Impact of Employee Participation on Employee Satisfaction in SMEs - Essay Example

However, an exception to this trend has found in this research study in India. Unlike large organizations, small and medium-size companies in India do not encourage practices of high employee participation in organizational matters. To study the influence of employee participation on the job satisfaction level of employees, a survey was conducted in eleven small and medium enterprises of India. Total 460 questionnaires were got filled from these companies and data was collected on three variables including employee participation, employee motivation, and employee job satisfaction.

Through SPSS statistical analysis, the data was analyzed and it was found that high employee participation has a positive influence on job satisfaction. It has also found that motivation of employees appears as an intervening variable between the two. Based on the analysis, recommendations have been given to entrepreneurs who are seeking to improve organizational culture and satisfy their employees. For the last several years, Human Resource Management practices are being considered very important to enhance organizational performance.

Regardless of the size of organizations, research on the influence of these practices in an organization has become the very critical area of research. Peter Drucker was the first who emphasized 50 years ago that workforce of a company should be treated as assets rather than costs and liabilities (Pinto). In an attempt to attract and maintain highly skilled labor and to achieve set targets, organizations are developing policies and procedures that may enhance the efficiency of employees at the workplace.

Along with attractive financial benefits, human resource management practices are also being considered very significant in shaping the employees’ efficiency. Employees’ job satisfaction is considered as the product of various factors.