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Literature review

Job Satisfaction
According to Balzar (1997) job satisfaction is a sensation that employees have about their work
environment and their expectations towards work. Thus, job satisfaction can be recognized as what one
wants or values from a job (Brief and Weiss 2002). Furthermore, Rue and Byars (1992) define job
satisfaction as feeling of employee about their job and added that how employees show a positive attitude
toward their job when they are highly satisfied from their job and how employees show a negative
attitude toward their job when they are dissatisfied from their job. Robbins (2003) define job satisfaction
as, there are four main primary factors that determines job satisfaction. The first one is rewards, refer to
as pay and promotion which is considered most related to job satisfaction because when employees feels
that they are rewarding fairly, their experience towards satisfaction is increased. The second determinant
is supportive work environment, next determinant is mentally challenging work and the last one
determinant is supportive colleagues.
In sociological literature, job satisfaction is defined as an overall affective orientation on the part
of individuals toward work roles which they are presently occupying (Kalleberg 1977). Accordingly, job
satisfaction implies a subjective and emotional reaction toward different aspects of the job, perceived as
an emotional state resulting from the appraisal of ones situation, linked with the characteristics and
demands of ones work (Spector 1997, Arches 1991). Additionally, Milne (2007) said, to establish
satisfaction on employees with their organizations, the relationship of rewards should be exist aftermath
from employee’s expectation.

Rewards
Work rewards have been defined as “potential sources of rewards to the worker" (Kalleberg, 1977). It
represents what the individuals want to obtain from work or what they perceive. Previous research shows
how job rewards are strong determinant of job satisfaction. For instance, Gerald and Dorothee (2004) and
Clifford (1985) found that rewards are significantly related to professionalism and job satisfaction.
Schaufeli (2002) stresses on the importance of rewards in order to contest be exhausted, which is
typically experienced by most employees on the job. Individuals, who experience burnout in their work,
typically do not feel fulfilled. They also tend to have negative outlooks, and they also approach the tasks
at hand with less vigor and dedication. Lam’s (2001) found that positive relationship between job
satisfaction and rewards exists and rewards are considered key factor in determining job satisfaction of
employee. Rewards are divided into two categories which are intrinsic rewards and extrinsic rewards and
these rewards further divided into subcategories (Clifford, 1985).
Intrinsic rewards are outcomes from within the employees that give personal satisfaction such as
derived from job well done. Kalleberg (1977) cited said, intrinsic rewards refer “…. to the inherent
features of work and characteristics associated with the task itself”. Clifford (1985) was divided intrinsic
rewards into three sub categories as task autonomy, task significance and task involvement. From that,
the researcher said, task autonomy is the freedom in task performance. Task significance implies to
which the task is perceived as a significant contribution to work flow whereas task involvement refers to
which the task is considering interesting and challenging.
According to previous research, intrinsic rewards are vital affects for employees’ overall
satisfaction and commitment to their job (Balloch et al. 1998, Penna et al. 1995, Huxley et al. 2005,
Papadaki 2006). Overall satisfaction is directed towards the individuals´ total job situation and differs
from satisfaction with the more specific dimensions or aspects of his or her work role. An employee who
is motivated intrinsically is working for his or her own satisfaction and may value challenging work him
or her perceives to be meaningful to the company. Thus, the intrinsic rewards is the most important
aspects of employee to feel like they have filled a need within the company and they will ultimately feel
like they are helping the company. In addition to the altruistic motives, studies have demonstrated the
importance of self-directed motives related to personal interests and quest for working tasks that
individuals find meaningful and engaging (Jensen 2003).
Extrinsic rewards are tangible benefits provided by the organization given to employee for
accomplishing something. It is a physical recognition of employees endeavour such as salary, bonus,
fringe benefits and career development opportunities. According to Herzberg (1959) and Kalleberg
(1977) extrinsic rewards refer “… to job characteristics that are external to the task themselves, providing