The investigation of how compensation system equity affects employee attitude

• Main Authors: Chao-Wu Huang, 黃超吾
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/04217835792727047507

碩士 === 國立中山大學 === 人力資源管理研究所 === 91 === Abstract For many years now, the base to Taiwan’s economic development has been from the medium and little-sized business enterprises, but with the restrictions of domestic economic development, the rising costs of labor, and the intense competition of the international environment, many proprietors believe that for these enterprises to weather through another winter is in itself a difficult task, how would they have the time for discussions of the improvement and development of human resources? Previous academic research and models were all designed for large business enterprises, but are these models fit for those medium and small-sized enterprises? At present, local studies are short of this type case study information and research, therefore, this paper targets medium and small-business enterprises that have been through job evaluation for research in hopes to find a successful human resource management and development model for medium and small-sized business enterprises from successful relevant case studies. Ethan M. Rasiel(1999) said, “No matter what you do, you will always have the chance that there will always be some other person in some other place that has done similar things as you have: learn from other people’s success and lessons, cherish your precious time, don’t try to reinvent tires. The main purpose of this research is to discuss the effect that compensation system design has on cognitive compensation equity and the effect cognitive compensation equity has on employee attitude. The survey method is used for research, with retrieval of 223 effective surveys. Results after analysis of the data are stated below: 1. The effect compensation system design has on cognitive compensation equity is more notable with two factors: ‘compensation adjustment plan’ and ‘the degree of compensation understanding’. The ‘performance standard factor’ has almost no effect on distributional equity; this is an issue that is worth looking into. 2. The effect cognitive compensation equity has on employee attitude, among which ‘distribution equity’ has notable effects with compensation satisfaction. Moreover, procedural equity has notable effect on moral commitment, emotional commitment and work commitment; what more to be noticed is that only external equity and compensation openness has notable effect on prolonged commitment. This explains why medium and small-sized business enterprises cannot retain employees. So is this the fate of medium and small-sized business enterprises or is it the ignorance towards compensation design? 3. This research sampled middle and small-sized companies with an employee count of 200 or less. Although there is not a great number of case studies companies, but the results are still impressive, especially the distinct improvement of employee attitude. From this research, it is shown that the cadre members of middle and small-sized business enterprises are younger, have higher academic background, have abundant source of information, like open communication and interaction, have their own opinions on how to set the human resource management system, and expect themselves to become professional managers.