The Effect of Employee Job Satisfaction on Organizational Performance: The Case of Jay Jay Textile Company
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Date
2024-08
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Addis Ababa University
Abstract
Human capital is considered one of the most significant resources for contemporary firms because people possess tacit knowledge that organizations can leverage to enhance their organizational performance. This study examined the effect of job satisfaction on organizational performance at Jay Jay textile industry in Ethiopia. The research applied a quantitative research approach and descriptive and explanatory strategies. The study selected 138 sampled employees from a target population of 213 employees in an Addis Ababa textile company using stratified random sampling procedures. Self-administered questionnaires were used to collect primary data. Descriptive and inferential statistics were computed to describe the characteristics of the variables in the study. The findings revealed that significant relationships between several factors and organizational performance: recruitment and selection (r=0.659, p ≤ 0.05), reward (r=0.600, p ≤ 0.05), teamwork (r=0.605, p ≤ 0.05), career growth, work environment (r=0.601, p ≤ 0.05), and job security (r=0.555, p ≤ 0.05). These correlations were statistically significant. Furthermore, the study revealed positive effects of recognition (B=0.351, p = 0.0001), reward (B=0.191, p = 0.0001), teamwork (B=0.170, p = 0.007), career growth (B=0.177, p = 0.002), working conditions (B=0.177, p = 0.003), and job security (B=0.121, p = 0.045) on organizational performance. This study concluded that job satisfaction such as recognition, reward, team work, career growth, work environment and job security will significantly develop or improve organizational performance. Recognition has the highest effect on organizational performance with a coefficient (B) of 0.351 and a significant p-value of 0.0001. This indicates that recognition has the strongest positive impact on organizational performance compared to other factors studied in the research. Based on the findings above, this study recommends that HR managers in textile firms implement genuine and tailored employee recognition methods. Examples include celebrating Manufacturing Day, hosting Employee of the Year Awards, and using a formal strategic plan. Additionally, enhancing capacity building through qualified experts and training programs aligned with needs assessments, along with developing formal policies for performance appraisal, are crucial steps for improving organizational performance.
Keywords: Career Growth, Job Satisfaction, Job Security, Organizational Performance, Recognition, Reward, Team Work, Work Environment