Effect of manager's role in performance based pay on employee outcomes

Azman Ismail, Z. Mohammad Fuad, A. Aimi, M. Hasan Al-Banna, A. Rashidi

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

According to the recent literature pertaining on Islamic based organizational compensation, performance based pay consists of two essential features: communication and performance appraisal. Recent studies in this field highlights that the ability of managers to appropriately communicate pay information and appraise employee performance may have a significant impact on employee outcomes, especially job satisfaction and organizational commitment. Therefore, this study was undertaken to assess the relationship between manager's role in performance based pay and employee outcomes using self-administered questionnaires collected from employees at a district council in Peninsular Malaysia. The outcomes of the SmartPLS path model analysis showed that pay communication does not act as an important determinant of job satisfaction, but performance appraisal does act as an important determinant of job satisfaction. Conversely, pay communication and performance appraisal act as important determinants of organizational commitment. In addition, this study provides discussion, implications and conclusion.

Original languageEnglish
Pages (from-to)41-58
Number of pages18
JournalGlobal Journal Al-Thaqafah
Volume4
Issue number2
Publication statusPublished - 2014

Fingerprint

employee
manager
job satisfaction
performance
determinants
communication
commitment
model analysis
path analysis
Malaysia
Managers
Employees
district
Communication
Performance Appraisal
Job Satisfaction
questionnaire
ability
Organizational Commitment

Keywords

  • Compensation
  • Job satisfaction
  • Organizational commitment
  • Pay communication
  • Performance appraisal

ASJC Scopus subject areas

  • Arts and Humanities(all)
  • Cultural Studies

Cite this

Ismail, A., Mohammad Fuad, Z., Aimi, A., Hasan Al-Banna, M., & Rashidi, A. (2014). Effect of manager's role in performance based pay on employee outcomes. Global Journal Al-Thaqafah, 4(2), 41-58.

Effect of manager's role in performance based pay on employee outcomes. / Ismail, Azman; Mohammad Fuad, Z.; Aimi, A.; Hasan Al-Banna, M.; Rashidi, A.

In: Global Journal Al-Thaqafah, Vol. 4, No. 2, 2014, p. 41-58.

Research output: Contribution to journalArticle

Ismail, A, Mohammad Fuad, Z, Aimi, A, Hasan Al-Banna, M & Rashidi, A 2014, 'Effect of manager's role in performance based pay on employee outcomes', Global Journal Al-Thaqafah, vol. 4, no. 2, pp. 41-58.
Ismail A, Mohammad Fuad Z, Aimi A, Hasan Al-Banna M, Rashidi A. Effect of manager's role in performance based pay on employee outcomes. Global Journal Al-Thaqafah. 2014;4(2):41-58.
Ismail, Azman ; Mohammad Fuad, Z. ; Aimi, A. ; Hasan Al-Banna, M. ; Rashidi, A. / Effect of manager's role in performance based pay on employee outcomes. In: Global Journal Al-Thaqafah. 2014 ; Vol. 4, No. 2. pp. 41-58.
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