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This research examined the influence of contextual variables on the factor structure of Heneman and Schwab's (1985) Pay Satisfaction Questionnaire (PSQ) and further explored the dimensionality of the compensation satisfaction construct. The PSQ is intended to measure four aspects of compensation: pay level, pay raises, pay structure-administration, and benefits. Previous research showed support for the pay level and benefit subscales, with equivocal results for the raises and structureadministration subscales. In this study, using data obtained from 1,007 employees of a manufacturing firm and 95 nursing home employees, we found that PSQ factor structure varied by employee job classification (salaried-exempt, salaried nonexempt, and hourly) and may also vary by other contextual factors such as company labor-relations compensation policy. The question of the underlying dimensionality of the compensation satisfaction construct cannot be adequately addressed by use of the current version of the PSQ. Implications for research and practice are discussed.Over the past two decades a great deal of research has been conducted that relates to pay satisfaction (for reviews, see Heneman, 1985;Lawler, 1971;Nash & Carroll, 1975;Schwab & Wallace, 1974). Nevertheless, confusion regarding the antecedents and consequences of pay satisfaction persists (Milkovich & Newman, 1987). In the most recent review of the literature, Heneman (1985) suggested that much of this confusion stems from the belief that people have only some overall general affect about their pay. Drawing on earlier work on the dimensionality of pay (Heneman & Schwab, 1979), Heneman (1985 argued that employees not only have a general affect about their pay, but also develop specific attitudes toward distinct aspects of financial compensation. Furthermore, Heneman and Schwab (1985) offered a five-dimensional construct of satisfaction with compensation that consists of satisfaction with (a) pay level (i.e., current wage or salary), (b) raises (i.e., changes in pay level), (c) structure (i.e., how pay is allocated among hierarchically arranged jobs), (d) administration (i.e., how pay is distributed to employees), and (e) benefits (e.g., vacations, sick leave, insurance, pensions, income accumulation plans, and miscellaneous services).In order to explore the dimensionality of the compensation satisfaction construct, Heneman and Schwab (1985) devised a 20-item instrument, the Pay Satisfaction Questionnaire (PSQ), and administered it to three groups of employees: professional,We sincerely thank and acknowledge Sara Rynes, Charles Lance, and two anonymous reviewers for helpful comments on earlier drafts of this article.

Executive SummaryMost research on cellular manufacturing (CM) has focused on the technical issues involved in converting functionally segregated operations into integrated multifunctional cells. Examples of these technical issues include classification methods, physical arrangements, method5 for reducing set-up time, and design of work flow sequence. By comparison, research on the human or social side of CM has been notably lacking. With the exception of anecdotal descriptions of CM concerns (Fazakerley (1974(Fazakerley ( , 1976), only two empirical studies have attempted to systematically pinpoint the nature of human resource Issues in these settings (Brown and Mitchell (1991); Huber and Hyer (19X5)). Consequently, the social system factors that support CM success are not well understood.Based on aociotechnical systems (STS) theories. it is suggested that a complementary match between technical and social systems is needed to ensure optimization of CM implementations.One avenue for effecting social system change in response to technical innovations i\ through an organization's human resource system. Planning, job analysis. selection, training, reward structures, and employee relations practices may make a difference in the relative success of a CM conversion. and also may influence employee attitudes and quality of work life. These human resource practices provide support for attaining Cherns' (1978) nine STS principlesdompatibility, minimal critical specification, the sociotechnical criterion, information flow, multifunctioning, boundary location. support congruence. human values, and incompletion. The integration of human resource management practices and STS theories provides implementation guidelines and also helps to reveal areas where research is needed.Longitudinal and cross-sectional field studies will be the methodologies of choice for assessing human resource issues in CM settings. For example, descrlptlve studies may assess job satisfaction, pay satisfaction, job content, or perceptions of performance obstacles. Of equal importance will be research which tests the effectiveness of various human resource practices (e.g.. realistic job previewA. training. team incentive systems) in CM settings. Dependent variables for thehe studies may include economic measures huch ah throughput time. quality, inventory levels. and employee turnover rates. as well as measures of employee attitudes and the time required for full CM implementation.Field research will Improve our understanding of the human resource practice5 which are most likely to enhance CM implementations. and also will further our understanding of STS relationships. Manuscript received March I, 1990: accepted by Urban Wemmerliiv on February 2X. 199 I. after three revision>. *Umversity of Washington, Seattle. WA 98195 **Seattle University, Seattle, WA 98122 'Both authors contributed equally to the preparation of this manuscript. 138 Vol. 10, No. 1 assessing the influence of CM on employees (Wemmerlov and Hyer (1987)). Although Huber and Hyer (1985) ...