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Pay Perceptions and Their Relationships with Cooperation, Commitment, and Intent to Quit

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  • John Shields
  • Dow Scott
  • James W. Bishop
  • Paulo Goelzer

Abstract

This study examines how perceived in-role (or horizontal) pay differences and understanding of the pay system influence three key performance-related attitudes, namely, organizational commitment, willingness to cooperate, and intent to quit, both directly and indirectly via perceived pay fairness. Toward this end, we apply structural equation modeling to self-report survey-based evidence collected from full-time employees in a major United States supermarket licensing group (n = 159). As expected, perception of wide pay differences was negatively related to pay fairness, while pay understanding was positively related to it. Pay fairness played a pivotal mediating role in strengthening organizational commitment and reducing intent to quit. Cooperation was also influenced directly and negatively by pay differences. Contrary to predictions, however, we found that pay fairness did not mediate the relationship between pay differences and cooperation. Implications for compensation theory and practice are considered.

Suggested Citation

  • John Shields & Dow Scott & James W. Bishop & Paulo Goelzer, 2012. "Pay Perceptions and Their Relationships with Cooperation, Commitment, and Intent to Quit," International Studies of Management & Organization, Taylor & Francis Journals, vol. 42(1), pages 68-86, January.
  • Handle: RePEc:taf:mimoxx:v:42:y:2012:i:1:p:68-86
    DOI: 10.2753/IMO0020-8825420104
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    Cited by:

    1. Marinah Awang & Ramlee Ismail & Suriani Abdul Hamid & Hamidah Yusof, 2016. "Intention to Leave among Self-initiated Academic Expatriate in Public Higher Education Institution," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 142-158, November.
    2. Jacek GRODZICKI, 2020. "Pay Transparency From A Young Employee'S Perspective In Poland," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(22), pages 47-52.
    3. Hyungjo Hur & Kwang Bin Bae, 2021. "Does Discrepancy Between Job Choice Motivation and Satisfaction and Education–Job Mismatch Affect Turnover Intention of Nonprofit Employees?," Public Organization Review, Springer, vol. 21(3), pages 577-593, September.

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