Personality traits and simultaneous reciprocal influences between job performance and job satisfaction

This paper aims to test the relationships among three important variables in the management of Chinese employees: personality trait, job performance and job satisfaction. A causal model is developed to hypothesize how personality trait affects job performance and satisfaction and how job performance and satisfaction simultaneously affect each other.

The survey was conducted from October to November 2009. In total, 414 questionnaires were distributed and 392 were returned. Using data collected, the theoretical model is empirically validated. Structural equation modelling using LISREL 8.8 is used to test the causal model.

Job performance and job satisfaction have a bilateral relationship that is simultaneously influential. All Big Five personality traits significantly influence job performance, with agreeableness showing the greatest effect, followed by extraversion. Extraversion is the only personality trait that shows a significant influence over job satisfaction.

This study contributes to the literature by clarifying the inconsistent findings of causal relationship between job performance and job satisfaction in previous studies. Another contribution is testing the effect of personality traits on job performance and job satisfaction in a simultaneous reciprocal model. A hybrid theory of expectance and equity is advanced in this study to explain the results.