Job satisfaction and Employee Loyalty represents one of the most key challenges faced by managers today when it comes to managing their employees. Many researchers have demonstrated in their studies, the large impact of job satisfaction on the motivation of employees, while the level of motivation has an impact on productivity, and hence also on overall performance of business organizations.

Employees are a vital resource for all organizations, especially since they represent a significant investment in terms of locating, recruiting, and training let alone salaries, healthcare plans, bonuses, etc. The management of many organizations develops their training programmes, benefit packages, performance appraisal and work system based on their company policy. Usually these policies are aimed at developing loyal employees because this leads to a more lengthy tenure. The longer an employee works for a company the more valuable they become.

JOB SATISFACTION:

The term Job satisfaction was brought to limelight by Hoppock (1935). Hoppock described job satisfaction as, “any combination of psychological, physiological and environmental circumstances that cause and person truthfully to say I am satisfied with my job.”

Job satisfaction is basically refers to a person’s feeling towards their job which acts as a motivation to work. Job satisfaction is an individual’s feeling regarding his or her work. It can be influenced by a various factors. Job satisfaction is under the influence of a series of factors such as: The nature of work, Salary, Advancement opportunities, Management, Work groups and Work conditions.

Job satisfaction represents a combination of positive or negative feelings that workers have towards their work. Meanwhile, when a worker employed in a business organization, brings with it the needs, desires and experiences which determinates expectations that he has dismissed. Job satisfaction represents the extent to which expectations are and match the real awards. Job satisfaction is closely linked to that individual's behaviour in the work place (Davis et al.1985).

Job satisfaction is a worker’s sense of achievement and success on the job. It is generally perceived to be directly linked to productivity as well as to personal well-being. Job satisfaction implies doing a job one enjoys, doing it well and being rewarded for one’s efforts. Job satisfaction further implies enthusiasm and happiness with one’s work. Job satisfaction is the key ingredient that leads to recognition, income, promotion, and the achievement of other goals that lead to a feeling of fulfillment (Kaliski, 2007).

Job satisfaction can be defined also as the extent to which a worker is content with the rewards he or she gets out of his or her job, particularly in terms of intrinsic motivation (Statt, 2004).

The term job satisfaction refers to the attitudes and feelings people have about their work. Positive and favourable attitudes towards the job indicate job satisfaction. Negative and unfavourable attitudes towards the job indicate job dissatisfaction (Armstrong, 2006).

Job satisfaction is the collection of feeling and beliefs that people have about their current job. People’s levels of degrees of job satisfaction can range from extreme satisfaction to extreme dissatisfaction. In addition to having attitudes about their jobs as a whole. People also can have attitudes about various aspects of their jobs such as the kind of work they do, their co-workers, supervisors or subordinates and their pay (George et al., 2008).

Job satisfaction is a complex and multifaceted concept which can mean different things to different people. Job satisfaction is usually linked with motivation, but the nature of this relationship is not clear. Satisfaction is not the same as motivation. Job satisfaction is more of an attitude, an internal state. It could, for example, be associated with a personal feeling of achievement, either quantitative or qualitative (Mullins, 2005).

We consider that job satisfaction represents a feeling that appears as a result of the perception that the job enables the material and psychological needs (Aziri, 2008).

EMPLOYEE LOYALTY

Employee loyalty can be defined as a psychological attachment or commitment to the organization and develops as a result of increased Job satisfaction. Job satisfaction results from a process of internal evaluation, and if an employee’s expectation level is met or exceeded, then satisfaction grows. Employee loyalty then develops into a generalized emotional attitude towards the organization. In other words, the more satisfied an employee is regarding his or her working environment, the more likely that he or she will develop a sense of commitment towards the organization in general.

Employee attitudes towards the organization then give rise to the behavioural component of loyalty. An employee who has developed affection to the organization is more likely to demonstrate loyal behaviours and work towards the overall goals of the organization, such as improved productivity, greater efficiency, and a high-quality service orientation to customers.

Employee loyalty (typically synonymous with commitment) to the organization has sometimes been viewed as an attitude. However, it is not so much an attitude (or thought component) that is important in organizations, but rather it is the bottom-line action component (Meyer and Allen, 1991). Employee loyalty is the willingness to remain with the organization (Solomon, 1992). Employee loyalty can be defined as employees being committed to the success of the organization and believing that working for this organization is their best option. Not only do they plan to remain with the organization, but they do not actively search for alternative employment and are not responsive to offers (The Loyalty Research Center, 1990). Employee loyalty is an organizational citizenship behaviour that reflects the allegiance to the organization to the promotion of its interests and image to the outsiders. (Bentten Court, Gwinner and Meuter, 2001). Employee loyalty is a manifestation of organizational commitment, the relative strength of an individual’s identification with and involvement in a particular organization (Mowday, Porter and Steers 1982), Based on internalization and identification (O’Reilly and Chatman 1986). This behaviour’s can be characterized by three related factors. They are strong belief and acceptance of the organization’s goals and values, a willingness to exert considerable effort on behalf of the organization and a strong desire to maintain membership in the organization. (Mowday, Porter and Steers 1979).

2.0 LITERATURE REVIEW:

Hassan et al (2013) found that compensation was the most important factor for job satisfaction whereas employee empowerment was also a significant factor for employee loyalty. Whereas, Hooi Lai Wan(2013) in his study, revealed that there existed no correlation between employee loyalty and the extent of Japanese style of Human Resource Management policies used at workplace. Jain and Singh (2013) stated that employee attitudes reflect the values of the company. Employee satisfaction is extremely important especially in the areas of sales and services as they represent the company to customers. Khare and Pandey (2012) studied the impact of job satisfaction and organisational commitment and their impact on employee loyalty and found out that there was an impact of Job satisfaction and organisational commitment on employee loyalty. Kumari and Pandey (2011) implied that job performance was comparatively high when positive beliefs and affective experiences are salient and thus predominate at a certain point in time but that their performance may be comparatively low at other times when negative beliefs and affective experiences are salient and predominate. Kabir and Parveen (2011) tested the factors affecting job satisfaction and suggested that the managers should focus on various factors that affect and enhance the employee job satisfaction for better performance of the organisation. Khuong and Tien (2013) argued that in order to achieve high employee loyalty, companies in banking industry should achieve high level of employee job satisfaction, enhance supervisor support and teamwork among employees, and provide good working environment. Abugre and Sarwar (2013) identified that the reward system in an organisation plays a significant role in increasing the job satisfaction of employees, higher rewards and satisfied employees at work results in higher productivity of Business organizations. Adjetey and Prako (2013) revealed that there were significant linear correlations among employee loyalty, engagement and performance. They also found out significant positive correlations of human relation, leadership style, job content, personal development, creativity and their effect on employee loyalty. Bauer (2004)showed that higher involvement of workers in high performance workplace organisations is associated with high level of job satisfaction. This positive effect is dominated by worker’s involvement in flexible work system, workers particularly associated with opportunities in the organisation regarding functional autonomy and coordination among workers. Akbar et al (2011) identified that employee empowerment has positive and significant impact on job satisfaction they also found that there existed significant difference between male and female employees regarding job satisfaction level, male employees found to be more satisfied with their jobs.

3.0 OBJECTIVES:

· To design, develop and standardize a measure to evaluate job satisfaction and employee loyalty.

· To find out the various factors underlying Job satisfaction and employee loyalty.

· To study the impact of job satisfaction on employee loyalty among academicians.

· To identify new areas for further research.

4.0 HYPOTHESIS FRAMED:

· H0:There is no significant impact of job satisfaction on employee loyalty among academicians.

5.0 RESEARCH METHODOLOGY:

Data Collection and Measurement Scale

The Study was based on Academicians in north India. The main purpose of the study was to see the impact of job satisfaction on employee loyalty among academicians. For this purpose data was collected from the academicians working in various colleges and institutes. The research was based on primary data. The instrument for data collection was a self-designed questionnaire which was administered personally to the employees working in educational sector to collect data. The questionnaire was based on 5-point (Likert) scale ranging from 1= Strongly Disagree to 5= strongly agree. In this study, Judgmental (non-probability) sampling technique was used. A sample of 100 employees was selected for the purpose of this study.

Data Analysis and Interpretation

Statistical Software SPSS version 22 has been used for data analysis. Item to total correlation was used to establish the internal consistency of the questionnaire; Cronbach’s alpha was used to measure their liability of the measurement scale. Factor analysis was used to find out the factors underlying Job satisfaction and employee loyalty. Regression Analysis was applied to find out the impact of job satisfaction (independent variable) on employee loyalty (dependent variable).

6.0 RESULTS:

After studying the data of 100 academicians by applying the statistical tools following results were found:

CONSISTENCY MEASURE

Consistency of all the factors in the questionnaire was checked through item to total correlation. In this correlation of every item with the total was measured and the computed value was compared with standard value. Only those factors/statements were accepted whose value was more than the standard value.

RELIABILITY MEASURE

Job Satisfaction: Reliability of the measure was tested using SPSS software and the Cronbach’s Alpha value was found to be 0.802. The face validity was checked and found to be high.

Employee Loyalty: Reliability of the measure was tested using SPSS software and the Cronbach’s Alpha value was found to be 0.821. The face validity was checked and found to be high.

HYPOTHESIS TESTING:

H0: There is no significant impact of job satisfaction on employee loyalty among academicians.

Table 1.0 Showing Regression Coefficient Values
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
Model		B	Std. Error	Beta	t	Sig.
1	(Constant)	14.346	3.597		3.989	.000
1	Job Satisfaction	.363	.074	.445	4.917	.000
a. Dependent Variable: Employee Loyalty

Regression analysis was applied between Job satisfaction (independent variable) and Employee Loyalty (dependent variable) among academicians. The results of regression indicate that independent variable (Job Satisfaction) has significant relationship with dependent variable (employee loyalty) signified by the coefficient of Beta factor of job satisfaction is 0.445 and T value is 4.917 is significant at 0.0 significant level hence it can be said that job satisfaction is having significant impact on employee loyalty.

The null hypothesis that there is no significant impact of job satisfaction on employee loyalty is not accepted which means that there is significant impact of job satisfaction on employee loyalty among academicians.

FACTOR ANALYSIS (JOB SATISFACTION): The raw scores of 14 items were subjected to factor analysis to find out the factors that contributed towards Job Satisfaction. After factor analysis, four factors are identified. The factors were career growth, motivation, work place environment and self-satisfaction.

1. CAREER GROWTH (4.259): This factor has emerged as the most important determinant of employee loyalty with 30.424% of variance. The major elements constituting this factor include; Chances of Promotion (0.872), Salary and Compensation (0.860), Highly Motivated to do this Job (0.697) and Opportunities to learn new skills (0.691).

2. MOTIVATION (2.124): This factor has emerged as an important determinant of employee loyalty with 15.171% of variance. The major elements constituting this factor include; Job Security (0.722), Satisfaction with the sort of work (0.671), job is according to the knowledge and skills (0.612) and clear understanding of job responsibilities (0.529).

3. WORK PLACE ENVIRONMENT (1.438): This factor has emerged as an important determinant of employee loyalty with 10.273% of variance. The major elements constituting this factor include; Relationship with Colleagues (0.794), Fair job evaluation (0.602) and Timings of the job (0.472).

4. SELF SATISFACTION (1.065): This factor has emerged as an important determinant of employee loyalty with 7.605% of variance. The major elements constituting this factor includes; Opportunities to participate in decision making(0.873), Work recognition by seniors (0.786) and Satisfaction with the Current Designation (0.423).

FACTOR ANALYSIS (EMPLOYEE LOYALTY): The raw scores of 9 items were subjected to factor analysis to find out the factors that contributed towards Employee Loyalty. After factor analysis, four factors are identified. The factors were belongingness, job involvement and organisational commitment.

1. BELONGINGNESS (3.842): This factor has emerged as the most important determinant of employee loyalty with 42.689% of variance. The major elements constituting this factor include; emotionally attached to job (0.790), would not change my job (0.768), would recommend this job to others(0.744) and fulfil my career goals with this job (0.713) and would continue this job in future (0.682).

2. JOB INVOLVEMENT (1.626): This factor has emerged as an important determinant of employee loyalty with 18.068% of variance. The major elements constituting this factor include; look for ways to improve work at job (0.921), speak positively about the job to friends (0.797).

3. ORGANIZATIONAL COMMITMENT (1.180): This factor has emerged as an important determinant of employee loyalty with 13.107% of variance. The major elements constituting this factor include; Loyal to the organisation (0.864), committed to organisation’s success (0.817).

7.0 CONCLUSION:

The objectives of the study were to find out the impact of job satisfaction on employee loyalty among academicians and to find out the various factors underlying Job satisfaction and employee loyalty. The findings of the research conclude that there is a significant impact of job satisfaction on employee loyalty among academicians. The underlying factors of job satisfaction emerged from this study are career growth, motivation, work place environment and self-satisfaction. The underlying factors of employee loyalty emerged from this study are belongingness, job involvement and organisational commitment.

8.0 REFERENCES

Hoppock, R. (1935), Job Satisfaction ,New York: Harpe

Mowday, R.T., Porter, L.W., and Steers, R.M. (1979). “The Measurement of organizational commitment, Journal of Vocational Behavior, 14, 224-227.

Mowday, R.T., Porter, L.W., and Steers, R.M. (1982), Employee-origanization linkages. New York: Academic Press

Meyer, J.P., and Allen, N.J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1, 61-89.

Solomon, C.M. (1992, Sept.). The loyalty factor, Personnel Journal, 52-62.

The Loyalty Research Center: 317-465-1990, www.loyaltyresearch, pp 1-5

Parvin, M.M. and Nurul Kabir, M.M.( 2011). Factors affecting employee job satisfaction of pharmaceutical sector , Australian Journal of Business and Management Research, Vol.1 (9):113-123, December-2011 . Accessed online on 2nd January,2013 at http://www.ajbmr.com/articlepdf/AJBMR_19_23i1n9a13a.pdf

Reilly, C.R. (1991). Organizational Behavior. Annual Review of Psychology, pp. 427- 458

Geeta Kumari and Dr. K.M.Pandey, Analysis of an Individual’s Behaviour in Work Environment for a Better Output, International Journal of Innovation, Management and Technology vol. 2, no. 2, pp. 156-161, 2011.

Abugre, J.B. (2011). Perceived Satisfaction in Sustained Outcomes of Employee Communication in Ghanaian Organizations, Journal of Management Policy and Practice vol. 12(7), 37-49.

Bettencourt, L. A., Gwinner, K. P., andMeuter, M.L. (2001).A comparison of Attitude, Personality and Knowledge Predictors of Service-Oriented Organizational citizenship Behaviour. Journal of Applied Psychology 86 (1), 29-41.

Davis, K.Y. and Newstrom, J.W. (1999),Comportamien to Humano en al Trabjo: Comportamien to Organizational, 10th ed., McGraw-Hill, Mexico City

Received on 02.02.2016 Modified on 17.02.2016

Asian J. Management. 2016; 7(2): 105-109.

DOI: 10.5958/2321-5763.2016.00015.9