Job satisfaction is actually not a good indicator of organizational performance.

Essay by faroUniversity, Bachelor'sC+, May 2007

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Essay topic; Job satisfaction is actually not a good indicator of organizational performance.

Employees become significantly importance for the organization over the past decade. New theories of management are focus on employees and try encouraging them to work more to achieve higher organization performance. In Organizational behavior field, attitude of the employees are importance to managers because attitude can identify of potential problems in the organization and also so they influence behavior, satisfied and committed employees. (Robbins, Millett, & Waters-Marsh, 2004))

This essay focuses on work-relate attitudes indicator to organization performance and focus more closely on whether job satisfaction attitude is good for indicate organization performance, which will shows cases in support the need of job satisfaction in organization and debate the need of job satisfaction as a performance indicator.

According to Yeo, R. (2003), organization performance indicator can be divided in to2 types, Financial versus non-financial. First, in financial or tangible indicator for example; budgets, assets, operations, products, services, markets are used to indicate organization performance.

Second, Organizational performance has been given another perspective involving non-financial measures such as attitude, commitment and the way individuals acquire knowledge. As in non-financial indicator of organization performance are intangible compare to the first one, which was lead to disagreement of whether which of non-financial indicator is the most accurate for measuring organization performance. As state in (Robbins, Millett, & Waters-Marsh, 2004) the most commonly 3 intangible measure of organization performance which is refers to work-relate employees attitude are job satisfaction, job involvement and organizational commitment. Job satisfaction of the employees can lead to productivity, absenteeism and turnover. From Marico industries case (Sivakumar, 1998.) In a unique experiment, Marico Industries succeeded in created a good work environment and provided job satisfaction through a structured program of job rotation at its factory at Kaanjikode,