The employee is a cog in the wheel represented by the organization. The satisfied employee builds a positive image of the organization and improves the performance of the organization and similarly a dissatisfied employee brings with him negativity which can harm not only him but others as well.Dissatisfaction leads to actions which not only hampers his personal performance but also affects the work of others and pulls down the performance of the organization. The employee might ignore work leading to lower productivity.
So the performance of an individual depends on the fact whether he/she is satisfied/ dissatisfied.
Satisfaction and Productivity
At the individual level Productivity leads to satisfaction rather than satisfaction leading to productivity.However if we move to the organizational level the relation is reversed that is now satisfaction leads to more productive organizations.
Hence it might be concluded that happy worker may or may not be productive but happy organizations are more productive.
Satisfaction and Absenteeism
There is a consistent negative relation between satisfaction and absenteeism.
Generally in organization there is penalty for absenteeism which is seen as hampering work. However a satisfied employee would not like to miss work and would result in better attendance with less absenteeism. He would love to go to work and do his work. Only thing that changes that is he should love his job.
So what is important, is it happy workers or a happy organization.The answer may be to create challenging environment, supportive conditions and colleagues to make the employee satisfied because he/she directly affects the Organizational performance.