Bohat Ala
Bohat Ala
Aug 26, 2017 · 3 min read

Factors Affecting Employee Performance

At present, there are so many companies that are operating in intense competitive environment. In such a hostile environment retaining the existing employees is an issue when all the competitors are trying to distract the employees by offering them attractive compensation, healthy workplace environment and lot more. The question of how to retain the existing employees is answered by attractive compensation, friendly leadership, balance between work-life conflicts and healthy work environment build a sense of belongingness among employees which prevents them to switch from one organization to another and subsequently improves their job performance which is very central for even and effective operation of an organization.

This study on Factors Affecting Employee Performance looks into this phenomenon by seeking empirical justification in this regard considering the compensation, leadership, work-life conflicts and working conditions as main contributory factors towards employees’ job performance. Moreover, it was postulated that compensation (Taseema and Soeters, 2006), leadership (Cummings and Schwab, 1973) and working conditions (Yesufu, 1984) have a constructive impact on employee job performance whereas work-life conflicts (Lee and Hui, 1999) have negative association with job performance.

A combination of the research philosophies is used for this research. The questionnaire was used to collect the quantitative data from the respondent. The scales used in the study were adopted from past research and were based on 5 point likert scale. A pilot test was conducted as to check the reliability of the scales using Cronbach’s Alpha which entailed that the scales being used in the study are reliable. Both the primary and secondary data and sources of information have been used for this research. Convenience sampling technique was used to collect the data and 240 questionnaires were distributed among the respondents. Out of which 200 were received back (Response rate = 83%) which are used in the data analysis. Frequencies, means and standard deviations along with correlations and regression are used for the final analysis.

The analysis of the research entails that service quality and price perceptions have a positive impact on the customer satisfaction and that in turn has a strong positive impact on the customer loyalty. No significant demographic differences were found for the variables of customer satisfaction and loyalty. Differences with regard to the mobile operators were although evident. The marketers in the telecommunication sector must adopt customer focused strategy by stressing on service quality and improving pricing perceptions of the services provided. Moreover, the operators in the telecommunication sector need to develop a strong competitive edge in order to succeed in the market.

The analysis entails that all the variables of the study prevail in corporate zone. Moreover, factors such as compensation and leadership had a significant positive impact on employee job performance where as work-life conflicts had a significant but negative association with job performance. Only the correlation among working conditions and employee job performance was found to be insignificant . In regression analysis model summary specifies that 66.3% of the variation in the dependent variable i.e. employee performance is accounted for by this model which is quite good. ANOVA tells goodness of fit of the overall model.

In view of the findings, it is suggested that organizations must consider factors i.e. attractive compensation, friendly leadership, balance between work-life conflicts and healthy work environment to improve employees’ job performance which is a critical success factor for organizations to survive and compete in today’s competitive and dynamic corporate environment effectively.

Key Words: Factors Affecting Employee Performance, Work-life conflicts, Leadership, Working conditions, Compensation, Corporate Sector, Performance level.

Factors Affecting Employee Performance
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