PERFORMANCE BASED PAY AS A DETERMINANT OF JOB SATISFACTION: A STUDY IN MALAYSIA GIATMARA CENTERS

Compensation management literature highlights that performance based pay has two major characteristics: participation in pay systems and adequacy of pay. The ability of management to properly implement such pay systems may lead to increased job satisfaction in organizations. Though, the nature of this relationship is interesting, little is known about the influence of performance based pay on job satisfaction in compensation management literature. Therefore, this study was conducted to examine the relationship between pay for performance and job satisfaction in Malaysian GIATMARA centers. The results of exploratory factor analysis confirmed that measurement scales used in this study satisfactorily met the standards of validity and reliability analyses. An outcome of stepwise regression analysis shows that determinant of job satisfaction is performance based pay. Further, this result confirms that pay for performance is an important antecedent for job satisfaction in the studied organizations.