Correlates of Employee Compensation and Commitment

Abstract

In recent days, employees are considered as an important asset of an organisation and their commitment plays a vital role in achieving sustainable growth of the organisation. The employee commitment always plays a very predominant role in achieving the vision and mission of the organisation. The employee commitment was identified as a baseline for the performance of the company. This commitment is said to have a relationship with the compensation what employee receives. It is predicted that employee commitment may be increased when the employee are satisfied by the elements of compensation. Hence the researcher focuses on the relationship between compensation and commitment, factors of compensation affecting employee commitment, and identifies the employee's perception towards the components of pay model. The researcher has conducted the study with 300 samples collected from small manufacturing industries in Tiruchirappalli District, Tamil Nadu, India. Researcher has applied tools like ANOVA, Chi-square test, Structural Equation Modelling for the purpose of analysing the relationship between employee compensation and their commitment. The study outcome revealed that employee commitment was strongly associated with the satisfaction of employees towards their compensation based on pay model.

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

“…The outcome showed a positive impact of these independent variables on the dependent variable. These findings are in line with some previous studies, such as Alamelu, Surulivel, Motha, Amudha and Selvabaskar (2015), Munap, Mohd, and Abdul (2013), Nawab andBhatti (2011), Cornway andBriner (2012), who conducted a compensation system and employees' organisational commitment. In the same vein, Aguinis and Pierce (2008) found positive impact of performance management on organisational commitment.…”

“…They further argued that an organisation with better and adequate compensation system boosts employees' job satisfaction and reduces both intention and actual turnover of the employees. In Alamelu, Surulivel, Motha, Amudha and Selvabaskar (2015), compensation packages were found to be a part of the major boosters of positive employee behaviour in the workplace, such as organisational commitment. The study carried out by Conway and Briner (2012) on investigating the effect of collective organisational commitment on unit level performance revealed that fair pay, autonomy at work, suitable career path and fairness in the distribution of reward, amongst others, will lead to high employee organisational commitment.…”

Compensation and Organizational Commitment: The Mediating Role of Job Satisfaction

“…An attractive compensation system will increase employee commitment, the compensation system given by the company should be able to create justice among its employees agree with (Milgo, et al, 2014) that says a good compensation system will increase organizational commitment by recognizing and rewarding employees with achievements and even providing stimuli to employees who have not achieved with rewards that employees can easily find. The results of this study agree with (Alamelu et al, 2015;Rianaa et al, 2016;Paik et al, 2007;Nawab et al, 2011) which states that satisfaction has significant influence on organizational commitment. The results of this study also show that compensation has the greatest contribution compared to other variables in this study, as said by Silaban et al, ( 2018) proper compensation provided by the company will be able to increase organizational commitment.…”

“…The results of Hypothesis 4 have no appropriate commitment but do not work, but are also the variables that mediate the influence between committed organizations, which is very advantageous in this research model, as well as job satisfaction become an institution with increasing organizational commitment. This study relevan with (Alamelu et al, 2015;Ghofur et al, 2017;Salisu et al, 2015), which states that the satisfaction variable can be a variable of mediation in increasing organizational commitment, and performance. Thus a job satisfaction hase an important role in the company.…”

“…Important commitments were owned by each individual who works at the company, due to the commitment of individual psychology one of the conditions or conditions between employees and the company are related to staying afloat in the company, so that employees do not leave the company on any condition of the company, any current will have a commitment to each other different languages, this is yan will cause difficulties in the company will retain employees aga remains committed. Agreed with researcher (Onsardi, et al, 2017;Dirani, 2014;Alamelu, 2015) that organizational commitment is one of the important factors that exist within the company, had committed employees will take the company in a competitive work environment. At the pharmaceutical company mainly Medical Representative who is one of the mainstays of the company, employees should always improve service to consumers, as it says Nguyen, et al, (2014) choose remains committed on the company because the company is the place for them to earn an income.…”