Job Satisfaction, Job Performance, and Effort: A Reexamination Using Agency Theory

Abstract

The objective of this article is to clarify ambiguities in the literature regarding the relationships among three key constructs of work relationships: effort, job performance, and job satisfaction. The relationship between job performance and job satisfaction is of central interest to research in organizational psychology. However, empirical research in that area finds that the link between these constructs is weak at best. A negative effect of effort on job satisfaction is consistent with agency theory, but there is limited empirical evidence to support this assumption. Moreover, some studies have found a positive effect of effort on job satisfaction. Using a model that incorporates the main constructs from agency theory and organizational psychology, the current study finds a negative, direct effect of effort and a positive, direct effect of job performance on job satisfaction. The authors show that conflicting findings in the literature are the result of inconsistency in both the measurement and the definition of constructs across studies that do not fully account for all the relationships between constructs. The current findings emphasize the need to distinguish clearly between factors that represent employees' inputs in a work relationship (i.e., effort) and those that represent their outputs (i.e., job performance). The article also demonstrates the importance of properly accounting or controlling for all key variables to eliminate biases that can arise in empirical research on work relationships.

Employees’ use of mobile devices and their perceived outcomes in the workplace: A case of luxury hotel

“…Finally, as proven in the studies by Christen et al (2006) and Frey et al (2013), this study supported H4 and H5, as hypothesized. Perceived job performance was positively associated with job satisfaction (H4: ␤ = 0.26, t = 2.36), and job satisfaction was positively associated with employee retention (H5: ␤ = 0.60, t = 5.50), which indicated that perceived job performance had a positive effect on job satisfaction, such enhanced job satisfaction, leading to employee retention.…”

“…Even though many previous studies (i.e., Bagozzi, 1980;Christen et al, 2006;Frey et al, 2013;Kumar et al, 2014) have shown significant relationships among job performance, satisfaction, and retention, this study reconfirms these relationships in the context of mobile device use at hotels. In order to retain capable, happy, and qualified employees, hotel management must be alert to their employees' basic and fundamental needs for performing their tasks efficiently and effectively; moreover, management must be mindful of whether they can thoughtfully implement employees' desired requests for shared goals.…”

“…If their performance is positively rewarded and acknowledged, their satisfaction with the job is likely to increase. Consistent with this theory, researchers (i.e., Bagozzi, 1980;Christen et al, 2006) asserted that job performance and job satisfaction were positively related. Thus, employees' favorable performance is believed to exert a significant influence on their job satisfaction.…”

Using model-based expectations to predict voluntary turnover

“…Due to their immediate effect, any impact of expectations on satisfaction or turnover may be easier to detect in this firm than in one with a more complex reward system that depends on behavioral inputs. Further, we note the importance of including performance-based compensation in our model to capture its impact on job satisfaction (Christen, Iyer, & Soberman, 2006).…”

“…On the whole, the literature suggests a positive impact of performance on job satisfaction (e.g., Christen et al, 2006). "Apparently, salespeople are motivated by the anticipated satisfaction that comes with performance more than they are by the performance itself" (Bagozzi, 1980, p.70).…”