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Management-Employee Relations, Firm Size, and Job Satisfaction

Author

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  • Aysit Tansel

    (Department of Economics Middle East Technical University and Institute for the Study of labor (IZA) Bonn, Germany and Economic Research Forum (ERF) Cairo, Egypt)

  • Saziye Gazioglu

    (Middle East Technical University and Department of Economics, University of Aberdeen)

Abstract

This paper investigates the job satisfaction in relation to managerial attitudes towards employees and firm size using the linked employer-employee survey results in Britain. We first investigate the management-employee relationships and the firm size using maximum likelihood probit estimation. Next various measures of job satisfaction are related to the management-employee relations via maximum likelihood ordered probit estimates. Four measures of job satisfaction that have not been used often are considered. They are satisfaction with influence over job; satisfaction with amount of pay; satisfaction with sense of achievement and satisfaction with respect from supervisors. Main findings indicate that management-employee relationships are less satisfactory in the large firms than in the small firms. Job satisfaction levels are lower in large firms. Less satisfactory management-employee relationships in the large firms may be a major source of the observed lower level of job satisfaction in them. These results have important policy implications from the point of view of the firm management while achieving the aims of their organizations in particular in the large firms in the area of management-employee relationships. Improving the management-employee relations in large firms will increase employee satisfaction in many respects as well as increase productivity and reduce turnover. The nature of the management-employee relations with firm size and job satisfaction has not been investigated before.

Suggested Citation

  • Aysit Tansel & Saziye Gazioglu, 2013. "Management-Employee Relations, Firm Size, and Job Satisfaction," Koç University-TUSIAD Economic Research Forum Working Papers 1307, Koc University-TUSIAD Economic Research Forum.
  • Handle: RePEc:koc:wpaper:1307
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    References listed on IDEAS

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    1. Saziye Gazioglu & Aysit Tansel, 2006. "Job satisfaction in Britain: individual and job related factors," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1163-1171.
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    Cited by:

    1. William Magee, 2015. "Effects of Gender and Age on Pride in Work, and Job Satisfaction," Journal of Happiness Studies, Springer, vol. 16(5), pages 1091-1115, October.
    2. Alex Bryson & Michael White, 2019. "HRM and Small-Firm Employee Motivation: Before and After the Great Recession," ILR Review, Cornell University, ILR School, vol. 72(3), pages 749-773, May.
    3. Jing Wang & David Wicks & Chris Zhang, 2022. "Job‐related well‐being of sexual minorities: Evidence from the British workplace employment relations study," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 841-863, December.
    4. Alex Bryson & Christine Erhel & Zinaida Salibekyan, 2021. "Perceptions of non-pecuniary job quality using linked employer–employee data," European Journal of Industrial Relations, , vol. 27(2), pages 113-129, June.
    5. Husam Sadig, 2014. "Determinants Of Subjective Job Satisfaction In Developing Countries: Contrasting Managers And Regular Employees," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 1250-1255.
    6. Cecile Schultz & Reulene Küsel, 2019. "Manager-Employee Relationships during Turbulent Times at a Gold Mine in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 10(6), pages 81-88.
    7. Zhiming Cheng, 2014. "The Effects of Employee Involvement and Participation on Subjective Wellbeing: Evidence from Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(2), pages 457-483, September.
    8. Chongryol Park & Ronald McQuaid & Jiwoon Lee & Seungjin Kim & Insuk Lee, 2019. "The Impact of Job Retention on Continuous Growth of Engineering and Informational Technology SMEs in South Korea," Sustainability, MDPI, vol. 11(18), pages 1-19, September.
    9. Tansel, Aysit, 2022. "Job Satisfaction, Structure of Working Environment and Firm Size," MPRA Paper 113565, University Library of Munich, Germany.
    10. Bryson, Alex & White, Michael, 2017. "HRM and Small-Firm Employee Motivation: Before and after the Recession," IZA Discussion Papers 10737, Institute of Labor Economics (IZA).
    11. Rožman Maja & Tominc Polona & Grinkevich Anastasiia, 2019. "Occupational Stress, Symptoms of Burnout in the Workplace and Work Satisfaction of the Age-diverse Employees," Organizacija, Sciendo, vol. 52(1), pages 46-52, February.
    12. Rumi SAHA, 2016. "Factors Influencing Organizational Commitment €“ Research And Lessons," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 8(3), pages 36-48, September.
    13. Bryson, Alex & Erhel, Christine & Salibekyan, Zinaïda, 2017. "The Effects of Firm Size on Job Quality: A Comparative Study for Britain and France," IZA Discussion Papers 10659, Institute of Labor Economics (IZA).
    14. Martijn Hendriks & Martijn Burger & Harry Commandeur, 2023. "The influence of CEO compensation on employee engagement," Review of Managerial Science, Springer, vol. 17(2), pages 607-633, February.
    15. Paulo Aguiar do Monte, 2019. "Effort Level by Firm Size in a Developing Country," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(1), pages 73-87, March.
    16. Luisa Corrado & Majlinda Joxhe, 2016. "The Effect of Survey Design on Extreme Response Style: Rating Job Satisfaction," CEIS Research Paper 365, Tor Vergata University, CEIS, revised 08 Feb 2016.
    17. McKay, Andy & Newell, Andrew T. & Rienzo, Cinzia, 2018. "Job Satisfaction among Young Workers in Eastern and Southern Africa: A Comparative Analysis," IZA Discussion Papers 11380, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Job Satisfaction; Managerial Attitudes; Firm size; Linked Employer-Employee data; Britain.;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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