Relationship between Financial Compensation and Organizational Commitment among Malaysian Bank Workers

Abstract

<p>This research examines the relationship between financial compensation and organizational commitment among workers in the banking industry, Malaysia. This research is significant in addressing the preceding gap on the types of financial compensation such as salaries, bonuses and merit pay with a stronger relationship with organizational commitment. Although these variables have been widely studied, few studies have explored their relationship to organizational commitment. Quantitative methodology is utilized to explore the relationship between financial compensation and organizational commitment. In data collection, a questionnaire was administered among 150 workers working in several selected banks in Bera; a town situated in the state of Pahang, Malaysia. Simple random sampling was used to select the respondents in the survey. The research findings showed that there is a significant relationship between financial compensation such as salaries, bonuses and merit pay and organizational commitment. Besides that, merit-based pay is identified as the dominant factor in influencing the organizational commitment among the bank workers under study. The research findings contribute to a better understanding for all related parties on the application of theories and model in relation with financial compensation aspects and organizational commitment. </p>

Human resource management practices and organisational commitment: employees’ perspective in the Nigerian hospitality sector

“…In Rizal, Idrus, Djumahir and Mintarti (2014), compensation was defined as a mechanism for encouraging and motivating employees for the purpose of achieving organisational goals and objectives. According to Kee, Ahmad and Abdullah (2016), compensation is one of the strategies of human resource management for achieving organisational goals, towards sustaining the growth of the organisation. Munap, Mohd and Abdul (2013) had earlier identified compensation as a tool for attracting, motivating, retaining and gaining commitment of high-performers in the workplace.…”

Organizational Commitment and Rewards in Malaysia, with Comparison between University Graduates and Others

“…However, several studies conducted in the West show contradictory evidence reporting that compensation has no significant impact on OC (Bhagat & Chassie, 1981;Malhorta, Budhwar, & Prowse, 2007;Shore & Barksdale, 1998). In Malaysian settings, some studies found that financial compensation and OC were positively correlated (Ibrahim & Boerhaneoddin, 2010;Kee, Ahmad, & Abdullah, 2016;Normala, 2010;Queiri & Dwaikat, 2016). This leads us to the following hypothesis:…”

Effect of empowerment and compensation on performance of honorary employees mediated by organizational commitments

“…Other studies such as by Alamelu et al, (2015), in the manufacturing industry in India, shows that employee compensation for commitment has a significant and positive influence. Then, Kee et al, (2016), in the banking industry in Malaysia showed a significant influence between the relationship of compensation and commitment. In the food industry in Kenya carried out by Milgo et al, (2014), showed a significant influence between compensation and commitment.…”