Pay openness movement: Is it merited? Does it influence more desirable employee outcomes than pay secrecy?

Marasi, Shelly; Wall, Alison E.; Bennett, Rebecca J.

doi:10.1080/15416518.2018.1471978

Cited by 23 publications

(60 citation statements)

References 64 publications

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“…9 Although mandating transparency may produce fairer wages, demonstrable benefits of pay transparency may convince organizations to voluntarily be more transparent. 10 Additionally, it is important to understand the contexts that best support pay transparency, such as aspects of organizational justice. The purpose of this research is to examine the effects that pay transparency and organizational justice have on pay satisfaction and organizational commitment, as well as whether transparency and justice interact when examining these outcomes.…”

mentioning

confidence: 99%

Ignorance Is Bliss, or Is It? The Effects of Pay Transparency, Informational Justice and Distributive Justice on Pay Satisfaction and Affective Commitment

Scheller

Harrison

2018

Compensation & Benefits Review

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Pay transparency—open access to comparative wages—may help reduce wage discrepancies and otherwise benefit organizations. A 2 × 2 × 2 between-subjects factorial design was used to test the effects of pay transparency, informational justice and distributive justice on pay satisfaction and affective commitment. Case scenarios were developed to manipulate these variables and test main effect and interaction hypotheses. Full-time employees in the United States ( N = 293) were recruited from Amazon’s MTurk. Results showed main effects of pay transparency and distributive justice on both pay satisfaction and affective commitment; an informational justice effect was revealed on affective commitment. Pay transparency had a larger effect on pay satisfaction when distributive justice was low than when it was high. Exploratory analyses revealed an interaction between pay transparency, gender and race on pay satisfaction. This study confirmed positive consequences of pay transparency policies, which are proposed to be a component of informational justice.

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mentioning

confidence: 99%

Ignorance Is Bliss, or Is It? The Effects of Pay Transparency, Informational Justice and Distributive Justice on Pay Satisfaction and Affective Commitment

Scheller

Harrison

2018

Compensation & Benefits Review

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“…There are two important components in the merit-based pay management, which are communication and performance assessment (Brownson & Fowler, 2020;Ismail, 2020). Communication broadly refers to the sharing of information between organization and workers regarding the implementation of merit-based pay (such as type of pay, the method to determine pay level, and the amount of pay) (Jean et al, 2019;Marasi et al, 2018). The readiness of organizations to practice openness in communication may provide a clear picture about the advantages of a merit-based pay system, provide sufficient and correct information about the relationship between merit-based pay and performance, and enhance worker's understanding and enhance the credibility of the pay system (Jean et al, 2019;Marasi et al, 2018).…”

Section: Merit-based Pay Managementmentioning

confidence: 99%

Interactional Fairness as a Mediator Between Merit-Based Pay Management and Organizational Commitment

Razak¹,

Ali²

2021

APMAJ

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The purpose of this quantitative study was to evaluate the ability of interactional fairness as a mediator in the relationship between merit-based pay management (such as communication and performance assessment) and organizational commitment. A cross-sectional technique was used to collect 450 useable data of workers from a government-linked company (GLC), who had served more than five years in Selangor and Kuala Lumpur. The outcomes of the Partial Least Square Structural Equation Modelling (PLS-SEM) path model analysis indicated three important findings. First, communication and performance assessment was significantly correlated with interactional fairness. Second, interactional fairness was significantly correlated with organizational commitment. Third, communication, performance assessment and interactional fairness were significantly correlated with organizational commitment. Statistically, the findings of this study verified that the relationship between communication and performance assessment with organizational commitment is indirectly influenced by interactional fairness. These findings would benefit researchers and organizational management to recognize the importance of merit-based pay management (communication and performance assessment) to nurture employees’ positive feelings, behaviors, and attitudes in an organization. An effective pay management system would likely improve employees’ morale and enhance organizational competitiveness in facing the challenges of the COVID-19 pandemic. Keywords: communication, interactional fairness, merit-based pay management, organizational commitment, performance assessment

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“…Isu ini juga telah menjadi fenomenon yang sangat impresif apabila kebanyakan kajian tentang sistem ganjaran organisasi yang diterbitkan dalam abad ke-21 mendedahkan bahawa amalan komunikasi terbuka dan/atau komunikasi berahsia yang diamalkan secara teratur dalam mentadbir SGBP dapat membangkitkan perasaan keadilan interaksi dalam diri pekerja. Seterusnya, perasaan keadilan ini pula boleh mendorong kepada peningkatan tahap komitmen pekerja kepada organisasi (Minibas-Poussard, Roy & Erkmen 2017;Marasi, Wall & Bennett 2018).…”

Section: Pernyataan Masalahunclassified

“…Dapatan kajian terkini membuktikan bahawa keadilan interaksi memainkan peranan yang sangat penting sebagai pemboleh ubah peramal kepada komitmen organisasi (Farzad & Saied 2018;Minibas-Poussard et al 2017). Malah, keadilan interaksi juga boleh bertindak sebagai pemboleh ubah pengantara dalam perhubungan di antara komunikasi dalam sistem ganjaran berasaskan prestasi dengan komitmen organisasi (Marasi et al 2018).…”

Section: Keadilan Interaksiunclassified

“…Seterusnya, perasaan keadilan ini boleh pula mendorong pekerja meningkatkan tahap komitmen organisasi. Penemuan kajian ini juga mendapat sokongan daripada kajian-kajian yang dilakukan oleh Carter et al (2014), Esse dan Aunemo (2017), Heffernan dan Dundon (2016), Marasi dan Bennett (2016) dan Marasi et al (2018) Manakala, dari sudut pemantapan kaedah penyelidikan, borang soal selidik kajian ini telah memenuhi tahap piawaian kesahan dan kebolehpercayaan yang ditetapkan. Keadaan ini boleh menghasilkan dapatan kajian yang tepat dan boleh dipercayai.…”

Section: Dapatan Pengujian Hipotesis H4 Dan H5unclassified

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Perhubungan di antara Komunikasi tentang Ganjaran Berasaskan Prestasi, Keadilan Interaksi dan Komitmen Organisasi

Razak

Ismail

Ali

et al. 2019

AJAG

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Tujuan kajian ini dijalankan adalah untuk menilai peranan keadilan interaksi sebagai pemboleh ubah pengantara dalam perhubungan di antara komunikasi tentang ganjaran berasaskan prestasi dan komitmen organisasi. Kaedah kaji selidik telah digunakan untuk mengumpul data daripada 310 pekerja di organisasi perkhidmatan pos dan kurir terbesar di Semenanjung Malaysia. Partial Least Square Structural Equation Modelling (PLS-SEM) telah digunakan dalam menganalisis data. Keputusan kajian menunjukkan dua dapatan penting: pertama, perhubungan di antara komunikasi terbuka, keadilan interaksi dan komitmen organisasi adalah signifikan. Kedua, perhubungan di antara komunikasi berahsia, keadilan interaksi dan komitmen organisasi adalah signifikan. Dapatan kajian ini telah mengesahkan bahawa kesan komunikasi tentang ganjaran berasaskan prestasi ke atas komitmen organisasi adalah dipengaruhi secara tidak langsung oleh keadilan interaksi. Dapatan kajian ini juga dapat memberi gambaran yang lebih jelas kepada para pengurus bahawa komunikasi tentang pengurusan ganjaran berasaskan prestasi adalah strategi yang sangat penting perlu digunakan untuk meningkatkan komitmen pekerja terhadap organisasi. Seterusnya, kajian ini menghuraikan perbincangan, implikasi dan kesimpulan. Kata kunci: komunikasi terbuka, komunikasi berahsia, ganjaran berasaskan prestasi; keadilan interaksi; komitmen organisasi.

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Pay openness movement: Is it merited? Does it influence more desirable employee outcomes than pay secrecy?

Cited by 23 publications

References 64 publications

Ignorance Is Bliss, or Is It? The Effects of Pay Transparency, Informational Justice and Distributive Justice on Pay Satisfaction and Affective Commitment

Ignorance Is Bliss, or Is It? The Effects of Pay Transparency, Informational Justice and Distributive Justice on Pay Satisfaction and Affective Commitment

Interactional Fairness as a Mediator Between Merit-Based Pay Management and Organizational Commitment

Perhubungan di antara Komunikasi tentang Ganjaran Berasaskan Prestasi, Keadilan Interaksi dan Komitmen Organisasi

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