Job satisfaction is the employee’s positive attitude or feeling towards his or her job. It is a very important motivator for employees to remain with a job, and hence an organisation. Briefly defined, job-related stress arises when there is mismatch between the employee and the work environment. The reduction of stress levels among employees is crucial in an organization. These two concepts—job satisfaction and job-related stress—are examined in relation to psychological empowerment with theoretical and research support. Apart from stating the definitions, significance, types, models and factors determining these concepts, the authors have provided a comprehensive review of the research literature for both variables, job satisfaction and job-related stress in relation to the construct of psychological empowerment, and the consequences of job satisfaction are discussed. Various scales established by different researchers for measuring job satisfaction and job-related stress are reported and discussed.