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Unpacking the 'black box' in the relationship between pay-for-performance, employee benefits and performance

Ismail, Abdussalaam Iyanda and Abdul Majid, Abdul Halim and Joarder, Mohd Hasanur Raihan (2018) Unpacking the 'black box' in the relationship between pay-for-performance, employee benefits and performance. J. for Global Business Advancement, 11 (4). p. 465. ISSN 1746-966X

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This research examined the effect of pay-for performance (PFP) and employee benefits on employee performance with mediating effect of distributive fairness in the nexus. Through a cross-sectional approach, data were collected from a sample of 140 Nigerian employees. Partial least squares (PLS) method algorithm and bootstrap techniques were used to test the study's hypotheses. The results provided support for all the hypothesised nexuses indicating that PFP and employee benefits influence the performance of workers positively. Also, the result showed that distributive fairness mediates the relationship between PFP and employee performance, and between employee benefits and employee performance. The implication is that PFP and employee benefits can boost and enhance employee performance provided distributive fairness is perceived in the reward system that is operating in the firms. Hence, distributive fairness is an inextricable element in any reward system. Limitations and recommendations are discussed.

Item Type: Article
Uncontrolled Keywords: PFP, pay-for-performance, employee benefits, distributive fairness, employee performance, partial least squares, HRM, human resource management, HR architectures, human capital, reward system, compensation, Nigeria
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: School of Business Management
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 10 Apr 2019 01:26
Last Modified: 10 Apr 2019 01:26
URI: http://repo.uum.edu.my/id/eprint/25892

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