Acta Universitatis Danubius. Œconomica, Vol 11, No 6 (2015)

Abstract

Pay structure consists of two salient elements: monetary and non-monetary rewards. The ability of administrators to adequately provide these rewards may have a significant impact on personal outcomes. Although this relationship is vital, the role of adequacy of pay structures as an important antecedent was given less emphasisin the organizational pay structure research literature. Thus, this studywas undertakento examine the association between the adequacy of pay structure and personal outcomes. A survey method was conducted to collect data from employees who worked in private institutions of higher learning in Malaysia. The SmartPLSpath model analysis demonstratedthat job satisfaction and organizational commitmentwereimportant outcomes of the adequacyof pay structure in the studied organizations.Furthermore, this study also providedthe relevant discussions, implications and conclusion.