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The Loyalty of the Worker to the Company and Commitment

1. Introduction

Employee loyalty and job satisfaction are one of the key challenges faced by the managers at present for managing employees. Many of the researchers have confirmed in several studies about the huge impact of job satisfaction on the motivation for the employees. In order, the motivation level has also a major impact on overall performance of the business organisations and their productivity. According to Nadiri & Tanova (2010), employees are also regarded vital source to all organisations as they represent noteworthy investment in case of recruiting, training and locating their healthcare plans, and bonuses comprehensively. On the other hand, it is permissible that management of most organisations try to develop their training programs, benefit packages, work-based system and the performance appraisal on their company policy (Gunlu, Aksarayli & ?ahin Perçin, 2010). Usually, these kinds of policies are expected to develop trustworthy employees since it leads to an extensive tenure.

As longer a worker works for an organisation, the value becomes more. For almost every organisation, employees are a vital resource since they represent a significant investment and loyal to jobs (Costen & Salazar, 2011). Based on policy for organisations, the management develops work system, bonus packages and the training programmes. Hence, these are intended to gain reliability for organisation, and certainly this also leads to greater satisfaction level to the jobs. As longer worker works in an organisation, the more costly it would be and would be loyal with the jobs.

As commented by Santouridis & Trivellas (2010), job satisfaction could also be measured in terms of an attitude employee shows in his/her work. This shows how employees are satisfied. In order, job satisfaction has become significant in the field of management sciences. As argued by Alniacik, Cigerim, Akcin & Bayram ( ........

l has also a major impact on overall performance of the business organisations and their productivity. According to Nadiri & Tanova (2010), employees are also regarded vital source to all organisations as they represent noteworthy investment in case of recruiting, training and locating their healthcare plans, and bonuses comprehensively. On the other hand, it is permissible that management of most organisations try to develop their training programs, benefit packages, work-based system and the performance appraisal on their company policy (Gunlu, Aksarayli & ?ahin Perçin, 2010). Usually, these kinds of policies are expected to develop trustworthy employees since it leads to an extensive tenure.

As longer a worker works for an organisation, the value becomes more. For almost every organisation, employees are a vital resource since they represent a significant investment and loyal to jobs (Costen & Salazar, 2011). Based on policy for organisations, the management develops work system, bonus packages and the training programmes. Hence, these are intended to gain reliability for organisation, and certainly this also leads to greater satisfaction level to the jobs. As longer worker works in an organisation, the more costly it would be and would be loyal with the jobs.

As commented by Santouridis & Trivellas (2010), job satisfaction could also be measured in terms of an attitude employee shows in his/her work. This shows how employees are satisfied. In order, job satisfaction has become significant in the field of management sciences. As argued by Alniacik, Cigerim, Akcin & Bayram (2011), job satisfaction has combined reactions on environmental, psychological and physiological orders that make an employee to say of he/she is fulfilled or not. Sageer, Rafat & Agarwal (2012) whereas has clarified that job satisfaction is regarded as the feelings for a particular person, as employees view their job unfavourable.

Research Aim & Objectives

The research aim is to realize the association between job satisfaction with the loyalty of the employee to the organisation and the commitment. However, the research objectives include:

  1. To recognize the factors that contributes to job satisfaction and employee loyalty for employees in an organisation
  2. To examine the extent where employee loyalty and job satisfaction are dependent on each other
  3. To investigate ways where business organisation are capable to increase employees to enhance job satisfaction

2. Critical literature review

Critical Review on job satisfaction and loyalty

Pandey & Khare (2012) have found that compensation as an imperative factor considered for job satisfaction while employee empowerment is also an effective factor for employee allegiance. In the study of Yeh (2013), it is revealed that employee attitudes reflect on the company’s values in areas where services and sales represent the company to the customers. Rather, Delcourt, Gremler, Van Riel & Van Birgelen (2013) have disguised that job performance is comparatively higher when experiences and constructive beliefs are predominant while performance is quite low with the negative beliefs. Tschopp, Grote & Gerber (2014) has also recognized that the reward system in an organisation play a decisive role, which helps to increase employee’s job satisfaction and at times, it results in better productivity for business organisations. Thus, Pantouvakis & Bouranta (2013) have also showed that the greater involvement for workers in high performance organisations is also linked with high rank of job satisfaction. On the other hand, this positive effect is subjugated by involvement of workers in an effective work system where they are particularly related with the opportunities regarding independence and synchronization among workers.

Loyalty and Job Satisfaction

According to Javed, Balouch & Hassan (2014), the loyalty of employee means that he is willing to do work for an organisation where he is working already, or tries the best for success of an organisation. In order, employee may think to do job in that organisation, which sometimes is regarded as a best choice. In case, the employee may have decided not to leave or plan in the same organisation (Lu & Gursoy, 2016). Hence, this is just like the behaviour for the individual that tries to increase firm’s value, its image and developing interest in the mind of outsiders.

As commented by Du Preez & Bendixen (2015), the last state in a psychological process is regarded as satisfaction, which is defined as job satisfaction. Understandably, it is considered that feelings of employee with the state of attitude also work with the workplace conditions, rewards, salary and bonuses. In the last few years in most organisations, job satisfaction and employee satisfaction are quite apparent to be requirement for the spirited stage of organisational success and quality (Atmojo, 2015). This has become a major objective, as the organisation and environment dominates the values and characteristics of the person’s state of job satisfaction.

As argued by Okan & Akyüz (2015), the relation between loyalty and job satisfaction is also regarded as positive, as organisations provide diverse opportunities like grow, learn and make an established career pathway. Hence, there is a strong link between loyalty of a worker and employee satisfaction, which is dependent on rewards, working conditions and recognition.

 

Participation in decision-making

Workplace environment

Reward and recognition

Empowerment

Job Satisfaction

Job loyalty

 

 
 

 

 

 

 

 

 

 

Figure 1: Proposed Model on Loyalty and Job Satisfaction

(Source: Created by author)

Factors influencing job satisfaction and loyalty for employees

Certainly, there are lot of factors that influences job satisfaction of employees. According to Costen & Salazar (2011), pay is considered as a major factor where most employees have paced it as an influential aspect. Besides, job security has a huge deal of interest in current years since job security comes from the reality, which is effective for influencing work-related aspects. Okan & Akyüz (2015) have commented that job security also works desirably for organisational commitment, as it is an important determinant for employee health. On the other hand, employee prefers positions that are active and bound to a working routine. In order, it is considered that employee that perceives their job make a career out in seeing it as a temporary position but this is probably to prefer challenges in functioning tasks and seeking opportunities in operating roles.

Besides, employee perceptions related to prospect also influences job satisfaction. From a survey, it is found that the perceived lack of promotional opportunities is a strongest cause on why centralized employees have left the government service. Further, some other conditions include internal rewards or the task’s nature that employee performs.

According to Javed, Balouch & Hassan (2014), employees that work at small business have the largest level of loyalty. It is considered that an existing employee might give you same spiel for the opportunities and money, which influences their decisions. From a 2010 survey made by the Society of HRM, it is showed that job safety is what matters the most to the employees. In case, having job safety helps to stay employee loyal. While that can be surprising at times when there is a state of high unemployment (Atmojo, 2015). In a territory, the benefits could be considered decisive where the unstable market is coupled with the rising of health care costs that make employer offer large benefits.

On the other hand, as argued by Tschopp, Grote & Gerber (2014), employee’s opportunities to use the skills have remained decisive. When the employee feels good about their abilities and jobs, it is clearly known they are contributing to the organisation in order to remain focused and engaged. Another factor is the financial ability for organisations whereas compensation also is a major factor, as employee reimburse is not a significant driver for employee retention.

How business organisations improves job satisfaction and employee engagement

According to Javed, Balouch & Hassan (2014), it is considered already that job satisfaction is crucial to motivation and high productivity in business organisations. While employers face challenges to find ways to increase job satisfaction such that businesses remain competitive. In order, a global economy to separate customers has placed the demands on the employers. Thus, to increase job satisfaction, it is prudent to provide a positive work environment as this provides a positive work environment. On this territory, a motivating work environment also requires providing need and duty of the worker. On the other hand, Delcourt, Gremler, Van Riel & Van Birgelen (2013) has argued that recognition is also considered a tool for building morale and motivation. This has helped to reward employees with a bigger impact than cash.

As commented by Pandey & Khare (2012), people also show their work but at times, they are productive and engaged. In case, it is witnessed that people are engaged and committed when there is a process for them to add their ideas and employee propositions. Besides, education and training motivates people, and make them more pioneering and productive (Lu & Gursoy, 2016). However, it is considered that well trained employees are competent and willing to presume more control over jobs. Hence, employees that are capable to reply to questions of the customers build better loyalty measure.

3. Methods

The method section will review the applied methods in this project from which the research would be conducted, and data will be gathered simultaneously. In this research, the researcher has used Secondary data analysis for reviewing the methods of this chapter.  

Research Approach

As the research is secondary, the research approach that was taken for the primary data was from deductive approach. Deductive approach tests the validity of the assumptions in terms of theories while the inductive contributes to the emergence of new generalisations and theories (Ritchie, Lewis, Nicholls & Ormston, 2013). However, the researcher had used the deductive approach, as the nature of data was quantitative.

Research Design

Research design was also considered decisive in the research that was conducted. Since the data to be conducted is secondary, the research that was conducted was defined with the help of descriptive design (Smith, 2008). This design was used among the participants in an accurate manner with the help of survey research, which was defined with in-depth study for individuals.

Research strategy

As the study was based on secondary data, a specific research strategy was used. Research strategy is a step-by-step wise plan, which gives direction to the efforts while conducting the research systematically to produce desired results. In that research, the researcher used survey strategy to conduct data for the research (Bernard, 2017). Survey strategy is an effective tool that is used to gather numerical data with the help of tables or graphs. The researcher in that research used email survey, which is done with online method where questionnaires are administered to participants, and responses are collected (Rutkowski, Gonzalez, Joncas & von Davier, 2010). However, surveys are also effective to describe characteristics of large population.

Data Collection Method

Data collection is the process for collecting information from the relevant sources in order to find appropriate answers to the research problem (Irwin, 2013). Data Collection is of two types: Primary and Secondary. In this research, secondary data is been used by collecting information from a previous research where primary data was collected on the concerned topic.

Sample size

On following the research, the researcher used random sampling method to evaluate data from the population. The researcher during that research used random sampling method where he selected 42 employees of an organisation in Sydney.

Data Analysis

The data analysis is known as a crucial part because this is the process that estimates how data was gathered (Cope, 2014). The researcher during that research used quantitative data analysis that was administered with the help of surveys in percentage calculations, and in the form of tables and pie charts.

4. Findings, Analysis and Discussions  

Results

From a survey study, the secondary data was collected in the form of six questions that were analysed and measured in the form of tables and graphs. The study that formed with the primary data is shown with all tables and the brief analysis, which was also made and from this, findings were also gathered.

1. Age group

Options

Frequency (in %)

18-28

12

29-38

40

39-48

24

49-58

17

59+

7

 

From the survey response, it was analysed that 12% of responses included in 18-28 age group while 40% felt on 29-38 age group. In order, 24% felt to 39-48 age group and 17% on 49-58 age group, and 7% to above 59+ age category.

2. Gender

Options

Frequency (in %)

Male

71

Female

29

 

From the above chart, it was witnessed that male respondents had the high majority with 71% while female had just 29%.

3. Workplace environment is an effective parameter towards job satisfaction

Options

Frequency (in %)

Strongly agree

55

Agree

28

Disagree

17

 

It was witnessed that 55% strongly agreed and 28% agreed that workplace environment is a crucial area that defines job satisfaction but 17% of the surveyed response did not agreed to this.

4. Reward and recognition has an important attribute towards job satisfaction

Options

No. of Respondents

Frequency (in %)

Strongly agree

32

71

Agree

5

11

Disagree

8

18

 

This question showed that 71% strongly agreed and 11% agreed that reward and recognition has an important attribute towards job satisfaction. However, 18% disagreed to this instance.

5. Participation in decision making influences you in job satisfaction

Options

Frequency (in %)

Strongly agree

47

Agree

36

Disagree

17

 

From this question, it was analysed about effective participation in decision making where 47% strongly agreed and 36% agreed while 17% disagreed.

6. Employee benefits and compensation are effective for loyalty measure to an employee in your organisation

Options

Frequency (in %)

Strongly agree

33

Agree

48

Disagree

19

 

The response measured here showed 33% strongly agreeing and 48% agreeing to employee benefits and compensation as a loyalty measure for employee in an organisation. In order, just 19% disagreed to the loyalty measure.

Findings

From the secondary data analysis, it showed about the age group of the respondents, which was considered as a major factor on job satisfaction and loyalty of a worker. Besides, the findings also revealed about the majority of male respondents who participated. In order, the impact of workplace environment was considered effective since it has a huge role to play towards job satisfaction in the organisation of Sydney, as selected from the research that was made (Sageer, Rafat & Agarwal, 2012). Rather, variable instances were also revealed on the recognition and reward, which is making a notable impact towards job satisfaction. Thus, from the findings of secondary data, it was availed that participation in decision making had matter the most with instances drawn from employee benefits and compensation.

Discussions

The discussion section analyses from the review made from the secondary data where 6 six questions were been analysed shows that age group of the respondents surveyed was higher in 29-38 age group. From the literature, it can be analysed that the response was higher since most of the employees at present in this category to increase value for firm and they are quite talented to increase their personality in front of others (Santouridis & Trivellas, 2010). Gender whereas showed that majority of the respondents who were being surveyed in that research were mostly males. A contrast can be found because at present in organisations, majority of males are seen higher while gradually females are also increasing in tandem.

Besides, workplace environment is considered pivotal as from the research made previously showed 80% agreeing to the factor (Costen & Salazar, 2011). In contrast, from the literature, workplace environment influence opportunity for employees to increase job satisfaction and probably this is an ideal area where developmental opportunities are seen wide. Besides, reward and recognition, and the participation shown in decision making also have showed a good response from the survey, which was made (Nadiri & Tanova, 2010). In contrast, from the literature, it is showed that employee opportunities have always remained decisive, and this has contributed organisations to remain focused. Thus, these factors have always been towards a high priority in the listing of job satisfaction. However, the employee benefits and compensation is also shown with good response, and in contrast from the literature, it is shown that employee benefits have remained decisive with the rise of health costs.

5. Conclusions and Recommendations

Conclusion

From the objectives of the study, it is concluded that the impact of job satisfaction on employee loyalty has remained significant with several factors. In order, the findings from the research conclude that there has been a decisive impact made on job satisfaction on employee loyalty among the chosen employees in the research that was taken. In case, the underlying factors related to job satisfaction has emerged to be motivation, workplace environment, career growth and self satisfaction. Rather, it is also observed that underlying factors of employee loyalty has also emerged from organisational commitment, employee benefits and job involvement.

Job satisfaction is also accepted for success of the organisation, and that is a major reason, which has been influential to the territory of loyalty for employees. Thus, the results from the findings have showed that employee benefits and compensation, workplace environment, participation in decision making, and rewards and recognition has been independent on satisfaction and loyalty.

Limitations

The study that was conducted has several limitations. Since the study showed job satisfaction and loyalty as positive, the relationship was generalized on the whole population in Sydney that was chosen as a sample size. Hence, the sample size and research area had increased results, which were not that accurate and significant. However, the study also helped employees of the previous research on which a similar research was conducted.

Recommendations

It is recommended that the organisation management has to give a large importance to employee development and the well being such that job satisfaction could be developed. As majority of employees are in middle age category, they could face problems in their career, and for this, short-term training programmes will help them to increase skill level and encourage in continuing work productively. Elsewhere, a two-way communication is also recommended that will encourage senior and junior employee through simultaneous meetings. Thus, these meetings will help to clarify organisational goals and the core values.