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

  • Employee Engagement Essay

    1993 Words  | 4 Pages

    Kahn (1990) believes engagement means to be psychologically present when performing an organizational role and it is shown physically, cognitively and emotionally as part of the role performance. He believes that individuals who are engaged keep themselves and their role aligned and it is demonstrated by:

    Read More

  • Job Satisfaction in Canada

    1745 Words  | 4 Pages

    Job satisfaction is an important issue to address within a work force because it ensures that the employees’ care and value is considered. If the company puts effort into making their employees happy with their work, then this will produce positive outcomes. This includes having more people wanting to work for the company, the employees will want to stay longer, increased productivity and the company will gain an exceptional reputation. When employee satisfaction is not addressed, the ...

    Read More

  • Sick Leave Case Study

    1477 Words  | 3 Pages

    Employee engagement is the investment of physical, cognitive and emotional energy and their full deployment of themselves into work roles or tasks (Kahn, 1990). Employee engagement is key to ensure employees are inspired and enthusiastic about their work. Wi...

    Read More

  • Job Satisfaction Essay

    1426 Words  | 3 Pages

    Great post Chad on job satisfaction. I can agree with you that while pay and benefits could have a great impact on job satisfaction, being satisfied in the workplace is not always directly tied to money. In my post, I discussed job dissatisfaction, and in my personal situation I felt that I would have been more satisfied at my job if I felt my voice wasn’t being heard and disinterest in my professional development. I no longer was satisfied with my job because the company lost interest in caring for their employees as the company grew. However, researcher Gul(2015), believes that there is a relationship with development of an employee and expansion of a company in that in order to grow successful , a company must make time to develop an effective

    Read More

  • Analysis Of Bruce Tuckman's Four Stages Of Group Development

    826 Words  | 2 Pages

    A great work environment is essential to employee morale. When there is low morale there is a lapse in productivity. The main objective of business is higher productivity which equates to higher profits.

    Read More

  • Employee Engagement And Disengagement

    1055 Words  | 3 Pages

    Employee engagement, a term devised by Gallup research group, is viewed as an important management tool for any company who wants to be an effective and productive organization. Researches have shown that employee can contribute positively to the organization vision and goal when a company engage them effectively. The employee will also feel more passionate about their work and have a sense of belonging.

    Read More

  • Employee Engagement

    2088 Words  | 5 Pages

    The employee engagement has become a hot topic of discussion in the corporate world. There is no single accepted definition of engagement or recognised approach for measuring or raising it. HRM Practitioners have involved in quite a lot of study to understand employee engagement and its impact on the performance of the organisation. According to them, employee engagement is a level of commitment and involvement of employees towards their organisation and its value. An engaged employee works with his/her colleagues to improve their productivity within their job, for the ultimate benefit of the organisation.

    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

  • The Importance of Job Satisfaction in Business Management

    2039 Words  | 5 Pages

    It is well established reality that organisations in the world today can no longer survive without focusing on their employees. If they have to be at the competitive edge they have to invest in human resource, and placing their employees on top priority. This notion has lead to the strategies that, most organisations are pursuing through employee management. To achieve the optimum performance from employees organisations must motivate their employees, and have to engage them in activities that will benefit and help employees in achieving their predetermined goals and objectives. In order to achieve this, it is imperative for managers to set in motion work conditions that will help employees to achieve satisfaction of their job, low turnover and absenteeism rate and promoting the environment that promotes the organizational commitments and organizational citizenship behavior. Job satisfaction has been identified as a major requirement for organisations which aim to achieve excellence in their operations. Armstrong (2003) refers to job satisfaction as the attributes and feelings people have about their work. By extension, job satisfaction will mean positive or favourable attitudes towards one’s job whilst a negative or unfavourable attitude indicates job dissatisfaction.

    Read More

  • Essay On Employee Engagement

    615 Words  | 2 Pages

    Here are some figures that display how Employee engagement practices have bolstered up the efficiency and productivity of the employees and in return have augmented the profits of the companies. According to a new meta-analysis that was conducted by the Gallup organisation amongst 1.4 million employees, the organisations that focus on employee engagement practices to a large extent have reported 22% increase in productivity. These practices even impr...

    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

  • Compensation And Benefit System Essay

    962 Words  | 2 Pages

    Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and implementation of an effective compensation and benefit system. Assuming the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by my city’s largest employer, Holland Enterprises, this paper presents a revised compensation and benefit strategy that suits the firm. This proposal describes how an effective compensation and benefit system could contribute to organizational effectiveness in the firm, the principle components of the revised compensation and benefit system for the

    Read More

  • Job Satisfaction and Employee Retention

    2178 Words  | 5 Pages

    Employee satisfaction is undoubtedly the best predictor of employee retention. A job environment consisting of good working relationships usually fosters employee satisfaction. Employees feel motivated as they believe that the company is appreciating their service and commitment. Job satisfaction results in employee retention. Employee retention could be defined as the length of time employees stay with the organization.

    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

  • Effective Reward Systems in the Workplace

    1501 Words  | 4 Pages

    Reward systems have been evolving and growing throughout the years, but there are many types that have always been there. Base pay is the most common, which is an employee’s base wages and salary that they are paid on hourly, weekly, monthly, or annually (Luthans, 2011, p.94). Merit based pay is another type of incentive, which rewards and motivates an individual to perform their jobs to the standards of their employers. According to the text Organizational Behaviors, by Fred Luthans, there are three other options for paying an employee for their performance: individual incentives pay plans, using of bonuses, and the use of stock options. Individual based pay plans are based on the employees output and/or quality. Some organizations use bonuses as incentives to their employees. These are offered sometimes as op...

    Read More

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

Open Document