Work-life Balance and its Impact on Employee

Performance and Job Satisfaction

A term paper submitted to:

Instructor: Prof. Jatin Christie

In partial fulfilment of the requirements of the course

Organizational development (MGT 523)

Submitted By:
Aayushi Shah
Roll No – 161
4th Year iMBA
ON
25th October 2018

AMRUT MODY SCHOOL OF MANAGEMENT

1
Topic:
Work-life balance and its impact on Employee Performance and Job Satisfaction

Objective of the study:

The objective of the study is to understand today’s ever demanding work environment and the
problems that people face balancing their work life and family life. (Kelaniya Journal of
Human Resource Management, Weerakkody, 2017)
Work life balance concept allows an employee to maintain a fine balance in the time he or she
gives to work as well as to personal matters. It is an important concept in the world of business
as it helps to motivate the employees and increases their loyalty towards the company.

Following are the objectives:

 Identify the relationship between work-life balance and employee performance

 Identify the relationship between work life balance and employee job satisfaction.
 To understand the meaning of work-life balance in the context of employment relations.
 To know the importance of work-life balance for employees.
 To know the obstacles in the path of providing better work-life balance.
 To recommend areas for improving work-life balance satisfaction among employees.

Literature:
In today’s dynamic environment, work life balance has become a key issue faced by employees
all over the world. Maintaining work-life balance is an issue that is increasingly recognized as
of strategic importance to the organization and of significance to the employees. Lack of work-
life balance also has an adverse effect on the employer’s prospects for success in many reasons.
(Kelaniya Journal of Human Resource Management, Weerakkody, 2017)
“Work Life Balance isn’t only about families and childcare. Nor is it about working less. It’s
about working smart. About being fresh enough to give all you need to both work and home,
without jeopardising one for the other. And it’s a necessity for everyone, at whatever your stage
in life” (Department of Trade and Industry, 2001). Reducing stress and absence through
employer flexibility should not only result in a more satisfied and more productive work force,
but also have a knock on effect on improved recruitment and retention” (Human Resource
Management International Digest, 2004).

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Work-life balances influences both the Employee Performance and Job Satisfaction. It
majorly affects both the individual as well as an organisation.
It becomes extremely important for people who are married and having children at home to
have a clear balance between their work and personal life. There might be times when the
family responsibilities interfere with the job performance and the job responsibilities interfere
with the family time. In this situation, work-life balance needs to be restored to ensure good
employee performance and job satisfaction.
Flexible working hours, Holidays/paid time-off, Job sharing, career breaks/sabbaticals,
counselling services, Health programmes, Family support programmes, Exercise facilities,
Maternity and Paternity leaves are all the factors that can help in achieving the work-life
balance.

Consequences of imbalance in the work-life:

The consequences are mainly related to the stress felt by individuals when they perceive
some degree of imbalance between their work and life. The demands of work, relationships
with management, colleagues and peers, and levels of control are the major components of
stress in the workplace. The organisational consequences associated with high levels of work-
related stress are negative impacts on outcomes and productivity. The negative effects of
work-life imbalance that manifested in high levels of absenteeism, low productivity, low
morale, team dysfunction, depression and mental illness, and the associated organisational
costs. Staff retention, down time and losses of productivity can be cited as the most obvious
impacts resulting from an organisation not effectively managing work-life balance issues.
Work-life imbalance can also cause mental disturbance, heart diseases and loss of memory in
certain cases. It also takes a toll on one’s ability to relate socially to colleagues, be sensitive
to other people’s needs and control one’s emotions.

Importance of work-life balance:

By having a work-life balance, people can have a good quality of work life. This helps to
increase productivity at the workplace as the employee is relaxed about his personal
commitments. Work-life balance helps to reduce employee turnover and increases employee
engagement. When we are stressed and overloaded with work, it affects our mental health to a
great extent. Maintaining work-life balance reduces health problems which includes both the
physical and the mental health. A healthy work-life balance helps to bring about a control over
our focus and our ability to concentrate on the tasks. This makes sure that everyone is dedicated

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to the tasks. It also helps to ensure that physical health is properly maintained. If your life
revolves around work, you become boring and lose attachment from people. Having interests
outside work and having a satisfactory personal life makes you a more rounded and an
interesting person. When your work life is in control, you can adapt better to any changes.

Barriers to achieve work life balance:

Unsupportive work culture and work environment can hinder the functioning of the work-life
balance. Some employees feel that they are placing their career in jeopardy. Absence effective
communication between the managers and the staff can also become a major barrier. The role
of the manager and the boss also highly matters. If the managers are not supportive enough and
do not support the concept of maintaining a balance, then this can have a negative impact on
the employees. Increased workloads reduces the time of the employees that they can spend
with their family members. This stops them from achieving work life balance. Mismatch
between policy and life stages, Job and work design and self-perceptions are few other barriers
in achieving work-life balance.

Recommendations:
Appropriate policies, plans, initiatives and actions needs to be promoted effectively throughout
the organisation which would assess the work-life balance strategies. Management training
should include how to implement these policies and the ways in which a great balance can be
brought. The job design should be such that there is absence of stress and boredom in the work
to be done. The organisation on the whole and the senior management should themselves
promote a positive work-life balance and accordingly build a company culture. Constant
feedbacks should be taken from the employees about how they feel about their work and
personal life which then helps to take certain corrective actions based on their responses. The
managers and the bosses should constantly keep asking the employees about they need and
also keep an eye out for Burnout. Flexitime should be embraced and telecommuting should be
supported. There should be an encouragement of efficient work and not more work. The
organisation should promote various health initiatives and foster creativity.

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Theoretical Framework:

Work-Life Employee Job

Balance Performance Satisfaction

(Authors, 2017; Kelaniya Journal of Human Resource Management, Weerakkody, 2017)

In this particular model, “Work-Life Balance” is the independent variable. Here, 2

Dependent variables have been chosen; “Employee Performance” and “Job satisfaction”.
This model depicts the conceptual framework of the study.

There is a need for organisations to change the old norms of work-life balance and adopt the
new norms. In today’s changing times, more and more organisations are paying attention to
the work-life balance and the impact it has on the employee performance and job satisfaction.
Many organisations are now adopting various activities like flexible working hours and jib
sharing to provide a work-life balance. According to the Kurt Lewin’s model, there is a need
to Unfreeze, Change and Refreeze the concept of work-life balance. In the unfreezing stage,
there is a new norm that we are trying to adopt. Change is the stage of cognitive restructuring
and refreeze is the stage where you actually bring about a change and accept the change.

The Normative re-educative strategy also relates here. According to this, there is a new
attitude and a new behaviour where we identify the old norms and then make the new norms.
This strategy is the OD philosophy. There is a conversion of old norms into new norms.
Today, many organisations are in reality changing the old norms of not providing a work-life
balance and are moving towards acceptance in bringing about a change and developing a new
norm. A Parallel Learning Structure comes through Normative Re-educative strategy. This is
an alternative learning structure that challenges the original structure. It means creating a
structure that is out of the boundaries of the original structure.

It becomes important to understand the organisation as a whole and find out what is there that
is needed to be changed. It is important to know what the employees feel about their work-
life balance and then accordingly bring the necessary changes. Action Research plays an
important part here which includes fact finding, feedback and an action plan.

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Key Words:
Work-Life Balance (Independent Variable)
Work-Life balance is a concept that talks about prioritizing and balancing between the work
or the career and the family, leisure, health and self-development. It means giving enough
time to both the work and the personal life without jeopardizing one for another. The work-
life balance leads to greater motivation among the employees, high productivity, less
absenteeism, job satisfaction, less employee turnover and a more positive attitude. Indicators
for measuring the work-life balance are the work hours, work load, supervisors, peers,
spouse, children; that is basically the work centered life and the family centered life.
(Kelaniya Journal of Human Resource Management, Weerakkody, 2017)

Employee Performance (Dependent variable)

Employee performance is the ability of an employee to perform a task in a manner in which
both the organisation and the employees can achieve their goals and objectives. Employee
performance talks about aligning the organisational objectives with the employees’ skills and
competencies. Various performance evaluation methods are used which helps in measuring
the employee performance in the organisation. Employee performance further talks about
how well the job related activities have been executed by the employees. Performance can
also be traced to the behaviour of the people. Employees work in certain way or behave in a
way that contributes to the golas and objectives of the organisation.

Job Satisfaction (Dependent Variable)

Job satisfaction talks about how content and happy the person is with his or her own job. It
means the favourable and the positive attitudes that the employees have towards their work.
The level of job satisfaction is affected by intrinsic and extrinsic motivating factors, the
quality of supervision, social relationships with the work group and the degree to which
individuals succeed or fail in their work. (Kelaniya Journal of Human Resource
Management, Weerakkody, 2017). Job satisfaction can positively and negatively impact the
way in which the employee is performing. It helps in determining to what extent a person
likes or dislikes his or her job. It talks about the difference between the employee’s
expectations and the experience that he or she derives from the job.

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Hypotheses:
H0: Work-Life balance has a relationship with Employee Performance and Job Satisfaction
(null)
H1: Work-Life Balance has no relationship with Employee Performance and Job Satisfaction
(alternate)

Research Design:
This study is based on primary data collected from a sample of 21 companies of Ahmedabad
city. Interviews have been taken of the employees, managers and owners of the company to
understand the work-life balance. Both Single and married sample has been included.
The method of collecting information is done through a structured questionnaire. The
questionnaire has 2 parts; the first part talks about the personal information of the selected
people like Gender, Age, Designation, Years of service, Marital status, Number of children,
Age of children. In the second part, 11 questions have been included to measure the work life
balance, employee satisfaction and job satisfaction. A Likert scale have been used in the
second part ranging from Strongly Agree to Strongly Disagree. I have conducted a conclusive
research which is meant to provide information that is useful in reaching conclusions or
decision-making. It tends to be quantitative in nature.
Since there are not many cases and research articles available on this particular topic, there is
a wide scope of research here. Based on the received data, various statistical tools and
software has been used to analyse the data such as SPSS which includes, Regression
Correlation, Anova, Model Summary (R and R square) and Coefficients.
A Correlational study has been conducted here.

Findings:
First question talks about having sufficient time for self-management and self-development.
Out of the 21 respondents, 7 respondents strongly agree that they have sufficient time for
self-management and self-development. 8 respondents agree, 4 respondents have a neutral
feeling, 2 respondents disagree and 0 respondents strongly disagree.
The second question talks about having sufficient relaxation time. Out of the 21 respondents,
7 respondents strongly agree that they have sufficient relaxation time, 8 respondents agree to
this, 4 respondents have a neutral feeling, 2 respondents disagree with this and 0 respondents
strongly disagree.

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The third question talks about having personal life satisfaction. Out of the 21 respondents, 7
respondents strongly agree that they have personal life satisfaction, 7 respondents agree, 6
respondents have a neutral feeling, 1 respondent disagrees and 0 respondents strongly
disagree.
The fourth question talks about satisfaction with the current working hours. Out of the 21
respondents, 4 respondents strongly agree that they are satisfied with their current working
hours, 11 respondents agree to this, 3 respondents have a neutral feeling, 3 respondents
disagree to this and 0 respondents strongly disagree.
The fifth question talks about having too much of work load. Out of the 21 respondents, 2
respondents strongly agree that they have too much work load, 8 respondents agree, 3
respondents have a neutral feeling, 6 respondents disagree and 2 respondents strongly
disagree.
The sixth question talks about whether family matters reduce the time you devote to your
work. Out of the 21 respondents, 3 respondents strongly agree with this question, 5
respondents agree, 3 respondents have a neutral feeling, 8 respondents disagree, and 2
respondents strongly disagree.
The seventh question talks about whether the work reduces the amount of time you spend
with your family. Out of the 21 respondents, 1 respondent strongly agrees to this, 7
respondents agree, 3 respondents have a neutral feeling, 8 respondents disagree and 2
respondents strongly disagree with this.
The eight question talks about whether you feel tired or depressed because of work. Out of
the 21 respondents, 2 respondents strongly agree that they feel tired and depressed because of
their work, 8 respondents agree to this, 4 respondents have a neutral feeling, 5 respondents
disagree, and 2 respondents strongly disagree.
The ninth question talks about whether the current work-life balance leads to greater
employee performance. Out of the 21 respondents, 3 respondents strongly agree that their
current work-life balance leads to greater employee performance, 11 respondents agree to
this, 4 respondents have a neutral feeling, 3 respondents disagree and 0 respondents strongly
disagree.
The tenth question talks about having greater job satisfaction. Out of the 21 respondents, 3
respondents strongly agree that they have greater job satisfaction, 11 respondents agrees to
this, 4 respondents have a neutral feeling about this, 3 respondents disagrees, and 0
respondents strongly disagrees.

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The final question talks about whether the work-life balance policy is applicable in their
organisation. Out of the 21 respondents, 6 respondents strongly agrees that the policy is
applicable, 8 respondents agrees to this, 5 respondents have a neutral feeling, 2 respondents
disagree and 0 respondents strongly disagrees.

Analysis:
Work-life Balance and its impact on Job Satisfaction

Descriptive Statistics
Std.
Mean Deviation N
Have 2.3333 0.91287 21
greater job
satisfaction

Work life 2.1429 0.96362 21

balance
policy is
applicable
in the
organisation

Correlations

Work life
balance
policy is
Have applicable
greater job in the
satisfaction organisation
Pearson Have greater 1.000 0.853
Correlation job satisfaction
Work life 0.853 1.000
balance policy
is applicable in
the
organisation
Sig. (1-tailed) Have greater 0.000
job satisfaction
Work life 0.000
balance policy
is applicable in
the
organisation
N Have greater 21 21
job satisfaction
Work life 21 21
balance policy
is applicable in

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 the
organisation

Pearson Correlation is the number between -1 and 1 that indicates the extent to which the two
variables are linearly related. The above values of Pearson correlation shows that both the
dependent and the independent variables are in fact closely related to each other.

Variables Entered/Removed
Variables Variables
Model Entered Removed Method
1 Work life Enter
balance
policy is
applicable
in the
organisation

a. Dependent Variable: Have greater job

satisfaction
b. All requested variables entered.

Model Summary
Std. Change Statistics
Adjusted Error of R
R R the Square F Sig. F
Model R Square Square Estimate Change Change df1 df2 Change
1 .853a 0.727 0.713 0.48943 0.727 50.577 1 19 0.000
a. Predictors: (Constant), Work life balance policy is applicable in the organisation
b. Dependent Variable: Have greater job satisfaction

This table displays R, R squared, adjusted R squared, and the standard error. R is the correlation
between the observed and predicted values of the dependent variable. The values of R range
from -1 to 1. The sign of R indicates the direction of the relationship (positive or negative).
The absolute value of R indicates the strength, with larger absolute values indicating stronger
relationships.

R squared is the proportion of variation in the dependent variable explained by the regression
model. The values of R squared range from 0 to 1. Small values indicate that the model does
not fit the data well. The sample R squared tends to optimistically estimate how well the models
fits the population.

Here in the above table, the value of R is 0.853. This indicates a positive and a direct
relationship and since the value is higher, it indicates a strong relationship. The model summary

10
is nice and fits well. The value of R square is 0.727 which is a high value and so the model fits
the data well.

ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression 12.115 1 12.115 50.577 .000b

Residual 4.551 19 0.240

Total 16.667 20
a. Dependent Variable: Have greater job satisfaction
b. Predictors: (Constant), Work life balance policy is applicable in the organisation

The F statistic is the regression mean square (MSR) divided by the

residual mean square (MSE). If the significance value of the F statistic is
small (smaller than say 0.05) then the independent variables do a good job
explaining the variation in the dependent variable. If the significance value
of F is larger than say 0.05 then the independent variables do not explain
the variation in the dependent variable.

In the above table, the significance value is 0.000 which is highly

favourable and here the independent variable does a good job in
explaining the variation in the dependent variable.

Coefficients

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 0.603 0.266 2.267 0.035
Work life balance 0.808 0.114 0.853 7.112 0.000
policy is
applicable in the
organisation
a. Dependent Variable: Have greater job satisfaction
The regression line here can be as follows:
Greater Job satisfaction = 0.603 + 0.808* work life balance
The beta coefficient tells you how strongly is the independent variable associated with the
dependent variable. It is equal to the correlation coefficient between the 2 variables.
In the above table looking at the values we can infer that the dependent and independent
variables are strongly related.

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Work-life Balance and its impact on Employee Performance

Descriptive Statistics
Std.
Mean Deviation N
Current work 2.3333 0.91287 21
life balance
leads to greater
employee
performance

Work life 2.1429 0.96362 21

balance policy
is applicable in
the
organisation

Correlations

Current
work life Work life
balance balance
leads to policy is
greater applicable
employee in the
performance organisation
Pearson Current 1.000 0.853
Correlation work life
balance
leads to
greater
employee
performance

Work life 0.853 1.000

balance
policy is
applicable in
the
organisation

Sig. (1- Current 0.000

tailed) work life
balance
leads to
greater
employee
performance

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 Work life 0.000
balance
policy is
applicable in
the
organisation

N Current 21 21
work life
balance
leads to
greater
employee
performance

Work life 21 21
balance
policy is
applicable in
the
organisation

Pearson Correlation is the number between -1 and 1 that indicates the extent to which the two
variables are linearly related. The above values of Pearson correlation shows that both the
dependent and the independent variables are in fact closely related to each other.

Variables Entered/Removed
Variables Variables
Model Entered Removed Method
1 Work life Enter
balance
policy is
applicable
in the
organisation

a. Dependent Variable: Current work life

balance leads to greater employee
performance
b. All requested variables entered.

Model Summary
Std. Change Statistics
Adjusted Error of R
R R the Square F Sig. F
Model R Square Square Estimate Change Change df1 df2 Change
1 .853a 0.727 0.713 0.48943 0.727 50.577 1 19 0.000
a. Predictors: (Constant), Work life balance policy is applicable in the organisation
b. Dependent Variable: Current work life balance leads to greater employee performance

13
This table displays R, R squared, adjusted R squared, and the standard error. R is the correlation
between the observed and predicted values of the dependent variable. The values of R range
from -1 to 1. The sign of R indicates the direction of the relationship (positive or negative).
The absolute value of R indicates the strength, with larger absolute values indicating stronger
relationships.

R squared is the proportion of variation in the dependent variable explained by the regression
model. The values of R squared range from 0 to 1. Small values indicate that the model does
not fit the data well. The sample R squared tends to optimistically estimate how well the models
fits the population.

Here in the above table, the value of R is 0.853. This indicates a positive and a direct
relationship and since the value is higher, it indicates a strong relationship. The model summary
is nice and fits well. The value of R square is 0.727 which is a high value and so the model fits
the data well.

ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression 12.115 1 12.115 50.577 .000b

Residual 4.551 19 0.240

Total 16.667 20
a. Dependent Variable: Current work life balance leads to greater employee
performance
b. Predictors: (Constant), Work life balance policy is applicable in the organisation

The F statistic is the regression mean square (MSR) divided by the

residual mean square (MSE). If the significance value of the F
statistic is small (smaller than say 0.05) then the independent
variables do a good job explaining the variation in the dependent
variable. If the significance value of F is larger than say 0.05 then
the independent variables do not explain the variation in the
dependent variable.
In the above table, the significance value is 0.000 which is highly
favourable and here the independent variable does a good job in
explaining the variation in the dependent variable.

14
 Coefficients

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 0.603 0.266 2.267 0.035
Work life 0.808 0.114 0.853 7.112 0.000
balance policy
is applicable
in the
organisation

a. Dependent Variable: Current work life balance leads to greater employee

performance
The regression line here can be as follows:
Employee performance = 0.603 + 0.808* work life balance
The beta coefficient tells you how strongly is the independent variable associated with the
dependent variable. It is equal to the correlation coefficient between the 2 variables.
In the above table looking at the values we can infer that the dependent and independent
variables are strongly related.

Residuals Statistics
Std.
Minimum Maximum Mean Deviation N
Predicted 1.4103 3.8333 2.3333 0.77831 21
Value
Residual -1.02564 0.97436 0.00000 0.47704 21
Std. -1.186 1.927 0.000 1.000 21
Predicted
Value
Std. -2.096 1.991 0.000 0.975 21
Residual
a. Dependent Variable: Current work life balance leads to greater
employee performance

Conclusion:
Based on the data available, the paper thus concludes that there is a positive relationship of
work-life balance with the employee performance and the job satisfaction.
Thus, the H0 hypothesis, i.e. the null hypothesis is accepted here.
Greater the work-life balance, more is the employee performance and high job satisfaction.
Employee performance and job satisfaction are dependent on the work-life balance.
If the employees and the people working in the organization an effectively balance between
their work life and personal life without compromising any, they highly feel motivated and are
able to give the best output to their work . Sufficient time for self-development, sufficient
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relaxation time, more leisure hours, satisfaction with the working hours, less work load, being
able to spend time with the family, ensuring that the work does not suffer and feeling energetic
even after work are all the factors of work-life balance that highly affect the employee
performance and job satisfaction.
Many organisations and companies are now finding a growing need to introduce activities
which can enhance the work-life balance. There is an urgency to bring about a change in the
organisation with respect to the work-life balance. From the organization point of view, it
makes good sense to support work-life balance approach not just to recruit and retain
employees but also because employees’ feel that work-life balance enables them to work better.

16
References:
1) http://shodhganga.inflibnet.ac.in/bitstream/10603/37171/18/18_appendix.pdf
2) http://www.academia.edu/4280265/WLB_Questionnaire (Asantha Basnagoda)
3) http://shodhganga.inflibnet.ac.in/bitstream/10603/38349/13/13_quesionnare.pdf
4) https://www.effectory.com/knowledge/themes/what-is-employee-performance/ (O
Effectory, Lodewijk Noordzij, 2017)
5) Kelaniya Journal of Human Resource Management, Weerakkody, 2017
6) http://www.cs.uu.nl/docs/vakken/arm/SPSS/spss4.pdf
7) http://globalvisionpub.com/globaljournalmanager/pdf/1387009321.pdf
(Global journal of Business Management, Parkash Vir Khatri, Jyoti Behl, 2013)
8) https://the-happiness-index.com/importance-of-work-life-balance/ (The Happiness
Index, Joe Wedgwood, 2018)
9) https://www.zenefits.com/blog/10-ways-to-promote-a-healthy-work-life-balance/
(Zenefits, Alexandra Hicks, 2018)

17
Annexure:
Questionnaire

DEMOGRAPHIC PROFILE:
GENDER:
o Male
o Female
o Other
AGE:
o Below 30
o 30-40
o 41-50
o Above 50
DESIGNATION:
o Employee
o Manager
o Owner
o Other
YEARS OF SERVICE:
o Less than 1 year
o 1-10
o 11-20
o More than 20
MARITAL STATUS:
o Single
o Married
NUMBER OF CHILDREN:
o One
o Two
o More than 2
o Not applicable
AGE OF CHILDREN:
o 0-5
o 6-10
o 11-15
o More than 15
o Not applicable

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NAME OF THE ORGANISATION:

SCALE:
SA – Strongly Agree
A – Agree
N – Neutral
DA – Disagree
SDA – Strongly Disagree

NO QUESTIONS SA A N DA SDA
1 I can spend the time I want on my own
self-development/ have sufficient time
for self-management
2 I have sufficient time to relax myself
3 I feel satisfied with my free/leisure hours/
have personal life satisfaction
4 Satisfied with the current working hours
5 Have too much of work load
6 Family matters reduce the time you can
devote to your work
7 Your job reduces the amount of time you
spend with your family
8 Feel tired or depressed because of work
sometimes or on a regular basis
9 Your current work-life balance leads to
greater employee performance
10 Have greater work/job satisfaction
11 Work-life balance policy is applicable in
your organisation/ receives work-life
balance support from the organisation

Source:

1) http://shodhganga.inflibnet.ac.in/bitstream/10603/37171/18/18_appendix.pdf
2) http://www.academia.edu/4280265/WLB_Questionnaire (Asantha Basnagoda)
3) http://shodhganga.inflibnet.ac.in/bitstream/10603/38349/13/13_quesionnare.pdf

19
Sample Companies
Care Insurance
Atul Yamaha
Nanavati & Nanavati
Advocates
Nijsaral
Kathan Enterprise
Yogi Engineers
Innovate Securities Pvt Ltd
JS Projects
Malav C Sheth & Company
IMS People
Shah Consultancy
A Kantilal & Company
Backpack Kerz Partnership
Meridien Services
Apexa Consultancy
Chirag Electricals
Sayaji Industries
Navratna Constructions
Dhwani Powerpack
Solutions
PK Sales
Koteshwarni

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