IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v8y2016i5p27-38.html
   My bibliography  Save this article

Structural Determinants of Job Satisfaction: The Mutual Influences of Compensation Management and Employees' Motivation

Author

Listed:
  • Abayomi Olarewaju Adeoye
  • Sulaiman Olusegun Atiku
  • Ziska Fields

Abstract

The importance of job satisfaction as an antecedent to employees’ productivity and firm outcomes cannot be overrated in the world of business, especially in the service industry. This paper adds to the understanding of job satisfaction in insurance business by investigating the structural causes of task fulfilment. The mutual influences of compensation administration and employees’ motivation on job satisfaction was assessed using multivariate analysis. This research embraced a quantitative method and 212 employees were drawn using a convenience sampling technique. Three propositions were tested employing inferential statistical analyses run through SPSS statistics version 23 and SPSS Analysis of Moment Structures (AMOS) version 23. AMOS was used to structurally determine job satisfaction through structural equation modelling (SEM). SPSS statistics version 23 was instrumental in assessing the psychometric properties via exploratory factor analysis and Cronbach’s alpha coefficients. The results indicate a substantial affiliation between reward administration and motivation. Statistically, this study found that compensation management exerts more direct influence on employees’ job satisfaction than the indirect tie through motivation. There may be a need to redesign human resource practices in the industry to improve the degree of employees’ gratification and duty fulfilment.

Suggested Citation

  • Abayomi Olarewaju Adeoye & Sulaiman Olusegun Atiku & Ziska Fields, 2016. "Structural Determinants of Job Satisfaction: The Mutual Influences of Compensation Management and Employees' Motivation," Journal of Economics and Behavioral Studies, AMH International, vol. 8(5), pages 27-38.
    • Handle: RePEc:rnd:arjebs:v:8:y:2016:i:5:p:27-38
    DOI: 10.22610/jebs.v8i5(J).1429
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/1429/1314
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/1429
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v8i5(J).1429?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Florian Ederer & Gustavo Manso, 2013. "Is Pay for Performance Detrimental to Innovation?," Management Science, INFORMS, vol. 59(7), pages 1496-1513, July.
    2. Michael C. Jensen, 1994. "Self‐Interest, Altruism, Incentives, And Agency Theory," Journal of Applied Corporate Finance, Morgan Stanley, vol. 7(2), pages 40-45, June.
    3. Mahbubul Haque & A. N. M. Karim & Afia Muqtadir & Shahriyar Anam, 2012. "Dimensions of Job Satisfaction of Library Professionals: A Qualitative Exploration," International Journal of Business and Social Research, LAR Center Press, vol. 2(5), pages 46-62, October.
    4. Sinem Aydogdu & Baris Asikgil, 2011. "An Empirical Study of the Relationship Among Job Satisfaction, Organizational Commitment and Turnover Intention," International Review of Management and Marketing, Econjournals, vol. 1(3), pages 43-53, September.
    5. Carolyn Stringer & Jeni Didham & Paul Theivananthampillai, 2011. "Motivation, pay satisfaction, and job satisfaction of front‐line employees," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 8(2), pages 161-179, June.
    6. Mahbubul Haque & A. N. M. Karim & Afia Muqtadir & Shahriyar Anam, 2012. "Dimensions of Job Satisfaction of Library Professionals: A Qualitative Exploration," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 2(5), pages 46-62, October.
    7. Chris Riddell, 2011. "Compensation Policy and Quit Rates: A Multilevel Approach Using Benchmarking Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(4), pages 656-677, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Najda Hayajneh & Taghrid Suifan & Bader Yousef Obeidat & Mohammd Abuhashesh & Raed Kareem Kanaan, 2020. "The relationship between organizational changes and job satisfaction in the Jordanian telecommunication industry," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(1), pages 1-20, January.
    2. Mohammad Abuhashesh & Suleiman Jamal Mohammad & Mohammad Al Khasawneh, 2019. "The attitude of Jordanian customers towards virtual stores," International Journal of Islamic Marketing and Branding, Inderscience Enterprises Ltd, vol. 4(1), pages 59-75.
    3. Rana Khaled Abu Khalaf & Hazar Y.Hmoud & Bader Obeidat, 2019. "Reviewing the Mediating Role of Job Satisfaction on the Effect of Employee Engagement on Organizational Performance," Journal of Social Sciences (COES&RJ-JSS), , vol. 8(1), pages 7-23, January.
    4. repec:jso:coejss:v:8:y:2019:i:1:p:7.23 is not listed on IDEAS
    5. Canestrino, Rossella & Ćwiklicki, Marek & Magliocca, Pierpaolo & Pawełek, Barbara, 2020. "Understanding social entrepreneurship: A cultural perspective in business research," Journal of Business Research, Elsevier, vol. 110(C), pages 132-143.
    6. Herz, Holger & Schunk, Daniel & Zehnder, Christian, 2014. "How do judgmental overconfidence and overoptimism shape innovative activity?," Games and Economic Behavior, Elsevier, vol. 83(C), pages 1-23.
    7. Englmaier, Florian & Grimm, Stefan & Schindler, David & Schudy, Simeon, 2018. "The Effect of Incentives in Non-Routine Analytical Team Tasks – Evidence from a Field Experiment," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168286, Verein für Socialpolitik / German Economic Association.
    8. Dongying Du & Xiaojian Tang & Huaiming Wang & Joseph H. Zhang & Stephanie Tsui & Dongjie Lin, 2022. "CEO organizational identification and corporate innovation investment," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 4185-4217, September.
    9. Fiet, James O., 2001. "The theoretical side of teaching entrepreneurship," Journal of Business Venturing, Elsevier, vol. 16(1), pages 1-24, January.
    10. Chen, Clara Xiaoling & Lill, Jeremy B. & Lucianetti, Lorenzo, 2023. "Performance measurement system diversity and product innovation: Evidence from longitudinal survey data," Accounting, Organizations and Society, Elsevier, vol. 111(C).
    11. Glenn Dutcher & Cortney S. Rodet, 2022. "Which two heads are better than one? Uncovering the positive effects of diversity in creative teams," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(4), pages 884-897, November.
    12. Minkyung Lee & Boyoung Kim, 2023. "Effect of the Employees’ Mental Toughness on Organizational Commitment and Job Satisfaction: Mediating Psychological Well-Being," Administrative Sciences, MDPI, vol. 13(5), pages 1-18, May.
    13. Ina Ganguli & Marieke Huysentruyt & Chloé Le Coq, 2021. "How Do Nascent Social Entrepreneurs Respond to Rewards? A Field Experiment on Motivations in a Grant Competition," Management Science, INFORMS, vol. 67(10), pages 6294-6316, October.
    14. Ross Levine & Chen Lin & Lai Wei, 2017. "Insider Trading and Innovation," Journal of Law and Economics, University of Chicago Press, vol. 60(4), pages 749-800.
    15. Cole, Rebel & Johan, Sofia & Schweizer, Denis, 2021. "Corporate failures: Declines, collapses, and scandals," Journal of Corporate Finance, Elsevier, vol. 67(C).
    16. Basu, Shubhabrata & Pereira, Vijay & Sinha, Paresha & Malik, Ashish & Moovendhan, V., 2022. "Esoteric governance mechanism and collective brand equity creation in confederated organizations: Evidence from an emerging economy," Journal of Business Research, Elsevier, vol. 149(C), pages 217-230.
    17. Chen, Shenglan & Lin, Bingxuan & Lu, Rui & Ma, Hui, 2016. "Pay for accounting performance and R&D investment: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 44(C), pages 142-153.
    18. Murat Celik & Xu Tian, 2018. "Corporate Governance, Managerial Compensation, and Disruptive Innovations," 2018 Meeting Papers 590, Society for Economic Dynamics.
    19. Loyola, Gino & Portilla, Yolanda, 2014. "Reward for failure and executive compensation in institutional investors," Finance Research Letters, Elsevier, vol. 11(4), pages 349-361.
    20. Kong, Dongmin & Zhang, Bohui & Zhang, Jian, 2022. "Higher education and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 72(C).
    21. Michael Gibbs & Susanne Neckermann & Christoph Siemroth, 2017. "A Field Experiment in Motivating Employee Ideas," The Review of Economics and Statistics, MIT Press, vol. 99(4), pages 577-590, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:8:y:2016:i:5:p:27-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.