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Job Satisfaction and Employee Loyalty: A study of Academicians

Article  in  Asian Journal of Management · January 2016

DOI: 10.5958/2321-5763.2016.00015.9

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 Asian J. Management; 7(2): April- June, 2016

ISSN 0976-495X (Print) www.anvpublication.org

2321-5763 (Online)

RESEARCH ARTICLE

Job Satisfaction and Employee Loyalty: A study of Academicians

Mrs. Shweta Rajput1*, Mr. Mayank Singhal2, Mr. Shivkant Tiwari3
1
Assistant Professor, Fairfield Institute of Management and Technology, New Delhi
2
Assistant Professor, Aditya College, Gwalior, M.P.
3
Research Scholar, Jiwaji University, Gwalior, M.P.
*Corresponding Author E-mail: rajput.shweta26sep@gmail.com

ABSTRACT:
Job satisfaction and Employee Loyalty represents one of the most key challenges faced by the managers today
when it comes to managing their employees. Employees are the most valuable resource for all organizations; the
longer an employee works for a company the more valuable it becomes.
Many researchers have been conducted in various sectors to demonstrate the impact of Job satisfaction on
employee loyalty. Employee loyalty is all about employees being committed for the success of the organization
with a strong belief that working with that particular organization is their best option. The aim of the study was
to find the impact of job satisfaction on employee loyalty in case of academicians. This study also finds out
various factors underlying job satisfaction and employee loyalty. To achieve the aim of the study questionnaire
survey was used. The results show that there is no impact of job satisfaction on employee loyalty in case of
academicians.

KEY WORDS: Job Satisfaction, Employee Loyalty, Attitude, Organizational Commitment, Employee
empowerment.

1.0 INTRODUCTION: Employees are a vital resource for all organizations,

Job satisfaction and Employee Loyalty represents one of especially since they represent a significant investment
the most key challenges faced by managers today when in terms of locating, recruiting, and training let alone
it comes to managing their employees. Many researchers salaries, healthcare plans, bonuses, etc. The management
have demonstrated in their studies, the large impact of of many organizations develops their training
job satisfaction on the motivation of employees, while programmes, benefit packages, performance appraisal
the level of motivation has an impact on productivity, and work system based on their company policy. Usually
and hence also on overall performance of business these policies are aimed at developing loyal employees
organizations. because this leads to a more lengthy tenure. The longer
an employee works for a company the more valuable
they become.

JOB SATISFACTION:
The term Job satisfaction was brought to limelight by
Hoppock (1935). Hoppock described job satisfaction as,
“any combination of psychological, physiological and
environmental circumstances that cause and person
Received on 29.09.2016 Modified on 13.10.2016 truthfully to say I am satisfied with my job.”
Accepted on 16.10.2016 © A&V Publication all right reserved
Asian J. Management. 2016; 7(2): 159-163. Job satisfaction is basically refers to a person’s feeling
DOI:
towards their job which acts as a motivation to work. Job

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 Asian J. Management; 7(2): April- June, 2016

satisfaction is an individual’s feeling regarding his or her We consider that job satisfaction represents a feeling that
work. It can be influenced by a various factors. Job appears as a result of the perception that the job enables
satisfaction is under the influence of a series of factors the material and psychological needs (Aziri, 2008).
such as: The nature of work, Salary, Advancement
opportunities, Management, Work groups and Work EMPLOYEE LOYALTY
conditions. Employee loyalty can be defined as a psychological
attachment or commitment to the organization and
Job satisfaction represents a combination of positive or develops as a result of increased Job satisfaction. Job
negative feelings that workers have towards their work. satisfaction results from a process of internal evaluation,
Meanwhile, when a worker employed in a business and if an employee’s expectation level is met or
organization, brings with it the needs, desires and exceeded, then satisfaction grows. Employee loyalty
experiences which determinates expectations that he has then develops into a generalized emotional attitude
dismissed. Job satisfaction represents the extent to which towards the organization. In other words, the more
expectations are and match the real awards. Job satisfied an employee is regarding his or her working
satisfaction is closely linked to that individual's environment, the more likely that he or she will develop
behaviour in the work place (Davis et al.1985). a sense of commitment towards the organization in
general.
Job satisfaction is a worker’s sense of achievement and
success on the job. It is generally perceived to be directly Employee attitudes towards the organization then give
linked to productivity as well as to personal well-being. rise to the behavioural component of loyalty. An
Job satisfaction implies doing a job one enjoys, doing it employee who has developed affection to the
well and being rewarded for one’s efforts. Job organization is more likely to demonstrate loyal
satisfaction further implies enthusiasm and happiness behaviours and work towards the overall goals of the
with one’s work. Job satisfaction is the key ingredient organization, such as improved productivity, greater
that leads to recognition, income, promotion, and the efficiency, and a high-quality service orientation to
achievement of other goals that lead to a feeling of customers.
fulfillment (Kaliski, 2007).
Employee loyalty (typically synonymous with
Job satisfaction can be defined also as the extent to commitment) to the organization has sometimes been
which a worker is content with the rewards he or she viewed as an attitude. However, it is not so much an
gets out of his or her job, particularly in terms of attitude (or thought component) that is important in
intrinsic motivation (Statt, 2004). organizations, but rather it is the bottom-line action
component (Meyer and Allen, 1991). Employee loyalty
The term job satisfaction refers to the attitudes and is the willingness to remain with the organization
feelings people have about their work. Positive and (Solomon, 1992). Employee loyalty can be defined as
favourable attitudes towards the job indicate job employees being committed to the success of the
satisfaction. Negative and unfavourable attitudes towards organization and believing that working for this
the job indicate job dissatisfaction (Armstrong, 2006). organization is their best option. Not only do they plan to
Job satisfaction is the collection of feeling and beliefs remain with the organization, but they do not actively
that people have about their current job. People’s levels search for alternative employment and are not responsive
of degrees of job satisfaction can range from extreme to offers (The Loyalty Research Center, 1990).
satisfaction to extreme dissatisfaction. In addition to Employee loyalty is an organizational citizenship
having attitudes about their jobs as a whole. People also behaviour that reflects the allegiance to the organization
can have attitudes about various aspects of their jobs to the promotion of its interests and image to the
such as the kind of work they do, their co-workers, outsiders. (Bentten Court, Gwinner and Meuter, 2001).
supervisors or subordinates and their pay (George et al., Employee loyalty is a manifestation of organizational
2008). commitment, the relative strength of an individual’s
identification with and involvement in a particular
Job satisfaction is a complex and multifaceted concept organization (Mowday, Porter and Steers 1982), Based
which can mean different things to different people. Job on internalization and identification (O’Reilly and
satisfaction is usually linked with motivation, but the Chatman 1986). This behaviour’s can be characterized
nature of this relationship is not clear. Satisfaction is not by three related factors. They are strong belief and
the same as motivation. Job satisfaction is more of an acceptance of the organization’s goals and values, a
attitude, an internal state. It could, for example, be willingness to exert considerable effort on behalf of the
associated with a personal feeling of achievement, either organization and a strong desire to maintain membership
quantitative or qualitative (Mullins, 2005). in the organization. (Mowday, Porter and Steers 1979).

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 Asian J. Management; 7(2): April- June, 2016

2.0 LITERATURE REVIEW: 3.0 OBJECTIVES:

Hassan et al (2013) found that compensation was the  To design, develop and standardize a measure to
most important factor for job satisfaction whereas evaluate job satisfaction and employee loyalty.
employee empowerment was also a significant factor for  To find out the various factors underlying Job
employee loyalty. Whereas, Hooi Lai Wan(2013) in his satisfaction and employee loyalty.
study, revealed that there existed no correlation between  To study the impact of job satisfaction on employee
employee loyalty and the extent of Japanese style of loyalty among academicians.
Human Resource Management policies used at  To identify new areas for further research.
workplace. Jain and Singh (2013) stated that employee
attitudes reflect the values of the company. Employee
4.0 HYPOTHESIS FRAMED:
satisfaction is extremely important especially in the areas
 H0:There is no significant impact of job satisfaction
of sales and services as they represent the company to
on employee loyalty among academicians.
customers. Khare and Pandey (2012) studied the impact
of job satisfaction and organisational commitment and
their impact on employee loyalty and found out that 5.0 RESEARCH METHODOLOGY:
there was an impact of Job satisfaction and Data Collection and Measurement Scale
organisational commitment on employee loyalty. Kumari The Study was based on Academicians in north India.
and Pandey (2011) implied that job performance was The main purpose of the study was to see the impact of
comparatively high when positive beliefs and affective job satisfaction on employee loyalty among
experiences are salient and thus predominate at a certain academicians. For this purpose data was collected from
point in time but that their performance may be the academicians working in various colleges and
comparatively low at other times when negative beliefs institutes. The research was based on primary data. The
and affective experiences are salient and predominate. instrument for data collection was a self-designed
Kabir and Parveen (2011) tested the factors affecting job questionnaire which was administered personally to the
satisfaction and suggested that the managers should employees working in Telecom Sector to collect data.
focus on various factors that affect and enhance the The questionnaire was based on 5-point (Likert) scale
employee job satisfaction for better performance of the ranging from 1= Strongly Disagree to 5= strongly agree.
organisation. Khuong and Tien (2013) argued that in In this study, Judgmental (non-probability) sampling
order to achieve high employee loyalty, companies in technique was used. A sample of 100 employees was
banking industry should achieve high level of employee selected for the purpose of this study.
job satisfaction, enhance supervisor support and
teamwork among employees, and provide good working Data Analysis and Interpretation
environment. Abugre and Sarwar (2013) identified that Statistical Software SPSS version 22 has been used for
the reward system in an organisation plays a significant data analysis. Item to total correlation was used to
role in increasing the job satisfaction of employees, establish the internal consistency of the questionnaire;
higher rewards and satisfied employees at work results in Cronbach’s alpha was used to measure their liability of
higher productivity of Business organizations. Adjetey the measurement scale. Factor analysis was used to find
and Prako (2013) revealed that there were significant out the factors underlying Job satisfaction and employee
linear correlations among employee loyalty, engagement loyalty. Regression Analysis was applied to find out the
and performance. They also found out significant impact of job satisfaction (independent variable) on
positive correlations of human relation, leadership style, employee loyalty (dependent variable).
job content, personal development, creativity and their
effect on employee loyalty. Bauer (2004)showed that 6.0 RESULTS:
higher involvement of workers in high performance After studying the data of 100 academicians by applying
workplace organisations is associated with high level of the statistical tools following results were found:
job satisfaction. This positive effect is dominated by
worker’s involvement in flexible work system, workers CONSISTENCY MEASURE
particularly associated with opportunities in the Consistency of all the factors in the questionnaire was
organisation regarding functional autonomy and checked through item to total correlation. In this
coordination among workers. Akbar et al (2011) correlation of every item with the total was measured
identified that employee empowerment has positive and and the computed value was compared with standard
significant impact on job satisfaction they also found that value. Only those factors/statements were accepted
there existed significant difference between male and whose value was more than the standard value.
female employees regarding job satisfaction level, male
employees found to be more satisfied with their jobs.

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 Asian J. Management; 7(2): April- June, 2016

RELIABILITY MEASURE Job (0.697) and Opportunities to learn new skills

Job Satisfaction: Reliability of the measure was tested (0.691).
using SPSS software and the Cronbach’s Alpha value
was found to be 0.802. The face validity was checked 2. MOTIVATION (2.124): This factor has emerged as
and found to be high. an important determinant of employee loyalty with
15.171% of variance. The major elements
Employee Loyalty: Reliability of the measure was constituting this factor include; Job Security (0.722),
tested using SPSS software and the Cronbach’s Alpha Satisfaction with the sort of work (0.671), job is
value was found to be 0.821. The face validity was according to the knowledge and skills (0.612) and
checked and found to be high. clear understanding of job responsibilities (0.529).

HYPOTHESIS TESTING: 3. WORK PLACE ENVIRONMENT (1.438): This

H0: There is no significant impact of job satisfaction on factor has emerged as an important determinant of
employee loyalty among academicians. employee loyalty with 10.273% of variance. The
major elements constituting this factor include;
Table 1.0 Showing Regression Coefficient Values Relationship with Colleagues (0.794), Fair job
Model Unstandardized Standar t Sig. evaluation (0.602) and Timings of the job (0.472).
Coefficients dized
Coeffic 4. SELF SATISFACTION (1.065): This factor has
ients
emerged as an important determinant of employee
B Std. Error Beta loyalty with 7.605% of variance. The major elements
1 (Constant) 14.346 3.597 3.989 .000 constituting this factor includes; Opportunities to
Job .363 .074 .445 4.917 .000 participate in decision making(0.873), Work
Satisfaction recognition by seniors (0.786) and Satisfaction with
a. Dependent Variable: Employee Loyalty the Current Designation (0.423).

Regression analysis was applied between Job satisfaction

(independent variable) and Employee Loyalty FACTOR ANALYSIS (EMPLOYEE LOYALTY):
(dependent variable) among academicians. The results of The raw scores of 9 items were subjected to factor
regression indicate that independent variable (Job analysis to find out the factors that contributed towards
Satisfaction) has significant relationship with dependent Employee Loyalty. After factor analysis, four factors are
variable (employee loyalty) signified by the coefficient identified. The factors were belongingness, job
of Beta factor of job satisfaction is 0.445 and T value is involvement and organisational commitment.
4.917 is significant at 0.0 significant level hence it can
be said that job satisfaction is having significant impact 1. BELONGINGNESS (3.842): This factor has
on employee loyalty. emerged as the most important determinant of
employee loyalty with 42.689% of variance. The
The null hypothesis that there is no significant impact of major elements constituting this factor include;
job satisfaction on employee loyalty is not accepted emotionally attached to job (0.790), would not
which means that there is significant impact of job change my job (0.768), would recommend this job to
satisfaction on employee loyalty among academicians. others(0.744) and fulfil my career goals with this job
(0.713) and would continue this job in future (0.682).
FACTOR ANALYSIS (JOB SATISFACTION): The
raw scores of 14 items were subjected to factor analysis 2. JOB INVOLVEMENT (1.626): This factor has
to find out the factors that contributed towards Job emerged as an important determinant of employee
Satisfaction. After factor analysis, four factors are loyalty with 18.068% of variance. The major
identified. The factors were career growth, motivation, elements constituting this factor include; look for
work place environment and self-satisfaction. ways to improve work at job (0.921), speak
positively about the job to friends (0.797).
1. CAREER GROWTH (4.259): This factor has
emerged as the most important determinant of 3. ORGANIZATIONAL COMMITMENT (1.180):
employee loyalty with 30.424% of variance. The This factor has emerged as an important determinant
major elements constituting this factor include; of employee loyalty with 13.107% of variance. The
Chances of Promotion (0.872), Salary and major elements constituting this factor include; Loyal
Compensation (0.860), Highly Motivated to do this to the organisation (0.864), committed to
organisation’s success (0.817).

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 Asian J. Management; 7(2): April- June, 2016

7.0 CONCLUSION:
The objectives of the study were to find out the impact
of job satisfaction on employee loyalty among
academicians and to find out the various factors
underlying Job satisfaction and employee loyalty. The
findings of the research conclude that there is a
significant impact of job satisfaction on employee
loyalty among academicians. The underlying factors of
job satisfaction emerged from this study are career
growth, motivation, work place environment and self-
satisfaction. The underlying factors of employee loyalty
emerged from this study are belongingness, job
involvement and organisational commitment.

8.0 REFERENCES
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Mowday, R.T., Porter, L.W., and Steers, R.M. (1979). “The
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Meyer, J.P., and Allen, N.J. (1991). A three-component
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Solomon, C.M. (1992, Sept.). The loyalty factor, Personnel Journal,
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