Title: Main factors affecting employee satisfaction and its impact on overall organisational performance

Authors: Prodromos D. Chatzoglou; Anastasios D. Diamantidis; George Tziakis

Addresses: Department of Production and Management Engineering, Democritus University of Thrace, 12 Vas. Sofias Str., 67133 Xanthi, Greece; Business School, Hellenic Open University, Patras, Greece ' Department of Production and Management Engineering, Democritus University of Thrace, 12 Vas. Sofias Str., 67133 Xanthi, Greece; Business School, Hellenic Open University, Patras, Greece ' Business School, Hellenic Open University, Patras, Greece

Abstract: It is well known that employee satisfaction is affected by several organisational factors. This research proposes and empirically tests a new conceptual model with the aim to unveil which factors affect employee performance and the overall organisational performance during a long period of severe economic crisis. The factors incorporated into the model are grouped into four groups, namely, employee satisfaction antecedents, satisfaction mediators, main behavioural effects and final performance. Data from 414 employees from various firms were used to test the validity of the proposed theoretical framework. Structural equation modelling (SEM) was used as the main data analysis technique. The results suggest that organisational management is the single most important factor in determining whether or not workers are happy in their jobs. The effectiveness of management at all levels of an organisation has the greatest bearing on its performance, followed by employees' attitudes and performance.

Keywords: employee satisfaction; employee performance; firm performance; employee fulfilment; loyalty; commitment.

DOI: 10.1504/IJBPM.2024.139392

International Journal of Business Performance Management, 2024 Vol.25 No.4, pp.457 - 491

Accepted: 30 Jan 2023
Published online: 02 Jul 2024 *

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