Investigating relationships between job satisfaction, commitment, engagement and performance in a South African motor retail company

Abstract

The South African Motor Retail Industry had many challenges, including pressure on the economy, competitive forces in the marketplace and high expectations placed on employees' performance to sell products, and provide quality service to customers. Subsequently, it is critical that to understand how job satisfaction, organisational commitment, work engagement, and employee performance interrelate, as these factors will contribute to better organisational outcomes and improved well-being for employees. This research sought to examine the relationships among job satisfaction, organisational commitment, work engagement, and employee performance in a South African motor retail organisation. A quantitative, cross-sectional design was used to accomplish this objective, with a non-probability convenience sample of n = 289 participants. Measurement instruments included the condensed version of the Minnesota Satisfaction Questionnaire; the Organisational Commitment Questionnaire; the condensed version of the Utrecht Work Engagement Scale; and a performance measure assessing both task and contextual performance. Descriptive statistics were used to describe the characteristics of the sample. Exploratory Factor Analysis was used to identify underlying constructs in the data. Correlation analyses were conducted to determine if there were statistically significant correlations among the variables. Mediation and Moderation Analyses were performed to determine if one variable mediated or moderated the relationship between other variables. Finally, regression analyses were conducted to identify the predictors of each of the dependent variables. These findings demonstrated that there are positive and statistically significant associations between employee job satisfaction, organisational commitment, work engagement, and employee performance (task and contextual). Notably, employee job satisfaction was significantly associated with improved employee performance and positively related to affective and normative commitment. Furthermore, employee work engagement was positively associated with improved employee performance. Partially supportive evidence for the mediating roles of organisational commitment (affective and normative) and work engagement in the association between job satisfaction and performance was also shown. Whereas limited mediation and no moderation effects were demonstrated by continuance commitment. Overall, the variables examined here were collectively predictive of employee performance, with job satisfaction being the most significant variable. The study's limitations include its cross-sectional design, the potential for self-report bias via the use of the same source of data, the potential reliance upon non-probability sampling techniques and the use of a single case study of a motor retailer that restricts generalisability and potential causality. It is recommended for the motor retail organisation to develop specific strategies for enhancing each of the above identified factors. It is furthermore also suggested that subsequent studies into this area could use longitudinal methodology in addition to utilising broader sampling techniques.