Employee Satisfaction and Productivity a Case Study Based on the ASDA Retailer Case Study

Employee Satisfaction

And Productivity

employee satisfaction and productivity

ASTRACT

Employee satisfaction directly links to organizational excellence and/or productivity. Maybe… Maybe not… Researchers regularly debate exactly what components contributing to employee satisfaction and the company's and/or organization's productivity. Similarly, employers and employees do not typically agree on the reason/s an employee stays committed to a company or what factors contribute to an employee's satisfaction with the company. During the mixed-method case study, the researcher focuses on employee satisfaction and productivity as well as investigates whether a correlation exists between employee satisfaction and productivity/output. The study also examines factors that contribute to employee satisfaction, both on and off the job, and considers if "satisfaction" can be measured. If "yes," the researcher discusses how one can measure employee satisfaction; if "no," the researcher explains the reason/s for the incapability.

The hypothesis for the study asserts: A positive correlation exists between employee satisfaction and productivity/output. To further investigate the validity of the study's hypothesis confirming that a correlation exists between employee satisfaction and productivity/output, the researcher created a survey which a number of participants completed anonymously. The researcher also recounts interviews with a several colleagues of ASDA.

TABLE OF CONTENTS

CHAPTER I

INTRODUCTION

1

Links to Question

1

Area of Study

2

Rationale for Study

3

Significance of Study

3

Organization of Study

3

Hypothesis & Research Questions

4

Study Aim and Objectives

5

Conclusion

6

CHAPTER II

LITERATURE REVIEW

7

For Success or Satisfaction

7

Employee satisfaction

9

Employer/Employee Perceptions of Employee Satisfaction

12

Factors Contributing To Employee Satisfaction

14

ASDA Reports

18

Measuring Employee Satisfaction and Productivity

21

ASDA Interviews

24

Conclusion

30

CHAPTER III

METHODOLOGY

36

Findings from Measuring Data 36

36

Likert Type Format Scales

32

CHAPTER IV

ANALYSIS

36

Findings from Measuring Data

36

Factors Contributing to Employee Satisfaction

38

ASDA Reports

38

Measuring Employee Satisfaction and Productivity

39

CHAPTER V

CONCLUSION

42

Hypothesis Validity Confirmed

42 Recount of Study Aim/Objectives

43

Study Review

44 Employer/Employee Perceptions of Employee Satisfaction

44

Factors Contributing to Employee Satisfaction

45

ASDA Reports

45

Measuring Employee Satisfaction and Productivity

45

ASDA Interviews

46

Conclusion

46

BIBLIOGRAPHY

48

APPENDIX A

52

ASDA Employee Satisfaction Questionnaire

53

LIST OF FIGURES

Figure 1: ASDA's Central Office in Canberra

20

Figure 2: Factors Driving Employee Satisfaction

37

Figure 3: Eight Key Components for Satisfied Employees

38

Figure 4: ASDA Staff Survey Satisfaction Ratings

39

Figure 5: Three Simple Questions to Address Employee Satisfaction

39

Figure 6: Metrics Confirming Organization's Performance

40

Table 1: Types of Evidence

8

8

Table 2: Considerations for Creating Survey

35

Table 3: Employee Satisfaction Perceptions

37

Table 4: Employee Satisfaction Survey Considerations

40

ABBREVIATIONS

ASDA: initially Associated Dairies & Farm Stores Limited (ASDA 2005).

CSR: Corporate Social Responsibility (ASDA 2008).

ESI: Employee Satisfaction Index (Howell 2006, p. xiii).

OWL: Quality of Work Life (Howell 2006, p. 8).

RBT: Resource-Based Theory (Yang 2009, ¶ 1).

SHRM: Society for Human Resource Management (Clark 2005, ¶ 1).

TL: Transformational Leaders (Yang, 2009, Theoretical Background… Section ¶ 2).

CHAPTER I

INTRODUCTION

"Employee satisfaction doesn't mean that work is easy or that employees are always happy.

Instead, satisfaction means committed employees who are willing to give their 'discretionary energy' to their work"

(Lavigna, 2010, What Drives… Section, ¶ 2).

Links to Question

Employee satisfaction directly links to organizational excellence and/or productivity. Perhaps, satisfied employees do in fact "create value in the services provided to customers, which in turn, has the potential to lead to customer satisfaction and subsequent loyalty," as well as productivity, as some researchers, like Andrew Robson, David Yarrow, and Jane Owen (2005) all with Newcastle Business School, Northumbria University Tyne, UK, argue. Or perhaps, employee satisfaction does not directly link to the organization's productivity. Perhaps, the employee's productivity and/or quality of the organization's products/services influence his satisfaction. In the study, "Does quality drive the employee satisfaction in the UK learning sector?," as Robson, Yarrow, and Owen examine the link between organizational performance and employee satisfaction, they, as various other researchers, find a number of contentions contribute to employee satisfaction.

Just as researchers do not all agree regarding components contributing to employee satisfaction and the organization's productivity, employers and employees do not typically agree on the reason/s an employee stays committed to a company or what factors contribute to an employee's satisfaction with the company.Perceptions of both the company and the employee may be subject to change as circumstances for both vary at times. During the mixed-method, qualitative case study, the researcher focuses on employee satisfaction and productivity as well as investigates whether a correlation exists between employee satisfaction and productivity/output as well as examines factors that contribute to employee satisfaction, both on and off the job. The study also considers if "satisfaction" can be measured. If "yes," the researcher discusses how one can measure employee satisfaction; if "no," the researcher explains the reason/s for the incapability.

Area of Study

The location for the present study encompasses areas throughout the world as employees and productivity comprise global contemporary concerns and interests. The researcher, albeit, particularly focuses on ASDA, located in the UK. On July 26, 1999, Wal-Mart, a company founded in the United States (U.S.), purchased ASDA, initially founded in 1965 as Associated Dairies & Farm Stores Limited. During 2003, ASDA reportedly claimed the title of being the best company to work for in the UK. At one point during ASDA's history, however, colleagues described the company as the worst of all UK employers (ASDA, 2005).

No matter the location of the company or the organization, Bob Lavigna (2010), vice president of research for the Partnership for Public Service, asserts that when an organization has high levels of engagement, customer satisfaction as well as performance and productivity naturally follows. In the journal article, "Driving performance by building employee satisfaction and engagement: Good government requires good people, which is why the key to meeting our current challenges is talent-committed and engaged talent," Lavigna stresses that for a company or organization to obtain the maximum results from their investments, they should focus on employee engagement, which universally leads to employee satisfaction and links to the organization's productivity.

Rationale for Study

The primary reason/s for choosing to focus on employee satisfaction and productivity evolves from the interest in employee satisfaction as it links to the researcher's professional pursuit of a future in managing an organization and perhaps ultimately owning and operating a business. The researcher asserts that a better understanding of employee satisfaction and whether or not it directly links to organizational excellence and/or productivity will not only help the researcher professionally, but will also help readers as it relates contemporary considerations to ultimately contribute to the organization's success. As most individuals work as an employee or hold a position of leadership supervising employees at one point in their lives, employee, employee satisfaction affects the majority of individuals.

Significance of the Study

Increasing global competition mandates that contemporary companies and organizations maximize their productivity and quality to succeed. In the journal article, "Work attitude, loyalty, and employee turnover," Joel Tan, a research assistant, Vicky Tan, Professor, with the faculty of arts and social sciences, National University of Singapore and Tan Ngoh Tiong (2007), Professor of social work at Augsburg College, Minnesota, explain that employees with higher job satisfaction contribute to higher productivity. This study proves significant as it challenges readers to consider employee satisfaction and productivity as well as whether a correlation exists between employee satisfaction and productivity/output and what factors contribute to employee satisfaction, both on and off the job.

Organization of Study

The organization of the thesis includes the following sections:

1. Introduction

2. Review of Literature

3. Methodology

4. Analysis

5. Discussion, Conclusion and Recommendations

Hypothesis and Research Questions

During the study's quest to determine whether a correlation exists between employee satisfaction and productivity/output as well as examining factors that contribute to employee satisfaction, both on and off the job, the researcher seeks to determine the validity of the dissertation's hypothesis. The hypothesis for the study asserts: A positive correlation exists between employee satisfaction and productivity/output. To help determine the validity of the hypothesis, he researcher addresses the following three sub-questions?

1. What factors contribute to employee satisfaction, both on and off the job?

2. Can employee "satisfaction" be measured?

3. If employee "satisfaction" can be measured, how can this be done? If employee

"satisfaction" cannot be measured, what reasons may contribute to the incapability? The researcher also asserts that a correlation does exist between employee satisfaction and productivity/output and that "yes," satisfaction can be "measured."

To further investigate the validity of the study's hypothesis confirming that a correlation exists between.....