Employee Job Satisfaction and Business Performance: The Mediating Role of Organizational Commitment

2021 ◽  
pp. 097226292098594
Author(s):  
Mir Rouf Ahmad ◽  
Rameez Raja
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Structural Equation ◽  
Business Performance ◽  
Banking Sector ◽  
Retail Banking ◽  
Commercial Banking ◽  
Employee Job Satisfaction ◽  
Northern India ◽  
Research Survey

Purpose: The aim of this research article is to scrutinize the influence of employee job satisfaction on organizational commitment and business performance in the context of retail banking sector in northern India. Design/methodology/approach: A research design of quantitative in nature was used via a structured questionnaire on a sample of 440 Indian commercial bank employees. Research hypotheses were tested by using the structural equation modelling (SEM) technique to evaluate and test the proposed model. Findings: The result of the present study confirms that all facets of job satisfaction affect the satisfaction of employees significantly and, thus, influence the employee’s organizational commitment and business performance, respectively. The significance of the indirect path of employee job satisfaction on business performance through organizational commitment has also been tested with the Sobel test, which exhibited significant results. Research implications: This study provides insight into the influence of employee job satisfaction on the organizational commitment and business performance in the Indian commercial banking context in particular, which could benefit management and policymakers as well as other enterprises operating in the same segment. The results suggest that employee job satisfaction strongly contributes to employees’ organizational commitment and business performance. Therefore, organizations require that their employees must be contented and pleased with what they do. Originality/value: This research study contributes one more brick to the existing body of knowledge by investigating the casual relation of employee job satisfaction, and organizational commitment as a mediator with business performance, as these causal relations with business performance are very scarce in the context of commercial banking context. Research limitations: This research survey was restricted to commercial banks operating only in northern India. Thus, it limits the generalizability of the results for the context specified only.

Influencing dynamics of culture and employee factors on retail banks’ performances in a developing country context

2016 ◽  
Vol 39 (5) ◽  
pp. 599-628 ◽  
Author(s):  
Mohammed-Aminu Sanda ◽  
John Kuada
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Organizational Performance ◽  
Developing Country ◽  
Banking Sector ◽  
Retail Banking ◽  
Content Type ◽  
Employee Job Satisfaction ◽  
Employee Characteristics ◽  
Retail Banks

Purpose This paper aims to investigate the influencing dynamics of culture (national and organizational), employee characteristics, employee job satisfaction and organizational commitment in determining the organizational performances of firms in the retail banking sector in a developing country such as Ghana. Design/methodology/approach A conceptual framework linking national and organizational cultures to employees’ job satisfaction, job characteristics, organizational commitment and organizational performance was developed, and their measurement scales were adapted to guide the empirical investigation. Data were collected using a questionnaire filled in by 300 employees in nine retail banks in Ghana. The results were first analyzed by carrying out data reduction of the measured scales by using the Statistical Package for the Social Sciences-based factor analysis approach. The reduced data obtained from the factor analysis were then analyzed for model goodness fit by using the Analysis of Moment Structures-based structural equation modeling approach. Findings Effective organizational performance of retail banks in Ghana is directly influenced by the relationships among organizational culture, employee job satisfaction and organizational commitment. Research limitations/implications The study sample was drawn from a single sub-sector of the Ghanaian economy. Replications and extensions of the study in different sectors that are experiencing high growth will help test the robustness and generalizability of the findings. Practical implications The study provides empirical knowledge that could be used to understand the influencing interrelationships among organizational culture, employee job satisfaction and organizational commitment on the organizational performances of retail banking firms in a developing country context. Originality/value The study adds to the literature as one of the most comprehensive studies of the links between culture, job satisfaction, employee characteristics and organizational commitment toward organizational performance within the banking sector in Ghana to date.

scholarly journals Nexus among Trust, Job Satisfaction, and Affective Organizational Commitment: A Developing Country Perspective

2021 ◽  
Vol 4 (1) ◽  
pp. 67-78
Author(s):  
Atif Ali Gill ◽  
Riaz Hussain Ansari ◽  
Muhammad Waseem Tufail
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Developing Country ◽  
Social Exchange ◽  
Structural Equation ◽  
Banking Sector ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Affective Organizational Commitment

The organizational commitment of employees plays a vital role in the success of any business. In the era of competition, companies are struggling to retain the employees committed to the organizations. There is a scarcity of research to investigate the factors that influence effective organizational commitment in a developing country. The researcher conducted a survey to collect data from employees working in the banking sector of Pakistan. The present study utilized the convenience sampling method to get responses. A total of 300 questionnaires were distributed, from which 215 responses were received, where 15 questionnaires were found partially filled, which were discarded for further analysis. The 200 questionnaires proceeded for statistical analysis using the partial least square structural equation modeling (PLS-SEM) technique. The software of SmartPLS ver 3.0 was used to analyze the significance of hypotheses. Current research revealed the significant relationship between trust and affective commitment mediated through job satisfaction. The present study provides several theoretical and practical implications by extending social exchange theory and delivering guidelines to banks' human resource departments to build trust among employees, and gauging job satisfaction to increase affective organizational commitment.

scholarly journals PENGARUH PERCEIVED ORGANIZATONAL SUPPORT, KEPUASAN KERJA, DAN KOMITMEN ORGANISASI TERHADAP INTENTION TO QUIT PADA GENERASI Y (MILLENNIALS)

2019 ◽  
Vol 2 (1) ◽  
pp. 16-33
Author(s):  
Endhar Priyo Utomo
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Generation Y ◽  
Organizational Support ◽  
Structural Equation ◽  
Perceived Organizational Support ◽  
Banking Sector ◽  
Intention To Quit ◽  
Equation Modeling ◽  
Analysis Tool

This study aims to analyze what factors can reduce the level of intention to quit on generation Y banking employees by increasing variables perceived organizational support, job satisfaction, through organizational commitment. From the existing research problems explain how to reduce the level of intention to quit for Generation Y employees in the banking sector in the city of Semarang.The number of samples in this study were 130 respondents but those who were willing to fill out questionnaires were 120 respondents. The sample determination was determined by the Non Probability Sampling method. The sample in this study is generation Y employees in the banking sector in Semarang City. The analysis tool used in this study uses Structural Equation Modeling (SEM).The results in this study indicate that the influence of the variable Perceived Organizational Support, Job Satisfaction on Organizational Commitment is positive and significant. The second result in this study shows that the Perceived Organizational Support, Job Satisfaction with Intention to Quit is negative and significant. The third result in this study shows that the Organizational Commitment to Intention to Quit is negative and significant..

Investigating relationships between internal marketing practices and employee organizational commitment in the foodservice industry

2015 ◽  
Vol 27 (7) ◽  
pp. 1618-1640 ◽  
Author(s):  
Hyun-Woo Joung ◽  
Ben K. Goh ◽  
Lynn Huffman ◽  
Jingxue Jessica Yuan ◽  
James Surles
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Turnover Intention ◽  
Structural Equation ◽  
Internal Marketing ◽  
Equation Modeling ◽  
Content Type ◽  
Employee Job Satisfaction ◽  
Study Results ◽  
Foodservice Industry

Purpose – The purpose of this study is to investigate the relationships between internal marketing practices, employee job satisfaction, organizational commitment and turnover intention in the foodservice industry. Design/methodology/approach – The target population was employees who were currently working at a restaurant in the USA. All respondents were recruited from different states for the generalization of the study results. A confirmatory factor analysis validated the measurement model, and subsequently, structural equation modeling tested the proposed model. Findings – Three internal marketing practices – vision, development and rewards – were good indicators for predicting employee job satisfaction, and two internal marketing practices – development and rewards – in addition to job satisfaction were significant predictors for employee organizational commitment. Finally, the findings indicated that job satisfaction and affective commitment had a significant impact on lowering employee turnover intention. Research limitations/implications – In further research, more internal marketing practices – such as employee motivation, customer orientation, sharing information, employee empowerment – can be added to the model to increase employee job satisfaction and organizational commitment. Practical implications – Foodservice operators should focus on internal marketing practices to have satisfied employees who, in turn, are more likely to deliver high service quality to customers. Originality/value – This study has not only extended the influential scope of the internal marketing theory to organizational commitment, but has also proposed the antecedents of organizational commitment (i.e. internal marketing practices and employee job satisfaction) and clarified the relationships among them.

The role of human resource management practices and employee job satisfaction in predicting organizational commitment in Saudi Arabian banking sector

2020 ◽  
Vol 40 (7/8) ◽  
pp. 529-541 ◽  
Author(s):  
Fatma Cherif
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Banking Sector ◽  
Saudi Arabian ◽  
Content Type ◽  
Employee Job Satisfaction ◽  
Hrm Practices

PurposeThe purpose of this study was to investigate the role of human resource management and employee job satisfaction in predicting organizational commitment in the Saudi Arabian banking sector.Design/methodology/approachFor the purpose of this study, quantitative survey research was employed. The independent variables are human resource management and employee job satisfaction, while the dependent variable is organizational commitment.FindingsHuman resource management correlated positively with employee job satisfaction and organizational commitment. On the other hand, employee job satisfaction was found to be positively correlated with organizational commitment. The two independent variables made significant individual contributions to the prediction of organizational commitment.Research limitations/implicationsThis study has some limitations. First, convenient sampling method was used to recruit the participants. Therefore, the findings of the study have limited generalizability in other regions and age groups. Second, as a cross-sectional study, there has to be caution in making any generalization of the results. Future researchers should get more respondents from wider geographical location, that is from different bans, private and public. Furthermore, self-report questionnaires were used to collect data from respondents. It is recommended that future researchers use different methods such as personal interview or telephone interview to collect data. This may help get reliable data after clarifying and removing what may be ambiguous.Practical implicationsThe results of this study have corroborated with previous research and confirmed correlations between and among human resource management (HRM), employee job satisfaction and organizational commitment in the Saudi Arabian banking sector. These findings have practical implications. Having high levels of job satisfaction among bank employees will prevent low levels of turnover rate, absenteeism and levels of productivity and increase organizational commitment. HRM practices, on the other hand, help in career development opportunities and hence provide better job opportunities. This study can recommend that to ensure high levels of job satisfaction among employees and enhanced organizational commitment, organizations, especially banks, should emphasize more on HRM practices.Originality/valueThis study could contribute to the literature on HRM, job satisfaction and organizational commitment in the Saudi Arabian banking sector. There is a rapid growth in the banking sector in Saudi Arabia. Therefore, there is an urge for recruiting efficient and experienced human resources (Mizan et al., 2013). This study will contribute to the development of the Saudi Arabian banking sector, which may lead to maintain this sector work effectively that will have a positively impact on the economy of the Saudi society. It also will highlight the nature and importance of the HRM practices for the benefit of the banking sector.

scholarly journals Pengaruh Kepemimpinan Transformasional Dan Kompensasi Terhadap Kepuasan Kerja Melalui Komitmen Organisasi

2018 ◽  
Vol 33 (1) ◽  
Author(s):  
Diansyah Diansyah
Keyword(s):  
Job Satisfaction ◽  
Transformational Leadership ◽  
Organizational Commitment ◽  
Structural Equation ◽  
Positive Influence ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Employee Job Satisfaction ◽  
Inner Model

<p align="center"><strong>Abstrak</strong></p><p>Tujuan penelitian untuk mengetahui pengaruh kepemimpinan transformasional dan kompensasi terhadap kepuasan kerja melalui   komitmen organisasi   pada   PT. Wira Mitra Prima. Metode pengumpulan data dengan menggunakan sensus sebanyak 39 orang sebagai populasi. Analisis data menggunakan <em>Structural Equation Modeling-Partial Least Square</em> (<em>SEM-PLS</em>) dengan menggunakan <em>software</em> SmartPLS versi 3. Tahapan perhitungan PLS menggunakan 2 model yaitu Pengukuran Model (<em>Outer Model</em>) dan Pengujian Model Struktural (<em>Inner Model</em>). Hasil penelitian menunjukkan bahwa kompensasi mempunyai pengaruh yang positif dan signifikan terhadap kepuasan kerja karyawan, kepemimpinan transformasional mempunyai pengaruh yang positif dan signifikan terhadap komitmen organisasi, kompensasi mempunyai pengaruh yang positif dan signifikan terhadap komitmen organisasi,  komitmen organisasi mempunyai pengaruh yang positip dan signifikan terhadap kepuasan kerja karyawan, Selanjutnya kepemimpinan transformasional mempunyai pengaruh yang tidak signifikan terhadap kepuasan kerja karyawan, pengaruh kepemimpinan transformasional terhadap kepuasan kerja karyawan melalui komitmen organisasi adalah  tidak signifikan  begitu pula halnya pengaruh kompensasi terhadap kepuasan kerja karyawan melalui komitmen organisasi adalah juga  tidak signifikan </p><p><strong>Kata Kunci: </strong>Kepemimpinan Transformasional, Kompensasi, Kepuasan Kerja, Komitmen Organisasi<strong></strong></p><p align="center"><strong><em>Abstract</em></strong></p><p><em>The aim of research to determine the effect of transformational leadership and compensation to job satisfaction through organizational commitment at PT. Wira Mitra Prima. </em><em>Data were collected by using the census as many as 39 people as a population.  Methods of data analysis using Structural Equation Modeling-Partial Least Square (PLS-SEM) with software version 3. Stages SmartPLS PLS calculation using the two models namely Measurement Model (Outer Model) and Testing Structural Model (Inner Model). The results showed that the compensation have positive influence and significant impact on employee satisfaction, transformational leadership has a positive influence and significant impact on organizational commitment, compensation has influence positively and significantly related to organizational commitment, organizational commitment has influence positively and significantly related to job satisfaction employee, then transformational leadership has no significant effect on employee job satisfaction, the influence of transformational leadership on employee satisfaction through organizational commitment is not significant so too is the influence of compensation on employee job satisfaction through organizational commitment is also not significant</em><em></em></p><p><strong><em>Keywords:</em></strong><em> Transformational Leadership, Compensation, Job Satisfaction, Organizational Commitment</em></p><strong></strong>

scholarly journals THE INFLUENCE OF PERSONALITY AND ORGANIZATIONAL COMMITMENT AND WORK ENGAGEMENT TO EMPLOYEE SATISFACTION AND EMPLOYEE PERFORMANCE DPRD SAMARINDA CITY

2020 ◽  
Vol 4 (02) ◽  
Author(s):  
Fuad Fakhruddin ◽  
Zainal Ilmi ◽  
Gusti Noorlitaria Achmad
Keyword(s):  
Job Satisfaction ◽  
Data Analysis ◽  
Organizational Commitment ◽  
Work Engagement ◽  
Structural Equation ◽  
Employee Performance ◽  
Positive Influence ◽  
Partial Least Square ◽  
Least Square ◽  
Employee Job Satisfaction

In this study involving Civil Servants in Samarinda City DPRD. In this study, to see the performance of employees used a sample of 82 respondents. The data analysis used by the author is the Structural Equation Model (SEM). Hypothesis testing is done by multivariate analysis carried out through the SmartPLS program. Data analysis through partial Least Square (PLS) is done through two stages, namely: First, Assessing the outer model or measurement model. Second, assess the inner model or structural model. The results showed that Personality had a positive influence on employee job satisfaction, organizational commitment had a positive influence on employee job satisfaction, work engagement gave a positive effect on satisfaction, Personality had a positive influence on employee performance, organizational commitment had a positive influence on employee performance, work engagement provide a positive influence on employee performance, job satisfaction has a positive influence on the performance of employees of the Samarinda City Regional Representative Council. Keywords: Personality, Organizational Commitment, Work Engagement, Job Satisfaction, Employee Performance

scholarly journals Pengaruh Keadilan Organisasional terhadap Komitmen Organisasi dengan Mediasi Kepuasan Kerja

2020 ◽  
Vol 4 (2) ◽  
Author(s):  
Zulkifli Musannip Efendi Siregar ◽  
Rizki Syahputra ◽  
Siti Lam'ah Nasution
Keyword(s):  
Job Satisfaction ◽  
Structural Equation Modeling ◽  
Organizational Commitment ◽  
Organizational Justice ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Business Success ◽  
Employee Job Satisfaction ◽  
The Relationship

The business success is inseparable from the role of its human resources. Because it is very necessary employees who have a high commitment to work. This study aims to determine the effect of organizational justice, job satisfaction on organizational commitment. This study will also discuss whether job satisfaction can mediate the relationship between organizational justice and job satisfaction. Respondents in this study were employees in the Small and Medium Enterprises (SMEs) industry in Labuhanbatu Regency. We distributed 272 questionnaires and 217 questionnaires were collected. So that the sample in this study were 217 respondents. The collected data is processed using Structural Equation Modeling. The results showed that organizational justice can increase employee job satisfaction and also increase employee commitment at work. Job satisfaction can also mediate the relationship between organizational justice and organizational commitment significantly. It is recommended to increase organizational commitment by increasing employee job satisfaction and also organizational justice.Key Words: Organizational Justice, Job Satisfaction, Organizational CommitmentKemajuan sebuah bisnis tidak terlepas dari peran sumber daya manusianya. Oleh karena sangat diperlukan karyawan yang memiliki komitmen tinggi dalam bekerja. Penelitian ini bertujuan untuk mengetahui pengaruh keadilan organisasional, kepuasan kerja terhadap komitmen organisasi. Penelitian ini juga akan membahas apakah kepuasan kerja dapat memediasi hubungan antara keadilan organisasional terhadap kepuasan kerja. Responden dalam penelitian ini adalah karyawan pada industri Usaha Kecil dan Menengah (UKM) di Kabupaten Labuhanbatu.  Peneliti menyebarkan kuisioner sebanyak 272 kuisioner dan berhasil dikumpul sebanyak 217 kuisioner. Sehingga sampel dalam penelitian ini sebanyak 217 responden. Data yang terkumpul diolah dengan menggunakan Structural Equation Modeling.  Hasil penelitian menunjukkan bahwa keadilan organisasional dapat meningkatkan kepuasan kerja karyawan dan juga meningkatkan komitmen karyawan dalam bekerja. Kepuasan kerja juga dapat memediasi hubungan antara keadilan oranisasional terhadap komitmen organisasi secara signifikan. Disarankan agar meningkatkan komitmen organisasi dengan cara meningkaktan kepuasan kerja karyawan dan juga keadilan organisasional. Kata Kunci  : Keadilan Oragnisasional, Kepuasan Kerja, Komitmen Organisasi

scholarly journals The Effects of Green SCM Implementation on Business Performance in SMEs: A Longitudinal Study in Electronics Industry

2021 ◽  
Vol 13 (21) ◽  
pp. 11874
Author(s):  
Sung Tae Kim ◽  
Hong-Hee Lee ◽  
Seongbae Lim
Keyword(s):  
Job Satisfaction ◽  
Structural Equation ◽  
Business Performance ◽  
Critical Factor ◽  
Electronics Industry ◽  
Operational Efficiency ◽  
Equation Modeling ◽  
Positive Effects ◽  
Employee Job Satisfaction ◽  
Time Gap

The evolution of green supply chain management (GSCM) in small and medium-sized enterprises (SMEs) remains underexplored in the literature. Specifically, this study assesses the changes in the effects of GSCM implementation on employee job satisfaction, operational and relational efficiency, and business performance of SMEs that serve as suppliers to large buying firms. The present study collected survey data from 193 electronics manufacturers in South Korea twice in a seven-year time gap, evaluated the reliability and the validity of individual measures, and employed structural equation modeling (SEM) to test the model hypotheses. The results commonly found in the two studies with the time gap are (1) the positive effects of GSCM implementation on employee job satisfaction and operational and relational efficiency, (2) the positive effects of both operational and relational efficiency on business performance, and (3) the positive relationship between operational efficiency and relationship efficiency. Moreover, the positive effect of employee job satisfaction on business performance is found only in the latter study (Study II). The results suggest that GSCM implementation is a critical factor for SME suppliers to establish sustainable long-term relationships with buying firms in the electronics industry, and it also helps manufacturers improve employee job satisfaction and operational efficiency over time. The present study is believed to enhance an understanding of key factors in association with GSCM that positively influences the business performance of SME suppliers.

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