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Administrator’S Role In Performance Based Reward As A Determinant Of Employee Outcomes

Author

Listed:
  • Azman ISMAIL

    (Universiti Kebangsaan Malaysia)

  • Mohammad Fuad ZAIDI

    (Universiti Kebangsaan Malaysia)

  • Aimi ANUAR

    (Universiti Kebangsaan Malaysia)

Abstract

According to the recent literature pertaining on workplace compensation program, administrators often play two important roles in planning and implementing performance based reward: communication and performance appraisal. Recent studies in this field highlights that the ability of administrators to appropriately communicate pay information and appraise employee performance may have a significant impact on employee outcomes, especially job satisfaction and organizational commitment. Therefore, this study was conducted to assess the relationship between administrator’s role in performance based reward and employee outcomes using self-administered questionnaires collected from employees at a district council in Malaysia. The outcomes of the SmartPLS path model analysis showed that pay communication does not act as an important determinant of job satisfaction, but performance appraisal does act as an important determinant of job satisfaction. Conversely, both pay communication and performance appraisal act as important determinants of organizational commitment. Hence, discussion, implications and conclusion are elaborated.

Suggested Citation

  • 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.
  • Handle: RePEc:aio:manmar:v:xiii:y:2015:i:1:p:92-110
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    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, EconWPA.
    2. Dong-One Kim, 1999. "Determinants of the Survival of Gainsharing Programs," ILR Review, Cornell University, ILR School, vol. 53(1), pages 21-42, October.
    3. Keith A. Bender, 2003. "Examining Equality between Public- and Private-Sector Wage Distributions," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 62-79, January.
    4. 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.
    5. N. Lesca, 2010. "Introduction," Post-Print halshs-00640602, HAL.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Pay communication; performance appraisal; job satisfaction; organizational commitment;

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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