CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter discusses the concept of job satisfaction, organizational culture and motivation

theories. Also dimensions, types and levels of organizational culture were discussed. Empirical

literature on the relationship between the organization’s performance and employee’s job

satisfaction as well as the relationship between the organization’s culture and job satisfaction

over the past few decades was also highlighted. Boggie (2005) maintains that in order to provide

good service, the quality of employees is critical to ensure success. It is for this reason that it is

essential that the area of job satisfaction and organizational culture be explored in order to gain a

better insight thereof. This will provide executive managers with important information to enable

them to stimulate greater job satisfaction amongst employees.

2.2 The Concept of Organizational Culture

Many scholars have proposed a number of definitions for the organizational culture concept

(Ravasi & Schultz, 2006; Huang and Chi, 2004; Gordon, 1991). Unsurprisingly there is little

agreement over a precise definition of organizational culture (McKenzie, 2010). According to

Lewis (2002) a universal definition of organizational culture has proven elusive, however it is

generally considered to be the shared values, beliefs and assumptions that exist among

employees within a company that help guide and coordinate behaviour (Schein, 1991). While

there is no single widely accepted definition, there appears to be some agreement that every

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definitions should emphasis a range of social phenomena, including a common pattern of values,

beliefs, symbols, meanings, behaviours, and assumptions held by organizational members that

help to shape the ways in which they respond to each other and to their external environment

(Aycan et al., 2000; Barney, 1986; Chow & Liu, 2009; Ngo & Loi, 2008; Ogbonna & Harris,

2002; Scott et al., 2003). Sinha (2000) suggests that “culture consists of assumptions, beliefs,

values, social systems and institutions, physical artifacts and behaviour of people, reflecting their

desire to maintain continuity as well as to adapt to external demands.” Martins and Martins

(2003: 380) define organizational culture as “a system of shared meaning held by members,

distinguishing the organization from other organizations”.

According to Sempane et al (2002), organizational culture defines a set of expected behaviour

patterns that are generally exhibited within the organization. These norms have a great impact on

the behaviour of the employees (Chi et al, 2008). Organizational culture is deeply rooted within

the organizational system, as it is a process, which evolves over a long time. An organization’s

culture determines the way the organization conducts its business, and as a result also influences

its processes (Sempane and Rieger, 2002). Because of its deep- rooted nature, the culture of the

organization is difficult to change due to resistance from employees. For Schein (1992), the

organizational culture helps the organizations to solve its problems of external adaptation and

internal integration by creating a shared pattern.

Arnold (2005) indicates “that organizational culture is the distinctive norms, beliefs, principles

and ways of behaving that combine to give each organization its distinct character”.

Organizational culture is therefore to an organization what personality is to an individual

(Johnson 1990). Schein (1996), Mitchell and Yate (2002) addressed that values, beliefs and

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feelings shared by the groups in an organization are the basic assumptions of the organizational

culture. The beliefs and ideas of the organizations have created the culture, which cannot be seen

but its physical manifestations are felt in the work place (Assan et al, 2009).

All these definitions suggest that culture is a set of value systems that are equally shared by all

the members (Rashid et al, 2007). They take a long time to evolve and are sustained over a long

period of time. They form a common core which binds people together. Work culture, on the

other hand, is a totality of various levels of interaction among organizational factors (boundaries,

goals, objectives, technology, managerial practices, material and human resources, and the

constraints) and organismic factors (skills, knowledge, needs, and expectations) interact among

themselves at various levels (Rashid et al, 2007). Werner (2007) states that “organizational

leaders need to determine what type of culture will reflect the organizational vision and values,

identify the appropriate behaviour to shape such a culture and then develop strategies to instill

these behaviours across the entire organization”.

2.2.1 The Nature of Organizational Culture

According to Rashid et al (2007), the culture of an organization may reflect in various forms

adopted by the organization. These include:

 The physical infrastructure

 Routine behaviour, language, ceremonies

 Gender equality, equity in payment

 Dominant values such as quality, efficiency and so on

 Philosophy that guides the organization’s policies towards it employees and customers
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like ‘customer first’ and ‘customer is king’, and the manner in which employees deal with

customers.

Individually none of these connote organizational culture, however, together; they reflect

organizational culture (Rashid et al, 2007). Although organizational culture has common

properties, it is found that large organizations have a dominant culture and a number of sub –

cultures. The core values shared by the majority of the organizational members constitute the

dominant culture (Rashid et al, 2007). Rashid et al (2007) defines subcultures within an

organization as a set of shared understandings among members of one

group/department/geographic operations.

2.2.2 Categorization of organizational culture

In trying to understand better the concept of corporate culture, several typologies had been

developed. One of the most recent typologies was developed by Goffee and Jones (1998). Goffee

and Jones (1998) categorized organizational culture into four main types based on two

dimensions: sociability and solidarity. Sociability can be defined as friendliness in relationships

between people in an organization (Rashid et al, 2007). It is valued for its own sake and

independent of its impact on the performance of the organization. Through friendships, ideas,

attitudes, interests and values are shared.

On the other hand, solidarity is the ability of people to pursue shared goals efficiently and

effectively for the larger good of the organization without much regard for the impact on

individuals and the relationships between them. Solidarity is favorable in the sense that it

generates single-minded dedication to the organization’s mission and goals, quick response to

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changes in the environment, and an unwillingness to accept poor performance. In this type of

culture, work roles are defined and understood and everyone is working for the overall good and

everyone held to the same high standards (Rashid et al, 2007). People in high-solidarity

organizations often trust their employers to treat them fairly, based on merit, with resulting

commitment and loyalty to the firm.

2.2.3 Types of Organizational Culture

According to Roos (2005), an organization’s culture may be regarded as consisting of a number

of cultural dimensions or domains, such as a performance domain, human resources domain,

decision-making domain, and relationships domain. He noted that a company’s concern for the

amount and quality of work that gets done, and its encouragement of the creativity that

accompanies the execution of tasks, for example, are indicative of its performance culture, as are

aspects such as its customer and commercial orientation. The human resources cultural domain

of the organization is reflected by its policies and views regarding the value and treatment of

employees, and its display of sincere concern, on various levels, for its employees.

The decision-making culture of an organization is displayed in large part by the formalization of

its structures and procedures and by the nature of its participative management approach

especially. The relationships culture is framed within the nature and strength of the lateral and

vertical relations between its members, as well as by its communication effectiveness and the

level of interpersonal cooperation experienced by employees (Roos, 2005). An excessive

performance emphasis by an organisation on the amount of work to be done by individual

employees has a decreasing effect on their job satisfaction (Roos, 2005).

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Goffee and Jones (1998) also categorized organizational culture into four main types based on

two dimensions: sociability and solidarity. The four main types are:

 communal culture;

 fragmented culture;

 networked culture; and

 mercenary culture.

According to Goffee and Jones (1998), culture is a community or the way in which people relate

to each other. The communal organization with high sociability and high solidarity is typical of

new, small, fast-growing companies. People are driven by common goals, and at the same time

are united by strong social bonds. According to Goffee and Jones (1998), fragmented

organizations might appear to be completely dysfunctional. The low sociability and low

solidarity of this organizational culture seems to leave it rudderless and ungovernable. The

networked organization has a culture of low solidarity and high sociability. High sociability is

evident from the frequent “water-cooler” conversations, and colleagues going to lunch together

and spending time in activities and social gatherings outside the workplace (Goffee and Jones,

1998). Finally, mercenary organizations with low sociability and high solidarity are focused on

strategy and winning in the marketplace (Goffee and Jones, 1998). They have clear priorities and

act quickly in response to outside events. Persons who do not perform are encouraged to go if

they are incapable of improvement.

Harrison and Stokes (1992) also define the four dimensions of organisational culture as follows:

Power dimension: Describes an organizational culture that is based on inequality of access to

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resources. It has a single source of power from which rays of influence spread throughout the

organization. This means that power is centralised and organizational members are connected to

the centre by functional and specialist strings.

Role dimension: This type of culture focuses mainly on job description and specialization. In

other words, work is controlled by procedures and rules that underlie the job description, which

is more important than the person who fills the position.

Achievement dimension: This often refers to a task culture, which entails organizational

members focusing on realising the set purpose and goals of the organization. The main strategic

objective of this culture is to bring the right people together, in order to achieve the

organizational goals.

Support dimension: Describes an organizational climate that is based on mutual trust between

the individual and the organization. A support-oriented organization exists solely for the

individuals who comprise it, and may be represented diagrammatically as a cluster in which no

individual dominates.

2.2.4 Variation in organizational culture

Organizational culture can vary in a number of ways. It is these variances that differentiate one

organization from the others. Some of the bases of the differentiation are:

a. Strong vs weak culture

Organizational culture can be labeled as strong or weak based on sharedness of the core values

among organizational members and the degree of commitment the members have to these core

values (Goffee and Jones, 1998). The higher the sharedness and commitment, the stronger the

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culture increases the possibility of behaviour consistency amongst its members, while a weak

culture opens avenues for each one of the members showing concerns unique to themselves. A

strong organizational culture increases behavioral consistency. In this sense, we should recognize

that a strong culture can act as a substitute for formalization (Dolan & Garcia, 2002). Robbins

and Judge (2009) discussed how formalization’s rules and regulations act to regulate employee

behavior. High formalization in an organization creates predictability, orderliness, and

consistency.

b. Soft vs hard culture

Soft work culture can emerge in an organization where the organization pursues multiple and

conflicting goals. In a soft culture the employees choose to pursue a few objectives which serve

personal or sectional interests (Goffee and Jones, 1998). Sinha (1990) has presented a case study

of a public sector fertilizer company which was established in an industrially backward rural area

to promote employment generation and industrial activity. Under pressure from local

communities and the government, the company succumbed to overstaffing, converting

mechanised operations into manual operations, payment of overtime, and poor discipline. This

resulted in huge financial losses (up to 60 percent of the capital) to the company.

c. Formal vs informal culture

Roles, responsibilities, accountability, rules and regulations are components of formal culture

(Goffee and Jones, 1998). They set the expectations that the organization has from every member

and indicates the consequences if these expectations are not fulfilled. Hellriegel, Slocum and

Woodman (2001:523) also described four types of cultures: bureaucratic culture; clan culture;

entrepreneurial culture; and market culture.

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Bureaucratic culture

An organization that values formality, rules, standard operating procedures, and hierarchical co-

ordination has a bureaucratic culture. Long - term concerns of bureaucracy are predictability,

efficiency, and stability. Its members highly value standardized goods and customer service.

Behavioural norms support formality over informality.

Clan culture

Tradition, loyalty, personal commitment, extensive socialization, teamwork, self- management,

and social influences are attributes of clan culture. Its members recognize an obligation beyond

the simple exchange of labour for a salary. The members understand that their contributions to

the organization may exceed any contractual agreements.

Entrepreneurial culture

High levels of risk taking, dynamism, and creativity characterize an entrepreneurial culture.

There is a commitment to experimentation, innovation, and being on the leading edge. This

culture does not just quickly react to changes in the environment - it creates change.

Market culture

The achievements of measurable and demanding goals, especially those that are financial and

market-based, characterize a market culture. Hard - driving competitiveness and a profit

orientation prevail throughout the organization. In a market culture, the relationship between

individual and organization is contractual. The individual is responsible for some levels of

rewards in return. A market culture does not exert much informal, social pressure on an

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organization’s members. They don’t share a common set of expectations regarding management

style or philosophy. The absence of a long-term commitment by both parties results in a weak

socializing process.

These four culture types all represent different types of management philosophies or styles. The

cultures of these organizations are governed by how these companies are run or the beliefs of the

founders of the organization. Essentially, the cultures in these organizations are driven top -

down, with emphasis on the type of business or industry that this organization serves (Goffee and

Jones, 1998).

Harrison and Stokes (1993:13) identify another four culture types. These four culture types are

power culture, role culture, achievement culture and support culture.

The power culture

A power – orientated organization is based on inequality of access to resources. In other words,

the people in power use resources to either satisfy or frustrate the needs of others, and, by so

doing, they control behaviour of others. Leadership resides in the person who is in charge, and

rests on the leader’s ability and willingness to administer rewards and punishments. At best, the

power - orientated leader is firm, fair and generous and has loyal subordinates.

The role culture

In a role culture orientated organization, structures and systems give protection to subordinates

and stability to the organization. The duties and rewards of employees’ roles are clearly defined.

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This is usually defined in writing as a job description. People in these organizations perform

specific functions in order to receive defined rewards and, both the individual and the

organization, are expected to keep to their parts of the bargain. The main values of a role -

orientated organization are order, dependability, rationality, and consistency and, at best, this type

of organization provides stability, justice, and efficient performance. People are protected in their

jobs and need to spend less time looking out for themselves, and can devote more energy to their

work.

The achievement culture

The achievement – orientated organization is known as the “aligned” organization because it

“lines people up” behind a common vision or purpose. This type of organization uses the mission

to attract and release the personal energy of its employees in the pursuit of common goals. There

is an inner commitment within these achievement-orientated individuals. Many people like their

work and want to make a contribution to society, thus enjoying an intrinsic reward.

The support culture

The support culture may be defined as an organization climate that is based on mutual trust

between the individual and the organization. In such organizations, people are valued as human

beings and are not just “cogs in a machine”. This culture centres on warmth and even love and it

makes people want to come to work in the morning, not only because they like their work but

also because they care for their colleagues.

These four types of culture all have different implications to the success of a business where the

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power culture is dependent on a central power source with rays of power and influence spreading

out from the central figure. These types of cultures are proud and strong and have the ability to

move quickly and can react well to threat and danger, as postulated by Handy (1993:184).

2.2.5 Levels of Organizational Culture

According to Goffee and Jones (1998), organizational culture can be viewed at three levels based

on manifestations of the culture in tangible and intangible forms.

1. At Level One the organizational culture can be observed in the form of physical objects,

technology and other visible forms of behaviour like ceremonies and rituals Though the culture

would be visible in various forms, it would be only at the superficial level. For example, people

may interact with one another but what the underlying feelings are or whether there is

understanding among them would require probing.

2. At Level Two there is greater awareness and internalization of cultural values. People in

the organization try solutions of a problem in ways which have been tried and tested earlier if the

group is successful there will be shared perception of that ‘success’, leading to cognitive changes

turning perception into values and beliefs.

3. Level Three represents a process of conversion. When the group repeatedly observes that

the method that was tried earlier works most of the time, it becomes the ‘preferred solution’ and

gets converted into underlying assumptions or dominant value orientation. The conversion

process has both advantages. The advantages are that the dominant value orientation guides

behaviour, however at the same time it may influence objective and rational thinking.

Schein (2004) also accentuates that three levels of culture exist within an organization. At the

outermost, most accessible level are those overt patterns of behaviour, which have become

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appropriate and acceptable within the organization. These behaviours are often shaped by a set of

central norms (Cabrera & Bonache, 1999), or values – the second layer in the organizational

culture continuum. Values, according to Gordon, (1991) are what ought to be. They are broad

tendencies to prefer certain states over others (Hofstede, 1998). Values are manifested by certain

symbolic tools (Smircich, 1983), such as symbols, which involve the arrangement of offices and

use of department titles (Ulrich, 1984); rituals, including evaluation and reward procedures and

farewell parties (Ulrich, 1984); as well as stories and myths which have been passed down

through the firm’s history (Smircich, 1983).

Fundamental assumptions are situated at the deepest, least accessible level of culture, and are the

hardest to change (Schein, 2004). They are those things which are commonly taken for granted

as ‘correct’ within the organization (Gordon, 1991). Schein (2004) states that it is these

assumptions which are the essence of organizational culture, as they underpin both the values

and beliefs which organizational members hold. The combination of these three layers of culture

provides stability to employees, as both meaning and predictability surface from these highly

embedded social phenomena. This allows for culture to survive within the organization even

when some members depart (Schein, 2004).

2.3 The importance of organizational culture

Mullins (1999:807) attests that culture helps to account for variations among organizations and

managers, both nationally and internationally. Culture helps to explain why different groups of

people perceive things in their own way and perform things differently from other groups.

Culture can help reduce complexity and uncertainty.

Saiyadin (2003:258) explains that culture performs the following functions:-

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 Culture supplements rational management: creation of work culture is a time-

consuming process. Therefore, organization culture cannot suddenly change the behaviour of

people in an organization. Culture communicates to people through symbols, values, physical

settings and language, and, thereby supplements the rational management tools such as

technology and structure;

 Culture facilitates induction and socialization: induction is a process through which

new entrants to an organization are socialized and indoctrinated in the expectations of the

organization; its cultural norms and undefined conduct. The newcomer imbibes the culture of the

organization, which may involve changing his / her attitudes and beliefs to achieving an

internalised commitment to the organization;

 Culture promotes a code of conduct: a strong culture in an organization explicitly

communicates modes of behaviour so that people are conscious that certain behaviours are

expected and others would never be visible. The presence of a strong culture would be evident

where members share a set of beliefs, values, and assumptions which would influence their

behaviour in an invisible way. Where culture has been fully assimilated by people, they

persistently indulge in a typical behaviour in a spontaneous way. Promotion of the culture of

quality can help achieve good business results; and

 Sub-cultures contribute to organizational diversity: sub-cultures, and sub-systems of

values and assumptions, which may be based on departmentalization, activity centres, or

geographical locations, provide meaning to the interests of localized, specific groups of people

within the macro organization. Sub-cultures can affect the organization in many ways: (i) they

may perpetuate and strengthen the existing culture; (ii) they may promote something very

different from those existing; (iii) they may promote a totally opposite sub-culture (beliefs and

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values) or counter culture when in a difficult situation. Schein (1999: 110) suggests that

organizational culture is even more important today than it was in the past.

Maximizing the value of employees as intellectual assets requires a culture that promotes their

intellectual participation and facilitates both individual and organizational learning, new

knowledge creation and application, and willingness to share knowledge with others (Saiyadin,

2003). Mullins (1999) draws further attention to the importance of culture by attesting to the fact

that, without exception, the dominance and coherence of culture proved to be an essential quality

of excellent companies. Moreover, the stronger the culture, the more it was directed to the

marketplace, the less need was there for policy manuals, organizational charts, or detailed

procedures and rules (Saiyadin, 2003). Therefore the importance of an organization’s culture

cannot be overemphasized. The beliefs, stories and symbols of an organization help shape the

culture of that organization and it is important for management to realise that culture is an

integral part of their business and every effort must be made to preserve or improve it.

2.4 Models of Organisational Culture

Different models of organisational culture exist in literature. Famous among these models are

Schein (1992), Kotter and Heskett (1992) and Hoftede et al (1990). The following section

presents these models.

2.4.1 Schein’s Model of Organizational Culture

Schein (1992) noted that culture exists at three successive levels as presented in figure 2.1 with

the most visible level of culture being its artefacts and creations, consisting of visible

organizational structures, processes and social environment. Artifacts which is the first level

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includes what is visible to the eyes, what one hears, and feels when first exposed to a culture and

comprises observable organizational structures and processes, language, technology, emotional

displays and other observable behaviours. Artifacts are supported by an organisation’s norms,

values and assumptions. Schein (1992) argues that at this level even though one visibly observe

various artifacts, one’s understanding of culture still develops from personal feelings and

reactions to what is visible.

At the second level, culture espouses values, helps to forecast what individuals will say in

various circumstances, as a result of assertions made by organisational members (Schein, 1992).

As noted by Schein (1984), values represent the principles and standards cherished by employees

of an organisation. Thus it forms the code of ethics of an organization. However, in comparison

to artifacts, this provides no indication of how an individual might actually behave since an

individual understanding of culture may develop from personal feelings and reactions to what is

visible. Thus true culture of every company is achieved when espoused values convert into

shared assumptions.

The third level involves basic assumptions which emerge from members of an organization in favour

of espoused values. In Schein’s model, an introduction of change at a high level will ultimately

result in transformative change throughout the lower levels.

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 Figure 2.1: Schein’s Model of Organizational Culture

Source: Schein (1992) Organizational Culture and Leadership,

2.4.2 Kotter and Heskett’s Model of Organisational Culture

Kotter and Heskett (1992) concur with Schein’s model and also define culture as norms of

behaviour and shared values amongst a group of people. In Kotter and Heskett (1992) model,

organizational culture is presented as having two levels differing in terms of their visibility and

their resistance to change. Culture thus refers to shared values amongst groups of people which

persist over time even after membership of the group changes. At this level, culture can be

difficult to change, because group members are unaware of the values that bind them together.

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2.4.3 Hofstede’s Model of Organisational Culture

Hofstede and Hofstede (1990) classify culture into four groupings, namely symbols, heroes,

rituals and values. Symbols are words, gestures, pictures that carry a specific meaning within a

culture. According to Hofstede (1980) heroes serve as models of behaviour within an

organization. Hofstede (1980) describes these layers as being similar to the successive skins of

an onion: from shallow superficial symbols to deeper rituals. The core of culture is formed by

values, which are broad tendencies to prefer certain states to others including non-specific

feelings of good and evil, normal and abnormal, rational and irrational, which are often

unconscious and rarely discussed (Hofstede and Hofstede, 1990).

2.5 Job Satisfaction

The concept of employee satisfaction has been a focus for research and practice for the last two

decades in particular (Greasley, et. al., 2005) and considered to be a critical issue for

organizational performance. In literature there are a large number of studies that analyze the term

from many different perspectives and its relationship with various organizational variables

(Lund, 2003). However there is no universal definition of employee satisfaction that exposes all

these dimensions at the same time (Bernal, et. al, 2005). Most of the definitions emphasize the

importance of employees’ job-related perceptions that link the expectations of them and what

they receive in return (Zaim and Zaim, 2008). Some researchers focus on the overall job

satisfaction or even life satisfaction of employees (Judge, et. al, 2005) whereas some others

underline a variety of satisfaction facets such as satisfaction with pay, promotion, supervisor, or

co-workers.

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Job satisfaction in traditional model mainly focuses on what an individual feels about his/her job

or pleasure feeling about job (Hussami, 2008; Crossman and Abou-Zaki, 2003). According to

Sabri et al (2011), job satisfaction has to do with individual’s perceptions and evaluation of his

job, and this perception is influenced by the person’s unique circumstances like needs, values

and expectations. Job satisfaction may also impact on employee behaviour like absenteeism,

complaints and grievances, frequent labour unrest and termination of employment (Locke, 1976;

Visser, Breed & Van Breda, 1997). Job satisfaction not only depends on the nature of the job, it

also depend on the expectation what’s the job supply to an employee (Hussami, 2008). Lower

convenience costs, higher organizational and social and intrinsic reward will increase job

satisfaction (Mulinge and Mullier, 1998; Willem et al., 2007).

Job satisfaction is complex phenomenon and it is influenced by the factors like salary, working

environment, autonomy, communication, and organizational commitment (Lane, Esser, Holte

and Anne, 2010; Vidal, Valle and Aragón, 2007; Fisher and Locke, 1992; Xie and Johns, 2000).

An important aspect of job satisfaction is that when people have to make a choice where they

want to work it also influences their intent to stay with the organization at current position (Lane,

Esser, Holte and Anne, 2010). If employees are more satisfied with their job it will enhance their

ability of creativity and productivity, it is also directly correlated with the customer satisfaction

(AL-Hussami, 2008). Job satisfaction is influenced by many factors such as: the working

conditions, work itself, supervision, policy and administration, advancement, compensation,

interpersonal relationships, recognition, and empowerment (Castillo & Cano 2004).

According to Quick (1998), each person has a different set of goals and can be motivated if

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he/she believes that: there is a positive correlation between efforts and performance; effective

performance will result in a pleasing reward; the reward will satisfy an important need; and the

desire to satisfy the need is strong enough to make the effort meaningful. In contrast, Rousseau

(1978) identified three components of employee satisfaction: they are characteristics of the

organization, job task factors, and personal characteristics. The characterization of the

organization and the job task factors can be regarded as work factors in job satisfaction, while

personal characteristics can be regarded as non-work factors of job satisfaction (Hagihara, et. al,

1998).

Employees are more loyal and productive when they are satisfied (Hunter & Tietyen, 1997), and

these satisfied employees affect the customer satisfaction and organizational productivity

(Potterfield, 1999). Employee satisfaction is defined as the combination of affective reactions to

the differential perceptions of what he/she wants to receive compared with what he/she actually

receives (Cranny, Smith, & Stone, 1992). Therefore, the organizations should try to supply the

employee expectations in order to approach the employee satisfaction (Aydin and Ceylan, 2009).

In addition, emotional state of the employees may also affect their satisfaction. Buitendach and

de Witte (2005) proffer the view that job satisfaction relates to an individual’s perceptions and

evaluations of a job, and this perception is in turn influenced by their circumstances, including

needs, values and expectations. Individuals therefore evaluate their jobs on the basis of factors

which they regard as being important to them (Sempane, Rieger & Roodt, 2002).

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2.5.1 Components (Factors) of Job Satisfaction

Byars and Rue (1997) identified five major components of job satisfaction namely: attitude

toward the work group, general working conditions, attitude toward the company, monetary

benefits, and attitude toward management. Other factors that affect job satisfaction include an

individual’s health, age, social status, social relationships, and perceived opportunities (Byars

and Rue, 1997).

According to Byars and Rue (1997), employees that tend to be satisfied are generally more

committed to the organization; whereas employee dissatisfaction can lead to several detrimental

behaviors (turnover, absenteeism, tardiness, etc.) To assist in the prevention of the detrimental

behaviors, organizations need to understand what leads to employee satisfaction. Generally

speaking, “having challenging and meaningful work leads to high work satisfaction and, if

rewarded by the organization, to higher satisfaction with rewards as well” (Harris and DeSimone,

1994, p. 414). A study conducted on quality work environments found that those individuals who

found their job meaningful also worked for organizations that were considered to be great places

to work (Caudron, 1997). It is important to understand the value behind each factor when

assessing the satisfaction levels of employees because satisfied employees can make the work

environment more pleasant.

2.5.2 Job Satisfaction Theories

In order to understand job satisfaction, it is important to understand what motivates people at

work. Campbell, Dunnette, Lawler and Weik (1970 cited in Smucker & Kent, 2004) categorized

job satisfaction theories into either content theories or process theories. Content theories are

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based on various factors which influence job satisfaction. Process theories, in contrast, take into

account the process by which variables such as expectations, needs and values, and comparisons

interact with the job to produce job satisfaction.

In terms of content theorists, there is an emphasis on the type of goals and incentives that people

endeavour to achieve in order to be satisfied and succeed on the job. Maslow, Herzberg, Alderfer

and McClleland focused on the needs of employees with respect to job satisfaction and

performance (Luthans 1998; Robbins, Odendaal & Roodt, 2003; Smith & Cronje, 1992).

2.5.3 Intrinsic and Extrinsic Job Satisfaction

Kalleberg (1977) proposed that job satisfaction consists of two components. These are intrinsic

(referring to the work itself) and extrinsic (representing facets of the job external to the task

itself) job satisfaction. Hirschfield (2000) stated that intrinsic job satisfaction refers how people

feel about the nature of the job tasks themselves whereas extrinsic job satisfaction refers how

people feel about aspects of the work situation that are external to the job tasks or work itself

(Shim, Lusch, & O’Brien, 2002).

2.5.4 Herzberg’s Two-Factor Theory

Regarding satisfaction, Herzberg is one of the most famous contributors to satisfaction theory. In

some of his earliest work, Herzberg, along with Mausner and Snyderman (1959) revealed the

importance of certain aspects of work that could be associated with employee satisfaction.

Herzberg’s ideas (1966) were that managers could use the factors known as “motivators” to

encourage employees in the workplace. These motivators are elements of a person’s job that lead

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to good feelings about their work and themselves; thus, one is motivated to perform job tasks and

will likely experience job satisfaction. He also believed that managers could try to eliminate

those factors, which lead to employee dissatisfaction, also known as the “hygiene factors” or

“hygienes” for short. Hygiene factors are elements that lead to negative feelings about one’s job

and oneself. These concepts will provide the catalyst for this study.

An interesting point of the theory is that lack of satisfaction does not equate to dissatisfaction.

Satisfaction and dissatisfaction are on two separate continuum. This suggests that when

employees do not perceive satisfaction among the motivators, they also may not perceive

dissatisfaction among the hygienes. Employees may well be in a state of limbo, where they are

neither satisfied nor dissatisfied. This state is quite unproductive for both employees and

organizations, as it does not fuel growth, creativity or innovation. Therefore, there is entity value

for organizational leaders and managers to recognize those aspects of the jobs within their

control that can promote satisfaction among employees and optimize them.

The factors associated with work considered motivators include: achievement, authority,

autonomy, tasks (the work itself), tenure on the job and future career plans. The factors

associated with work considered hygiene include: equality on the job, training, work schedule,

pay, working conditions and managerial relationships (Herzberg’s, 1966). Suggestions about how

to improve job satisfaction can be considered to be either a motivator or a hygiene factor,

depending on which aspect of the job that is referenced.

23
2.6 Relationships between employee motivation and job satisfaction

The basis upon which relationships between employee motivation and job satisfaction and

corporate culture are observed is provided by the notion that people’s perceptions and behaviour

in the workplace are driven by a set of personal, innate needs and by their perceptions of

numerous job-related and organisation-related aspects (Rothmann & Coetzer, 2002). Observation

of relationships between employee motivation and job satisfaction in the workplace specifically

is important, since several aspects of the work environment serve as powerful motivators to

employee performance and performance is inextricably linked to the success or failure of the

organisation (Roos, 2005).

A number of studies have shown that the extent to which people are motivated by challenging

tasks (Du Plessis, 2003; Rothmann & Coetzer, 2002) and by the sense that their abilities are

being stretched, directly impact on the job satisfaction they experience. People with a need for

achievement and who experience success acquire a stronger belief and confidence in themselves,

which encourages them to contribute towards the goals and objectives of the organisation (Roos,

2005). Hoole and Vermeulen (2003) found, for example, that pilots who enjoyed more social

interaction with colleagues, staff and clients experienced significantly higher levels of job

satisfaction than those who did not have much social contact with others at work. Social relations

with clients and subordinates were also found to elevate the job satisfaction of a small group of

managers from a variety of industries (Strydom & Meyer, 2002).

According to Roos (2005), the personal values people hold, compel many employees to uphold

their ideals and conform to high ethical and quality standards, even in the workplace. Hoole and

Vermeulen (2003) found that having to compromise these principles at work, for example by not
24
adhering to adequate safety standards, or producing work of inferior quality, diminishes the

satisfaction experience of such employees. Strydom and Meyer (2002) confirmed this finding by

stating that the content of the work itself has a direct effect on job satisfaction, in that the more

interesting the tasks an employee has to perform are, the higher his or her level of job satisfaction

is expected to be.

2.7 Relationship between the organization’s performance and employee’s job

satisfaction

Relationship between the organization’s performance and employee’s job satisfaction has always

been a complex one. Job satisfaction, linked to positive employee outcomes and firm

performance, has been the source of extensive scholastic research (Thierry, 1998; Thomas & Au,

2002). It has been argued by Rotenberry & Moberg (2007) that those employees who worked

quite efficiently or by making themselves highly involved has a higher level of job satisfaction

rather than those who consider their jobs as a task to be full filled. Yousaf (1998) revealed a

strong positive association between employee’s satisfaction and his performance at work.

According to Navaie-Waliser (2004) there could be so many factors that are playing their role in

establishment of the job satisfaction which includes pay, promotion, coworkers, supervisors etc.

Desirable employee outcomes associated with satisfied workers include job security and

workplace safety (Ritter & Anker, 2002) and advantageous firm results associated with satisfied

workers include productivity and efficiency increases (Hwang & Chi, 2005). These outcomes are

particularly desirable to the service industry’s product delivery (Mariyum et al, 2011).

Motivation is often associated with job satisfaction (Thierry, 1998). According to Mariyum et al

25
(2011), a common belief among today’s practicing managers is that satisfied employees are

likely to be motivated employees and that work-related satisfaction is an integral part of life

satisfaction. Again, these considerations are attractive outcomes to the service industry. Hofstede

(1980; 2005) suggests that motivation on the job is influenced by culture. (Hofstede and

Hofstede (2005) indicated that the concepts of job satisfaction, employee motivation and culture

intersect in the work environment. It is today’s managers’ challenge to optimize and promote

these workplace factors (Mariyum et al, 2011).

Research evidence indicated that employee satisfaction tends to be positively affected by an

organisation where unreasonable demands are not made in terms of the amount of work the

available employees are required to perform, and where effective measures are put in place to

ensure high standards of quality and safety (Roos, 2005). Cultures where creativity and

innovation are encouraged and rewarded are likely to elevate all-round job satisfaction too

(Roos, 2005).

Employees carrying unrealistic workloads are not likely to experience adequate levels of

satisfaction for any amount of time. Ritter and Anker (2002) concurred that employer attitudes,

particularly insofar as they embodied trust, open and honest relations with, and sincere concern

for employees, were significant determinants of job satisfaction. Strydom and Meyer (2002)

studied the attitudes and perceptions of middle-level managers towards several sources of job

satisfaction and posited that work conditions, be they loose and informal, or highly structured

and regulated, serve as powerful predictors of job satisfaction. They emphasised that it is

unlikely that there would be a standard set of working conditions that would appeal to all

26
employees in all spheres of working life (Roos, 2005).

However, regardless of the particular preference of a specific employee in this regard, his or her

level of job satisfaction is bound to be affected by the synergy or discrepancy between that

preference and the degree of formalisation encountered at work (Roos, 2005). Organisations that

have due regard for fairness and equal opportunities for all workers in especially areas such as

recruitment, selection, assessment and career development are likely to ensure higher levels of

satisfaction among their employees (Coetzee & Vermeulen, 2003; Ritter & Anker, 2002; Veeran

& Katz, 2002).

2.8 The relationship between corporate culture and job satisfaction

Despite the long-standing debate between researchers around the relationship between

organisational culture and job satisfaction (Sempane et al., 2002), and the view that a void

appears to exist in the literature examining this link (Lund, 2003), some support for relationships

between job satisfaction and certain dimensions of corporate culture has been found. Of specific

interest to the current study, organizational culture has been shown to play a key role in job

satisfaction (Adkins & Caldwell, 2004; Lund, 2003; Silverthorne, 2004) and higher retention

rates among personnel (Egan et al., 2004; MacIntosh & Doherty, 2005; Sheridan, 1992). Some

support for a relationship between job satisfaction and certain dimensions of corporate culture

has been found (Roos and Eeden, 2005).

Many authors (Du Preez, 2003; Gunter & Furnham, 1996; Moynihan & Pandey, 2007; Ritter &

Anker, 2002; Strydom & Meyer, 2002) have concluded that job satisfaction is facilitated

27
significantly by an organisational culture characterised by positive lateral and vertical

relationships among staff, and by effective and efficient interpersonal communication. Having

positive interpersonal relationships with people at work contributes to a supportive environment.

The need for achievement and an organisation’s performance culture are both positively related

to job satisfaction (Roos and Eeden, 2005). The influence of aspects of the decision-making

culture on job satisfaction depends on synergy between employee preference and the degree of

formalisation (Strydom & Meyer, 2002). Furthermore, the relationship between job satisfaction

and corporate culture is strengthened by synergy between individual motives and needs, and

organisational culture (Roos and Eeden, 2005). For example, the positive relationship between

job satisfaction and a culture of innovation and creativity is more prominent for those motivated

by opportunities for creativity (Johnson & McIntye, 1998). Finally, the relationship between a

supportive environment and job satisfaction is underlined by the need for such support, which

many people have, especially at work (Du Preez, 2003; Strydom & Meyer, 2002).

An empirical study by Lund (2003) examined the impact of the types of organizational culture on

job satisfaction in a survey of marketing professionals in a cross-section of firms in the USA.

Out of the 1,800 respondent questionnaires mailed, 360 usable questionnaires were received,

representing a 21% response rate. The results indicated that job satisfaction levels varied across

organizational culture typology.

Johnson (2004) opines that some components of organizational culture may not be positively

associated with job satisfaction. However, Navaie-Waliser et al. (2004) conclude that there is no

28
single measure to find out the level of job satisfaction and the impact of the organizational

culture on the job satisfaction of the employees. Kerego and Muthupha (1997) explain that

working conditions and channels of communications highly affect the job satisfaction. Huang

and Chi (2004) concluded that job satisfaction can make employees work hard and increase

operational performance of the organization. Therefore, when the employee’s requirements are

consistent with organizational culture, it can motivate them to work hard.

Sempane et al. (2002) indicated that there is a close relationship between job satisfaction and

organizational culture where job satisfaction is the result of organizational culture. In their study,

however, some facets prove positive relations and others negative relations. They argue that this

varied relation depends on employees that how differently they perceive cultural perspective.

Jiang and Klein (2000) argue that supportive culture of the organization increases the satisfaction

level of the employees and decreases the turnover ratios from the organization.

In an empirical study conducted by Gray, Densten and Sarros (2003) to examine executive

perceptions of organizational culture and job satisfaction in small organizations (that is, less than

100 employees), data were collected using a mailed survey resulting in a final total sample of

1,918 useable responses (39% response rate). The results indicated that where emphasis on

rewards and supportiveness were perceived as dominant cultural characteristics, there was a

strong association with job satisfaction. The results were consistent with findings of previous

research by Nystrom (1993) in which he found that employees in strong cultures tended to

express greater organizational commitment as well as higher job satisfaction.

Tang (2006) suggests that supportive culture of the organization raises the job satisfaction of the
29
employees. Huang and Chi (2004) indicted that if the employees are satisfied with the culture of

the organization it will motivate them to work hard and their obligations would be consistent

which finally would raise organizational performance. McHugh et al. (1993) argue that bad and

poor culture of the organization will lower the level of job satisfaction and lower productivity

from the employees, and finally all these factors contribute to decrease the efficiency and

performance of the organization.

Relationships with superiors, subordinates and colleagues in the workplace have been identified

as an important contributor towards employee satisfaction (Du Preez, 2003; Ritter & Anker,

2002; Strydom & Meyer, 2002). The consensus among these authors was that job satisfaction is

facilitated significantly by an organizational culture characterised by positive lateral and vertical

relations between staff, and by effective and efficient interpersonal cooperation (Roos, 2005).

Having positive interpersonal relations with people at work aids the need for support from others

that many people have, especially at work. This aspect of an organization’s cultural profile is

unfortunately largely beyond management’s control, unlike many other dimensions of corporate

culture (Roos, 2005).

Numerous studies have shown that an unrealistic workload has a decreasing effect on job

satisfaction (Bhargava & Kelkar, 2000). Aoms and Weathington (2008) argue that the

organization with strong and suitable culture positively affects not only the satisfaction of the

employees but also the job commitment of the employees with the organization. Kline and Boyd

(1994) in their study observed that employees at different levels are influenced by diverse work

aspects and different facets of work environment. Concern for quality in work output and the

30
safety and security of staff and clients (Cohen-Rosenthal & Cairnes, 1991; Moynihan & Pandey,

2007) as well as a culture of innovation and creativity (Coster, 1992; Johnson & McIntye, 1998)

enhance job satisfaction. Numerous studies have shown that an unrealistic workload has a

decreasing effect on job satisfaction (Agho et al., 1993; Bhargava & Kelkar, 2000).

Lee and Chang (2008) examined the relationship between organizational culture and employee

attitudes, particularly employee job satisfaction in the wire and cable manufacturing companies.

Their results suggested that an organization needs an innovative and group-oriented culture

which promotes employee job satisfaction (Mansor, 2010). In a study by Amos and Weathington

(2008), it was found that the perceived congruence of employee organizational culture by

employees is positively associated with satisfaction with the job and organization as a whole and

employee commitment to the organization.

Research evidence indicated that increased job satisfaction follows from cultures that encourage

and allow employees to participate in decision-making on various levels in the company (Roos,

2005). Specific research findings in this regard included, for example, that job satisfaction was

positively influenced by employees participating in the setting of job standards (by management

involving staff in decision-making by employees having some degree of influence over their own

jobs (Du Preez, 2003; Maree, 2000).

People draw satisfaction from being involved in the decisions about matters that affect them. It

may therefore be surmised that employees would favour organizations that follow a participative

management approach, since work life represents an important and substantial part of the lives of

31
many employees, where they need to be in a position to exercise an adequate amount of control

to feel not only safe and secure, but also valued for the contribution they make towards the

organization’s goals and success (Roos, 2005).

Since research has found that the aspects that motivate employees are the same as those affecting

their job satisfaction, it is reasonable to argue that employees would experience job satisfaction

where the various aspects of the organization’s culture are in harmony with their individual

motivation profiles, and that the relationship between employee motivation and corporate culture

would be established in this manner (Roos, 2005).

2.9 Theoretical Framework

The relationship between the dimensions of organizational culture and employees’ job

satisfaction is illustrated in Figure 2.2. In this theoretical framework, organizational culture

dimensions are independent variables and employee’s job satisfaction is a dependent variable.

The model suggests that the greater extent to which these five dimensions (namely

supportiveness, emphasis on rewards, innovation, performance oriented, stability and

communication) have on organizational culture, the greater the satisfaction of employees.

32
Figure 2.2: Relationship between corporate culture and job satisfaction

Independent Variables Dependent Variables

Organizational

Culture Dimensions:

 Stability and
Communication Job Satisfaction
 Supportiveness
 Innovation
 Performance Oriented
 Emphasis on rewards

Source: Adapted from Bashayreh (2009)

2.9.1 Stability and communication

To increase stability and job satisfaction, greater attention should be given to the professional

content of the work, the need for professional collaboration, and the heavy work load.

Communication can be referred to as such act which need understanding rather than the listening

and emphasize more on the symbols to transfer the meaning rather than the words (Bhargava &

Kelkar, 2000). Communication is one of the very important functions for all the department of

the organization, by considering organization as a social system than their activation and

coordination are focused on the communication (Goris, 2006). Goris (2006) claimed that

communication act as a predictor and moderator or both for increasing the communication

satisfaction of the employees which in turn increases the job satisfaction.

2.9.2 Supportiveness

Employee satisfaction is a key attribute of the engaged employee who embodies a high degree of

33
motivation and sense of inspiration, personal involvement and supportiveness (Bashayreh, 2009).

2.9.3 Innovation

Innovation is likely to be more strongly associated with employee’s satisfaction in the

contemporary global business environment than in earlier environments. Harrison, McKinnon,

Wu & Chow (2000) and Thomas & Mueller (2000) are just two of recent references that can be

called on to evidence the importance of innovation, creativity and entrepreneurship for

organizational survival and prosperity in the contemporary global environment “characterized by

unprecedented levels of technological change, product and service innovation, and intense global

competition” (Harrison et al., 2000: 489).

2.9.4 Performance-oriented

Companies seek to mobilize all employees and stakeholders, notably dealers and distributors,

toward clear business objectives measured by sales, profits, customer satisfaction, and

productivity (Bashayreh, 2009).

2.9.5 Emphasis on reward

Gaining an employee’s satisfaction with the rewards given is not a simple matter. According to

Bashayreh (2009), it is a function of several factors that organizations must learn to manage:

1. The individual’s satisfaction with rewards is, in part, related to what is expected and how

much is received. Feelings of satisfaction or dissatisfaction arise when individuals compare their

input - job skills, education, effort, and performance – to output - the mix of extrinsic and

intrinsic rewards they receive (Bashayreh, 2009).

34
2. Employee satisfaction is also affected by comparisons with other people in similar jobs

and organizations. In effect, employees compare their own input/output ratio with that of others.

People vary considerably in how they weigh various inputs in that comparison. They tend to

weigh their strong points more heavily, such as certain skills or a recent incident of effective

performance (Bashayreh, 2009). The problem of unrealistic self-rating exists partly because

supervisors in most organizations do not communicate a candid evaluation of their subordinates’

performance to them. Such candid communication to subordinates, unless done skillfully,

seriously risks damaging their self-esteem (Bashayreh, 2009). The bigger dilemma, however, is

that failure by managers to communicate a candid appraisal of performance makes it difficult for

employees to develop a realistic view of their own performance, thus increasing the possibility of

dissatisfaction with the pay they are receiving (Searle and John, 1990).

2.10 Conclusion

Organizational culture is a significant driver of employee engagement, where employees must be

expected to cooperate and work together, but also to take charge and provide a voice for the

customer within the organization (Popescu and Grigore, 2007). Organizations with satisfied

employees have customers who use their products more, and increased customer usage leads to

higher levels of customer satisfaction. It is an organization’s employees who influence the

behavior and attitudes of customers. In the end, customers who are more satisfied with the

organizations’ products are less expensive to serve, use the product more and, hence, are more

profitable customers (Popescu and Grigore, 2007).

35
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