|
UPSI Digital Repository (UDRep)
|
|
| ||||||||||||||||||
| Abstract : |
| The main objective of this study is to examine the relationship between performance based pay management (i.e., communication and participation) and procedural justice. A survey methods were used to collect selfreport survey of employees in currier service company. The SmartPLS path model analysis revealed two main findings: first, communication was significantly correlated with procedural justice. Second, participation was significantly correlated with procedural justice. These findings demonstrate that the ability of managers to properly implement performance based pay management may invoke feelings of procedural justice among employees in the organization. This study provides three important implications: first, this study may serve great potential for understanding the effect of communication and, participation in strengthening perception of procedural justice among employees in the organization. Second, the survey questionnaire used in this study had satisfactorily met the standards of validity and reliability analyses. This may lead to produced accurate and reliable research findings. Third, this study may serve as a guide for practitioners to enhance the effectiveness of organization’s performance based pay management as an important instrument to motivate employee in supporting organization’s pay system, objectives and strategies. In addition, discussion, implications and conclusion are described |
| References |
1. Aimi, A., Azman, I., & Fatmawati, A. (2014). Administrator’s role in performance pay system as a determinant of job. Sains Humanika, 2(2), 11–17. 2. Auh, S., & Menguc, B. (2013). Knowledge sharing behaviors of industrial salespeople: An integration of economic, social psychological, and sociological perspectives. European Journal of Marketing, 47(8), 1333–1355. http://doi.org/10.1108/03090561311324354 3. Azman, I., Asilah, K. M. N., & Rahmad, R. M. (2016a). Relationship between performance appraisal communication , procedural justice and job satisfaction. Malaysian Journal of Society and Space, 12(2), 15–26. 4. Azman, I., Fuad, Z. M., & Aimi, A. (2015). Administrator’s role in performance based reward as a determinant of employee outcomes. Management & Marketing Journal, 13(1), 92–110. Retrieved from http://www.mnmk.ro/documents/2015_X1/8-7-1-15.pdf. 5. Azman, I., & Mohd Ridwan, A. R. (2016). Performance-based reward administration as an antecedent of job satisfaction: A case study of Malaysia ’ s fire and rescue agencies, 7(7), 107–118. 6. Azman, I., & Mohd Ridwan, A. R. (2017a). Managers’ roles in performance based reward enhancing employees’ feelings of procedural justice. KINERJA, 21(2), 145–158. 7. Azman, I., & Mohd Ridwan, A. R. (2017b). Performance-based reward administration enhancing employees’ feelings of interactional justice. Studies in Business and Economics, 12(1), 5–18. http://doi.org/10.1515/sbe-2017-0001 8. Azman, I., Ridwan, A. R. M., & Zalina, I. (2016b). Sub theme: Human resource management performance based pay management as a determinant of sub theme: of extrinsic and intrinsic job, 104–114. 9. Barclay, D., Higgins, C., & Thompson, R. (1995). The partial least squares (PLS) approach to causal modeling: Personal computer adoption and use as an illustration. Technology Study, 2(2), 285–309. 10. Biddle, B. J. (1986). Recent developments in role theory. Annual Review of Sociology, 12(1), 67–92. 11. Brebels, L., Cremer, D. De, & Dijke, M. Van. (2016). Using self-definition to predict the influence of procedural justice on organizational- , interpersonal- , and job / task-oriented citizenship behavior, 40(3), 731–763. http://doi.org/10.1177/0149206311410605 12. Cresswell, J. W. (1998). Qualitative Inquiry and Research Design: Choosing Among Five Traditions. London: SAGE publications. 13. Dar, Z., & Raja, N. S. (2014). Empirical study on the role of Procedural Justice in Performance appraisal on Turnover Intentions Mediating role of Organizational Politics, 16(1), 141–145. 14. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, XVIII(39–50). 15. Geisser, S. (1975). The predictive sample reuse method with applications. Journal of the American Statistical Association, 70(350), 320–328. 16. Graen, G. B., & Uhl-Bein, M. (1995). Relationship-based approach to leadership: Development of leader-member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain perspective. The Leadership Quarterly, 6(2), 219–247. 17. Hair Jr., J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd Ed.). United States of America: SAGE publications Inc. 18. Heffernan, M., & Dundon, T. (2016). Cross-level effects of high-performance work systems (HPWS) and employee well-being: the mediating effect of organisational justice. Human Resource Management Journal, 26(2), 211–231. 19. Henseler, J. (2012). Why generalized structured component analysis is not universally preferable to structural equation modeling. Journal of the Academy of Marketing Science, 40(3), 402–413. http://doi.org/10.1007/s11747-011-0298-6 20. Henseler, J., & Chin, W. (2010). A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Structural Equation Modeling: A Multidisciplinary Journal, 17(1), 82–109. http://doi.org/10.1080/10705510903439003 21. Henseler, J., Ringle, C. M., & Sarstedt, M. (2014). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. http://doi.org/10.1007/s11747-014-0403-8 22. Ismail, A., Mohamed, H. A.-B., Sahol Hamid, N., Zaidi Sulaiman, A., Girardi, A., & Bin Abdullah, M. M. (2011). Relationship between performance based pay, interactional justice and job satisfaction: a mediating model approach. International Journal of Business and Management, 6(11), 170–181. http://doi.org/10.5539/ijbm.v6n11p170 23. Ismail, A., Rahman, H. A., & Ismail, W. K. W. (2007). Moderating effect of procedural justice in the relationship between participation in pay systems and personal outcomes. Jurnal Kemanusiaan, 9, 83–96. 24. Martocchio, J. J. (2016). Strategic compensation: A human resource management approach (8th ed.). Boston, US: Pearson Education Limited. 25. Milkovich, G., Newman, J., & Gerhart, B. (2014). Compensation (4th ed.). New York: McGraw-Hill International. 26. Newman, J. M., Gerhart, B., & Milkovich, G. T. (2017). Compensation (12th ed.). McGraw-Hill International. 27. Nunnally, J. c., & Bernstein, I. H. (1994). Psychological theory. New York: MacGraw-Hill. 28. Osterloh, M. (2014). Viewpoint: why variable pay-for-performance in healthcare can backfire: Evidence from psychological economics. Evidence-Based HRM: A Global Forum for Empirical Scholarship, 2(1), 120–123. http://doi.org/10.1108/EBHRM-12-2013-0037 29. Proost, K. (2015). Organizational justice as buffer against stressful job demands. http://doi.org/10.1108/JMP-02-2013-0040 30. Ringle, C. M., Sarstedt, M., & Straub, D. (2012). A critical look at the use of PLS-SEM in MIS Quarterly. MIS Quarterly (MISQ), 36(1), iii–xiv. http://doi.org/10.3200/JOEB.79.4.213-216 31. Risher, H. (2014). Reward management depends increasingly on procedural justice. Compensation & Benefits Review, 46(3), 135–138. http://doi.org/10.1177/0886368714553775 32. Rozila, A., & Scott, N. (2015). Fringe benefits and organisational commitment: the case of Langkawi hotels. Tourism Review, 70(1), 13–23. http://doi.org/10.1108/TR-11-2013-0065 33. Salim, S. S., & Ismail, A. (2015). Adequacy of pay structure and its impact on personal outcomes. Economica, 11(6), 34–49. 34. Sekaran, U., & Bougie, R. (2010). Research Methods for Business: A Skill Building Approach. New York: John Wiley & Sons, Inc. 35. Shaed, M. M., Ishak, S., & Ramli, Z. (2015). Employee s ’ Participation in Decision Making (PDM): A literature survey, 13(13), 142–155. 36. Singh, P. S. P., & Rana, S. (2015). The Impact of Performance Appraisal on Organizational Commitment of Bank Employees, 4(4), 2964–2967. 37. Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society, 36(2), 111–147. 38. Takao, K., & Naomi Kodaman. (2015). Performance-related Pay and Productivity: Evidence from Japan (15-E-088). Japan. 39. Tremblay, M., & Landreville, P. (2015). Information Sharing and Citizenship Behaviors: Mediating the Roles of Empowerment, Procedural Justice, and Perceived Organizational Support. http://doi.org/10.1177/2329488414525459 40. Wahibur, R., & Arif, H. (2012). Transformational leadership and work Outcomes: organizational justice as mediator. World Review of Business Research, 2(4), 164–171. 41. Webb, J., Courtney, D., Stefanie, L. H., Laura, K. J., Webb, J., Courtney, D., … Barron, L. G. (2014). Organizational rewards: considering employee need in allocation. http://doi.org/10.1108/PR-09-2012-0156 42. Zhang, G., Lee, G., & Zou, X. (2010). The mediating role of procedural justice between participation in decision-making and organizational citizenship behavior: An empirical study about Skeleton government civilian in China. Psychology, 1(4), 300–304. http://doi.org/10.4236/psych.2010.14039 43. Zhang, Y., Long, L., & Zhang, J. (2015). Pay for performance and employee creativity: The importance of procedural justice and willingness to take risks. Management Decision, 53(7), 1378–1397. http://doi.org/10.1108/MD-11-2013-0596 44. Zou, L., Zhang, J., & Liu, W. (2015). Perceived justice and creativity in crowdsourcing communities: Empirical evidence from China. Social Science Information, 1–27. http://doi.org/10.1177/0539018415583382 |
| This material may be protected under Copyright Act which governs the making of photocopies or reproductions of copyrighted materials. You may use the digitized material for private study, scholarship, or research. |