The interaction effect of job redesign and job satisfaction on employee performance

Purpose – The purpose of this paper is to examine the effect of job redesign as well as that of the interaction effect of job redesign and job satisfaction on employee performance. Design/methodology/approach – The qualitative research method is used, i.e., in-depth interviews, to validate the questionnaire which is modified based on the well-established Job Diagnostic Survey instrument. A large-scale questionnaire survey was conducted in 2012 taking the hotel and resort industry and the banking industry in Thailand as its research sites. Multiple regression analysis was used to analyse the survey data obtained from 295 sample respondent managers. Findings – It is found that job redesign is significantly and inversely related to employee performance. Meanwhile job satisfaction is found to be positively and significantly related to employee performance. Moreover, the interaction effect between job redesign and job satisfaction is found to be positively and significantly related to employee performance. Furthermore, when controlled for demographic characteristics of sample respondents, it is found that being in the age group of 37-47 years old is significantly and inversely related to employee performance. These findings suggest that when firms implement job redesign, it is likely that it will negatively influence employee performance in the first stage of change. Hence, firms should try to enhance employee job satisfaction while implementing job redesign so that the job redesign will result in improved employee performance. The findings suggest that implementing job redesign without concerned employees experiencing job satisfaction or merely implementing job redesign can result in a possible decreased employee performance. These findings also suggest that any proposed job redesign will be an effective HR strategy to significantly mobilize employee performance only when firms ensure that the implementation of job redesign involves the concerned employees and enhances their job satisfaction. Originality/value – Job redesign by itself is found to have a significant negative effect on employee performance while job satisfaction is found to always positively and significantly influence employee performance. This study ascertains the positive interaction effect of job redesign and job satisfaction for employee performance improvement. These findings suggest that job satisfaction positively moderates the effect of job redesign on employee performance.