Vol. 07, Issue 04,April 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 63 COMPARATIVE ANALYSIS OF EMPLOYEE SATISFACTION AMONG MULTINATIONAL AND
DOMESTIC COMPANIES AND ITS IMPACT ON ORGANIZATIONAL PERFORMANCE Gaurav Hiranwar
Department of Industrial Engg.& Management,
Takshshila Institute of Engineering & Technology Jabalpur (M.P.) Prof. Alok Agrawal
Department of Mechanical Engineering,
Takshshila Institute of Engineering & Technology Jabalpur (M.P.)
Abstract - Job performance is positive and pleasant attitude of an employee for his job.
Satisfaction is the feelings of effective responses of individual towards his job. Definition of Job satisfaction is different for each employee of any organization. The company's employees are highly satisfied which is a matter of curiosity. It has motivated the researcher to find out the factors that is contributing towards the highest level of job satisfaction. It starts by defining Multinational Company discussing its merits and demerits, analysing the various components of its strategies and structures and comparing the merits and demerits of these different types of structures and strategies.
The survey aims to provide a feedback to the companies on what the employee marketplace thinks about various companies, what factors are considered important, what factors attract people, what factors demoralize people, what factors can impact on employee’s performance and other inputs in an impartial representative manner. This survey primarily aimed to capture the Aspiration and Perception across key variables of Organizational interface with an employee.
This extensive survey of industrial engineering & management practices in Multinational Companies (MNCs) and Domestic companies (NON-MNCs) would have not been possible without the cooperation of a large number of people and institutions. The survey explores substantive areas are like the HR functions, pay and performance of management, employee representation and consultation, employee involvement and communication, training, development and organizational learning to improve the performance of organization with employees growth.
Keyword: Employee Satisfaction, Multinational Companies, Domestic Companies, Organizational Performance, Job Satisfaction Factors, Statistical Analysis.
1 INTRODUCTION
Job satisfaction and employee performance are very important factors for long-term growth of any organizational system. Job satisfaction in work is very essential for every employee because they form the essential reason for working in life.
Job satisfaction is the ability of the educational environment in which employees needs and their personal improvements comes into the picture.
Impact of facilities providing by an organization may reduce employee’s performance, but somewhere it gives the result on the positive scale. When an employees are unsatisfied from the services given by an organization, so they will not give their performance towards their work
as they can do. Dissatisfying work situation includes Pay, job security, flexible benefits program, good working environment, pension schemes, additional training programs are the causes for employee performance. Once all these variables are identified, management, owner of organization, & also government should understand why employees are not giving their 100% performance towards their work, when they are capable to do their work very efficiently. Positive correlations were observed between organizational performance and some employee satisfaction factors, namely working conditions, ability of utilization, creativity, teamwork and independence. Amongst the
Vol. 07, Issue 04,April 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 64 all factors, teamwork had the greatest
impact on organizational performance, followed by ability of utilization, creativity, independence, with working conditions exerting the least influence. This calls for organizations to place more emphasis on recognizing and enhancing all components of work linked to higher levels of employee satisfaction. At the same time, organizations need to identify and lessen the effects of those facets associated with high levels of employee dissatisfaction those can become a point which can impact on employees performance.
1.1 Job Satisfaction
Throughout the history of organizational and behavioural research, the subject of employee satisfaction has always attracted widespread empirical examination, leading to a number of interesting definitions. Price (2001) defines employee satisfaction as the effective orientation that an employee has towards his or her work. It may also be recognized as the individual’s perception and evaluation of the overall work environment. Job satisfaction is the topmost important target for the process of making total quality in the working environment, because the total quality is based on the sincere commitment to work.
Job satisfaction is the difference between the inputs made by employee and the outputs receive from the job. When the answer comes positive then the employee is satisfied and when the answer comes negative then the employee is dissatisfied with the job. Job satisfaction may be an emotional state which gives positive energy and pleasure to employees.
Fig 1.1- Components of job satisfaction
1.2 Organizational Performance
The body of research on the relationship between employee satisfaction and organization performance continues to grow. Organizational productivity and efficiency are attained by satisfying employees and being sensitive to both their physiological and socio-emotional needs in a holistic manner. A study conducted by Cole and Cole (2005) reports that there is a positive correlation between the job attitudes of individuals and their performance. A meta-analysis conducted by Judge et al (2001) also found a positive relationship between individual employee satisfaction and factors such as motivation, job involvement, organizational citizenship and job performance. In another meta- analysis conducted by Harter, Schmidt and Hayes (2002), it was found that there is a positive relationship between employee satisfaction and productivity, profit, turnover and customer satisfaction in nearly 8000 business units in 36 organizations across the five continents of the world.
Studies conducted by Schneider et al. (2003) and Zohir (2007) confirm that there is a positive correlation between overall employee satisfaction with the organization’s financial and market performance. Corporate Leadership Council (2003) also conducted an employee satisfaction survey of over 40% of the companies that are listed in the top 100 of Fortune 500 companies. The study concluded that employee satisfaction, behaviour and turnover predicted the following year’s profitability, and that these are even more strongly correlated with customer satisfaction. A survey conducted by Price Waterhouse Coopers (2002) which involved several multinational companies sustains that employee satisfaction as well as decreased turnover are major contributors of long-term shareholder returns. Conversely, employee dissatisfaction resulting from poor workplace environments can also lead to a decrease in productivity leading to poor organizational performance. It is important for management in organizations to create a
Vol. 07, Issue 04,April 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 65 work environment that facilitates higher
employee satisfaction levels. This is because employee satisfaction has a stimulus effect on the loyalty and confidence of employees, improves the quality of outputs and also increases productivity. Satisfied employees tend to perceive that the organization will be more satisfying in the long run, they care about the quality of their work and are more committed to the organization, leading to a demonstration of organizational citizenship behaviours. When employees are dissatisfied, their physical and mental health is negatively affected. Consequently, organizational performance will also deteriorate as more production time will be lost because dissatisfied employees are likely to take more leave; therefore, if steps are taken to improve employee satisfaction, overall success of the organization is enhanced and the results can be reflected through happier employees, enhanced workforce productivity, reduced workdays and higher profits. This also typifies the importance of people in organizations, since people are the promoters of excellent organizational performance.
2 LITERATURE REVIEW
Wafa Boulagouas et al (2021) conceptualize the alignment of employees through measurement of job satisfaction and use the Bayesian Network to assess the influence of human factors, particularly the cognitive, emotional, and behavioural aspects. This study shows the influence of emotional, cognitive, and behavioural dimensions on job satisfaction and employees’ alignment during the organizational change. Furthermore, it elaborates the way to develop efficient and effective strategies for a successful change implementation and sustained alignment.
Hellen P. Gross et al (2021) tested, how eleven dimensions of employees’ job satisfaction explain their recommendation intention on behalf of the hospital they work, with a quantitative-exploratory approach.
Atishree Bhardwaj et al (2021) observed employee satisfaction with respect
to their position in various commercial banks, including private, public banks in Rajasthan, and examined how various variable factors affect employee satisfaction.
This study characterizes the factors that lead to higher level of job satisfaction.
These factors relate to the manager, remuneration, reorganization, remuneration, promotion, work safety and relationships in the work environment. The research shows that there is a positive correlation and connection among job satisfaction & the award, remuneration, job security, promotion opportunities and good relations with employees.
JunbangLan et al (2021) attempted to capture the dynamic changes of training outcomes by adopting a learning and development perspective. Drawing on psychological capital theory and self- determination theory, impact of training on trainees’ personal growth and psychological development has been examined.
Anastasia Ozturk et al (2021) explore the impact of servant leadership on absenteeism, in-role performance, and extra-role performance via the mediating roles of work engagement and job satisfaction. Study results reveal that the positive effect of servant leadership on work engagement is stronger than on job satisfaction. These findings enhance current understanding about the effectiveness of work engagement versus job satisfaction regarding the effect of servant leadership on behavioural consequences.
Meng-Long Huo et al (2021) investigates how trait conscientiousness affects career satisfaction and job satisfaction and the boundary condition of these effects. Results revealed that the impact of conscientiousness on thriving at work, and subsequently on career and job satisfaction, was stronger when individuals received less supervisor support.
Bishal Sainju et al (2021) explored employee reviews of Fortune 50 companies from Indeed.com using Structural Topic Modelling (STM) to identify salient aspects in employee reviews and automatically infer latent topics that are salient factors related to employee satisfaction. Results suggests
Vol. 07, Issue 04,April 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 66 that management may be an important
salient factor in employee satisfaction and turnover, as it is consistently mentioned by current and former employees in both positive and the negative comments.
Similarly, monetary benefits are mentioned as a negative by former employees, but as a positive for current employees.
Sang Hee Park et al (2020) aimed to investigate the associations between physical acoustic factors, job characteristics, and job satisfaction. The questionnaire assessed perceived speech privacy, noise disturbance, job characteristics, and job satisfaction. Job satisfaction showed a negative correlation with speech privacy, whereas the relationship between job satisfaction and noise disturbance was not significant. It was also observed that the relationship between task identity and job satisfaction was moderated by the active noise level and speech privacy.
C.O. Henriques et al (2020) explores the trade-offs between four different aspects of European workers’ life satisfaction (satisfaction with education, the present work, family life and social life), to reach balanced optimal levels across these features. The methodology employed for this purpose couples econometric and multi-objective interval programming approaches, enabling to assess the compromises of specific aspects of workers’
personal and working conditions. Findings indicate that current full-time working environments do not enable to foster higher levels of workers’ life satisfaction with more than one child. Moreover, full-time (unlike part-time) working activities allow reaching worse levels across all measures of life satisfaction under analysis in a best-case scenario.
V. Salehi et al (2020) employs data envelopment analysis (DEA) approach to optimize the overall performance of a ceramic tile company by considering resilience and job-driven factors. The required data were collected via a standard questionnaire whose reliability was examined by statistical methods. In this regard, sensitivity analysis was performed
to determine the most important factors.
DEA results showed that job stress, job burnout, and management commitment play a central role in the investigated system. The overall results indicated that job-driven factors have a higher weight than resilience factors.
3 OBJECTIVE OF THE RESEARCH 3.1 Statement of Problem
Job satisfaction or dissatisfaction is positive or negative attitude of an employee for his job, which comes from the services provided by an employer or organization. Job satisfaction or dissatisfaction is the feelings of responses of individual towards his job, which is decided by the services of Multi- national Companies or Domestic Companies. These necessitate the need to investigate and address the issues of 'Multi- national Companies or Domestic Companies’ performance and obtaining the factors in which employees comes into the stage of satisfied or dissatisfied. It is important for the management (employer), to know how given services has an impact on employees performance in Multi- national Companies & Domestic Companies.
3.2 Objective of the Research
The main aim of this research is to find out how overall services provided by an organization can affect employees performance in Multi-national Companies or Domestic Companies. The specific objectives are:
1. Find out the relationship between job satisfaction or dissatisfaction and employees performance.
2. Determine top 3 parameters which are responsible for employees performance related to job satisfaction or dissatisfaction in Multi-national Companies.
3. Determine top 3 parameters which are responsible for employees performance related to job dissatisfaction or dissatisfaction in Domestic Companies.
4. Measuring performance or effectiveness by a combination of conventional indicators and goals achievement, and a
Vol. 07, Issue 04,April 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 67 combination of subjective assessment
and objective data, which increases the reliability of the outcome.
4 RESEARCH METHODOLOGY
The main aim of this research is to find out the satisfaction and dissatisfaction of employees and its impact on performance factor of an organization &case study related to employees in Multi-national Companies or Domestic Companies. This is based on qualitative research.
Fig 4.1 – Research Methodology 5 DATA ANALYSIS OF BIG BUDGET
COMPANY (MULTI-NATIONAL
COMPANIES) FOR THEIR FACILITIES:- 5.1 Satisfaction rating scale due to the variable my pay meets my needs (V1) The researcher gathered all data of employee’s facilities related to the variable
“my pay meets my needs” according to Likert scale. Table 5.1 indicates that only three components which are 3, 4 and 5 are obtained from employee’s response according to the variable (v1), and there is no response of remaining two components which are 1 and 2. Result indicates that highest response from employees is that
they are strongly agree (5) from the variable my pay meets my needs.
Table – 5.1 Satisfaction rating scale for variable my pay meets my needs (V1)
Fig. 5.1 – My pay meets my needs (v1) Employee Comments:
I used to really enjoy my job because a regular incentive gives motivation to us.
As there is little chance of promotion it is easy to get good positions with good salary.
5.2 Satisfaction rating scale due to the variable overall I gain good satisfaction from my job (v2)
The researcher gathered all data of employee’s facilities related to the variable
“overall I gain good satisfaction from my job (v2)” according to Likert scale. Table 5.2 indicates that only four components which are 2, 3, 4 and 5 are obtained from employee’s response according to the variable (v2), and there is no response of remaining one component which is1. Result indicates that highest response from employees is that they are agree (4)from the
Vol. 07, Issue 04,April 2022 IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL) 68 variable overall I gain good satisfaction from
my job.
Table – 5.2 Satisfaction rating scale due to the variable overall I gain good
satisfaction from my job (V2)
Fig. 5.2 – Overall I gain good satisfaction from my job (v2)
6 RESULTS
Average scale rating of satisfaction or dissatisfaction level for the services provided by an organization obtained from employee’s response according to all variables which is based on Likert scale indicates that the 3 responses from employees for Multinational Companies, which are majorly impact on performance of organization are:
Employer provides additional training to improve knowledge (V8)
My job has good working conditions (V6)
My pay meets my needs (V1)
Now 3 responses from employees for Domestic Companies, which are majorly impact on performance of employer, are:
I feel secure in my job (V4)
I have a clear idea about the goals for my department (V3)
Overall I gain good satisfaction from my job (V2)
All analysis of data shows that questionnaire is effective and it helps to the
finding reasons of job satisfaction and dissatisfaction of employee’s for the services provided by an employer and its impact on performance of employer in Multinational Companies or in Domestic Companies. It also shows that the sequence of satisfaction variables is different for Multinational Companies and for Domestic Companies, which majorly impact on the performance factor of an organization.
6.1 Suggestions
Job satisfaction or dissatisfaction plays an important role for enhancing or reducing the performance factor of any organization, so to improve the performance of organization all the employees must be satisfied from the services, which is provided by their employer (Multinational Companies or in Domestic Companies).
Once the employees would be satisfied by the services, so they will give their 100%
efficiency towards their work, so that performance of an organization will be improve. The following suggestions for improving organizational performance for Multinational Companies or in Domestic Companies are:
It is the responsibility of organization and management that they give enough opportunity to employees for Additional Training & Education for their future. It may include paid leave, which also increase the satisfaction of employees &
they can perform well.
Offer Motivational Factors such as financial incentives, bonuses, company cars, or other prizes which are the part of organization but it’s rarely seen in any system.
Always implement two way communications system.
Allow employees to give their opinions and suggestions for decision making.
Hold regular staff meetings to track the status of pending projects make new assignments and encourage brainstorming on existing or potential problems.
Emphasizing positive traits and actions in the workplace does more to improve employee performance.
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The important step in improving any organization is establishing and enforcing the concept that there are different sets of rules or services that govern the activities to improve the performance factor.
7 CONCLUSION AND FUTURE SCOPE This quantitative research set out to explore the main variables which makes employee satisfied or dissatisfied and the results comes in the form of their performance. It is the equal responsibility of government, organizations and owners of companies to take care of their employees. Because if in an industries workers are not satisfied they may produce the product with less quality or may be with less production that’s directly impact on performance factor of organization. There are so many factors that we discussed like my pay meets my needs, overall I gain good satisfaction from my job, job security and good working condition with good schemes for employees are also have to taken in to account by which employees satisfaction or dissatisfaction can impact on the employer performance factor. Satisfied and secured employees will motivate enough to be committed to do their dedicated works for the organization objectives and to achieve their goals. It may be helpful for organizations (Multinational Companies or in Domestic Companies). This research reveals that services for employees as a threat to the organization and it leads to the satisfaction or dissatisfaction of the employees. The result obtained at the end indicates that there is a direct linkage between facilities provided by employer and its impact on performance of organization.
An understanding of relationship between job satisfaction with the facilities or services and other factors that can impact on performance of employer is done. In order to gain competitive advantages and adapt to the impressive changing environment it is important for the organizations to achieve employer efficiency by increasing employee satisfaction. Therefore it is concluded that in order to keep employees satisfied today
to improve the performance of employer, it takes an entirely different approach
