Investigating the Effect of Compensation on Individual Performance: A Study on the Mediating Role of Internal Motivation and the Moderating Role of Self-efficacy and Reward Expectancy
Objective: Compensation is the most important part of the employment relationship and is, of course, one of the heaviest costs of any organization. Human resource managers as well as management theorists have always sought to answer the question of how compensation for services affects people's...
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| Format: | Article |
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University of Tehran
2018-09-01
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| Series: | مدیریت بازرگانی |
| Subjects: | |
| Online Access: | https://jibm.ut.ac.ir/article_51039_82359964f01d1a51f79021886496fe3e.pdf |
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| author | Ali Divandari Mohsen Nazari Seyed Reza Seyed Javadin Abbasali Haji Karimi Hamzeh Rayej |
| author_facet | Ali Divandari Mohsen Nazari Seyed Reza Seyed Javadin Abbasali Haji Karimi Hamzeh Rayej |
| author_sort | Ali Divandari |
| collection | DOAJ |
| description | Objective: Compensation is the most important part of the employment relationship and is, of course, one of the heaviest costs of any organization. Human resource managers as well as management theorists have always sought to answer the question of how compensation for services affects people's performance. This research has been conducted to explain the relationship between service compensation and individual performance in response to this fundamental question.
Methods: This research was carried out using hierarchical regression method - based on real salary information. A questionnaire was used to collect data from 1950 employees of Mellat Bank throughout the country.
Results: The results of this study indicate that the effects of pay for performance on employee performance are higher than fixed payments. In addition, self-success and the expectation of receiving rewards in the relationship between performance-based pay and individual performance play a moderating role. Also, based on the results of hierarchical regression, the mediating role of internal motivation in the relationship between payment and individual performance was not confirmed.
Conclusion: The relationship between payment and performance is positive and significant, and the effect of pay for performance on individual performance is more than base-pay. Self-efficacy also has a moderating role in the relationship between performance pay and individual performance. This is a major consequence of the pay structure of the banking industry in Iran (and of course most of the Iranian organizations). |
| first_indexed | 2024-12-13T05:21:49Z |
| format | Article |
| id | doaj.art-59ba30d29942458f9595a7d5b08ffe07 |
| institution | Directory Open Access Journal |
| issn | 2008-5907 2423-5091 |
| language | fas |
| last_indexed | 2024-12-13T05:21:49Z |
| publishDate | 2018-09-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | مدیریت بازرگانی |
| spelling | doaj.art-59ba30d29942458f9595a7d5b08ffe072022-12-21T23:58:17ZfasUniversity of Tehranمدیریت بازرگانی2008-59072423-50912018-09-0110367369410.22059/jibm.2014.5103951039Investigating the Effect of Compensation on Individual Performance: A Study on the Mediating Role of Internal Motivation and the Moderating Role of Self-efficacy and Reward ExpectancyAli Divandari0Mohsen Nazari1Seyed Reza Seyed Javadin2Abbasali Haji Karimi3Hamzeh Rayej4Prof. in Business Management, Faculty of Management, University of Tehran, IranAssociate Prof. in Business Management, Faculty of Management, University of Tehran, IranProf. in Human Resource Management, Faculty of Management, University of Tehran, IranProf. in Human Resource Management, Faculty of Management and Accounting, University of Shahid Beheshti, Tehran, IranPhD. in Human Resource Management, Faculty of Management, University of Tehran, IranObjective: Compensation is the most important part of the employment relationship and is, of course, one of the heaviest costs of any organization. Human resource managers as well as management theorists have always sought to answer the question of how compensation for services affects people's performance. This research has been conducted to explain the relationship between service compensation and individual performance in response to this fundamental question. Methods: This research was carried out using hierarchical regression method - based on real salary information. A questionnaire was used to collect data from 1950 employees of Mellat Bank throughout the country. Results: The results of this study indicate that the effects of pay for performance on employee performance are higher than fixed payments. In addition, self-success and the expectation of receiving rewards in the relationship between performance-based pay and individual performance play a moderating role. Also, based on the results of hierarchical regression, the mediating role of internal motivation in the relationship between payment and individual performance was not confirmed. Conclusion: The relationship between payment and performance is positive and significant, and the effect of pay for performance on individual performance is more than base-pay. Self-efficacy also has a moderating role in the relationship between performance pay and individual performance. This is a major consequence of the pay structure of the banking industry in Iran (and of course most of the Iranian organizations).https://jibm.ut.ac.ir/article_51039_82359964f01d1a51f79021886496fe3e.pdfReward expectancymotivationPay for performancecompensationSelf efficacy |
| spellingShingle | Ali Divandari Mohsen Nazari Seyed Reza Seyed Javadin Abbasali Haji Karimi Hamzeh Rayej Investigating the Effect of Compensation on Individual Performance: A Study on the Mediating Role of Internal Motivation and the Moderating Role of Self-efficacy and Reward Expectancy مدیریت بازرگانی Reward expectancy motivation Pay for performance compensation Self efficacy |
| title | Investigating the Effect of Compensation on Individual Performance: A Study on the Mediating Role of Internal Motivation and the Moderating Role of Self-efficacy and Reward Expectancy |
| title_full | Investigating the Effect of Compensation on Individual Performance: A Study on the Mediating Role of Internal Motivation and the Moderating Role of Self-efficacy and Reward Expectancy |
| title_fullStr | Investigating the Effect of Compensation on Individual Performance: A Study on the Mediating Role of Internal Motivation and the Moderating Role of Self-efficacy and Reward Expectancy |
| title_full_unstemmed | Investigating the Effect of Compensation on Individual Performance: A Study on the Mediating Role of Internal Motivation and the Moderating Role of Self-efficacy and Reward Expectancy |
| title_short | Investigating the Effect of Compensation on Individual Performance: A Study on the Mediating Role of Internal Motivation and the Moderating Role of Self-efficacy and Reward Expectancy |
| title_sort | investigating the effect of compensation on individual performance a study on the mediating role of internal motivation and the moderating role of self efficacy and reward expectancy |
| topic | Reward expectancy motivation Pay for performance compensation Self efficacy |
| url | https://jibm.ut.ac.ir/article_51039_82359964f01d1a51f79021886496fe3e.pdf |
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