unlicensed low job satisfaction at b o b coffee

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Hong Yen Van LOW JOB SATISFACTION AT B.O.B COFFEE MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr Nguyen Phong Nguyen Ho Chi Minh City – Year 2018 TABLE OF CONTENTS Executive Summary CHAPTER : BACKGROUND INFORMATION 1.1 Company background 1.2 Symptoms 1.3 Initial cause-effect map 1.4 Updated cause-effect map 10 CHAPTER 2: PROBLEM JUSTIFICATION .15 2.1 Problem definition .15 2.2 Problem existence 16 2.3 Problem importance .19 CHAPTER 3: CAUSES VALIDATION AND SOLUTIONS 20 3.1 List of real causes .20 3.2 The set of solutions 25 3.3 Change plan design 28 REFERENCES 35 APPENDICES .42 TABLE OF FIGURES Figure Organizational structure of B.O.B Coffee .3 Figure Initial cause-effect map (Source: In-depth interview) .7 Figure Updated cause-effect map (Source: In-depth interview and literature review) 13 Figure Final cause-effect map 23 TABLE OF TABLES Table Sales from January to June in 2017 and 2018 (million VND) Table Profit from January to June in 2016 and 2017 (million VND) Table Number of negative feedback and complaint Table Turnover rate of some coffee shops in Dong Thap and average turnover rate of hospitality in Vietnam (https://business.linkedin.com/talent-solutions/blog/trends- andresearch/2018/the-3-industries-with-the-highest-turnover-rates) Table Result of survey .17 Table Initial list of potential causes (Source: reference) 20 Executive Summary Job satisfaction of employee and their attitude have become the important foundation of any business Especially in the globally dynamic business environment these days, enterprises have begun to realize that their most precious asset is the employees (1-4) According to Robbins (1996), job satisfaction is one of the most vital merits in today’s workforce, “generation X” (5) Job satisfaction has a close relationship with employee performance and translates into the company success because happy employees bring happy customers In the studying company B.O.B Coffee, despite an extreme focus into the daily operation of the coffee shops within the chain with the purpose of enhancing customer satisfaction and the company performance, the company has witnessed a large number of complaints from customers, a decrease in sales, profit as well as a high turnover rate of employee Starting by investigate these symptoms, we have figure out the central problem is low job satisfaction The result indicates that the actual causes of this central problem are pay, promotion, supervision, contingent reward, and communication Accordingly, basing on the context of the organization, the research proposes some solution in terms of supervision, contingent reward (recognition) and communication so that the job satisfaction of employee can be improved and consequently the business performance can be enhanced It is estimated that the company could benefit times greater than its cost CHAPTER : BACKGROUND INFORMATION 1.1 Company background B.O.B (Best of Best) Coffee, which was established in 2014, was the very first modern coffee chain with stores throughout Dong Thap province and on its way to become one of the reputable brands The organization has full-time employees and more than 40 part-time employees - Full name: Bi O Bi Private Company - Established: 01/12/2014 - Address: 20 Ly Thuong Kiet, Ward 1, Cao Lanh City, Dong Thap Province - Main products and services: food and beverage The organization has six full-time employees (one HR manager, one marketing manager, one accountant, three store managers) and more than forty part-time employees who are mostly students at university and colleges in the province Corresponding to the growth of Dong Thap province, the consumers become more affluent, they are seeking a comfortable place to drink and relax Coffee has appeared and played a vital role in daily life of Dong Thap citizens for a long time ago, and coffee shops can be considered as the third place beside home and office Therefore, there are more and more coffee shops with modern styles which provides air conditions, professional service, western drinks… This means customers have many choices and the market becomes more competitive Figure Organizational structure of B.O.B Coffee CEO HR manager Store manager Marketing manager Accountant Part-time employee 1.2 Symptoms Initially, some short interviews with the managers of three departments regarding HR, marketing and accoutanting were conducted Accordingly, it was reported that marketing departments have some problems relating to efficiency of digital marketing such as low reach of post, low interaction on fanpage The company has found solution that invest more image, content as well as scheduling a timeline for posting more regularly With respect to accounting department, its manager provides the information that there is a problem with out-of-date technology used in accounting but the company has a plan to change into more modern technology to increase efficiency However, the performance of the company has still not advanced We continue to approach the problem by observing how effectively the company operate and realize some negative signs such as late coming to work, bad behaviors and complaints about the job of employees as well as many complains, bad rating on Facebook We continue to look at financial statements and many symptoms were explored Table Sales from January to June in 2017 and 2018 (million VND) Sales Jan Feb Mar Apr May Jun Total 2017 363 450 400 360 325 355 2253 2018 371 455 385 337 310 338 2239 Increase 1.7% 1.1% -1.3% -2.5% -1.2% -2.0% -0.6% Table Profit from January to June in 2016 and 2017 (million VND) Profit Jan Feb Mar Apr May Jun Total 2017 90 112 98 91 80 87 558 2018 92 113 96 88 79 85 553 Increase 2.2% 0.9% -2.0% -3.3% -1.3% -2.3% -0.9% According to data from the company, although sales and profit in the two first months of 2018 increases compared to this in 2017, the following months of 2018 witnesses a decrease of sales and profit compared to this in 2017 As a result, total sales and total profit of two first quarter in 2018 declines 0.6% and % respectively to this in 2017 In addition, the number of bad complaint rises 20% in the period with 478 negative feedbacks and complaints from customers which are talked directly to store managers and appear on its social media channels compared to this period last year Table Number of negative feedback and complaint Complaint Jan Feb Mar Apr May Jun Total 2017 55 72 57 49 45 52 330 2018 60 78 52 63 51 57 361 Increase 9.1% 8.3% -8.8% 28.6% 13.3% 9.6% 9.4% Another important symptom worth mentioning is that the turnover rate of B.O.B Coffee is high (20%) compared to other coffee shops in the area (Truc Garden and May Coffee) and average turnover rate in hospitality industry in Vietnam in 2017 (17.2%) (according to LinkedIn’s data) Truc Garden and May Coffee which are two well-known coffee chains in Dong Thap province have the nearly same scale with B.O.B Coffee with 39 and 42 employees respectively in total Based on the short interviews with managers of these two coffee chains, they state that turnover rate of their organization are also high which are 30% and 27% in that order, but these figure are still lower than the rate of B.O.B Coffee Table Turnover rate of some coffee shops in Dong Thap and average turnover rate of hospitality in Vietnam (https://business.linkedin.com/talent-solutions/blog/trendsand-research/2018/the-3-industries-with-the-highest-turnover-rates) Name Turnover rate B.O.B Coffee 32% Truc Garden 30% May Coffee 27% Average 17.2% If these signs are not noticed and solved, it may cause a variety of serious consequences With respect to the relationship between customer satisfaction and word-of-mouth, various researches has found that the less satisfied customers are, the more they are likely to transmit word-of-mouth Similarly, as stated by Anderson and Sullivan (1993), with antecedent and consequence variables, customer satisfaction has a positive effect on customer loyalty which also means the repetition of customers’ purchase behavior (6) Furthermore, earlier research has proven that customers who are satisfied not show price sensitivity and are willing to pay more for high quality products and services (7-9) It is also reported in a number of studies that customer satisfaction positively affects to the firm value (10, 11) This means low level of customer satisfaction leads to low firm value In addition, high employee turnover is considered one of the most serious problems currently the hospitality industry has to deal with (12) An increasing rate of employee turnover not culminates in direct financial costs, but results in poorer inferior organizational performance (13) Bliss (2004) stated that employee turnover cost is 1.5 times higher than that of the employees' annual compensation (14) It is discovered through a research of Martin (1994) that retail stores with low customer service ratings had a 83% sales force turnover compared to 54% in stores with high ones (15) He also found similar results from a study involving a restaurant, and proved a consequence of customer satisfaction is that the stores with the highest employee turnover rates have 55 percent lower profits than the stores with the lowest turnover rates (15) 1.3 Initial cause-effect map Unwell trained staff Poor skill and knowledge of staff High turnover rate Poor product quality Low employee morale Poor service quality Low job satisfaction Potential central problem Poor physical environment Low productivity Excessive absence of staff Low customer satisfaction Complaint from customer increase Sales decrease Profit decrease Insufficiency of staff Symptoms Figure Initial cause-effect map (Source: In-depth interview) 36 Suhud U, Wibowo A Predicting Customers’ Intention to Revisit A Vintage- Concept Restaurant Journal of Consumer Sciences 2016;1(2):56-69 37 Gerson R Employee retention: a customer 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Incentive 1998;172(4):94 79 Kolzow DR Leading from within: Building organizational leadership capacity International Economic Development Council 2014:1-314 80 Fortune Magazine 2000 Jan APPENDICES  Qualitative research Transcript of in-depth interview in the first time Interview with Ms.Vy – manager of store A Interviewer: What are the reason your sales and profit decrease these recent months you think? Interviewee: I think this is because there are more coffee shops arising in our city, the market become more competitive and customers have more choices However, having said that we have some problems in the quality of our service and product, this makes customers leave us and we lose sales from them Interviewer: What you mean the problems in the service and product quality? Interviewee: This is about negative attitude of our staff, late delivery drinks to customers and the taste of drinks is not as good as before Interviewer: How can you know these negative things as you mentioned? Interviewee: As I observed, customers are not satisfied when the drinks are taken more than 20 minutes to delivery As a result, they posted on the Facebook with intense complains and anger as well as talk directly to me when I am in the store at that time Also, when staff overcome stress because of overload working, they show scowl faces when serving Customers react immediately by sending messages to our Fanpage Interviewer: What are the reasons of these negative things in your coffee shop? Interviewee: In my viewpoint, this is because there is an insufficiency of staff in a working shift, when they are more likely to absent because of personal reasons but after that I realized that some reasons are counterfeit Especially on holiday or weekend, there are more absent employee, which makes the rest staff meet difficulties to handle so many orders well, the waiting time for customers is longer The longer line of waiting is, the more careless baristas are in making drinks, resulting in untasteful products Besides, the rest employees often report stress and are not happy Instead of the welcoming ambiance, scowl faces of staff make customers disappointed Interviewer: Why you think employees are more likely to be absent? Interviewee: I think some of them want to relax, go out and date with friends, go travel, go back to their hometown on holiday However, in casual working days, they are absent with fake reasons or even without permission because employees are not doing something they enjoy When I assign other employees to fill in for absent co-workers, they seem not really happy and supportive Even little things like sometime working overtime makes them feel unhappy shows that staff not enjoy the job Moreover, they come to work late, take longer lunch break and use mobile phone frequently during working time are also signs that they not enjoy the job However, I not know exactly why they are not happy when working, may be because of some conflicts with colleagues Interview with Mr.Nhan – manager of store B Interviewer: What you think about the reason your sales and profit decrease these recent months? Interviewee: I think because we lost some loyal customers due to bad service Interviewer: What you think the causes, is it due to poor training program? Interviewee: After recruiting, staff working in my store are trained carefully by me At the beginning, they are powerful and work with enthusiasm However, when they work longer, they experience dissatisfaction and unhappiness, which in turn leads to reduction of morale Unhappy employees work with low morale and serve customers with awful attitude Low employee morale also adversely affects to working environment and in-store atmosphere Also, they change usually commit themselves to the company for the long term Interviewer: Do you think that turnover rate of your company is fine or high? Interviewee: I think it is quite high, because there are one or two new staffs come to the company every month and some staff leave the job due to various reasons Interviewer: Why your staff leave the job? Interviewee: They quit job because of some personal reasons like moving house, finding a more stable job We are passive in these cases because we can not change it However, there is a problem we worry about, that is when employees lose interest to the job, they come to work with low morale and are going to quit so that they can find a job they actually enjoy doing sooner or later Interview with a staff of store C Interviewer: What you think about the business picture of B.O.B Coffee? Interviewee: In think the company still makes money despite a rise in the number of coffee shop in the area However, the sales in recent months has not been as high as before, there are a great number of customers switching to new famous brands which come from Ho Chi Minh city like Royal tea, Bobabop Interviewer: What you think about the reasons customers move to another brand? Interviewee: On the one hand, they are very famous, professional in serving and their drinks is tasty On the other hand, unprofessional service and sometimes unqualified barista makes difficult customers dissatisfied and move to another brands when you evenly make a mistake once Customers will get annoyed when the drink served is not what they order or not tasty Especially on special occasions like long holiday, employees have to work very hard but we can not satisfy high needs of customers On these occassions, complains from customers increase dramatically Although the company ussually recruits more new staff, the more new staff recruited at the same time on account of seasonal needs, the more difficult it is for the manager to coach newcomers effectively and closely Interviewer: How are new staff trained? How does this affect to the quality of product and service? Interviewee: New employees are mostly on-the-job trained and coached by the store manager and supported by old ones Therefore, wrong knowledge and experience may be instructed from the old employees to tenderfoot, which negatively influences to service and product quality Accordingly, staffs who are not well trained and work with insufficient knowledge will feel confused and not understand what customers want, leading to taking wrong orders or producing poor quality products In my opinion, in order to serve customers effectively and professional, both barista and staff need to be well equipped with knowledge and skills through training before becoming real employees Interview with Ms.Huong – HR manager Interviewer: What you think about the reason your sales and profit decrease these recent months? Interviewee: Generally, there is a variety of causes resulting in decreases in sales, customer satisfation Among that, one of the most important thing to retent customers is the quality of product and service, which are directly affected by employee Interviewer: How your company to enhance the quality of your workforce? Interviewee: The company always try to ensure the quality of workforce by implementing various human resource management practices Training is greatly concerned to assist adaquate knowledge and skills for employee Besides, job satisfation is also a vital issue HR department also tries to raise the level of job satisfation among employee because it has a strong relationship with the morale in the workplace and producticity as well Only when they enjoy the job, they provide the best service and product Interviewer: What you evaluate your employee satisfaction? Interviewee: As I observed, both full-time and part-time employees experience low morale and low productivity This may be a sign of low job satisfaction, but my company has not had any report about this yet Interview with Mr.Hau – CEO of the company Interviewer: What you think about the reason your sales and profit decrease these recent months? Interviewee: In my opinion, sales and profit decrease because we lost many customers who are not satisfied with poor service and physical environment providing by our coffee shop Interviewer: How poor is your service and physical environment? Interviewee: Having said that, service and physical environment of my coffee shops decreases recently Low productivity causes long line of waiting and customer frustration Some customers are impatient, if the beverage that they order does not serve on time, customers will just cancel their order and leave the coffee shop Also, some complaints from customers about the physical environment of two of three stores of B.O.B Boring music and dirty furniture make customer not want to sit down and stay longer More importantly, customers have posted complaints on Facebook and tend to switch to other coffee shops that can offer a better environment for customers to socialize or enjoy Interviewer: So why the quality of your service and physical environment decrease? Interviewee: Both fulltime and part-time employees have low morale at the workplace and are more likely report stress on their job because they not actually enjoy the job, leading to low productivity I have talked to some employees and found that the level of satisfaction of both full time and part time employees is moderate As I observed, the real time for completing a certain task such as making a drink already for serving is longer than it is regulated This low productivity causes long line of waiting and customer frustration In term of physial environment, it is because staff not pay attention to choose the suitable music and ignore to clean the table clearly Evenly, the smile culture of the company no longer remains by staff Instead, employees show tired faces or never mind to say hello to customers although they are trained before about the culture They are even chatting rudely and loudly with colleages while carrying out orders, which adversely affects to relaxing atmosphere in the coffee shop Transcript of in-depth interview in the second time Interview with Ms Hoa - employee working at store A Interviewer: What you not like most about your job? Interviewee: The subject I not like the most is my manager Interviewer: Why not you like your manager? Interviewee: That is her leadership skill, it is poor In other words, the manager does not know how to inspire staff, motivate them to good job Staff are not encouraged to contribute their ideas in solving problem in the working process Interviewer: Do you and your manager understand each other when working? Interviewee: Because I have worked here for more than one year, I and her quite understand each other when we work together, however, we not know each other much about our lives Interviewer: How often you chat with your manager? Interviewee: Not often, we just talk when working She is a kind of quiet and I prefer to chat with my colleague than her In addition, she hardly listens to staff’s opinions when they want to make contribution to organizational development So I keep quiet too Interviewer: Is there any other thing making you dissatisfied with the company? Interviewee: The second things I not like is poor working environment in which the team is quiet, they not ask questions or bring problem to manager’s attention Interviewer: What you think is the reason of a poor working environment? Interviewee: I think one of the reasons is my manager does not create an active, positive environment where everyone can feel free to share their thinking and feeling This makes the environment is boring and sleepy Interviewer: Are you recognized when you good job? Interviewee: No, my manager hardly gives a compliment or reward to top performing staff Interviewer: Do you satisfied with you pay? Interviewee: Not really, my salary is so-so, but I plan to find another job offering higher salary Interview with Mr Anh - employee working at store A Interviewer: How you satisfied with your current job in general? Interviewee: Generally, I quite satisfied with my job now Interviewer: What you not like most about your job? Interviewee: My manager is the factors makes me feel dissatisfied to his job Interviewer: Could you share the reason why you not satisfy with your manager? Interviewee: I had unforgettable memory that when I makes a suggestion, the manager says: “If I wanted your opinion, I'd ask for it!” From that day, I just focus on completing his work and does not want to raise his voice anymore Interviewer: Why did the manager react like that? Interviewee: She reacts to all staff the same She seems not welcome new ideas because she may think that staff have less experience than her Interviewer: Is she very good at her job? Interviewee: She is a good doer, not a good manager When conflict happens among staff, she become confused and meets difficulties to deal with it One of employee having conflict left the company last month because he is not content with the way of solving from the manager Interviewer: Is there any other thing that you not like about your job? Interviewer: Nope, that’s all Interview with Ms Thao - employee working at store B Interviewer: What you not like most about your job and your company? Interviewee: The problems I meet in the workplace which makes me dissatisfied is lacking of communication between management and subordinate My manager is not always ready to hear from staff and we can not communicate with the managers anytime they want This makes some information is missing and when there is a problem happening, they not know who will give them guidance and support in solving it Interviewer: When your manager is absent, does he delegate to others? Interviewee: Nope Interviewer: When your manager is available at the store, does he support staff well? Interviewee: Having said that feedback on staff performance are hardly given to them in detail by her manager, unless it is negative Also, he never gives staff praise, he may assume that staff are doing their job and there is no need to acknowledge them Interviewer: Do you usually talk to him to get understanding each other? Interviewee: Not often, the manager is not a good listener for staff to share their personal story as well as express their wants, opinions Interviewer: Do you have any suggestion to the company beside bad supervisor? Interviewee: I think my salary now is ok but it is better to be increased Interview with Mr Anh - employee working at store B Interviewer: What you not like most about your job and your company? Interviewee: I think one of the poor policy of the company is that it does not value the contribution of staff In other words, there is no recognition to employees who make significant and effective work contributions to the organization, which does not make them feel appreciated and disappointed Interviewer: How often you contribute your ideas and suggestion to the company? Interviewee: Hardly Because I have no motivation to give innovative ideas and suggestion but completing assigned work Interviewer: So the company does not have any recognition or reward to top performing employee? Interviewee: Top performing staff is awarded every month without recognition Only that person and some others know Interviewer: Have you ever received reward? Interviewee: Not yet, but I not mind it and interested in it because the criteria are too general and not informed clearly by manager or through any internal channel This makes them me confused about the criteria for eligibility for the award This does not help to motivate employees and results in low morale Interviewer: Do you have any suggestion to the company? Interviewee: I suggest the company should have a clear recognition program Besides, our salary should be increased to keep us stay longer with the company Interview with Mr Anh - employee working at store C Interviewer: What you not like most about your job and your company? Interviewee: Honestly, I not like the way my manager manage staff Interviewer: Is she unfair or what makes you are not happy with it? Interviewee: No she appraises staff performances very fairly However, she focuses on perfection so much that staff feel pressured She closely observes and excessive controls the work of staff Even a small mistake is made, they might be publicly berated for mistakes and subject to criticism of their personality traits The manager often speaks loudly and one-sidedly to staff without giving them the opportunity to respond to accusations and comments She checks on employees every move, not giving them any freedom to take charge of their task Interviewer: Do you think that is good for staff to complete their job more perfectly and have a better performance? Interviewee: Paying attention to the details and making sure the work is getting done is important, however it is unnecessary to loom over employees, the manager should learn to trust the employees who are hired to take on certain responsibilities In addition, she avoids delegation of decisions because she afraid of everything going wrong Also, she is usually irritated when a subordinate makes decisions without consulting them Interviewer: What you think are results of not delegating? Interviewee: As I see, when a trouble comes up, staff not dare to solve it themselves and make decisions without asking her This can lead to bad outcomes Interviewer: Have you ever had a talk with her about these bad things? Interviewee: Because she does not care about staff’s opinions much and she just does by her own way depending on her thinking, experience Therefore, I not mind to talk with her If you make good suggestion, she sometimes accept However, she will not praise and encourage when they good work Interview with Ms Hong - manager of at store C Interviewer: What you not like most about your job and your company? Interviewee: I am not happy with promotion opportunity of the company A manager could just be promoted promote to HR manager or marketing manager, it narrows the career path of an employee Difference in salary between higher positions compared to store manager is not much Therefore, there is a lack of motivation for a manager to work hard to get promotion and stay loyalty to the company for a long time Interviewer: So will you find another job in the future? Interviewee: Now I satisfy with my position with good pay, especially it is enough for paying living cost for a university student like me However, due to limited career growth in the future, I intent to find a job in bigger company which offers more promotion opportunities Interviewer: Interviewer: Is there any other thing that you not like about your job and the company? Interviewee: I think it may be recognition from the company When manager manage well which helps the store reach high revenue and profit, they receive just bonus without recognition or acknowledgment I think that the company should boost employee motivation employees by recognizing hard work and achievement  Quantitative research CUSTOMER SATISFACTION SURVEY My name is Nguyen Hong Yen Van I am an MBA student at International School of Business Please take a minute to complete this small survey and this will help me to elaborate my bachelor thesis Results of this investigation will be simultaneously interpreted to the management of the cafeteria for the prospective improvement of the offered services The questionnaire is completely anonymous and its results won’t be misused for another purpose Please mark your satisfaction level for the following attributes (1 - Strongly satisfied, - Satisfied, - Neutral, – Dissatisfied, – Strongly dissatisfied) Product quality Taste of cake and drink Menu diversity Service quality Response time of staff Waiting times Promptness of service Professionalism and friendliness of server(s) Server’s knowledge of menu Price Price levels Physical environment Interior design and decor 10 Lighting and music 11 Cleanliness Location 12 Store location 13 What is your general satisfaction level with B.O.B Coffee? A Completely Satisfied B Satisfied C Normal D Dissatisfied E Completely Dissatisfied 14 Would you recommend our restaurant to a friend? A Yes B No C Neutral JOB SATISFACTION SURVEY Disagree very much Disagree moderately Disagree slightly Agree slightly Agree moderately Agree very much JOB SATISFACTION SURVEY I feel I am being paid a fair amount for the work I There is really too little chance for promotion on my job My supervisor is quite competent in doing his/her job I am not satisfied with the benefits I receive When I a good job, I receive the recognition for it that I should receive 6 Many of our rules and procedures make doing a good job difficult I like the people I work with I sometimes feel my job is meaningless Communications seem good within this organization 10 Raises are too few and far between 11 Those who well on the job stand a fair chance of being promoted 12 My supervisor is unfair to me 13 The benefits we receive are as good as most other organizations offer 14 I not feel that the work I is appreciated 15 My efforts to a good job are seldom blocked by red tape PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT COMES CLOSEST TO REFLECTING YOUR OPINION ABOUT IT 16 I find I have to work harder at my job because of the incompetence of people I work with 17 I like doing the things I at work 18 The goals of this organization are not clear to me 19 I feel unappreciated by the organization when I think about what they pay me 20 People get ahead as fast here as they in other places 21 My supervisor shows too little interest in the feelings of subordinates 22 The benefit package we have is equitable 23 There are few rewards for those who work here 24 I have too much to at work 25 I enjoy my coworkers 26 I often feel that I not know what is going on with the organization 27 I feel a sense of pride in doing my job 28 I feel satisfied with my chances for salary increases 29 There are benefits we not have which we should have 30 I like my supervisor 31 I have too much paperwork 32 I don't feel my efforts are rewarded the way they should be 33 I am satisfied with my chances for promotion 34 There is too much bickering and fighting at work 35 My job is enjoyable 36 Work assignments are not fully explained 37 All things consider, I satisfy with my current job Subscale Item numbers Pay 1, 10, 19, 28 Promotion 2, 11, 20, 33 Supervision 3, 12, 21, 30 Fringe Benefits 4, 13, 22, 29 Contingent rewards 5, 14, 23, 32 Operating conditions 6, 15, 24, 31 Coworkers 7, 16, 25, 34 Nature of work 8, 17, 27, 35 Communication 9, 18, 26, 36 Total satisfaction 1-36 ... Motivation-Hygiene Theory (also known as Two Factors theory of motivation) proposed by Herzberg, job environment or “hygiene factors" is considered to be the antecedent of job dissatisfaction... consequences of low job satisfaction: According to Spector (1997), job satisfaction is crucial for two reasons: Satisfaction of employees with their job indicates equality, being deferentially treated by... turnover rate Poor product quality Low employee morale Poor service quality Low job satisfaction Potential central problem Poor physical environment Low productivity Excessive absence of staff Low