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ISSN : 1738-3110
The Relationship between Structural Compensation and Organizational Effectiveness of Distribution Industry
PARK, Hyeyoon
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Abstract
Purpose: The purpose of this study is to identify the maximum organizational effectiveness of compensation systems in the distribution industry. It is to identify the relationship between structural compensation and organizational effectiveness. It also aims to clarify whether distributive justice plays as a controlling variable between two variables. Research design, data and methodology: This study was conducted on distribution industry employees. The questionnaire was collected through self-subscription. A total of 209 questionnaires were collected during the month of April 2021, of which 203 were used as valid samples. Results: Structural compensation have been shown to have a positive impact on two sub-factors of organizational effectiveness. In the verification of the controlling effect of distributive justice, perceived fairness has a control effect on the relationship between extrinsic compensation and organizational effectiveness but it does not show a controlling effect on the relationship between intrinsic compensation and organizational effectiveness. Conclusions: Structural compensation has a positive effect on organizational effectiveness. The distribution industry should aware of the compensation and the perceived fairness. The fairness of distribution plays a role in identifying the recognition of compensation and organizational feasibility, identifying motivations of employees, and mediating proper strategies to enhance job satisfaction.
- keywords
- Structural Compensation, Extrinsic Compensation, Intrinsic Compensation, Organizational Effectiveness, Perceived Fairness, Distributive Justice
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