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Employee Satisfaction Variables

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Employee Satisfaction Variables

Employee Satisfaction:
Employee satisfaction is considered to be a key indicator of productivity and customer satisfaction.
Employee satisfaction is a key to the success of the organization.
The Company's ability to fulfill the physical, emotional, and psychological needs of its employees is employee satisfaction.


Satisfaction is the psychological state that indicates how a person feels about his or her situation, based on an evaluation of the situation.


Motivation is the psychological state that exits whenever internal and or external forces simulate, direct or maintain behavior. In organizations the employee behaviors of interest include both productive and unproductive behaviors. By understanding motivation manager can increase productive behaviors such as coming on time and putting in more efforts.

Relation-ship between motivation and satisfaction:

Employee satisfaction and employee motivation goes hand in hand. A happy worker is a productive worker.
The relation ship between employee satisfaction and employee motivation is a bit difficult. We can better understand the relation ship with the two factor theory.

Two factor theory
Before it was assumed that if a person is dissatisfied with part of the job (for example pay) all that has to be done was to improve the factor (that means increase the pay) and this would lead to a higher satisfaction, greater motivation and higher performance.
But Herzberg and his co workers concluded that there are two set of factors that affect people in the workplace, each of which worked in different ways. These were hygiene factor and motivating factors.

Hygiene factors – creates dissatisfaction if they a...

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...g areas
• Employee growth and development
• Managing employee productivity
• Work facilities and environment
• Training
• Empowerment
• Appraisals
• Compensation
• Recruitment
• Inter personnel relationship
• Employee welfare
• Work culture
• Overall information flow
• Organizational structure
• Employee satisfaction studies
Therefore these are the areas that identify whether an employee is satisfied in his job inadequately or adequately.


Paying attention to employees pays off. Assuming that a company or institution has a marketable service and product set, focusing on employee and customer satisfaction increases profitability.

Viewing employees as the most important resource and creating a culture which values them may produce not only sustained profitability but also the type of competitive advantage which others aspire to emulate.

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