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Perceptions of internal rewards equity, equity sensitivity, psychological capital and work engagement

Psychological capital and work engagement, both constructs rooted in positive psychology, have been associated with positive outcomes in the workplace, such as better job performance and organisational citizenship behaviours. The rewards practices of organisations have not been widely studied in relation to these positive psychological constructs, despite the clear importance of understanding how the way that employees are rewarded serves to motivate behaviour in the workplace. This study sought to bring together two rewards-centred constructs, namely, the perceptions of equity of rewards and the equity sensitivity of employees, and the two positive psychological constructs of psychological capital and work engagement, with the aim of understanding how these constructs relate to each other and, ultimately, discerning how reward systems might best be aligned to improve employee performance. A theoretical model was constructed based on a review of relevant literature, and eight hypotheses were set to test the model. This research took the form of a cross-sectional design, using a composite questionnaire to measure psychological capital, work engagement, equity sensitivity and perceptions of equity in rewards by means of a self-report electronic survey. Employees at a South African university were invited to participate in the study by means of an emailed invitation, and a sample of 305 respondents was achieved. Data analysis was conducted using descriptive and inferential statistics, which included frequency tables, Cronbach’s alpha testing, Pearson’s Product-Moment Correlations, chi-square tests, t-tests, analysis of variance, hierarchical regression analysis, confirmatory factor analysis, and structural equation modelling. The results of the survey showed that respondents had high levels of psychological capital with the exception of the medium scores on the Optimism dimension; levels of work engagement were high overall; responses regarding the perceptions of equity of rewards relating to promotions were most negative, with the rest of the perceptions of equity of rewards dimensions being scored neutrally; and scores for equity sensitivity showed a tendency toward a benevolent disposition. Significant differences were found between demographic groups in the sample for all of the constructs under investigation. Evidence was found in support of the hypothesised relationships in the theoretical model, with the exception of the hypothesised link between equity sensitivity and the perceptions of equity of rewards. The hypotheses regarding moderation relationships were not accepted, based on the results of the hierarchical regression analysis. Structural equation model testing resulted in unsatisfactory fit of the statistical model. Confirmatory factor analysis results provided support for the acceptability of the Equity Sensitivity Instrument, Utrecht Work Engagement Scale and Psychological Capital Questionnaire for use on a South African sample. As far as it could be ascertained, the constructs under investigation have not been examined together before. The study therefore contributes uniquely to the existing body of positive organisational behaviour research, and begins to fill the gap identified in the Rewards literature. A number of recommendations for researchers and for organisations stemming from the study are put forward.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:20565
Date January 2016
CreatorsWarneke, Kirsten Ruth
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MCom
Formatxiv, 216 leaves, pdf
RightsNelson Mandela Metropolitan University

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