Four possible rewards (or punishments) for innovation – their effect on the employee
-
DOIhttp://dx.doi.org/10.21511/ppm.16(2).2018.21
-
Article InfoVolume 16 2018, Issue #2, pp. 232-240
- 1417 Views
-
204 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
A manager’s attitude to innovation affects an employee’s job satisfaction, and consequently their individual performance. The authors survey employees of Indonesia Stock Exchange-listed companies. Our results confirm that individual performance depends on job satisfaction. However, job satisfaction is not fully contingent on the reward system, or the JRI, or the manager’s attitude. Performance is much affected by other factors, such as stress at work, tension at home, and unrest in the community.
- Keywords
-
JEL Classification (Paper profile tab)M12
-
References33
-
Tables5
-
Figures2
-
- Figure 1. Framework of the study
- Figure 2. Path analysis
-
- Table 1. Percentage of distributed and returned questionnaires
- Table 2. Demografic information of respondents
- Table 3. Composite reliability, Cronbach’s alpha, AVE and R2
- Table 4. Fornell-Larcker Correlation
- Table 5. Measurement of structural model
-
- Aletraris, L. (2010). How satisfied are they and why? A study of job satisfaction, job rewards, gender and temporary agency workers in Australia. Human Relations, 63(8), 1129-1155.
- Atmojo, M. (2012). The Influence of Transformational Leadership on Job Satisfaction, Organizational Commitment, and Employee Performance. International Research Journal of Business Studies, V(02), 113-128.
- Burney, L., & Widener, S. K. (2007). Strategic Performance Measurement Systems, Job- Relevant Information, and Managerial Behavioral Responses- Role Stress and Performance. Behavioral Research in Accounting, 19, 43-69.
- Burney, L. L., Henle, C. A., & Widener, S. K. (2009). A path model examining the relations among strategic performance measurement system characteristics, organizational justice, and extra- and in-role performance. Accounting, Organizations and Society, 34(3-4), 305-321.
- Campbell, D. J., & Gingrich, K. F. (1986). The interactive effects of task complexity and participation on task performance: A field experiment. Organizational behavior and human decision processes, 38(2), 162-180.
- Chong, V. K. (2004). Job‐Relevant Information and its Role with Task Uncertainty and Management Accounting Systems on Managerial Performance. Pacific Accounting Review, 16(2), 1-22.
- de Waal, A. (2003). Behavioral factors important for the successful implementation and use of performance management systems. Management Decision, 41(8), 688-697.
- de Waal, A. (2010). Performance-driven behavior as the key to improved organizational performance. Measuring Business Excellence, 14(1), 79-95.
- de Waal, A., & Counet, H. (2009). Lessons learned from performance management systems implementations. International Journal of Productivity and Performance Management, 58, 367-390.
- de Waal, A. A. (2004). Stimulating performance-driven behaviour to obtain better results. International Journal of Productivity and Performance Management, 53(4), 301-316.
- Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research (JMR), 18(1), 39-50.
- Freeman, R. E., Wicks, A. C., & Parmar, B. (2004). Stakeholder Theory and “The Corporate Objective Revisited”. Organization Science, 15(3), 364-369.
- Hair, J. F., Anderson, R. E., Tatham, R. E., & Black, W. C. (Eds.) (1998). Multivariate data analysis (5th ed.). New Jersey: Prentice-Hall.
- Helm, S. (2013). A matter of reputation and pride: Associations between perceived external reputation, pride in membership, job satisfaction and turnover intentions. British Journal of Management, 24(4), 542-556.
- Kihn, L. A. (2010). Performance outcomes in empirical management accounting research: Recent developments and implications for future research. International Journal of Productivity and Performance Management, 59(5), 468-492.
- Koopmans, L., Bernaards, C., Hildebrandt, V., van Buuren, S., van der Beek, A. J., & de Vet, H. C. W. (2013). Development of an individual work performance questionnaire. International Journal of Productivity and Performance Management, 62(1), 6-28.
- Kren, L. (1992). Budgetary Participation and Managerial Performance: The Impact of Information and Environmental Volatility. The Accounting Review, 67(3), 511-526.
- Lau, C. M., & Sholihin, M. (2005). Financial and nonfinancial performance measures: How do they affect job satisfaction? The British Accounting Review, 37(4), 389-413.
- Lau, C. M., & Tan, S. L. (2003). The effects of participation and job-relevant information on the relationship between evaluative style and job satisfaction. Review of Quantitative Finance and Accounting, 21(1), 17-34.
- Leroy, H., Anseel, F., Gardner, W. L., & Sels, L. (2015). Authentic Leadership, Authentic Followership, Basic Need Satisfaction, and Work Role Performance:A Cross-Level Study. Journal of management, 41(6), 1677-1697.
- O’Driscoll, M. P., & Randall, D. M. (1999). Perceived Organisational Support, Satisfaction with Rewards, and Employee Job Involvement and Organisational Commitment. Applied Psychology, 48(2), 197-209.
- O’Reilly, C. A. I., Chatman, J., & Caldwell, D. F. (1991). People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit. The Academy of Management Journal, 34(3), 487-516.
- Riordan, C. M., Gatewood, R. D., & Bill, J. B. (1997). Corporate image: Employee reactions and implications for managing corporate social performance. Journal of Business Ethics, 16(4), 401-412.
- Sholihin, M., & Pike, R. (2009). Fairness in performance evaluation and its behavioural consequences. Accounting & Business Research, 39(4), 397-413.
- Sholihin, M., Pike, R., & Mangena, M. (2010). Reliance on multiple performance measures and manager performance. Journal of Applied Accounting Research, 11(1), 24-42.
- Subramaniam, N., & Mia, L. (2001). The relation between decentralised structure, budgetary participation and organisational commitment. Accounting, Auditing & Accountability Journal, 14, 12-30.
- Tessema, M. T., & Soeters, J. L. (2006). Challenges and prospects of HRM in developing countries: testing the HRM–performance link in the Eritrean civil service. The International Journal of Human Resource Management, 17(1), 86-105.
- Wong, C. A., & Laschinger, H. K. (2013). Authentic leadership, performance, and job satisfaction: the mediating role of empowerment. Journal of advanced nursing, 69(4), 947-959.
- Yuliansyah, Y., Bui, B., & Mohamed, N. (2016a). How Managers Use PMS to Induce Behavioural Change in Enhancing Governance. International Journal of Economics and Management, 10(2), 509-530.
- Yuliansyah, Y., & Khan, A. (2015a). Interactive use of performance measurement systems and the organization’s customers-focused strategy: the mediating role of organizational learning. Problems and Perspectives in Management, 13(2), 219-229.
- Yuliansyah, Y., & Khan, A. A. (2015b). Strategic Performance Measurement System: A Service Sector and Lower Level Employees Empirical Investigation. Corporate Ownership and Control, 12(3), 304-316.
- Yuliansyah, Y., Rammal, H. G., & Rose, E. L. (2016b). Business Strategy & Performance in Indonesia’s Service Sector. Journal of Asia Business Studies, 10(2), 164-182.
- Yuliansyah, Y., & Razimi, M. S. A. (2015). Non-financial performance measures and managerial performance: the mediation role of innovation in an Indonesian stock exchange-listed organization. Problems and Perspectives in Management, 13(4), 135-145.