Quality of Work Life: A Significant Dimension of Non-Financial Compensation or Managers’ Tool to Generate Reciprocity

Imran Ahmed Shahzad, Valliapan Raju, Muhammad Farrukh, Nagina Kanwal, Muhammad Ikram


With an aim to test reciprocity between non-financial elements of compensation and productivity outcomes, in the presence of perception about organizational support theory, Data had been collected at primary level by a questionnaire, from a sample of 525 banking professionals from big ten Pakistani banks, and same had been analyzed by smartPLS. Results showed that all relationships among study variables are highly responsive to the perception about organizational support. Quality of work life creates reciprocity with employee performance but their magnitudes get affected where practioners need to pay specific attention on employee perception about organizational support.

Full Text:



Aaron, C. (2009). Individual values and the work/family interface: An examination of high tech employees. Journal of Managerial Psychology, 24(8), 813-830. Published by The Johns Hopkins University Press.

Ahsan, N., Fie, D. Y. G., Foong, Y. P., & Alam, S. S. (2013). Relationship between retention factors and affective organisational commitment among knowledge workers in Malaysia. Journal of Business Economic and Management, 14(5). https://doi.org/10.3846/16111699.2012.701226

Alter, A. (2013). Drunk tank pink: And other unexpected forces that shape how we think, feel, and behave. London: Penguin Press.

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411. https://doi.org/10.1037/0033-2909.103.3.411

Anderson, J. C., & Gerbing, D. W. (1988). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin, 103(3), 411-423. https://doi.org/10.1037/0033-2909.103.3.411

Andrew G. S. (winter 1994). The relationship of rewards systems and employee performance. Compensation and benefits management, 6, 128-32.

Ang, M. C. H., Ramayah, T., & Amin, H. (2015). A theory of planned behavior perspective on hiring Malaysians with disabilities. Equality, Diversity and Inclusion: An International Journal, 34(3), 186–200. https://doi.org/10.1108/EDI-02-2014-0012

Aries, M. B. C., Veitch, J. A., & Newsham, G. R. (2010). Windows, view, and office characteristics predict physical and psychological discomfort. Journal of Environmental Psychology, 30, 533-541. https://doi.org/10.1016/j.jenvp.2009.12.004

Armstrong, M. (2006). A handbook of Human Resources management, 10th edition, Kogan Page Limited, Philadelphia, USA. 234-235.

Armstrong, M. (2006). A handbook of Human Resources management, 10th edition, Kogan Page Limited, Philadelphia, USA. 234-235.

Asrar-ul-Haq, M., & Kuchinke, K. P. (2016) ‘Impact of leadership styles on employees’ attitude towards their leader and performance: Empirical evidence from Pakistani banks’, Future Business Journal. Elsevier, 2(1), 54–64. https://doi.org/10.1016/j.fbj.2016.05.002

Baker, G. P., Jensen, M. C., & Murphy, K. J. (July 1988). Compensation and Incentives: Practice vs. Theory. Journal of Finance: Papers and Proceedings, 43, 593–616. https://doi.org/10.1111/j.1540-6261.1988.tb04593.x

Bardoel, E. A., De Cieri, H., & Mayson, S. (2008). Bridging the research-practice gap: developing a measurement framework for work-life initiatives, Journal of Management and Organization, 14(3), 239-258.

Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182. Google Scholar, Crossref, Medline. https://doi.org/10.1037/0022-3514.51.6.1173

Bartram, T., Karimi, L., Leggat, S. G., & Stanton, P. (2014). Social identification: linking high performance work systems, psychological empowerment and patient care, The International Journal of Human Resource Management, 25(17), 2401-2419.

Brayfield, A. H., & Crocket, W. H. (1995). Employee attitudes and employee performance. Psychological Bulletin, 52, 344-394.

Burnett, M. F., Chiaburu, D. S., Shapiro, D. L., & Li, N. (2015). Revisiting how and when perceived organizational support enhances taking charge an inverted U-shaped perspective, Journal of Management, 41(7), 1805-1826. https://doi.org/10.1177/0149206313493324

Carmel, H., & Scott, W. (2009). Implementing the Marketing Concept in Travel Organizations: The Important Moderating Influence of Perceived Organizational Support. Journal of Hospitality Marketing & Management,18(7),692-717. https://doi.org/10.1080/19368620903170232

Cascio, F. (2003). Managing Human Resources productivity, Quality of Work life profits, 6th edition, McGraw-Hill, Higher Education, New York.

Casper, W. J., Martin, J. A., Buffardi, L. C., & Erdwins, C. J. (2002). Work-family conflict, perceived organizational support and organizational commitment among employed mothers. Journal of Occupational Health Psychology, 7(2),99-108. https://doi.org/10.1037/1076-8998.7.2.99

Chen, C. S., & Farh, J. L (2000). Quality of work life in Taiwan; an exploratory study. Management Review, 19, 31-79.

Chen, F., Curran, P. J., Bollen, K. A., Kirby, J., & Paxton, P. (2008). An empirical evaluation of the use of fixed cutoff points in RMSEA test statistic in structural equation models. Sociological Methods & Research, 36(4), 462–494. https://doi.org/10.1177/0049124108314720

Chen, J., Lawler, J., & Bae, J. (2005). Convergence in human resource systems: A comparison of locally owned and MNC subsidiaries in Taiwan. Human Resource Management, 44(3), 237–256. https://doi.org/10.1002/hrm.20069

Cherrington, D. L., Reitz, H. J., & Scott, W. E. Jr. (1971). Effects of rewards and contingent reinforcement on satisfaction and task performance. Journal of applied psychology, 55, 531-536. https://doi.org/10.1037/h0032041

Chiang, Y. H., Hsu, C. C., & Shih, H. A. (2015). Experienced high performance work system, extroversion personality, and creativity performance, Asia Pacific Journal of Management, 32(2), 531-549. https://doi.org/10.1007/s10490-014-9403-y

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern Methods for Business Research, 295(2), 295–336.

Christopher, C. J., Andrea, E. A., Dorothea, E. D. (2006). Integrating Situational and Dispositional Determinants of Job Satisfaction: Findings from Three Samples of Professionals. The Journal of Psychology, 140(4),363–395. https://doi.org/10.3200/JRLP.140.4.363-395

Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31, 874-900. https://doi.org/10.1177/0149206305279602

Dagens, N. (2007). Bonus all valligare for top chefer. Business Venturing, 7, 253-265.

Donald, A. H., Charles, R. C. (2016). Matching and Behavioral Contrast in a Two-Option Repeated Investment Simulation. Managerial and Decision Economics, 37, 4-5, 294-305.

Eisenberger, R., Fasolo, P., Davis, V., & La Mastro. (1990). Perceived organizational support and employee diligence, commitment, and innovation. Journal of Applied psychology 71(1), 51-59. https://doi.org/10.1037/0021-9010.75.1.51

Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71, 500-507. https://doi.org/10.1037/0021-9010.71.3.500

Erdogan, B., & Enders, J. (2007). Support from the top: supervisors’ perceived organizational support as moderator of leader-member exchange to satisfaction and performance relationship. Journal of Applied Psychology, 92(2), 321-330. https://doi.org/10.1037/0021-9010.92.2.321

Farh J. L., Hackett, R., & Liang, J. (2007). Individual-level cultural values as moderators of perceived organizational support, employee outcome relationships in china: comparing the effects of power distance and traditionality. Academy of management journal, 50(3), 715–729. https://doi.org/10.5465/amj.2007.25530866

Farrukh, M., Chong, W. Y., Mansori, S., & Ravan, R. S. (2017). Intrapreneurial behaviour: the role of organizational commitment. World Journal of Entrepreneurship, Management and Sustainable Development, 13(3), 243–256. https://doi.org/10.1108/WJEMSD-03-2017-0016

Farrukh, M., Khan, A. A., Khan, A. A., Shahid, K. M., Shahid, K. M., Ravan, R. S., … & Soladoye, B. S. A. (2017). Entrepreneurial intentions: the role of family factors, personality traits and self-efficacy. World Journal of Entrepreneurship, Management and Sustainable Development, 13(4), 303–317. https://doi.org/10.1108/WJEMSD-03-2017-0018

Farrukh, M., Wei, Y. C., & Abdallah, A. N. O. (2016). Organizational commitment: Does religiosity matter? Cogent Business & Management, 3(1), 1–10. https://doi.org/10.1080/23311975.2016.1239300

Farrukh, M., Ying, C. W., & Mansori, S. (2017). Organizational commitment: an empirical analysis of personality traits. Journal of Work-Applied Management, 9(1), 18–34. https://doi.org/10.1108/JWAM-12-2016-0026

Farrukh, M., Ying, C., & Mansori, S. (2016). Intrapreneurial behavior : an empirical investigation of personality traits Research issue. Management & Marketing. Challenges for the Knowledge Society, 11(4), 597–609. https://doi.org/10.1515/mmcks-2016-0018.Introduction

Feldman. (1985). Careers in Organizations: Recent Trends and Future Directions. Journal of Management, 15, 135-156. https://doi.org/10.1177/014920638901500202

Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research (18:1), 39-50. https://doi.org/10.2307/3151312

Foster, C., Punjaisri, K., & Cheng, R. (2010). Exploring the relationship between corporate, internal and employer branding. Journal of Product & Brand Management, 19(6), 401–409. https://doi.org/10.1108/10610421011085712

Gaskell, C. (2001). Employee’s motivation Strategies established staff values transform your life. Published by: Thorsons. Pub. Date: 03.12.01. Imprint: Thorsons, ISBN: 978-0-00-713098-6.

Gouldner, A. W. (1960). The norm of reciprocity: a preliminary statement. American sociological review, 25, 161-178. https://doi.org/10.2307/2092623

Guiyao, T., Bingjie, Y., Fang, L. C., & Yang, C. (2017). High-performance work system and employee creativity: The roles of perceived organisational support and devolved management, Personnel Review, 46(7),1318-1334. https://doi.org/10.1108/PR-09-2016-0235

Hackman, J. R., & Lawler, E. E. (1971). Employee reactions to job characteristics. Journal of Applied Psychology, 55, 259–286. https://doi.org/10.1037/h0031152

Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Englewood Cliffs: Prentice Hall.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–151. https://doi.org/10.2753/MTP1069-6679190202

Hair, J., Hult, T. G., Ringle, C., & Sarsted, M. (2014). PARTIAL LEAST SQUARES STRUCTURAL EQUATION MODELING ( PLS-SEM ).

Hannif, Z., Burgess, J., & Connell, J. (2008). Call Centre and the quality of work Life: Towards a research agenda. Journal of Industrial Relations, 50(2), 271-284. https://doi.org/10.1177/0022185607087902

Hayward. M. L. A., & Rindova, T. G. (2004). Believing One’s own Press: The causes and consequences of CEO celebrity. Strategic Management Journal, 25(7),637-653. https://doi.org/10.1002/smj.405

Hekman, D. R., Steensma, H. K., Bigley, G. A., & Hereford, J. F. (2009). Combined Effects of Organizational and Professional Identification on the Reciprocity Dynamic for Professional Employees. Academy of Management Journal, 52(3). https://doi.org/10.5465/amj.2009.41330897

Hensler. J., & Chin. W. W., (2010). A comparison fo approaches for the analysis of interaction effects between latent variables using partial least square path modeling. Structural Equation Modeling (pp.17,82--109). https://doi.org/10.1080/10705510903439003

Herbert, M. (1975). The pay for performance dilemma, organizational dynamics, 39-50.

Herpen, V. M., Praag, V. M., & Cools, K. (2003). The effects of performance measurement and compensation on Motivation an empirical Study. De Economist, 153(3), 2005; Netherlands. https://doi.org/10.2139/ssrn.417355

Hertzberg, F. (2003). One more Time: How do you motivate employees? On point enhanced edition, Harvard Business Review, 81(1), 87-96.

Hollenbeck, N., & Wright, G. (1993). Human Resources Management, Gaining a competitive Advantage 4th Edition, New York. 458-459. http://www.economist.com/node/5220660.

Hutchison, S., Sowa, R. D., & Eisenberger, R. H. (1986). Perceived organizational support. Journal of Applied psychology, 71(3), 500-507. https://doi.org/10.1037/0021-9010.71.3.500

Jared, D., & Harris, (2008). What’s wrong with executive compensation? Journal of Business Ethics, 84.

Jean, C. B., Isabelle, D., Nicola, D., Carlos, F., Luigi, F., Robert, L., & Kurt, V. L. Unpublished (2003). Managing labor market related risks in Europe: Policy implications. Unpublished.

Jean, P. M., & Gilles, D. (2006). Quality of Work Life: Theoretical and Methodological Problems, and Presentation of a New Model and Measuring Instrument. Social Indicators Research, 77(2), 333-368. Published by: Springer Stable. Online URL: http://www.jstor.org/stable/27522585 . Accessed on 18 August 2009 05:23.

Kelly, G. A. (1955). The psychology of personal constructs. New York: Norton. Reprinted by Routledge (London), 1991.

Kuvaas, B. (2006). Work performance, affective commitment, and work motivation: the roles of pay administration and pay level. Journal of Organizational Behavior, 27(3), 365–85. https://doi.org/10.1002/job.377

Lazear E. P (1999). Personnel Economics: Past Lessons and Future Directions. Journal of Labor Economics, 17(2),199–236. https://doi.org/10.3386/w6957

Marinko, Š., Katarina, K., & Katarina, J. J. (2015). Sustainability of Employee Productivity as a Presumption of Sustainable Business Journal of Economic Research. 26, 311-330. https://doi.org/10.1037/a0015852

Mello, & Jaffery. (2005). Strategic Human Resource Management, 2nd Edition, southeastern, Thomos corporation, USA, 494-496.

Minnesota Studies in Vocational Rehabilitation (1967). Manual for the minnesota satisfaction questionnaire. weiss, david j.; dawis, rene v.; england, george w. Minnesota Studies in Vocational Rehabilitation, 22,120.

O’Neill, O. A. (2009). Exploring relationships among anger, perceived organizational support, and workplace outcomes. Journal of Occupational Health Psychology, 14(3), 318-333.

Ohen, K., & Sela. (2008). Optimal rewards in contests RAND. Journal of Economics, 39(2), 434.451. Online available at: http://www.jstor.org/stable/249764. Accessed on june 22, 2010 00:56.

Pallant, J. (2007). SPSS survival manual: A step by step guide to data analysis using SPSS for windows (3rd ed.). Buckingham: Open University Press.

Qunchao, L., & Xinli, X. (2017) Community involvement and place identity: the role of perceived values, perceived fairness, and subjective well-being, Asia Pacific Journal of Tourism Research, 22(9), 951-964. https://doi.org/10.1080/10941665.2017.1345772

Rhodes L., & Eisenberger, R. (2002). Perceived organizational support, a review of the literature. Journal of applied psychology, 87,698-714. https://doi.org/10.1037/0021-9010.87.4.698

Riaz, Q., Farrukh, M., Rehman, S. U., & Ishaque, A. (2016). Religion and entrepreneurial intentions : an empirical investigation. International Journal of Advanced and Applied Sciences, 3(9), 31–36. https://doi.org/10.21833/ijaas.2016.09.006

Rigdon, E. E., Ringle, C. M., & Sarstedt, M. (2010). Structural modeling of heterogeneous data with partial least squares. In Review of marketing research (pp. 255-296). Emerald Group Publishing Limited. https://doi.org/10.1108/S1548-6435(2010)0000007011

Ringle, C. M., Wende, S., & Becker, J. M. (2015). SmartPLS 3 – Bönningstedt: SmartPLS”, available at: www.smartpls.com [Google Scholar].

Sarah, S. (2007). Crossing the generational divide: engaging “young” employees in your organization. Development and Learning in Organizations, 21(2).

Shahzad, A. I. (2008). Antecedents of Compensation and relationship among Compensation, Motivation and Organizational profitability. Journal of American Academy of Business, Cambridge, The Business Review, Cambridge (BRC), 10(2), 146–153.

Shahzad, I. A., Bhatti, K. K., & Khan, G. K. (June 2007). Impact of Technological changes on Human Resources Development Practices. International Review of Business Research Papers, 3(2), 400-419.

Shahzad, I. A., Farrukh, M., Kanwal, N., & Sakib, A. (2018). Decision-making participation eulogizes probability of behavioral output; job satisfaction, and employee performance (evidence from professionals having low and high levels of perceived organizational support). World Journal of Entrepreneurship, Management and Sustainable Development. https://doi.org/10.1108/WJEMSD-01-2018-0006

Shore, L. M,. & Shore, T. H. (1995). Perceived organizational support and organizational justice. In Cropanzano, R.S. & K.M. Kacmar (Eds.). Organizational politics, justice, and support: Managing the social climate of the workplace,149-164. Westport, CT: Quorum

Sigvard, R., Fleming, N., & Arnald, S.T. (1983). Some social psychological effects of direct and indirect participation in ten Swedish companies. Organization studies, 4(3), 243-259. https://doi.org/10.1177/017084068300400303

Thomas, P. Jr. (1977). Employee compensation and Incentive plans (New York; Free Press.

Tucker, S., Chmiel, N., Turner, N., Hershcovis, M., Sandy, S., & Chris, B. (2008). Perceived organizational support for safety and employee voice: the mediating role of coworker support for safety. Journal of Occupational Health Psychology, 13(4),319-330. https://doi.org/10.1037/1076-8998.13.4.319

Vroom, V. (1964). Work and Motivation, Wiley, New York.

Witt, L. A., & Carlson, D. S. (Oct, 2006). The work-family interface and job performance: moderating effects of conscientiousness and perceived organizational support. Journal of Occupational Health Psychology, 11(4),343-357. https://doi.org/10.1037/1076-8998.11.4.343

www.osec.ch on June 28, 2011 http://budget.par.com.pk/economic-survey/2014-15/.

Yu, R. H. (2011). Work-family conflict and job satisfaction in stressful working environments: The moderating roles of perceived supervisor support and internal locus of control. International Journal of Manpower, 32(2).

Zhao, X., Lynch Jr., J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis. Journal of Consumer Research, 37(2), 197–206. https://doi.org/10.1086/651257

DOI: https://doi.org/10.5296/ijhrs.v8i3.13137

Copyright (c) 2018 Imran Ahmed Shahzad, Muhammad Farrukh

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

International Journal of Human Resource Studies  ISSN 2162-3058

Email: ijhrs@macrothink.org

Copyright © Macrothink Institute  

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.