Work performance, affective commitment, and work motivation: the roles of pay administration and pay level

Abstract

SummaryThe purpose of this study was to investigate employee attitudes and behaviors among knowledge workers under different forms of pay administration and pay levels. To examine these issues, I collected data from two business units in a large Norwegian multinational company with pay plans combining individual and collective performance and behaviors as the foundations for individual bonuses; one with two collective components (profit and behavior of the unit and the organization) and one with an individual component in addition to the two collective components. After controlling for organizational tenure, education, gender, perceived unit support, perceptions of distributive and procedural justice, and type of pay plan, the key findings are that base pay level, but not bonus level, was positively related to both selfreported work performance and affective unit commitment, and that these relationships were partly mediated by intrinsic motivation. Furthermore, moderation analyses revealed that the relationships between bonus level and the outcome variables were not affected by type of pay plan. Implications and directions for future research on pay in knowledge intensive organizations are discussed.

Humanistic Management and Living Wages: a Case of Compelling Connections?

“…More latterly, perceived fairness in pay determination itself has been linked to occupational health and workforce wellbeing (Leineweber et al 2016). Organizational commitment and engagement may also provide acceptable proxy measures for organizational efficiencies (Kuvaas 2006). Potential mechanisms for efficiency gains from living wages, involving capabilities, are implied by Sen (1999) who stated that Benhanced capabilities in leading a [working] life would tend, typically, to expand a person's ability to be more productive and earn a higher income, [and] we would also expect a connection going from capability improvement to greater earning power and not only the other way around^(p. 90).…”

Performance appraisal in Western and local banks in China: the influence of firm ownership on the perceived importance ofguanxi

“…Performance appraisal, in particular the emphasis on linking pay and promotion to specified financial targets, is seen as especially important for the motivation and development of the highly skilled knowledge workers needed for a successful and competitive banking sector (Joshi, Cahill and Sidhu 2010;Kuvaas 2006). As such, each of the four Chinese state-owned banks have introduced performance-based appraisal practices in order to improve firm performance and help build skills and capacity in the sector (Cousin 2011).…”

Quality of Work Life: A Significant Dimension of Non-Financial Compensation or Managers’ Tool to Generate Reciprocity

“…Employee performance was measured by self reported questionnaire containing six items from six dimensions (extra work, quality of work, hard work, intention to do the job, higher performance & higher efforts). These dimensions were adopted from the earlier work of Kuvaas (2006). Research items were; I often put extra effort in carrying out my job, The quality of my work is top-notch, I try to work as hard as possible, I intentionally put a great deal of effort in carrying out my job, I deliver higher quality than what can be expected and I almost always put in more effort than what can be characterized as an acceptable level of effort.…”