The Effect of Work Environment on Employees' Job Satisfaction: Empirical Evidence from the Banking Industry
Downloads
Objective: Despite streams of literature that establish the interdependence between the work environment and employees' job satisfaction (EJS), a debate on the topic has not been concluded. The current study employed Herzberg's two-factor theory to investigate the effect of the work environment on EJS in the context of the baking industry.
Design/Methods/Approach: A cross-sectional questionnaire survey and simple random sampling were utilized to collect data from 417 employees across commercial banks. Subsequently, confirmatory factor analysis (CFA) and structural equation modeling (SEM) were employed for data analysis.
Findings: The results indicate a positive relationship between the work environment and EJS. Specifically, the physical work environment, remuneration, social work environment, job security, and safety demonstrated positive and significant effects on EJS.
Originality/Value: The novelty of this study lies in its specific focus on the banking industry, the comprehensive inclusion of various dimensions of the work environment, and the utilization of the two-factor theory. It surpasses the narrow focus of previous research, which concentrated on a single aspect of the work environment. With this approach, the study offers in-depth insights to banking industry stakeholders on how work environments directly impact EJS.
Practical/Policy implication: To foster conducive work environments in the banking industry, managers should prioritize designing comfortable workplace environments by providing ergonomic furniture, competitive remuneration, a visually appealing atmosphere, robust safety measures and job security, and a supportive and harmonious social work environment, which, according to the study findings, are the drivers of EJS.
Agbozo, G; Owusu, I; Hoedoafia, M; and Atakorah, B. (2017). The Effect of Work Environment on Job Satisfaction: Evidence from the Banking Sector in Ghana. Journal of Human Resource Management, 5(1), 12-18. https://doi.org/10.11648/j.jhrm.20170501.12
Akinwale, O.E. and George, O.J. (2020). Work environment and job satisfaction among nurses in government tertiary hospitals in Nigeria. Rajagiri Management Journal, 14(1), 71-92. https://doi.org/10.1108/RAMJ-01-2020-0002
Anasi, S.N. (2020). Perceived influence of work relationship, work load and physical work environment on job satisfaction of librarians in South-West, Nigeria. Global Knowledge, Memory and Communication, 69(6/7), 377-398. https://doi.org/10.1108/GKMC-11-2019-0135
Asiamah, N., Mensah, H.K. and Azinga, S.A. (2019). Enhancing nurses' job satisfaction through remuneration: can materialism be a threat? International Journal of Ethics and Systems, 35(3), pp. 359-375. https://doi.org/10.1108/IJOES-01-2019-0012
Ashraf, M.A. (2020). Demographic factors, compensation, job satisfaction and organizational commitment in private university: an analysis using SEM. Journal of Global Responsibility, 11(4), 407-436. https://doi.org/10.1108/JGR-01-2020-0010
Barton, G. and Le, A.H. (2023). The importance of aesthetics in workplace environments: an investigation into employees' satisfaction, feelings of safety and comfort in a university. Facilities, 41(13/14), 957-969. https://doi.org/10.1108/F-03-2023-0016
Belwalkar, S., Vohra, V. and Pandey, A. (2018). The relationship between workplace spirituality, job satisfaction and organizational citizenship behaviours – an empirical study. Social Responsibility Journal, 14(2), 410-430. https://doi.org/10.1108/SRJ-05-2016-0096
Bušatlić, S. and Mujabašić, A. (2018). Herzberg's twofactor theory of job satisfaction. Comparative study between private and public high school teachers in Canton Sarajevo. International Journal of Business Management & Research, 8(6), 27-48. https://doi.org/10.24247/ijbmrdec20184
Chieze. A, Kabouh M. N, Itunuoluwa. A., and Egwuonwu Clara. O. (2017). Working environment and employees job satisfaction in Nigerian Banks. International Journal of Development Strategies in Humanities, Management and Social Sciences, 7(1), 60-71.
Dartey-Baah, K., Quartey, S.H. and Osafo, G.A. (2020). Examining occupational stress, job satisfaction and gender difference among bank tellers: evidence from Ghana. International Journal of Productivity and Performance Management, 69(7), 1437-1454. https://doi.org/10.1108/IJPPM-07-2019-0323
Dei, A. R., Manan, A., & Respati, H. (2020). The Mediating Role of Motivation between Remuneration and Performance. Journal Reset Management and Business (JRMB), 5(3), 365-376.
Dhamija, P., Gupta, S. and Bag, S. (2019). Measuring of job satisfaction: the use of quality of work life factors. Benchmarking: An International Journal, 26(3), 871-892. https://doi.org/10.1108/BIJ-06-2018-0155
Fan, Y., Chen, J., Shirkey, G., John, R., Wu, S. R., Park, H., & Shao, C. (2016). Applications of structural equation modelling (SEM) in ecological studies: An updated review. Ecological Processes, 5(1), 1–12. https://doi.org/10.1186/s13717-016-0063-3
Gangaram, B. (2016). Organizational career growth and employee's turnover intentions: empirical evidence from Nepalese private commercial banks. International Academic Journal of Organizational Behaviour and Human Resource Management, 3(2), 10-26.
Gupta, A., Chakravorty, A., Garg, N. and Singh, P. (2022). Job security, value congruence, and work outcomes: revisiting the mediating role of work engagement. Global Knowledge, Memory and Communication, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/GKMC-01-2022-0002.
Hair, J. F., Howard, M. C., and Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
Herzberg, F. (1968). Work and the nature of man. St. Albans: Staples Press, UK.
Herzberg, F. (2003). One more time: how do you motivate employee? Harvard Business Review, 81, 56-96.
ILO, (2019). Working conditions in a global perspective, Publications Office of the European Union. Luxembourg and International Labour Organization, Geneva.
ILO, (2022). Collective bargaining for an inclusive, sustainable and resilient recovery. International Labour Organization, Geneva.
Israel, B. (2022). Enhancing customer retention in manufacturing SMEs through supply chain innovative practices. Management Dynamics in the Knowledge Economy, 10(3), 272-286. https://doi.org/ 10.2478/mdke-2022- 0018
Israel, B. (2023). Mediating effect of integrated health commodities procurement system on the relationship between responsiveness and health service delivery. International Journal of Health Governance, 28(3), 284-298. https://doi.org/10.1108/IJHG-03-2023-0028
Israel, B., Mahuwi, L., & Mwenda, B. (2023). A review of financial and non-financial measures of supply chain performance. International Journal of Production Management and Engineering, 11(1), 17-29. https://doi.org/10.4995/ijpme.2023.18797.
Kakkar, S., Kuril, S., Singh, S., Saha, S. and Dugar, A. (2023). The influence of remote work communication satisfaction and CSR association on employee alienation and job satisfaction: a moderated-mediation study. Information Technology & People, 36(5), pp. 1810-1834. https://doi.org/10.1108/ITP-01-2021-0030
Kim, J. (2022). Analyzing Determinants of Job Satisfaction Based on Two-Factor Theory. Sustainability, 14(19), 12557; https://doi.org/10.3390/su141912557
Latifah, I.N., Suhendra, A.A. and Mufidah, I. (2023). Factors affecting job satisfaction and employee performance: a case study in an Indonesian sharia property companies. International Journal of Productivity and Performance Management, Vol. 73(3), 719-748. https://doi.org/10.1108/IJPPM-03-2021-0132
Lelo, J.M., Nziku, D.K., Mwakolo, A. (2021). The Practice of Industrial and Labour Relations in Higher Learning Institutions: A Case of Mwanza City Council. Sustainable Education and Development, 9, 97-108. https://doi.org/10.1007/978-3-030-68836-3
Lelo, J. M., & Israel, B. (2024). Supply Chain Innovative Practices and Customer Satisfaction: Insights from Manufacturing SMEs. Management Dynamics in the Knowledge Economy, 12(1), 54-69. https://doi.org/10.2478/mdke-2024-0004
Lu, W., Liu, X., Liu, S., Wu, H., Qin, C. and Ma, B. (2023). On the link between job insecurity and CWB: moderated mediation by employment status and turnover intention. Chinese Management Studies, 17(3), 683-700. https://doi.org/10.1108/CMS-05-2020-0215
Ma, B., Liu, S., Lassleben, H. and Ma, G. (2019). The relationships between job insecurity, psychological contract breach and counterproductive workplace behaviour: Does employment status matter? Personnel Review, 48(2), 595-610. https://doi.org/10.1108/PR-04-2018-0138
Mahuwi, L. and Israel, B. (2024). Promoting transparency and accountability towards anti-corruption in pharmaceutical procurement system: does e-procurement play a significant role? Management Matters, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MANM-07-2023-0027
Miah, M. T., & Hasan, M. J. (2022). Impact of Herzberg Two-Factor Theory on Teachers' Job Satisfaction: An Implication to the Private Universities of Bangladesh. International Journal of Business and Management Research, 10(1), 1-5. https://doi.org/10.37391/IJBMR.100101
Mkuwa, J. E., & Lelo, J. M. (2018). The role of trade unions in influencing employees' welfare: a case of Muhimbili national hospital. Business Education Journal, 4(1), 19-32.
Mwenda, B., Israel, B. and Mahuwi, L. (2023). The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs. LBS Journal of Management & Research, Vol. 21 No. 2, pp. 218-235. https://doi.org/10.1108/LBSJMR-01-2023-0003
Nziku, D.K., Lelo, J.M. (2021). Adoption of Employment and Labour Relation Act (ELRA) No. 6 of 2004 by Private Organizations – in Mwanza City Council, Tanzania. Sustainable Education and Development, 9, 321-334. https://doi.org/10.1007/978-3-030-68836-3_28
Okros, N. and Virga, D. (2023). Impact of workplace safety on well-being: the mediating role of thriving at work. Personnel Review, 52(7), 1861-1877. https://doi.org/10.1108/PR-10-2021-0709
Pang, K. and Lu, C.-S. (2018). Organizational motivation, employee job satisfaction and organizational performance: An empirical study of container shipping companies in Taiwan. Maritime Business Review, Vol. 3(1), 36-52. https://doi.org/10.1108/MABR-03-2018-0007
Pawirosumarto, S., Sarjana, P.K. and Gunawan, R. (2017). The effect of work environment, leadership style, and organizational culture towards job satisfaction and its implication towards employee performance in Parador Hotels and Resorts, Indonesia. International Journal of Law and Management, 59(6),1337-1358. https://doi.org/10.1108/IJLMA-10-2016-0085
Rajest, S. S. and Regin, R., (2023). Effect of working environmental employee satisfaction on organizational performance. Central Asian journal of mathematical theory and computer sciences, 4(1), 29-48. https://doi.org/10.17605/OSF.IO/36FTQ
Salunke, G. (2015). Work environment and its effect on job satisfaction in cooperative sugar factories in Maharashtra, India. Abhinav International Monthly Refereed Journal of Research in Management & Technology. 4(5), pp.21-31.
Sheffu, J. (2022). Tanzania Banking Sector Report. Bank of Tanzania, Dar es Salaam, Tanzania.
Rapsanjani, A., & Johannes, S. (2019). The Effect of Remuneration, Work Motivation and job Satisfaction on Employees Performance. International Humanities and Applied Science Journal, 2(3), 856–863. https://doi.org/10.22441/ihasj.2019.v2i2.03.
Rasheed, E.O. and Rotimi, J.O.B. (2022). The green office environment: New Zealand workers' perception of IEQ. Smart and Sustainable Built Environment, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SASBE-09-2022-0204
Rice, B., Martin, N., Fieger, P. and Hussain, T. (2022). Older healthcare workers' satisfaction: managing the interaction of age, job security expectations and autonomy. Employee Relations, 44(2), 319-334. https://doi.org/10.1108/ER-07-2020-0346
Rotimi, F.E., Rotimi, J.O.B., Silva, C.W.C., Olatunji, O.A. and Ramanayaka, C.E.D. (2023). The determinants of job satisfaction amongst specific migrant construction workers. Built Environment Project and Asset Management, 13(5), pp. 738-755. https://doi.org/10.1108/BEPAM-06-2022-0078
Saunders, M., Lewis, P. and Thornhill, A. (2019). Research Methods for Business Students, 8th ed., Pearson Education Limited, Harlow.
Shi, B. (2017). An exploratory study of job insecurity in relation to household registration, employment contract,
and job satisfaction in Chinese state-owned enterprises. Evidence-based HRM, 5(2), 151-165. https://doi.org/10.1108/EBHRM-09-2015-0039
Siwandeti, M., Mahuwi, L., Israel, B. (2023). How public procurement can help societies achieve SDGs: a conceptual model. Management of Sustainable Development, 15(1), 36-46. https://doi.org/10.54989/msd- 2023-0006
Tegambwage, A.G. and Kasoga, P.S. (2023). Determinants of customer loyalty in Islamic banking: the role of religiosity. Journal of Islamic Marketing, 14(12), 3150-3167. https://doi.org/10.1108/JIMA-12-2021-0396
URT, (2019), Employment and Labour Relations Act Cap. 366 of R.E 2019. The Government Printer: Dar Es Salaam, Tanzania.
Copyright (c) 2024 John Meku Lelo
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. The author(s) hold the copyright of the article without restrictions.
2. The author(s) retain publishing rights without restrictions
3. The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution (CC BY).
