Abstract
In recent days, employees are considered as an important asset of an organisation and their commitment plays a vital role in achieving sustainable growth of the organisation. The employee commitment always plays a very predominant role in achieving the vision and mission of the organisation. The employee commitment was identified as a baseline for the performance of the company. This commitment is said to have a relationship with the compensation what employee receives. It is predicted that employee commitment may be increased when the employee are satisfied by the elements of compensation. Hence the researcher focuses on the relationship between compensation and commitment, factors of compensation affecting employee commitment, and identifies the employee’s perception towards the components of pay model. The researcher has conducted the study with 300 samples collected from small manufacturing industries in Tiruchirappalli District, Tamil Nadu, India. Researcher has applied tools like ANOVA, Chi-square test, Structural Equation Modelling for the purpose of analysing the relationship between employee compensation and their commitment. The study outcome revealed that employee commitment was strongly associated with the satisfaction of employees towards their compensation based on pay model. DOI: 10.5901/mjss.2015.v6n5p335
Highlights
Employee commitment means employee’s psychological and physical engagement at their work
Employee compensation showing a predominant role and employee commitment is acting as a bond to create a healthy employment relationship with in the organisation which leads to better organization performance
Out of the total respondents 50% of respondents belong to the age group 21-25years. 27% belong to the age group 1820 years.20% belong to the age group of 26-30.69% are male and 31% are female.90% of the respondents are workers. 30% of respondents are officers.66% of respondents have finished diploma. 29% of respondents have finished UG. 5% of respondents have finished PG.6% of the respondents are receiving salary of range 7000-10000.39% of respondents are receiving salary of range 4000-6000. 10% of the respondents are receiving salary of range 1000-3000
Summary
Employee commitment means employee’s psychological and physical engagement at their work. Employee commitment plays a very predominant role in achieving the goals of the company within the predetermined period. Nowadays in the competitive world, as many manufacturing industry are going for alliances and the work stress of the employee said to be increases, this may affect the commitment of the employee. Commitment of the employee is influenced by various factors like organisational culture, critical success factors, standards and benefits. The term compensation means any form of payment made to an individual for the work done for the organisation or any form of service rendered to the company. When the employee is satisfied with appropriate type of compensation, their commitment may be increased or maintained. The executive must design the compensation structure based on the employee needs to obtain their commitment for the organisation
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