Evaluating the influence of work environment on job satisfaction: Data analysis in the banking sector using structural equation modeling

N. Usha Deepa Sundari; Lakshmi Narayanamma Poli

doi:10.31893/multirev.2024258

Keywords:

structural modeling

job satisfaction

banking sector

organizational success

quality of work life

workplace factors

Abstract

In today's rapidly evolving work environment, understanding the intricate web of factors influencing job satisfaction is paramount to fostering employee well-being and organizational success. This research employs structural equation modeling (SEM) to analyze the effects of various workplace factors on job satisfaction in the organizational context of the banking sector in the state of Andhra Pradesh, India. This study examined the relationships between job satisfaction and career growth and development, motivation, and compensation, the nature of the job, quality of work life (QWL) factors, relationships and support, safety and welfare, and work factors. This study analyzed the relationships among job satisfaction, employee engagement, internal branding, and emotional commitment in the banking industry. The findings reveal that internal branding directly impacts employee engagement, job satisfaction, and commitment. Employee engagement positively affects job satisfaction and affective commitment, with job satisfaction mediating the relationship between employee engagement and affective commitment. Furthermore, internal branding directly affects job satisfaction and emotional commitment. Investments in internal branding can enhance job satisfaction, employee engagement, and commitment. The study establishes construct reliability and validity, including discriminant validity. The analysis also explored the mediating role of QWL factors in these relationships. The findings indicate that specific workplace factors significantly impact job satisfaction, with QWL factors mediating some of these effects. This research offers valuable insights for organizations pursuing improved employee job satisfaction and well-being.
References
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Sundari, N. U. D., & Poli, L. N. (2024). Evaluating the influence of work environment on job satisfaction: Data analysis in the banking sector using structural equation modeling. Multidisciplinary Reviews, 7(10), 2024258. https://doi.org/10.31893/multirev.2024258

[1] Agyeiwaah, E., Dayour, F., & Zhou, J. Y. (2021). How does employee commitment impact customers' attitudinal loyalty? Journal of Hospitality and Tourism Insights, ahead-of-print. https://doi.org/10.1108/jhti-09-2020-0169

[2] Bharadwaj, S., Khan, N. A., & Yameen, M. (2021). Unbundling employer branding, job satisfaction, organizational identification, and employee retention: A sequential mediation analysis. Asia-Pacific Journal of Business Administration. https://doi.org/10.1108/APJBA-08-2020-0279

[3] Cachon-Alonso, L., & Elovainio, M. (2022). Organizational justice and health: Reviewing two decades of studies. Journal of Theoretical Social Psychology, 2022.

[4] Chan, E. S. S., et al. (2020). Self-efficacy, work engagement, and job satisfaction among teaching assistants in Hong Kong's inclusive education. https://doi.org/10.1177/2158244020941008

[5] Cooper, B., Eva, N., Fazlelahi, F. Z., Newman, A., Lee, A., & Obschonka, M. (2020). Addressing common method variance and endogeneity in vocational behavior research: A review of the literature and suggestions for future research. Journal of Vocational Behavior, 121, 103472.

[6] De Bruin, L., Roberts-Lombard, M., & De Meyer-Heydenrych, C. (2021). Internal marketing, service quality and perceived customer satisfaction: An Islamic banking perspective. Journal of Islamic Marketing, 12(1), 199-224.

[7] Hair Jr, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123.

[8] Hassan, M., Azmat, U., Sarwar, S., Adil, I. H., & Gillani, S. H. M. (2020). Impact of job satisfaction, job stress and motivation on job performance: A case from private universities of Karachi. Arabian Journal of Business and Management Review (Kuwait Chapter), 9(2), 76-86.

[9] Heimerl, P., et al. (2020). Factors influencing job satisfaction in the hospitality industry. https://doi.org/10.1177/2158244020982998

[10] Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115-135.

[11] Igartua, J. J., & Hayes, A. F. (2021). Mediation, moderation, and conditional process analysis: Concepts, computations, and some common confusions. The Spanish Journal of Psychology, 24, e49.

[12] Inayat, W., & Jahanzeb Khan, M. (2021). A study of job satisfaction and its effect on the performance of employees working in private sector organizations, Peshawar. Education Research International, 2021, 1-9.

[13] Landers, R. N., Brusso, R. C., & Auer, E. M. (2019). Crowdsourcing job satisfaction data: Examining the construct validity of Glassdoor.com ratings. Personnel Assessment and Decisions, 5(3), 6.

[14] Memon, M. A., et al. (2021). Satisfaction matters: The relationships between HRM practices, work engagement, and turnover intention. International Journal of Manpower, 42(1), 21–50. https://doi.org/10.1108/IJM-04-2018-0127

[15] Mendiola, E. (2022). Job satisfaction among returning expatriates: A qualitative case study (Doctoral dissertation, Capella University).

[16] Mustafa, M. B., Nordin, M. B., & Razzaq, A. B. A. (2020). Structural equation modelling using AMOS: Confirmatory factor analysis for taskload of special education integration program teachers. Universal Journal of Educational Research, 8(1), 127-133.

[17] Newman, A., Nielsen, I., Smyth, R., & Hooke, A. (2015). Examining the relationship between workplace support and life satisfaction: The mediating role of job satisfaction. Social Indicators Research, 120, 769-781.

[18] Obschonka, M., Pavez, I., Kautonen, T., Kibler, E., Salmela-Aro, K., & Wincent, J. (2023). Job burnout and work engagement in entrepreneurs: How the psychological utility of entrepreneurship drives healthy engagement. Journal of Business Venturing, 38(2), 106272.

[19] Pandey, P., & Asthana, P. K. (2017). An empirical study of factors influencing job satisfaction. Indian Journal of Commerce and Management Studies, 8(3), 96-105.

[20] Priya, A. (2021). Case study methodology of qualitative research: Key attributes and navigating the conundrums in its application. Sociological Bulletin, 70(1), 94-110.

[21] Ramesh, N. (2021). Antecedents and consequences of employee engagement: A critical analysis of literature review. BIMS Journal of Management, 17.

[22] Ramli, A. H. (2019). Work environment, job satisfaction and employee performance in health services. Business and Entrepreneurial Review, 19(1), 29-42.

[23] Rathi, N., & Lee, K. (2017). Understanding the role of supervisor support in retaining employees and enhancing their satisfaction with life. Personnel Review, 46(8), 1605–1619. https://doi.org/10.1108/PR-11-2015-0287

[24] Ren, S., & Chadee, D. (2017). Ethical leadership, self-efficacy, and job satisfaction in China: The moderating role of guanxi. Personnel Review, 46(2), 371–388. https://doi.org/10.1108/PR-08-2015-0226

[25] Rizany, I., & Afifah, E. (2019). The impact of nurse scheduling management on nurses’ job satisfaction in army hospital: A cross-sectional. https://doi.org/10.1177/2158244019856189

[26] Somers, M., Birnbaum, D., & Casal, J. (2020). An empirical test of conceptual arguments to retire the three-component model of work commitment: Implications for commitment research. Personnel Review, 49(3), 887-902.

[27] Stamolampros, P., Korfiatis, N., Chalvatzis, K., & Buhalis, D. (2019). Job satisfaction and employee turnover determinants in high contact services: Insights from employees’ online reviews. Tourism Management, 75, 130-147.

[28] Sungu, L. J., Weng, Q. (Derek), & Kitule, J. A. (2019). When organizational support yields both performance and satisfaction: The role of performance ability in the lens of social exchange theory. Personnel Review, 48(6), 1410–1428. https://doi.org/10.1108/PR-10-2018-0402

[29] Swarnalatha, D. C., & Prasanna, T. S. (2012). Employee engagement: The key to organizational success. International Journal of Management (IJM), 3(3), 216-227.

[30] Tran, L. T. T., Thi Vinh Hien, H., & Baker, J. (2021). When supportive workplaces positively help work performance. Baltic Journal of Management, 16(2), 208–227. https://doi.org/10.1108/BJM-06-2020-0220

[31] Umar, M., Sial, M. H., Ali, S. A., Bari, M. W., & Ahmad, M. (2023). Trust and social network to boost tacit knowledge sharing with mediation of commitment: Does culture moderate? VINE Journal of Information and Knowledge Management Systems, 53(6), 1135-1158.

[32] Verčič, A. T. (2021). The impact of employee engagement, organisational support and employer branding on internal communication satisfaction. Public Relations Review, 47(1), 102009.

Abstract

References

How to cite