A study of the relationships between compensation package, work motivation and job satisfaction

✍ Scribed by Jacques Igalens; Patrice Roussel

• Publisher: John Wiley and Sons
• Year: 1999
• Tongue: English
• Weight: 222 KB
• Volume: 20
• Category: Article
• ISSN: 0894-3796
• DOI: 10.1002/(sici)1099-1379(199912)20:7<1003::aid-job941>3.0.co;2-k

✦ Synopsis

This study applied the theoretical framework based on expectancy and discrepancy theories to examine how the elements of total compensation might in¯uence work motivation and job satisfaction. The principal dimensions of total compensation that give rise to distinct reactions among employees were examined. Two samples of employees, 269 exempt employees and 297 nonexempt employees, were studied separately in order to identify the dierences of reaction between these two groups. The relationships between the elements of total compensation, work motivation and job satisfaction were analysed by a structural equations model with LISREL VII. Proposals were developed to predict the conditions of compensation eciency on work motivation and job satisfaction in the cultural context of employment in France. The three principal conclusions of the study were: (1) under certain conditions, individualized compensation of exempt employees can be a factor of work motivation; (2) ¯exible pay of nonexempt employees neither motivates nor increases job satisfaction; (3) bene®ts of exempt and nonexempt employees neither motivate nor increase job satisfaction.