Understanding organizational productivity and employee satisfaction

This paper aims to understand organizational productivity and employee satisfaction. The paper discusses about the connection between the two variables and how they are inter-related. Findings from experiments at the University of Warwick confirm that satisfied employees were almost 12% more productive as compared to dissatisfied employees who decreased their productivity by 10%. However, some studies have suggested that satisfied employees do not always lead to organizational productivity. Employee engagement plays a substantial role in employee performance and organizational productivity. It has been observed that though employee satisfaction affects employee performance, it cannot be considered as a direct indicator of the same. The factors affecting organizational productivity and employee satisfaction have been discussed in depth. The paper also suggests means to improve organizational productivity and employee satisfaction. The study has adapted the descriptive research approach.