Shifting Gears: A Study of Job Satisfaction and Performance in a Auto Dealership Company

Shifting Gears: A Study of Job Satisfaction and Performance in a Auto Dealership Company

Susan E. Cornelio, Sharon Candy M. Mahusay

University of Santo Tomas

DOI: https://dx.doi.org/10.47772/IJRISS.2024.807061

Received: 23 May 2024; Revised: 26 June 2024; Accepted: 01 July 2024; Published: 01 August 2024

ABSTRACT

This research aims to examine the relationship between job satisfaction and performance at a car dealership firm using a quantitative survey approach. An analysis was conducted on employee demographics, including age, sex, marital status, education, tenure, and job function, in order to provide insight into the makeup of the workforce. The results emphasize the need of accommodating a heterogeneous workforce for maximum efficiency. The survey also uncovered a favorable opinion of job satisfaction among workers, indicating a nurturing work atmosphere. Ultimately, a robust association between job satisfaction and performance was established, emphasizing its pivotal role in the dealership’s success. These results highlight the need of implementing focused talent management strategies and ongoing initiatives to promote employee satisfaction in order to achieve long-term organizational success.

Keywords: job satisfaction, employee performance, car dealership, employee demographics, diverse workforce

INTRODUCTION

The automotive dealership business in the Philippines is a thriving sector that makes a substantial contribution to the country’s economic growth. Nevertheless, the achievement is dependent on a key element: its employees. Dealerships in a competitive market require a workforce that is both highly motivated and engaged in order to achieve maximum sales and service objectives. It is essential to comprehend the correlation between work happiness and employee performance in this particular business.

Employee happiness involves several facets of work life, such as remuneration, work atmosphere, career advancement prospects, and acknowledgment. Content personnel are more inclined to display favorable attitudes, less absenteeism, and a higher propensity to go above and above for customer satisfaction.  Consequently, this leads to better sales results, greater customer service, and eventually, more profitability for the dealership.

While research conducted in other countries has shed light on the well-established link between job satisfaction and employee performance, a critical gap remains in understanding this dynamic within the unique cultural and commercial landscape of the Philippine car dealership industry. This study seeks to bridge this gap by examining the relationship between job satisfaction and employee performance in this specific context.

To achieve this objective, the study analyzes the demographic makeup of dealership teams, focusing on factors such as age, sex, marital status, education, tenure, and job role. Likewise, it also examines the current level of job satisfaction among employees in the auto dealership company. By understanding how satisfied employees are with their work environment, compensation, and growth opportunities, the study can then explore the resulting influence on their productivity.

Through this stated approach, the study aims to provide actionable recommendations for dealerships. By analyzing the link between job satisfaction and employee performance, along with the demographic profile of the workforce, the study intends to offer valuable insights for creating targeted interventions. These interventions can focus on fostering a more positive work environment, nurturing a contented staff through improved job satisfaction, and ultimately leading to enhanced overall performance within Philippine car dealership.

More specifically, it seeks to address the following research questions:

1. What is the demographic profile of the survey participants from the auto dealership companies in terms of:
2. Age,
3. Sex,
4. Marital status,
5. Education,
6. Tenure, and
7. Job role?
8. What is the level of job satisfaction in the organization as perceived by the employees of auto dealership organization?
9. What is the perceived extent of effect of the employee’s satisfaction to their respective performance?
10. What actionable recommendations can be provided based on the findings of the study?

REVIEW OF RELATED LITERATURE

The literatures covered in this section include the following topics: (1) job satisfaction; (2) job satisfaction vis-à-vis employee performance; (3) diverse workforce (4) employee motivation in autodealership firms.

On Job Satisfaction

Job satisfaction refers to an individual’s positive emotional state that arises from positive work experiences or a general feeling about their job or career (Locke, 1976 as cited in Puhakka, Nokelainen, & Pylväs, 2021; Spector, 1997 as cited in Puhakka, Nokelainen, & Pylväs, 2021). Researchers have shown interest in recent studies on job satisfaction, considering the many internal and external elements that affect changes in workplace atmosphere, job attributes, and the employment expectations of younger generations (Wen et al., 2018). A agreement has been achieved among academics, researchers, and practitioners about the variables that lead to job pleasure. job qualities, collaboration atmosphere, organizational devotion, job autonomy, and leadership style are all factors that contribute to this. Nevertheless, they lack awareness of the significant influence that these elements have in different organizational settings (Bhardwaj et al., 2021). According to Cignitas (2022), the BSC’s principles of learning and advancement are linked to an improvement in workers’ pleasure in the workplace.

While these literatures establishes job satisfaction as a key factor influenced by work environment, job attributes, and generational shifts (Puhakka et al., 2021; Wen et al., 2018), a critical gap remains. There’s a general agreement on factors contributing to job satisfaction, like work quality, collaboration, and leadership style (Bhardwaj et al., 2021). However, the literature acknowledges a lack of understanding regarding the magnitude of these factors’ influence across different organizational settings.  Moreover, incorporating the concept of learning and growth opportunities (as linked to job satisfaction by Cignitas, 2022) allows for the exploration of this potentially significant factor and provide a more nuanced understanding of job satisfaction within Philippine car dealerships.

George and Zakkariya (2015), as cited in Bakan and Yılmaz (2021), identified two primary factors that contribute to job satisfaction based on a comprehensive analysis of existing research. There are two sources of pleasure: internal contentment and external fulfillment. “Intrinsic satisfaction” in the field of organizational behavior refers to the degree to which an employee derives pleasure from their work due to factors that are not within their control, such as their own perception of their value, opportunities for professional growth, accountability, and positive feedback from supervisors and colleagues (Raddaha et al., 2012 as cited in Adamopoulos, 2022). Conversely, “extrinsic satisfaction” pertains to the level of contentment that employee has with external factors outside their influence, such as their work environment and colleagues. These characteristics include factors such as salary, interpersonal dynamics at work, leadership, occupational health and safety, career growth prospects, job security, assimilation into social circles, and social status (Chang et al., 2021). When workers possess strong intrinsic and extrinsic motivation, they are more likely to surpass expectations and achieve both their own goals and the objectives of the firm (Conrad et al., 2015 as cited in Tumi, Hasan, & Khalid, 2022).

Consequently, a contented employee is less inclined to resign from the firm or take unwarranted sick leave, and their satisfaction at work may profoundly impact the overall culture and work atmosphere of the organization (Yanchovska, 2021). Such instances have a beneficial impact on staff retention rates in the long term. Hence, organizational behavior, human resource management, and overall management are all centered on the concept of job satisfaction (Mgaiwa & Hamis, 2022). Spector, in his 1997 research (as cited in Buntaran, Andika, & Alfiyana, 2019), made a distinction between work satisfaction and employee satisfaction. While the two notions have similarities, they possess separate meanings and uses. Employee satisfaction is a more comprehensive notion compared to job satisfaction, which is mostly focused on the job itself and its specific tasks and responsibilities. Employee happiness includes a wider range of characteristics such as the work environment, business culture, and other elements that influence the overall experience of the employee (Buntaran, Andika, & Alfiyana, 2019).

Assessing job satisfaction is crucial for making optimal management decisions that promote workers’ productivity and well-being (Lepold et al., 2018). When assessing the degree of job satisfaction among workers, it is crucial to include not only their ambitions and wishes, but also their levels of enjoyment, frustration, and dissatisfaction (Goretzki et al., 2022). Kaplan and Norton (1996 as cited in Utomo, Machmuddah, & Setiawanta, 2019) propose that a method to measure overall results is to assess employee satisfaction. Additionally, evaluations of the specific skills required to thrive in the competitive business environment of today might be included. Lepold et al. (2018) references a study conducted by Kaplan and Norton (1996) which proposes that employee satisfaction might serve as an indicator of the efficiency of the learning and development approach in enhancing productivity and quality. Kaplan and Norton (1996) suggested including many variables into employee satisfaction surveys to assess learning and advancement.

The focus in this research is on job satisfaction. Multiple studies and scholarly publications have identified indicators of job satisfaction. Nguyen (2019) aimed to identify indicators of job satisfaction by examining several aspects of the work environment. The following are some factors that might impact work satisfaction: The factors that influence job satisfaction include rules pertaining to personnel policy, job security, the nature of the job itself, supervision from management, remuneration, working environment, fringe benefits, and connections with colleagues. The work itself is typically the primary determinant of job satisfaction, although other factors such as management, pay, advancement opportunities, working conditions, colleagues, organizational support, and communication can also contribute (Judge & Church, 2000 as cited in Ali, Rana & Islam, 2018).

This literature review highlights the multifaceted nature of job satisfaction, influenced by both intrinsic and extrinsic factors (George & Zakkariya, 2015 as cited in Bakan & Yılmaz, 2021). Intrinsic factors, like a sense of growth and positive feedback, contribute to a sense of internal fulfillment. Extrinsic factors, such as salary and work environment, provide external satisfaction. When both are present, employees are more likely to be highly motivated and productive (Conrad et al., 2015 as cited in Tumi, Hasan, & Khalid, 2022).

This research focuses on job satisfaction within the Philippine car dealership industry. While the reviewed literature offers a comprehensive list of potential factors impacting job satisfaction (Nguyen, 2019; Judge & Church, 2000 as cited in Ali, Rana & Islam, 2018), it’s important to acknowledge the potential for varying significance across industries. For instance, the specific tasks and responsibilities within a car dealership might elevate the importance of certain factors compared to others.

Furthermore, Spector’s distinction between job satisfaction and employee satisfaction (Buntaran, Andika, & Alfiyana, 2019) is noteworthy. While employee satisfaction encompasses a broader range of experiences, this research will concentrate on job satisfaction as it directly relates to the specific tasks and environment within car dealerships. By focusing on this specific context, we can gain deeper insights into the factors that most significantly influence job satisfaction for dealership employees. This information is crucial to one of the foci of this study, which is recommending targeted interventions to improve employee well-being and performance.

Job Satisfaction vis-à-vis Employee Performance

Employee performance describes how well an employee does his work. It alludes to how efficient, effective, and high-quality their work is. The value of an employee to an organization is determined in part by their performance. Likewise, the health of every firm depends on its ability to measure and enhance employee performance. Thus, in measuring employee performance, actions and their quantifiable results are extremely significant (Rosdi, Alias & Ismail, 2020).   Similarly, in Mathis and Jackson (2008 as cited in Hanafiah, Nasrun & Restu, 2020), it was explained that ability, effort, and organizational support are the three (3) most important aspects of an employee’s performance.

In most literature, the relationship of job satisfaction and individual performance is highly emphasized.  In Kaplan and Norton’s (1996) learning and growth measurement framework, it was explained that job satisfaction drives employee retention through employee performance. In the study of Fidyah and Setiawati (2020), it was explained that a good indicator of an employee’s job satisfaction is how invested he is in the company as a whole. Similarly, job satisfaction is an important indicator of an employee’s performance as it correlates with their degree of enjoyment on the job and their level of accomplishments. According to the findings, there is a strong correlation between an employee’s satisfaction on the work and their productivity.  Similarly, a high value for the employee engagement variable is associated with greater work satisfaction since it leads to better performance on the job (Fidyah & Setiawati, 2020).

Work satisfaction was also studied by Supriyanto, Ekowati, and Pujianto (2021) to determine its role as a mediator between employee engagement and performance.  Its findings have established that productivity increases with engaged employee, while job satisfaction boosts performance and improves results. In a Philippine study that explored the influence of employee engagement among workers in a province revealed that work satisfaction and employee engagement were positively correlated, thus, affecting employee productivity and performance (Dayrit & Lacap, 2020).  Another Philippine study was consistent with the findings of the vast majority of prior research, which also established a positive correlation between employee involvement and work satisfaction. Thus, it stands to reason that happier employees would be more invested in their work and are more productive (Ang & Rabo, 2018).

This review confirms the well-established positive relationship between job satisfaction and employee performance (Rosdi et al., 2020; Kaplan & Norton, 1996 as cited in Hanafiah et al., 2020; Fidyah & Setiawati, 2020). Satisfied employees tend to be more engaged, productive, and invested in the company’s success (Fidyah & Setiawati, 2020; Supriyanto et al., 2021). A very important aspect in this study, this highlights the importance of fostering a positive work environment that contributes to job satisfaction.

However, it is also important to acknowledge that the specific factors influencing job satisfaction might vary across industries (Nguyen, 2019). For instance, the sales-driven nature of car dealerships might elevate the importance of factors like commission structures and recognition for top performers compared to other industries. This study aims to explore these potential variations within the Philippine car dealership context.  Thus, by examining the specific relationship between job satisfaction and performance within car dealerships, valuable insights can be gained for improving employee well-being and overall organizational effectiveness.

Diverse Workforce

Based on researches, one of the indicators of employee performance and productivity are the demographic factors inherent to each employee. Personal characteristics, including age, gender, marital status, degree of education, and the number of years of employment or tenure, are regarded as demographic factors in many studies affecting many aspects in the organization (Amegayibor, 2021). Every company must prioritize human resources planning to manage the demographic mix of its staff successfully because of the importance of young workers’ energy, work ethic, and mobility in the corporate world. Employee demographics are crucial to a business’s operation, and the management should not undervalue these elements. Demographic failure may threaten an employee’s efficiency, effectiveness, and overall well-being.

Age is the interval between a person’s birth to any particular period (Khan et al., 2013 as cited in Amegayibor, 2021). Demographers use age as one of the leading quantitative variables because they found a link between mortality and age as early as three centuries ago. Séguy et al. (2019) claim that since chronological age looks at all demographic phenomena as a choice variable, it is the factor that determines demographic behavior. Further, they concluded that as a person age, their experience, wisdom, and sense of responsibility grow with them. Therefore, as more time passes, the likelihood of having a switchover decrease. Consequently, persons in their forties and fifties are more dedicated to the organization than those just starting.  While the reviewed literature establishes age as a factor influencing employee behavior and potentially job satisfaction (Séguy et al., 2019), its specific impact within the car dealership industry remains unclear.

According to Khan et al. (2013 as referenced in Amegayibor, 2021), gender refers to the condition of being male or female, with an emphasis on social and cultural distinctions, as opposed to the word ‘sex,’ which pertains to biological distinctions.  Some studies have revealed no significant relationship as regards the sex of the participants with intention to stay or leave their work and in job satisfaction (Al-Muallem & Al-Surimi, 2019; Dartey-Baah et al., 2020; Feng & Savani, 2020).   However, there are still researches where there are differences in job satisfaction and performance between men and women in some industries and occupations (Zhang et al., 2019; Pagan & Malo, 2021). Thus, the relationship between an employee’s sex and their satisfaction and performance at work is complex and can depend on a range of factors. Accordingly, despite some studies finding no significant gender difference in job satisfaction (Al-Muallem & Al-Surimi, 2019), the auto dealership industry might present a unique context.

Being married, single, divorced, or widowed are the four possible outcomes when considering an individual’s relationship or marital status. Job satisfaction can also be affected by whether or not one is married. Married workers report more satisfaction in their work than their unmarried counterparts. According to the Yldrm, Gülmez and Yldrm (2016 as cited in Kara, 2020), this finding is a good reflection of the transfer of authority from the home to the workplace. The link between marital status and job satisfaction is debated, with some studies suggesting married employees find more work satisfaction (Kara, 2020). Likewise, it is unclear if this dynamic holds true within the car dealership industry, where work-life balance and demanding schedules might be significant factors.

Education is the process of developing knowledge and skills to solve a problem in the most effective way feasible at any particular moment. Education gives one the “capacity to adapt to changing circumstances and environments,” as defined. As stated in Sudarsana et al. (2019), education is more than just an excellent financial investment; it is an essential component of human life, development, and continued existence. According to the research findings, the level of professional qualification influences the level of satisfaction and motivation experienced by workers. Consequently, education level has been one of the significant factors in accomplishing organizational goals (Dewi, 2021). However, some practitioners say that the level of professional qualification held by different employee categories does not significantly influence job satisfaction and motivation levels.  In the context of this study, while educational attainment can influence job satisfaction and motivation (Sudarsana et al., 2019; Dewi, 2021), its specific impact within car dealerships remains to be explored. Thus, this study can look into how education level interacts with job satisfaction and performance considering the potential importance of both technical skills and soft skills for success.

Tenure refers to an employee’s length of service in the same company regardless of the position. According to (Bartlomiejczuk, 2015 as cited in Kalia & Bhardwaj, 2019), human capital theorists hypothesized that the duration of an employee’s tenure was directly proportional to the value of that individual in the labor market as it demonstrates organizational commitment and job engagement. Knowledge and skills necessary for effective job performance are likely to be created and enhanced throughout years of service and through learning from trial and error, training interventions, and functional exposures.  Tenure, an employee’s time with a company, is linked to increased knowledge, skills, and potentially higher job satisfaction (Kalia & Bhardwaj, 2019). However, within the car dealership industry, the specific impact of tenure on job satisfaction and performance – considering factors like potential plateaus or a desire for new challenges – remains to be investigated.

The job role is used to refer to the most significant tasks that are connected to an employment profile or position. A person’s job role is the part they are expected to play following the deliverables or critical result areas they are responsible for within the company. Duties and responsibilities, which are frequently outlined in the job description, are under the purview of the employee hired to fill the position. Job roles are often clustered into families with similar functional activities. Some examples of job families are sales and marketing, finance and operations (Mhamdi et al., 2020).  Conversely, while the literature establishes job role as a key factor influencing employee experience (Mhamdi et al., 2020), it is unclear how different dealership roles can uniquely influence job satisfaction and performance.

Employee Motivation in Autodealership Firms

For the automotive industry to ride the waves of technological breakthroughs and tight market competition, dealers need to sharpen their strategic planning (Turzai-Horányi, 2019). Strategic planning is essential to every organization’s success, enabling the business to realize its potential and competitive advantage in an increasingly complex environment. Typically, the organization’s top management engages in this activity to define or revisit its company vision and identify its short- and long-term goals and objectives (Nguyen, 2020). Management’s vision is organized within a framework provided by strategic planning as it uses the strategic planning process to define the organization’s vision, formulate its mission, and map out its strategy to get there (Ireri & Deya, 2019).

Relatively, dealerships strive to maintain relationships with customers, specifically those loyal to the brand (Golara, Dooley, & Mousavi, 2021). According to Borchardt et al. (2018), it is far more cost-effective for dealerships to keep clients who are already loyal, content, and even delighted with their service than it is to bring in new consumers. Dealers must reliably meet or exceed customer expectations with high-quality products and services. Among the many things that are expected are things like finishing tasks on the first attempt, being punctual for appointments, treating customers with respect, and providing value in sales, trades, and service (Opata, 2020). Driven by this commitment, employees play a crucial role in maintaining loyalty and gaining new customers. Companies frequently disregard the essential issue of increasing staff motivation and engagement despite allocating substantial budgets to cultivating consumer loyalty. Employees can play a critical role in gaining the hearts and minds of customers in today’s competitive environment. Unless the personnel is adequately motivated, they will have very little interest in successfully encouraging the customers and keeping them as clients (Turzai-Horányi, 2019).

Even though dealerships often have very little to no influence on product design and characteristics, they are naturally the first point of contact that has the potential to create a meaningful impact on customer experience (Golara, Dooley, & Mousavi, 2021). It appears that the quality of after-sales service that dealerships provide customers has been the determining factor in the success or failure of the automotive manufacturer. However, to keep the standard quality of service, auto manufacturers provide technical training across the dealerships. Therefore, in the most recent study by Golara, Dooley, and Mousavi (2021), they addressed the controversy over the significance of dealerships’ presence to the market success of manufacturers. Their findings indicate further that customers put value and heavy reliance on the superior after-sales service offered by the dealership. In addition, they posited that the profitability of the automotive manufacturers is dependent not only on product superiority but also on the level of service provided by the dealerships carrying their brand.

Numerous academics have investigated the effect after-sales services have on the levels of customer satisfaction and customer loyalty experienced by businesses operating in various market sectors. (Shokouhyar, 2020; Blut et al., 2018; Arabi et al., 2018). The dealerships are the distribution channels of the manufacturers. For this reason, manufacturers must maintain efficient collaboration and productive relationships with their dealerships to optimize the number of vehicles passing through their distribution channels. To achieve an efficient partnership between the two parties, an” incentive scheme” is the most successful technique for motivating dealers to engage while aligning them with the business goals of the auto manufacturer.

This part of the literature review highlights the critical role dealerships play in the automotive industry, particularly regarding customer experience and brand loyalty (Turzai-Horányi, 2019; Golara et al., 2021). It emphasizes the importance of strategic planning and employee motivation in achieving dealership success (Nguyen, 2020; Turzai-Horányi, 2019).

However, it is primarily focused on dealerships from a customer or manufacturer perspective. While after-sales service and customer satisfaction are undoubtedly important, there’s a gap in understanding the internal dynamics that influence dealership effectiveness. Specifically, limited research explores how employee job satisfaction within dealerships translates to customer experience and overall performance.

Hence, by understanding these internal factors, dealerships can develop targeted strategies to improve employee well-being and ultimately enhance customer satisfaction and loyalty. Eventually, the study’s aim to bridge this gap by examining the link between job satisfaction and employee performance within the Philippine car dealership industry, is achieved.

Study Framework

This study in underpinned by relevant human resource theories that can explain the correlation of demographics, job satisfaction, and employee performance.  Thus, the following are the study’s theoretical frameworks:

Herzberg’s Two-Factor Theory, initially proposed in 1959 and elaborated further in 1968, provides a valuable framework for examining the correlation between demographics, job satisfaction, and employee performance (Thant & Chang, 2021). Motivators and hygiene factors are two distinct types of aspects that could affect job satisfaction or discontent, according to this theory.  The core nature of the work itself is at the heart of what motivates people to do it. Achievement, recognition, advancement, accountability, growth, and the nature of the work itself are all elements that fall under this aspect. There is a correlation between these factors and highly motivated and fulfilled employees.  On the other hand, hygiene factors are more inherent to the job and its surroundings. Business administration and policy, job security, pay, supervision, interpersonal connections, supervisory relationships, working conditions, and benefits are all part of this list. While having enough hygiene factors could help an employee avoid being unhappy at work, it doesn’t guarantee that an employee will be happy in his position.  Herzberg’s theory posits that job satisfaction and dissatisfaction are not on a single continuum but are independent phenomena influenced by different factors.  In the context of examining the correlation between demographics, job satisfaction, and employee performance, Herzberg’s Two-Factor Theory offers a structured approach to understanding how various intrinsic and extrinsic factors impact employees differently. Demographic variables such as age, gender, educational attainment, and tenure can influence how employees perceive motivators and hygiene factors. For instance, younger employees might place higher importance on career advancement (a motivator), while older employees might prioritize job security (a hygiene factor). By identifying and analyzing these variations, organizations can tailor their strategies to enhance job satisfaction and performance across different demographic groups, ultimately leading to a more engaged and productive workforce.

Victor Vroom’s Expectancy Theory, proposed in 1964 (as cited in Khan et al., 2021), provides a comprehensive framework for understanding the correlation between demographics, job satisfaction, and employee performance. According to this theory, individuals are motivated to work towards desired outcomes based on their expectations that their efforts will lead to successful performance, which will, in turn, yield specific rewards. Expectancy, instrumentality, and valence are the three pillars upon which the theory rests.  Expectancy is the certainty that one’s efforts will yield the desired outcome. High performance is considered crucial if there is a good chance that it will lead to a specific reward.  Valence pertains to the value that individuals place on the expected rewards.  Vroom’s Expectancy Theory highlights that individual differences, such as demographics, can significantly impact employees’ expectations and perceptions of their roles and rewards. Demographic factors like age, gender, educational background, and tenure can influence what employees value (valence), their confidence in achieving performance goals (expectancy), and their belief that performance will lead to desired rewards (instrumentality).  By applying Vroom’s Expectancy Theory, organizations can better understand how to align their motivational strategies with the diverse needs and expectations of their workforce.  This theory’s focus on individual expectations and values makes it particularly useful for designing tailored programs that address the varied demands of a diverse employee base, ultimately leading to improved organizational outcomes.

Conceptual Framework

The conceptual paradigm of this study is based on its intent to explore the relationship between demographics and job satisfaction,  and employee performance at a car dealership firm.The diagram in Fig. 1 portrays a moderated mediation model that investigates the connection between employee demographics and performance in a car dealership environment, with job satisfaction serving as an intermediary. It is anticipated that demographic variables, such as age, sex, education, and tenure, have an impact on employee job satisfaction.  Consequently, job satisfaction is anticipated to result in enhanced employee performance.  The framework also proposes that demographics might potentially affect the correlation between job satisfaction and performance. This implies that the influence of job satisfaction on employee performance may vary in intensity for certain demographic cohorts. This approach emphasizes the need of taking into account both job satisfaction and employee demographics when analyzing the elements that impact employee performance in the car dealership business.

Fig. 1 The Conceptual Framework of Shifting Gears: A Study of Job Satisfaction and Performance in the Auto Dealership Industry

METHODOLOGY

Research Design

This study adopted a quantitative research design, aligning with Patricia Leavy’s (2022) definition that emphasizes breadth, statistical descriptions, and generalizability.  The study’s primary objective was to explore the relationship between job satisfaction and employee performance within the car dealership industry. Thus, quantitative methods offer a structured approach to achieve this goal.

Following a deductive design, the research aimed to test a specific hypothesis: that job satisfaction has a positive impact on employee performance.  This “top-down process” (Fallon, 2016, as cited in Leavy, 2022) involved collecting data through an employee survey. This method allowed the study to gather standardized responses from a large sample of autodealership employees, ensuring objectivity and precise measurement of job satisfaction and performance. Analyzing this quantitative data statistically enabled the study to identify patterns, correlations, and potentially causal relationships between the variables, ultimately providing robust and generalizable insights that can be applicable to the broader car dealership industry.

Population and Sampling

The respondents of the survey came from the seventy-two (72) dealerships located in different cities and municipalities across the Philippine.  Aside from being team members or line managers of the autodealership firm, they were selected because they are working full-time for at least one (1) year. There are at least 4,000-line managers and team members in the autodealership firm across the Philippines and this constitutes the target population of this study.  Using the simple random sampling approach in calculating the sample size as employed in http://www.raosoft.com/samplesize.html, the study was able determine the number of survey respondents, which is 351 participants. The formula for the simple random sample size calculation is:

z^2 * p(1-p) / e^2 * (N / (N-1))

Research Instrument

The survey questionnaire used in this study involves three parts: (1) demographics, (2) job satisfaction, and (3) impact of job satisfaction to employee performance.  The demographic profile part consists of questions on age, sex, marital status, educational attainment, length of service or tenure, and job role (whether team member or line manager). The second part consists of indicators of job satisfaction which were based on the different facets of job satisfaction as identified by Judge and Church (2000 as cited in Ali, Rana & Islam, 2018) and Nguyen (2019).  The last part relates job satisfaction to the performance of the participants based on earlier learning and growth framework of Kaplan and Norton (1996 as cited in Utomo, Machmuddah, & Setiawanta, 2019).

The second and third parts of the research instrument involves four-point Likert question items regarding the participants agreement or disagreement to the indicators of job satisfaction and their effects to employee performance.  They were scored using numerical ratings, such as: four (4) for “strongly agree”, three (3) for “agree”, two (2) for “disagree”, and one (1) for “strongly disagree.”

Data Gathering Procedure

As the research employed a quantitative approach to study the link between job satisfaction and employee performance in car dealerships, it followed a data gathering procedure.  The development survey questionnaire was subjected to pilot testing involving 19 participants. The research instrument was subjected to reliability analysis using Cronbach Alpha and the α coefficient values for all parts of the questionnaire exceeded 0.9, demonstrating that the included question items were acceptable.  After the sample selection, the survey was administered to target participants upon acquiring their informed consent. Collaboration with the dealership management was sought to distribute the links of the questionnaire which was converted to Google forms for faster dissemination and collection. Eventually the gathered data was subjected to subsequent data analysis.

Data Analysis

The data that was gathered in this study were subjected to the following statistical treatment:

Frequency and Percentage Distribution. The number of respondents determined the frequency of each response in terms of their demographic profile, particularly on their age, sex, marital status, educational attainment, tenure, and job role. Frequency and percentage distribution were be used to determine the proportions of the given category to the whole population.

Weighted Mean. The level of job satisfaction and its extent of effect to employee performance were determined through weighted mean.  It was used to consider how each individual data point contributes to the whole by multiplying each rating or data point by a fixed value or weight.  The following scale range were used to interpret the results of calculating the weighted mean.

Standard Deviation and T-test. Based on the results of the weighted mean, the standard deviation was used to further analyze the gathered data.  The standard deviation quantifies the distance that certain data points are from the mean, such that some data points are more important than others.

To determine the significant difference of responses when grouped according to demographic variables, inferential analysis by t-test was employed.  The t-test is a common tool for testing hypotheses about the differences between two groups, which is in this case are the responses in job satisfaction and its effect to employee performance, and the demographic variables.

RESULTS AND DISCUSSIONS

Survey Participants’ Demographics

Survey participants include team members and line managers in the autodealership firm all over the Philippines.  The sample size of the survey is 351.

Understanding demographics is crucial to contextualizing the discussions from a learning and growth perspective. The study examines demographic characteristics like age to reveal the various generations in management. Sex and marital status explain gender dynamics and how family commitments affect work perceptions. Individuals’ academic backgrounds impact their attitudes toward professional advancement. Likewise, tenure indicates organizational experience.  Table 2 presents the results of the survey in terms of respondents’ demographic profiles.

TABLE I Demographic profile of the respondents (N=351)

The survey findings reveal a diverse age distribution among participants, with the majority falling between the 20-20 and 30-39 age brackets, with 248 (70%+) respondents. Accordingly, those with ages of 40 and 49 (81), and 50 and above (22) have a smaller cohort. These findings show that there is prevalence of younger workers in the company, namely those aged 20-39, that may indicate youthful vigor, capacity to adapt to technological progress, and potential for professional progression among the majority of the workforce.  In Collet and Legros (2016 as cited in Janse van Rensburg, Claassen, & Fourie, 2019), a person’s age is considered to be a measure of the wisdom, experience, and expertise that person has gained over the years.  Conversely, the reported ages of 40 and beyond may need specific efforts focused on keeping skilled personnel and using their extensive knowledge and skills (Mulvie, 2021).

In terms of gender representation, the survey revealed a fairly equal distribution, with 174 male respondents and 177 female respondents.  This indicates progress towards gender parity in the workplace, demonstrating an inclusive atmosphere that fosters varied viewpoints and cooperation.  Such strategy is also common in most organizations, nowadays (De Kretser, 2020).

The survey also revealed varied marital status among participants, with a somewhat larger percentage of unmarried individuals accounting for 187 respondents, as opposed to 164 respondents who are married.  The higher number of single people in the organization may point to a labor group that is more mobile, flexible, and maybe more eager to pursue possibilities for professional growth and education. As the study of Janse van Rensburg, Claassen, & Fourie (2019) pointed out, marital status have a distinct impact on labor market outcomes of both male and female individuals.

Relatively, the survey results pointed to a diverse range of tenure or length of service among participants, with the majority having served for 1-5 years, including 206 (59%) respondents. A lower percentage of workers have tenures spanning from 6 to 20 years, such that there are 68 (19%) respondents with tenures between 6 and 10 years, 31 (9%) respondents with tenures between 11 and 15 years, and 20 (6%) respondents with tenures between 16 and 20 years.  The greater proportion of workers with a shorter length of service indicates a workforce subset comprised of individuals who have joined the business just recently. In the study of Lestari and Sinambela (2021), it was established that the length of service or tenure influences how employees act on the job. Thus, opportunities for learning and development are essential for these individuals in order to promote engagement, retention, and career progression.

In terms of job roles, a large percentage of participants are in the position of team members, with 225 (64%) responses, while 126 (46%) respondents hold employment as line managers.  The majority of team members points to a sizable cohort of leaders who are in charge of motivating the team, creating a great work atmosphere, and assisting with employee development.

These survey results on demographics highlight the significance of comprehending and addressing the varied demographic composition of personnel inside the car dealership organization. By capitalizing on the individual talents of different groups and addressing their specific requirements, the organization may create a vibrant and all-encompassing work environment that promotes employee satisfaction, engagement, and eventually, the notable performance. As deduced in the study of Morethe, Swarts, and Schultz (2020), to overcome talent shortages and eventually achieve strategic goals, organizations should capitalize in comprehensive and all-encompassing talent development programs. It was also highlighted in this study that supervisors and line managers must actively engage in talent development and should choose development interventions more effectively to fulfill individual and organizational goals.

Level of Job Satisfaction

TABLE II Employees’ Perception in terms of Job Satisfaction (N=351)

Note: 1.00 – 1.75: Very Low Level; 1.76 – 2.50: Low Level; 2.51 – 3.25: High Level; 3.26 – 4.00: Very High Level

Every indicator of job satisfaction within the car dealership firm received good scores in the study, which presents a positive image. The composite ratings indicate that workers have a high level of satisfaction, with a mean score of 3.14 and a standard deviation of 0.51. The highest five mean scores emphasize crucial factors that contribute to job satisfaction, such as equitable treatment and esteem from immediate superiors, alignment of responsibilities with talents and personality, prospects for training and development, assurance in employment stability, and efficient teamwork. Significantly, staff have a sense of trust in using their own discretion to meet the requirements of customers, promoting independence and empowerment.

These findings emphasize the significance of cultivating a work environment that is friendly and inclusive, where individuals’ contributions are valued, continual learning is encouraged, and professional growth is promoted.  This result coincides with the research outcome of the study of King et al. (2021), where a positive culture is necessary to optimize the impact of continuing professional development. A culture of trust and mutual respect, which is crucial for employee engagement and retention, is shown by supervisors providing equitable treatment and showing respect towards their subordinates. Accordingly, this finding aligns with the study of Moore and  Hanson (2022) where it was explained a transformed work environment with leaders who respect others, and the concept of shared decision-making in which employees who feel valued and respected are more likely to be engaged and contribute ideas. Moreover, the synchronization of job responsibilities with aptitudes and personality exemplifies purposeful workforce planning (Aguinis, 2019), guaranteeing that employees are assigned to tasks where they can flourish and make valuable contributions.

The provision of training, seminars, and cooperation activities displays a dedication to fostering staff growth and improving skills, which is essential for adjusting to changing industry trends and meeting client demands. The presence of job security fosters a sense of stability and a supportive corporate culture, which in turn motivates workers to commit to their long-term development and progression within the firm.

These survey findings demonstrate that the car dealership organization has been successful in creating a favorable work environment that promotes employee happiness, development, and productivity. As espoused in Samašonok et al. (2023), an inclusive work environment directly influences employee motivation, performance, and satisfaction, thereby leading to commitment to organizational goals, loyalty, efficiency, productivity, and psychological well-being. Relatively, to further boost employee engagement, retention, and overall organizational performance in the competitive automotive market, the firm should continue to emphasize learning and development activities, cultivate supportive leadership, and build a culture of cooperation and creativity.

A substantial influence on overall productivity and work performance is shown by the survey findings regarding the degree to which job  satisfaction affect their respective performance within the car dealership company. The composite mean score of 3.18, together with a standard deviation of 0.44, indicates a significant level of effect. This emphasizes the important significance of employee happiness in influencing performance results.

TABLE III Employees’ Perception in terms of Effect of Job Satisfaction to Employee Performance (N=351)

Note: 1.00 – 1.75: Very Low Level; 1.76 – 2.50: Low Level; 2.51 – 3.25: High Level; 3.26 – 4.00: Very High Level

The top five indicators that have high extent of effect on employee performance in the context of employee satisfaction are optimistic job outlook, future commitment drive, fulfilled expectations drive, office excitement boost, and mission inspiration. These findings emphasize the significance of cultivating a favorable work atmosphere, whereby workers experience motivation, appreciation, and alignment with the company’s objectives and principles.

Within the framework of the learning and growth perspective, these results underscore the interdependence of job satisfaction and employee performance. When workers possess a positive outlook on their employment opportunities, demonstrate loyalty towards the company’s future, and are driven by its purpose (Khalid & Boraji, 2024), they are more inclined to invest more effort, inventiveness, and commitment in order to accomplish organizational goals.

Moreover, as highlighted in Agrawal and Chauhan (2023), metrics such as meeting expectations and enhancing office excitement highlight the need of establishing explicit performance standards, offering constructive criticism, and fostering a working environment characterized by passion and optimism. These variables not only boost employee morale and work satisfaction, but also lead to enhanced job performance and overall effectiveness of the firm.

Furthermore, the significant association between the desire to fulfill a purpose and the commitment to future endeavors emphasizes the need of harmonizing individuals’ individual beliefs and ambitions with the company’s mission and long-term objectives.  These survey findings emphasize the crucial significance of job satisfaction in influencing performance outcomes within the car dealership organization. As emphasized in Karneli, Handayati, and Rijal  (2024), to boost learning, development, and sustained success in the automotive business, the firm should prioritize efforts that create a healthy work environment, align personnel with corporate objectives, and generate a feeling of purpose and drive.

CONCLUSION

This study examined the correlation between job satisfaction and employee performance in a car dealership environment, taking into account the varied demographics of the workforce. The results provide useful perspectives for creating a flourishing work environment that encourages learning, development, and peak performance.

The study’s examination of demographic data highlights the need for understanding and addressing the specific requirements of each employee.  Aspirations and development needs may differ among individuals of different age groups, educational backgrounds, and tenure levels. To foster a more dynamic and inclusive work environment, the dealership may acknowledge these various differences and adapt training, mentoring, and work-life balance programs appropriately. This will create an atmosphere where all individuals feel appreciated and assisted.

The employee survey’s first-rate results indicate that the dealership has effectively cultivated a work environment that places equal importance on productivity and the well-being of its employees. The presence of a supportive atmosphere has a significant role in fostering employee happiness, which is essential for maintaining consistently high levels of performance. By funding training programs and development activities, the dealership shows its commitment to growth by inspiring and involving its employees.

This study validates the crucial significance of job satisfaction in impacting employee performance inside the auto dealership company.  Employees that experience satisfaction with their work environment, prospects for growth, and salary are more inclined to be engaged, efficient, and dedicated to attaining organizational objectives. Through the implementation of focused interventions, the dealership can guarantee a highly efficient and driven team by consistently assessing and enhancing worker satisfaction.

The findings provide useful insights for the dealership to improve its human resource operations, promoting a culture of learning and development that eventually sustains the currently content employees and prosperous company.

RECOMMENDATIONS

Based on the survey findings, a pleasant work environment was shown by the substantial connections found between job satisfaction and employee performance. Particular actionable recommendations may be given with a focus on improving learning and growth based on the findings and demographic information provided (age, sex, marital status, education, tenure, and job function), as follows:

Targeted Training and Development. In terms of age, take into account the distinct requirements of various age demographics. Employees in the age range of 20-39 may have a greater inclination towards acquiring more technical skills training or certificates, while workers aged 40 and beyond may find leadership development or mentoring possibilities more advantageous. As for educational qualifications of the workforce, these may be maximized by offering specialized instruction to college graduates or those with advanced degrees to further stimulate and involve them. Providing targeted training programs for those with less formal education can also enhance their range of abilities.  Tenure can also be the basis for targeted training and development.  This can be done by accommodating varying degrees of expertise, such as offering extensive onboarding initiatives for newly hired individuals with 1-5 years of experience, as well as tailored training programs for seasoned workers with 11 or more years of experience, in order to enhance their knowledge and skills.

Mentoring and Coaching. The demographics of the workforce can also be used as basis for mentoring and coaching programs.  One way is to create a mentoring program that facilitates the transfer of information and promote career growth by pairing seasoned workers, particularly those nearing retirement, with fresher staff.  Another is allocating funds towards coaching program that is aimed at assisting individuals in recognizing their strengths and shortcomings, establishing objectives, and formulating strategies for personal and professional advancement.

Building a Culture of Learning. This can be achieved by promoting dissemination of knowledge that facilitates the arrangement of brown bag lunches, lunch and learn events, or internal knowledge-sharing platforms to provide opportunities for workers to showcase their skills and for colleagues to acquire information from one another.  Another way is promoting ongoing education that can provide tuition reimbursement or scholarship programs to support workers in their pursuit of further education or professional certifications that are related to their job responsibilities.

While this study provided valuable insights into the link between job satisfaction and employee performance within a Philippine car dealership, future research can be expanded to strengthen the generalizability and depth of understanding. Thus, the following are recommended:

One avenue for future research would be to replicate this study across a broader sample of Philippine car dealerships. This would allow for a more comprehensive understanding of whether the observed relationships hold true across different car dealership environments. Additionally, future studies could incorporate a longitudinal design to examine how changes in job satisfaction over time influence employee performance and overall dealership success.

Furthermore, future research could delve deeper into the specific factors influencing job satisfaction within the Philippine car dealership industry. This could involve qualitative studies to gain a richer understanding of employee needs and preferences. By exploring factors beyond demographics, such as leadership styles, compensation structures, and work-life balance opportunities, future research can provide even more targeted recommendations for auto dealerships to improve employee well-being and performance.

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