Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

An Evaluation of the Impact of Remuneration on Employee Attitude and Performance in Organizations

Mohammad Nashwan Alwaki

http://dx.doi.org/10.6007/IJARBSS/v8-i7/4383

Open access

Everyone works for rewards, either in the form of pre-determined salaries, wages or some other benefits or any bonuses and remunerations for certain performance. Individuals seek for being compensated fairly and are only satisfied if they get the expected rewards resulting for their performance. Thus, current study investigates whether remuneration influences employees’ performance through influencing employees’ attitudes. Current study proposes that remuneration influences employees’ performance while employees’ attitude mediates the relationship between these two. A sample of 200 respondents from listed companies of Amman stock exchange is studied and implementing structural equation modeling it is found that in manufacturing organizations remuneration significantly influences employees’ attitude that ultimately influences their performance. Hence, remuneration has significant influence on employees ‘performance but by influencing their attitudes towards their jobs.

Amman Stock Exchange. “Listed Equities”. Retrieved from: https://www.ase.com.jo/en/equities [June 13, 2018]. 2018.
Bakker, A. B. & Demerouti, E. “The job demands–resources model: State of the art”. Journal of Managerial Psychology. Volume. 22. Pages. 309-328, 2007.
Bakker, A. B., Hakanen, J. J., Demerouti, E. & Xanthopoulou, D. “Job resources boost work engagement, particularly when job demands are high”. Journal of Applied Psychology. Volume. 99. Pages. 274?284, 2007.
Bauer, T. N., Erdogan, B., Liden, R. C. & Wayen, S. J. “A Longitudinal Study of the Moderating Role of Extraversion: Leader-Member Exchange, Performance, and Turnover During New Executive Development. Journal of Applied Psychology. Volume. 91. Pages. 298-310, 2006.
Calvin, O. Y. 2017. The Impact of Remuneration on Employees’ Performance (A Study of Abdul Gusau Polytechnic, Talata-Mafara and State College of Education Maru, Zamfara State). Arabian Journal of Business and Management Review. Nigerian Chapter. Vol. 4. No. 2. Pp. 34-43.
Christensen, A. L. “Linking Ethical Leadership to Employee Performance: The Role of Leader Member Exchange, Self-Efficacy, and Organizational Identification”. Organizational Behaviour and Human Decision Process. Volume. 115. Number. 2. Pages. 204-213, 2011.
Coyle, S. J. A. & Conway, N. “The Employment Relationship through The Lens of Social Exchange”. In Shapiro, J. A. M., Shore, L. M. Taylor, S. M. & Tetrick, L. (Eds.). The Employment Relationship: Examining Psychological and Contextual Perspectives. Oxford, UK. Oxford University Press. Pages. 5-28, 2004.
Cropanzano, R. & Mitchell, M. S. “Social exchange theory: An interdisciplinary review”. Journal of Management. Volume. 31. Pages. 874?900, 2005.
Cropanzano, R., Bowen, D. E. & Gilliland, S. W. “The management of organizational justice”. Academy of Management Perspectives. Volume. 21. Pages. 34?48, 2007.
Crossman, A. & Zaki, A. “Job Satisfaction and Employee Performance of Lebanese Banking Staff”. Journal of Managerial Psychology. Volume. 18. Issue. 4. Pages. 368-376, 2003.
DeCremer, D., Brebels, L. & Sedikides, C. “Being Uncertain about What? Procedural Fairness Effects as a Function of General Uncertainty and Belongingness Uncertainty”. Journal of Experimental Social Psychology. Volume. 44. Pages. 1520-1525, 2008.
Detert, J. R., Trevino, L. K., Burris, E. R. & Andiappan, M. “Managerial modes of influence and counterproductivity in organizations: A longitudinal business unit-level investigation”. Journal of Applied Psychology. Volume. 92. Pages. 993–1005, 2007.
Knippenberg, D., Dick, R. & Tavares, S. “Social identity and social exchange: Identification, support, and withdrawal from the job”. Journal of Applied Social Psychology. Volume. 37. Pages. 457–477, 2007.
Luthans, F., Norman, S. M., Avolio, B. J. & Avey, J. B. “The Mediating Role of Psychological Capital in The Supportive Organizational Climate Employee Performance Relationship”. Journal of Organizational Behaviour. Volume. 29. Pages. 219-238, 2008.
Malhotra, N., Budhwar, P. & Prowse, P. “Linking Rewards to Commitment: An Empirical Investigation of Four UK Call Centres”. The International Journal of Human Resource Management. Volume. 18. Number. 12. Pages. 2095-2128, 2007.
Masterson, S. S., Lewis, K., Goldman, B. M. & Taylor, M. S. “Integrating justice and social exchange: The differing effects of fair procedures and treatment on work relationships”. Academy of Management Journal. Volume. 43. Pages. 738–748, 2000.
Peterson, S. J., Luthans, F., Avolio, B. J., Walumbwa, F. O. & Zhang, Z. “Psychological Capital and Employee Performance: A Latent Growth Modelling Approach”. Personnel Psychology. Volume. 64. Issue. 2. Pages. 287-315, 2011.
Shields, J., Brown, M., Kaine, S., Samuel, C., Samardzic, A., McLean, P., Johns, R. Leary, P., Plimmer, G. & Robinson, J. “Managing Employee Performance & Reward: Concepts, Practices, Strategies”. 2nd Edition. Cambridge University Press. London. 2015.
Wayne, S. J., Shore, L.

In-Text Citation: (Alwaki, 2018)
To Cite this Article: Alwaki, M. N. (2018). An Evaluation of the Impact of Remuneration on Employee Attitude and Performance in Organizations. International Journal of Academic Research in Business and Social Sciences, 8(7), 410–420.