Indiana University-Purdue University Indianapolis (IUPUI) / This paper aims to reproduce the voice effect in a pay-for-performance (PFP) environment, ultimately to uncover how affective measures can be leveraged in analyzing the effectiveness of PFP programs. Historically, the effectiveness of PFP programs has been measured by readily available metrics like sales quotas or widgets produced such that effective PFP programs would increase the amount of sales or widgets produced. Using affective measures like pay satisfaction and perceptions of fairness can supplement objective measures in the future. 410 participants with a percentage of their pay involved in PFP participated in this study via MTurk. Employee voice was hypothesized to positively influence perceptions of pay system satisfaction and pay level satisfaction through the mediating effects of procedural (PJ) justice and distributive justice (DJ) respectively. Results yielded significant, positive relationships between voice, PJ, and pay system satisfaction as well as voice, DJ, and pay level satisfaction. Relationships were stronger the more pay the employee had that was variable in the PFP program. These findings suggest that employees are more likely to be satisfied with their pay and the amount of pay in the PFP program as their opportunity to voice their opinions about PFP increase.

This study aims at developing and verifying the construct of work values, pay satisfaction, organizational commitment and turnover intention in a Chinese context. Turnover has always been one of the tricky area for managers. In order to better manage of the turnover rate, this study focus on turnover intention and organizational commitment which are the best predictors to separation. Pay satisfaction and work values are employed as determinants to organizational commitment and turnover intention while organizational commitment is assumed as negatively related to turnover intention. The results indicate higher pay satisfaction contributes to higher organizational commitment and lower turnover intention. Also, people treasure work values more tend to have higher organizational commitment and lower turnover intention. Pay satisfaction in the construct serve as the mediator between work values and turnover intention. Besides, employees with senior high school degree treasure ¡§job independency¡¨, and ¡§job content¡¨ less than higher educated people. Management demonstrate higher pay satisfaction and likely due to more opportunity cost they show higher continuance commitment respectively.

¡@¡@The main purpose of this research is to understand what factors will affect the engineer work attitude. I focus on the issue of engineer¡¦s organizational commitment, job satisfaction, and turnover intention with pay satisfaction and pay equity. Through this research we can know below results: I. Engineer¡¦s pay satisfaction affects his work attitude. 1. There is a significant positive relation between the benefit of pay satisfaction and the continual organizational commitment. 2. There is a significant positive relation at the pay structure and administration and the benefit and job satisfaction. 3. There is a significant negative relation at the pay structure and administration and the benefit and turnover intention. II. Engineer¡¦s pay equity affects his work attitude. 1. There is a significant positive relation between the communication of pay procedure equity and the organizational commitment. 2. There is a significant positive relation at the external and internal distributive equity and job satisfaction. 3. There is a significant negative relation at the external and individual distributive equity and turnover intention.

Abstract Most enterprises acknowledge that technology and experience accumulated by the employees are the most important assets. In order to make regular employees dedicate their efforts on work, reduce employees¡¦ turnover, and enhance their motivations as well as hard-work attitudes, it¡¦s popular for the corporate to assess the job satisfaction of the employees¡¦. According to the equity theory, the corporate employees would be frustrated and maybe reduce their satisfactions on jobs in case they aware of unfair treatment from the organization, no matter what is caused by the distribution or the procedure. Also, incentive pay and benefits system in salary management could motivate and enhance employee¡¦s morale, and moreover help strengthen the overall competitiveness of organizations. Are all of the above mentioned dimensions there significant influences on the job satisfaction? A number of documents reveal confusion regarding relationships among constructs of pay and benefits satisfaction and distributive and procedural justice. The purpose of this study is to measure and verify the relevance among them, and to further clarify the differential effects resulted from these dimensions on the job satisfaction. The study was conducted in a large Taiwan company and carried out via the questionnaire approach as well as SPSS analysis to show the differential effect of the four dimensions- procedural justice, distributive justice, pay satisfaction, and benefits satisfaction, distributive justice, and procedural justice- on job satisfaction. Results showed some important findings as below: 1. Procedural/ distributive justice and pay/ benefits satisfaction are significantly associated with each other. Particularly distributive justice plays more positive effect on pay than procedural one; however, procedural justice does more positive effect on benefits than distributive one. 2. There are positive relationships between both procedural/ distributive justice with job satisfaction. So are both pay/ benefits satisfaction with job satisfaction. It implies that raising the procedural/ distributive justice through improving the system of an organization to increase the job satisfaction of the employees¡¦ is another good way except improving pay/ benefits for the employees. 3. Each of procedural / distributive justice and pay/ benefits satisfaction influences job satisfaction positively. The priority of the effect extent is distributive justice most, procedural justice the second, pay the third, and benefits the last. 4. If we assess the effects of the four dimensions together-procedural justice/ distributive justice/ pay/ benefits satisfaction on job satisfaction, the result shows that distributive justice is with the maximum effect, followed by pay satisfaction, and then followed procedural justice, and benefits satisfaction the minimum. Therefore as the study results showed, if the enterprises attempt to retain talent, reduce employee turnover, and further expect employees to perform better and to take more responsibilities, they can motivate employees with procedural justice and distributive one to achieve organizational goals in addition to with pay and benefits system. specially when some business units in a firm hire outsourced workers in future and then the phenomenon of unequal pay for equal work happens under the situation that the pay system could not be adjusted, it may be a solution for the corporate that it reinforces the "justice" in the system by enhancing the potential of employees perceptual experience to retain high ¡Vquality employees as well as to maintain good efficiency.

This case is based on a semiconductor equipment supplier which was a branch in Taiwan. The research is about analyzing how the influence of compensation system reform on employees¡¦ pay satisfaction & organizational commitment through by employees¡¦ pay-for-performance perceptions and justice perceptions on reformed compensation system. By doing that, we can understand the performance of the new system. The result of the research could be provided to the company for reference for next compensation system reformed. The result of the research is summarized as below: 1. Employees¡¦ pay-for-performance perceptions of reformed compensation system has positive impact on value commitment and commitment-to-stay. For justice perceptions has positive impact on value commitment. 2. Employees¡¦ justice perceptions of reformed compensation system has positive impact on pay satisfaction. 3. Employees¡¦ pay satisfaction of reformed compensation system has positive impact on value commitment and commitment-to-stay. 4. Pay-for-performance perceptions and justice perceptions of reformed compensation system will impact on value commitment and commitment-to-stay through pay satisfaction.

Abstract A well designed salary system can influence employee¡¦s work motivation and will reflect on their work performance. It would not be difficult to understand, based on the theory of expectancy, a linkage between reward and performance will motivate employee to work harder, and from which to create good performance and in turn to receive better rewards. That is to say a business which adopts an incentive reward system to motivate employee will receive better performance from them in a consistent manner and the end result is to improve the performance of the organization. In the past, there have been many researches on influence of salary system on pay satisfaction and working attitude of employee, but few has studied differences in individual risk preference which can interfere with pay satisfaction and to explore differences in risk preference of employee, the effect of variable pay on pay satisfaction and working attitudes. Through empirical analyses, it was found that: 1. In an organization, an implementation of variable pay system will affect pay satisfaction. As salary links more closely with performance, employee¡¦s pay satisfaction increases. 2. The impact of variable pay on pay satisfaction is not influenced by individual risk preference. Due to differences in salary system to motivate employee, in the business this study concludes if employee is unaware of risk or incentive that is structured in the salary system, then there will be not interaction between difference in risk preference and variable pay system, and will also have no impact on salary satisfaction. 3. Pay satisfaction will have an effect on work attitude of employee. The higher the pay satisfaction, the stronger the organization commitment and job involvement by the employee. 4. Through pay satisfaction, variable pay will indirectly affect employee¡¦s work attitude. A reflection on organizational commitment and job involvement due to salary variable as a result of performance change in part must pass through the intermediate effect of pay satisfaction. Keywords: variable pay, risk preferences, pay satisfaction, organizational commitment, job involvement

Master of Science / Department of Psychology / Patrick A. Knight / A structural equations model hypothesizing that individuals' core self-evaluations would significantly predict their preferences for various pay plan characteristics (e.g., high risk, variable pay, etc.) was tested. This hypothesis, which specified that individuals with higher levels of core self-evaluations would prefer pay plans that offered greater risk and less certainty regarding the amount of pay received, was supported. Furthermore, it was also hypothesized that congruence between an individual's preferred pay plan characteristics and the actual type of pay plan that he or she receives would result in higher levels of employee job satisfaction and pay satisfaction. This hypothesis was partially supported, as the relationship between congruence and job satisfaction was significant, while the relationship between congruence and pay satisfaction was not significant. Finally, it was hypothesized that the relationship between congruence and satisfaction would be moderated by the value that the individual places on money. This hypothesis was not supported. The results of this research indicate that personality characteristics may have a significant impact on the type of pay plan that an individual will prefer to receive. Furthermore, this research provides additional support for the belief that high levels of fit between the characteristics of individuals and the characteristics of the organizations for which they work will result in higher levels of employee satisfaction. Finally, the degree of importance that an individual places on money does not appear to alter the relationship between fit and satisfaction. These results have strong implications for businesses that wish to improve employee satisfaction and reduce employee turnover, as well as for individuals who are seeking occupations for which they will best be suited.

Thesis (MComm)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: Pay satisfaction is an essential aim in any company’s reward system, since various studies indicate that it affects employee job performance. With limited resources and restricted capacity to increase pay, firms require a better understanding of how employee pay satisfaction develops and how employee work-related behaviour is affected by pay satisfaction. The purpose of this study was threefold: First, to investigate the relationship between actual pay and pay satisfaction, and second, to explore the effect that pay motivation dimensions derived from expectancy theory (Vroom, 1964) — pay valence and pay instrumentality — have on this relationship. Lastly, the study aimed to explore the relative effects of these objective (pay) and subjective (pay perceptions) variables on employee job performance. Self-report survey data of managerial employees (N = 177) from a South African retail organisation were collected, along with supervisor ratings of job performance and objective actual pay data, for each participant. The Pay Satisfaction Questionnaire (PSQ) and a selfdeveloped Pay Valence and Instrumentality Questionnaire (PVIQ) were administered through an intranet-based survey. Data were analysed with a variety of statistical techniques. Descriptive statistics were used to assess underlying assumptions of the multivariate analysis techniques used to analyse the research data, and to describe the central tendency and dispersion of study variables. Pearson product moment correlations were calculated to assess bivariate relationships. Standard multiple regression analysis was utilised to assess the joint relationship between IVs and DVs, and relative weights analysis (RWA) to assess the relative importance of IVs within respective regression models. Moderated multiple regression (MMR) analysis was used to examine possible moderator effects. To determine whether mediating (indirect) influences were present, normal theory and bootstrap estimates of indirect effects were obtained. In this research, selected antecedents and consequences of pay satisfaction were investigated. Regarding antecedents of pay satisfaction, the results suggested that actual pay had a small but significant effect on pay satisfaction, but not pay valence, nor pay instrumentality. Pay motivation perceptions (pay valence and pay instrumentality) neither moderated, nor mediated, the relationship between pay and pay satisfaction. The consequences of pay perceptions, in conjunction with actual pay, were also assessed. Pay satisfaction had no statistically significant relationship with job performance (p > .05), although actual pay had a moderate association with job performance. Although pay perceptions slightly incremented the validity of predicting performance from actual pay itself, this increment was not statistically significant (p < .05). In summary, the present research highlights the central role of actual pay in influencing pay satisfaction and job performance, but questions still remain about the way in which performance results from pay, since pay satisfaction did not mediate this relationship. The implications for future research are discussed and recommendations for research are made. / AFRIKAANSE OPSOMMING: Vergoedingstevredenheid is noodsaaklike doelwit in maatskappy se vergoedingsisteem en verskeie studies toon hoe dit werksprestasie van werknemers positief beïnvloed. Aangesien maatskappye oor beperkte hulpbronne en kapasiteit beskik om vergoeding te verhoog, word ‘n beter begrip vereis oor hoe werknemers se gedrag deur vergoedingstevredenheid beïnvloed word. Die doel van hierdie studie was drieledig: eerstens, om die verband tussen werklike vergoeding en vergoedingstevredenheid te ondersoek, en tweedens, om die effek van vergoedingsmotiveringsdimensies — afgelei van die verwagtingsteorie (Vroom, 1964), naamlik betalingsvalensie en betalingsinstrumentaliteit — en die verband te ondersoek. Derdens, om die invloed van hierdie objektiewe (vergoeding) en subjektiewe (vergoedingspersepsies) veranderlikes op werknemerprestasie te ondersoek. Die data is in Suid-Afrikaanse kleinhandelsonderneming versamel. Die volgende inligting is bekom van deelnemers: selfrapporteringsdata vanaf werknemers in bestuursposte (N = 177), werksprestasiebeoordelings deur hul onderskeie toesighouers, asook objektiewe werklike vergoedingsvlakke vir elke respondent. Die Vergoedingstevredenheidsvraelys en die selfontwikkelde Betalingsvalensie- en Instrumentaliteitvraelys is deur intranetopname geadministreer. Die data is met behulp van verskeidenheid statistiese tegnieke ontleed. Beskrywende statistiek is gebruik om die onderliggende aannames van meerveranderlike analise in die navorsingsdata te evalueer, en die sentrale neiging en verspreiding van die studieveranderlikes te beskryf. Pearsonprodukkorrelasiestatistiek is gebruik om die beduidendheid van die hipoteses rakende tweeveranderlike korrelasies te evalueer. Standaard meervoudige regressie-analise is gebruik om die gesamentlike verwantskap tussen onafhanklike veranderlikes en afhanklike veranderlikes te evalueer. Relatiewegewigte-analise (RWA) was gebruik om die relatiewe belangrikheid van onafhanklike veranderlikes, binne die onderskeie modelle, te evalueer. Gemodereerde meervoudige regressie-(MMR)-analise is gebruik om die moontlike bemiddelende uitwerking van veranderlikes te ondersoek. Normale teorie en “bootstrap”-raming van die indirekte invloede van veranderlikes is verkry om die moontlike mediëring van verbandskappe te evalueer. In hierdie navorsing is die voorafgaande faktore, sowel as die gevolge van, vergoedingstevredenheid ondersoek. Wat die oorsake van vergoedingstevredenheid betref, het die resultate aangedui dat werklike vergoedingsvlakke klein, maar wel statisties beduidende uitwerking het op vergoedingstevredenheid, terwyl betalingsvalensie en betalingsinstrumentaliteit geen beduidende uitwerking getoon het nie. Verder toon die resultate dat die verband tussen betaling en vergoedingstevredenheid word nie deur vergoedingsmotiveringspersepsies (betalingsvalensie en betalingsinstrumentaliteit) bemiddel of medieër nie. Die nagevolge van vergoedingspersepsies is onderling met werklike betaling ondersoek. Vergoedingstevredenheid het geen statistiese beduidende verband met werksprestasie getoon nie, tog het werklike betaling matige verband met werksprestasie getoon. Alhoewel betalingspersepsies die geldigheid van die voorspelling van werksprestasie vanaf werklike betaling inkrementeer, toon dit nie beduidende effek (p < .05) nie. Die huidige navorsing beklemtoon die sentrale rol wat werklike betaling steeds in die beïnvloeding van vergoedingstevredenheid en werksprestasie speel, hoewel die rede vir die verband tussen werklike betaling en prestasie steeds nie ten volle begryp word nie, aangesien vergoedingstevredenheid nie hierdie verband medieër nie. Beperkinge van die navorsing, asook die implikasies vir vergoedingspraktyk en toekomstige navorsing word bespreek.

The focus of this study is the assessment of the performance of the Nigerian retail banks on pay satisfaction through an examination of the sector's pay satisfaction levels. This has formed the basis of the literature review which focuses on pay, pay satisfaction determinants and gender inequality in the distribution of organisational wealth. Literature such as Adam's equity theory, Maslow's needs theory and Vroom's expectancy theory was reviewed. The work adjustment, organisational justice and Herzberg's dual-factor theories were also reviewed in order to form an opinion on what could determine pay satisfaction amongst the Nigerian retail banking sector's employees. The literature review findings conclude that pay satisfaction determinants could be based on the outcome of individual comparisons or referent others, and comparison between what they each earn and what they believe they each are worth to their respective organisations. The aims of this research are (a) to describe and analyse pay satisfaction levels amongst retail bank employees in Nigeria, (b) to identify whether or not pay satisfaction levels of this sector's employees are gendered, and (c) to establish whether or not male workers are more satisfied with their pay than female employees. The objectives are (a) to empirically explore their pay level satisfaction, (b) to test for similarities and differences in their pay satisfaction levels, and (c) to compare the pay satisfaction levels for any significant differences. The research was conducted using both primary and secondary methods with the aid of 600 self-delivered questionnaires within ten selected retail banking organisations based in Lagos and Abuja. The outcomes suggest low satisfaction levels with pay amongst the sector's employees, as just 60% of the 303 usable questionnaires from the 326 who responded indicated satisfaction with their pay. This indicates that male workers were more satisfied with their pay than their female counterparts. However, no significant variations in their satisfaction levels were noted. Finally, this study recommends that Nigerian retail banks implement equitable pay structures that recognise individual efforts whatever their gender. These banks should also establish equity and justice in the distribution of other wealth, and in their policy, process and administrative procedures rather than these being based on personality or culture.

The purpose of the present study was to integrate findings from commitment (organizational and professional commitment), its antecedents (especially in terms of personal characteristics), and pay satisfaction literature into a more comprehensive model that would further enhance the understanding of the full concept of commitment, which has been regarded as an important variable in appreciating the work behaviour of employees in organizations. The present study contributed to the literature on commitment in five important ways: (1) Consideration of multiple commitments was included in this study; organizational and professional commitment were examined in a multidimensional way; (2) Since different organizational and professional commitment varied across occupations (Wallace, 1993), it was worthwhile to explore the commitment orientation of R&D engineers in the electronics industry of Taiwan; (3) Direct effects of personal characteristics on two forms of commitment were measured; (4) Moderating effects of pay satisfaction on the relationship between personal characteristics and commitment were observed; (5) Whether there was a complementary or incompatible association between organizational commitment and professional commitment was examined. Several significant and interesting findings of this study are presented as follows. (1)Given that a higher education level has been considered to predispose individuals to lower organizational commitment, but stronger professional commitment, this idea was tested, and as hypothesized, R&D engineers with higher levels of education did report lower commitment to stay in the same organization but stronger value commitment to their profession, as well as stronger commitment to stay in the same profession. However, higher education levels did not cause lower value commitment to the organization. Indeed, it was found in this study that pay satisfaction moderated respectively, the relationship among different education levels, the commitment to stay in the same organization, the value commitment to the profession, and the commitment to stay in the same profession. (2)It was supported that a higher position demonstrated stronger commitment to stay in the same organization. Pay satisfaction moderated the relationship between different position level and commitment to stay in the same organization, as well as commitment to stay in the same profession. (3)As hypothesized, increased age correlated with stronger organizational commitment. It was also confirmed that pay satisfaction moderated the relationship between age and organization commitment. However, there was no significant relationship between increased age and professional commitment. Nor did pay satisfaction influence the relationship between age and professional commitment. (4)The hypothesis that increased organization tenure led to increased organizational commitment but decreased professional commitment was rejected. However, the hypothesis that pay satisfaction moderated the relationship between organizational tenure and organizational commitment was supported. (5)The hypothesis that women tended to demonstrate lower organizational and professional commitment was partially supported. Women reported lower value commitment to the organization, lower value commitment to the profession and lower commitment stay in the same profession, than their male counterparts. However, the relationship between gender and commitment to stay in the same organization was not supported, but pay satisfaction was found to moderate the relationship between gender and commitment to stay in the same organization. (6)This study confirmed that married engineers had stronger commitment to stay in the same organization and that pay satisfaction moderated the relationship between marital status and organizational and professional commitment, except for the value commitment to the profession. (7)In spite of the value commitment to the organization, however, it was found that the more dependents, the higher organizational commitment and the less professional commitment was demonstrated. That pay satisfaction moderated the relationship between number of dependents and organizational commitment was approved in this study. (8)The hypothesis that the more income an individual received, the higher organizational and professional commitment s/he demonstrated, was supported. However, a negative relationship was found between income and commitment to stay in the same organization. As anticipated, pay satisfaction moderated the relationship between salary level and organizational commitment. (9)A positive relationship between organizational and professional commitment was found in this study.