Effect of pay satisfaction on organizational commitment

Abstract

The purpose of the present study was to examine the relative influences of sub-constructs of pay satisfaction on the sub-constructs of organizational commitment. This study also examined whether organizational trust has mediating effects on the relationships. Data were collected from 410 workers employed in a variety of organizations and a hierarchical regression was conducted to test hypothesis. Results indicated that the satisfaction for pay level has positive influence on continuance commitment, the satisfaction for pay system/management has positive influence on affective commitment and negative influence on continuance commitment, and the satisfaction for benefits has positive influences on all sub-constructs of organizational commitment. Also, the satisfaction for pay system/management and benefits has positive influences on the trust in management and members. The trust in management has negative influence on continuance commitment and the trust in members has positive influences on affective and normative commitment. In addition, the trust in members mediated partially the relationship between the satisfaction for pay system/management and affective commitment, and between the satisfaction for benefits and affective and normative commitment. The trust in management mediated partially the relationship between the satisfaction for pay system/management and continuance commitment, and between the satisfaction for benefits and continuance commitment.