South Asian Journal of Management

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The Role of Pay and Leadership in Developing Organizational Commitment


Affiliations
1 KPMG India, DLF Cybercity, Phase-II, Gurgaon 122002, India
2 School of Management and Labour Studies, Tata Institute of Social Sciences, Sion-Trombay Road, Deonar, Mumbai 400088, India
     

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Organizations implement various strategies to secure their employees’ commitment. Broadly, these can be classified into transactional strategies involving monetary inducements and transformational strategies involving exemplary leadership. In this paper, we study the relative impact of pay satisfaction and transformational leadership on organizational commitment. We collected data from 240 respondents in two Indian organizations. Analysis of our findings showed that transformational leadership and pay satisfaction had an almost equal impact on affective as well as normative commitment. Continuance commitment was affected by neither pay satisfaction nor transformational leadership, but by the years of experience of the employee.
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  • The Role of Pay and Leadership in Developing Organizational Commitment

Abstract Views: 182  |  PDF Views: 0

Authors

Vaibhav Dhawan
KPMG India, DLF Cybercity, Phase-II, Gurgaon 122002, India
Zubin R. Mulla
School of Management and Labour Studies, Tata Institute of Social Sciences, Sion-Trombay Road, Deonar, Mumbai 400088, India

Abstract


Organizations implement various strategies to secure their employees’ commitment. Broadly, these can be classified into transactional strategies involving monetary inducements and transformational strategies involving exemplary leadership. In this paper, we study the relative impact of pay satisfaction and transformational leadership on organizational commitment. We collected data from 240 respondents in two Indian organizations. Analysis of our findings showed that transformational leadership and pay satisfaction had an almost equal impact on affective as well as normative commitment. Continuance commitment was affected by neither pay satisfaction nor transformational leadership, but by the years of experience of the employee.