The relationship between employee satisfaction and organisational performance: Evidence from a South African government department

Abstract

Orientation: There appears to be a dearth of literature that addresses the relationship between employee satisfaction and organisational performance in South African public organisations. Motivation for the study: This study attempted to contribute to the discourse on the influence of human resources to organisational performance.

Research purpose: The aim of this study was to analyse the relationship between employee satisfaction and organisational performance in a public sector organisation.

Research design: A three-section survey questionnaire was used to collect data from a conveniently recruited sample of 272 members of a South African government department. Pearson’s correlation test as well as a regression analysis were employed to test the existence of a relationship between employee satisfaction and organisational performance. The mean score ranking technique was used to compare the impact of the individual employee satisfaction factors on organisational performance.

Main findings: Positive correlations were observed between organisational performance and all five employee satisfaction factors, namely working conditions, ability utilisation, creativity, teamwork and autonomy. Amongst the five factors, teamwork had the greatest impact on organisational performance, followed by ability utilisation, creativity, autonomy, with working conditions exerting the least influence.

Practical and/or managerial implications: Strategic interventions involving positive adjustments on the five employee satisfaction dimensions examined in this study may be initiated and applied to improve overall organisational performance in public organisations.

Contributions and/or value add: The study endorses the notion that a satisfied workforce could be the key to enhanced organisational performance.