Employee Satisfaction

Employee Satisfaction



Employee Satisfaction

Abstract

The extant operations management literature has extensively investigated the associations among quality, customer satisfaction, and policies. However, the influence of employee attributes on these performance dimensions has rarely been examined. In this study we investigate the impact of policies on employee satisfaction. Based on an empirical study of 50 employees, we examined the hypothesized relationships among employee satisfaction, service quality, and company policies. Using statistical analysis, we found that employee satisfaction is significantly related to service quality and to benefits. Our analysis suggests that employee benefits are important consideration for HR department to boost employee satisfaction.

Keywords: Employee satisfaction; Service quality; Company policies; Statistical analysis

Table of Contents

Abstract2

1. Introduction3

2. Theoretical background and hypothesis development3

2.1. Theoretical background3

2.2. Development of hypotheses3

2.3. Hypothesis3

3. Methodology3

3.1. Common method variance (CMV)3

4. Data analysis and results3

4.1. Measurement models results3

4.2. Structural models results and hypotheses testing3

5. Discussion and conclusions3

6. Limitations and further research3

References3

Appendix A. Questionnaires and their measurement properties3

Employee Job Satisfaction Questionnaire3

1. Introduction

In response to the pressure of globalization, increasingly competitive markets, and volatile market dynamics, many organizations are actively seeking ways to add value to their services and improve their service quality. Organizations are usually keen on making operational efficiency a priority. Operations management (OM) has emphasized the optimization of operational processes as a means to profitably deliver value to customers and to meet or even exceed customer expectations. Substantial research has been devoted to such topics as designing, managing, and optimizing service delivery systems, with a view to raising service quality and operational efficiency (e.g., [Frei et al., 1999], [Soteriou and Zenios, 1999], [Hill, in press] and [Saccania et al., 2007]). Many firms have enthusiastically applied the operation-centric approach and demonstrated that it is an effective means for improving organizational efficiency. Nevertheless, the impact of human resources on operational systems has often been overlooked (Boudreau et al., 2003). The importance of employee attitudes, such as job satisfaction, employee loyalty, and organizational commitment, and their impacts on operational performance have largely been neglected in the extant OM literature (Boudreau, 2004).

Yet, OM and human resources seem to have a long history of separateness (Boudreau et al., 2003). Although human resources and operations are intimately tied to each other in virtually all business scenarios, the impact of employee attributes on operations systems has remained largely unexplored. The studies of the impact of employee attributes on operations are particularly essential in the service industry where activities of service employees connect organizations to their customers, and operations managers rely heavily on service employees' personal interactions to impress customers ([Chase, 1981], [Heskett et al., 1994] and [Oliva and Sterman, 2001]).

In this research we attempt to address a fundamental question in OM: Does employee benefits and company policies have an impact on the employee satisfaction? For this, we statistically examined the consequences of employee satisfaction in service operations through a survey of 50 employees through a questionnaire.

2. Theoretical background and hypothesis development

2.1. Theoretical background

Research on employee attributes and performance has traditionally resided in the domain of organizational psychology, not ...