JOB SATISFACTION AND EMPLOYEE PERFORMANCE: A THEORETICAL REVIEW OF THE RELATIONSHIP BETWEEN THE TWO VARIABLES (original) (raw)

In today's increasing competitive environment, organizations recognize the internal human element as a fundamental source of improvement. On one hand, managers are concentrating on employees' wellbeing, wants, needs, personal goals and desires, to understand the job satisfaction. And on the other hand, managers take organizational decisions based on the employees' performance. The purpose of this study is to identify the factors influencing job satisfaction and the determinants of employee performance, and accordingly reviewing the relationship between them. This study is an interpretivist research that focuses on exploring the influence of job satisfaction on employee performance and vice, the influence of employee performance on job satisfaction. The study also examines the nature of the relationship between these two variables. The study reveals the dual direction of the relationship that composes a cycle cause and effect relationship, so satisfaction leads to performance and performance leads to satisfaction through number of mediating factors. Successful organizations are those who apply periodic satisfaction and performance measurement tests to track the level of these important variables and set the corrective actions.