The psychosocial workplace context is of significant importance to define the well-being and performance of employees at academic institutions. This paper discusses the correlation between the psychosocial work environment dimensions such as job demands, decision latitude, social support, recognition, and role clarity with the degree of job satisfaction among the teaching and non-teaching staff of Magadh University, Bodh Gaya, Bihar, India. Based on the Karasek Job Demand-Control-Support (JDCS) model and the Two-Factor Theory formulated by Herzberg, the paper summarizes the evidence presented in published literature and contextualizes the findings of the specific operational reality of a big, state-funded state university in eastern India. The review of empirical research studies on higher education employees in India and anywhere in the world reveals that key psychosocial stressors i.e. heavy workloads, limited autonomy, poor reward, role ambiguity together with poor electronic communication is the major determinant of job dissatisfaction. The evidence indicates that supervisor and work peer Social support is a critical buffer to psychosocial stress. The paper contends that appropriate psychosocial intervention, open governance and equitable allocation of work load is imperative in enhancing job satisfaction and performance of institutions in Magadh University. It addresses implications to university administration, policymakers as well as researchers.