Abstract

The main aim of this article is to investigate how the unjust compensation structure affects the motivation, contentment, and performance of Pakistani healthcare professionals working for different healthcare institutions. The theoretical foundation of this study is based on equity theory. The authors administered a self-completed structured questionnaire survey to 381 employees from a variety of organizational sectors, using a PLS-SEM technique to analyze the relationships between variables. The outcomes from this research show that perceived unfair compensation decreases organizational commitment, organizational citizenship behavior, job satisfaction, and performance. The findings contribute to the theoretical understanding of compensation equity and offer practical recommendations for human resource managers to improve organizational success through the correction of pay disparities. It highlights the broader importance of equitable remuneration practices in all businesses. A future study could broaden its scope by incorporating longitudinal and cross-national studies to further corroborate the findings.

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