A survey of the relationship between job satisfaction and organisational performance of companies listed on the Nairobi stock exchange, Kenya
Abstract
The study sought to establish the relationship between job satisfaction and organizational
performance in firms listed on the Nairobi Stock Exchange. The objective of the study
therefore was to investigate and document this relationship.
The study used structured questionnaire on job satisfaction and secondary data derived
from income statements to compute financial ratios which were the basis of the study.
The ratios analyzed were Earnings per Share (EPS) and Return on Assets (ROA).
On the levels of job satisfaction, the majority of the respondents indicated that employees
do their job well and expect to be promoted to a job with more prestige and salary.
It was also found that majority of employees prefer to be involved in decision making.
On whether or not they were satisfied with their job, it was found that 31% were satisfied
while 69 were not.
The regression analysis for firm performance and job satisfaction showed that job
satisfaction explains 8.7 % of the variance in the performance as measured by both the
EPS and ROA. Beta coefficients were not significant at p < 0.05, implying that job
satisfaction does not influence performance of listed firms as measured by return on
assets and return on equity. Consistent with earlier studies, for example, by Brayfield and
Crockett (1955), this study found little evidence of any simple or appreciable relationship
between job satisfaction and organizational performance. The study however, has shown
that teamwork, employee involvement and pay significantly affect productivity. It is,
therefore, prudent that companies listed in the Nairobi Stock Exchange adopt policies that
encourage employees' participation, teamwork and equitable pay structure to ensure
growth and productivity.
The study identified some areas for further research including need to conduct a study on
relationship between job satisfaction and performance in different sectors and also need
to look into factors which lead to improved financial performance other than job
satisfaction. Further there is need to carry out a study on unlisted firms to see if it will
yield same results.
Citation
Masters of business administrationSponsorhip
University of NairobiPublisher
School of business,University of Nairobi