Relationship between Financial Compensation and Organizational Commitment among Malaysian Bank Workers

Low Bee Kee · Rusli bin Ahmad · Siti Mariam Abdullah

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Employee Performance and Management Job Satisfaction and Organizational Behavior Human Resource and Talent Management

Abstract

This research examines the relationship between financial compensation and organizational commitment among workers in the banking industry, Malaysia. This research is significant in addressing the preceding gap on the types of financial compensation such as salaries, bonuses and merit pay with a stronger relationship with organizational commitment. Although these variables have been widely studied, few studies have explored their relationship to organizational commitment. Quantitative methodology is utilized to explore the relationship between financial compensation and organizational commitment. In data collection, a questionnaire was administered among 150 workers working in several selected banks in Bera; a town situated in the state of Pahang, Malaysia. Simple random sampling was used to select the respondents in the survey. The research findings showed that there is a significant relationship between financial compensation such as salaries, bonuses and merit pay and organizational commitment. Besides that, merit-based pay is identified as the dominant factor in influencing the organizational commitment among the bank workers under study. The research findings contribute to a better understanding for all related parties on the application of theories and model in relation with financial compensation aspects and organizational commitment.

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References

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