Employee Job Satisfaction and Business Performance: The Mediating Role of Organizational Commitment

Abstract

Purpose: The aim of this research article is to scrutinize the influence of employee job satisfaction on organizational commitment and business performance in the context of retail banking sector in northern India. Design/methodology/approach: A research design of quantitative in nature was used via a structured questionnaire on a sample of 440 Indian commercial bank employees. Research hypotheses were tested by using the structural equation modelling (SEM) technique to evaluate and test the proposed model. Findings: The result of the present study confirms that all facets of job satisfaction affect the satisfaction of employees significantly and, thus, influence the employee’s organizational commitment and business performance, respectively. The significance of the indirect path of employee job satisfaction on business performance through organizational commitment has also been tested with the Sobel test, which exhibited significant results. Research implications: This study provides insight into the influence of employee job satisfaction on the organizational commitment and business performance in the Indian commercial banking context in particular, which could benefit management and policymakers as well as other enterprises operating in the same segment. The results suggest that employee job satisfaction strongly contributes to employees’ organizational commitment and business performance. Therefore, organizations require that their employees must be contented and pleased with what they do. Originality/value: This research study contributes one more brick to the existing body of knowledge by investigating the casual relation of employee job satisfaction, and organizational commitment as a mediator with business performance, as these causal relations with business performance are very scarce in the context of commercial banking context. Research limitations: This research survey was restricted to commercial banks operating only in northern India. Thus, it limits the generalizability of the results for the context specified only.

The Impact of Training and Innovation on Organizational Performance in the Hospitality Industry in Malaysia: Job Satisfaction as Mediator

“…Thus, it can therefore be deemed that the objectives of the study have been realized and the gaps in the literature has been narrowed. The researcher has found out that both training and innovation had an influence on job satisfaction and organisational performance in the hospitality industry which supports the previous findings of (Ahmad & Raja, 2021;Garavan et al, 2021;Sharma & Biswakarma, 2020;Katz, 2020;Kanapathipillai & Azam, 2020). This proves that when employees of the hospitality industry are provided with the necessary training which would equip them with the right competencies, knowledge and sagacity then their job satisfaction heightens which thenceforth enhances organisational performance as elucidated by (Garavan et al, 2021;Alnawfleh, 2020).…”

“…From this study, it can be affirmed that job satisfaction significantly enhances organisational performance of the hospitality industry in Malaysia. Previous study conducted by (Ahmad & Raja, 2021;Sharma & Biswakarma, 2020;Miah, 2018;Bakotic, 2016;Ouedraogo & Leclerc, 2013;Chandrasekar, 2011;Ostroff, 1992;Ryan et al, 1996;Harter et al, 2002;Gould-Williams, 2003;Evans & Jack, 2003;Schneider et al, 2003;Zohir, 2007) also supports this finding.…”

“…This study revealed that job satisfaction is significant in order to enhance organisational performance of the hospitality industry in Malaysia which supports hypothesis H5 of this study. This finding can be corroborated by (Ahmad & Raja, 2021;Sharma & Biswakarma, 2020;Brohi et al, 2018;Shah et al, 2018) who asserted that job satisfaction strongly contributes to the augmentation of business performance. Moreover, the findings of this research can invalidate previous scholars such as (Mohr & Puck, 2007;Daily & Near, 2000) who found an insignificant relationship between job satisfaction and organisational performance.…”

“…Several scholars (Ahmad & Raja, 2021;Sharma & Biswakarma, 2020;Brohi et al, 2018;Shah et al, 2018;Chan et al, 2000;Koys, 2001;Ellinger et al, 2002;Chandrasekar, 2011;Mafini & Pooe, 2013;Latif, 2015;Qureshi et al, 2019) have discovered a positive relationship between job satisfaction and organisational performance. On the contrary, some scholars have only found insignificant relationship between job satisfaction and organizational performance such as (Mohr & Puck, 2007;Daily & Near, 2000).…”

Organizational Justice and Leadership Behavior Orientation as Predictors of Employees Job Satisfaction: Evidence from Croatia

“…Dorta-Alfonso et al [1] revealed the relationship between job satisfaction and individual job performance, since satisfied employees will put discretionary effort into their tasks to perform well. While some studies proposed direct relationship between job satisfaction and organizational performance (see [2]), research findings also suggested that the relationship between employee satisfaction and financial performance was mediated by some other variables, such as customer satisfaction [3,4] and organizational commitment [5], highlighting the importance of job satisfaction for organizational success in broader context.…”