- Log In/Sign Up
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
The Relationship between Structural Compensation and Organizational Effectiveness of Distribution Industry
PARK, Hyeyoon
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
Reference
Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63, 1-18.
Allen, R. S., & Kilmann, R. H. (2011). The role of the reward system for a total quality management based strategy. Journal of Organizational Change Management, 14(2), 110-131.
Bartol, K. M., & Srivastava, A. (2016). Encouraging knowledge sharing: The role of organizational reward systems. Journal of Leadership & Organizational Studies, 9(1), 64-76.
Colquitt, J. A., Scott, B. A., Rodell, J. B., Long, D. M., Zapata, C. P., Conlon, D. E., & Wesson, M. J. (2013). Justice at the millennium, ad decade later: A meta-analysis test of social exchange and affect-based perspectives. Journal of Applied Psychology, 98(2), 199-236.
Ferreira, M. R. (2015). Strategic planning and organizational effectiveness in social service organizations in Portugal management. Journal of Contemporary Management Issues, 20(2), 1-21.
Folger, R., & Konovsky, M. A. (1989). Effects of procedural and distributive justice on reactions to pay raise decision. Academy of Management Journal, 32, 115-130.
Greckhamer, T. (2011). Cross-cultural differences in compensation level and inequality across occupations: A set-theoretic analysis. Organization Studies, 32(1), 85-115.
Greenberg, J., & Lind E. A. (2000). The pursuit of organization justice: From conceptualization to implication to application. Industrial and Organizational Psychology, 21, 72-108.
Greguras, G. J., & Diefendorff J. M. (2009). Different fits satisfy different needs: linking person-environment fit to employee commitment and performance using self-determination theory. Journal of Applied Psychology, 94(2), 465-477.
Hwang, S. Y., & Jung, H. J. (2018). The interactive effects of motivation and contingent rewards on employee creativity. International Journal of Industrial Distribution & Business, 9(7), 71-82.
Kim, B. I., & Kim, B. G. (2020). Job satisfaction and organizational commitment and effect of HRD in logistics industry. Journal of Distribution Science, 18(4), 27-37.
Koys, D. J. (2001). The effects of employee satisfaction, organizational citizenship behavior, and turnover on organizational effectiveness: A unit level, longitudinal study. Personal Psychology, 54(1), 101-114.
Lyu, M. K., & Yang, H. C. (2013). The effect of trust and justice on relation satisfaction and long-term commitment in franchise business. Journal of Distribution Science, 11(1), 25-34.
Martono, S., Khoiruddin, M., Wijayanto, A., Ridloah, S., Wlansari, N. A., & Udin, U. (2020). Increasing team-work, organizational commitment and effectiveness through the implementation of collaborative resolution. Journal of Asian Finance, Economics and Business, 7(6), 427-437.
Milkovich, G. T., Newman, J. M., & Gehart, B. (2011). Compensation. McGraw Hill International ed.
Mosquera, P., Soares, M. E., & Oliveira, D. (2020). Do intrinsic rewards matter for real estate agents? Journal of European Real Estate Research, 13(2), 207-222.
Nicolai, J. F. (2010). Awards as compensation. European Management Review, 4(1), 21-23.
Park, S. Y. (2020). Study on distributive and procedural justice of flight attendant. Journal of Distribution Science, 18(3), 43-51.
Poon, J. M. (2012). Distributive justice, procedural justice, effective commitment, and turnover intention: A mediation–moderation framework. Journal of Applied Social Psychology, 42(6), 15050-1532.
Prayitno, A., Waluyo, D. E., & Suhana, S. (2020). Mediating roles of job satisfaction toward the organizational commitment of employees in the public sector Kusni INGSIH. Journal of Asian Finance, Economics and Business, 7(10), 999–1006.
Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600-619.
Salman, A. (2013). Assessment of LMX as mediator in procedural justice -organizational citizenship behavior relationship. East Asian Journal of Business Economics, 1(1), 1-7.
Schminke, M., Ambrose, M. L., & Cropanzano, R. S. (2000). The effect of organizational structure on perceptions of procedural fairness. Journal of Applied Psychology, 85(2), 294-304.
Stephen, A., Stumpf, W. G., Tymon, N. F., & Richard, R. S. (2013). Employees and change initiatives: intrinsic rewards and feeling valued. Journal of Business Strategy, 34(2), 21-29.
Thanh, V. B., & Toan, N. V. (2018). The relationship between organizational justice and social loafing in Ho Chi Minh city, Vietnam. Journal of Asian Finance, Economics and Business, 5(3), 179-183.
Thomas, L., Ambrosini, V., & Hughes, P. (2019). The role of organizational citizenship behavior and rewards in strategy effectiveness. International Journal of Human Resource Management, 30(18), 2628-2660.
Wang, Q., Craighead, C. W., & Li, J. J. (2014). Justice served:Mitigating damaged trust stemming from supply chain disruptions. Journal of Operations Management, 32(6), 374-386.
Williams, M. L., McDaniel, M. A., & Ford, L. R. (2007). Understanding multiple dimensions of compensation satisfaction. Journal of Business and Psychology, 21(3), 429-459.
Zoghbi-Manrique-de-Lara, P., & Ding, T. (2017). Task and contextual performance as reactions of hotel staff to labor outsourcing: The role of procedural justice. Journal of Hospitality and Tourism Management, 33, 51-61.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations