The impacts of human resource management practices and pay inequality on workers' job satisfaction
AbstractIn this paper we investigate the relationship between Human Resource Management (HRM) practices and workers' overall job satisfaction and their satisfaction with pay. To investigate these issues we use British data from the 'Changing Employment Relationships, Employment Contracts and the Future of Work Survey' and the 'Workplace Employment Relations Survey'. After controlling for personal, job and firm characteristics, it is shown that several HRM practices raise workers overall job satisfaction and their satisfaction with pay, but these effects are only significant for non-union members. Satisfaction with pay is higher where performance-related pay and seniority-based reward systems are in place. A pay structure that is perceived to be unequal is associated with a substantial reduction in both non-union members' overall job satisfaction and their satisfaction with pay. Although HRM practices can raise worker job satisfaction, if workplace pay inequality widens as a consequence then non-union members may experience reduced job satisfaction.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 542602.
Date of creation: 2004
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey B. Arthur, 1992. "The link between business strategy and industrial relations systems in American steel minimills," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 488-506, April.
- Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
- John Addison & Stanley Siebert & Joachim Wagner & Xiangdong Wei, 2000. "Worker Participation and Firm Performance: Evidence from Germany and Britain," British Journal of Industrial Relations, London School of Economics, vol. 38(1), pages 7-48, 03.
- Andrew E. Clark and Andrew J. Oswald, .
"Satisfaction and Comparison Income,"
Economics Discussion Papers
419, University of Essex, Department of Economics.
- David G. Blanchflower & Andrew J. Oswald, 2000.
"Well-Being Over Time in Britain and the USA,"
NBER Working Papers
7487, National Bureau of Economic Research, Inc.
- Blanchflower, David G. & Oswald, Andrew J., 2001. "Well-Being Over Time in Britain and the USA," The Warwick Economics Research Paper Series (TWERPS) 616, University of Warwick, Department of Economics.
- Peter B. Doeringer & Christine Evans-Klock & David G. Terkla, 1998. "Hybrids or hodgepodges? Workplace practices of Japanese and domestic startups in the United States," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 171-186, January.
- Oswald, A.J., 1997.
"Happiness and Economic Performance,"
18, Centre for Economic Performance & Institute of Economics.
- Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics.
- Saziye Gazioglu & Aysit Tansel, 2006.
"Job satisfaction in Britain: individual and job related factors,"
Taylor & Francis Journals, vol. 38(10), pages 1163-1171.
- Saziye Gazioglu & Aysit Tansel, 2003. "Job Satisfaction in Britain: Individual and Job Related Factors," ERC Working Papers 0303, ERC - Economic Research Center, Middle East Technical University, revised Apr 2003.
- Booth, Alison L & Frank, Jeff, 1999. "Earnings, Productivity, and Performance-Related Pay," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 447-63, July.
- Edward P. Lazear, 2000.
"Performance Pay and Productivity,"
American Economic Review,
American Economic Association, vol. 90(5), pages 1346-1361, December.
- David Neumark & Peter Cappelli, 1999.
"Do "High Performance" Work Practices Improve Establishment-Level Outcomes?,"
NBER Working Papers
7374, National Bureau of Economic Research, Inc.
- Peter Cappelli & David Neumark, 2001. "Do "high-performance" work practices improve establishment-level outcomes?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(4), pages 737-775, July.
- P. B. Beaumont & R. I. D. Harris, 2003. "Internal Wage Structures and Organizational Performance," British Journal of Industrial Relations, London School of Economics, vol. 41(1), pages 53-70, 03.
- Fredrik Heyman, 2005.
"Pay inequality and firm performance: evidence from matched employer-employee data,"
Taylor & Francis Journals, vol. 37(11), pages 1313-1327.
- Heyman, Fredrik, 2002. "Pay Inequality and Firm Performance: Evidence from Matched Employer-Employee Data," Working Paper Series 186, Trade Union Institute for Economic Research.
- Thomas Bailey & Peter Berg & Carola Sandy, 2001. "The Effect of high-performance work practices on employee earnings in the steel, apparel, and medical electronics and imaging industries," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(2), pages 525-543, March.
- Boselie, J.P.E.F. & Wiele, A. van der, 2001. "Employee Perceptions of HRM and TQM and the Effects on Satisfaction and INtention to Leave," Research Paper ERS-2001-42-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- John MacDuffie, 1995. "Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 197-221, January.
- John T. Addison & Clive R. Belfield, 2001. "Updating the Determinants of Firm Performance: Estimation using the 1998 UK Workplace Employee Relations Survey," British Journal of Industrial Relations, London School of Economics, vol. 39(3), pages 341-366, 09.
- Batt, R. & Applebaum, E., 1995. "Worker Participation in Diverse Settings: Does the Form Affect the Outcome, and If So, Who Benefits?," Papers 95-06, Cornell - Center for Advanced Human Resource Studies.
- J Taylor & Steve Bradley & A N Nguyen, 2003. "Job autonomy and job satisfaction: new evidence," Working Papers 541528, Lancaster University Management School, Economics Department.
- Andrew E. Clark, 2005.
"Your Money or Your Life: Changing Job Quality in OECD Countries,"
British Journal of Industrial Relations,
London School of Economics, vol. 43(3), pages 377-400, 09.
- Clark, Andrew E., 2005. "Your money or your life : changing job quality in OECD Countries," CEPREMAP Working Papers (Docweb) 0511, CEPREMAP.
- Clark, Andrew E., 2005. "Your Money or Your Life: Changing Job Quality in OECD Countries," IZA Discussion Papers 1610, Institute for the Study of Labor (IZA).
- Andrew E. Clark, 2004. "Your money or your life: Changing job quality in OECD countries," DELTA Working Papers 2004-31, DELTA (Ecole normale supérieure).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Evans).
If references are entirely missing, you can add them using this form.