Relationship Between Job Satisfaction and Job Performance and Absenteeism

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CHAPTER 1
INTRODUCTION

1.1 Conceptual Background
This paper will discuss about job satisfaction and its relation with job performance and absenteeism. Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of one’s job. Stephen P. Robbins based in his book (Organizational Behavior, 12th edition) described job satisfaction as a positive feeling about one’s job resulting from an evaluation of its characteristics. Job satisfaction is one of dependent variable of organizational behavior. It becomes one of primary dependent variable because it’s demonstrated relationship to performance factors, and the value preferences of many OB researchers. Some of the researchers already prove that job satisfaction has involved to other OB’s dependent variable. From the Stephen P. Robbins’s book, job satisfaction do effect to Job performance, OCB, Absenteeism, Turnover, and Workplace deviant. From all of the other factors that effected by job satisfaction, job performance will became the topic for this paper. The Human Relations movement, of Elton Mayo and others believed that job satisfaction had beneficial effects, including increased job performance (Argyle, 1988). Although some researchers used to believe that the relationship between job satisfaction and job performance is a management myth, a review of 300 studies suggested that the correlation is pretty strong. This paper strives to see how the job satisfaction has correlation with job performance. 1.2 Research Object

1.Company Profile
The object of my research is engineering division in Saipem. Saipem is a contractor in the oil and gas industry. The organization, while providing many different kinds of services - including specialized services and maintenance, modification and operations - has been rationalized into three global business units: Onshore, Offshore, Drilling. It enjoys a superior competitive position for the provision of EPIC/EPC services to the oil industry both onshore and offshore; with a particular focus on the toughest and most technologically challenging projects - activities in remote areas, deepwater, gas, difficult oil. Its drilling services continue to be distinctive, operating in many of the oil & gas industry’s ‘hotspots’, frequently in synergy with the Group’s onshore and offshore activities. The new Group is a truly global contractor, with strong local presence in strategic and emerging areas such as West Africa and FSU, Central Asia, Middle East, North Africa and South East Asia. Saipem is a international company. Along with its strong European content, the major part of its human resource base comes from developing countries. Saipem employs over 30,000 people comprising more than 100 nationalities. In addition to the strong local content of its people, it employs large numbers of people from the most cost effective developing countries on its vessels and sites, and has sizeable service bases in India, Croatia, Romania and Indonesia. Saipem has a distinctive Health & Safety Environment Management System and its Quality Management System has been granted ISO 9001:2000 certification by Lloyd's Register Certification. Engineering division in Saipem Indonesia only employ about 20 workers. And 13 from them became respondents for this research. 2.Company History and development

The Company began operations in the 1950s. During the 50s and 60s it accumulated competencies in onshore pipelaying, plant construction and drilling, operating initially as a division of the Eni group and then on a stand-alone basis, becoming definitively autonomous in 1969. Offshore operations commenced in the Mediterranean in the early 1960s and expanded to the North Sea in 1972. The Company started offering its services to customers outside the Eni group in the early 1960s and progressively widened its customer base to include almost all the supermajors, majors, major nationals and independent oil & gas companies worldwide....
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