Empirical Research On Relationships Between Pay Satisfaction And Organizational Commitment

Organizational commitment is a sense of identity and participation to theorganization, which is just like a psychological contract between employees and theorganization. It can effectively predict employees’ turnover intention. As an importantmeans to stimulate and retain talents, its impact is obvious. Therefore, it has practicalsignificances on studying how pay satisfaction influences each degree of theorganizational commitments. At present the amount of the domestic empirical researchon the relationship between pay satisfaction and organizational commitment is very small,so sample research based on the Bank industry is much more scarce.To explore the relationship between pay satisfaction and organizationalcommitment,this paper take the front-line staff of Postal Savings Bank as an example. Inthe theoretical sense, this paper is expected to do further research on organizationalcommitment and pay satisfaction. In the real sense, this paper is expected to makeimprovement of the remuneration packages so that can enhance the front-lineemployees’ organizational commitment, meanwhile, can provide a reference for the othercommercial banks of enhancing their employees’ organizational commitment. As for thesample choosing,this paper did researches and analyzed part of the branches ofPostal Savings Bank’s frontline employees in Liaoning and Shandong provinces. Afterdesigning questionnaires and using mathematical statistics, this paper successfullyverified the mentioned assumptions and analyzed the impact of the pay satisfaction andorganizational commitment. The main findings are as follows:1. Although the measurement of the pay satisfaction questionnaire remainscontroversial, the four dimensions of the pay satisfaction scale is completely applied tothis research. These four dimensions are measured with high reliability and validity,including the remuneration system and management levels, salary levels, benefits levelsand pay levels.2. Pay satisfaction and organizational commitment will have a change ifdemographic variables changes. The biggest difference comes from the form ofemployment, at the same time; there appears a significant difference in many dimensionsof pay satisfaction and organizational commitment between fulltime employees and dispatched employees.3. Pay satisfaction and the organizational commitment have a positive dependencyrelation, which means organizational commitment levels will increase as the increase inthe pay satisfaction.4. The impact of each dimension in pay satisfaction to each dimension inorganizational commitment is different. Through the research, the continued commitmentis mainly affected by welfare; emotional commitment by pay levels and pay raisinglevels, normative commitment by pay levels.At the end, according to the actual situation of the Postal Savings Bank andcombining with the results of empirical research, there are some suggestions are madeabout the compensation management. Meanwhile, the future research direction isprospected.