Identification of Factors Affecting Employee Satisfaction and Their Relative Importance: An Empirical Study of An Indian Public Sector Organization

Sony Kumari, Raghavendra .S. Bendigeri, M.C. Mehta, L.N. Bhagat


There are several factors affecting organizational effectiveness and one of the important factors is employee satisfaction. This study aims to identify the factors affecting employee satisfaction and determine their relative importance, so that suitable strategies could be formulated to enhance employee satisfaction. The primary data was collected from a sample of 50 respondents using a questionnaire based on five point response category of Likert type. The modified Likert scale (i.e. Indices) were employed as variables in the quantitative analysis. Two tailed t-test was employed to test the significance of regression coefficients ; The degree of significance measures the relative importance. IBM SPSS 20 and Excel 2007 software were used to sort the data and undertake quantitative analysis. Altogether six broad factors were identified. Statistical results revealed that all factors are important, however, pay & perks emerged as the most important factor. Group of factors consisting of “pay & perks”, “career & development” and “welfare facilities” is relatively more effective than the Group of factors consisting of “company”, “job” and “work life & culture”. The key contributions and limitations have also been mentioned.

Keywords: Employee Satisfaction, Factors, Indices, Standard Scores, Weighted Standard scores.

DOI: 10.7176/EJBM/12-33-02

Publication date: November 30th 2020

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