Abstract

The purpose for this study is ‘‘The Effect of Job Satisfaction on Employees Performance in Microfinance Institutions’’. Its specific objectives are to examine the effect of intrinsic job satisfaction on employee performance of MFIs and to assess the effect of extrinsic job satisfaction on employee performance of MFIs.

A descriptive research design was adopted as appropriate study designs were a sample of 40 employees of UNICs microfinance were selected using simple random and purposive sampling techniques. It also combined quantitative as well as qualitative research approaches.

The quantitative methods of data collection were used in this work were a self-administered questionnaire composed of closed ended, and likert scale questions was used to collect data from the respondents. Data obtained through a structured questionnaire were analysed using analysed using descriptive statistics and the multiple regression analysis (Ordinary least square Regression technique) with the help of Statistical Package for Social Sciences (SPSS) software. The findings show that job satisfaction has a significant impact on employee’s performance of MFIs.

Both intrinsic job satisfaction and extrinsic job satisfaction has a positive and significant effect on employee’s performance of UNICs microfinance. The study therefore recommends that for every policy measure taken by UNICs microfinance to improve job satisfaction, intrinsic job satisfaction and extrinsic job satisfaction should be taken into consideration because failure to do so will lead to detrimental effect on employee’s performance. It further recommends that the management MFIs should build a strong relationship with their employee’s based on intrinsic job satisfaction and extrinsic job satisfaction so as to build positive relationships with the employee’s performance and operations.

 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In the recent years since the turn of the century, companies have found themselves in an economy heavily affected by globalization, an economy in which knowledge and information are indispensible elements in order to succeed. The importance of intellectual capital has increased to the point of being one of the most valuable assets that must be better understood in order to be developed. From such a perspective, human resources and their management now occupy a privileged place in business.

The impact of human resource  management  is  generally  measured  by  the  individual  performance  of  each employee  that,  in  turn,  has  a  quantifiable  impact  upon  the  overall  employee performance. According to Buchanan (2018),   Performance is a complex notion that is ever-present in the secondary literature related to organizations, and it occupies, perhaps, the predominant place in the day-to-day practice of actual companies.

Numerous studies highlight the pertinence of linking work related performance with another important concept for companies; that is, satisfaction at work. A large empirical database of evidence shows that satisfaction and performance at work  are  indeed  factors  in  a  complex  cause  and  effect  relationship. According to Locke, (2017) job satisfaction as ‘a pleasurable and positive emotional state resulting from the appraisals of one’s job or job experience’.

The human resources management is today one of the most important  administrative functions in any organization, and that what had appeared to the  importance of the human element and its impact on the productive efficiency of  enterprises, and have expanded the concept of human resource management to  include activities multiple masters comes on top of analysis and job descriptions,  human resource planning, attracting human resources, stimulate human resources  development and training of human resources, in addition to the traditional activity related to the affairs of human resources management in enterprises

Attainment of a high-level performance through productivity and efficiency has always been an organizational goal of high priority. Employee performance is the aggregated financial or non-financial value added by the employees in contribution to the fulfillment both directly and indirectly to the organizations’ objectives. Nyman (2017), found that employee develop and perform better if managers control and motivate their employees with participative forms of reward.

However, the total organizational performance depends on the efficient and effective performance of individual employees of the organization. Therefore, every organization places a considerable reliance on their individual employee performance to gain high productivity in the organization. At the same time, highly satisfied workforce is an absolutely necessity for achieving a high level of performance advancement of an organization and the satisfied worker leads to extend more effort to employee performance.

Divya (2018) states that employee performance is commonly used, yet poorly defined concept in industrial and organizational psychology that deals with the work place. It is commonly refers to whether a person performs their job well and it is an extremely important criterion that relates to organizational outcomes and success.

Employee performance is a multi-dimensional concept and the whole individual performance will affect the organizational performance. Job satisfaction and employee performance are both subjects in organizational behavior and human resource management. The relationship between job satisfaction and performance is still controversial.

Many criteria for assessing job satisfaction have been developed. These criteria are aimed at helping managers/management establish an employee’s job satisfaction level, and also to initiate strategies to solve or eradicate poor or low level of employee’s satisfaction problem, thereby increasing the employee’s job productivity.

According to Robbins, (2019) being satisfied employees are usually happy and motivated to their job, as a result, organization can gain amazing performance from them, alternatively, if those employees are dissatisfied with their job, it will now not encouraged and concern towards the routine of work and even they’re within job however escaping the responsibilities, furthermore, they might be high level of absence from their work Judge et al (2015) Employee satisfaction plays a key function on the employees performance.

Consequently, it is crucial for an organization to understand what employee exactly feel, thing on their job and stage of satisfaction. When organization recognize the dissatisfaction elements of employee, based on the staff perception need to make strategies that how the staff determination and dedication can be improved. By way of this motion business outcome can be improved and the same time productivity is probably increased as well.

Research by various scholars such as Loreta & Aukse (2009), Patrick et al.(2009); Elizabeth & Zakkariya, (2015), Dimitrios et al., (2015), Linda & Michael (2014), revealed that employees who are gratified with his or her job are more likely to prove a worthy attitude and contributed more efforts to share his or her skill and knowledge with the organization.

According to many scholars, job satisfaction has been given more attention in today’s organization because job satisfaction will help organization to retain experienced, trained and competent employees (Ahmad et al., 2018; Damiano & Nunzia, 2014; Elizeberth & Zakkariya, 2015; Nanjundeswaraswamy, 2013; Abu, 2014; Sarlaksha & Mangadu, 2014; Chih-Cheng et al., 2015).

In addition, job satisfaction enhances the level of motivation among employees and its direct impact on the quality of the job and productivity level of employees (Ahmad et al., 2017; Seema & Maryam, 2013; Aaron et al., 2015).

Many organizational behavior scholars, employees and managers agreed that job satisfaction is important to an organization. “Job satisfaction has been linked to productivity, motivation, absenteeism and tardiness, accidents, mental health, physical health, and general life satisfaction” (Frank 2016).

In order to achieve the mission and vision, to achieve effectiveness and efficiency, to have good quality asset and financial stability in the banking sector employees are the most vital asset. The success of the bank to a large extent depends upon the performance of its employees.

It is not known whether the relationship between job satisfaction and employee performance has been studied here in Cameroon and particularly in the banking industry. Hence, this study measures the impact of job satisfaction on employee performance with special reference to Eco Bank in the Southwest Region of Cameroon.  Furthermore, this study addresses the research gap by investigating the research problem of the bank under review that has not been yet investigated.

1.2 Statement of the Problem

From the earlier stage, the problem of employee in many organizations has resulted from that, the workers are not satisfied with their jobs which made them to keep on searching for the kind of jobs that will enhance their satisfaction and needs.

Firstly it is an established fact that an employer is expected to provide working conditions that are conducive to the welfare of employees in order to maintain as table happen and healthy work force, but that have not been able to identify this in this respect rewards needs satisfaction and individual difference of person who receives them.

It also attracts the attempting of the managers in coordinating most cases misapply in the organizational setting such as decision making which must be done with the co-operation of the subordinates as a way of pursing the organization forward and also know the individual perspectives in some cases of the be done with the co-operation of the subordinates as a way of pursing the organization forward and also know the individual perspectives in some cases of the organization which if not done the organization would be faced with an up till task in its bid to satisfy workers and gain their commitments if the worker situation or career is not in consonance with their personalities, prestige and needs.

As the concept of employee is always misapplied and equally meant different things to many employees in an organization despite volume of previous research material on the topic, this investigators though it wise to conduct research into job satisfaction von workers performance in mimy sectorial ebonyi, statein order to ascertain the applicability or other wise of the concept in the establishment.

Increase in performance may be partly due to employees’ job satisfaction, organizational factors and individual factors. According to Knoop (1991), inadequate salary was much related to employees’ dissatisfaction. And recent studies showed that a participative (democratic) management style was mostly preferred by today’s managers to increase their employees’ job satisfaction.

Satisfaction with job is an emotional reaction towards job situation, which is assessed by the extent of performance. Thus, the understanding of job satisfaction and its contributing variables are important for any organization to exist and prosper (HR Report, 2016).

Low job satisfaction also creates high turnover rates with employees. Sooner or later, the employee is going to quit so that they can find a job that gives them much satisfaction. Many industries such as banks industry suffer from high turnover rates and the inability to retain qualified workers. It is up to small business owners and managers to find a way to increase job satisfaction, way particularly in difficult industries in which the jobs are tough and the pay is low.

1.3 Research Question

1.3.1 Main Research Question

What are the effect of job satisfaction on employee performance specifically UNICs PLC?

1.3.2 Specific Research Questions

1. What is the effect of intrinsic job satisfaction on employee performance?
2. What is the effect of extrinsic job satisfaction on employee performance?

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