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Performance Based Pay As A Determinant Of Job Satisfaction: A Study In Malaysia Giatmara Centers

Author

Listed:
  • Azman ISMAIL
  • Nurhana M RAFIUDDIN
  • Mohd Hamran MOHAMAD
  • Norashikin Sahol HAMID
  • Aniza WAMIN
  • Nurzawani ZAKARIA

    (National Defence University of Malaysia)

Abstract

Compensation management literature highlights that performance based pay has two major characteristics: participation in pay systems and adequacy of pay. The ability of management to properly implement such pay systems may lead to increased job satisfaction in organizations. Though, the nature of this relationship is interesting, little is known about the influence of performance based pay on job satisfaction in compensation management literature. Therefore, this study was conducted to examine the relationship between pay for performance and job satisfaction in Malaysian GIATMARA centers. The results of exploratory factor analysis confirmed that measurement scales used in this study satisfactorily met the standards of validity and reliability analyses. An outcome of stepwise regression analysis shows that determinant of job satisfaction is performance based pay. Further, this result confirms that pay for performance is an important antecedent for job satisfaction in the studied organizations.

Suggested Citation

  • Azman ISMAIL & Nurhana M RAFIUDDIN & Mohd Hamran MOHAMAD & Norashikin Sahol HAMID & Aniza WAMIN & Nurzawani ZAKARIA, 2011. "Performance Based Pay As A Determinant Of Job Satisfaction: A Study In Malaysia Giatmara Centers," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 77-88, May.
    • Handle: RePEc:aio:manmar:v:ix:y:2011:i:1:p:77-88
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    References listed on IDEAS

    as
    1. W.D. McCausland & K. Pouliakas & I. Theodossiou, 2005. "Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction," Labor and Demography 0505019, University Library of Munich, Germany.
    2. Sweeney, Paul D. & McFarlin, Dean B., 1993. "Workers' Evaluations of the "Ends" and the "Means": An Examination of Four Models of Distributive and Procedural Justice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(1), pages 23-40, June.
    3. R Bruce Money & John L Graham, 1999. "Salesperson Performance, Pay, and Job Satisfaction: Tests of a Model Using Data Collected in the United States and Japan," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 149-172, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Pay for Performance; Job Satisfaction; Malaysian GIATMARA centers.;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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