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Article
Publication date: 1 June 2003

Titus Oshagbemi and Charles Hickson

While there has been several job satisfaction studies, very few of them are about the university teachers or academics in general. The present work examines not only how…

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4288

Abstract

While there has been several job satisfaction studies, very few of them are about the university teachers or academics in general. The present work examines not only how satisfied UK academics are with their primary tasks of teaching and research, but also their satisfaction with their pay. Using a binomial logit analysis on a survey data, the study found a strong positive relationship between pay satisfaction and gender, indicating that women academics are more satisfied than the men counterparts. The study also found that research and teaching satisfaction are negatively affected with increasing age and length of service in higher education respectively. Unsurprisingly, research and pay satisfaction are positively associated with rank. It was found that the engineering staff members are dissatisfied with their research but more significantly, their teaching. The implications of these findings are explored.

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Journal of Managerial Psychology, vol. 18 no. 4
Type: Research Article
ISSN: 0268-3946

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Article
Publication date: 31 December 2020

Heini Ikävalko and Roosa Kohvakka

This paper aims to examine the moderating effect of employees’ work orientation and gender on their feelings toward pay, that is, the relationship between perceived…

Abstract

Purpose

This paper aims to examine the moderating effect of employees’ work orientation and gender on their feelings toward pay, that is, the relationship between perceived fairness of a pay system and pay level satisfaction. The perceived fairness of pay system is investigated with two pay system procedures, namely, job evaluation and performance evaluation, both determining the level of base pay.

Design/methodology/approach

Survey data were collected from three public sector organizations in Finland (N = 526). Linear regression analysis was used to investigate the relationship between pay satisfaction, pay system fairness, work orientation and gender.

Findings

The results show that employees’ work orientation significantly and negatively relates to pay satisfaction. The interaction analyses suggest significant gender differences in the relationship between work orientation and pay satisfaction, as work orientation is negatively associated with pay satisfaction for women. They also show that work orientation and job evaluation fairness have a positive, joint effect on pay satisfaction.

Practical implications

This study has implications for the implementation of fair pay practices in organizations. The role of work orientation in the relationship between job evaluation fairness and pay satisfaction highlights the importance of pay system fairness especially among work-oriented employees. Special attention should be paid on work-oriented women: With equal perception of pay system fairness, work-oriented women feel unsatisfied with their pay.

Originality/value

This paper is the first study to highlight the role of work orientation and gender in reactions related to pay.

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Gender in Management: An International Journal , vol. 36 no. 3
Type: Research Article
ISSN: 1754-2413

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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.

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

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Article
Publication date: 21 June 2011

Carolyn Stringer, Jeni Didham and Paul Theivananthampillai

This paper aims to explore the complex relationships between intrinsic and extrinsic motivation, pay satisfaction and job satisfaction at the retailer that uses a pay

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35017

Abstract

Purpose

This paper aims to explore the complex relationships between intrinsic and extrinsic motivation, pay satisfaction and job satisfaction at the retailer that uses a pay‐for‐performance plan for front‐line employees.

Design/methodology/approach

This paper draws on a single organization case study across seven stores, and uses a survey, archival documents, open‐ended questions and researcher interaction with employees and managers.

Findings

The results provide some support for the complementary nature of intrinsic and extrinsic motivation. Intrinsic motivation was positively associated with pay and job satisfactions, whereas extrinsic motivation was negatively associated with job satisfaction, and not associated with pay satisfaction. The qualitative insights indicate that pay fairness is important, and those who perceived pay was not fair generally made comparisons with others or felt that pay did not reflect their effort. It is also found that the majority of employees perceived that goals were clear.

Research limitations/implications

The dominance of extrinsic motivation without including behavioural, social, and psychological factors in agency theory research is questioned. The research finds no support for “crowding out”, but rather finds some evidence of “crowding in” where intrinsic motivation is enhanced, to the detriment of extrinsic motivation.

Practical implications

The findings highlight that managers should enhance both intrinsic and extrinsic motivation, and pay employees well to increase job satisfaction.

Originality/value

Few studies examine incentives for front‐line employees, and there is evidence that minimum wage employees can have high intrinsic motivation. Perceptions of pay fairness can vary across motivation levels, age, and gender.

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Qualitative Research in Accounting & Management, vol. 8 no. 2
Type: Research Article
ISSN: 1176-6093

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Article
Publication date: 1 July 2006

Thomas Li‐Ping Tang, Theresa Li‐Na Tang and Beeta Yazmeen Homaifar

This study aims to test a model of pay satisfaction and argue that the income‐pay satisfaction relationship depends on one's love of money and how one compares.

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4340

Abstract

Purpose

This study aims to test a model of pay satisfaction and argue that the income‐pay satisfaction relationship depends on one's love of money and how one compares.

Design/methodology/approach

The paper investigates: a direct path (income → total pay satisfaction); an indirect path (income → the love of money → pay equity comparison → total pay satisfaction) using a structural equation model (SEM) based on 210 full‐time employees; and the model across race and gender in multi‐group analyses.

Findings

The paper finds that for the whole sample, there was one significant path (pay equity comparison → total pay satisfaction). Since African‐Americans ($32,073.15) and women ($32,400.58) tended to have lower income than Caucasians ($37,180.73) and men ($38,287.97), respectively, income significantly increased the importance of the love of money for African‐Americans and females, but not for Caucasians and males. The love of money to pay equity comparison path was not significant. Income was not related to pay satisfaction. Results of the direct path alone showed that income contributes to pay satisfaction for the whole sample, male and female employees, and Caucasians, but not for African‐Americans.

Research implications/limitations

If people do not use the love of money to judge pay equity comparison, their income does not lead to low pay satisfaction. The sub‐samples are small.

Originality/value

This paper shows the importance of including the love of money in understanding pay satisfaction.

Details

Journal of Managerial Psychology, vol. 21 no. 5
Type: Research Article
ISSN: 0268-3946

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Article
Publication date: 10 September 2018

Konrad Kulikowski

Research on the relationship between pay for individual performance (PFIP) and work engagement (WE) is limited. The purpose of this paper is to present a model outlining a…

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1325

Abstract

Purpose

Research on the relationship between pay for individual performance (PFIP) and work engagement (WE) is limited. The purpose of this paper is to present a model outlining a threefold association between PFIP and WE: a direct association, an indirect association via pay satisfaction and a joint indirect association via pay level and pay satisfaction.

Design/methodology/approach

Structural equation modeling and bootstrapping procedures were used to test hypotheses with regard to these associations based on data obtained from two independent studies: the author’s own research project, and the European Work Conditions Survey 2015.

Findings

In both studies, the author found the hypothesized direct association between PFIP and WE; indirect association between PFIP and WE via pay satisfaction; and a joint indirect association between PFIP and WE via pay level and pay satisfaction.

Research limitations/implications

Given its limited cross-sectional design, future longitudinal research in this area is needed to test the model of relations presented in this paper.

Practical implications

The association between PFIP and WE is weak, and partially mediated by pay satisfaction; thus, it seems that to promote WE, it is not solely sufficient to introduce PFIP into remuneration systems, but that, in addition, PFIP should be aligned with employee pay expectations.

Originality/value

This study contributes to the career development literature by proposing and initially testing a model describing the three ways PFIP may be related to WE, one of the most crucial factors in achieving career success.

Details

Career Development International, vol. 23 no. 4
Type: Research Article
ISSN: 1362-0436

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Article
Publication date: 9 October 2017

Ting Ren, Ruolian Fang and Zhen Yang

This paper aims to investigate the impact of pay-for-performance (PFP) perception and pay level satisfaction on work attitudes (job satisfaction, turnover intention and…

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1402

Abstract

Purpose

This paper aims to investigate the impact of pay-for-performance (PFP) perception and pay level satisfaction on work attitudes (job satisfaction, turnover intention and affective commitment) and extra-role behaviors (discretionary effort and interpersonal helping), and further, how three aspects of conditional factors – intrinsic motivation, leader–member exchange (LMX) and perceived organizational support (POS) – moderate the main-effect relationships.

Design/methodology/approach

The study was conducted at a Chinese private-owned company in the beauty industry, and a survey was conducted with the frontline employees in each office, asking information about their perceptions and attitudes toward the PFP scheme implemented in the company, work attitudes and performance, individual characteristics and their perceptions of group and organizational characteristics.

Findings

Results show that PFP perception and pay level satisfaction are significant predictors of work attitudes and extra-role behaviors. Further, depending on the specific work outcome examined, the three conditioning factors are found to strengthen the hypothesized main-effect relationships. The findings of the study have important theoretical and practical implications for the implementation of PFP schemes in organizations.

Originality/value

The findings contribute to the scholarship on PFP schemes in two ways. First, the findings show that PFP perception and pay level satisfaction are important for understanding employee work attitudes and extra-role behaviors. Second, the investigation of the moderating roles that intrinsic motivation, LMX and POS play in the relationships of PFP perception and pay level satisfaction with the work outcomes provides evidence to the limited understanding about the conditions that may strengthen or weaken the effectiveness of PFP schemes.

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Journal of Chinese Human Resource Management, vol. 8 no. 2
Type: Research Article
ISSN: 2040-8005

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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…

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4940

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: 9 August 2013

Julie Cloutier, Denis Morin and Stéphane Renaud

This study aims to determine the effect of individual and group variable pay plans on pay satisfaction among Canadian workers from six occupational groups.

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2495

Abstract

Purpose

This study aims to determine the effect of individual and group variable pay plans on pay satisfaction among Canadian workers from six occupational groups.

Design/methodology/approach

Theoretical foundations rest on the discrepancy model of pay satisfaction and equity theory. Canadian national data from the Workplace and Employee Survey (WES) were used to test the hypotheses.

Findings

The results show that individual and group variable pay plans act differently on workers’ pay satisfaction. For individual pay plans, being eligible for a variable pay plan, and thereby having one's performance rewarded, has no effect on pay satisfaction. Workers on variable pay plans are more satisfied with their pay only when they receive performance‐dependent payouts. In short, they want to be rewarded not only for performance but also for effort. For group pay plans, not receiving payouts has no negative effect on pay satisfaction. In contrast, receiving payouts creates pay dissatisfaction. Individual and group plans have a distinct effect on pay satisfaction by occupational group.

Practical implications

Managers can make informed decisions regarding the adoption of variable pay plans and their implementation.

Originality/value

This study sheds light on the link between variable pay and pay satisfaction. It improves our understanding of the mechanism by which variable pay affects pay satisfaction: the effort – performance – pay link (i.e. risk and perceived fairness of the allocation).

Details

International Journal of Manpower, vol. 34 no. 5
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 1 April 2005

Thomas Li‐Ping Tang, Roberto Luna‐Arocas and Toto Sutarso

This study examined a mediating model of income and pay satisfaction with a direct path (income → pay satisfaction) and an indirect path with two mediators (income → the…

Abstract

This study examined a mediating model of income and pay satisfaction with a direct path (income → pay satisfaction) and an indirect path with two mediators (income → the love of money → pay equity comparison → pay satisfaction). Results of the whole sample showed that the indirect path was significant and the direct path was insignificant. When the indirect path was eliminated, income contributed positively to pay satisfaction. We then tested the model across two moderators: culture (the United States versus Spain) and gender. This study provides the following theoretical and empirical contributions: the direct relationship between income and pay satisfaction depends on the indirect path and the extent to which (1) income enhances the love of money and (2) the love of money is applied to evaluate pay equity comparison satisfaction. If both conditions exist, income leads to pay dissatisfaction. If the second condition does not exist, income does not lead to pay dissatisfaction. Pay satisfaction depends on (1) one’s love of money and (2) how one compares. The role of the love of money in pay satisfaction is “not”universal across cultures and gender.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 3 no. 1
Type: Research Article
ISSN: 1536-5433

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