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

Listed author(s):
  • Azman ISMAIL

    (Universiti Kebangsaan Malaysia)

  • Mohammad Fuad ZAIDI

    (Universiti Kebangsaan Malaysia)

  • Aimi ANUAR

    (Universiti Kebangsaan Malaysia)

Registered author(s):

    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.

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    Article provided by University of Craiova, Faculty of Economics and Business Administration in its journal Management and Marketing Journal.

    Volume (Year): XIII (2015)
    Issue (Month): 1 (May)
    Pages: 92-110

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    Handle: RePEc:aio:manmar:v:xiii:y:2015:i:1:p:92-110
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    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.
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