Effect of Job Satisfaction and Job Stress on Perceived Job Performance of Insurance Agents in Sri Lanka

Abstract

This study examines the factors the affect the Job Performance of an Insurance Agent in Sri Lanka. Job Satisfaction and Job Stress were selected as the major factors which affect the Job Performance. A sample was selected on the convenient sampling technique which contained 50 insurance agents from different Insurance companies. Questionnaires were used to collect the data from the selected sample. Regression model was used to analyze the collected data. Two models were developed to find out the single linear relationship between two independent variables with the dependent variable. Before moving to the regression, a correlation was tested on Pierson’s Correlation coefficient. Correlation results showed that though there is a high association between job Performance and Job Satisfaction, Job Stress has less association with Job Performance. The regression results showed that the Job Satisfaction affect to the Job Performance. It showed a significant negative relationship. But it is a contradictory situation where previous literature shows a positive relationship between these two variables. This result implies that when the satisfaction increases the performance will reduce. To test the result in first regression model, a Granger Causality test was done. The result of the causality test showed one way causal relationship that the satisfaction has an effect on Job Performance but Performance has no effect to the satisfaction. The results of the Granger causality test confirmed the regression relationship. Second regression model showed that there is no relationship between Job Stress and Job Performance.