Relevant Theoretical Models: Compensation And Benefits And Job Satisfaction

790 Words2 Pages
bulb-icon

Recommended: literature review on employee engagement

2.2 Review of Relevant Theoretical Models

2.2.1 Compensation and Benefits and Job Satisfaction
Theory that has been used is expectancy theory. It related the compensation and benefits with job performances which stress on expected rewards. This theory veiled the increment in rewards will affect job performance increases. Another theory is equity theory, it measures perceived result from perceived inputs to find out whether the situation is favourable or not. When perceived results are smaller than the effort or inputs that they give, the result will be inequity (Odunlade, 2012).
Based on the past empirical studies, the salary level which is one of the components under the form of compensation has positive and fairly constant impact on the job satisfaction (Tremblay, Sire, &Pelchat, 1998). Moreover, type of payment systems has been examined by applying direct effects models in previous studies. The previous studies are using different sample of 2336 employees in a big public research organization, respondents from the 1988 wave of the US National Longitudinal Study of Youth and respondents from 9831 different in United Kingdom. The studies able to determine that properly design of levels of pay based on employees performance have increased job satisfaction (Ismail et al, 2011). Based on the means, standard deviation and correlation for compensation as a dimension for job satisfaction, it shows that there is a significant correlations for employer satisfaction through compensation (r = -0.42, p < 0.01) (Rice, 2009).
2.2.2 Employee Engagement and Job Satisfaction
Engagement is the situation of emotional and intellectual satisfaction to an organisation or team producing behaviour that will help fulfil an organisation’s promises...

... middle of paper ...

...raham, 2012).
From the research, working environment was found that it can be influencing by the external factors which include climate (humidity, temperature, meteorological conditions). (Bakotić, 2013). This may bring a certain effect of employee job satisfaction. For example profitability and productivity of the company will reduce.
Besides that, the employee motivation level might be decreasing if the work place is in a bad condition. Therefore, it may affect the employee job satisfaction negatively. (Wadhwa, Verghese,&Wadhwa, 2011). The previous studies mention that the internal quality of a working environment contributes most to the employee satisfaction. Internal quality refers to that feelings, benefits and pay that the employee has towards the job. (Heskett,1997).
2.3 Proposed Theoretical/ Conceptual Framework
Independent Variable/Dependent Variable

Show More
Related

  • Maslow's Hierarchical Of Role Theory: A Case Study Of Job Satisfaction And Motivation

    2185 Words  | 5 Pages

    The job satisfaction has a direct linkage between the employees’ productivity, absenteeism, self motivation, sometimes psychology and physical ability. The emotion state of individual is affected by their interactions within the work environment. There are two types of satisfaction, first one is global job satisfaction or overall felling of a employees on the job another one is facet satisfaction which means felling on job aspects such salary, benefits quality of relationship with co-workers or superior.

    Read More

  • Disney Compensation Analysis

    714 Words  | 2 Pages

    The above examples of pay show that the more skills, experience employees are with the organization the more they are compensated. Organizations would benefit by utilizing the same practice’s Disney extends to their workforces. For those businesses whose primary purpose of their plan is to only meet compliance requirements could greatly benefit by developing a comprehensive benefit plan. This could help increase their return on investment. The value I believe a business may gain from Disney’s compensation plan is to appeal to competent workers, to maintain those workers, and to motivate workers to direct their energies towards achieving the goals of the organization. Companies can set up policies to conduct a market study on a regular basis to implement a real performance appraisal system and then work on retaining good employees and elimination of poor performing workers. By following Disney’s lead of in obtaining those who best fit their company’s culture and supporting the company’s Mission. To guarantee that the pay structure is externally competitive, a pay survey should be shown. The results of a survey to be valid, the market pay data must be from the relevant labor market for each benchmark job. I would advise that a survey of regional and global pay data should be collected from the company, because for example, most of the office support, HR and operations jobs will be filled by local applicants. A job analysis is the procedure of reviewing jobs in an alike business. The result of this process is a job description “that includes the job title, a summary of the job tasks, a list of the essential tasks and responsibilities, and a description of the work context “(Burke, 2008). A job description consists of the knowledge, skills and aptitudes necessary to do the job. A job evaluation is the process of adjudicating the comparative value of job within a company

    Read More

  • What is the Value that Human Resource Management Adds to an Organization

    926 Words  | 2 Pages

    Compensation is related with employee’s financial need and demand. High compensation means high-KSA employees. Higher compensation helps retain talent. Now it is competitive world, if skilled employee quit his /her job then he can get a good job within short time. Before joining any organization every employee think about their compensation to choose the job. Compensation level is thus among the most important dynamics affecting job choice. Finally as a good employees they have to think about compensation to retain higher quality employees.

    Read More

  • The Importance Of Employee Compensation

    1727 Words  | 4 Pages

    With human resource management becoming the most comprehensive subject when it comes to the management of people in organizations, it is imperative to reiterate the importance of worker compensation in the confines of managing labor. The chief purpose of this term paper is to analyze the Soergel (1) report on the state of employee compensation in the U.S. Based on the report that was presented by the Labor Department of the United States; there were not changes in the patterns of employee compensation in the country. Therefore, it is quite necessary to explain the trend and the implication for work input and the upcoming performance of the labor market as a whole.

    Read More

  • Employee Motivation And Motivation

    1015 Words  | 3 Pages

    An employee’s productivity and motivation derives from many different aspects. Some individuals have a higher productivity in the work place simply because they are motivated by the place itself, probably they feel comfortable in the place of work or they are treated with the upmost respect and love their jobs. Others in the other hand are more influenced by the liquid compensation, these will perform a better role and become more productive when there is more money involved. In this research paper we will learn whether employees are motivated by appraisals or by money, I will research if an employee works harder when there is a bonus or a raise at hand, or if the dedication and the hard work that they bring into the company is because they love what they do and they just need to be recognized, perhaps they just need the push and the motivation from their employers to become more

    Read More

  • Motivation and Productivity Related to Job Satisfaction

    2147 Words  | 5 Pages

    The relationship between job satisfaction, motivation, and efficiency or productivity is very important in the business industry as well as in personal life. Long term research has found that the single greatest predictor of longevity is work satisfaction. Work is one third to one half of a persons' lifetime, and if frustrated the mental and physical effects are very costly. Job characteristics including skill variety, task identity, and task significance lead to psychological conditions in which in turn leads to increased motivation, performance and job satisfaction. It is important to investigate this area in order to determine how much of an effect does overall job satisfaction, motivation and productivity have on each other. It is also important to research the relationship between job satisfaction because it can assist businesses in designing and manufacturing an environment to maximize productivity and efficiency while keeping their employees satisfied. Finally, it is significant to study because it can help people better understand what job will best suit them to be motivated and satisfied while making a difference in the productivity level.

    Read More

  • Managing Compensation Systems

    1006 Words  | 3 Pages

    Job-based pay systems award raises and bonuses based on how well employees perform their jobs. This includes merit, or pay-for-performance raises, and incentive pay.

    Read More

  • Reward Management

    3615 Words  | 8 Pages

    ...e “ The reward system of the organisation guides the actions that generally have the greatest impact on the motivation and performance of individual employees”. Similarly, Wah (2000) argues that companies which treat their high-performing employees significantly better than those that don't are the best-performing companies around and they reside in the upper quartile of shareholder returns. In addition Lawler (as cited in, Readings In Contemporary Employment Relations, 1998) states that if all the psychological rewards are removed employees will grudgingly remain at work, however if all the financial rewards are removed they would most likely leave.

    Read More

  • Tourism and Hospitality Industry: PeoplePower

    1758 Words  | 4 Pages

    It is important for any company’s management to be concerned with the performance of its employees. The employees past performance also determines future performance thus the need for continuous enhancement of the employees performance. This means that, employers have the role of ensuring that they improve the performance of their employees, and this is greatly impacted on the compensation system that the company uses on all its employees. According to Sturman (2006), money is the overall incentive value that most of the employers give to their employees, but it is also important to note that the employees can improve in their performance if the management motivates them by linking pay to performance. This mean...

    Read More

  • The Causes Of Employee Satisfaction In The Organization

    1004 Words  | 3 Pages

    Low employee morale can be caused by a variety of factors which include attitude and perception towards the job, perceived job insecurity, amount of compensation and benefits, the work environment, fellow team members, managers and the organization

    Read More

  • Reward Systems in Business

    1488 Words  | 3 Pages

    Werner, S. and Ward S. (2004) ‘Recent Compensation Research: an Eclectic Review’, Human Resource Management Review, 14 (2), pp. 201 – 227.

    Read More

  • Is Money Really an Effective Motivator?

    1057 Words  | 3 Pages

    Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.

    Read More

  • Evolution of Reward Systems

    876 Words  | 2 Pages

    Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).

    Read More

  • Improving Job Satisfaction and Productivity

    1402 Words  | 3 Pages

    In many organisations, managers and bosses have found it a struggle implementing successful strategies to improve job satisfaction and productivity among its employees. While dealing with unproductive, unmotivated and unsatisfied employees, there is an increased risk for turnover, which can be prevented. The risk of high turnover is a problem to workplaces as turnover has been proven to ‘take its toll’ on productivity as it disrupts current projects and increases workloads for other employees. It also has a negative impact on team cohesion (Patrick and Sonia, 2012). Job satisfaction is one’s general attitude to the job, and higher the job satisfaction, the more likely he/she will hold a positive attitude towards their job (De Menzes, 2011). De Menzes (2011) believes that employees who are satisfied with their jobs are likely to be more committed to their organisation and be more productive. People are significantly more productive when they are content and achieving individual and organisational goals are able to be fulfilled in a work environment where employees feel happy and motivated. Interventions which can be used to improve job satisfaction and productivity to decrease rates of turnover and unmotivated employees include an increase in workplace training, as well as performance pay.

    Read More

  • What Is The Conclusion Of Job Satisfaction

    1959 Words  | 4 Pages

    In conclusion, the of motivation factors have a strong influence on job satisfaction resulting in any positive feelings that accompany human, who is trying to keep this state as long as possible, which leads to further efforts.

    Read More

More about Relevant Theoretical Models: Compensation And Benefits And Job Satisfaction

Open Document