Karthik Sambandan ******** Master of business administration The University of Northampton

Submitted in partial fulfillment of the requirements for the degree of

Master of business administration

“A study on Role of Organizational

Strategies In Improving Job Satisfaction Of

Employees”

Module code:

STRM059-SUMAS

Submitted by:

Karthik Sambandan (18400606)

Supervisor:

Dr. Senjuti Goswami

Submission date: 10th October 2018 Date of submission: 10th October 2018

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ACKNOWLEDGMENT

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Abstract

Due to the increasingly competitive nature of businesses, organizations are now looking for better ways to compete both in the local and international scene. This means that these organizations have to be creative when thinking about the tactics that they shall employ in order to ensure that they maintain a competitive edge. Research then realized that focusing on matters such as improving employee output in sales or other results was going about tis the wrong way. This gave rise to the realization that employees are the greatest asset of an organization and motivating them is bound to improve their output. This study sought to establish the role of organizational strategies in improving employee satisfaction. The study was conducted in India with a sample of 120 purposive samples. The study revealed that organizational strategies can play a great role in improving employee satisfaction if at all the job satisfaction strategies were included in the organizational strategies.

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Table of Contents

CHAPTER ONE 6 1.1 BACKGROUND TO THE STUDY 6 1.2 STATEMENT OF THE PROBLEM 8 1.3 OBJECTIVES OF THE STUDY. 9 GENERAL OBJECTIVES. 9 SPECIFIC OBJECTIVES 9 1.4 SIGNIFICANCE OF THE STUDY 9 MANAGEMENT 9 RESEARCHERS IN THE FIELD. 10 CHAPTER TWO: LITERATURE REVIEW 11 2.1 THEORETICAL REVIEW 11 THEORIES ON JOB SATISFACTION 11 CHAPTER THREE: METHODOLOGY 20 3.0 INTRODUCTION 20 RESEARCH DESIGN 20 RESEARCH PARADIGM. 20 RESEARCH PROCEDURES 21 POPULATION AND SAMPLING DESIGN. 21 DATA COLLECTION METHOD 22 DATA COLLECTION INSTRUMENTS. 23

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DATA ANALYSIS METHODS 23 HYPOTHESES OF THE STUDY. 23 ETHICAL CONSIDERATIONS. 24 CHAPTER FOUR: ANALYSIS 25 4.0 INTRODUCTION 25 RATE OF RESPONSE 25 RESPONDENTS’ DEMOGRAPHIC DATA 25 AGE OF RESPONDENTS 26 SEX OF THE RESPONDENTS. 27 THE LEVEL OF EDUCATION OF THE RESPONDENTS. 27 STATISTICAL TREATMENT. 29 HYPOTHESIS 30 CHAPTER FIVE: DISCUSSION AND EVALUATION 32 CHAPTER SIX: CONCLUSION AND RECOMMENDATION 35 IMPLICATIONS OF THE STUDY 36 SUGGESTIONS FOR FUTURE RESEARCH 36 LIMITATIONS OF THE STUDY 37 BIBLIOGRAPHY 39 APPENDIX A 41

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CHAPTER ONE

1. Introduction

1.1 Background to the study

Today’s business environment is highly competitive. This is further exacerbated because of the fact that business now transcends international boundaries and even small local businesses face intense competition from huge multinationals based millions of miles away. In order to understand how exactly to overcome the intense competition, several studies were carried out and it was established that organizations should move away from focusing exclusively on matters such as cost minimization and maximization of output such as sales. It was suggested that focusing on an organization’s human resource, employees in particular, can work miracles for the output of any organization. An organization can be differentiated by the quality of their manpower (Azanza, Moriano & Molero, 2013). It suffices to say that employees within an organization differ greatly in their performance and this is determined by their varying levels of satisfaction, motivation, behavior and several other reasons.

According to Jaksic & Jaksic (2013), job satisfaction is a growing phenomenon in the entire world and subject to a lot of research. This is because most organizations are just now admitting the role that job satisfaction plays in enhancing the output of their employees and the success of these organization in the long run. For that reason, organizations now work very hard to determine and employ strategies that create a motivating work environment and these strategies are determined by various factors. These factors that run to the core of the organization are those such as organizational culture and job satisfaction.

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Sakiru et al., (2013) describes job satisfaction as being contented with ones work. It does not matter whether the worker doesn’t like certain aspects of the job or not, such as the nature of the work of the supervisor. It is then further described in terms of cognitive, affective or behavioral components. The cognitive component focuses on how one evaluate the job. The affective on the other hand is concerned with the emotions and feelings attached to the job. For instance, sample feel really sad or tired of their work, while others look forward to going to work because of the joy it brings. Finally, behavioral is the activities surrounding the feelings towards ones job. How much an organization offers a healthy and motivating work environment is influenced greatly by the extent to which the employees enjoy job satisfaction and for that reason, job satisfaction is one of the reasons which employees perform exemplarily at work. It is assumed that if employees are not satisfied by their jobs, then their duties will be adversely affected (Jaksic & Jaksic, 2013). There is a lot of speculation as to what exactly causes lack of job satisfaction. Research has highlighted factors such as work overload, job conflict, burnout, lack of sufficient remuneration, work-life conflict, and poor communication within the organization as those that contribute majorly to lack of work satisfaction. However, other studies have also highlighted that settling factors such as remuneration by adequately compensating employees may not particularly balance out job satisfaction. To add onto that, these factors are even classified in different categories which are intrapersonal factors which are factors within the employees self, management factors which are factors within the organization and factors outside the organization such as family and social life. Intra persona factors include job autonomy, stress, job conflict and self-efficacy play a great role as drivers of job satisfaction. Management factors include those such as the company’s style of management, the work load given by the superiors, relationship with colleagues and

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superiors and communication within the organization. External factors include clients, the employee’s family and social life (Mafini & Dlodlo, 2014; Sarwar & Abugre, 2013; Sakiru et al., 2013). For that reason, it is clear that an organization’s strategies should be designed in line with all these factors. Organizational strategies are steps or actions that organization intend to undertake in order to achieve its goals. These actions when combined together are known as the strategic plan. These strategies do not just inform the organization’s direction in terms of where the organization expected to be and by when, the strategies also inform how the organization intends to achieve these goals in terms of financial and asset management and even human resource management. An organization’s strategies plays an important role in determining how an organization relates with its employees, how much resources the employees get and how much work the employees have to put in. These strategies emanate from the organization’s mission and vision (Anuar, Ismail & Abdin, 2014).

In order for an organizational strategy to be deemed effective, it should consist of short term targets and plans. These targets and plans are effected by middle management and actualized by employees. Important elements of an organizational strategy are the resources, the company’s competency and the scope (Anuar, Ismail

& Abdin, 2014). An organization’s strategy stands to improve the employee’s performance if all the elements of the strategies improve job satisfaction. 1.2 Statement of the Problem

Job satisfaction has received sufficient attention by both researchers and managers. When an organization’s employees are satisfied, not only is the organization better placed to retain those employees, but the organization’s performance is also significantly improved. Employees are the biggest reason for an organization’s

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success and longevity and better satisfied employees will improve the productivity of the said organization and lead to the realization of the organization’s visions and purpose.

Studies in the field have primarily focused on the factors that influence positively or contribute to job satisfaction. These studies however do not evaluate the role that an organization’s strategies lay in terms of improving job satisfaction of their employees. Additionally, these studies are mostly based on western organizations and very few have been carried out in India where economic social and cultural differences exist.

1.3 Objectives of the study.

General Objectives.

The main objective of this study was to establish the role of organizational strategies in improving job satisfaction of employees in India. Specific Objectives

1) Define organizational strategies in line with human resource management. 2) Identify strategies that influence job satisfaction. 3) Determine how an organization can create its strategies to inculcate factors that promote job satisfaction.

1.4 Significance of the Study

Management

The findings of this study will inform the management of organizations in India on the role that their organization’s strategies can play in enhancing job satisfaction of their employees. This study will then prove that when designing organizational strategies, managers need to take into consideration their employees. The findings

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of the study will also guide mangers in organizations that are undergoing a dilemma on how to appropriately satisfy their employees.

Researchers in the Field.

The findings of this study will assist researchers by contributing to the existing body of knowledge in this yet to be wholly explored area in human resource management and strategic management. The suggestions for future research will inform the researchers on the gaps that have not been addressed by other researchers within the field. This study will also improve the researchers understanding on. The relevant theories in this area.

Scope of the Study

This study investigate the role of organizational strategies in improving employee performance across organizations of all natures in India. The study will conclude its findings through interrogating employees in India.

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CHAPTER TWO: LITERATURE REVIEW

2. Introduction

This chapter will outline and lay the foundation of the study. The chapter will discuss the pertinent literature with regards to the role of organizational strategies in improving employee satisfaction. A theoretical review on the subject will be conducted and the past studies on these aspects will be factored in in a bid to highlight the relationship between those studies and this research. Additionally, the chapter shall delve into conducting reviews on the relevant variables in line with the study such as organization structure, reward, training and development and the influence of supervisors and superiors on employee satisfaction. At the end of the chapter, a research gap will have been identified and a conceptual framework showing the relationship between the variables in the study will have been developed. 2.1 Theoretical review

Theories on job satisfaction

Theorists, scholars and researchers have contributed to the field of job satisfaction by developing theories on job satisfaction, The aim of these researchers as opined by Fernandez & Moldogaziev (2015) was to develop a framework to help future scholars to better understand job satisfaction more holistically such as through detailing the factors that affect job satisfaction but also the attitudes towards job satisfaction and the reason job satisfaction has its particular effects. Herzberg’s Motivator-Hygiene Theory.

Theorist Fredrick Herzberg conducted a study that established what it is exactly that people want from their jobs. In that study, the participants had to describe their ideal work situations that made them feel satisfied and the horrible situations that made

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them dissatisfied. The results that were collected were then classified into two categories which were satisfaction and dissatisfaction. The study revealed that the factors or characteristics that were related to job satisfaction were recognition, the job in itself, achievements, responsibilities and growth. The theorist, Herzberg, refers to these factors as ‘motivator factors’. The study also identified factors that were related to dissatisfaction which included working conditions, interpersonal relationships, company policy and administration which were referred to as ‘hygiene’ factors (Yeboah & Abdula, 2016).

According to Miner (2015), this motivator-hygiene theory otherwise known as the two factor theory is an important framework that can assist human resource professionals and organization managers who wish to understand job satisfaction and other related issuers such as performance. Miner avers that the theory is a good reminder that one should not just look at job contents, but holistically explore the work environment in which they work in. For that reason, managers should make it a responsibility to do away with matters that may result in poor job hygiene which are the sources of job dissatisfaction in the workplace and focus efforts on adding factors that will improve job satisfaction factors and add them into their employee’s job content in an effort to improve the chances of job satisfaction. This theory is important to this study because it recognizes that employees have distinct sets of needs with regards to job satisfaction and lack of dissatisfaction and in order to establish the role of organizational strategies, one has to look at them in line with the relevant factors that cause job satisfaction and not interchangeably. Locke’s Value Theory

John Locke, a theorist in this field of study suggests that it is possible to evaluate the impact of the different factors that promote job satisfaction (Judge et al., 2017). With regards to that, once an organization can determine how profound a specific factor

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is and know the value placed on that factor, there is a great shift in job satisfaction. However, the theorist also opined that in events where too much value is placed on a factor there may arise stronger thoughts or experiences of dissatisfaction. In that regard, it is clear that Locke’s theory is not only multifaceted, but also highly specific for every individual. An example of this theory is, taking for instance two workers that have the same duty at the same organization may experience similar levels of job satisfaction but these experiences will manifest in very different ways. While one employee may by influenced by the challenge brought about by the duties he carries out, another employee may be influenced by the variation of the nature of his duties (Locke, 1976). This theory is also important for the study as it guides in the determination of factors that contribute towards the various degrees of job satisfaction.

Dispositional Approach

This theory suggests that job satisfaction is individualized in each person. In other words, it is a personal trait. This approach is supported by the fact that satisfaction becomes more stable over given periods of time and different careers. Some studies have also showed that identical twins will have the same levels of job satisfaction. Dugguh & Dennis, (2014) argue that the four core traits that determine levels of satisfaction are: self-esteem, self-efficacy, locus of control and neuroticism. An individual with high levels of self-esteem and self-efficacy will experience increased job satisfaction. Further people with a locus of control

(believing one is in control of one’s life as opposed to external factors) have better satisfaction. Finally, low levels of neuroticism increases the feeling of job satisfaction.

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Equity Theory

The equity theory is based on a person’s perception on social relationships such as with the employer and other employees. The said person will assess the benefits of the relationship as compared to what they give. They will further compare their ratio with other people’s ratio and determine whether the relationships are equitable. Therefore, if an individual thinks there is inequality between them and other individuals or social groups, they will develop anxiety and stress towards the job. For instance, if one employee receives a pay rise for similar work to another, the one who didn’t get the rise will be stressed (Dugguh & Dennis, 2014). Discrepancy Theory

This theory explains the primary source of anxiety. Any person who feel that they have not performed their duties well will feel anxiety and regret. They will also feel dejected for not meeting their goals. According to this theory, every person learns their responsibilities or what is expected of them in a certain position. Over time, these duties metamorphoses into principles that guide the individual’s life. Once they cannot achieve these duties, anxiety and agitation is the result. On the other hand, when one achieves what is expected, they will receive praise, approval and reward (Dugguh & Dennis, 2014). With regard to job satisfaction therefore, personal set of principles play a vital role in determining whether one will achieve satisfaction or not.

Job Characteristics Model

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Finally, the job characteristic model is a widely used tool to determine the how aspects of a particular job will impact outcomes, including job satisfaction. The model is based on the Motivating Potential Score (MPS). The score is made up not more than five key characteristics of the job. The index is then used to determine how a particular job will affect the attitudes and behavior of employees. Not everyone is equally affected by these characteristics (Dugguh & Dennis, 2014). Some employees require development of their sills, autonomy and challenging environments to feel purposeful and satisfied. Others will be satisfied with the bare minimum offered.

Empirical review

Demystifying ‘Organizational Strategy’

Organizational strategies, as defined in the introduction can be explained as the direction that an organization intends to take. This strategy has to be a long-term commitment by the organization but it may be implemented in iterations (Shanafelt

& Noseworthy, 2016). There has been a lot of studies with regards to organizational strategy, sometimes even conflicting in terms of what strategy is and the process of making an organization’s strategy (Felin Foss & Ployhart, 2015). Most of these studies however have focused on defining strategy and the formulation of the said strategy, however, they have failed to identify on how it is that employees relate to these strategies and how those strategies influence the employees’ relationship with the organization in terms of the role they play in improve job satisfaction. In order to properly understand the role that organizational strategies play with regards to improving the job satisfaction of their employees, it is important to apply a cultural outlook. This is because since organizational culture and strategy are often used

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interchangeable and at times even intertwined, an organizational strategy can be said to influence the organizational culture. This is not to mean that culture replaces the organization’s strategies, but one can allude that an organization’s culture is the manifestation of its strategies (Dayan, Heisig & Matos, 2017). An organization’s strategy endeavors to provide the organization with a goal, a shared vision. When this goal is translates and begins implementation, it provides the members of the organization with a common comprehension, clarity, meaning and purpose. These factors are then a key determinant as to how these employees relate to the issues that they face. An organization’s culture then is the sense of common beliefs and meanings that are necessary for sustained organized activity. Practices within an Organizational Strategy That Play a Role in Job Satisfaction. An organization’s strategy is ideally the long-term goal that an organization must stake in order to achieve its mission. For that to happen, an organization definitely needs able personnel who will take the organization through the implementation phase of their strategy. Once an organization has employees, there are several practices that it has to ingrain into its strategies that form part and parcel of the employees stay within the organization. These practices range all the way from performance appraisal, to career advancement, to the nature of work and safe working environment. However, in line with motivator-hygiene theory, there are specific practices that when inculcated into the organizations’ strategies, will sow satisfaction in the employees. These factors when analyzed closely are more intrinsic than they are extrinsic because they tackle intangible and emotional needs of the employee. This brings into play factors such as challenging work, relationships, potential for growth and recognition (Akhter et al., 2016). While these needs may seem beyond the scope of what workplaces traditionally provide,

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they have a great role to play in enhancing satisfaction and for that reason, the organization’s strategies have to be in line with them. Role of Organizational Strategy in Providing Challenging Work in the Workplace. As stipulated earlier, an organization’s strategy is basically the plans in which the long-term goals of the organization can be achieved. In order to achieve these goals, the strategy has to outline the duties of each and every employee within the organization. In that regard, research has identified that employees are more satisfied when they are given duties that are challenging enough to trigger their expertise (Roy, 2017). For that reason, when an organization is developing its strategies, they have to put in mind their employees and determine what exactly will those employees be contributing to the organization and if at all, those contributions will matter. When employees are not challenged, they develop a sense of complacency and lack of satisfaction towards what they do. In the long run, these employees produce results that are below par which acts to the detriment of the organization. The organizational strategy therefore plays a great role in determining which duties an employee gets and are they challenging enough for them or not.

The role of organizational strategies in the growth of an employee Contrary to popular belief, jobs do not exist merely to benefit from an employee’s expertise and give them a salary at the end of the day, the organization is also supposed to contribute to the growth of this employee both in terms of experience and professional growth. Organizational strategies are therefore required to ensure that in their financial plans, they include resources for training their employees and

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more specifically, training in continuing professional development. Training and professional development not only enable the employee to add an extra certificate to their curriculum vitae, but also imparts new knowledge that is consistent with the field of practice. Organizational strategies have the role of ensuring that these employees are able to have time to attend these trainings and even take time off to go and study. This is done by ensuring that the organizational structure provides for delegation of duties and work sharing to enable them have the ample time away. The Role of Organizational Strategies in Ensuring their Employees Can Balance their Work and Life.

An employee does not just have a responsibility towards their organization, they also have a duty towards their family especially in India. This is because India is a deeply social society where family is a very important aspect of everyone’s lives. In that regard, organizational strategies should allow for employees to better balance their work and personal lives through work-life balance practices. These strategies should allow for ample annual leave and sufficient family days for the employees. In addition to that, these organizational strategies should allocate resources towards things like family health insurance for all their employees. To add onto that, organizational strategies should allow their employees to telecommute from their homes if need be and offer flexible schedules. These means that the duties of these employees should be in line with these practices and allow for flexibility.

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Chapter Summary

There is an abundance of literature available on the subject of job satisfaction and the factors contributing to it. It is becoming clearer each day that job satisfaction is one of the key elements that lead to achievements of organizational goals. Theories exist to explain what determine satisfaction. All have different views and there is no single explanation for the causes of employee’s job satisfaction. However, several authors opine that organizational strategies is one of the fundamental ways of including employees and increasing their satisfaction on the job.

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CHAPTER THREE: METHODOLOGY

3.0 Introduction

This chapter will present in detail the research methodology that was followed in the course of conducting this study. The chapter will focus on the research design, the research paradigm, the sampling technique and sampling design the data collection method, data collection instruments, research procedures and data analysis methods. Research design

A research design could take different forms and classifications which basically entail the extent to which the research question is crystallized, the data collection method utilized, the purpose and scope of the study. Basically, the research design takes into consideration all aspects of the study. Ideally, there are three types of research designs, descriptive study, casual study and reporting study design

(Woodward, 2013). This study utilized the descriptive research design. A descriptive research design is one that is based on investigating through questions that as who, what, where or to what extent. Research conducted in this design are often handled through research objectives and hypotheses that are clearly predetermined. Descriptive studies utilize investigative questions that aside from describing phenomena, they also estimate the number from the sample that possess characteristics and the association between the different variables. Research Paradigm.

The model used to conduct research and that has established a standing in the research communities for ages is known as the research paradigm. This study was conducted in the positivist research paradigm (Kivunja & Kuyini, 2017). This paradigm is built upon the fact that the only information that can be trusted is that which has been collected through observation or direct questioning of the

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respondents affected by the study. The researcher decided on this paradigm because of the belief that job satisfaction is a very subjective variable and it can only be established through questioning the respondents.

This study also employed the deductive research approach. This is because as opposed to creating new knowledge this study seeks only to add on the existing theory. The deductive research approach follows some key procedures. Ideally, deductive studies begin with a hypothesis, collection of data, analysis of data and finally the conclusion as to whether the hypothesis is true or not. Research procedures

The researcher developed a structured questionnaire specifically customized for this study. The data collection instrument was first pilot tested with 3 respondents from the study. This test was conducted to establish the reliability and validity of the questionnaires, to assess the questionnaire for readability and to ensure that it is understandable enough for the respondents. The issues raised in the pilot testing phase were adjusted through necessary amendments to the questionnaire. Once the adjustments had been made, the researcher subjected the entire sample to the questionnaire. In order to improve the response rate, the researcher sent the questionnaires through e-mail and gave the respondents three days to fill and return the questionnaire, Reminders through e-mail and text messages followed up. Population and Sampling Design.

Population

A study population is defined as the entire collection of the objects that a researcher wished to make inferences from (Woodward, 2013). The population of this study is the working class of India, more specifically those employed under formal employment.

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Sampling Design

Sampling is the process followed to select the manageable portion of the population that will be used in the design and conclusions regarding the entire population can be correctly drawn from. A good quality study is determined by the sampling design. Through sampling, a researcher is left with a more manageable group from which he can adequately interview, more thoroughly investigate, better supervise and process the data collected from the study (Woodward, 2013). Sampling is also an important aspect of a study because it offers the researcher the opportunity to manage his respondents and better manage cost and time spent on data collection. When selecting a sample, the researcher has to ensure that the sample is valid. For instance, any potential for bias has to be greatly reduced. Additionally, the researcher has to establish that the sample is as closely representative of the population. Sampling Size and Sampling Techniques.

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