally, atmosphere of mutual trust respect. Job satisfaction means pleasurable emotional state of feeling that results from performance of work (Simatwa, 2011).

It commences with the recruiting of right people and continues with practicing programs to keep them engaged and committed to the organization (Freyermuth, 2004). Sutherland, (2004) contends that companies with high quality human capital perform better in marketplace, and deliver higher and more consistent returns to shareholders, than companies with mediocre workers. Sustainable competitive advantage requires satisfaction of employees for retention to the knowledge base of an organization. This knowledge is often tacit and hard to transmit between employees. Competitive companies worldwide rely on their employees to provide innovative, advantageous and original solutions to problems the company may have. Employees are deemed to be part of the intangible assets of an organization. They are a precious commodity that forms a significant part of an organization’s value.

Employee job satisfaction is supremely important in an organization because it is what productivity depends on. If your employees are satisfied they would produce superior quality performance in optimal time and lead to growing profits. Satisfied employees are also more likely to be creative and innovative and come up with breakthroughs that allow a company to grow and change positively with time and changing market conditions. Employee satisfaction is becoming more challenging for companies including those in the telecommunication industry due to a number of factors such as availability of the right talent in some fields, manager-employee relations, competition, differences in the level of employer employee expectations, the high cost associated with hiring new talents, among others. Employers‟ need for strategic effort directed at satisfying current employees is now urgent than ever to improve retention rates and decrease the associated costs of high turnover. Voluntary turnover is a huge problem for many organizations (Mitchell et al., 2001).

Employees in an organization have always been key assets as their departure could have significant effect on the implementation of the organization‟s business plans and may eventually cause a parallel decline in productivity. As such, employee satisfaction is important in the long term growth and success of a company. Employee satisfaction would ensure customer satisfaction and effective succession planning (Mello, 2007). Employee satisfaction would also improve investor’s confidence, as they are concerned with organization’s capacity to perform in such ways that would positively influence the value of their investment in the company, hence there is no question that uncontrolled employee turnover could damage the stability of the company. Talent and employee job satisfaction are closely related, in that happy brains lead to creative brains. Job satisfaction and employee happiness should be a big aspiration in talent management due to its impact on productivity, creativity and loyalty of employees. Talented employees want a clear vision of where the organization is going and an opportunity to personally grow and develop. Talent is the natural above average ability to perform a task. This individual has the natural inclination to perform the tasks they are talented in better than others. A talent is always a skill but a skill isn’t always a talent. A skill is the ability to do something well ie expertise, while talent is the natural aptitude. Career is an occupation undertaken for a significant period of an individual’s life with opportunities for progress. It’s an individual’s journey through learning, work and aspects of life. Employees want to feel that their talent and skill enables them to develop in a certain organization through opportunities for growth. Absence of this leads to dissatisfaction and poor performance. This study will use coca-cola company

1.2 Statement of the problem

The globalization trend, technology changes also development and new business practices continuously influence organization in Nigeria. Many companies are facing intensive challenge in improving the employee job satisfaction as well job performance to make organization successful. Normally employees will be more satisfied when they feel are rewarded fairly for the work they have done. Hence, those employees are more committed to the organization, have higher retention rates and tend to have higher productivity. Performance management and employee satisfaction are two areas that pose challenges for employers. Using performance management methods such as appraisals to measure employee performance comes with its own challenges, which are usually unforeseen. Only after employers implement complex appraisal programs do they realize the problems associated with them. Job satisfaction is another subjective topic that concerns employer’s job satisfaction, or lack thereof, can affect performance appraisals and threaten the employer employee relationship by creating friction between employees and their supervisors. Nevertheless, employers can use surveys, employee feedback and supervisor review to define what problems exist within both job satisfaction and performance appraisals. Some organization motivates their employee to perform effectively by offering some training and developmental programmes and offering various benefits for satisfactory performance among employee. Although the companies had provided some incentives and developmental programmes in order to motivate the employees, job satisfaction issues still exist. The job satisfaction and job performance relationship has been the object of much research in the area of industrial/organizational psychology for managerial implications. Although multiple models of the relationship have been suggested, to date research has not determined the appropriate causal model to explain this relationship

1.3 Conceptual framework

Job satisfaction: Job satisfaction is how content an individual is with his or her job. Affective job satisfaction is the extent of pleasurable emotional feelings individuals have about their jobs overall, and is different to cognitive job satisfaction which is the extent of individuals’ satisfaction with particular facets of their jobs. According ilham (2009), employee satisfaction refers to the positive or negative aspects of employee attitude towards their job. Employee satisfaction is the terminology used to describe whether employees are happy and needs at work. Job satisfaction plays vital role in life of man because it effects positively on the personal and social adjustment of the individual. The researcher found that work environment is an important determinant of job satisfaction of employees (Herzberg, 1968; Spector, 2008). The work environment in the new research, was found to be better determinant of job satisfactions by the scholars (Reiner and Zhao,1999; Carlan, 2007; Ellickson and Logsdon, 2001; Forsyth and Copes, 1994). Moreover, variation exists in terms of pay packages, working conditions, incentives, recognition and fringe benefits for the employees (Lavy, 2007). It was found that job satisfaction is adversely affected by the factors such as lack of promotion, working conditions, low job security and low level of autonomy. Guest (2004), Silla et al. (2005) and Ceylan,( 1998) concluded that the working conditions have effect on the satisfaction of employees. These include comfortable proper work and office spaces, temperature, lighting, ventilation. Schermerhorn (2005) emphasized that it is essential to recognize to the significance of these factors to boost the satisfaction level in the workforce. The researchers found the factors like pay, promotion and satisfaction with co-workers that influence the employee feeling towards job satisfaction.

Employee performance: Employee performance is normally looked at in terms of outcomes. However, it can also be looked at in terms of behavior (Armstrong 2000). Kenney et al. (1992) stated that employee’s performance is measured against the performance standards set by the organization. There are a number of measures that can be taken into consideration when measuring performance for example using of productivity, efficiency, effectiveness, quality and profitability measures (Ahuja 1992) as briefly explained hereafter. Profitability is the ability to earn profits consistently over a period of time. It is expressed as the ratio of gross profit to sales or return on capital employed (Wood & Stangster 2002). Efficiency and effectiveness – efficiency is the ability to produce the desired outcomes by using as minimal resources as possible while effectiveness is the ability of employees to meet the desired objectives or target (Stoner 1996). Productivity is expressed as a ratio of output to that of input (Stoner, Freeman and Gilbert Jr 1995). It is a measure of how the individual, organization and industry converts input resources into goods and services. The measure of how much output is produced per unit of resources employed (Lipsey 1989). Quality is the characteristic of products or services that bear an ability to satisfy the stated or implied needs (Kotler & Armstrong 2002). It is increasingly achieving better products and services at a progressively more competitive price (Stoner 1996)

1.4 Objective of the study

The study is to assess the job satisfaction and employee performance in coca-cola company. The specifically objectives are;

  1. To ascertain the relationship between job satisfaction and employee performance in coca-cola company in portharcourt
  2. To ascertain the influence of job satisfaction dimensions on employee job performance in coca-cola company, Portharcourt
  3. To ascertain level of job satisfaction and job performance among employee in coca-cola company

1.5 Research question

  1. Is there any relationship between job satisfaction and employee performance in coca-cola company in portharcourt?
  2. Is there any influence of job satisfaction dimensions on employee job performance in coca-cola company, Portharcourt?
  3. Is there level of job satisfaction and job performance among employee in coca-cola company?

1.6 Research hypotheses

The following have been put forward for testing

H0: There is no significant relationship between job satisfaction and employee performance in coca-cola company in portharcourt

H1:  There is significant relationship between job satisfaction and employee performance in coca-cola company in portharcourt

H0: there is no influence of job satisfaction dimensions on employee job performance in coca-cola company, Portharcourt

H2: there is influence of job satisfaction dimensions on employee job performance in coca-cola company, Portharcourt

H0: there is no level of job satisfaction and job performance among employee in coca-cola company

H3: there is level of job satisfaction and job performance among employee in coca-cola company

 1.7 Significance of the study

Hopefully, the results of this research will be both theoretically and practically beneficial. In theoretical perspective this research would help other researchers to prove the theory and also support the future research, generating good ideas and also provides better understanding. Next, for management perspective this research could support the management to improve the employee job performance in the future as well as to increase employee job satisfaction in coca-cola company. Lastly, this research will benefit other students to understand the relationship between job satisfaction and employee performance better and could be guideline for other researcher who is interested to study the relationship between job satisfaction and employee performance in other organization

1.8 Scope of the study

The scope of the study covers job satisfaction and employee performance in manufacturing firm. The study is limited to coca-cola company in Portharcourt

1.9 Limitation of the study

The researcher encounters some constraints which limit the scope of the study namely:

The research material available to the researcher is insufficient, thereby limiting the study

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

 1.10 Definition of terms

Job satisfaction: Job satisfaction is defined as the level of contentment employees feel with their job. This goes beyond their daily duties to cover satisfaction with team members/managers, satisfaction with organizational policies, and the impact of their job on employees’ personal lives

Employee performance: Employee performance is defined as how an employee fulfills their job duties and executes their required tasks. It refers to the effectiveness, quality, and efficiency of their output. Performance also contributes to our assessment of how valuable an employee is to the organization

1.11 Organizational profile

The Coca-Cola Company (NYSE: KO) is a total beverage company, offering over 500 brands in more than 200 countries and territories.

Our beverage brands include the following category clusters: sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant-based beverages; tea and coffee; and energy drinks. In addition, we own and market four of the world’s top five nonalcoholic sparkling soft drink brands: Coca-Cola, Diet Coke, Fanta, and Sprite.

We believe our success is a product of our ability to connect with consumers by providing them with a wide variety of beverage choices to meet their desires, needs, and lifestyle choices.


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