IDEAS home Printed from https://ideas.repec.org/a/aio/manmar/vixy2011i1p77-88.html

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
    as

    Download full text from publisher

    File URL: http://manmar.ucv.ro/Arhiva%20articole/2011/Volume%20IX%2C%20issue%201-2011/7_Malaezia%20FFF.pdf
    Download Restriction: no
    ---><---

    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. 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.
    3. 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.
    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. Azman ISMAIL & Mohammad Fuad ZAIDI & Aimi ANUAR, 2015. "Administrator’S Role In Performance Based Reward As A Determinant Of Employee Outcomes," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 92-110, May.
    2. Dulebohn, James H. & Conlon, Donald E. & Sarinopoulos, Issidoros & Davison, Robert B. & McNamara, Gerry, 2009. "The biological bases of unfairness: Neuroimaging evidence for the distinctiveness of procedural and distributive justice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 110(2), pages 140-151, November.
    3. DeConinck, James B., 2009. "The effect of leader-member exchange on turnover among retail buyers," Journal of Business Research, Elsevier, vol. 62(11), pages 1081-1086, November.
    4. Cueto, Begona & Pruneda, Gabriel, 2015. "Job Satisfaction of Wage and Self-Employed workers. Do preferences make a difference?," MPRA Paper 65432, University Library of Munich, Germany.
    5. Konstantinos Pouliakas & Ioannis Theodossiou, 2005. "Socio-Economic Differences in the Perceived Quality of High and Low-Paid Jobs in Europe," Labor and Demography 0506002, University Library of Munich, Germany.
    6. Ambrose, Maureen & Hess, Ronald L. & Ganesan, Shankar, 2007. "The relationship between justice and attitudes: An examination of justice effects on event and system-related attitudes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(1), pages 21-36, May.
    7. Baldauf, Artur & Cravens, David W. & Grant, Kegn, 2002. "Consequences of sales management control in field sales organizations: a cross-national perspective," International Business Review, Elsevier, vol. 11(5), pages 577-609, October.
    8. C Green & J S Heywood, 2007. "Performance pay, sorting and the dimensions of job satisfaction," Working Papers 584041, Lancaster University Management School, Economics Department.
    9. Konstantinos Pouliakas, 2010. "Pay Enough, Don't Pay Too Much or Don't Pay at All? The Impact of Bonus Intensity on Job Satisfaction," Kyklos, Wiley Blackwell, vol. 63(4), pages 597-626, November.
    10. repec:lan:wpaper:2928 is not listed on IDEAS
    11. Qi Wei & Chris Rowley, 2008. "Changing patterns of rewards in Asia: a literature review," Asia Pacific Business Review, Taylor & Francis Journals, vol. 15(4), pages 489-506, September.
    12. van Knippenberg, D.L. & de Cremer, D. & van Knippenberg, B., 2006. "Leadership and Fairness: The State of the Art," ERIM Report Series Research in Management ERS-2006-073-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 University Rotterdam.
    13. Pouliakas, Konstantinos & Theodossiou, Ioannis, 2005. "Socio-Economic Differences in the Satisfaction of High-Pay and Low-Pay Jobs in Europe," MPRA Paper 16733, University Library of Munich, Germany, revised 10 Aug 2009.
    14. Mari Kangasniemi, 2012. "Job satisfaction and wage dispersion," Working Papers 278, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    15. Snežana Lekić & Jelena Vapa-Tankosić & Slavica Mandić & Jasmina Rajaković-Mijailović & Nemanja Lekić & Jelena Mijailović, 2020. "Analysis of the Quality of the Employee–Bank Relationship in Urban and Rural Areas," Sustainability, MDPI, vol. 12(13), pages 1-22, July.
    16. Federica Origo & Laura Pagani, 2006. "Is Work Flexibility a Stairway to Heaven? The Story Told by Job Satisfaction in Europ," Working Papers 97, University of Milano-Bicocca, Department of Economics, revised Jun 2006.
    17. Pouliakas, Konstantinos, 2008. "Pay enough, don’t pay too much or don’t pay at all? An empirical study of the non-monotonic impact of incentives on job satisfaction," MPRA Paper 10031, University Library of Munich, Germany.
    18. Konstantinos POULIAKAS & Ioannis THEODOSSIOU, 2010. "Differences in the job satisfaction of high-paid and low-paid workers across Europe," International Labour Review, International Labour Organization, vol. 149(1), pages 1-29, March.
    19. Cornelissen, Thomas & Heywood, John S. & Jirjahn, Uwe, 2011. "Performance pay, risk attitudes and job satisfaction," Labour Economics, Elsevier, vol. 18(2), pages 229-239, April.
    20. Pouliakas, Konstantinos & Theodossiou, Ioannis, 2009. "Confronting Objections to Performance Pay: A Study of the Impact of Individual and Gain-sharing Incentives on the Job Satisfaction of British Employees," MPRA Paper 14244, University Library of Munich, Germany.
    21. Maria Rouziou & Willy Bolander & Karen Peesker & Pia Hautamäki & Deva Rangarajan & Manoshi Samaraweera & Jorge Bullemore & Michel Klein & Raj Agnihotri & Karina Burgdorff Jensen & Danny Pimentel Claro, 2025. "Global Events Demand Global Data : COVID-19 Crisis Responses and the Future of Selling and Sales Management around the Globe," Post-Print hal-04717619, HAL.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

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

    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:aio:manmar:v:ix:y:2011:i:1:p:77-88. 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: Catalin Barbu (email available below). General contact details of provider: https://edirc.repec.org/data/fecraro.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.