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Article
Publication date: 14 August 2007

Nancy E. Day

The paper's purpose is to investigate the relationships between pay communication and referent choice, pay satisfaction and pay equity perceptions.

Abstract

Purpose

The paper's purpose is to investigate the relationships between pay communication and referent choice, pay satisfaction and pay equity perceptions.

Design/methodology/approach

A sample of 149 employed graduate business students from a variety of organizations were surveyed at two different times, first to assess dependent variables (pay satisfaction and pay equity perceptions), and second to measure perceived pay policies.

Findings

Contrary to predictions, increased pay communication was not associated with referent choice, and referent choice was unrelated to pay attitudes. Pay communication was also unassociated with pay satisfaction. However, increased pay communication was found to be negatively related to pay equity perceptions.

Research limitations/implications

A two‐questionnaire survey methodology was designed to minimize the possibility of common method variance. Because few employers communicate about pay, there was restriction of range for this independent variable, perhaps constraining results. However, the use of multiple employers, even in this student population, constitutes a meaningful sample.

Practical implications

Employers should be cautious about what pay information they provide to their employees, since this study suggests that increased pay communication results in lower pay equity perceptions.

Originality/value

Research in this area is extremely limited and thus this paper provides a strong foundation for further investigation.

Details

Personnel Review, vol. 36 no. 5
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 16 August 2011

Nancy E. Day

Although some research shows that positive outcomes occur when workers understand how their pay is determined, little is known about the dynamics of how pay communication

Abstract

Purpose

Although some research shows that positive outcomes occur when workers understand how their pay is determined, little is known about the dynamics of how pay communication affects pay satisfaction. This research proposes that the relationships between pay communication and pay satisfaction exist because justice perceptions mediate them. Pay communication is of particular interest to managers of public sector organizations, where many aspects of the pay system are in the public domain, and without adequate communication, may be easily misunderstood by workers. The purpose of this paper is to discuss these issues.

Design/methodology/approach

The study consists of a sample of 384 employees of a Midwestern public university in the USA who completed two questionnaires. Structural equation modeling is used.

Findings

Pay communication has both direct and mediated relationships with pay satisfaction (satisfaction with pay level, benefits, pay raise, and pay administration). Distributive justice accounts for more variance in all pay satisfaction dimensions than procedural justice. Interpersonal and information justice are essentially unrelated to pay satisfaction.

Research limitations/implications

The sample over‐represents women, non‐minorities, and workers with long‐service records. Results may not be generalizeable to other organizational contexts, particularly to private sector organizations.

Practical implications

Perceived pay communication predicts not only pay satisfaction, but also perceptions of organizational justice. In turn, justice's mediation is critical to enhancing satisfaction with pay. Organizations should carefully design and implement pay communication programs.

Originality/value

First, the relationships between perceived pay communication and pay satisfaction are shown to be, in part, based on justice perceptions. Second, issues of pay communication have rarely been studied in US public sector organizations, which require open pay systems. Third, this paper presents improvements in measures and other methods over past research in pay communication.

Details

Employee Relations, vol. 33 no. 5
Type: Research Article
ISSN: 0142-5455

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Article
Publication date: 5 July 2011

Oliver Rack, Thomas Ellwart, Guido Hertel and Udo Konradt

The purpose of this paper is to compare effects of different monetary team‐based reward strategies on performance, pay satisfaction, and communication behavior in…

Abstract

Purpose

The purpose of this paper is to compare effects of different monetary team‐based reward strategies on performance, pay satisfaction, and communication behavior in computer‐mediated groups.

Design/methodology/approach

In a laboratory experiment, 32 groups of undergraduate students, each consisting of three individuals, interacted electronically and performed a consensus‐reaching task. Team‐based incentives were distributed either equally (each team member received an equal share) or equitably (each team member's share depended on her/his individual contribution). A control group received no team‐based (or other) incentives.

Findings

Hierarchical multilevel analyses revealed that both types of team‐based rewards increased team members' motivation and pay satisfaction compared to the control condition. Moreover, the effects of team‐based rewards on performance were moderated by group members' assertiveness. In addition, team‐based rewards lead to more cooperative and task‐oriented communication in the computer‐mediated groups. Finally, equally divided rewards led to higher pay satisfaction on average than equitably divided incentives.

Originality/value

On a research level, this study shows that team‐based rewards have positive effects not only on performance but also on communication behavior in computer‐mediated groups. As a practical implication, reward effects should be considered cautiously as they might be influenced by team members’ personality. Moreover, whereas no major differences were found between equity and equality principles in terms of performance, the latter seems to be preferable when satisfaction is a major issue in virtual teams.

Details

Journal of Managerial Psychology, vol. 26 no. 5
Type: Research Article
ISSN: 0268-3946

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Article
Publication date: 20 June 2020

Nathan Robert Neale

Research addressing the impact of tacit and explicit pay secrecy policies on organizational climates is fairly limited. While researchers desire to explain the impact of…

Abstract

Purpose

Research addressing the impact of tacit and explicit pay secrecy policies on organizational climates is fairly limited. While researchers desire to explain the impact of such policies on individuals' pay satisfaction, a direct effect has not been supported. This study seeks to better explain how these policies are related to ethical climates and pay satisfaction.

Design/methodology/approach

This study draws on ethical climate theory to show the influence of ethical climate types on job satisfaction and a moderating effect of explicit and tacit pay secrecy policies on this relationship. This is accomplished through designing this study by using existing scales from the literature in a survey methodology. A pilot study of 246 undergraduate students was used to validate the measures. Then, a sample of 217 adults was obtained to test the proposed relationships. Linear regression is employed to analyze the data and to test the existence of direct and moderating effects.

Findings

The five empirically tested ethical climates each have a direct effect on pay satisfaction. Explicit pay secrecy policies has a positive moderating effect on the relationship between rules, law and code ethical climates, and pay satisfaction. Tacit pay secrecy policies moderate the relationship between caring, rules, law and code, and independence ethical climates and pay satisfaction.

Research limitations/implications

The findings strengthen the literature by demonstrating a stronger relationship between ethical climates and pay satisfaction. While some of the moderating effects were significant, others were not. This was surprising, but present avenues to further test ethical climate theory and the impact of pay secrecy policies.

Practical implications

This study presents practical implications for managers. Understanding how these policies may be viewed differently, depending on the type of climate that is experienced within an organization may help managers evaluate using them. Trying to protect employees or the organization itself by enacting these polices may backfire and create additional problems. Managers may want to evaluate the manner that they communicate these polices through formal or informal means, depending on the type of climate experienced within the workplace.

Originality/value

This study is the first to examine the influence of explicit and tacit pay secrecy policies on the relationship between ethical climates and employees' satisfaction with pay. It leads to a number of directions for further research that may continue to build upon this study in order to further advance scholarly understanding of the importance of ethical climates and pay secrecy policies.

Details

International Journal of Organization Theory & Behavior, vol. 23 no. 4
Type: Research Article
ISSN: 1093-4537

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Article
Publication date: 1 January 2000

Mary E. Graham and Charlie O. Trevor

The design and introduction of new pay programs may be particularly challenging for multinational corporations (MNCs) because, given their diverse employee base, they face…

Abstract

The design and introduction of new pay programs may be particularly challenging for multinational corporations (MNCs) because, given their diverse employee base, they face varied employee expectations regarding pay. We offer a model of how national cultural norms affect employee expectations for, and judgments about, pay fairness. We also describe how firms can best use two international compensation strategies for MNCs (a global integration strategy and a local responsiveness strategy) to optimize employees' justice judgments regarding new pay programs. More favorable justice judgments should improve the chances of new pay program survival and, subsequently, contribute to firm competitiveness.

Details

Competitiveness Review: An International Business Journal, vol. 10 no. 1
Type: Research Article
ISSN: 1059-5422

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Article
Publication date: 12 April 2019

Melinda Laundon, Abby Cathcart and Paula McDonald

Employee reward is central to contemporary debates about work and employment relations; and in the context of ongoing wage stagnation, benefits represent a growing…

Abstract

Purpose

Employee reward is central to contemporary debates about work and employment relations; and in the context of ongoing wage stagnation, benefits represent a growing proportion of total reward value. Past studies have shown that when employees perceive benefits as unfair, this has a negative impact on engagement, performance and retention. Yet no previous studies have explored the components of a benefits system that influence employees’ fairness concerns. Using organisational justice as a theoretical lens, the purpose of this paper is to examine how dimensions of an employee benefits system influence the fairness perceptions of employees.

Design/methodology/approach

This paper reports on a qualitative, inductive case study of the benefits system in a large finance and insurance company, drawing on three data sources: interviews with the company’s benefits managers, organisational documents and open-text responses from a benefits survey.

Findings

Three dimensions of the benefits system strongly influenced fairness perceptions – constraints on accessing and utilising benefits; prosocial perceptions about the fairness of benefits to third parties; and the transparency of employee benefits.

Practical implications

The study informs organisations and benefits managers about the important role of supervisors in perceived benefits usability, and how benefits may be managed and communicated to enhance employee fairness perceptions.

Originality/value

This study makes a conceptual contribution to the benefits literature through a detailed exploration of the type of organisational justice judgements that employees make about benefits; and identifying for the first time prosocial fairness concerns about the impact of benefits on third parties.

Details

Employee Relations: The International Journal, vol. 41 no. 4
Type: Research Article
ISSN: 0142-5455

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Article
Publication date: 23 December 2019

Shabe Jonas Matla and Mgadla Ike Xaba

The purpose of this paper is to investigate the levels of the job satisfaction of teachers at historically disadvantaged secondary schools and to determine the correlation…

Abstract

Purpose

The purpose of this paper is to investigate the levels of the job satisfaction of teachers at historically disadvantaged secondary schools and to determine the correlation effects among job satisfaction dimensions as they relate to these teachers.

Design/methodology/approach

A quantitative survey design using Spector’s Job Satisfaction Survey was used, with 1,035 teachers from 30 secondary schools in the Sedibeng and Johannesburg South districts of the Gauteng Department of Education in the Gauteng Province of South Africa. Overall, 738 usable questionnaires were returned.

Findings

Teachers at well-performing, historically disadvantaged schools experience ambivalent job satisfaction levels. For this reason, they indicate satisfaction with supervision, co-workers and the nature of work; ambivalence with promotion, contingent rewards and communication; and no satisfaction with pay and operating conditions. Correlations between job satisfaction dimensions are significant. Their correlations indicate relationships that range between moderate and strong. While mostly indicating relationships of no practical effect, most of Herzberg’s hygiene factors are projected as strong moderating factors of job dissatisfaction as seen in relationships between dimensions reflecting hygiene factors and total job satisfaction.

Originality/value

This study pioneers the discourse on teacher job satisfaction at historically disadvantaged secondary schools, which still experience apartheid legacies: poor socio-economic conditions of their communities in South Africa. Strikingly, they consistently perform well in the National Senior Certificate – the basic education exit point. Lessons for educational management and policy practice can be learnt from these secondary schools, including lessons for underperforming schools’ leadership.

Details

International Journal of Educational Management, vol. 34 no. 4
Type: Research Article
ISSN: 0951-354X

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Book part
Publication date: 1 July 2014

Samantha A. Conroy, Nina Gupta, Jason D. Shaw and Tae-Youn Park

In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly…

Abstract

In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the past two decades and much progress has been made in terms of understanding its consequences for individual, team, and organizational outcomes. Our review of this research exposes several levels-related assumptions that have limited theoretical and empirical progress. We isolate the issues that deserve attention, develop an illustrative multilevel model, and offer a number of testable propositions to guide future research on pay structures.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78350-824-2

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Book part
Publication date: 17 September 2020

Brian T. Ratchford

The 2016 presidential campaign in the United States was marked by widespread interference by Russian agents. The interference was especially prominent in digital media…

Abstract

The 2016 presidential campaign in the United States was marked by widespread interference by Russian agents. The interference was especially prominent in digital media. This indicates the possible need for better regulation. To investigate the problem, I examined the legal and regulatory history of US Federal campaign regulation. While these regulations require various disclosures and disclaimers, and set some spending limits, they do not cover advertising messages. More to the point, the disclosure and disclaimer requirements for digital ads are limited and easily circumvented. Possibly because of this, political advertising in digital media has increased dramatically in recent years. I examine current proposals for improved regulation and make recommendations for changes in Federal regulation and in oversight by nonpartisan groups.

Details

Continuing to Broaden the Marketing Concept
Type: Book
ISBN: 978-1-78754-824-4

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Article
Publication date: 1 November 1999

Mary Power and Byron Rienstra

As monolithic corporations and public agencies seek ways of adapting to the demands of the next century many such institutions, while wishing to retain the benefits of…

Abstract

As monolithic corporations and public agencies seek ways of adapting to the demands of the next century many such institutions, while wishing to retain the benefits of belonging to an identifiable corporation, are recreating themselves as conglomerates of “loosely coupled businesses”. This situation creates new challenges for corporate communications specialists and educators. Corporate communication in devolved systems must involve design of specific solutions for the knowledge management and communication needs of individual businesses based on local knowledge of the systems likely to be affected. This paper presents a case study analysis of a local government organisation undergoing change and from it derives suggestions for the implementation of a communication model involving consultation and education in devolved systems.

Details

International Journal of Public Sector Management, vol. 12 no. 6
Type: Research Article
ISSN: 0951-3558

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