Job Satisfaction and Its Effect on Employee Performance: A Study of Afghanistan’s Private Banking Sector
DOI:
https://doi.org/10.55544/ijrah.6.4.16Keywords:
job satisfaction, employee performance, private banking, compensation, organizational climate, working conditionsAbstract
Job satisfaction is a critical determinant of employee behavior and organizational effectiveness, particularly in service-intensive industries such as banking. This study examined the effect of job satisfaction on employee performance in Afghanistan’s private banking sector and assessed six dimensions of job satisfaction: payment system, nature of job, career advancement opportunities, organizational climate, leadership style, and physical working conditions. A quantitative, applied, descriptive-correlational, and cross-sectional design was adopted. The target population comprised 3,300 employees of selected private banks, from which 344 respondents were selected using Cochran’s sample-size formula and convenience sampling. Data were collected through structured instruments adapted from the Minnesota Satisfaction Questionnaire and the Individual Work Performance Questionnaire and analyzed in SPSS Version 27 using descriptive statistics, Cronbach’s alpha, normality assessment, Pearson correlation, and simple linear regression. The findings showed that overall job satisfaction had a positive and statistically significant effect on employee performance (β = .467, R² = .218, p < .001). Payment system (β = .341), nature of job (β = .350), career advancement opportunities (β = .304), organizational climate (β = .337), leadership style (β = .221), and physical working conditions (β = .362) also had positive and significant effects on performance. Physical working conditions, nature of job, and payment system demonstrated comparatively stronger explanatory power among the dimensions examined. The study concludes that private banks in Afghanistan can improve employee performance by adopting integrated human resource practices that strengthen fair compensation, meaningful job design, career development, supportive organizational climates, effective leadership, and appropriate workplace conditions.
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