Impact Of Job Satisfaction On Employee Performance

1.0 Introduction

Now a day’s all firms or business entities are facing so many issues related to employee’s job satisfaction. Rewards and Compensation have much impact on employees, which increase their level of job satisfaction. Many studies are conducted in the past to check the impact of rewards and compensation on employee’s job.

Many researchers and investigators identified that Job satisfaction has direct relations to human psyche, emotion, behaviour and attitude. These all parameters help the individual to understand what the level of job satisfaction showed by others is. In current most organizations set out their goals regarding employees and customers. One of the important goals of any organization is job satisfaction of employees.

For the success of entire educational system, it depends on the teacher’s quality and capability. They are considered pivots because they joint the progress of economy of any country from talent to work. In the world the fact has been proved that high level of an individual’s job satisfaction and organizational commitment has positive behaviour and attitude toward work while others have negative who show negative. Professional competence showed that its high degree because of teacher is mostly satisfied about their teaching profession. They believe them well educated having teaching skills and subject matter’s knowledge and the classroom management helps them to feel secure about this profession.

1.1 Problem Statement:

“Why the employee turnover rate is high? How much it’s related to compensation?”

1.2 Research objectives:

• To study and determine the effects of compensation on job satisfaction.

• To determine whether there is a relationship between compensation and job satisfaction.

1.3 Research Questions:

• What is the impact of compensation on job satisfaction? Positive or negative?

• Is compensation one of the factors that lead to job satisfaction?

1.4 Relationship diagram:

(Independent V.) (Dependent V.)

2.0 Literature

Many human resource-related concerns need to be addressed, but equally important is understanding the financial aspects of employee compensation. Employee compensation is much more than just the direct amount that you pay an employee. (Pam Newman, 2007)

“Employee compensation is the total amount an employee can expect to receive when working for an organization.” (Paul Mckinney)

Compensation is one the most important component of Human Resource Management. Compensation consists of rewards, acknowledgment and recognition, which workers receive from their organization by their managers and their supervisors.

Compensation includes different types of bonuses, benefits, promotions and rewards. It consists of rewards which are economical i.e. wages and salaries increase. It includes the bonuses when the employees fulfil a monthly objective and achieve their