Job Satisfaction in MNCs


23 Mar 2015 22 May 2017

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Job Satisfaction in MNC


Job satisfaction is one of most important fields of study in the subject of human resource management. This important role of job satisfaction function leads the way in assuring high level of job satisfaction among the employees. Job satisfaction function of any HR vertical of an organization is primarily responsible for productivity of employees and the employee turnover. Since these two aspects can make or break the organizations performance in all areas, it requires attention from top management. Job satisfaction function generally is part of the HR vertical with a clear mandate of motivating employee and continuously striving for higher employee job satisfaction through introduction of new policies and frameworks. The topic forms an integral part of organizational effectiveness and that has instigated me to choose this topic of job satisfaction. I shall try to study the existing literature on job satisfaction and will choose multinational companies to study their varied job satisfaction strategies and make analysis.

Job satisfaction function is a vast topic and cannot be completely covered in this dissertation. Various researchers have already published their research articles on this subject. I shall be developing on it through understanding the different strategies used by MNC's in today's business environment for maintaining better levels of job satisfaction. Job satisfaction as stated earlier is a complex topic and hence i will try to break it down to simpler and more realistic frameworks to understand the thought process of an organization to ensuring better job satisfaction amongst its employees.

According to Wood (1973), “job satisfaction is the condition of contentment with one's work and its environment, denoting a positive attitude.” Locke (1976) stated that, “job satisfaction could be viewed as a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences.”

In other words, it can also be stated that, “job satisfaction was simply a function of the degree to which a job provided the worker with positively values outcomes.” Wanous (1980) said that, “job satisfaction was a match between a person's need and the reinforcement received from work performed in an organization.”

The HR vertical of any organization shall try to achieve higher levels of job satisfaction through various techniques like awards program, job rotation, internal promotion scheme, family tours and training processes. There is no destination to achieving job satisfaction but the journey is perpetual in nature. Continuous improvement is the name of the game in achieving relatively good job satisfaction amongst the employees. The measure of job satisfaction can only be achieved through comparison in similar industries and through the employee turnover and productivity data.

Job satisfaction is one of the most widely discussed and enthusiastically studied constructs. However, job satisfaction is among the most difficult constructs to define. A review of literature shows that constituted definitions of the construct vary from one researcher to the next. Wood (1973) describe the job satisfaction as “the condition of contentment with one's work and it's in my mind, denoting a positive attitude”(p.8.). Locke (1976) stated that job satisfaction could be viewed as “ a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences.” (p.1300)

there are several reasons for studying job satisfaction. “ Organizations major job satisfaction primarily because of its presumed direct relationship to the short-term goals of cost reduction through increased individual productivity and reduced absences, errors, and turnover.” (Cranny et al, 1992). Levels of job dissatisfaction have been found to be related to job turnover, absences, and tardiness.

Turnover rates have been the most consistent major associated with job satisfaction. The potential negative consequences of employee turnover in terms of the impact of organizations. Negative effects of job turnover can include: increased costs to recruit, select and train new employer; demoralization of remaining employees; decreased social relationships among employees; negative public relations; disruption of a hi-fi and two-day activities; and decreased organizational possibilities to pursue growth strategies. In fact, several researchers reported a significant relationship between absenteeism and job satisfaction.

According to Lawler (1977), “the research evidence clearly shows that employee's decisions about whether they will go to work on any given day and whether they will quit as affected by their feelings of job satisfaction. All the literature reviews on the subject have reached the same conclusion. The fact that present satisfaction influences future absenteeism and turnover clearly indicates that the commercial direction is from satisfaction to behavior.”

The literature also reveals that there is a coalition chip between job satisfaction and variables such as achievement, recognition, the word itself, responsibility, advancement, policy and administration, supervision, salary, interpersonal relations, working conditions, EH, Ted Newell, educational level, job activities, and gender.

The Purpose of the Study

The purpose to choose this topic is to analyze the importance of job satisfaction in Multi National Companies (MNCs). The reason to go for MNCs is the increase in the shift over of the employees for future growth. The shifting, thus, includes the satisfaction in the given job role. Through my research, I will try to analyze the causes and effect relationship between the employee and the factors behind job satisfaction in a given MNC.

Aim of the Study

The main aim of the study is to investigate the remains leading to negative and positive job satisfaction in a MNC.

The Objectives of the Study

The key objectives of the chosen topic are:

1. Estimating the causes of employee attitudes.

2. Adjudging the results of positive or negative job satisfaction

3. Measuring the employee attitude

4. To assess facet-specific levels of job satisfaction

5. To measure general job satisfaction,

Literature Review

There are several reasons for studying job satisfaction. “Organizations measure job satisfaction primarily because of its presumed direct relationship to the short-term goals of cost reduction through increased individual productivity and reduced absenteeism, errors, and dissatisfaction has been found to be related to job turnover, absenteeism and tardiness.”

Turnover rates have been the most constraints measure associated with job satisfaction (Atchison & Lofferts, 1972; Brayfield & Crockett, 1955l Dawis & Lofquist, 1981). Mowday (1984) recapitulate the probable pessimistic significance of employee turnover in terms of the impact on organizations. There are various impacts of pessimism in job satisfaction on the turnover of the company such as:

* Increase in the recruitment cost.

* Recruiting new employees and then training them as well.

* It can lead to reduced social relations ships among employees.

* No or only few public relations.

* Reduction in company's prospects which can hamper the growth.

According to Lawler (2005), “the research evidence clearly shows that employees' decisions about whether they will get to work on any given day and whether they will quit are effected by their feelings of job satisfaction. The fact that present satisfaction influences future absenteeism and turnover clearly indicates the causal direction is from satisfaction to behavior”.

There is a correlation between job satisfaction and variables such as achievement, recognition, the work itself, responsibility, advancement, policy and administration, working conditions, supervision, job activities and gender.

Research Methodology

Saunders et al (2005) “Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure”.

The research to be followed is a step-by-step process. This makes the entire research process systematic. Only primary research shall be used to draw inferences. The sources used shall be of international repute and will be trustworthy. The main source will be case study and also some books, journals, articles and publications including Internet sources.

Literature review

Job satisfaction in regards to one's feeling or state of mind regarding nature of their work. Job can be influenced by variety of factors like quality of one's relationship with their supervisor, quality of physical environment in which they work, degree of fulfillment in their work, etc.

Positive attitude towards job are equivalent to job satisfaction where as negative attitude towards job has been defined variously from time to time. In short job satisfaction is a person's attitude towards job.

Job satisfaction is an attitude which results from balancing & summation of many specific likes and dislikes experienced in connection with the job- their evaluation may rest largely upon one's success or failure in the achievement of personal objective and upon perceived combination of the job and combination towards these ends.

According to pestonejee, “Job satisfaction can be taken as a summation of employee's feelings in four important areas.” These are:

1. Job-nature of work (dull, dangerous, interesting), hours of work, fellow workers, opportunities on the job for promotion and advancement (prospects), overtime regulations, interest in work, physical environment, and machines and tools.

2. Management- supervisory treatment, participation, rewards and punishments, praises and blames, leaves policy and favoritism.

3. Social relations- friends and associates, neighbors, attitudes towards people in community, participation in social activity socialibility and caste barrier.

4. Personal adjustment-health and emotionality.

Job satisfaction is an indicator of employee productivity and employee behavior at work. This may include inter employee relations, pro-activeness of employee, employee absenteeism & no. of feedbacks from employees. These all factors are a direct measure of employee satisfaction of the job. The direct correlation has been established by earlier researchers and moreso there is logical evidence to it in any business or industry.

The higher levels of job satisfaction is evident in an organization through lower absenteeism rates, low employee turnover, high employee productivity , proactively level of employees, labor unrest issues and participation in managerial decisions. Obviously, every organization desires for higher levels of employee job satisfaction; however it is a long drawn process with continuous improvement and direct focus from the senior leadership team of the organization.

Job satisfaction cannot be used interchangeably with organizational morale; which the possessions of feeling have being accepted by and belonging to a group of employees through adherence to common goals and confidence in desirability of these goals.

Morale is the by-product of the group, while job satisfaction is more an individual state of mind.


Different authors give various definitions of job satisfaction. Some of them are taken from the book of D.M. Pestonjee “Motivation and Job Satisfaction” which are given below:

As per Weiss, “Job satisfaction is defined as a pleasurable, emotional, state resulting from appraisal of one's job. “An effective reaction to one's job.”

For Blum and Naylor, “Job satisfaction is general attitude, which is the result of many specific attitudes in three areas namely”:

1. Precise occupation features.

2. Personal distinctiveness

3. Group association exterior from the work

According to Glimmer, “Job satisfaction is defined, as it is result of various attitudes the person hold towards the job, towards the related factors and towards the life in general.”

Job satisfaction is defined as “any contribution, psychological, physical, and environmental circumstances that cause a person truthfully say, I am satisfied with my job.”

Mr. Smith stated, “Job satisfaction is defined, as employee's judgment of how well his job on a whole is satisfying his various needs”

According to Locke, “Job satisfaction is defined as a pleasurable or positive state of mind resulting from appraisal of one's job or job experiences.”


The term job satisfaction was brought to lime light by hoppock (1935). He revived 35 studies on job satisfaction conducted prior to 1933 and observes that Job satisfaction is combination of psychological, physiological and environmental circumstances. That causes a person to say. “I m satisfied with my job”. Such a description indicate the variety of variables that influence the satisfaction of the individual but tell us nothing about the nature of Job satisfaction.

Job satisfaction has been most aptly defined by Pestonjee (1973) as “a job, management, personal adjustment & social requirement. Morse (1953) considers Job satisfaction as dependent upon job content, identification with the co., financial & job status & priding group cohesiveness.”

One of the biggest preludes to the study of job satisfaction was the Hawthorne study. These studies (1924-1933), primarily credited to Elton Mayo of the Harvard Business School, sought to find the effects of various conditions (most notably illumination) on workers' productivity.

Hawthorne Studies

It is considered to be one of the best researches done on the job satisfaction. It was conducted by Mayo, Roethlisberger & Dickson during the late 1920s and early 1930s at the Western Electric Company. Western Electric Management enlisted the help of Harvard business School professor is Elton Mayo, F.J Roethlisberger, and William Dickson, to help increase the output of workers assembling telephone release. The research started out as an investigation of the effects of physical working conditions on worker productivity, but ended up very differently.

Mayo, Roethlisberger & Dickson originally begin experimenting with the amount of lighting, expecting that productivity would rise as elimination increased to an optimum level. However, the hypothesis that productivity would write just as elimination increased to an optimum level was strongly disapproved why, after several experiments in large departments of the plant, it was discovered that changes in productivity occurred quite independently of B level of elimination.

Mayo, Roethlisberger & Dickson then started experimenting by introducing rest pauses of different lengths and different frequencies during the work day, supplying coffee breaks at various points in the day, and shortening the length of the world today at the work week. The results of the second part of the experiment were more amazing there was an upward trend in output, regardless of the introduction or withdrawal of rest periods, lunches, coffee breaks, shorter workdays, or shorten workweeks. Furthermore, avoid the experiment ended after a year, and the original conditions of work were restored in all previous privileges withdrawn,” the daily and weekly output rose to our point higher than at any other time.” (Mayo, 1933, pp.62-63)

In addition, morale among the relay assembly room workers improved dramatically. There was a sharp increase in the amount of socializing among workers after ours. Moreover, absenteeism decreased 80% (Roethlisberger & Dickson 1939). According to Dawis & Lofquist (1981),” the Hawthorne studies have been credited with limiting research into the causes of job satisfaction and dissatisfaction.”

These researches eventually illustrated that original alterations in job situations provisionally enhanced efficiency (called the Hawthorne Effect). It was later found that this increase resulted, not from the new conditions, but from the knowledge of being observed.

This finding provided strong evidence that people work for purposes other than pay, which paved the way for researchers to investigate other factors in job satisfaction.

Scientific management (aka Taylorism) also had a significant impact on the study of job satisfaction. Frederick Winslow Taylor's 1911 book, Principles of Scientific Management, argued that there was a single best way to perform any given work task. This book contributed to a change in industrial production philosophies, causing a shift from skilled labor and piecework towards the more modern approach of assembly lines and hourly wages.

The initial use of scientific management by industries greatly increased productivity because workers were forced to work at a faster pace. However, workers became exhausted and dissatisfied, thus leaving researchers with new questions to answer regarding job satisfaction.

It should also be noted that the work of W.L. Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for Taylor's work.

Some argue that Maslow's hierarchy of needs theory, a motivation theory, laid the foundation for job satisfaction theory. This theory explains that people seek to satisfy five specific needs in life - physiological needs, safety needs, social needs, self-esteem needs, and self-actualization. This model served as a good basis from which early researchers could develop job satisfaction theories.

Maslow's hierarchy of needs

Abraham Maslow, in a classic paper published in 1943, outlined the elements of an overall theory of human motivation. Maslow viewed human motivation in terms of a hierarchy of five needs: psychology: needs; safety need; belonging there is an alarm needs; S team needs; and, the need for self actualization (Maslow, 1970).

According to Maslow, 1970, in the majors are motivated to fulfill whichever need was pre-portend, almost fourfold, for them at a given time. The pre-potency of the meat depended on the EBV twirls current situation and recent experiences. Starting with physical needs, which were most basic, each meat must be at least partially dissatisfied before the Indian visual experience to the desire to satisfy a need at the next higher level. Maslow's need hierarchy is illustrated in 1.

According to Sergiovanni (1984) and Davis and Newstrom (1989), physiological needs more likely to serve as motivators among workers in today's society, as most jobs issue or the fulfillment of physiological needs, such as food and shelter. However, higher level needs (belonging is and loved needs, S team needs, and the need for self actualization) may influence levels of employee motivation (Davis & Newstrom, 1989).

Levels of job satisfaction:

Level can be defined as an extent, major, or degree of achievement. Job satisfaction is a difficult construct a defined. Job satisfaction can be defined generally as the degree to which individuals feel positively or negatively about their jobs.


Ø Job satisfaction is an important indicator of how employees feel about their job and a predictor of work behavior such as organizational, citizenship, Absenteeism, Turnover.

Ø Job satisfaction can partially mediate the relationship of personality variables and deviant work behavior.

Ø Common research finding is that job satisfaction is correlated with life style.

This correlation is reciprocal meaning the people who are satisfied with the life tends to be satisfied with their jobs and the people who are satisfied their jobs tends to satisfied with their life.

Ø This is vital piece of information that is job satisfaction and job performance is directly related to one another. Thus it can be said that, “A happy worker is a productive worker.”

2.4 Job Satisfaction: Importance to worker & organization

Job contentment and work-related achievement are main factors in individual satisfaction, self-worth, sense of worth, and self-development. To the employee, job satisfaction brings a pleasant expressive state that can often lead to a affirmative work attitude. A pleased worker is more likely to be imaginative, flexible, innovative, and dependable.

For the organization, job satisfaction of its workers means a work force that is enthused and dedicated to high quality performance. Augmented output- the quantity and quality of output per hour worked seem to be a by creation of enhanced class of working life. It is vital to note that the literature on the association between job happiness and output is neither definite nor consistent.

On the other hand, research dating back to Herzberg's time (1957) has shown at least low association between high confidence and high efficiency and it does seem logical that more satisfied workers will be likely to add more worth to an organization.

Discontented employees, who are stimulated by fear of loss of job, will not give 100 percent of their effort for a very long time. Although apprehension is a powerful motivator, it is also a brief one, and also as soon as the threat is lifted performance will decline.

Employment satisfaction profits the organization and includes reduction in complaints and grievances, employee absenteeism, work force turnover, and termination; as well as improved regularity and worker morale. Job liking is also linked with a improved work force and has been found to be a good pointer of prolonged existence.

Even though only slight connection has been found amongst job satisfaction and productivity, Brown (1996) writes that few employers have discovered that satisfying or delighting work force is one of the most important prerequisite to satisfying or delighting customers, thus ensuring the growth of “bottom line” of the organization.

Job Satisfaction: Employee's Responsibility

If job contentment is a worker advantage, certainly the employee must be talented to add to his or her own contentment and comfort on the job. The following suggestions can assist an employee to find his or her own satisfaction at job: search for opportunities to display skills and aptitude. This repeatedly leads to even more demanding work and higher responsibilities, with assistant increases in salary and other recognition and rewards.

* Build up extraordinary communiqué skills. Company's value and rewards excellent reading, listening, writing and speaking skills.

* Be acquainted with more. Obtain new work related information and skill that helps you to complete job more economically and effectively. This will take off monotony and often gets one noticed.

* Reveal creativity and initiative. Merits like these are respected by most companies and often come with in recognition as well as improved responsibilities and promotions.

* Initiate teamwork and man management skills. A big part of job related achievement is the aptitude to work well with others to get the job done.

Accept the diversity in people. Accept people with their differences and their imperfections and learn how to give and receive criticism constructively.

See the value in your work. Appreciating the significance of what one does can lead to satisfaction with the work itself. This help to give meaning to one's existence, thus playing a vital role in job satisfaction.

Learn to de-stress. Plan to avoid burn out by developing healthy stress management techniques.


Hoppock, the earliest investigator in this field, in 1935 suggested that there are six major components of job satisfaction. These are as under:

The way the individual reacts to unpleasant situations,

The facility with which he adjusted himself with other person

The relative status in the social and economic group with which he identifies himself

The nature of work in relation to abilities, interest and preparation of worker



Herzberg, mausaer, Peterson and capwell in 1957 reviewed more than 150 studies and listed various job factors of job satisfaction. These are briefly defined one by one as follows:

1. Intrinsic aspect of job

It includes all of the many aspects of the work, which would tend to be constant for the work regardless of where the work was performed.

2. Supervision

This aspect of job satisfaction pertains to relationship of worker with his immediate superiors. Supervision, as a factor, generally influences job satisfaction.

3. Working conditions

This includes those physical aspects of environment which are not necessary a part of the work. Hours are included this factor because it is primarily a function of organization, affecting the individuals comfort and convenience in much the same way as other physical working conditions.

4. Wage and salaries

This factor includes all aspect of job involving present monitory remuneration for work done.

5. Opportunities for advancement

It includes all aspect of job which individual sees as potential sources of betterment of economic position, organizational status or professional experience.

6. Security

It is defined to include that feature of job situation, which leads to assurance for continued employment, either within the same company or within same type of work profession.

7. Company & management

It includes the aspect of worker's immediate situation, which is a function of organizational administration and policy. It also involves the relationship of employee with all company superiors above level of immediate supervision.

8. Social aspect of job

It includes relationship of worker with the employees specially those employees at same or nearly same level within the organization.

9. Communication

It includes job situation, which involves spreading the information in any direction within the organization. Terms such as information of employee's status, information on new developments, information on company line of authority, suggestion system, etc, are used in literature to represent this factor.

10. Benefits

It includes those special phases of company policy, which attempts to prepare the worker for emergencies, illness, old age, also. Company allowances for holidays, leaves and vacations are included within this factor.


Reasons why employees may not be completely satisfied with their jobs:

1. Conflict between co-workers.

2. Conflict between supervisors.

3. Not being opportunity paid for what they do.

4. Have little or no say in decision making that affect employees.

5. Fear of losing their job.



Absenteeism means it is a habitual pattern of absence from duty or obligation.

If there will be low job satisfaction among the employees the rate of absenteeism will definitely increase and it also affects on productivity of organization.

In the above diagram line AB shows inverse relationship between job satisfaction and rate of turnover and rate of absenteeism.

As the job satisfaction is high the rate of both turns over and absenteeism is low and vise a versa.


In human resource refers to characteristics of a given company or industry relative to the rate at which an employer gains and losses the staff.

If the employer is said to be have a high turnover of employees of that company have shorter tenure than those of other companies.


As employees leaves organization due to lack of job satisfaction. Then Human resource manager has to recruit new employees. So that the training expenditure will increases.

Key parameters for Job Satisfaction

1. Training and Job Satisfaction-

Most of the literature in this area has focused on the impact of education and skills on job satisfaction rather than the effect of training as such. The relationship between skill acquisition and job satisfaction is not straightforward. First, there is the distinction between general and specific skills. The portability of general skills may raise job satisfaction as it is easier to move to other jobs where satisfaction is higher. In contrast, specific skills bind the worker to the firm and may reduce satisfaction by creating a barrier to exit as workers will lose a portion of the return on such skills if they move. This leads on to the question of the matching of individual skills and levels of education with job requirements. If workers are mismatched in terms of skill and education requirements, this may lower job satisfaction, as evidenced in the earlier literature.

In one of the few studies to focus on skilling, Allen and van der Velden (2001) differentiated between education and skill mismatches, finding only a weak relationship between the two. Importantly, they found a significant negative relationship between skill mismatch and job satisfaction, while the link between education mismatch and job satisfaction was insignificant.

Training may influence workplace performance directly by raising output per worker, or be measured indirectly through its impact on the wage on the assumption that this is equal to the marginal productivity of labour. However, this will not be the case if there are imperfections in the product or labour markets.

The nature of training has been examined in a number of studies. Thus Barrett and O'Connell (1998) found that specific training had a bigger impact on wages and productivity than general training. Mason et al. (1996) found that both value added and product quality were higher where workers were trained to take charge of several production lines at once. Cosh et al. in a series of papers (1998, 2000 and 2003) found that training had a strong and significant effect on employment growth in small firms when it was undertaken regularly rather than on an ad hoc basis. Especially for larger firms there was also an association between intensity of training and profitability. Training may also stimulate innovation in the workplace (Bartel and Lichtenberg, 1987). Therefore it is doubtful whether different types of training impact either equally or positively on performance.

Finally, training can have an indirect effect on performance if it increases job satisfaction by, for example, making it easier for employees to perform the job or feel more valued (as in Akerlof's 1982 conceptualisation of the labour contract as a gift-exchange). Petty et al.'s 1984 meta-analysis confirms such outcomes. In contrast, if workers feel dissatisfied they may react in a number of ways (Farrell, 1983): through a sense of loyalty they may stick it out; use a voice mechanism (Freeman, 1978, Freeman and Medoff, 1984); neglect their responsibilities to the employer by absence, lateness, striking or reduced effort (Akerlof and Yellin, 1986); or exit (Jovanovic, 1979, Burdett and Mortenson, 1998).

2. Quits and Job Satisfcation-

Until recently there had been relatively few studies by economists examining the role played by job satisfaction in quitting decisions. The main reason for this was the lack of largesample longitudinal data which could be used to identify job satisfaction in one period and job turnover in subsequent periods. Locke (1976) provided an extensive review of the literature in the psychology field, concluding that a negative correlation coefficient between job satisfaction and employee turnover was almost always obtained. However, correlation does not always imply causation and most of the studies cited by Locke used simple univariate analysis. In one of the seminal papers on job satisfaction, Freeman (1978) was one of the first economists to analyse the connection between quits and job satisfaction. Based on panel data from two different US sources, the National Longitudinal Survey (NLS, 1966- 1971) and the Michigan Panel Survey of Income Dynamics (PSID, 1972-73), Freeman showed that job satisfaction was positively and significantly related to the probability of quitting. Moreover, he found not only that job satisfaction was quantitatively more important than wages, but also that the causality ran from job satisfaction to future quitting behaviour. This relationship was confirmed by Akerlof et al. (1988) using data from the NLS Older Men Survey.

3. Job Satisfaction and Absenteeism-

Absenteeism is the term generally used to refer to unscheduled employee absences from the workplace. Absenteeism can impose a number of costs on employer such as the lost output of the absent employee; overtime for other employees to fill in; any temporary help costs incurred; possible loss of business or dissatisfied customers etc (Oi, 1962). In contrast some psychologists have found that absenteeism may be beneficial as it provides some temporary relief from the stresses of work (Steers and Rhodes, 1978). Many authors (e.g. Barmby et al., 1994) have tried to distinguish between voluntary and involuntary absence but this has proven to be difficult. Barmby et al. (1991) report that the majority of sickness absence is in the UK is in spells of five days or less; a finding supported by Labour Market Trends (2003) which showed that of those workers who were absent during a reference week, 40% of workers claimed absence for a period of only one day and approximately 75% claimed absence for 4 days or less. Both these suggest strongly that much absenteeism is on the basis of self certification of illness and this has been cited as support for the voluntary absence hypothesis.

Economists have investigated the issue from both a supply and demand side perspective. On the supply side, Paringer (1983) and Bridges and Mumford (2001) have found that older and single workers were more likely to be absent, especially for men. On the demand-side, Barmby and Stephan, (2000) found that larger firms tend to have higher rates of absenteeism which arises because of their ability to diversify the risk from absence more easily. Workers who are employed on full-time contracts are more likely to be absent than part-time workers (Barmby et al., 1995 and Barmby 2002), whilst Ichino and Riphahn (2005) show that the ending of any probationary period and employment protection legislation both tend to increase absenteeism.

Absenteeism caused by low job satisfaction is consistent with both the involuntary and voluntary absence schools. As noted above, low job satisfaction can stimulate withdrawal (voluntary absence). However, low job satisfaction has also been linked to a range of health issues especially mental/psychological problems (Faragher et al., 2005) and absence in this way can be thought of as involuntary.


There are no. of factors that influence job satisfaction. For example, one recent study even found that if college students majors coinsided with their job , this relationship will predicted subsequent job satisfaction. However, the main influences can be summerised along with the dimentions identified above.

The work itself

The concept of work itself is a major source of satisfaction. For example, research related to the job charactoristics approach to job design, shows that feedback from job itself and autonomy are two of the major job related motivational factors. Some of the most important ingridents of a satisfying job uncovered by survey include intersting and challenging work, work that is not boring, and the job that provides status.


Wages and salaries are recognised to be a significant, but complex, multidimentional factor in job satisfaction. Money not only helps people attain their basic needs butevel need satisfaction. Employees often see pay as a reflection of how managemnet view their conrtibution to the organization. Fringe benefits are also important.

If the employees are allowed some flexibility in choosing the type of benefits they prefer within a total package, called a flexible benefit plan, there is a significant increase in both benefit satisfaction and overall job satisfaction.


Promotional opportunities are seem to be have avarying effect on job satisfaction. This is because of promotion take number of different forms.


Many managers subscribe to the belief that a satisfied worker is necessarily good worker. In other words, if management could keep the entire worker's happy”, good performance would automatically fallow. There are two propositions concerning the satisfaction performance relation ship. The first proposition, which is based on traditional view, is that satisfaction is the effect rather than the cause of performance. This proposition says that efforts in a job leads to rewards, which results in a certain level of satisfaction .in another proposition, both satisfaction and performance are considered to be functions of rewards.

Various research studies indicate that to a certain extent job satisfaction affects employee turn over, and consequently organization can gain from lower turn over in terms of lower hiring and training costs. Also research has shown an inverse relation between job satisfaction and absenteeism. When job satisfaction is high there would be low absenteeism, but when job satisfaction is low, it is more likely to lead a high absenteeism.

What job satisfaction people need?

Each employee wants:

1. Recognition as an individual

2. Meaningful task

3. An opportunity to do something worthwhile.

4. Job security for himself and his family

5. Good wages

6. Adequate benefits

7. Opportunity to advance

8. No arbitrary action- a voice a matters affecting him

9. Satisfactory working conditions

10. Competence leadership- bosses whom he can admire and respect as persons and as bosses.

However, the two concepts are interrelated in that job satisfaction can contribute to morale and morale can contribute to job satisfaction.

It must be remembered that satisfaction and motivation are not synonyms. Motivation is a drive to perform, where as satisfaction reflects the individual's attitude towards the situation. The factors that determine whether individual is adequately satisfied with the job differs from those that determine whether he or she is motivated. the level of job satisfaction is largely determined by the comfits offered by the environment and the situation . Motivation, on the other hand is largely determine by value of reward and their dependence on performance. The result of high job satisfaction is increased commitment to the organization, which may or may not result in better performance.

A wide range of factors affects an individual's level of satisfaction. While organizational rewards can and do have an impact, job satisfaction is primarily determine by factors that are usually not directly controlled by the organization. a high level of job satisfaction lead to organizational commitment, while a low level, or dissatisfaction, result in a behavior detrimental to the organization. For example, employee who like their jobs, supervisors, and the factors related to the job will probably be loyal and devoted. People will work harder and derive satisfaction if they are given the freedom to make their own decisions.


There are various methods and theories of measuring job satisfaction level of employees in the orgnization given by different authers.

List of all the theorise and methods measuring job satisfaction level is given below:


Ø Affect theory(Edwin A. Locke 1976)

Ø Dispositional Theory( Timothy A. Judge 1988)

Ø Two-Factor Theory (Motivator-Hygiene Theory) (Frederick Herzberg's)

Ø Alderfer's Existence, Related and Growth Model

Ø Fulfilment theory

Ø discrepancy theory

Ø Equity Thoery

Ø Equity-discrepancy integration Theory

Ø Job Characteristics Model (Hackman & Oldham)

Ø Rating scale

Ø Personal interviews

Ø Job enlargement

Ø Job rotation

Ø Change of pace

Ø Scheduled rest periods


Edwin A. Locke's Range of Affect Theory (1976) is arguably “the most famous job satisfaction model. The main premise of this theory is that satisfaction is determined by a discrepancy between what one wants in a job and what one has in a job.” Further, the theory states that how much one values a given facet of work (e.g. the degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations are/aren't met. When a person values a particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met), compared to one who doesn't value that facet. To illustrate, if Employee A values autonomy in the workplace and Employee B is indifferent about autonomy, then Employee A would be more satisfied in a position that offers a high degree of autonomy and less satisfied in a position with little or no autonomy compared to Employee B. This theory also states that too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker values that facet.


Another well-known job satisfaction theory is the Dispositional Theory it is a very general theory that suggests that people have innate dispositions that cause them to have tendencies toward a certain level of satisfaction, regardless of one's job. This approach became a notable explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers and jobs. Research also indicates that identical twins have similar levels of job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory was the Core Self-evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that “there are four Core Self-evaluations that determine one's disposition towards job satisfaction: self-esteem, general self-efficacy, locus of control, and neuroticism.” This model states that higher levels of self-esteem (the value one places on his self) and general self-efficacy (the belief in one's own competence) lead to higher work satisfaction. Having an internal locus of control (believing one has control over her\his own life, as opposed to outside forces having control) leads to higher job satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction


The motivator-hygiene factors duly resulted from the research of Herzberg,Mausner, and Snyderman in 1959. Herzberg et al (1959) found that respondents in the study identified different things as sources of work satisfaction and called them shop such as fires or motivator factors. On the other hand, Herzberg et al (1959) called a job dissatisfied is all hygiene factors to those things that the respondents identified as sources of dissatisfaction.

a. Job dissatisfied years or hygiene factors: “ the factors associated with jocund text, which are aspects of a person's work setting. That is, job satisfaction is leaned more to real people word than to the nature of the work itself.” Herzberg et al (1959) stated that the factors salary, interpersonal relations, supervision, company policy and administration, and physical working conditions were related to conditions surrounding the job rather than the job itself.

b. Jobs satisfy years or motivator factors: “ the factors related to job content: what people actually do in their work” Herzberg et al (1959) found that the factors of achievement, recognition, the work itself, responsibility, and advancement were highly interrelated and contributed to good feelings about the job. The factors(achievement, recognition, the work itself, responsibility, and advancement) focused on internal disk aspects of the job rather than the context in which the job was performed.

Herzberg extended the work of Maslow and developed a specific duty of job satisfaction.Herzberg conducted a widely reported motivational study on accountants and engineers to investigate what people wanted from their jobs. Herzberg used to the critical incident a matter of obtaining data for analysis. Respondents were asked to describe a time when they felt particularly good about their jobs and a time when they felt particularly bad. Job-related factors were divided into two categories: first-level factors and second-level sectors.

First high-level factors were defined as objective aspects of a particular situation which led to positive or negative perceptions about the job.

Second-level factors were in response to first high-level factors. Second-level factors occurred when the world can subjectively analysed the first-level fact is to deter mined the relationship between a person's value system and attitude toward the job.

Bowen (1980,pp. 13-14) summarised the following first-level factors identified by Herzberg, Mausner, and Snyderman (1965):

recognition-acts of notice, place, or blame supplied by one or more superiors, Pearce, cliques, management persons, clients, and/or did general public.

Achievement-accomplishment of endeavours including instances wherein failures were incurred. Similarly, instances were included wherein neither the success or failure is incurred.

Possibility of growth-whether a change in status was possible irrespective of the fact that the change could we upward or downward in status.

Advancement-designated an actual change in job status.

Salary-all sequences of events in which compensation plays a major role.

Interpersonal relations-relationships involving superiors, subordinates, and the years.

Supervision-the supervisor's willingness or unwillingness to delegate responsibility and willingness to teach subordinates.

Responsibility-satisfaction derived from being given control of personal work or the work of others and/or new job responsibility.

Company policy and Administration-events in which some or all aspects of the company bird related to job satisfaction.

Working conditions-physical working conditions, the facilities, and the quantity of word as related to job satisfaction.

The work itself-the actual job performance as it related to job satisfaction.

Factors in personal life-the influence of the job in terms of personal life off-the-job was to

Status-prestige associated with a particular position.

Job security-10 new and job stability may shirt as they affect one's position with the company.

Alderfer's Existence, Related and Growth Model

The most recent extension of the Herzberg and Maslow glories of job satisfaction came from the work of Clayton Alderfer (1972). Alderfer formulated and need category model that was more in line with the existent empirical evidence. Similar to Maslow and Herzberg, Alderfer perceived that there was value in categorising needs and there was a basic distinction between lower-order needs and hired-order needs.

Alderfer's existence, relatedness, and growth model was based upon three code needs that humans are attempted to meet: existence needs; relatedness needs; and growth needs. Existence needs include all of the material and physiological needs, such as hunger, thirst, salary, and physical world conditions. Relatedness needs pertain to relationships with significant people, including co-workers, supervisors, and subordinates. Growth needs related to a person's desire to become a creative and productive individual.

Alderfer suggested more of a container of needs than hierarchical levels or two factors of prepotency needs. Unlike Maslow and Herzberg, Alderfer to be fulfilled before high-level mead was motivated all that deprivation was the only way to activate and need.

Fulfilment story

The origin of the fulfilment story was most frequently associated with Schaffer (1953), who postulated a relationship between me dissatisfaction and job satisfaction. Fulfilment Yury was based upon the assumption that job satisfaction was a function of the degree to which a job provided the worker with outcomes that are valued by the workers. “Researchers who have adopted the fulfilment approach major people's satisfaction by simply asking how much of a given face it or outcome they are receiving” (Lawler,1977, pp.355)

discrepancy theory

Discrepancy Curie represented an attempt to take personality differences into account. Discrepancy purists argued that job dissatisfaction resulted when a difference existed between the actual outcome a person received and some other outcome level. However, the interpretation of other outcome level was debated among theorists (Lawler, 1977). For some purists, outcome level was back with a person expected to receive (Lawler, 1977). Discrepancy Curie did not provide a clear definition of the ideal outcome to be considered. However, the discrepancy between the real and expected levels of outcome chosen for comparison provided an index of satisfaction.

Equity Thoery

Equity Theory assumed that “ satisfaction is determined by the perceived ratio of what a person receives from the job relative to what a person puts into the job” (Lawler, 1977). According to the Whitley Curie, dissatisfaction could result from Eden under-compensation or over-compensation. Under compensation could lead to perceptions of unfair treatment, while over-compensation could create feelings of guilt.

Equity-discrepancy integration Theory

Lawler, (1973) build a model of job satisfaction by integrating the equal pay and discrepancy approaches. Lawler's model provided an outline of the conditions that lead to worker satisfaction. The theory assumed that the same physiological processes operated to determine satisfaction, with a range of such job factors as p, supervision, and satisfaction with the word itself. Lawler noted that when satisfaction was based upon the discrepancy between how much was wanted and how much was received, the “want” aspect of the equation was aspirational, and thus removed a job satisfaction from the context of the job and the situation. The outcome level that employees thought they should receive from their job, rather than what they wanted, was the appropriate knees and to be used when the satisfaction of workers was considered.


Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction.

The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc.).

The five core job characteristics can be combined to form a motivating potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an employee's attitudes and behaviors.

A meta-analysis of studies that assess the framework of the model provides some support for the validity of the JCM.


In this method of measuring job satisfaction the comparision between various orgnizational terms and conditions at managerial level and also the orgnization at a large.


1. Management has a clear path for employee's advancement

2. Decisions are made keeping in mind the good of the employees

3. Management is extremely fair in personal policies

4. Physical working conditions are supportive in attaining targets

5. I nnovativeness is encouraged to meet business problems.


1. I feel I can trust what my supervisor tells me

2. My supervisor treats me fairly and with respect

3. My supervisor handles my work-related issues satisfactorily

4. I get frequent appreciation of work done from supervisors

5. I get enough support from the supervisor

6.Individual initiative is encouraged


1. Overall I am satisfied with the company's compensation package

2. I am satisfied with the medical benefits

3. I am satisfied with the conveyance allowance

4. I am satisfied with the retirement benefits

5. I am satisfied with the reimbursement of the expenses as per the eligibility

6. I am satisfied with the holiday (vacation) eligibilities


1. Management decisions are Ad Hoc and lack professionalism (reverse scaled)

2. Rules and procedures are followed uncompromisingly

3. My job responsibilities are well defined and clear


1. I have adequate opportunities to learn and grow

2. I get opportunities to handle greater responsibilities

3. My skills and abilities are adequately used at work

From all above we can conclude level of job satisfaction of our employees.


It is one of the most common methods of measuring job satisfaction. The popular rating scale used to measure Job satisfaction is to include:

Minnesota Satisfaction Questionnaires: It helps to obtain a clear picture of pertinent satisfactions and dissatisfactions of employees.

Job Description Index: it measures Job satisfaction on the dimension identified by Smith, Kendall, Hullin.

Porter Need Identification Questionnaires: It is used only for management personnel and revolves around the problems and challenges faced by managers.


Fredrick Hertz berg and his Associates popularized this method of measuring Job satisfaction. It involves asking employees to described incidents on job when they were particularly satisfied or dissatisfied. Then the incidents are analyzed in terms of their contents and identifying those related aspects responsible for the positive and negative attitudes.


This method facilitates an in-depth exploration through interviewing of job attitudes. The main advantage in this method is that additional information or clarifications can be obtained promptly.


The concept of job enlargement originated after World War II. It is simply the organizing of the work so as to relate the contents of the job to the capacity, actual and potential, of workers. Job enlargement is oblivious forerunner of the concept and philosophy of job design. Stephan offers three basic assumptions behind the concept of job enlargement.

Output will increase if

1. Workers abilities are fully utilized

2. Worker has more control over the work

3. Workers interest in work and workplace is stimulated.

Job enlargement is a generic term that broadly means adding more and different tasks to a specialized job. It may widen the number of task the employee must do that is, add variety. When additional simple task are added to a job, the process is called horizontal job enlargement. This also presumably adds interest to the work and reduces monotony and boredom.

To check harmful effects of specialization, the engineering factors involved in each individual job must be carefully analyzed. Perhaps, the assembly lines can be shortened so that there will be more lines and fewer workers on each line. Moreover, instead of assigning one man to each job and then allowed to decide for himself how to organize the work. Such changes permit more social contacts and greater control over the work process.


Job rotation involves periodic assignments of an employee to completely different sets of job activities. One way to tackle work routine is to use the job rotation. When an activity is no longer challenging, the employee is rotated to another job, at the same level that has similar skill requirements.

Many companies are seeking a solution to on-the-job boredom through systematically moving workers from one job to another. This practice provides more varieties and gives employees a chance to learn additional skills. The company also benefits since the workers are qualified to perform a number of different jobs in the event of an emergency.


Anything that will give the worker a chance to change his pace when he wishes will lend variety to his work. Further if workers are permitted to change their pace that would give them a sense of accomplishment.


Extensive research on the impact of rest periods indicates that they may increase both morale and productivity. Scheduled rest periods bring many advantages:

They counteract physical fatigue

They provide variety and relieve monotony

They are something to look forward to- getting a break gives a sense of achievement.

They provide opportunities for social contacts.

Multinational Companies

A multinational corporation (MNC) or transnational corporation (TNC), also called multinational enterprise (MNE), is a corporation or enterprise that manages production or delivers services in more than one country. It can also be referred as an international corporation.

This often results in very powerful corporations that have budgets that exceed some national GDPs. Multinational corporations can have a powerful influence in local economies as well as the world economy and play an important role in international relations and globalization. The presence of such powerful players in the world economy is reason for much controversy.



This section deals with the appropriate choice of research method which is suitable for the given study and shall be useful in reaching to the conclusion accurately and effectively.

Research Process

“The marketing research always deals with the systematic process of research for given topic. In anyresearch, it becomes necessary to outline the framework according to the research question and demand. The outline should effect the approach towards the conclusion and thus, help in taking out the conclusion. Proper identification, collection, analysis and distribution of essential information required for the research work.” (Yin, 2004)

After this procedure the data collected for the study becomes relevant and can be analyzed accordingly. The research process for my study has been shown below:

Research Design

“The research design is prepared with the aim of providing the proper way of research with respect to the study. This makes it important to clearly define the research design, which should be in order as it is required. However, the research on a particular topic can be done in many ways but for researcher it is more important to take out the best and suitable among these methods”(Walonick, 2003).

Approach of the Study

“There are two types of research strategies: qualitative and quantitative approaches “(Holme and Solvang 2001, p. 84). “The purpose of a qualitative approach is to gain a deeper understanding and description of a problem, through gathering and analysis of detailed data of ideas, feelings and attitudes. It is conducted through deep interviews in one or a limited number of companies in order to obtain comprehensive information” (Tull and Hawkins 2003, p. 100).

Research Strategy

Yin (2004) states that “the selection of the research strategies that can be utilized depends on three distinct conditions”, these are;

* Proper understanding of research question of the study.

* The conclusion to be obtained from the research method.

* The key focus of study should not be diverted.

“To choose among the right research strategy, it is important to understand the research question of the study. Secondly, the author shall consider the environment and the conclusion to be obtained from the research work. Thirdly, the research strategy should accomplish the provided target of the research. In this section all the research questions posed begin with how the research is intended to be organized. The alternative research strategies available to be implemented include surveys and case studies. Hence, to take out the proper implications of the research done through selected research strategy, it becomes compulsory to choose the suitable methodology so as to focus on the main research rationale and question” (Yin 2004).

For my research I have opted for the multiple data collection methods i.e. case study and questionnaire. The detail description of this has been given in the next section.

Data Collection Method

There are broadly two distinctions of data, namely: Primary & Secondary data. Primary data is considered to be the first hand investigation which enables the better understanding of the research done. It involves collection of data using forms, interviews, group discussions etc.The secondary method of research is considered to be easy as compared to primary data because the data is taken form already existed sources and researches done. The method involves sourcing of data from articles, white papers, internet media, print media, journals, existing research articles on the same topic and other reliable sources.

Data Analysis

“Data analysis is the most critical part in carrying any form of research. The data analysis part involves complete knowledge and understanding of the research goal to begin with. The analysis of the data needs to be carried in a structured format. Data analysis can be done on quantitative or qualitative basis. The quantitative data analysis involves use of statistical tools like SPSS, Minitab etc , wherein the data collected over a length of time or events needs to be organized in a particular format and using the statistical methods, the data is presented in its understandable form. This method is more exact and provides with accurate analysis of the past data which can be spread out for future predictions or correlations “(Helen 2007).

Case Study Research Design

The case studies taken for this research are collected from the various banks, but the name cannot be disclosed due to compliance issues. I have given four case studies which has helped in reaching to the conclusion regarding


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