Abstract
The compensation is an import issue for proprietors and is a key factor to solve the employee’s management problems. If an organization has a good compensation system, it creates job satisfaction of employees. In case, an organization does not have a good compensation system of compensation, it may damage the good intentions of the system. Thus, this paper is based on the equity theory to confer the relationship between the compensation and job satisfaction. This paper selected organization equity as the moderate variable and demographics as the control variable. This paper chose census to send 318 questionnaires out of which 311 valid responses were returned. This analysis was based on questionnaires which were collected from China employees of Taiwan listed and OTC companies and made a 98% response rate. The analytical methods include descriptive statistics, reliability analysis, validity analysis, factor analysis and regression analysis. The result of this paper showed a positive relationship between the compensation and job satisfaction, which includes internal satisfaction and external satisfaction. Moderate analysis result showed that organizational equity can strengthen the positive influence effect of the compensation on job satisfaction
JU-YU YEN, WAN-CHEN LIU, HSIANG-HENG CHEN. (2018) The Impact of Compensation System on Job Satisfaction from the Perspective of Equity Theory, International Review of Management and Business Research, Volume 7, Issue 4.
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