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Article

Erin M. Jackson, Michael E. Rossi, E. Rickamer Hoover and Russell E. Johnson

The purpose of this paper is to examine employee perceptions of fairness and work morale as mediators of the relationship between leader reward behavior and employee behavior.

Abstract

Purpose

The purpose of this paper is to examine employee perceptions of fairness and work morale as mediators of the relationship between leader reward behavior and employee behavior.

Design/methodology/approach

A matrix of meta‐analytic estimates containing the focal variables (leader reward behavior, fairness, morale, and employee behavior) was constructed following a literature review of published studies. This matrix was then analyzed using structural equation modeling to test a series of nested models.

Findings

Leader reward behavior is positively related to higher task performance and organizational citizenship behavior, and fewer intentions to turnover. These relationships are mediated by employees’ perceptions of fairness and work morale.

Research limitations/implications

The paper extends the leadership literature by identifying two mechanisms (viz., fairness and morale) through which leader reward behavior relates to employee behavior. Possible limitations are the drawbacks associated with meta‐analysis (e.g. inability to make causal inferences).

Practical implications

Rewarding subordinate performance alone is not sufficient to increase task performance and organizational citizenship behavior and decrease turnover intentions. Instead, managers must ensure that their contingent reward behaviors are seen as fair by employees in order to have favorable effects.

Originality/value

To date, research on possible mediators of the effects of leader reward behavior has been scarce.

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Article

Alka Rai, Piyali Ghosh and Tanusree Dutta

The purpose of this paper is to explore how total rewards might influence intention to stay among employees of private sector banks in India. A moderated-mediation…

Abstract

Purpose

The purpose of this paper is to explore how total rewards might influence intention to stay among employees of private sector banks in India. A moderated-mediation mechanism is hypothesized, in which a system of total rewards leads to intention to stay via engagement and organizational justice (OJ) moderates the linkage of total rewards with engagement.

Design/methodology/approach

Perception of employees about the constructs considered has been assessed by a survey, using a structured questionnaire. Employees of private banks located in the State of Uttar Pradesh were the population for this study. A total of 17 branches of 7 private banks were covered, and the number of valid responses was 761. Hypotheses testing has been done with SPSS PROCESS command.

Findings

Hypotheses proposing mediation (engagement as mediator between total rewards and intention to stay), moderation (OJ as moderator between total rewards and engagement) and moderated mediation have found support.

Practical implications

Results obtained direct us to infer that in addition to the amount or value of any reward, aspects of OJ, such as equity and fairness in allocation of such reward and transparency in the procedure followed, are likely to influence the effectiveness of total rewards practices in engaging employees and motivating them to stay with their present employer.

Originality/value

This study adds to total rewards literature by highlighting how a total rewards system can lead to engagement, and consequently to employees’ intention to stay. Results establish OJ as an important attribute to any total rewards package to make the latter more valuable and effective.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 7 no. 3
Type: Research Article
ISSN: 2049-3983

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