Performance pay, risk attitudes and job satisfaction

We present a model in which workers with greater ability and greater risk tolerance move into performance pay jobs to capture rents and contrast it with the classic agency model. Estimates from the German Socio-Economic Panel confirm testable implications drawn from our model. First, before controlling for earnings, workers in performance pay jobs have higher job satisfaction, a proxy for on-the-job utility. Second, after controlling for earnings, workers in jobs with performance pay have the same job satisfaction as those not in such jobs. Third, those workers in performance pay jobs who have greater risk tolerance routinely report greater job satisfaction. While these findings support models in which workers capture rent, they would not be suggested by the classic agency model.     

Expatriate pay satisfaction: the role of organizational inequities,assignment stressors and perceived assignment value

Using equity, stress and buffer theories, we investigate the role played by organizational inequities (organizational justice and provision of benefits) and assignment stressors (work adjustment and role novelty) in predicting expatriate pay satisfaction. We also assess the role of perceived assignment value as an important buffer that moderates the above relationships. With a sample of 78 expatriates from nine nationalities working in Hong Kong, we find that organizational justice and work adjustment are both positively related to expatriate pay satisfaction. We also find that perceived assignment value strengthens the provision of benefits–pay satisfaction and work adjustment–pay satisfaction relationships. Limitations and managerial implications are discussed.     

The dimensionality and determinants of pay satisfaction: a cross-cultural investigation of a group incentive plan

This paper proposes and empirically examines a conceptual framework for investigating the dimensionality and determinants of pay satisfaction. Satisfaction with group incentive plans is found to be a distinct dimension of the multidimensional pay satisfaction construct, whereas procedural justice and pay for performance perception are found to be its significant determinants. Cross-cultural comparisons are made using data collected from a multinational firm's employees in the US and Hong Kong. National culture is found to have direct and moderating effects on pay satisfaction. Implications for academics and human resource managers are discussed.     

Pay knowledge,pay satisfaction and employee commitment: evidence from Finnish profit‐sharing schemes

Knowledge of the pay system has been identified as one of the key elements affecting the success of the reward system. In this paper, the aim is to study how communication, performance feedback and membership length are related to profit‐sharing knowledge, and how profit‐sharing knowledge is related to profit‐sharing satisfaction and organisational commitment. The data is collected from Finnish personnel funds, which are deferred profit‐sharing schemes. Survey data from over 753 employees in 30 companies in different sectors were used. In studying the antecedents of profit‐sharing knowledge, we found strong evidence that better profit‐sharing communication and higher membership length increase profit‐sharing knowledge. Furthermore, we find strong evidence that the relationship from profit‐sharing knowledge to commitment is mediated by profit‐sharing satisfaction. We discuss the implications for management.     

Personality and pay satisfaction: exploring the influence of organizational justice and gender in South Africa

This study contributes to the limited established empirical research on the impact and relevance of individual-level personality variables, specifically the broad dispositional trait, core self-evaluations, on the pay satisfaction of historically disadvantaged individuals. In light of recent inquiries which document the important causal role of personality attributes in the emergence of fairness perceptions, this study examines the mediating role of justice perceptions on the relationship between core self-evaluations and pay satisfaction. Using a sample of historically disadvantaged individuals from South Africa, our results show that organizational justice perceptions fully mediate the relationship between core self-evaluations and pay satisfaction. Furthermore, this study finds that gender moderates the relationship between core self-evaluations and pay satisfaction such that self-confident historically disadvantaged females are more satisfied with their pay than their male counterparts.     

金钱偏好：如何影响薪酬和薪酬满意度之间的关系？

本研究运用问卷调查法考察了薪酬和金钱偏好对薪酬满意度的四个方面（薪酬水平满意度、福利满意度、薪酬管理满意度、薪酬增长满意度）的不同影响。来自同一家企业的139名员工参加了调查,完成了金钱偏好和薪酬满意度问卷,并报告了他们的薪酬水平。在对139个员工样本的多元回归分析中发现：薪酬对福利满意度有显著的积极影响,而金钱偏好对薪酬水平满意度和薪酬增长满意度有显著的消极影响。进一步,又考察了金钱偏好对薪酬和薪酬满意度的四个维度之间关系的调节效应,发现：在低金钱偏好组中,薪酬对福利满意度和薪酬增长满意度有显著的积极影响;而在高金钱偏好组中,薪酬对四个薪酬满意度维度均没有显著影响。我们讨论了研究结果对管理实践的意义。     

Does contingent pay encourage positive employee attitudes and intensify work?

This article explores the relationships between three dimensions of contingent pay – performance‐related pay, profit‐related pay and employee share‐ownership – and positive employee attitudes (job satisfaction, employee commitment and trust in management). The article also examines a conflicting argument that contingent pay may intensify work, and this can detract from its positive impact on employee attitudes. Of the three contingent pay dimensions, only performance‐related pay had direct positive relationships with all three employee attitudes. Profit‐related pay and employee share‐ownership had a mix of negative and no significant direct relationships with employee attitudes, but profit‐related pay showed U‐shaped curvilinear relationships with all three employee attitudes. The results also indicated that performance‐related pay is associated with work intensification, and this offsets some of its positive impact on employee attitudes.     

Do project managers' leadership competencies contribute to project success?

This article explores the following hypothesis: There is a statistically significant relationship between a project manager's leadership competencies and project success. Two proven questionnaires, the leadership dimensions questionnaire (LDQ) and the project success questionnaire (PSQ), were used to gather data from 52 project managers and project sponsors from a financial services company in the United Kingdom. The results from the LDQ and PSQ are presented in this article. A factor analysis of PSQ revealed three independent factors: usability, project delivery, and value of output to clients. The last factor is not related to project leadership or management, so the article concentrates on correlations between the other two factors and project leadership. Eight separate leadership dimensions were found to be statistically significantly related to performance, so the hypothesis was largely supported. Identifying such relationships provides managers with guidance on possible selection and project improvement models, whereby increased capability in leadership dimensions can lead to increased success in project management.     

The problem with pay flexibility: changing pay practices in the UK health sector

This paper critically assesses models and policies of pay flexibility as applied to the public sector. Examination of the arguments for greater pay flexibility across three dimensions - external labour market flexibility, organizational flexibility, and macroeconomic flexibility - reveals a number of weaknesses, rooted in a failure to problematize the conflicting motives for greater pay flexibility in the context of pressures internal and external to the organization. An alternative 'model' of changing pay systems is developed and applied to the case of the UK health sector where there have been attempts to introduce various forms of flexible local pay arrangements. Drawing on interviews conducted during the mid-1990s with personnel and HRM managers at fifteen NHS Trusts, a number of issues are examined, such as: the impact of differential external labour market conditions of workers on the development of strategies designed to tie local pay to improved performance; the introduction of performance-related pay as a means to institutionalize wider earnings differentials within the organization; and the potential conflict between pressures to link local pay structures with local labour market conditions, on the one hand, and customary employee-held norms that link pay to occupational skills and professional status, on the other.     

Affective commitment among knowledge workers: the role of pay satisfaction and organization career management

Knowledge workers are highly sought after to help organizations establish their competitive advantage. However, getting them to want to stay with an organization is a challenge indeed. Furthermore, with claims that they are different from traditional workers, it remains unclear as to what will influence them to want to stay. Hence, the purpose of this paper is to determine whether pay satisfaction and career management (opportunity for skill enhancement and mentoring relationship) can influence the level of affective commitment among knowledge workers. Data measuring the abovementioned variables was gathered from 350 respondents representing varied occupation to ensure representation of all levels of knowledge work. Findings indicate that the proposed factors significantly influence the level of affective commitment among knowledge workers engaged in low knowledge work category. For their counterparts involved in high knowledge work, these factors had minimal influence. This paper implies that organizations should refrain from employing generic strategies to improve affective commitment among knowledge workers. Instead, attention should be paid onto the level of knowledge work when selecting the appropriate strategy. This paper incorporated the micro-level characteristic of knowledge work to traditional relationship with emphasis on how different strategies appeal to different knowledge work categories.     

Job longevity as a situational factor in job satisfaction.

This study investigates the relationships between overall job satisfaction and the five task dimensions of skill variety, task identity, task significance, autonomy, and feedback-from-job for employees at different stages of their careers, as measured by their length of employment on their current jobs, as well as in their current organizations. Basically, the analysis shows that the strength of the relationships between job satisfaction and each of the task dimensions depends on both the job longevity and organizational longevity of the sampled individuals. For employees new to an organization, for example, only task significance is related positively to job satisfaction, while autonomy has a strongly negative correlation. The study presents other significant correlational differences and discusses the implications of its findings for task design, as well as for managing new employees. Approximately 3500 respondents from four different governments--two metropolitan, one county, and one state--participated in the collection of survey data.     

Which are the determinants of green purchase behaviour? A study of Italian consumers

Green purchase behaviour is receiving a growing attention in the academic community, as understanding it is crucial for the growing number of companies developing and marketing green products. In order to provide a broader and novel picture of the phenomenon, this study extends the widely used Theory of Planned Behaviour (TPB) model in several ways, through a large survey of Italian consumers. First, three dimensions of green purchase behaviour are considered, namely, the willingness to pay a premium price, the green purchase frequency and the green purchase satisfaction. Second, several antecedents are considered simultaneously. Third, new (consumer creativity) or so far marginally studied (materialism and green practices) antecedents are included. Fourth, the mediating roles of green purchase satisfaction and willingness to pay a premium price in the link between the considered antecedents and the frequency of green purchase are investigated. Results show that the three dimensions of green purchase behaviour have different antecedents, so highlighting that green purchase behaviour is a multi-faceted phenomenon that should not be studied as a single general concept. Personal norms and value for money emerged to be very relevant predictors. The significant effects of creativity, materialism and green practices provide evidence that extending the TPB model with these three antecedents is useful to more deeply understand green purchase behaviour. Green purchase satisfaction is the strongest predictor of purchase frequency and mediates the effects of personal norms and value for money.     

价值观、积极情感与薪酬满意度的关系

通过对一家高科技制造型上市公司175名员工的调查数据,分析了价值观、积极情感和薪酬满意度各个维度的关系。结果表明,价值观、积极情感和薪酬水平的交互作用对薪酬水平满意度、薪酬管理满意度和薪酬提升满意度有显著影响,但对薪酬福利满意度的影响不显著;同样的薪酬水平,经济型价值观的高积极情感员工的薪酬满意度高于低积极情感的员工,且薪酬水平的变化对薪酬满意度的影响更加显著。     

Predicting employee commitment and satisfaction: the relative effects of socialization and demographics

This study compared the relative influences of organizational socialization and demographic variables on job satisfaction and organizational commitment. Organizational variables were assessed by asking 193 Chinese employees in Hong Kong to evaluate socialization within their companies, namely: (1) training received; (2) understanding of the organization; (3) co-worker support; and (4) future prospects within their companies. Dependent variables were standard measures of (affective, continuance and normative) commitment and of satisfaction (with co-workers, pay, promotion, supervisors and the work). Results revealed higher correlations between the socialization measures and job satisfaction and commitment than between the demographic measures and the dependent variables. Although a few demographic measures had some predictive power, the regression analyses confirmed that the socialization variables were consistently stronger predictors of both satisfaction and commitment. Strategic implications for human resource management are discussed.     

How to close the gender pay gap in Europe: towards the gender mainstreaming of pay policy

The European Employment Strategy includes a new commitment to a substantial reduction in the gender pay gap in European Union (EU) member states, but progress requires a radical shift away from the traditional policy emphasis on the supply‐side deficiencies of women compared with men. Mainstream theory argues that gender inequality is reduced once the pay gap is ‘adjusted’ for differences in individual characteristics (education, experience, etc.). But new empirical studies in many EU member states demonstrate that the work environment—the general wage structure, job and workplace characteristics—shapes gender pay inequality. Given the negative gender impact of trend declines in minimum wages, moves towards more decentralisation of wage‐setting and public sector restructuring, the article argues for a holistic, gender mainstreaming approach to pay policy.     

Equal or equitable pay? Individual differences in pay fairness perceptions

This study examined how social comparison (i.e., comparing one's pay to similar others' pay) and deserved comparison (i.e., comparing one's pay to one's deserved pay) affect pay fairness perceptions, and the individual differences in the comparison processes. Results based on a field study with a sample of 167 employees showed pay fairness was low when employees received lower pay than a similar other (or what they deserved), increased as their pay exceeded that of a similar other (or deserved pay) to some extent, and then decreased when overpayment was considerable. Second, pay fairness increased as one's actual and similar others' pay levels both increased while pay fairness remained the same as one's actual and the deserved pay levels both increased. In addition, the “threshold” that people start to perceive overpayment as less fair occurred more quickly for those with higher preference for consistency in social comparison and for those with higher preference for the merit principle in deserved comparison. We also conducted experiments, and the results generally replicated the findings in the field study. These findings offer theoretical implications regarding organizational justice, as well as practical implications for designing and executing a compensation system.     

基于政府补贴分析的新能源战略博弈模型研究

企业在新能源战略中如果不发展新能源战略带来的成本节约率ε1越高,其边际成本C1越低,新能源产品和传统产品的价格差异越大。随着消费者对每个环境满意度愿意支付的K值的增加,两个厂商的产品价格都会增加,也就是说,随着消费者环保意识的增加,环境满意度支付意愿也会增加,这样的结果不仅仅是生产新能源的厂商2受益,厂商1也会受益;政府提高市场最低绿色程度准入标准,低绿色程度的传统产品和新能源产品的价格都会增加。政府设定的市场最低绿色准入标准会对两个厂商的市场份额有影响。     

Questioning the relevance of supplier satisfaction for preferred customer treatment: Antecedent effects of comparative alternatives and multi-dimensionality

Through the construct of supplier satisfaction, recent research explains the supplier's preferred treatment of a given customer. This cause-and-effect phenomenon is often not contrasted with other reasons or controlled for. This work addresses this issue and uses two tactics to elaborate upon social exchange theory, namely, construct splitting and construct contrasting, to analyse the development of preferential customer treatment. For this purpose, a structural equation model is used with data from the international automotive industry. The results extend the breadth of constructs explaining preferred customer treatment (PCT) and challenge the existing reasoning by questioning the relative importance of supplier satisfaction. While supplier satisfaction does affect PCT, the relative supplier satisfaction defined as a comparison of outcomes between the actual and the best alternative business relationships influences PCT much more.Furthermore, by distinguishing between the economic and non-economic dimensions of supplier satisfaction, the study indicate that economic satisfaction has a higher influence on the relative satisfaction whereas social satisfaction a higher one on absolute supplier satisfaction.These findings imply that despite the current debate about the importance of behavioural constructs such as supplier interaction and social capital, supplier resource allocation decisions are actually dominated by economic and relative aspects of satisfaction. This outcome calls for a more economically driven debate about behavioural supply management approaches.     

International human resource management: a North American perspective,a thematic update and suggestions for future research

This research explores the direct influence of pay referents and procedural justice on pay satisfaction, job satisfaction and organization satisfaction, and the mediating role of these three aspects of satisfaction between forms of justice and unionization propensity. To test the importance and directions of these relations, we used a LISREL-type structural equation model. The findings showed that the three equity referents of organizational justice (internal, external and individual) are linked to pay satisfaction, and that distributive justice is a better predictor of pay satisfaction than procedural justice perceptions. In contrast, procedural justice is a better predictor of organizational satisfaction and job satisfaction than are distributive justice perceptions. The final model suggests that job satisfaction and organization satisfaction significantly influence propensity to join a union compared with organizational justice perceptions. The paper also specifies the limitations of the study and its practical implications, and makes suggestions for future research.     

The role of pay secrecy policies and employee secrecy preferences in shaping job attitudes

Although pay secrecy continues to garner attention in human resource management, little research examines how these policies impact employees. Research inconsistently links secretive pay policies to unfavourable outcomes but has yet to consider that employees may have varying attitudes toward these policies. We examine how employee preferences modify the effect that organisational pay secrecy policies have on employee attitudes in a sample of 431 employed adults. To accomplish this goal, we create measures of pay secrecy policies and pay secrecy preferences that each differentiate two facets of pay secrecy: distributive pay non‐disclosure and communication restriction. Polynomial and moderated regression analyses indicated that disparities between employee preferences and organisational pay secrecy policies can reduce job satisfaction and perceptions of informational, interpersonal, and procedural justice under certain circumstances. These results simultaneously highlight the importance of employee attitudes toward pay secrecy policies and the challenges human resource practitioners face in managing employees with diverse preferences.