Organizational Compensation Systems Research Articles

Employee Commitment: Through Training Opportunities and Organization Compensation System

In today's competitive world, organizations were forced to operate at their maximum rates. To ensure that becomes reality, every worker must be committed to the organizational goals and operates as an efficient member of the organization. However, examining employees’ commitment can be challenging as it might be influenced by various factors. Thus, this study aimed to determine the factors that influence employee commitment in one of established corporate companies in Malaysia. To attain this, the study has explored the relationship between training and development opportunities and organization compensation and benefit towards employee commitment. This study employed a set of self-administered questionnaire to collect empirical data from 154 respondents working at the subsidiaries of the corporate company. A Multiple Regression Analysis was performed to investigate the effect of training and development opportunities and organization compensation benefits towards employee commitment. In the regression analysis, the R-Square value of 0.603 implies that the independent variables explain 60.3% of the variance in employee commitment. This study suggests that the company should allocate more valuable programs and increase hours for training and development opportunities as much as designing an effective and attractive compensation package to increase employee commitment.

The Relative Importance of the Dimensions of Organizational Justice at Iranian Public Organization's Compensation System

As human resources have become viewed as more critical to organizational success, many organizations have realized that it is the people in an organization that can provide a competitive advantage (Gratton, 1998, pp: 13-14). Some ways that human resources become a competitive advantage are through attracting and retaining employees with unique professional and technical capabilities, investing in training and development of those employees, and compensating them in ways that keep them competitive with their counterparts in other organizations (Barney & Wright, 1998, pp: 31-46).The aim of this study is to find the relative importance and prioritization of organizational justice dimensions in Iranian public organization's compensation system. The research method is a descriptive one-and simple stratified random sampling was applied in selecting the sample population and then based on Morgan's sample volume formula 150 questionnaires were distributed. The validity of the study was confirmed through using expert support and questionnaires, reliability and measuring Cranach's alpha (=./83). For data analysis the relative importance technique was applied. The finding of this research indicate that distributive justice (2=./295) has the highest relative importance and has the greatest effect on the effectiveness of human resources management in the research findings some recommendations are provided to improve the justice perception in compensation system in public organizations.

Management Appraisal at Attock Refinery Limited (A) and (B)

In early 1999, the management of Attock Refinery Ltd. (ARL) was evaluating its performance appraisal system which was criticized for its subjectivity, inadequacy in differentiating between high performances and low performances, and weak linkage to organization's compensation system and strategy. Mr. Adil Khattak, Assistant General Manager Human Resources and his team in this HR department must take steps to address these concerns and at the same time consider the implications of a changing business environment. The first case examines and identifies the issues related to performance appraisal systems in the face of changes in the environment and corporate strategies. The second case presents a new appraisal system and allows case analysts to assess the improvements and fit of the new system with current situations.