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The Influence of the Types of Compensation (Financial and Non-Financial) on Job Performance among Employees at the Employees' Provident Fund (EPF) in Kuala Terengganu, Terengganu, Malaysia
Abstract
Objective - This study looks at the effect of types of compensation on job performance. It was an exploratory case study conducted at the Employees Provident Fund (EPF) of Kuala Terengganu, Terengganu, Malaysia. Methodology/Technique - Quantitative method was applied in conducting this research. The instrument used for the data collection was a set of questionnaire consisted of 29 items divided into four (4) sections, namely; Section A covering the demographic section with six (6) items Section B consisted of eight (8) items measuring the effect of financial compensation (items 7 – 14) while section C measured the employees' non-financial compensation. Section C had 10 items (items 15 – 24) and lastly, section D consisted of five (5) items (items 25-29) which measured the job performance. The questionnaire was distributed to all 50 employees at the organization. However, only 40 questionnaires were then collected, making the return rate at 80%. Since the number of respondents was less than 100, only SPSS based tests were conducted, namely the descriptive, reliability and regression tests. Findings - The results show that the employees were satisfied with the compensation provided by their employer and that there is a moderate relationship between the types of compensation with employees' job performance. It was also found that non-financial compensation has demonstrated a stronger relationship to the job performance compared to financial. Novelty - In contrary to prior studies the study found out that financial compensation does not affect the job performance. Type of Paper - Empericial
... Carraher, Gibson and Buckley (2006) gave his opinion that to maintain better performance in organization, it is a good way to reward employees according to their productive activities. Additionally, employees will do their activities willingly when they are confirmed that their performance will be praised with reward (Abdul Rashid et al., 2016;Cotter & Zenner, 1994). However, recent days in organizations, employees' both job performance and satisfaction respectively depend on direct and indirect financial payment (Sopiah, 2013). ...
This study is directed to concentrate on the practices of human resource management (HRM) in private enterprise as well as inspect the HRM practices affecting operational performance (non-financial). Survey questionnaire has been heading for collecting data from 120 staffs based on Random Sampling Technique working in three organizations to be specific Rahman Jute Spinners (Pvt.) Ltd., Jamuna Jute Industries Ltd. and North Bengal Golden Fiber & Diversified Jute Mills which are working under Bangladesh Jute Spinners Association (BJSA). Correlation Test, ANOVA Test and Regression Coefficient Test were done to bring out the outcomes of the study. The results uncovered that, noteworthy and satisfactory relationship exists among HRM functions (namely practices of recruitment and selection, assessment of performance, compensation and reward, training and development) and performance of operations. This study gives insight in terms of ensuring sustainable operational performance by practice these HRM practices which will ultimately accelerate the productivity of employees as well as private jute mills in Bangladesh.
... Moreover, four elements of non financial comensation is mentioned by scholars. These factors include, promotion, awards, work envionmrnt and employment where employee can record the progress (Rashid, Anom, Othman, Othman, & Fatini, 2016). ...
The prime aim of this research is to examine the link between HR practices, employee motivation, employee empowerment and employee performance in Engineering firms of Indonesia. The mediating role of employee motivation and moderating employee empowerment is also examined. The study has employed the survey-based methodology to accomplish the objectives of research and to answer research questions. The tool used for data analysis in current study is SEM-PLS. The data collection is done from employees of engineering firms in Indonesia. Stratified random sampling is used for sampling of data. The findings of the study have shown agreement with the proposed findings and have argued the HR practices, employee motivation, and employee empowerment as the determinants of employee performance of employees working in the Engineering firms of Indonesia. Current study is among the pioneering study on the issue and will help the researchers and academicians in understanding the issue related to employee performance among the employees in Engineering firms of Indonesia.
Meta-analysis of the cumulative research on various predictors of job performance showed that for entry-level jobs there was no predictor with validity equal to that of ability, which had a mean validity of .53. For selection on the basis of current job performance, the work sample test, with mean validity of .54, was slightly better. For federal entry-level jobs, substitution of an alternative predictor would cost from 15.89 billion/year (age). Hiring on ability had a utility of $15.61 billion/year but affected minority groups adversely. Hiring on ability by quotas would decrease utility by 5%. A 3rd strategy—using a low cutoff score—would decrease utility by 83%. Using other predictors in conjunction with ability tests might improve validity and reduce adverse impact, but there is as yet no database for studying this possibility. (89 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
A qualitative and quantitative review of the relationship between job satisfaction and job performance is provided. The qualitative review is organized around 7 models that characterize past research on the relationship between job satisfaction and job performance. Although some models have received more support than have others, research has not provided conclusive confirmation or disconfirmation of any model, partly because of a lack of assimilation and integration in the literature. Research devoted to testing these models waned following 2 meta-analyses of the job satisfaction-job performance relationship. Because of limitations in these prior analyses and the misinterpretation of their findings, a new meta-analysis was conducted on 312 samples with a combined N of 54,417. The mean true correlation between overall job satisfaction and job performance was estimated to be .30. In light of these results and the qualitative review, an agenda for future research on the satisfaction-performance relationship is provided.
This study reports the findings of a survey of team reward practices of North American Firms that have had a minimum of three year of experience with Total Quality Management Semi-structured interviews with director of quality revealed several team reward best practices.
The utilization of manpower outsourcing model has now become a trend in the recruitment of labor by companies in Indonesia. This system of outsourcing was initially applied to manufacturing companies only but lately banking companies also use this as a model of recruitment, therefore in the banks there are two types of employees, namely permanent employees and employees or outsourcing contract status. Whether the compensation give job satisfaction to the employees is the question, and the next question is whether their job satisfaction also affects their performance. Outcomes research concluded: (1) Compensation received by outsourcing employees of Syariah banks in the city of Malang, both financial and nonfinancial compensation in generally perceived as the level of satisfaction, quite satisfied and very satisfied (2) Job satisfaction of outsourcing employee of Syariah banks in the city of Malang, perceived level quite satisfied, dissatisfied and very dissatisfied (3) Performance of outsourcing employees of Syariah banks in the city of Malang is in pretty good level, good and very good (4) There is a significant positive financial compensation on employee performance directly (5) There is a significant positive financial compensation to performance through job satisfaction (6) There is the influence of nonfinancial compensation on employee performance directly (7) There is a significant positive nonfinancial compensation on employee performance through job satisfaction. From these results suggested (1) For Syariah banks: The results showed that employees claimed financial compensation, nonfinancial compensation received has been good, quite good and very good encourage outsourcing employee job satisfaction and employee performance. Therefore, these conditions must be maintained in order the system develops during this revamped as implemented in other companies outside Syariah banking, which in turn can cause turbulence (2) For other companies and governments need to adopt the use of labor outsourcing models practiced in Syariah banking. Where recruitment patterns prepared by the association of Syariah banking, so it does not harm the employee income since no deduction of wages or salaries of employees upon acceptance of employment. In addition, within the specified time employees can be recruited as permanent employees on Syariah banking, if the model is implemented in Indonesia, it will reduce the demonstrations in the streets and can ensure future employees.
Keywords: Job Satisfaction, JobPerformance
The Army Selection and Classification Project has produced a comprehensive examination of job performance in 19 entry-level Army jobs (Military Occupational Specialties) sampled from the existing population of entry-level positions. Multiple methods of job analysis and criterion measurement were utilized in a subsample of nine jobs to generate over 200 performance indicators, which were then used to assess performance in a combined sample of 9,430 job incumbents. An iterative procedure involving a series of content analyses and principal components analyses was used to develop a basic array of up to 32 criterion scores for each job. This basic set of scores formed the starting point of an attempt to model the latent structure of performance in this population of jobs. After alternative models were proposed for the latent structure, the models were submitted to a goodness-of-fit test via LIS-REL VI. After accounting for two components of method variance, a five-factor solution was judged as the best fit. The implications of the results and the modeling procedure for future personnel research are discussed.
Monetary rewards and supervision crowd out intrinsic work motivation (work morale) under identifiable and relevant conditions. Work performance decreases if this crowding effect dominates the normally considered disciplining effect of external interventions. The crowding out effect is supported by experimental and econometric evidence. Crowding theory allows to explain empirical observations contradicting principal-agent theory such as why pay-for-performance is so little used, why bonding is virtually never observed, and why managers of for-profit institutions receive part of their salary in terms of bonuses, while managers in not-for-profit institutions receive a fixed payment.
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