Compensation costs are among the most significant expenses incurred by organizations. To date, the theory and research on the effectiveness of financial compensation has been limited and has largely been based on subhuman species and on nonrepresentative subjects acting in simulated environments. There have been few tests of the theory in operating organizations. Management approaches to compensation have not been evaluated in terms of higher need satisfaction, need desire, general satisfaction, feelings of equity, job involvement, nor intrinsic motivation. This exploratory study investigated these relationships and examined the interrelationship of factors proposed by E.E. Lawler in a model of the determinants of pay satisfaction. Data was gathered by questionnaire from 15 junior management and supervisory level employees in one organization. Salary satisfaction was significantly correlated with opportunities for personal growth and development and with self-fulfillment. Satisfaction with salary was not significantly correlated with general satisfaction. The results indicated that if a salary administration program is to be effective, it must be manageable and understandable to the employees. Employees expect to receive feedback and when they do not they are critical of their supervisors. Similarly, employees expect that when they receive praise from their supervisors for performance well done, it will be translated into salary increases. Where this does not occur, employees are dissatisfied. In evaluating the equitability of their salaries, participants considered not only their absolute pay levels, but also the relative levels of input and outcome of comparison persons. The results did not support Lawler's hypothesis that female employees would be more satisfied with their salaries than male employees. Data on general satisfaction contradicted Herzberg's dual-theory constructs. Job involvement factors were found to be highly intercorrelated supporting Lawler's conception of a job involvement factor. The data did not, however, support the existence of an intrinsic motivation factor. Data on need fulfillment and need desire were inconclusive. / Business, Sauder School of / Graduate

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In the present organisational climate characterised by intense competition, the success of an organisation is increasingly dependent on its employees' expertise and knowledge (Carrel, Elbert, Hatfield, Grobler, Marx & Van der Schyf, 1997). Employees need to be motivated to contribute to the organisation's goals, for their knowledge and expertise to benefit an organisation (Lawler III, 1994). Organisations need to foster a situation in which employees have a positive attitude towards work and are able to benefit personally through directing their effort towards organisational goals. (Robbins, 2000) This study focuses on an organisation that has managed to link job satisfaction with organisational gain, and explores the link between these two subjects. A case study of a South African mining operation is reported on, and examined in-depth. The mine, a successful operation in terms of productivity, is recognised by its holding company as exemplary and is competing with the best base metal producers in the world. The research was conducted in two stages. The first stage consisted of 20 semi-structured individual interviews. Ten employees were selected from both the lower employee-levels and the higher employee-levels. The individual interviews focused on the experience of working at the mine with particular reference to interpersonal dynamics, job satisfaction, leadership style, and reward systems. During the second stage of the research, focus groups were conducted with two groups of seven employees each, one group from the lower-levels and one from the higher-levels. The focus groups aimed at obtaining a deeper understanding of the issues that emerged from the individual interviews. Grounded theory analysis was used during both the first, and second phase of the study. The results indicated that the mine's employees experience a high level fulfilment of higher-order needs, and that this experience is a reaction to the mine's performance enhancing culture. It is further shown that the same factors that create job satisfaction, when applied in excess, or in certain circumstances may lead to dissatisfaction within the same context.

by Kenneth, Kai-cheong, Luk. / Quenstionnaire in Chinese. / Thesis (M.Phil.)--Chinese University of Hong Kong, 1997. / Includes bibliographical references (leaves 78-84). / ABSTRACT --- p.i / TABLE OF CONTENTS --- p.iii / LIST OF TABLES --- p.v / ACKNOWLEDGMENT --- p.vii / Chapter / Chapter I. --- Introduction --- p.1 / Background of the Study --- p.1 / Theoretical Framework --- p.2 / Research Questions and its Significant --- p.5 / Chapter II. --- Literature Review --- p.9 / Pay Level and Gender --- p.10 / Pay Level and Academic Achievement --- p.13 / Pay focus and Achievement Motivation --- p.14 / Pay Base and Locus of Control --- p.18 / Pay Structure and Machiavellianism --- p.20 / Chapter III --- Hypotheses of the Study --- p.22 / Chapter IV --- Methodology --- p.25 / Sample --- p.25 / Measurement --- p.25 / Independent Variables --- p.25 / Dependent Variables --- p.28 / Controlling Variables --- p.29 / Dummy Variables --- p.31 / Questionnaire Design --- p.31 / Pilot Testing --- p.32 / Statistical Power --- p.33 / Statistical Analysis --- p.34 / Chapter V --- Result of the Study --- p.38 / Hypotheses Testing --- p.55 / Chapter VI --- Discussion and Conclusion --- p.58 / Limitation --- p.65 / Implication --- p.67 / Further Research Suggestion --- p.69 / Conclusion --- p.71 / Chapter Appendix 1 --- The Questionnaire --- p.73 / Bibliography --- p.78