The Benefits of the Satisfied Employee

(Norris Niebuhr 1984). This idea of there being a moderated variable derives from the concept of 'the locus control' which is the way in which employees decipher their successes and failures. Niebuhr further explains that it is a normality that an employee would base their success on internal factors and failures on external factors. As a result Norris and Niebuhr believe attributing performance internally is extremely vital in increasing job satisfaction and job productivity. The reason to why they believe is this is because they see their own actions leading to success and satisfaction and thus their further behaviour and actions are shaped from their past helping them maintain an ethic to continuously feel satisfied from the work they do. This is an example showing that a control of actions can lead to satisfaction and as aforementioned is known as the moderating variable. Taking many factors of this theory into account, overall this theory is alignment with the statement of 'satisfied employees are more productive' and this can be seen through the variable of the locus of control. Also due to cyclic nature of this idea, it reinforces the idea that productive employees are more satisfied.
             Additionally, psychologist Frederick Herzberg's "Two Factor Theory" (Herzberg, Mausner and Snyderman, 1959), explains that there are certain criteria that must be fulfilled in order for an employee to feel satisfied. These criteria come under two categories known as "motivators" and "hygiene" factors. Motivating factors such as recognition, advancement and responsibility are examples that give positive satisfaction, arising from intrinsic conditions of the job itself such as recognition, achievement or personal growth. It is important most of all that managers meet some if not all of these motivators in order to retain their employees and keep them satisfied. Hygiene factors however are the conditions that must be fulfilled so that the employee does not feel dissatisfied, this includes things such as job security, salary and fringe benefits.