Literature review

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).

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).

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.

Research methodology

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.

The aim of the research is to analyze the impact of job satisfaction on organizational performance.

The research objectives are:

• To understand the concept of job satisfaction and organizational performance
• To identify the factors of job satisfaction and organizational performance for Tesco
• To access the association between job satisfaction and organizational performance for Tesco
• To provide suitable recommendations for improving job satisfaction in Tesco

The research questions are:

• What do you mean by job satisfaction and organizational performance?
• What are factors affecting job satisfaction and organizational performance for Tesco?
• What is the association between job satisfaction and organizational performance for Tesco?
• What are the suitable recommendations for improving job satisfaction for Tesco?

The research hypotheses are:

H₀: Job satisfaction has no impact on the organizational performance.

H₁: Job satisfaction has an impact on the organizational performance.

Analyzing the impact of employee job satisfaction on organizational performance for Tesco is important, as this provides an opportunity to identify impact of the gap of job satisfaction on the organizational performance of Tesco. The research is significant, as this will allow the researcher to identify the potential reasons of inadequate job satisfaction for the employees of Tesco and analyze its impact on the organizational performance. Identifying the reasons of inadequate employee satisfaction will also provide an opportunity for the researcher to access the relationship between job satisfaction and organizational performance (Abbas et al. 2014). As a result, it will be easier to compare and contrast the organizational performance with and without the presence of satisfied workforce.

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 entire dissertation is dived into five chapters namely, introduction, literature review, research methodology, data analysis, conclusion and recommendations.

Introduction: The introductory chapter provides a brief background of the research along with identifying the potential problem encountered by the selected organization and the significance of conducting the research. The chapter also develops the research aim, objectives and hypothesis based on which the entire research work is commenced. 

Literature review: This chapter identifies the dependent and the independent variables along with the factors affecting the variables. In addition to, the chapter assesses the association between the variables thereby, analyzing the impact of the independent variable on the dependent variable. The chapter also consists of the conceptual framework that summarizes the overall structure of the chapter.

Data analysis

Research methodology: In the chapter, the researcher states the various methodological tools that can be used for carrying on a research work and collecting relevant and required data successfully. In addition to, the chapter highlights the justification of the selected methods that has been applied completing the research successfully.

Data analysis: This chapter consists of the analysis of the collected data by using appropriate data analysis technique and tools. The data is also interpreted in this chapter.

Conclusion and recommendations: This chapter deduces conclusion by considering the information from the data analysis and literature review information thereby, providing suitable recommendations.

In this chapter, it can be summarized that it is important for the business organizations to ensure job satisfaction for the current employees or the workforce. This is because a satisfied workforce is the most productive workforce. The chapter has helped in identifying the issues in terms of employee job satisfaction successfully thereby, highlighting the impact of the issue on the organizational performance of Tesco. In addition to, the researcher has justified the significance of conducting the research in terms of the employees and the organizational performance of Tesco.

Overview

In this literature review, the researcher has identified both the independent and dependent variables and has discussed them in detail. As a result, the researcher has been able to develop a deeper understanding of the concepts of job satisfaction and organizational performance along with the factors that affects them. In addition to, the researcher also refers to the relevant theories of job satisfaction that helps in ensuring satisfaction for the employees. Considering the increasing competitive market, it can be said that it is important for the business organizations to ensure job satisfaction for the employees. This is because satisfied employees contribute more towards the organizations thereby, improving the organizational performance.

Figure 1: Conceptual framework

(Source: Created by Author)

The concept of job satisfaction has been defined in many ways but it highlights whether the individual employees like their job or the facets of the job. As commented by Hulsheger et al. (2013), job satisfaction is defined as the pleasurable, positive emotional state of the individuals thereby, developing liking for their job. However, as argued by Braun et al. (2013), apart from the developing a liking for the job, job satisfaction considers the psychological aspect of the individual employees towards their job that determines their liking. Employees are the backbone of the business organizations that represents the company in the market and in front of the customers. Thus, satisfied employees represent the business organization more effectively in the market.

Conclusion and recommendations

In the competitive market, it is important for the business organizations to ensure employee job satisfaction, as this provides an opportunity for them to sustain in the competitive market. The various factors affecting the job satisfaction of the employees include the working environment, job security, promotion and pay, relationship with the co-workers, flexibility and perceived organizational support.

The working environment they are subjected to work in within the company determines the level of employee productivity. As commented by Raziq and Maulabakhsh (2015), effective and positive working environment encourage happy employees thereby, facilitating the growth of the organizational performance. Physical, social and psychological aspects help in establishing the working environment within the firm. The surrounding physical environment such as noise, infrastructure as well as psychological aspect in terms of monotony and boredom affects the level of employee job satisfaction. Thus, it is important for the business organizations to analyze the factors and implement them successfully thereby, improving the level of job satisfaction. However, as argued by Fortney et al. (2013), at certain instances, positive and effective working environment fails to ensure employee job satisfaction, as the employee satisfaction is determined by other factors. Thus, it is essential to analyze whether Tesco is able to provide positive working environment for ensuring job satisfaction for the employees.

The perceived risk of losing the hob measures the level of job security. As commented by Millan et al. (2013), the job security provides an assurance to the employees regarding the continuity of the current employment. Job security ensures employee satisfaction as they feel assured about the financial aspect and psychological aspect. Job security highlights fixed income for the individual employees thereby, motivating them to work harder and give their best for improving the organizational performance. In addition to, psychological satisfaction of being employed facilitates the level of job satisfaction for the employees. However, as argued by Gayathiri et al. (2013), ob security fails to ensure job satisfaction as the employees seek other factors in order to satisfy them in the current job. Thus, increased job security is directly proportional to the level of job satisfaction for the employees. The rate of job security in Tesco needs to be analyzed in order determine the impact on employee job satisfaction.

It is important for the human resource management to improve the confidence as well as the attitude of the employees towards their job appropriately. As mentioned by Suma and Lesha (2013), promotion helps in ensuring job satisfaction, as the employees feel valued for their contribution and effort towards the business organization. Promotion provides an opportunity for shifting the employee to a higher position based on the previous performance. However, as argued by Mustapha (2013), in addition to promotion, pay also helps in ensuring job satisfaction for the employees. This is because with promotion, comes added responsibility for the employees. Thus, the employees expect to to recognize for their increased effort and responsibility by higher pay scale. Both promotion and pay helps in ensuring job satisfaction for the employees, as the employees feel valued and significant for the business organizations thereby, giving more effort for improving the organizational performance. The promotion and pay scheme implemented by Tesco needs to be analyzed in order to determine the employee job satisfaction.

Factors affecting job satisfaction

Positive relationship with the fellow co-workers is essential in order to ensure job satisfaction for the employees. As mentioned by Srivastava (2013), the positive relationship with the co-workers ensures employee satisfaction at workplace. Positive relationship with the co-workers highlights cooperation, team spirit, support, trust and clear flow and exchange of required information. As a result, the employees feel psychologically stable and satisfied thereby, eventually affecting the level of job satisfaction. However, as argued by Tang, Siu and Cheung (2014), relationship with the co-workers leads to competition that affects the level of job satisfaction for the employees. In addition to, positive relationship with the co-workers mitigates the chances of stress at workplace due to which the employees are able to focus on their effectively thereby, improving organizational performance. As Tesco fails to ensure effective relationship between the co-workers, the impact on job satisfaction needs evaluation.  

Workplace flexibility helps in ensuring job satisfaction but highly depends on how the human resource management provides the workplace flexibility. As commented by Azanza, Moriano and Molero (2013), workplace flexibility gives the responsibility to the employees to complete their job roles and responsibilities according to their convenience. Because of work flexibility, the employees are able to work in free mind thereby, concentrating on the work completely. As the employees feel that the business organizations consider their needs and expectations and provide them with work flexibility, they tend to provide extra effort towards their work. However, as argued by Allen et al. (2013), the opportunity of work flexibility comes with added challenge that highlights casualness within the employees at certain instances. The employees might take the opportunity as an advantage of delaying their roles and responsibilities. Thus, it is important to strategies the work flexibility in such a way that it ensures employee job satisfaction but restrict it from being misused. It can be seen that flexibility has ensured job satisfaction in different organizations but the impact on Tesco need evaluation.

Support from the organization provides an opportunity for the employees to develop and enhance their present skills as well as learn new skills. As commented by Biswas and Bhatnagar (2013), perceived organizational support acts as a support for the employees that they can use to develop them both personally and professionally. Self-development with continuous support and cooperation from the organizations helps in ensuring job satisfaction for the employees. Thus, the employees use the skills learned with the help from the respective organization for improving the organizational performance by taking the sole responsibility. However, as argued by Cullen et al. (2014), at certain instances, the perceived support from the organization fails to ensure job satisfaction, as the employees are reluctant about the help they get. The level of perceived organizational support in Tesco needs analysis in order to evaluate the impact of job satisfaction.

Relationship between job satisfaction and organizational performance

Hertzberg’s two-factor theory of job satisfaction

The Hertzberg’s two-factor theory highlights that there lies certain factors at workplace that results in employee job satisfaction and dissatisfaction. Therefore, it is essential for the human resource management to consider the satisfactory factors and eradicate the dissatisfactory factors in order to ensure employee job satisfaction (Yusoff, Kian and Idris 2013).

Table 1: Hertzberg’s two-factor theory of job satisfaction

(Source: Hofmas, De Gieter and Pepermans 2013)

The above table highlights the factors that results in employee satisfaction and dissatisfaction. Implementing the job satisfactory factors ensures satisfying the employees successfully thereby, improving the organizational performance. The job satisfactory factors of the employees provide an opportunity for them to achieve their desired results at work thereby, giving their best at workplace. On the other hand, eradicating the dissatisfactory factors also provides an opportunity for the business organizations to eliminate the disturbing factors thereby, facilitating the employees to give their best at work. Thus, Tesco needs to consider the job satisfactory factors as mentioned in the theory and determine the impact of on organizational performance.

Employee job satisfaction is influenced by the ways the business organizations strategize or implement the factors of satisfying the employees. There are potential challenges of ensuring job satisfaction for the employees. One of the major challenges in ensuring job satisfaction is to analyze the potential factors that facilitate employee job satisfaction. As commented by Van Wart (2013), the business organizations find it difficult to know the factors that facilitate job satisfaction for the individual employees. Several employees from different backgrounds, needs and expectations work for a particular business organization. Thus, identifying the job satisfaction factors for each of the employees and implementing them is challenging for the business organizations. However, as criticized by Maier et al. (2013), effective planning and strategizing allows the business organizations to identify the employee satisfaction factors and using them appropriately. In order to know the factors that ensure job satisfaction, both way communications is essential. However, lack of effective communication makes it difficult to ensure job satisfaction for the employees thereby, affecting the organizational performance. These are the major challenges encountered by the business organizations while ensuring job satisfaction for the employees. Thus, the challenges faced by Tesco in terms of employee job satisfaction needs to be analyzed.

The concept of organizational performance consists of the results or actual output for a particular business organization. As mentioned by Camison and Villar-Lopez (2014), organizational performance is measured by comparing the intended outputs against the set organizational goals and objectives. The factor that highlights the organizational performance includes the financial performance, product market performance and the shareholder return. The ability of the organization to perform in order to achieve the organizational goals and objectives as well as to sustain in the competitive market highlights organizational performance. The functioning capability and success highlights the level of organizational performance. It has been seen that highly satisfied employees’ results in improved organizational performance. Thus, it is required to measure the organizational performance of Tesco by comparing the employee job satisfaction in the company. 

Methods to improve job satisfaction

The different factor that affects the organizational performance includes satisfied employees, employee engagement and commitment, risk management techniques, involvement of the stakeholders, organizational values and cultures and creativity and innovations.

Employees are the backbone of the business organizations; they are the ones representing the company in the target market. As commented by Wu, Straub and Liang (2015), satisfied employees results in highly productive company as well as improved organizational performance. Unable to ensure employee satisfaction hampers the organizational performance. Thus, the impact of employee satisfaction on organizational performance of Tecso needs to be evaluated.

Engaged employees results in better dedication and commitment from the employees that improves organizational performance. This is because the employees involves them and take extra initiatives for making their organization stand out in the competitive market (Chaudoir, Dugan and Barr 2013). Thus, the level of employee engagement and its impact on the organizational performance of Tesco is analyzed.

Risks are common while the business organizations operate in the competitive market. Thus, ability to manage risks successfully provides an opportunity for the business organizations to be prepared for the risks in future and strategize to overcome them (Gao, Sung and Zhang 2013). Successful risk management improves organizational performance, as the firm is able to achieve organizational aim and objectives. Thus, the risk management capabilities affect the organizational performance of Tesco.

The involvement of the stakeholders and its impact on organizational performance is still unclear that has led to considering and analyzing the factor. The significant role of the stakeholders is debatable as it is considered to have both positive and negative impact on the organizational performance (Harrison and Wicks 2013). Thus, the involvement of the stakeholders on the organizational performance of Tesco is considered.

Organizational values and cultures

As mentioned by Hogan and Coote (2014), the organizational values and cultures affects the organizational performance, as the positive values and cultures promotes healthy working environment for the employees thereby, encouraging them to perform their best. Improved and efficient performance from the employees enhances the organizational performance thus, needs to analyzed in terms of the organizational values and cultures of Tesco and its impact on performance.

Both creativity and innovation allows the business organizations to stand out from the competitors in the market and the two factors are best executed if the business organizations have effective and efficient employees working for them (Uzkurt et al. 2013). Thus, the creativity and innovations help in uplifting the present performance of the business organizations. Unable to promote and facilitate creativity and innovations hampers organizational performance.

Working environment

The attitude of the employees plays a significant role as this allows the managers to determine the behavior of the employees within the organizations. A satisfied worker means a productive worker. As mentioned by Fu and Deshpande (2014), one of the most important impacts of job satisfaction is productivity that improves the organizational performance. A satisfied employee gives extra effort and works hard towards their roles and responsibilities thereby, making their organization stand out in the crowd. However, as argued by Kehoe and Wright (2013), increased productivity only does not signify improved organizational performance. Thus, the impact of employee job satisfaction for Tesco needs attention in order to determine the impact on the organizational performance.

Thus, in this chapter, it can be concluded that job satisfaction does have an impact on the organizational performance. This is because satisfied employees results in higher productivity thereby, improving the organizational performance of the business organizations. It is essential for the business organization, such as Tesco to ensure effective employee job satisfaction and organizational performance. Considering the increasing competitive market, it is important for Tesco to ensure job satisfaction for the employees. This is because satisfied employees contribute more towards the organizations thereby, improving the organizational performance.

Introduction

In this chapter, the researcher sheds light on the different methodological tools that has been used for carrying out a research. In addition to, the researcher justifies the election of the particular research tools that has been used by the researcher for this research. Moreover, the researcher also states the research ethics followed as well as the accessibility issues faced by the researcher while commencing with the research work.

For commencing this research work, 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 using Statistical Package for the Social Sciences (SPSS). The aforementioned research methodologies has been used by the researcher based on research topic that aim towards investigating the impact of job satisfaction of the employees on organizational performance of Tesco.

Positivism, interpretivism and pragmatism are the three types of research philosophies that can be used while commencing with research work. The concept of positivism philosophy sheds light on the opportunity of the using scientific approach for analyzing the data thereby, ensuring data validity and accuracy (Nueman 2013).

Job security

Positivism philosophy has been used for this research, as the researcher has been able to use scientific approach for analyzing the impact of employee job satisfaction on the organizational performance of Tesco. The use of scientific approach helped the researcher to ensure data accuracy in respect to the response of the Tesco employees in terms of their job satisfaction and its impact on organizational performance.

Both inductive and deductive approaches are used for commencing the research work. For this researcher, the researcher has used deductive approach that has helped in achieving the research aim and proving the hypothesis.

The use of deductive approach has been justified for this research, as this allowed the researcher to refer to already existing theories and concepts of job satisfaction and organizational performance. As a result, the researcher has been able to relate the findings of the data with the existing data and information thereby, analyzing its impact on improving the organizational performance (Taylor, Bogdan and DeVault 2015).

Explanatory, exploratory and descriptive are the three research designs that are used for carrying out a research. In this case, the researcher has used descriptive research design.

The use of descriptive research design is justified as this allowed the researcher to identify the problems of employee satisfaction and provide suitable recommendations for mitigating the problems in order to improve organizational performance for Tesco (Lewis 2015). In addition to, the use of this strategy also allowed the researcher to explain the various factors of job satisfaction and organizational performance thereby, justifying their presence in the research work.

The different research strategy includes action research, case study, interview and survey. For this research, survey research strategy has been used.

The application of survey research strategy has been appropriate as this allowed the researcher to collect raw and quantitative data from the employees of Tesco and consider their viewpoints on the impact of the job satisfaction of the individual employees in improving the organizational performance of Tesco (Vaioleti 2016).

The different types of the sampling techniques include non-probability sampling technique, systemic sampling, cluster sampling and probability sampling technique (Flick 2015). In the case of this researcher, random probability sampling technique has been used.

The implementation of random probability sampling technique is justified, as this allowed the researcher enable equal chances to all the employees of Tesco to participate in the survey and share their opinion regarding the impact of their job satisfaction level in improving the performance of Tesco. Out of the entire employee population of Tesco, the researcher has selected 200 employees of Tesco using this sampling technique.

Promotion and pay

The two distinctive method of collecting data for the research work are primary and secondary techniques (Panneerselvam 2014). In case of this research, the researcher has used primary data collection technique.

The application of primary data collection technique is appropriate, as this allowed the researcher to collect data from the employees of Tesco. As a result, raw and recent data in terms of the employees are represented in the form of numerical are considered for this work.

Qualitative and quantitative are the two methods of analyzing data for commencing with the research work (Neuman and Robson 2014). In this case, the researcher has used quantitative data analysis technique.

The application of quantitative data analysis is appropriate, as this allowed the researcher to collect raw and numerical data from the employees of Tesco. As a result, the researcher has been able to determine the number of the employees in Tesco that considers that their job satisfaction level helps in improving the organizational performance. In order to analyze the quantitative data, the researcher has used SPSS tool.

Following the research ethics is significant in order to achieve the research aim and objectives and completing the work successfully. In the case of primary data collection technique, one of the most important research ethics is maintaining the confidentiality of the data and the identity of the respondents. Disclosing the data and the identity against the consent is against the ethics of research. In addition to, the researcher has to ensure that the respondents participate in the data collection process willingly (Haggerty 2016). Therefore, signing the consent form by the respondents is the most suitable method for ensuring that the respondents are participating willingly. Moreover, the researcher has to collect the data from authentic resources and use it for academic purposes only.

While commencing with the research work, the researcher has faced some issues that has affected the quality of the work. As the research is conducted on the particular industry sector in the UK, the work cannot be used as the secondary resources for all the industry sectors in the UK. In addition to, the only use of close-ended questions has limited the options for the respondents to share their viewpoints and perspectives openly. Thus, answering from the given options restricted the respondents in sharing their opinion in terms of their behavior and satisfaction for using online platform for buying fashion apparels.

In this chapter, it can be summarized that the use of the particular research tools has been justified, as this has allowed the researcher to analyze the impact of consumer behavior and customer satisfaction for using the online platform for buying fashion apparels. This has been justified by the application of scientific approach, describing each of the factors, finding the issues, refereeing to existing concepts and providing solutions to the identified gaps.

Relationship with co-workers

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