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An Evaluation of the Impact of Remuneration on Employee Attitude and Performance in Organizations

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  • Mohammad Nashwan Alwaki

Abstract

Everyone works for rewards, either in the form of pre-determined salaries, wages or some other benefits or any bonuses and remunerations for certain performance. Individuals seek for being compensated fairly and are only satisfied if they get the expected rewards resulting for their performance. Thus, current study investigates whether remuneration influences employees’ performance through influencing employees’ attitudes. Current study proposes that remuneration influences employees’ performance while employees’ attitude mediates the relationship between these two. A sample of 200 respondents from listed companies of Amman stock exchange is studied and implementing structural equation modeling it is found that in manufacturing organizations remuneration significantly influences employees’ attitude that ultimately influences their performance. Hence, remuneration has significant influence on employees ‘performance but by influencing their attitudes towards their jobs.

Suggested Citation

  • Mohammad Nashwan Alwaki, 2018. "An Evaluation of the Impact of Remuneration on Employee Attitude and Performance in Organizations," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(7), pages 410-420, July.
  • Handle: RePEc:hur:ijarbs:v:8:y:2018:i:7:p:410-420
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    References listed on IDEAS

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    1. van Knippenberg, D.L. & van Dick, R. & Tavares, S., 2005. "Social Identity and Social Exchange: Identification, Support, and Withdrawal from the Job," ERIM Report Series Research in Management ERS-2005-093-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.
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