An empirical study of relationship between informal groups and perceived job satisfaction from China

Job satisfaction is receiving an increasing attention in China since early 1990s. However, some factors under current Chinese economical and political systems that have an impact on job satisfaction are empirically largely unknown. This study investigates the relationship between informal groups and perceived job satisfaction in the context of Chinese firms. It finds that the usage of informal groups significantly contributes to job satisfaction. Moreover, employees who join informal groups view i) participation in managerial activities, ii) compensation, iii) organizational culture, vi) autonomy and v) job challenge as the most important factors that affect job satisfaction, which are different from what is observed from employees who do not join informal groups. Implications for the on-going Chinapsilas economic reform at the firm level are also discussed.