Consequences of Satisfaction with Pay Systems: Two Field Studies

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Abstract

Research on pay satisfaction has been criticized for inattention to determining whether its multiple dimensions have different consequences and for overreliance on cross-sectional designs. Structural equation analyses of data from two field studies showed that satisfaction with pay systems, but not pay levels, led to greater perceived organizational support, which in turn affected employer commitment and organizational citizenship. Union commitment was a positive function of pay system satisfaction and a negative function of pay level satisfaction.

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