IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/96531.html
   My bibliography  Save this paper

Organizational Approach for the Design of a Comprehensive Compensation Package for Bank Employees in Afghanistan A Strategy for Acquiring and Retaining Talent

Author

Listed:
  • Mirza, Aimal

Abstract

Purpose: To investigate the phenomena that could be attributed to the absence of a comprehensive compensation package in Afghan banks. This study aims to devise strategies for the design of a pay package that will improve employee retention and reduce the turnover rate in this industry. Findings: The study suggests that an effective pay package could lead to employee loyalty, but this requires the development of a sound, strategic approach that would include the pay-mix design, market positioning and choice of pay policy. The major findings of this study show that there are no major disagreements between employees and administrators over most of the components of the pay packages offered. However, considering how the data reflects on the small changes desired, this study recommends that banks offer a base salary that is relatively larger than the other components of the pay package. It also recommends that banks participate in employees’ pension funds, pay gratuity and offer performance-based pay that is based on a well-defined performance-appraisal system. Methodology: Primary and secondary data were collected from 11 Kabul-based financial institutions, where a total number of 92 employees participated in this study. A one-way ANOVA regression and descriptive statistics were utilized to analyse the data. Practical implications: This study has strong policy implications for a modern, sound and equitable approach to human resource management in the Afghanistan financial sector that could lead to fostering and retaining talent. Originality: The topic is first in its kind to be researched in the Afghanistan context.

Suggested Citation

  • Mirza, Aimal, 2019. "Organizational Approach for the Design of a Comprehensive Compensation Package for Bank Employees in Afghanistan A Strategy for Acquiring and Retaining Talent," MPRA Paper 96531, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96531
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/96531/1/MPRA_paper_96531.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William D. Guth & Ian C. Macmillan, 1986. "Strategy implementation versus middle management self‐interest," Strategic Management Journal, Wiley Blackwell, vol. 7(4), pages 313-327, July.
    2. David B. Balkin & Luis R. Gomez‐Mejia, 1990. "Matching compensation and organizational strategies," Strategic Management Journal, Wiley Blackwell, vol. 11(2), pages 153-169, February.
    3. Craig Galbraith & Dan Schendel, 1983. "An empirical analysis of strategy types," Strategic Management Journal, Wiley Blackwell, vol. 4(2), pages 153-173, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. LINA ELSIE MORAA & Dr. Muthoni Mainah, 2023. "Impact of Gender-Inclusive Labor Policies on Women’s Employment in Isiolo County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 1441-1461, June.

    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. Christian Grund & Tanja Hofmann, 2019. "The dispersion of bonus payments within and between firms," Journal of Business Economics, Springer, vol. 89(4), pages 417-445, June.
    2. Rasim Serdar Kurdoglu & Nüfer Yasin Ateş, 2022. "Arguing to Defeat: Eristic Argumentation and Irrationality in Resolving Moral Concerns," Journal of Business Ethics, Springer, vol. 175(3), pages 519-535, January.
    3. Schul, Patrick L. & Davis, Peter S. & Hartline, Michael D., 1995. "Strategic adaptation to extended rivalry : Effects on organizational performance," Journal of Business Research, Elsevier, vol. 33(2), pages 129-142, June.
    4. Luo, Yadong & Tan, J. Justin, 1998. "A comparison of multinational and domestic firms in an emerging market: A strategic choice perspective," Journal of International Management, Elsevier, vol. 4(1), pages 21-40, July.
    5. Julie Smith David & Yuhchang Hwang & Buck K. W. Pei & J. Hal Reneau, 2002. "The Performance Effects of Congruence Between Product Competitive Strategies and Purchasing Management Design," Management Science, INFORMS, vol. 48(7), pages 866-885, July.
    6. Chrystelle Gaujard, 2008. "An innovative organization in a context of ruptures: a french ict start-up idealtype," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 105-124.
    7. Samir L. Vaz & Anneloes M. L. Raes & Mariano L. M. Heyden, 2022. "Realizing implementation through relational exchanges with top managers: the mediating role of middle managers’ divergent strategic behavior," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(1), pages 81-108, March.
    8. Esther Del Brio & Elida Maia-Ramires & Alberto De Miguel, 2011. "Ownership structure and diversification in a scenario of weak shareholder protection," Applied Economics, Taylor & Francis Journals, vol. 43(29), pages 4537-4547.
    9. Saari Ahmad, 2012. "Crisis - Strategic Management in Public Relation," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(4), pages 173-193, October.
    10. Tawse, Alex & Tabesh, Pooya, 2021. "Strategy implementation: A review and an introductory framework," European Management Journal, Elsevier, vol. 39(1), pages 22-33.
    11. Mansour Al-miman, 2017. "Human Resources Management Practices, Psychological Contract Fulfillment and Organizational Commitment in Deluxe Hotels in Jeddah, Saudi Arabia," International Journal of Psychological Studies, Canadian Center of Science and Education, vol. 9(4), pages 1-94, December.
    12. Manu, Franklyn A. & Sriram, Ven, 1996. "Innovation, marketing strategy, environment, and performance," Journal of Business Research, Elsevier, vol. 35(1), pages 79-91, January.
    13. Lampaki, Antonia & Papadakis, Vassilis, 2018. "The impact of organisational politics and trust in the top management team on strategic decision implementation success: A middle-manager's perspective," European Management Journal, Elsevier, vol. 36(5), pages 627-637.
    14. Vasile DEAC & Cosmin DOBRIN & Mihai VRINCUT, 2018. "What Do Managers Want? Transparency And Obscurity In The Company’S Strategic Management," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(1), pages 462-471, November.
    15. Karube, Masaru & 軽部, 大 & Kato, Toshihiko & 加藤, 俊彦, 2009. "Blind pursuit of strategic goals : an examination of middle managers' strategic orientations in Japanese firms," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 43(1), pages 27-45, October.
    16. Chulmo Koo & Jaeki Song & Yong Jin Kim & Kichan Nam, 2007. "Do e-business strategies matter? The antecedents and relationship with firm performance," Information Systems Frontiers, Springer, vol. 9(2), pages 283-296, July.
    17. Ali Shakir Zaidan & Khai Wah Khaw & Chew XinYing & Alhamzah Alnoor & Yuvaraj Ganesan & Abdullah Mohammed Sadaa, 2023. "Influence of Organizational Contingencies on Financial Performance: Mediating Role of Crisis Management," Central European Business Review, Prague University of Economics and Business, vol. 2023(2), pages 37-59.
    18. Bantel, Karen A., 1998. "Technology-based, "adolescent" firm configurations: strategy identification, context, and performance," Journal of Business Venturing, Elsevier, vol. 13(3), pages 205-230, May.
    19. Katsuhiko Shimizu, 2008. "New Strategy Implementation and Learning: Importance of Consensus," Working Papers 0034, College of Business, University of Texas at San Antonio.
    20. Yan Ling & Zeki Simsek & Michael Lubatkin & John F. Velga, 2008. "Transformational Leadership's Role in Promoting Corporate Entrepreneurship : Examining the CEO - TMT Interface," Post-Print hal-02276697, HAL.

    More about this item

    Keywords

    compensation; pay; employee turnover; organizational performance; Incentives;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

    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:pra:mprapa:96531. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.