Abstract
Public organizations are interested in how to improve their performance. Performance in a work unit can also influence employee job satisfaction due to positive expectations based on higher performance. Thus, our study attempts to investigate if organizational performance has an impact on employee motivation under the premise that employees who perform better in a work unit expect greater professional recognition and rewards. By using data from the 2013 Federal Employee Viewpoint Survey (FEVS), we find that employees who perceive higher levels of performance in a work unit have a higher level of job satisfaction. This paper further shows that performance perception based on rewards is also positively related to job satisfaction. However, underrepresented groups (female and non-white), older employees and mid-level (work experience from 6 to 14 years) employees are less satisfied with higher work unit performance. Finally, employees in the distributive agency category are more satisfied with work unit performance while those in the regulatory agency category are less satisfied with work unit performance. In conclusion, organizations should recognize particular characteristics of employees to develop the policies related to performance management, and effectively utilize these policies in order to attract and retain proficient workers.
Highlights
New public management (NPM) reforms have emphasized performance-focused organizational management and the government has become more interested in this management tool to improve its performance
By using data from the 2013 Federal Employee Viewpoint Survey (FEVS), we find that employees who perceive higher levels of performance in a work unit have a higher level of job satisfaction
Based upon the groundwork of the previous research on the measurement of perceived job satisfaction (Pitts, 2009), we use it as a dependent variable and tap into whether employees perceive that they are satisfied with their job by seeking answers to the following question: ‘Considering everything, how satisfied are you with your job?’ Respondents were asked to rate the questions on a Likert-type scale from 1, representing ‘very dissatisfied’ to 5, representing ‘very satisfied.’
Summary
New public management (NPM) reforms have emphasized performance-focused organizational management and the government has become more interested in this management tool to improve its performance. Previous examinations of organizational performance as an overall managerial tool have been undertaken, little empirical research has been conducted to determine the effects of perceived work unit performance on employee motivation in public organizations. Rather, most of these studies have examined the motivation and job satisfaction of employees and their effects on performance. Lawler (1971) argues that performance in an individual’s work significantly leads to job motivation; more positive perceptions of performance in work unit lead to higher levels of job satisfaction among employees in the organization as a result of expectations related to organizational performance. Higher levels of job satisfaction can decrease counterproductive work behaviors in employees (Dalal, 2005), prevent employees from leaving their position (Gleasonwynn and Mindel, 1999), and reduce absenteeism (Hardy, Woods and Wall, 2003)
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