Inequity in pay structures or low pay are great causes of dissatisfaction and can drive some employees to quit. Again, a new worker may wonder why the person next to him is receiving a higher wage for what is perceived to be the same work. You should have a wage and job evaluation system in place not only so that you are sure to comply with legal requirements, but also to avoid this problem. The salary or wages can also be an important deciding factor in employees decision to stay or leave. The data suggests dissatisfaction with pay can be a key factor in turnovers .
In a study conducted by Aidla, (2013) examining how perception of negative inequity at work influence individual behavior at work adopted fairness, unfairness and situation as indicators for measuring inequity. However, the study concludes that employees will decreased performance when they experience inequity by change their outcome. Sharma, Borna & Steams, (2009) suggests that if employees value fair treatment by the organization and perceive that they are indeed treated fairly, they will be committed to the organization. Thus feel grateful to respond by providing something of value in return. Likewise, Nadiri, Tanova, (2010) suggest that the fairness of personal outcomes that employees receive may have more impact on their performance and turnover intentions.
The key to understanding social comparison theories is the idea of perceived fairness. These theories help explain how two people with the same experience, job title, job responsibilities, and pay may have different perceptions of fairness. One employee may be entirely satisfied with the pay, and the other may feel cheated and act accordingly. To reduce these feelings, the dissatisfied employee would change the quality or quantity of their input. The result could be increased absenteeism, lower quality work, less quantity or even quitting the
Adams theory points out that there are two components in the employer-employee exchange, that is, inputs and outputs. Inputs are what the employee expects to get in return for their participation and sharing of information including education, experience or training. The outputs are the outcomes the organisation provides, such as pay, benefits and recognition. Bennett (1997) contends that individuals compare the returns they are experiencing with the rewards given to other employees, in relation to the effort they contribute to their jobs. If an individual believes that the return they are getting is equal to that of other employees, then the individual will be content.
Workers seek a fair balance between what they put into their jobs (inputs) and what they get out of it (outcomes); employees want to be treated fairly and likely to compare their treatment to that of their peers. This theory recognizes the motivational force of organizational space when rewarding for performance and how favoritism and inequities in the system can lead to job dissatisfaction and
Schliemann, (1987) in his article mentioned that organizations aim at maximizing their labor output by minimizing labor cost. The major labor costs come from direct compensation and fringe benefits. For this reason organizations need to use compensation and benefit policies that improve output yields while controlling costs. Employee compensation and benefits package play a strategic role in raising organizational performance and profitability (R. Mangel, M. Useem, 2000) Organizations need to communicate to employees about the compensation and benefits package being offered and must allow them to participate in the compensation and benefits decision making process. Employees are often unfamiliar with the value of their benefit packages.
Job enjoyment is related to the nature and operation of work. If the job provides a worker low independence, insecurity and lack of hope for promotion, it collectively leads to dissatisfaction with the job part of workers. While relating job satisfaction with the performance; it is observed that matured and satisfied workers serve more efficiently as compared to the dissatisfied workers. As workers are the frontline of the organization and can influence the satisfaction of the clients. Therefore a satisfied worker can be able to serve a customer well.
H4: negative relationship between the organizational commitment and turnover intentions. H5: negative relationship between organizational citizenship behavior and turnover intentions. (Anon., 2011) Conclusion Therefore to satisfy employees through the use of motivational techniques help employees to be committed towards the organization. This in turn effects the citizenship behaviors that will aid in the work of the organization in a better way. Such employees are likely to stay in their current organization.
In their article Porter & Lawler, embrace the notion intrinsic and extrinsic instrument to self-worth“effective performance would lead to both intrinsic and extrinsic rewards, which would in turn produce total job satisfaction” (Porter and Lawler 1968, p.3). In the context of the workplace there are other instrument to self-worth other than wages that enables the employee to recognize his self-worth. For example, employees often feels recognized when they are appreciated in the workplace like being motivated by managers, promoted and being part of the team. Furthermore incentives in the form of wages often lack value in situations where other issues like discrimination in a workplace exist. In situation where employees feel unappreciated and discriminated, the monetary value of doing that job becomes meaningless and
Despite that, managers whom remains may fear of losing their jobs and will reduces jobs securities. Plus, delayering may results in outsourcing of some functions where manager responsibilities are much bigger and they have to bear all the burden themselves. Not only it will increase the levels of stress, the outcomes and decision making may not be as good quality as when working with more people. The article reviewed that the impacts of downsizing and delayering process on managers, first and foremost is related to managers ability to develop and grow in the organisation. Followed by, how managers encompasses their roles and treatment on other employees.