Abstract
<p>This research examines the relationship between financial compensation and organizational commitment among workers in the banking industry, Malaysia. This research is significant in addressing the preceding gap on the types of financial compensation such as salaries, bonuses and merit pay with a stronger relationship with organizational commitment. Although these variables have been widely studied, few studies have explored their relationship to organizational commitment. Quantitative methodology is utilized to explore the relationship between financial compensation and organizational commitment. In data collection, a questionnaire was administered among 150 workers working in several selected banks in Bera; a town situated in the state of Pahang, Malaysia. Simple random sampling was used to select the respondents in the survey. The research findings showed that there is a significant relationship between financial compensation such as salaries, bonuses and merit pay and organizational commitment. Besides that, merit-based pay is identified as the dominant factor in influencing the organizational commitment among the bank workers under study. The research findings contribute to a better understanding for all related parties on the application of theories and model in relation with financial compensation aspects and organizational commitment. </p>
Highlights
This research is to determine the relationship between financial compensation and organizational commitment among workers in the organization
The variables of financial compensation and organizational commitment have been widely researched, this study aims to determine the type of financial compensation with a stronger relationship towards organizational commitment among the workers in selected banks in Malaysia
The research findings and discussion in this study are reported based on the stated objectives in a bid to systematically present the findings to readers
Summary
This research is to determine the relationship between financial compensation and organizational commitment among workers in the organization. Retention of workers lead to organizational commitment as well as minimizing the turnover rate in the organization (Studies prove, 2014). Committed workers who are satisfied with the job have low intention to leave the organization; thereby reducing workers’ absenteeism and turnover rate in the organization (Ismail, 2012). Past research has shown that there is a positive relationship between compensation and organizational commitment. Organizations provide such financial compensation as the strategy in human resource management to improve organizational commitment among the workers (Ahmad, Toh, & Bujang, 2013)
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