Pay-for-Performance and Organizational Citizenship Behavior in Thai Hotels: The Mediating Role of Perceived Organizational Support
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Published:
Jun 28, 2019
Keywords:
Pay-for-performance organizational citizenship behaviour perceivedorganizational support; hotel hotel
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Abstract
This study aimed to 1) examine the relationship between pay-for-performance (PFP) and organizational citizenship behavior (OCB), and 2) to study the role of perceived organizational support (POS) in the relationship between PFP and OCB in Thai hotels. Data were collected from 327 frontline employees of hotels in the most visited provinces in the south of Thailand, and were then analyzed using the Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The results revealed both direct and indirect effects in the relationship between PFP and OCB. POS is the partial mediator of the indirect effect. The results suggested that PFP not only is an incentive to make employees more likely to perform extra-role behavior, it also acts as the signal from the organization to employees that the organization values their work, so it employs the performance-based payment. As a result, the employees are fully dedicated to their work, even when the work is outside the responsibilities they are assigned for. These findings contribute to an important understanding of the relationship between payment policy and employee behavior in the service business. Discussion and implications are also provided.
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References
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Arefin, S., Raquib, M.,and Arif, I. (2015) The relationship between high performance work systems and proactive behaviors: The mediating role of perceived organizational support. European Scientific Journal 11(2): 314-327.
Boachie-Mensah, F. and Dogbe, O. D. (2011) Performance-based pay as a motivational tool for achieving organizational performance: An exploratory case study. International Journal of Business and Management 6(12): 270-285.
Bogicevic-Milikic, B. and Janicijevic, N. (2009) Cultural divergence and performance evaluation systems: A comparative study of three Serbian companies. Economic Annals 54(180): 40-55.
Boshoff, C. and Allen, J. (2000) The influence of selected antecedents on frontline staff’s perceptions of service recovery performance. International Journal of Service Industry Management 11(1): 63-90.
Boxall, P. and Purcell, J. (2016) Strategy and human resource management, 4th ed., London: Red Globe Press.
Brislin, R. W. (1970) Back-translation for cross-culture research. Journal of Cross-Cultural Psychology 1(3): 185-216.
Chand, M. (2010) The impact of HRM practices on service quality, customer satisfaction and performance in the Indian hotel industry. The International Journal of Human Resource Management 21: 551-566.
Chiang, C. F. and Hsieh, T. S. (2012) The impacts of perceived organizational support and psychological empowerment on job performance: The mediating effects of organizational citizenship behavior. International Journal of Hospitality Management 31(1): 180-190.
Cobb, A. (2011) Pay for performance strategies: Achieving success through communication. Hotel Business Review 1-3.
Cropanzano, R., Rupp, D. E. and Byrne, Z. S. (2003) The relationship of emotional exhaustion to work attitudes, job performance, and organizational citizenship behaviors. Journal of Applied Psychology 88(1): 160-169.
Dagenais-Cooper, V. and Paille, P. (2012) Employee commitment and organizational citizenship behavior in hotel industry: Do Foci matter? Journal of Human Resources in Hospitality & Tourism 11: 303-326.
Deckop, J. R., Mangel, R. and Cirka, C. C. (1999) Getting more than you pay for: Organizational citizenship behavior and pay-for-performance plans. Academy of Management Journal 42(4): 420-428.
Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D. and Rhoades, L. (2001) Reciprocation of perceived organizational support. Journal of Applied Psychology 86(1): 42-51.
Eisenberger, R., Cumming, J., Armeli, S. and Lynch, P. (1997) Perceived organizational support, discretionary treatment, and job satisfaction. Journal of Applied Psychology 82(5): 812-820.
Eisenberger, R., Huntington, R., Hutchison, S. and Sowa, D. (1986) Perceived organizational support. Journal of Applied Psychology 71(3): 500-507.
Fornell, C. and Larcker, D. F. (1981) Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18: 39-50.
Gilbreath, B. and Harris, M. M. (2002) Performance-based pay in the workplace: Magic potion or malevolent poison? The Behavior Analyst Today 3(3): 311-322.
Hair, J. F., Black, W. C., Babin, B. J. and Anderson, R. E. (2010) Multivariate Data Analysis: A Global Perspective. Upper Saddle River: Pearson Education.
Hempel, P. S. (2001) Differences between Chinese and Western managerial views of performance. Personnel Review 30(2): 203-226.
Heneman, R. L., Greenberger, D. B. and Strasser, S. (1988) The relationship between pay-for-performance perceptions and pay satisfaction. Personnel Psychology 41(4): 745-759.
Jain, A. K., Giga, S. I. and Cooper, C. L. (2013) Perceived organizational support as a moderator in the relationship between organizational stressors and organizational citizenship behaviors. International Journal of Organizational Analysis 21(3): 313-334.
Karatepe, O. M. (2013) High-performance work practices and hotel employee performance: The mediation of work engagement. International Journal of Hospitality Management 32(1): 132-140.
Knies, E. and Leisink, P. (2014) Linking people management and extra-role behavior: Results of a longitudinal study. Human Resource Management Journal 24(1): 57-76.
Lazear, E. P. (2000) Performance pay and productivity. American Economic Review 90(5): 1346-1361.
Lee, H-J., Iijima, Y. and Reade, C. (2011) Employee preference for performance-related pay: predictors and consequences for organizational citizenship behavior in a Japanese firm. International Journal of Human Resource Management 22(10): 2086-2109.
Liao, H., Toya, K., Lepak, D. P. and Hong, Y. (2009) Do you see eye to eye? Management and employee perspectives of high-performance work systems and influence processes on service quality. Journal of Applied Psychology 94(2): 371-391.
Ma, E. and Qu, H. (2011) Social exchange as motivators of hotel employees’ organizational citizenship behavior: The proposition and application of a new three-dimensional framework. International Journal of Hospitality Management 30(3): 680-688.
Ma, E., Qu, H., Wilson, M.,and Eastman, K. (2013) Modeling OCB for hotels don’t forget the customers. Cornell Hospitality Quarterly 54(3): 308-317.
Mathumbu, D. and Dodd, N. (2013) Perceived organizational support, work engagement and organizational citizenship behavior of nurses at Victoria Hospital. Journal of Psychology 4(2): 87-93.
Mayes, B. T., Finney, T. G., Johnson, T. W., Shen, J., and Yi, L. (2017) The effect of human resource practices on perceived organizational support in the people’s Republic of China. The International Journal of Human Resource Management 28(9): 1261-1290.
Miao, R. (2011) Perceived organizational support, job satisfaction, task performance and organizational citizenship behavior in China. Journal of Behavioral & Applied Management 12(2): 105-127.
Ministry of Tourism and Sports of Thailand. (2017) Tourism statistics 2017. [Online URL: www.mots.go.th/more_news.php?cid=414&filename=index] accessed on April 20, 2018.
National Statistical Office of Thailand. (2015) The 2014 hotels and guest houses survey. Bangkok: National Statistical Office.
Noor, A. N. M., Khalid, S. A. and Rahaid, N. R. N. A. (2014) Clarifying the effects of human resource diversity management practices on organizational citizenship behavior: The mediating role of diversity receptiveness. Journal of Arts and Humanities 3(5): 25-38.
Nyberg, A. J., Pieper, J.R.,and Trevor, C. O. (2016) Pay-for-performance’s effect on future employee performance: Integrating psychological and economic principles toward a contingency perspective. Journal of Management 42(7): 1753-1783.
O’Donnell, M. and O’Brien, J. (2000) Performanced-based pay in Australian public service: employee perspectives. Reviewof Public Personnel Administration 20, 20-34.
Organ, D. W. (1997) Organizational citizenship behavior: It’s construct clean-up time. Human Performance 10(2): 85-97.
Podsakoff, P. M., Mackenzie, S. B., Moorman, R. H.,and Fetter, R. (1990) Transformationalleader behaviors and their effects on followers’ trust in leader, satisfaction, and organizational citizenship behaviors. Leadership Quarterly 1(2): 107-142.
Podsakoff, P. M., MacKenzie, S. B.,and Podsakoff, N. P. (2003) Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology 88(5): 879-903.
Ren, T., Fang, R.,and Yang, Z. (2017) The impact of pay-for-performance perception and pat level satisfaction on employee work attitudes and extra-role behaviors: An investigation of moderating effects. Journal of Chinese Human Resource Management8(2): 94-113.
Rhoades, L. and Eisenberger, R. (2002) Perceived organizational support: A review of the literature. Journal of Applied Psychology 87(4): 698-714.
Shantz, A., Alfes, K.,and Latham, G. P. (2016) The buffering effect of perceived organizational support on the relationship between work engagement and behavioral outcomes. Human Resource Management 55(1): 25-38.
Sun, L. Y., Aryee, S. and Law, K. S. (2007) High-performance human resource practices, citizenship behavior, and organizational performance: A relational perspective. Academy of Management Journal 50(3): 558-577.
Wee, Y. G., Ahmad, K. Z. and Fen, Y. S.(2012) Promoting organizational citizenship behavior through high involvement human resource practices: An attempt to reduce turnover intention. International Journal of Law and Social Sciences 1(1): 163-168.
Williams, L. J. and Anderson, S. E. (1991) Jobsatisfaction and organizational commitment as predictors of organizational citizenship and in-role behaviors. Journal of Management 17(3): 601-617.
Zin, L. B. M. (2017) The mediating role of perceived organizational support on the relationship between pay and intention to stay. Management Review: An International Journal 12(1): 57-76.
Arefin, S., Raquib, M.,and Arif, I. (2015) The relationship between high performance work systems and proactive behaviors: The mediating role of perceived organizational support. European Scientific Journal 11(2): 314-327.
Boachie-Mensah, F. and Dogbe, O. D. (2011) Performance-based pay as a motivational tool for achieving organizational performance: An exploratory case study. International Journal of Business and Management 6(12): 270-285.
Bogicevic-Milikic, B. and Janicijevic, N. (2009) Cultural divergence and performance evaluation systems: A comparative study of three Serbian companies. Economic Annals 54(180): 40-55.
Boshoff, C. and Allen, J. (2000) The influence of selected antecedents on frontline staff’s perceptions of service recovery performance. International Journal of Service Industry Management 11(1): 63-90.
Boxall, P. and Purcell, J. (2016) Strategy and human resource management, 4th ed., London: Red Globe Press.
Brislin, R. W. (1970) Back-translation for cross-culture research. Journal of Cross-Cultural Psychology 1(3): 185-216.
Chand, M. (2010) The impact of HRM practices on service quality, customer satisfaction and performance in the Indian hotel industry. The International Journal of Human Resource Management 21: 551-566.
Chiang, C. F. and Hsieh, T. S. (2012) The impacts of perceived organizational support and psychological empowerment on job performance: The mediating effects of organizational citizenship behavior. International Journal of Hospitality Management 31(1): 180-190.
Cobb, A. (2011) Pay for performance strategies: Achieving success through communication. Hotel Business Review 1-3.
Cropanzano, R., Rupp, D. E. and Byrne, Z. S. (2003) The relationship of emotional exhaustion to work attitudes, job performance, and organizational citizenship behaviors. Journal of Applied Psychology 88(1): 160-169.
Dagenais-Cooper, V. and Paille, P. (2012) Employee commitment and organizational citizenship behavior in hotel industry: Do Foci matter? Journal of Human Resources in Hospitality & Tourism 11: 303-326.
Deckop, J. R., Mangel, R. and Cirka, C. C. (1999) Getting more than you pay for: Organizational citizenship behavior and pay-for-performance plans. Academy of Management Journal 42(4): 420-428.
Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D. and Rhoades, L. (2001) Reciprocation of perceived organizational support. Journal of Applied Psychology 86(1): 42-51.
Eisenberger, R., Cumming, J., Armeli, S. and Lynch, P. (1997) Perceived organizational support, discretionary treatment, and job satisfaction. Journal of Applied Psychology 82(5): 812-820.
Eisenberger, R., Huntington, R., Hutchison, S. and Sowa, D. (1986) Perceived organizational support. Journal of Applied Psychology 71(3): 500-507.
Fornell, C. and Larcker, D. F. (1981) Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18: 39-50.
Gilbreath, B. and Harris, M. M. (2002) Performance-based pay in the workplace: Magic potion or malevolent poison? The Behavior Analyst Today 3(3): 311-322.
Hair, J. F., Black, W. C., Babin, B. J. and Anderson, R. E. (2010) Multivariate Data Analysis: A Global Perspective. Upper Saddle River: Pearson Education.
Hempel, P. S. (2001) Differences between Chinese and Western managerial views of performance. Personnel Review 30(2): 203-226.
Heneman, R. L., Greenberger, D. B. and Strasser, S. (1988) The relationship between pay-for-performance perceptions and pay satisfaction. Personnel Psychology 41(4): 745-759.
Jain, A. K., Giga, S. I. and Cooper, C. L. (2013) Perceived organizational support as a moderator in the relationship between organizational stressors and organizational citizenship behaviors. International Journal of Organizational Analysis 21(3): 313-334.
Karatepe, O. M. (2013) High-performance work practices and hotel employee performance: The mediation of work engagement. International Journal of Hospitality Management 32(1): 132-140.
Knies, E. and Leisink, P. (2014) Linking people management and extra-role behavior: Results of a longitudinal study. Human Resource Management Journal 24(1): 57-76.
Lazear, E. P. (2000) Performance pay and productivity. American Economic Review 90(5): 1346-1361.
Lee, H-J., Iijima, Y. and Reade, C. (2011) Employee preference for performance-related pay: predictors and consequences for organizational citizenship behavior in a Japanese firm. International Journal of Human Resource Management 22(10): 2086-2109.
Liao, H., Toya, K., Lepak, D. P. and Hong, Y. (2009) Do you see eye to eye? Management and employee perspectives of high-performance work systems and influence processes on service quality. Journal of Applied Psychology 94(2): 371-391.
Ma, E. and Qu, H. (2011) Social exchange as motivators of hotel employees’ organizational citizenship behavior: The proposition and application of a new three-dimensional framework. International Journal of Hospitality Management 30(3): 680-688.
Ma, E., Qu, H., Wilson, M.,and Eastman, K. (2013) Modeling OCB for hotels don’t forget the customers. Cornell Hospitality Quarterly 54(3): 308-317.
Mathumbu, D. and Dodd, N. (2013) Perceived organizational support, work engagement and organizational citizenship behavior of nurses at Victoria Hospital. Journal of Psychology 4(2): 87-93.
Mayes, B. T., Finney, T. G., Johnson, T. W., Shen, J., and Yi, L. (2017) The effect of human resource practices on perceived organizational support in the people’s Republic of China. The International Journal of Human Resource Management 28(9): 1261-1290.
Miao, R. (2011) Perceived organizational support, job satisfaction, task performance and organizational citizenship behavior in China. Journal of Behavioral & Applied Management 12(2): 105-127.
Ministry of Tourism and Sports of Thailand. (2017) Tourism statistics 2017. [Online URL: www.mots.go.th/more_news.php?cid=414&filename=index] accessed on April 20, 2018.
National Statistical Office of Thailand. (2015) The 2014 hotels and guest houses survey. Bangkok: National Statistical Office.
Noor, A. N. M., Khalid, S. A. and Rahaid, N. R. N. A. (2014) Clarifying the effects of human resource diversity management practices on organizational citizenship behavior: The mediating role of diversity receptiveness. Journal of Arts and Humanities 3(5): 25-38.
Nyberg, A. J., Pieper, J.R.,and Trevor, C. O. (2016) Pay-for-performance’s effect on future employee performance: Integrating psychological and economic principles toward a contingency perspective. Journal of Management 42(7): 1753-1783.
O’Donnell, M. and O’Brien, J. (2000) Performanced-based pay in Australian public service: employee perspectives. Reviewof Public Personnel Administration 20, 20-34.
Organ, D. W. (1997) Organizational citizenship behavior: It’s construct clean-up time. Human Performance 10(2): 85-97.
Podsakoff, P. M., Mackenzie, S. B., Moorman, R. H.,and Fetter, R. (1990) Transformationalleader behaviors and their effects on followers’ trust in leader, satisfaction, and organizational citizenship behaviors. Leadership Quarterly 1(2): 107-142.
Podsakoff, P. M., MacKenzie, S. B.,and Podsakoff, N. P. (2003) Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology 88(5): 879-903.
Ren, T., Fang, R.,and Yang, Z. (2017) The impact of pay-for-performance perception and pat level satisfaction on employee work attitudes and extra-role behaviors: An investigation of moderating effects. Journal of Chinese Human Resource Management8(2): 94-113.
Rhoades, L. and Eisenberger, R. (2002) Perceived organizational support: A review of the literature. Journal of Applied Psychology 87(4): 698-714.
Shantz, A., Alfes, K.,and Latham, G. P. (2016) The buffering effect of perceived organizational support on the relationship between work engagement and behavioral outcomes. Human Resource Management 55(1): 25-38.
Sun, L. Y., Aryee, S. and Law, K. S. (2007) High-performance human resource practices, citizenship behavior, and organizational performance: A relational perspective. Academy of Management Journal 50(3): 558-577.
Wee, Y. G., Ahmad, K. Z. and Fen, Y. S.(2012) Promoting organizational citizenship behavior through high involvement human resource practices: An attempt to reduce turnover intention. International Journal of Law and Social Sciences 1(1): 163-168.
Williams, L. J. and Anderson, S. E. (1991) Jobsatisfaction and organizational commitment as predictors of organizational citizenship and in-role behaviors. Journal of Management 17(3): 601-617.
Zin, L. B. M. (2017) The mediating role of perceived organizational support on the relationship between pay and intention to stay. Management Review: An International Journal 12(1): 57-76.