Determinants of role orientation and organisational commitment under skill-based pay: a path model

Mohammed A. Al-Waqfi and Naresh C. Agarwal

International Journal of Human Resources Development and Management, 2006, vol. 6, issue 1, 4-21

Abstract: There is very little research that sheds light on employee attitudes under skill-based pay (SBP), in particular whether employees under SBP indeed exhibit attitudes essential for successful operation of such a pay plan. The current study uses a path analysis approach to examine how SBP affects employees' attitudes with particular focus on organisational commitment and role orientation. Based on data from a large sample of employees, it finds that selected perceived SBP plan characteristics are significant direct and indirect predictors of organisational commitment and role orientation. The study discusses various theoretical and practical implications that result from these findings.

Keywords: skill-based pay; organisational commitment; role orientation; employee attitudes; strategic compensation; firm performance. (search for similar items in EconPapers)
Date: 2006
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