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Chapter 1


1.1 Background of the Study

In today’s competitive world, employee is an important asset to every organisation. An organisation cannot progress without employees. However, the success of an organisation depends on how the management utilise their workers’ capabilities in achieving organisation goals and objectives.

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Employees need to be inspired as well as motivated to perform well and perform efficiently. According to Smith (n.d.), employees who like where they work will help the company make more money. Sears conducted an 800-store survey that showed the impact of employee attitudes on the bottom line. When employee attitudes improved by 5%, customer satisfactionjumped 1.3%, consequently increasing revenue by one-half a percentage point. Seeking ways to motivate and build worker morale pays dividends to any business or organization. The motivated worker is more committed to the job and to the customer. This shows that happy employees performed well which increases the quality and quantity of their work.

Long time ago, employees were considered as merely an input to the production of good and services. However as time goes by, this way of thinking has changed as many studies has been done on the employees’ behaviour and job performance. An employee’s performance may affect the production of the company, from the quality to the quantity of the products and services. This is why the management must identify the factors affecting their worker’s performance. A high performance workforce is the most important foundation for organisation’s success no matter how big or how small the organisation is.

Job performance is the ability and skill that an employee possesses in performing the job required by the employer. The level of performance by the employee is going to affect the organisation’s goal and productivity. Besides, employees’ performance may also be affected by the management of the company, the job itself or even the employee’s own behaviour. Good job performance provides great achievement to the organisation, harmony in the workplace and also employees’ self-accomplishment. Thus, to have a good workforce and good employee performance, organisation must firstly identify and understand the factors which affect the employees’ job performance in achieving company’s goal.

1.2 Research Problem

For centuries, individuals have questioned and performed research on the factors affecting employees’ job performance and yet the answers may vary from one another. Some researcher said that employees’ performance is influenced by their pay and some said they are not. Employees are an organisation’s important asset which is why good performance by the employees is essential in producing good job quality and productivity. Employees are the ones who are running the organisation on behalf of the company. They have the responsibilities to perform well for the company in order to achieve organisation goal and compete with other organisations in the same industry.

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