Relationship between job satisfaction and organisational performance

Abstract

The purpose of this study is to explore the link between job satisfaction and organisational performance and to determine if there is an empirically provable relationship between these two variables, and the direction and the intensity of this relationship. Empirical research was conducted on a research sample of 40 large- and medium-sized Croatian companies, with 5806 employees surveyed. The results of this study show the existence of a clear link between employees’ job satisfaction and organisational performance in both directions, but with pretty weak intensity. Detailed analysis showed that the connection between job satisfaction and organisational performance is stronger than the connection between organisational performance and job satisfaction. It could be stated that job satisfaction determines organisational performance, rather than organisational performance determining job satisfaction.