Journal of Management Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Effect of Pay Satisfaction in Information Technology Enabled Sector in India


Affiliations
1 Research Analyst Credit Suisse Business Analytics Hiranandani Business Park, Mumbai 400076
     

   Subscribe/Renew Journal


This paper explores the relevance of pay satisfaction in generating desired organizational outcomes among the technically qualified workforce in the Indian IT and IT enabled sector and the relationship between social communications as a means of pay comparison affecting pay satisfaction. The results of the study suggest that a strong relationship exists between pay satisfaction and social comparison. However, its strength varies at different levels of hierarchy. The study also explores the various mechanisms of social comparison namely social contact and task interdependence and finds out that both the factors weakly influence pay satisfaction.

Keywords

Pay Satisfaction, Social Comparison, Task Interdependence
User
Notifications

  • Aiken, L. S. and West, G. S. (1991), Multiple Regression: Testing and Interpreting Interactions, Sage Publications.

  • Atlas, T. (2005), Bangalore's Big Dreams, US News and World Report.

  • Bahl, K. and Gulati, N. (2007), Pay Satisfaction of Software Professionals in India, Vikalpa, 32(3): 9-21.

  • Baron, J. N. and Pfeffer, J. (1994), The Social Psychology of Organizations and Inequality, Social Psychology Special Issue: Conceptualizing Structure in Social Psychology Quarterly, 57(3): 190-209

  • Batt, R., Doellgast, V., Kwon, H. and Agarwal, V. (2005), Service Management and Employment Systems in U.S. and Indian Call Centres [with Comment and Discussion], Brookings Trade Forum, Off shoring White-Collar Work .

  • Blaike, N. (2000), Designing Social Research, Polity Press.

  • Blood, M. R. and Mullet, G. M. (1977), Where Have All the Moderators Gone? The Perils of Type I and Type II Errors, College of Industrial Management, Georgia Institute of Technology.

  • Bloom, M. and Michel, G. J. (2002), The Relationship among Organizational Context, Pay Dispersion and Managerial Turnover, Academy of Management Journal, 45(1): 33-42

  • Bloom, M. (1999),The Performance Effects of Pay Dispersion on Individuals and Organizations, The Academy of Management Journal, 42(1): 25-40

  • Bordia, P. and Blau, G. (2003), Moderating Effects of Allocentrism on the Pay Referent Comparison-Pay Level Satisfaction Relationship, Applied Psychology, 52(4): 499-514.

  • Brown, P. M., Sturman, M. and Simmering, J. M. (2003), Compensation Policy and Organizational Performance: The Efficiency, Operational, and Financial Implications of Pay Level and Pay Structure, Academy of Management Journal, 46(6): 752-762.

  • Bryman, A. and Bell, E. (2003), Business Research Methods, Oxford University Press.

  • Capelli, Peter and Sherer, Peter D. (1988), Satisfaction, Market Wages and Labour Relations: An Airline Study, Industrial Relations: A Journal of Economy and Society, 27(1): 56-73.

  • Centers , R. and Cantril, H. (1946), Income Satisfaction and Income Aspiration, Journal of Abnormal and Social Psychology, 41(1):64- 69.

  • Cohen, J. and Cohen, P. (1975), Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences, Lawrence Erlbaum Associates, Hillsdale, NJ.

  • Cowherd, D. M. and Levine, D. L. (1992), Product Quality and Pay Equity between Lower Level Employees and Top Management and Investigation of Distributive Justice Theory, Administrative Science Quarterly, 37(2): 302-320.

  • Darrow, A. L. and Kahl, D. R. (1982), A Comparison of Moderated Regression Techniques Considering Strength of Effect, Journal of Management, 8(2): 35-47.

  • Deutsch, M. (1985), Distributive Justice: A Social psychological Perspective, University Press, New Haven.

  • Festinger, L. (1950), Informal Social Communication, Psychological Review, 57(5): 271-282.

  • Finn, R. H. and Lee, Sang M. (1972), Salary Equity: Its Determination, Analysis, and Correlates, Journal of Applied Psychology, 56(4): 283-292.

  • Frank, Robert H. (1984), Are Workers Paid their Marginal Products?, The American Economic Review, 74(4): 549-571.

  • Gartner, T. (1999), When Pay for Performance Too Well: The Negative Impact of Pay Dispersion, The Academy of Management Journal.

  • Hambrick, D. and D’Aveni, R. (1992), Top Team Deterioration as Part of the Downward Spiral of Large Corporate Bankruptcies, Management Sciences, 38(10): 1445-1466.

  • Heneman H. G. and Schwab D. P. (1985), Pay Satisfaction: Its Multidimensional Nature and Measurement, International Journal of Psychology, 20(1): 129-141.

  • Hofstede, G. (1980), Culture's Consequences: International Differences in Work Related Values, Sage Publications, Inc., Thousand Oaks, CA.

  • Jaccard J., Turrisi R. and Wan K. C. (1990), Interaction Effects in Multiple Regressions: Quantitative Applications in the Social Sciences, Sage University Paper.

  • Kiggundu, M. N. (1981), Task Interdependence and the Theory of Job Design, Academy of Management Review, 6(3): 499-508.

  • Kroeber A. L. and Kluckhohn, C. (1952), Culture: A Critical Review of Concepts and Definitions, Harvard University Peabody Museum of American Archeology and Ethnology.

  • Lawler, E. E. and Porter, L. W. (1966), Predicting Managers Pay and Satisfaction with Pay, Personnel Psychology, 19(4): 363-373.

  • Leventhal, G. S., Micheal, J. W. and Sanford, C. (1972), Inequity and Interpersonal Conflict: Reward Allocation and Secrecy about Rewards as Methods of Preventing Conflicts, Journal of Personality and Social Psychology, 23(1): 88-102.

  • Medoff, J. and Abraham, K. (1980), Experience, Performance and Earnings, The Quarterly Journal of Economics, 95(4): 703-736.

  • Mitchell, T. R. and Silver, W. S. (1990) , Individual and Group Goals when Workers are Interdependent: Effects on Task Strategies and Performance, Journal of Applied Psychology, 75(2): 185-193.

  • Montemayor, Edilberto F. (1996), Congruence between Pay Policy and Competitive Strategy in High-Performing Firms, Journal of Management, 22(6): 889-908.

  • Nelson, F., Stone, T., Frye, C. and Chown, D. (2008), Pay me More: What Companies Need to Know about Employee Pay Satisfaction, Compensation and Benefits Review, 40(2):35-42.

  • Orlikowski, W. J. and Gash, D. C. (1992), Changing Frames: Understanding Technological Changes in Organizations, Centre for Information Systems Research, MIT.

  • Pearce, J. L. and Gregersen, H. B. (1991), Task Interdependence and Extra Role Behavior: A Test of Mediating Effects of Felt Responsibility, Journal of Applied Psychology, 76(6): 838-844.

  • Pfeffer, J. and Langton, N. (1993), The Effects of Wage Dispersion on Satisfaction, Productivity and Working Collaboratively: Evidence from College and University Faculty, Administrative Science Quarterly, 38(3): 382-407.

  • Pooyan, A. and Eberhardt, B. (1989), Correlates of Performance Appraisal Satisfaction among Supervisory and Non Supervisory Employees, Journal of Business Research, 19(3): 215-226.

  • Powell, T. C. and Micallef, D. A. (1997), Information Technology as Competitive Advantage: The Role of Human, Business, and Technology, Strategic Management Journal, 18(5): 375-405.

  • Prescott, John E. (1986), Environments as Moderators of the Relationship between Strategy and Performance, Academy of Management Journal, 29(2): 329-346.

  • Saunders, D. (1956), Moderator Variables in Prediction, Educational and Psychological Management, 16: 209-222.

  • Sharma, S., Durand, M. R. and Gur-Arie, O. (1981), Identification and Analysis of Moderator Variables, Journal of Marketing Research, 28: 291-300.

  • Shaw, D. J., Gupta, N. and Delery, J. E. (2002), Pay Dispersion and Workforce Performance: Moderating Effects of Incentives and Interdependence, Strategic Management Journal, 23(6): 491-512.

  • Siegel, Phyllis A. and Hambrick, Donald C. (2005), Pay Disparities within Top Management Groups: Evidence of Harmful Effects on Performance of High Technology Firms, Organization Science, 16(3): 259-274.

  • Slater, S. F. and Narver, J. C. (1994), Does Competitive Environment Moderate the Market Orientation Performance Relationship, The Journal of Marketing , 58(1): 46-55.

  • Steward, J. (1999), Adverse Selection and Pay Compression, Southern Economic Association, 65(4): 885-899.

  • Tang, T. L. P. (1995), The Meaning of Money Among Mental Health Workers: The Endorsement of Money Ethic as Related to Organizational Citizenship Behavior, Job Satisfaction, and Commitment, Public Personnel Management, 28(1): 15-26.

  • Tosi, H. L. and Greckhamer, T. (2004), Culture and CEO Compensation, Organization Science, 15(6): 657-670.

  • Trevor, C. O. and Wazeter, D. L. (2006), A Contingent View of Reactions to Objective Pay Conditions: Interdependence among Pay Structure Characteristics and Pay Relative to Internal and External Referents, Journal of Applied Psychology, 91: 1260- 1275.

  • Vandenberghe, C. and Tremblay, M. (2008), The Role of Pay Satisfaction and Organizational Commitment in Turnover Intentions: A Two Sample Study, Journal of Business Psychology, 22(3): 275-286.

  • Wageman, R. and Baker, G. (1997), Incentives and Cooperation: The Joint Effects of Task and Reward Interdependence on Group Performance, Journal of Organizational Behavior, 18(2): 139-158.

  • Williams, J. R. and Levy, E. P. (2000), Investigating Some Neglected Criteria: The Influence of Organizational Level and Perceived System Knowledge on Appraisal Reactions, Journal of Business and Psychology, 13(3): 501-513.


Abstract Views: 252

PDF Views: 5




  • Effect of Pay Satisfaction in Information Technology Enabled Sector in India

Abstract Views: 252  |  PDF Views: 5

Authors

Shubha Bhanu
Research Analyst Credit Suisse Business Analytics Hiranandani Business Park, Mumbai 400076

Abstract


This paper explores the relevance of pay satisfaction in generating desired organizational outcomes among the technically qualified workforce in the Indian IT and IT enabled sector and the relationship between social communications as a means of pay comparison affecting pay satisfaction. The results of the study suggest that a strong relationship exists between pay satisfaction and social comparison. However, its strength varies at different levels of hierarchy. The study also explores the various mechanisms of social comparison namely social contact and task interdependence and finds out that both the factors weakly influence pay satisfaction.

Keywords


Pay Satisfaction, Social Comparison, Task Interdependence

References