Job satisfaction appears to be related to organizational performance, suggesting that organizational changes that improve employee job satisfaction can also improve organizational performance.

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Job satisfaction matters to managers because it is related to several employee and organizational outcomes, including job performance, organizational citizenship behaviors, life satisfaction, withdrawal behaviors, and organizational performance. The relationship with turnover itself is weak, so turnover should be treated as one signal rather than the only indicator of job satisfaction.

Importance of Job Satisfaction

Spielman, R. M., Jenkins, W. J., & Lovett, M. D. (2020, April 22). Psychology (2nd ed.). OpenStax. https://openstax.org/books/psychology-2e/pages/1-introduction

OpenStax Psychology (2nd ed.) Textbook

Measures of job satisfaction are somewhat correlated with job performance, especially organizational citizenship or discretionary employee behaviors that further the goals of the organization.

Job Satisfaction and Job Performance

Job satisfaction is related to general life satisfaction. One carefully controlled study suggested a reciprocal relationship: job satisfaction positively affects life satisfaction, and life satisfaction positively affects job satisfaction, although organizations cannot control life satisfaction's influence on job satisfaction.

Job Satisfaction and Life Satisfaction

Low job satisfaction is related to withdrawal behaviors, including leaving a job and absenteeism. The relationship between job satisfaction and turnover itself is weak.

Job Satisfaction and Withdrawal Behaviors

Job Satisfaction and Organizational Performance

Based on the provided scenario, analyze the problems at 'Innovate Solutions' by explaining how the concept of employee job satisfaction connects the issues mentioned in the exit interviews to the observed organizational outcomes.

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