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JOB SATISFACTION AND EMPLOYEE PERFORMANCE IN THE
TELECOMMUNICATION SECTOR IN KENYA: A CASE OF TELKOM KENYA
LTD.
BUSI 240-Organizational Behavior 1
Liberty University
2022
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Job satisfaction and employee performance in the telecommunication sector in
Kenya: a case of telkom Kenya ltd.
The level of an organization’s productivity determines its ability to achieve its objectives
efficiently. Organizations depend on the human capital of the employees in ensuring
processes are implemented effectively. Human capital in an organization is made up of the
knowledge, skills and competencies held by the employees. Human capital is integral in an
organizations ability to attain competitive advantage over its peers in the industry (Coff &
Raffiee, 2015).The nature of some industries such as telecommunication sector necessitates
firm-specific skills as part of the human capital in order to attain and sustain competitive
advantage. Firm-specific human capital is advantageous to an organization as it reduces
mobility of employee’s hence lowers turnover (Coff & Raffiee, 2015). On the other hand,
organizations still require having employees with general human capital. This mixture of
human capital is integral in the productivity and efficiency of an organization. In order to
maximize on the human capital mix available in an organization it is imperative that the
management endeavor to motivate the workforce and heighten the level of job satisfaction
(Collings & Mellahi, 2009).
Job satisfaction is a manifestation of an employee’s attitude towards their position in the firm
and this affects the level of performance. Scholarly studies have previously been conducted
with employee job satisfaction being the main study variable (Chen, 2008; Rich et al., 2010).
Employee satisfaction in their job impacts on the overall performance of the organization. On
the other hand, most organizations focus on generating profits rather than ensuring their
employees are satisfied in their job positions. Most organizations have modeled their
operations structure around the concept of Taylorism. (Jeston, 2014). .
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Taylorism focuses on improving efficiency in production by exerting extra control on labor
by viewing human capital as inputs in the system rather than human assets (Werner &
DeSimone, 2011). Subsequently the welfare of employees fails to be given enough attention
as required. This has led to increased labor turnover in organizations in different sectors
including the telecommunication sector. It is imperative that the top management of every
organization ensure employee job satisfaction in order to increase the performance and
effectiveness in the organization. Sonnentag et al. (2008) have described Employee
Performance as a multi-dimensional concept that describes how an individual completes a
particular task with the focus being on skills, initiatives, efficiency and the utilized resources.
Bhat and Beri (2016) further posit that motivation, opportunity in the organization and the
capacity to perform significantly affect Employee Performance in the workplace.
Employee Job Performance
The ability of an organization to attain its objectives relies heavily on the productivity levels
of the individual employee. Subsequently, individual employee performance is integral in
attaining organization objectives Xiaojun, (2017). Employee Performance depends on the
level of motivation each individual is exposed to in the organization. Job tasks that are
deemed interesting motivate employees and they perform better in such jobs (Menges et al.,
2017). There is extensive empirical evidence linking intrinsic motivation to better Employee
Performance among employees. Intrinsic motivation correlates with improved Employee
Performance as the employee’s are more industrious and smarter in terms of how they handle
different tasks (Menges et al., 2017).
Consequently, improved productivity leads to an increase in the profitability of the
organization. Employee Performance can be measured through assessment by supervisors or
through objective performance data such as sales volume (Xiaojun, 2017). Measuring
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Employee Performance is vital as it helps determine whether the organization is utilizing
fully the skills and competencies of the employees.
Employee Performance includes aspects such as core task behaviours, counterproductive
behaviours and citizenship behaviours (Ng, & Feldman, 2009). Core task performance
defines basic duties that are required in a particular job while citizenship performance defines
the extra behaviors that employees may engage in job tasks beyond their beyond their core
tasks. Citizenship performance promotes and heightens effectiveness in an organization
(Ariani, 2013). On the other hand, counterproductive performance by an employee defines
voluntary behaviour that can harm the status of the organization.
Banerjee and Mehta, (2016) asserts that performance levels of dissatisfied employees are
poor since there is a high rate of absenteeism among such employees. Moreover, such
employees are characterized by increased rate of errors in their work, poor concentration and
planning. These exacerbate the negative performance of the employees in the organizations.
Ng, and Feldman (2009), on the other hand, asserts that education level is negatively related
with absenteeism and on-the-job substance abuse. The study recommended that organization
management seek having a highly educated workforce as it correlates with better Employee
Performance.
Heidemeier and Bittner, (2012) assert that goal orientations in the workplace predict
employee Performance. Goal orientation determines the skills acquisition for an employee
which further predicts the level of Employee Performance. Skilled employees have better
performance in the workplace as their levels of errors are significantly reduced. Employees
who are goal-orientated in the workplace perform better in their tasks as they incorporate
learning in their work and hence become better in the task performance. Subsequently, the
overall Employee Performance in the organization is heightened.
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Job Satisfaction
The Job satisfaction refers to the employee’s individual feelings towards their job positions
(Sajid & Siddiqui, 2017). Employees will at times have moments of happiness towards their
jobs or frustration and this may last for an extended period depending on the job environment
existing in the organization. Job satisfaction relies on a combination of factors including
environmental circumstances in the organization, and psychological aspects such as
interpersonal relations existing in the organization (Sajid & Siddiqui, 2017). An employee’s
individual cognitive, affective and evaluative reactions towards their particular jobs in the
organization determine their job satisfaction (Grujičić et al., 2016). The cognitive aspects
include the employee’s personal beliefs and assumptions towards the work they handle;
affective aspects refer to the emotions the employee’s have about the work while evaluative
aspects refer to job assessment.
Jobs satisfaction is a determinant of employees’ motivation in their work and this determines
their level of efficiency and productivity. Grujičić et al. (2016) defines motivation of the
employee as representing the process of instigating human activities towards attaining
specific goals and objectives. Subsequently, there is a significant relationship existing
between the job satisfaction level of the employee and their psychological state which is
reliant on aspects such interpersonal relations, financial reward, organizational commitment
and personal fulfillment.
These four dimensions are significant aspects of job satisfaction that determine the behavior
and actions of an employee in the workplace. Previous studies on job satisfaction have mostly
focused on motivation (Octaviannand et al., 2017; Stankovska et al., 2017; Asgari et al.,
2017). The specific Job Satisfaction Dimensions have not been studied comprehensively.
Subsequently, aspects such as economic rewards for employees, interpersonal relationship in
the workplace, personal fulfillment and organizational commitment are the specific Job
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Satisfaction Dimensions that are explored in this research. These dimensions are vital for the
study since they focus on the intrinsic and extrinsic aspects of job satisfaction.
Economic rewards for employees are integral in heightening their motivation and Employee
Performance. Economic rewards include bonus payouts, overtime and salary increments.
Every company should set-up reward systems that would benefit employees (Choma &
Baruah, 2014). Economic rewards are dependent on the reward systems and the
compensation management employed in the organization. Well compensated employees
exhibit a higher purchasing power as they have extra income to spend. On the other hand,
interpersonal relationships in the workplace build upon the working environment and impact
the Employee Performance levels. Interpersonal relations in the workplace can bring about
co-operation, unity or conflict (Emilova, 2014). Interpersonal relations are dependent on the
social environment that is established in the workplace. Employees who work in a favorable
environment are able to maximize on their abilities and perform much better hence their
Employee Performance is greater (Mandhanya, 2015). On the other hand, interpersonal
relations that yield conflict make it difficult for employees to collaborate on tasks thereby
affecting Employee Performance negatively.
Personal fulfillment levels among employees impact Employee Performance as they are a
manifestation of the workplace environment. Employees who have low fulfillment are
characterized by being more stressed in the workplace and this impact on the working
environment (Davenport, 2015). The support employees get from their peers in the workplace
is integral in the process of alleviating stress levels. This leads to increased personal
fulfillment and increased attachment to the organization. The employee’s commitment to the
organization significantly affects the performance of such individuals. Organizational
commitment binds the employee to the objectives and vision of the organization and this
impact on their Employee Performance (Sajid & Siddiqui, 2017).Employees that are
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committed to the organization are more productive as they are aligned with the organization
targets. Moreover, such employees have increased emotional attachment to the organization
and this increases their levels of retention and involvement in tasks.
Telkom Kenya Limited
The telecommunication sector in Kenya has exhibited a high growth rate in the recent past
and has been impacted by cross-sector competitive relationships. Subsequently, companies in
the sector have evolved to provide a variety of services including money transfer services,
internet services and mobile telephone services in order to have competitive advantage. One
of the major players in this sector is Telkom Kenya Ltd. Telkom Ltd was established in April
1999 as a telecommunications operator. The company is 60% owned by Helios Investment
partners while the government of Kenya owns 40% (Telkom, 2017). The company provides
integrated telecommunication services for corporate and residential customers in Kenya.
Telkom Ltd main objective is to connect people that are involved in keeping Kenya on the
move (Mlaghui, 2017). The company achieves this function through the provision of
integrated telecommunications solutions to SMEs, large corporate, individuals and the
government. Telkom Kenya Ltd boasts of being a business enabler through the provision of
world class solutions for the modern day business customer. The company is founded on
robust and consumer-centric ethos and is committed to the provision of innovative and
accessible communication solutions. The company strategy involves the continuous
development of its product portfolio with a view of renewing growth. Telkom Kenya Ltd has
a robust presence in the 47 counties that form the republic of Kenya where it covers both data
and voice channels (Telkom, 2017).
Telkom Ltd strategy focuses on expanding its network coverage in Kenya through an
investment of $ 50 million with a view of growing its market share and growing its corporate
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and SMEs clients (Muhatia, 2017). Moreover, the company seeks to boost its network
efficiency in order to improve its competitive advantage against the two dominant
companies in the sector; Safaricom and Airtel Kenya. The company uses three KPIs to
ensure the success of its business strategy: call retainability, call set-up and the perceived
call quality by the customer (Muhatia, 2017).
Statement of the Problem
Telkom Ltd was the first mobile telecommunication corporation to operate in Kenya yet
over time it has failed to maintain competitive advantage over its peers such as Safaricom.
Job performance in the company is a significant determinant of its profitability and
competitive edge in the industry. The performance of Telkom Kenya has been lagging
behind its peers as the company has had to restructure due to its inability to meet
stakeholder expectations (Kimutai, 2010). Limited research has been conducted with a
specific focus on Telkom Kenya Ltd. Moreover, there has been limited research on the
specific challenges affecting the employee Performance in this sector among employees.
Several studies have been conducted on job satisfaction and employee Performance by
different scholars (Alessandri, Borgogni, & Latham, 2017; Menguc, Auh, Katsikeas,
&Yeon Sung, 2016; Zeb, & Yasmin, 2016).The studies focused on the impact of job
satisfaction on employee Performance. The studies failed to appreciate the broad nature of
job satisfaction and its different dimensions. Therefore, organizations using information
from these studies are unable to differentiate the specific job satisfaction dimensions that
they can leverage on for improved Employee Performance.
Subsequently, this research is more specific on the Job Satisfaction Dimensions that have
an impact on employee Performance.
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