The Influence of Fairness for Performance Salary on Employee Pay-Satisfaction

Junjie An; Masri Bin Abdul Lasi

doi:10.54097/te2ygj62

Authors

Junjie An
Masri Bin Abdul Lasi

DOI:

https://doi.org/10.54097/te2ygj62

Keywords:

Performance-based compensation, Fair compensation, Salary satisfaction

Abstract

A structural equation model was constructed to investigate the relationship between performance-based pay, fair salary distribution, fair salary procedures, external fairness of salary, and salary satisfaction. State owned enterprises and small and medium-sized private enterprises in Beijing and Xi'an were selected as research objects, and the causal relationships between the various elements in the model were empirically analyzed using on-site distribution and entrusted distribution methods. The model was then revised. Research has found that the strength of performance-based pay can significantly positively affect both procedural fairness and external fairness in compensation; Fair salary distribution and fair salary procedures can significantly positively affect salary satisfaction.

Downloads

Download data is not yet available.

References

Wu Xiaoyi, Wang Chunxiao, Xie Lishan. The impact of salary management fairness on employee salary satisfaction [J]. Foreign Economics and Management, 2006, 28 (2): 7-14.

Macfarlin, Sweeney. Distributive and procedural justice as Predictors of satisfaction with personal and organizational outcomes [J] Academy of Management Journal, 1992, 8, 35 (3): 626-637.

Campbell, Ho Bong. Merit Pay, Performance advisory, and individual motivation: An analysis and alternative [J] Human Resource Management, 1998, 37 (2): 131-146.

Van Yperen, Den Bos, De Graff. Performance based pay is fair and granular when I performance better: Differential fairness Perceptions of allocators and recipients [J] European Journal of Social Psychology, 2005, 35 :741-754.

Oldham Relations between Job Facet Comparisons and Employee Reactions [J] Organizational Behavior and Human Decision processes, 1986, 38 (1): 28-47.

Folger, Konovsky. Effects of Procedural and distributive justice on reactions [J] Academy of Management Journal, 1989, 32:15-30.

Sun Wei. Research on Salary Fairness in Work Organizations [D]. Guangzhou: Master's Thesis from South China University of Technology, 2005.

Lazer D. Regulation, Interdependence and International Governance [J] Journal of European Public Policy, 2001, 8 (3): 474-492.

Ren Hualiang. Research on the Impact of External Equity in Salary Distribution on High educated Employees [D]. Lanzhou: Master's Thesis of Lanzhou University, 2008.

Wang Bingcheng. Research on the Relationship between Personality Traits of Salary Fairness and Job Satisfaction [J]. Scientific Research Management, 2011, 32 (3): 91-100.

Lou Huayong. The impact of performance-based compensation characteristics on employee attitudes and performance [D]. Hangzhou: Master's thesis from Zhejiang University, 2009.

Deekcop J R, Mangel R, Cirka C C. Getting more than you Pay for: Organizational citizenship behavior and Pay for Performance Plans [J] Academy of Management Journal, 1999, 42 (4): 420-428.

Zhong Zhihui. The Impact of Performance Appraisal System on Organizational Citizenship Behavior of Knowledge Workers [M]. Hangzhou: Zhejiang University Master's Thesis, 2008.

Jones, Scarpello. Pay procedures what makes them fair [J] Journal of Occupational and Organizational Psychology, 1999, 72:129-145.

Li Xi. Research on the Impact Mechanism of Perceived Equity of Compensation for Science and Technology Workers [D]. Tianjin: Master's Thesis of Tianjin University, 2010.