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Employee's Preference of the Allocation Principles and Job Satisfaction

Abstract

The present research was intended to examine the individual preference of allocation principle and the relationship among equity perception, job satisfaction, and turnover intention. For these purpose, a wide variety of measures of inputs and outcomes were listed and then classified into four categories, respectively. This research was conducted in a field setting. Participants of the research were 591 company workers. Workers preferred an equality allocation the most in a case of regular salary, an equity allocation the most in a case of allowance, and a compromise allocation the most in a case of bonus. For bonus, male workers preferred the equity allocation while female workers preferred the equality allcation. Workers with high inputs preferred the equity allocation. The result of multiple regression analysis and path analysis supported the mediating role of job satisfaction in explaining the relationship between equity perception and turnover intention. Although this research had a limitation of generalizability, it provided the basis of applicability of equity theory in field settings by considering the relative importance of a variety of input and outcome measures.

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