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The Impact of Managerial Support on the Association Between Pay Satisfaction, Continuance and Affective Commitment, and Employee Task Performance:

The Impact of Managerial Support on the Association Between Pay Satisfaction, Continuance and... This research study explores the moderating effect of managerial support and mediating effect of continuance and affective commitment on the association of employees’ pay satisfaction and their task performance. Data were collected from the university’s faculty members of Kingdom of Saudi Arabia (N = 610) at two phases in time through random sampling technique. For data analysis, descriptive statistics, Pearson’s correlation analysis, and Preacher and Hayes’s PROCESS macro were utilized. The result showed that commitment positively mediates the relationship between pay satisfaction and manager-rated task performance, whereas pay satisfaction has an indirect positive relationship with task performance through continuance and affective commitment and was stronger in faculty having high managerial support. The continuance commitment mediation for the relationship of pay satisfaction and task performance is stronger compared with the mediation of affective commitment for the same relationship. This study provides a significant contribution to the literature of pay satisfaction by proposing and analyzing the associations between pay satisfaction and task performance as mediated by forms of organizational commitment and first- and second-order moderation of managerial support. The current study adds to the limited research on the effect of managerial support and commitment on the association of pay satisfaction and their task performance in higher education sector of Saudi Arabia. Keywords Keywords, pay satisfaction, managerial support, affective commitment, continuance commitment, manager-rated employee task performance and is an important factor that ensures their effective perfor- Introduction mance (Gieter & Hofmans, 2015). The construct of PS is Pay is a major component of employee compensation in all developed from different compensation aspects, including organizations, and employees’ pay satisfaction (PS) is a pay level, increment level, administration and structure of major element in achieving organizational goals and objec- pay, and benefits (Milkovich et al., 2014; Panaccio et al., tives (Milkovich et al., 2014; Tran, 2017). After exploring 2014), whereas the construct of employees’ job performance few of groundbreaking motivational theories such as expec- includes those activities that are essential and formal compo- tancy theory (Blau, 1964), equity theory (Adam, 1963), and nents of an employee’s job (Smith et al., 2018). reinforcement theory (Skinner, 1968), it was proven that Research studies conducted by different scholars in the employees’ satisfaction with compensation triggers employ- last decade provide evidence of indirect but positive relation- ees’ attitudes that organizations usually desire (i.e., commit- ship between PS and employee task performance (ETP) ment and performance) (Adam, 1963; Blau, 1964; Gieter & Hofmans, 2015; Vroom, 1964). Organizations have to ensure that employees are satisfied King Abdulaziz University, Jeddah, Saudi Arabia with their pay because pay dissatisfaction can negatively Corresponding Author: influence employees’ retention, commitment, trust, and, Komal Khalid, Assistant Professor (Human Resource Management), most importantly, their performance levels (Jung & Yoon, Faculty of Economics and Administration, King Abdulaziz University, 2015; Miao et al., 2014). Employees’ PS signifies their posi- Jeddah 21441, Saudi Arabia. Email: kmuddassar@kau.edu.sa tive and negative feelings for their pay (Panaccio et al., 2014) Creative Commons CC BY: This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage). 2 SAGE Open (Chiang & Birtch, 2012; Gieter & Hofmans, 2015; Kappagoda their knowledge economies with the help of high-skilled et al., 2014; Ren et al., 2017; Sieweke et al., 2017), but how experts and have to reduce their dependence on fuel PS influences ETP is still vague. All these studies show that resources. Saudi Arabia currently is a leading educational employees’ perception of their PS can affect their work- hub because of its high per capita income and high-level related attitudes, including job satisfaction and motivation spending on its educational setup. This high-level spending and in turn employee in role and extra role performance. So, in educational sector specifies the commitment of Saudi the first contribution of this study is to explore the mediating Arabia for national development (Nikolaidis et al., 2018). influence of an essential work-related attitude organizational Moreover, the first university in Saudi Arabia (i.e., King commitment (affective commitment [AC] and continuance Saud University) was established in 1957. There are now 32 commitment [CC]) on PS and task performance relationship. public sector and 10 private sector universities with more than AC signifies an employee’s emotional affiliation with the 140 campuses. Some 20 colleges and vocational and technical organization, whereas CC represents an employee’s percep- training corporation are also part of the higher education sec- tion of cost related to leaving the organization (H. K. Kim, tor of Saudi Arabia (Subbarayalu & Al Kuwaiti, 2019). The 2014). As employees’ satisfaction with pay can improve higher education sector was selected for research because it employees’ emotional affiliation with the organization, it can reflects the importance that these higher education institutes also influence employees’ perception of cost for leaving the (HEIs) have for the future development of the country (Fallatah organization. If compensation or pay is higher, then the cost & Syed, 2018; Subbarayalu & Al Kuwaiti, 2019). As Kingdom of leaving the organization will also be higher (H. K. Kim, of Saudi Arabia (KSA) represents an interesting underre- 2014). As both forms of commitment are related to ETP (H. searched location having a unique religious and cultural K. Kim, 2014; Yousaf et al., 2015), it seems rational that PS framework and has a key strategic role in the world economy, and ETP relationship is mediated by CC and AC. it could be a valuable addition in our understanding. This This study also investigates the moderating effect of man- study also aims to explore the significance, direction, and agerial support (MS), especially in relation to the influence strengths of the relationships among PS, two forms of commit- of PS on CC and AC on ETP. MS is a latest addition in per- ment (AC and CC), MS, and ETP. ceived organizational support (Travaglione et al., 2017). It identifies that managers have to support their subordinates in Research Objectives facing challenges by developing secure psychological envi- ronment and trust culture within the organization, which can This study includes the following core research objectives: result in enhancing employee commitment and performance levels (Boxall & Macky, 2009; Travaglione et al., 2017). 1. To explore and understand the mediation of CC and This research study has explored the influence of MS in AC on PS–ETP association; three directions. It examines the influence of MS on PS– 2. To explore and understand a moderated condition of commitment (AC and CC)–ETP relationships. First, MS as a MS that associates with direct relationship of PS and moderator has a positive influence on employees’ indirect ETP; relationships of PS–AC–CC; it is expected that it will 3. To explore and understand a moderated condition of strengthen the relations. Second, as a moderator of indirect MS that associates with indirect association of PS associations between CC–ETP and AC–ETP, MS is also and ETP through CC and AC. expected to strengthen this relationship. Third, as probably PS would have certain direct influence on task performance, Literature Review this direct relationship can be moderated by MS. Higher PS would result in expected enhanced employee performance Theoretical Background and it is expected that this relationship would be strength- ened with high levels of MS. Managers have to deal and con- Reinforcement theory proposed that individuals shape their front many of employees’ work- and non-work-related issues behavior through a process by controlling the consequences such as interpersonal conflict, workplace bullying, ambigu- of the behavior (Skinner, 1968). It suggests that employees’ ous tasks, financial stresses, and concern for family mem- PS is related to their ETP, and organizations use it as a sup- bers. So, higher levels of MS can help employees to become porting mechanism to achieve their individual and organiza- more satisfied with available pay and improve work perfor- tional objectives (Khan & Baloch, 2017). Expectancy theory mance (Travaglione et al., 2017). (Vroom,1964) proposed that individuals will involve in activities and behaviors that give them valuable outcomes (i.e., satisfaction, pay), to only that level they think they are Significance of the Study able to give (i.e., performance). Equity theory (Adam, 1963) Over the last two decades, Middle Eastern countries, includ- posits that employees perceive their pay fair and they also ing Saudi Arabia, have an increasing focus on their higher feel satisfied depending on their pay compared with the ref- education sector. They have realized that they need to build erent others. Also, employees adjust their work outputs (i.e., Khalid 3 performance) compared with their pay. Employees with high value of employment with the organization (i.e., cost of leav- PS, AC, and CC levels put more efforts in attaining high per- ing the job), so it will more likely be influenced by PS and formance levels (Buttner & Lowe, 2017; Shaw, 2014; Wang hence would affect employee efforts to perform better and et al., 2015). The theoretical explanation for the PS–ETP sustain the job (Cherian et al., 2018). Hence, higher PS level relationship, AC, CC–ETP relationship, and MS–ETP rela- would increase the value of associated outcomes and would tionship can be referred to in Blau’s (1964) social exchange enhance employee efforts to sustain the job (increase in per- theory which specifies that when employee and employer formance level). The findings of the study conducted by both accept and follow the exchange rules, they will have a Malik et al. (2016) demonstrated that satisfaction with pay more positive, strong, and fruitful relationship. Organizations had a significant positive influence on the AC and CC of fac- would provide fair and equivalent pay and provide MS to the ulty members, and it consequently influences employee employees, and in exchange employees would feel gratified performance. to respond with a higher level of attitudinal work outcome According to Nakra (2014), normative commitment such as commitment and task performance (Krishnan et al., represents an employee’s moral obligation toward organi- 2018). According to these theories, organizations should zation and PS involves cognitive judgment of fair compen- administer pay in a very careful manner, that is, higher pay sation of an employee’s job, so normative commitment depends on higher level of future task performance, to was not included in the study model. Moreover, according expand the incentive effect. to the studies of Fu and Deshpande (2014) and Tolentino (2013), normative commitment being felt obligation has a strong correlation with AC and has insignificant impact on PS, Commitment, and ETP job performance outside the influence of AC. The study Many studies have worked on the relationship between conducted by Lapointe et al. (2011) describes that PS is employee satisfaction and their pay and task performance associated with normative commitment but has no impact levels (Gieter & Hofmans, 2015; Muse et al., 2008), but still on its outcome. On these bases, normative commitment this relation is unclear because employee performance is a was not included in this study. Both AC (affective) and CC multidimensional factor and can be measured in different (calculative) have distinct ways in nature that influence PS ways (e.g., self-rated, supervisor rated, or objective perfor- and ETP relationship. Thus, the following hypotheses were mance). PS is defined as the overall amount of positive feel- proposed: ings of an employee toward his or her pay (Danish et al., 2015). Employees’ job performance consists of two subcom- Hypotheses 1a: AC mediates a positive relationship ponents (i.e., task performance and contextual performance; between PS and ETP. Kluemper et al., 2013). Task performance includes all those Hypotheses 1b: CC mediates a positive relationship activities that are the important and formal components of an between PS and ETP. employee’s job, whereas contextual performance includes activities that are informal aspects of an employee’s job (i.e., PS and ETP coordination, cooperation, citizenship behavior) (Kluemper et al., 2013; Smith et al., 2018). In organizational context, PS is a subdimension of general job satisfaction (Dawson, ETP is more critical for organizational survival than contex- 2017; Parker & Brummel, 2016), that is, an emotional out- tual performance (Smith et al., 2018), so for understanding come of an employee’s working environment that can influ- the relationships among PS, AC, CC, and employee perfor- ence his work outcomes (task performance) independently mance, more attention is given to ETP. There are very limited (Arya et al., 2019). studies available that examine PS relationship with employee Employees’ low performance could be an outcome of low performance, along with the mediation of AC and CC PS (Chaudhry et al., 2011). According to Lawler’s (1971) (Abdullah & Ramay, 2012; Mohammed & Eleswed, 2013). model, the relationship between PS and ETP is very impor- The reason for anticipating the influence of AC on PS– tant. Employees’ actual performance is related to internal ETP relationship is based on Blau’s social exchange theory and external pay equity, which in turn is related to PS (Blau, 1964). According to that, if employees are satisfied (Talukdar, 2012). In general, pay is one of the most important with their pay, it may give them a perception that the organi- aspects of a job, and to some extent it motivates an employee zation appreciates and recognizes their contributions. By to perform better, but studies conducted by Talukdar (2012) this, the organization satisfies employees’ socio-emotional and Mohamed et al. (2017) found a negative and small but needs (i.e., need for affiliation and recognition), which would significant association between PS and ETP. This provides result in the employees working for organizational welfare us an opportunity for further in-depth research. Thus, the fol- (higher work performance) in exchange (Schreurs et al., lowing hypothesis was proposed: 2013). The study also provides an argument regarding the influ- Hypotheses 2: PS is directly and significantly related to ence of PS on CC. CC is more associated with the financial ETP. 4 SAGE Open to boost their morale to not only retain their jobs but also The Moderating Role of MS enhance their performance (Malik et al., 2016). Employees MS refers to the readiness of managers to accommodate having CC only remain with the organization because they do employees’ schedules and tasks and provides assistance that not have any better alternative available or they need that job can help employees in managing their work and making it for financial or personal reasons (H. K. Kim, 2014). According better (T. Kim & Mullins, 2016). It can be a crucial organiza- to Dar and Sharma (2016), CC has a weak and negative rela- tional cultural factor that can influence employees’ organiza- tion with ETP. So, Celik and Findik (2012) suggest that mana- tion-related attitudes and behaviors (improve productivity, gerial and organizational support can reduce the feeling of retention, commitment) (Saridakis et al., 2018). MS has entrapment of an employee, which may be developed because gained the attention of researchers and is found to have an of the high cost of leaving the organization. influence on organizational and employee outcomes such as It is expected that PS influences both subdimensions of performance and retention (Wassem et al., 2019). He et al. CC (i.e., the perceived sacrifice related to leaving and the (2011) suggested that organizational commitment shows the perceived lack of alternatives). If an employee has PS, then it organizational leadership quality, so it could be rationalized will increase cost in case of exit (Vandenberghe & Tremblay, that MS would have a significant influence on developing 2008). According to fairness heuristic theory, PS also pro- organizational commitment. vides information regarding employees’ status within the To raise the AC level of employee, PS is more important organization, and higher PS means higher perceived value of than actual pay level of employees. If pay levels reach a cer- the employee within the organization, which enhances CC tain level, then factors like MS and organizational support based on perceived last of alternatives (Asrar-ul-Haq et al., become crucial (Olafsen et al., 2015). According to Adam’s 2017). (1965) equity theory and Blau’s (1964) social exchange the- The favorable or unfavorable treatment that an employee ory, if employees perceive that there is fairness in the organi- receives from his or her manager depicts the manager’s sup- zation (both procedural and distributive justice) in pay (i.e., portive or unsupportive behavior toward them (Shoss et al., PS), a range of positive behaviors will be pursued within the 2013). PS is strongly related to CC, and this relation becomes organization. Moreover, high MS produces a give-and-take stronger as an employee’s manager or supervisor is more relationship between the manager and the employee and it supportive (He et al., 2011). MS is enhanced by the positive will strengthen employee’s association with the organization treatment of the manager, which increases employee’s com- (Jose & Mampilly, 2015). mitment because MS increases the cost of leaving the job. While exploring the role of emotional commitment (i.e., affective) and employee performance, especially in Middle Hypotheses 3b: MS through CC moderates the first and Eastern countries, it was concluded that more committed second stage of the indirect (positive) relationship of PS employees tend to have higher performance levels (Zeffane and ETP. & Bani Melhem, 2017). Moreover, those employees who perceive existence of high MS within their organizations For improving ETP, employees should be satisfied with have higher AC and employee performance levels (Huey their earnings (pay/compensation) (Jung & Yoon, 2015). But Yiing & Zaman Bin Ahmad, 2009). Studies show that for those employees who are already satisfied with their pay, employees would show more AC and hence have higher per- financial compensation is not the best motivator for enhanc- formance when their managers are supportive, whereas in ing performance. Managers should consider other aspects the absence of MS, employees would feel frustrated and such as creating a conducive working environment or pro- angry toward the organization (i.e., absence or reduced level viding MS (Schreurs et al., 2013). of AC), thus resulting in lower levels of employee perfor- In a specific pay grade, a slight variation exists in pay; how- mance (Ma Prieto & Pilar Perez-Santana, 2014). Thus, the ever, a variation in ETP exists. So, employees’ PS might not following hypothesis was proposed: relate to ETP (Edwards et al., 2008). PS in the absence of MS has a weak relation to employee outcomes (i.e., performance, Hypotheses 3a: MS through AC moderates the first and turnover, commitment) (Bhatnagar, 2014; Raza et al., 2017). second stage of the indirect (positive) relationship of PS and ETP. Hypotheses 4: MS positively moderates the direct rela- tionship of PS and ETP. MS could also influence the association of PS and CC, and afterward the association of CC and ETP. In general, it is Method argued in this study that these relationships became stronger in employees as MS increases. Sample and Procedure CC is an exchange framework where benefits and rewards are given in exchange for loyalty. Hence, it is essential for the The current study was conducted among teaching staff of organizations to identify those factors that can help employees HEIs (i.e., 22 universities and eight colleges) located in Khalid 5 KSA (i.e., Jeddah, Makkah, Riyadh, Madinah, Yanbu, follows: SAR 6,000 to 10,000 (20.20%), SAR 11,000 to 15,000 Dammam, and Jazan cities). According to the statistics (36.6%), SAR 16,000 to 20,000 (32%), SAR 21,000 to 25,000 provided by Planning and Development Agency of (9.5%), and more than SAR 25,000 (1.7%). Ministry of Education in Saudi Arabia, the total number of To verify that subject attrition has led to nonrandom sam- faculty members in HEIs is approximately 70,000 in the pling, the probability of remaining in the sample in Phase 2 selected cities (Planning and Development Agency, 2018). (N = 610) among Phase 1 respondents (N = 1,040) could be After presenting survey forms to the university deans and predicted by demographics and independent variables. heads of colleges and taking their approvals, the survey Results of logistic regression analysis showing nonsignifi- was circulated among faculty members (N = 3,100). Data cant values for demographic (age, gender, education, and were collected through self-administered survey forms and income level) and independent variables (PS, AC, CC, and by using online surveys in two phases having a time gap of MS) predict that respondent attrition was random. 12 months from research assistant, lecturer, assistant pro- fessor, associate professor, and professor level of faculty Measures members. A random sampling technique was used for data collection in the first phase because it provides each mem- The original questionnaire was developed in English, and ber with every possible sample of the same size. Moreover, then by using the backward translation method it was trans- simple random sample technique and a large sample size lated into Arabic. The questionnaire includes gender, age, have to be developed to reduce the sampling error. On the education, and income level as demographic variables. In basis of this technique, almost 10 to 15 questionnaires Phase 1 of data collection, PS was measured using the 11-item were given to each department head depending on the size PS questionnaire (PSQ) of Heneman and Schwab (1985). of their department. For self-administered survey forms, Four aspects of PS were measured in the study (i.e., pay level, they were collected after 2 days although it took only 7–9 benefits, pay raise, and pay administration), but because of min to complete them. For online survey forms, two high intercorrelation among these four aspects of PS, it was reminders were sent to nonrespondents after a gap of 1 considered as one variable. The same approach was adopted week. Respondents were provided assurance regarding the by Panaccio et al. (2014). A sample item is “I am satisfied confidentiality of their responses and that it would be used with the value of my benefits.” MS was measured using the for research purposes only. Phase 1 of the data collection 12-item scale of Kang et al. (2015). A sample item is “My was conducted in September 2017 and Phase 2 of the data supervisor cares about whether or not I achieve my career collection was conducted in September 2018. This time goals.” Manager-rated ETP was measured by the 5-item scale gap was selected because faculty members have 2-month of Gong et al. (2009). A sample item is “He or she performs vacations (from June till August) and they get their annual tasks that was expected of him or her.” AC was measured by increment in September. At Phase 1, 1,040 faculty mem- the 6-item scale of Lapointe et al. (2011). A sample item is “I bers provided us usable responses (response rate = really feel as if this organization’s problems are my own.” CC 33.55%). In this phase, information regarding PS, AC, CC, was measured by the 6-item scale of Hekman et al. (2009). A MS, and demographics was collected. For the second sample item is “I feel that I have too few options to consider phase of data collection, questionnaires were distributed to leaving this organization.” Kaiser–Meyer–Olkin (KMO) all the supervisors of respondents of first phase of data col- measure of sampling adequacy for MS was .85 (Sig. = .00), lection. The data regarding ETP were collected in Phase 2. for ETP was .89 (Sig. = .00), for AC was .87 (Sig = .00), and According to Saudi Ministry of Labor, higher education for CC was .93 (Sig. = .00), which show that the sample is sector constitutes more than 60% expatriates. So, for data enough to achieve these test results and do not have high analysis at Phase 2 of data collection, 657 respondents pro- inter-item correlations. The multicollinearity statistics (vari- vided their responses, and after using Cook’s distances and ance inflation factor [VIF] and tolerance) show (Table 2) that leverage value methods of outlier detection, 47 responses there is no multicollinearity (VIF values are less than 10 and were removed and only 610 responses were used for fur- tolerance values are less than 1). Reliability statistics (i.e., ther data analysis. As suggested by Baruch (1999), a Cronbach’s α) for all the variables are above .80 and validity response rate of 35% is appropriate if the study involves statistics (i.e., average variance extracted) are above 50% (see data collection from top management and organizational Table 2). These statistics show that the construct’s reliability representatives. and convergent validity are according to the recommended The final sample includes 75.1% male respondents and criteria (Chaoyun & Tsorng-Lin, 2014). 24.9% female respondents; 20.24% of respondents were between the age group of 21 and 30 years, 52.68% were between Data Analysis the age group of 31 and 40 years, 18.05% were between the age group of 41 and 50 years, and 9.02% of respondents were more Confirmatory Factor Analysis than 50 years old. In total, 365 respondents (59.8%) had a PhD, whereas 245 respondents (40.2%) had a master’s degree. To examine the dimensionality of our research variables Respondents’ monthly income levels were distributed as (MS, PS, AC, CC, and ETP), confirmatory factor analysis 6 SAGE Open Table 1. Confirmatory Factor Analysis of Measurement Models. 2 2 Model χ df Δχ Δdf NNFI CFI RMSEA Hypothesized five-factor model 242.73* 93 — — .92 .96 .066 Four-factor models Combining MS and AC 862.74* 95 486.91* 5 .84 .86 .110 Combining MS and CC 881.64* 95 513.83* 5 .86 .89 .140 Combining PS and AC 1,138.34* 95 837.36* 5 .90 .91 .120 Combining PS and CC 1,042.21* 95 538.94* 5 .89 .92 .210 One-factor model 2,219.43* 101 2,076.55* 10 .81 .83 .160 Note. N = 410. NNFI = nonnormed fit index; CFI = comparative fit index; RMSEA = root mean square error of approximation; MS = managerial support; AC = affective commitment; CC = continuance commitment; PS = pay satisfaction. *p < .001. was conducted by using LISREL (linear structural relations). As per the results of Table 3, model variables contribute To simplify our model, items were combined resulting in significant variance in ETP, χ (10) = 70.38, p < .001, −2 three indicators per construct (MS, ETP, CC, and AC), and log-likelihood (LL) = 346.32, Nagelkerke’s R = .33. In the for PS construct one indicator was created for each pay second step, PS was positively associated with ETP (β = dimension (i.e., four indicators for PS construct, a total of 16 0.83, p < .001). In the third step, the interactional term of indicators). The theoretical model was then analyzed and MS and PS was also associated with ETP (β = 0.98, p < compared for more practical solutions by utilizing the chi- .01). The significant values of coefficient variables reveal square difference test (Bentler & Bonett, 1980). that PS, CC, AC, and MS are positively associated with Table 1 represents the four-factor hypothesized model ETP. including PS, MS, and dimensions of AC and CC, yielding Associations between odds ratios and logistic regression good fit to the data: χ (93) = 242.73, p < .001, comparative coefficients of the variables are also presented in Table 3. fit index (CFI) = .96, nonnormed fit index (NNFI) = .92, These odd ratios reveal the factor by which the probability root mean square error of approximation (RMSEA) = .066. increase in ETP is multiplied for each unit increase in the PS. For parsimonious representation of data, results of Table 1 Ratios which are significant and below 1 are related to the supported the model. These findings prove that the variables likelihood of increase in ETP. In the last step, AC (β = 0.63, of the study are distinct. p < .001) and CC (β = 0.51, p < .01) were significant pre- dictors of increase in ETP, whereas the interactional term MS × PS was also significant (β = 0.99, p < .01) and the coef- Descriptive and Correlation Statistics ficient of PS became nonsignificant (β = 0.35, NS). These Table 2 represents the descriptive, multicollinearity, and results imply that PS, MS, AC, and CC are engaged in medi- correlation statistics of the variables. The mean value of the ation and moderation relationships. variables ranges from 4.43 to 5.15 and the standard devia- tion ranges from 0.60 to 0.97. To measure the relationships Hayes’s Moderated Mediation Analysis among variables, Pearson’s correlation analysis was con- ducted. As suggested by Singh and Sharma (2016), the data For hypotheses testing, a combination of Hayes’s (2013) were examined for normality (i.e., skewness and kurtosis), moderation and mediation analytical framework was uti- outliers (Cook and leverage), and missing values. PS is lized. The theoretical framework shown in Figure 1 positively correlated with ETP (r = .77), MS (r = .53), AC hypothesizes that MS will moderate the (a) PS to ETP path, (r = .58), and CC (r = .40). These results can be better (b) PS to AC and CC path (first stage of indirect effect), described with further tests and are then discussed and (c) AC and CC to ETP path (second stage of indirect accordingly. effect). This model can be evaluated through Hayes’s PROCESS macro (Model 59). For evaluating this moder- ated mediation model, it requires estimation of the follow- Logistic Regression Analysis ing equations: Moderated logistic regression analysis was conducted by using ETP as the dependent variable. In the first step, age, AC =α + a PS + aMS + a PSMS + e AC01 12 3MS (1) gender, and pay levels were entered as control variables. In the second step, centered MS and PS were entered. In the third step, product term of MS and PS was entered, and in the CC =+ α a PS + aMS + a PSMS + e AC01 12 3MS last step, CC and AC were entered. (2) Khalid 7 Table 2. Descriptive, Reliability, Average Variance Explained, Multicollinearity, and Correlation Statistics. Descriptive Multicollinearity Correlation analysis Variables M SD Skew Kurt Tolerance VIF 1 2 3 4 5 6 7 8 9 1. Gender 1.25 0.43 — — — — — 2. Age 1.43 0.57 — — — — –.10 — 3. Education 1.60 0.72 — — — — –.06 .24** — 4. Inc. Level 2.56 0.73 — — — — .09 .12* .17** — 5. PS 4.72 0.72 0.97 1.92 .43 2.58 .04 –.02 –.01 .24** — 6. MS 4.86 0.84 1.29 1.74 .31 3.94 .04 –.07 –.10 .14 .53** — 7. AC 4.68 0.68 1.77 1.46 .28 2.71 .04 –.04 .18* .17* .58** .47** — 8. CC 4.43 0.60 0.84 1.62 .36 4.52 –.03 –.12 .23** .12* .40** .36** .37** — 9. ETP 5.15 0.97 0.93 1.79 .49 3.27 .02 –.07 .28* .26* .77** .69** .75** .57** — Note. For age: 1 = 20–30 years, 2 = 31–40 years, 3 = 41–50 years, 4 = 50+ years; for gender: 1 = male, 2 = female; for education: 1 = masters, 2 = PhD. PS = pay satisfaction; MS = managerial support; AC = affective commitment; CC = continuance commitment; ETP = employee task performance; VIF = variance inflation factor. *p < .05. **p < .01. Table 3. Moderated Logistic Regression Analysis for Employee Task Performance. Step Variable(s) entered B Exp(B) B Exp (B) B Exp(B) B Exp(B) 1 Age .14* .84 .27* .74 .38** .63 .44** .56 Gender .04 .93 .13 .99 .07 1.20 .06 .79 Pay Level .17 .83 .04 .91 .09 .97 .03 .81 2 PS .83** 1.16 .89** .54 .35 1.14 MS .37 .58 .46 .51 .42 .84 3 MS × PS .98* .42 .99* .48 4 AC .63*** .73 CC .51** .62 ΔR .04*** .09*** .06*** .14*** 2 2 Note: Exp(B) refers to the odds ratio. The ΔR row includes Nagelkerke’s ΔR values. Final model statistics: χ²(10) = 70.38, p < .001, −2LL = 346.32, constant = 0.421, Nagelkerke’s R = .33. PS = pay satisfaction; MS = managerial support; AC = affective commitment; CC = continuance commitment; LL = log-likelihood. *p < .05. **p < .01. ***p < .001. impact of MS on PS effect on CC. Finally, Equation 3 evalu- ates the moderating impact of MS on the relationships of PS, AC, and CC to ETP. Thus, it presents the total moderated mediation effect model containing direct, indirect, and total effects. By using Preacher and Hayes’s PROCESS macro Model 59, coefficients of Equations 1 to 3 were estimated with age, gender, and pay levels of respondents as control variables. Table 4 represents coefficients for Equations 1 and 2, whereas coefficients of Equation 3 are presented in Table 5. Coefficients of Equations 1 and 2 are reported in Table 4, Figure 1. Theoretical framework. whereas coefficients of Equation 3 are presented in Table 5. As shown in Table 4, PS has a significant and positive asso- ciation with AC (β PS = 0.58, p < .001), whereas as per ′′ ′ ETP =+ α c PS + cMS + c PSMS ETP1 23 Table 5, AC was associated with ETP (β = 0.33, (3) 1AC + bAC + b CC + bACMS + + b CCMS + e 12 3 4ETP p < .001). In addition to that, by utilizing the bootstrap approach, a significant and indirect relationship of PS to ETP Equation 1 evaluates the moderation impact of MS on PS through AC was found (0.041, 95% confidence interval effect on AC, whereas Equation 2 evaluates the moderation [CI] = [0.046, 0.016]). Thus, it provides support to 8 SAGE Open Table 4. Results of Equations 1 and 2. Mediators β PS β MS β PSMS β PS β MS β PSMS R 1 2 3 1 2 3 AC .58** .33* –.03 .36 CC .31** .43** .24** .47 Note. N = 410. Entries are unstandardized coefficient estimates from Equations 1 and 2, the coefficients of which are reported by utilizing the Hayes’s PROCESS macro Model 59. PS = pay satisfaction; MS = managerial support; AC = affective commitment; CC = continuance commitment. *p < .05. **p < .01. ***p < .001. Table 5. Results of Equation 3. ′ ′ ′ cPS cMS c PSMS β β β ACMS β CCMS R F 2 3 1AC 2CC 3 4 1.22*** 0.88*** 1.09** 0.33*** 0.41*** 0.42* 0.74** 0.80 225.31*** Note. N = 410. Entries are unstandardized coefficient estimates from Equation 3, the coefficients of which are reported by utilizing Hayes’s PROCESS macro Model 59. PS = pay satisfaction; MS = managerial support; AC = affective commitment; CC = continuance commitment. *p < .05. **p < .01. ***p < .001. Table 6. Analysis of Simple Effects. Affective commitment Continuance commitment Stage Effect Stage Effect Managerial support First Second Direct Indirect Total First Second Direct Indirect Total .28** .13* 19*** 16** 35** 41*** .24* 32*** 14** 46** Note. First-stage coefficients refer to the impact of MS on PS to AC and CC path, and second-stage coefficients refer to the impact of AC and CC to ETP path. Direct effect coefficients refer to the direct impact of MS on PS to ETP, indirect effect coefficients refer to the impact of MS on PS to ETP through AC and CC, and total effects refer to the combined direct and indirect effect. MS = managerial support; PS = pay satisfaction; AC = affective commitment; CC = continuance commitment; ETP = employee task performance. *p < .05. **p < .01. ***p < .001. Hypothesis 1a. Alike AC (as shown in Tables 4 and 5), PS has a significant and positive relation with CC (β PS = 0.31, p < .001) and CC was related to ETP (β = 0.41, p < .05). 2CC In addition to that, a similar bootstrap approach was utilized reporting the significant and indirect association of PS with ETP through CC (0.046, 95% CI = [0.059, 0.033]). Thus, it provides support to Hypothesis 1b. Moreover, Table 5 reports that PS has a positive and direct relationship with ETP (cPS = 1.22, p < .001), thus confirming Hypothesis 2. As per the results of Table 4, to estimate AC, PS inter- acted with MS (β PSMS = 0.17, p < .05); moreover, as per Figure 2. Indirect effect of PS on ETP through AC for high and the results of Table 5, AC also interacted with MS to predict low levels of MS. ETP (β ACMS = 0.42, p < .01). Note. PS = pay satisfaction; ETP = employee task performance; AC = Results presented in Table 6 further analyze these relation- affective commitment; MS = managerial support. ships by showing the first and second stage of moderation and direct and indirect relationships among variables. The first of Table 5, CC also interacts with MS to predict ETP stage of indirect effect (i.e., path from PS to AC) and the sec- (β CCMS = 0.74, p < .01). Results presented in Table 6 ond stage of indirect effect (i.e., path from AC to ETP) were further analyze these relationships by showing the first and both significant and positive, thus supporting Hypothesis 3a. second stage of moderation and direct and indirect relation- The moderated indirect impact is represented in Figure 2. ships among variables. The first stage of indirect effect (i.e., As the PS increases, ETP also increases when MS is available. path from PS to CC) and the second stage of indirect effect As per the results of Table 4, to estimate CC, PS interacted (i.e., path from CC to ETP) were both significant and with MS (β PSMS = 0.24, p < .01); according to the results 3 Khalid 9 Figure 3. Indirect effect of PS on ETP through CC for high and Figure 4. Direct effect of PS on ETP for high and low levels of low levels of MS. MS. Note. PS = pay satisfaction; ETP = employee task performance; CC = Note. PS = pay satisfaction; ETP = employee task performance; MS = continuance commitment; MS = managerial support. managerial support. positive, thus supporting Hypothesis 3b; thus, the moderated PS as described by Miao et al. (2014) is an employee’s indirect impact is presented in Figure 3. As the PS increases, overall positive and negative feelings toward their pay, which ETP also increases when MS is available. can affect their emotional and cognitive association toward Results of Table 5 revealed that to estimate ETP, the PS the organization. On one hand, AC represents employees’ interacted with MS (β PSMS = 1.09, p < .01). Results of emotional association toward the organization (H. K. Kim, Table 6 show that the direct effect of PS on ETP was signifi- 2014); on the other hand, CC represents employees’ percep- cantly positive with the presence of high MS (direct = 0.19, tion of cost of leaving the organization and it is calculative p < .01). and cognitive in nature (Solinger et al., 2008). The results of This moderating effect of MS is shown in Figure 4, which the study also highlight that PS not only enhances employee represents that ETP increases more as PS increases when MS performance through emotional association with the organi- is high than when it is low, thus supporting Hypothesis 4. zation but employee performance is more affected by PS association with CC than AC. Results of the study also affirm principles of social exchange theory and expectancy theory Discussion by portraying the relationships between PS, AC, CC, and The findings of this study explain the important function of ETP. In this era of economic downturn, organizations need to AC, CC, and MS between PS and ETP relationship. enhance their performance levels by working on employees’ Particularly, AC and CC both mediate a positive and signifi- task-related outcomes, so they have to work on enhancing cant relationship between PS and ETP. The indirect relation- both emotional and cognitive associations of employees for ship of PS to ETP through AC was strong in employees the organizations. having high MS, as AC has strong association with ETP in The study also provides findings related to MS modera- faculty members with high MS. However, the indirect effect tion on the relationships of PS, AC, CC, and ETP. High MS of PS on ETP through CC was stronger among employees is related to the association of AC and ETP, which induces having higher MS, as PS was more strongly related to CC an indirect association of PS and ETP through AC being among them. In the last residual of PS, direct relation to ETP stronger among employees having high MS. Moreover, high was also strong in employees having higher MS. These mul- MS also strengthens the PS and CC relationship, which indi- tifaceted relationships have important implications for aca- rectly also strengthens PS and ETP relationship. Apparently, demicians and practitioners. Blau’s (1964) social exchange theory is apparently con- firmed also in the Saudi context: If employees have higher Theoretical Implications levels of MS, that will increase their positive association The current study showed development in prior research stud- with the organization, which will induce more CC within the ies by exhibiting important mediation of CC and AC between employees, and to maintain their relation with the organiza- the relationship of PS and ETP, whereas the research study tion, their ETP will be improved. Moreover, higher PS level conducted by Panaccio et al. (2014) had found the mediation in employees may influence employees having higher MS to of both forms of commitment between PS and employee vol- be more conscious about the cost of leaving the job and untary turnover. This study also explains that both forms of hence try to improve their work performance (Richards & commitment independently mediate the relationship of PS and Schat, 2011). For the future research studies in this field, it ETP. The findings presented in this study also highlight the would be more valuable to explore the stronger association implications of reinforcement and equity theory as it provides of PS and CC by influencing the emotional and obligatory a unique procedure through which PS can influence ETP. association. 10 SAGE Open Practical Implications Limitations This study provides practical implications for the organiza- Results of this research study are subject to limitations in its tions and suggests that working on enhancing PS can be a methodology. The first limitation is regarding the data col- valuable organizational strategy for improving employees’ lection of variables through self-reporting questionnaire, and commitment levels and hence their ETP. PS can be achieved the data were collected in two phases, because of which the through implementing procedural justice and procedural response rate was only 34% for the first phase, and in the transparency in employees’ pay-related decisions (Muse second phase because some of the respondents left their et al., 2008). Ensuring pay-related internal equity (i.e., organizations, the response rate was around 65%. However, equity within the organization) and external equity (i.e., the findings of this study were strengthened as we followed equity with the competing organization and same profes- Podsakoff et al.’s (2012) suggestion by making respondents’ sion) also enhances CC of the employees (Zein el din & identity anonymous and by making questionnaires short and Mabrouk, 2013). In recent research studies, the perceived simple for the respondents. Harman’s one-factor test was sacrifice subdimension of CC has shown a significant also conducted to statistically test for common method bias, impact on ETP than other employee outcomes (e.g., contex- and it is believed that the common method bias is not signifi- tual performance and retention; Lapointe et al., 2011; cant. Second, our sample consists of faculty members from Panaccio et al., 2014). To enhance the PS of the employee, HEIs of Saudi Arabia and may not be generalized to popula- organizations also need to offer rewards to employee which tion working in other sectors. So, it could be noteworthy to not only organizations want but also that employees need. examine whether findings of this study differentiate with the The attractiveness of rewards will affect their commitment change in organizational or occupational characteristics. levels but also improve employee performance (Caza et al., Finally, in this study, the impact of PS on ETP was examined, 2015). whereas the relation between PS and employees’ contextual Saudi Arabia is among one of those countries which pro- performance still has to be developed. vide tax-free pay to their faculty members. So, they are pay- ing better than universities in other countries. So faculty Future Directions and Recommendations members do not leave their jobs for better opportunities in other countries, but within the same HEIs and HEIs of even The study utilizes information on faculty members’ pay in the same city they have different pay scales. This differential ranges, and their pay information would be of more inter- exists on the basis of nationality, country of last degree, and est in comparison with the pay received by peers or supe- experience, resulting in high level of inequity among faculty riors. From this type of information, future researchers members (Patton, 2014). To enhance PS, HEIs have to work should explore the perception of pay transparency, com- harder in reducing this inequity in pay, which will help them munication, and fairness-related issues. The PS and ETP not only in enhancing ETP, AC, and CC but also in retaining relationship should be examined in the light of economic high-quality faculty members. Moreover, it will help Saudi conditions to better understand this relationship in the Arabia to increase their human development index (Fallatah changing Saudi economic conditions. Different measure- & Syed, 2018). ment scales should be used to analyze the accuracy of The moderating effect of MS provides managers under- results in the higher education and different sectors. standing of the means by which PS influences ETP. Researchers should also utilize mixed-methods and cross- Implementing PS could be more successful in employees cultural approaches for data collection to have a much having high MS, due to the indirect association of PS and broader perspective. ETP through CC and AC. Managers should give individual consideration to their faculty members; in turn, there is Conclusion more chance of faculty members perceiving the warmth and consideration of their managers. Such MS can raise the This study provides an extension into the literature regarding faculty member’s awareness about the importance of MS PS by emphasizing the key mediation of CC and AC on the toward other stakeholders (i.e., students and subordinates) relationship of PS to ETP. This research study also explores (Mushtaq et al., 2017). Moreover, those employees who the role of MS as a moderator of PS to ETP relationship via receive MS from their managers usually feel obligated to CC and AC, in addition to its direct association with ETP. return their managers’ support by helping them reach their The study signifies that in higher education sector of Saudi own goals and objectives (Yoon, 2017). Organizations Arabia, MS positively moderates both first and second stages should develop mechanisms and procedures that can of indirect effects for both mediating variables (AC and CC). enhance employees’ perceptions of MS to enhance CC and Furthermore, the presence of MS strengthens PS–ETP rela- AC, as they are established predictors of enhancing ETP tionship. So, the findings of this study explain that the pro- (Nazir et al., 2016). cesses of linking PS with ETP are multifaceted and more Khalid 11 complicated than suggested by previous studies. 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The Impact of Managerial Support on the Association Between Pay Satisfaction, Continuance and Affective Commitment, and Employee Task Performance:

SAGE Open , Volume 10 (1): 1 – Mar 31, 2020

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Abstract

This research study explores the moderating effect of managerial support and mediating effect of continuance and affective commitment on the association of employees’ pay satisfaction and their task performance. Data were collected from the university’s faculty members of Kingdom of Saudi Arabia (N = 610) at two phases in time through random sampling technique. For data analysis, descriptive statistics, Pearson’s correlation analysis, and Preacher and Hayes’s PROCESS macro were utilized. The result showed that commitment positively mediates the relationship between pay satisfaction and manager-rated task performance, whereas pay satisfaction has an indirect positive relationship with task performance through continuance and affective commitment and was stronger in faculty having high managerial support. The continuance commitment mediation for the relationship of pay satisfaction and task performance is stronger compared with the mediation of affective commitment for the same relationship. This study provides a significant contribution to the literature of pay satisfaction by proposing and analyzing the associations between pay satisfaction and task performance as mediated by forms of organizational commitment and first- and second-order moderation of managerial support. The current study adds to the limited research on the effect of managerial support and commitment on the association of pay satisfaction and their task performance in higher education sector of Saudi Arabia. Keywords Keywords, pay satisfaction, managerial support, affective commitment, continuance commitment, manager-rated employee task performance and is an important factor that ensures their effective perfor- Introduction mance (Gieter & Hofmans, 2015). The construct of PS is Pay is a major component of employee compensation in all developed from different compensation aspects, including organizations, and employees’ pay satisfaction (PS) is a pay level, increment level, administration and structure of major element in achieving organizational goals and objec- pay, and benefits (Milkovich et al., 2014; Panaccio et al., tives (Milkovich et al., 2014; Tran, 2017). After exploring 2014), whereas the construct of employees’ job performance few of groundbreaking motivational theories such as expec- includes those activities that are essential and formal compo- tancy theory (Blau, 1964), equity theory (Adam, 1963), and nents of an employee’s job (Smith et al., 2018). reinforcement theory (Skinner, 1968), it was proven that Research studies conducted by different scholars in the employees’ satisfaction with compensation triggers employ- last decade provide evidence of indirect but positive relation- ees’ attitudes that organizations usually desire (i.e., commit- ship between PS and employee task performance (ETP) ment and performance) (Adam, 1963; Blau, 1964; Gieter & Hofmans, 2015; Vroom, 1964). Organizations have to ensure that employees are satisfied King Abdulaziz University, Jeddah, Saudi Arabia with their pay because pay dissatisfaction can negatively Corresponding Author: influence employees’ retention, commitment, trust, and, Komal Khalid, Assistant Professor (Human Resource Management), most importantly, their performance levels (Jung & Yoon, Faculty of Economics and Administration, King Abdulaziz University, 2015; Miao et al., 2014). Employees’ PS signifies their posi- Jeddah 21441, Saudi Arabia. Email: kmuddassar@kau.edu.sa tive and negative feelings for their pay (Panaccio et al., 2014) Creative Commons CC BY: This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage). 2 SAGE Open (Chiang & Birtch, 2012; Gieter & Hofmans, 2015; Kappagoda their knowledge economies with the help of high-skilled et al., 2014; Ren et al., 2017; Sieweke et al., 2017), but how experts and have to reduce their dependence on fuel PS influences ETP is still vague. All these studies show that resources. Saudi Arabia currently is a leading educational employees’ perception of their PS can affect their work- hub because of its high per capita income and high-level related attitudes, including job satisfaction and motivation spending on its educational setup. This high-level spending and in turn employee in role and extra role performance. So, in educational sector specifies the commitment of Saudi the first contribution of this study is to explore the mediating Arabia for national development (Nikolaidis et al., 2018). influence of an essential work-related attitude organizational Moreover, the first university in Saudi Arabia (i.e., King commitment (affective commitment [AC] and continuance Saud University) was established in 1957. There are now 32 commitment [CC]) on PS and task performance relationship. public sector and 10 private sector universities with more than AC signifies an employee’s emotional affiliation with the 140 campuses. Some 20 colleges and vocational and technical organization, whereas CC represents an employee’s percep- training corporation are also part of the higher education sec- tion of cost related to leaving the organization (H. K. Kim, tor of Saudi Arabia (Subbarayalu & Al Kuwaiti, 2019). The 2014). As employees’ satisfaction with pay can improve higher education sector was selected for research because it employees’ emotional affiliation with the organization, it can reflects the importance that these higher education institutes also influence employees’ perception of cost for leaving the (HEIs) have for the future development of the country (Fallatah organization. If compensation or pay is higher, then the cost & Syed, 2018; Subbarayalu & Al Kuwaiti, 2019). As Kingdom of leaving the organization will also be higher (H. K. Kim, of Saudi Arabia (KSA) represents an interesting underre- 2014). As both forms of commitment are related to ETP (H. searched location having a unique religious and cultural K. Kim, 2014; Yousaf et al., 2015), it seems rational that PS framework and has a key strategic role in the world economy, and ETP relationship is mediated by CC and AC. it could be a valuable addition in our understanding. This This study also investigates the moderating effect of man- study also aims to explore the significance, direction, and agerial support (MS), especially in relation to the influence strengths of the relationships among PS, two forms of commit- of PS on CC and AC on ETP. MS is a latest addition in per- ment (AC and CC), MS, and ETP. ceived organizational support (Travaglione et al., 2017). It identifies that managers have to support their subordinates in Research Objectives facing challenges by developing secure psychological envi- ronment and trust culture within the organization, which can This study includes the following core research objectives: result in enhancing employee commitment and performance levels (Boxall & Macky, 2009; Travaglione et al., 2017). 1. To explore and understand the mediation of CC and This research study has explored the influence of MS in AC on PS–ETP association; three directions. It examines the influence of MS on PS– 2. To explore and understand a moderated condition of commitment (AC and CC)–ETP relationships. First, MS as a MS that associates with direct relationship of PS and moderator has a positive influence on employees’ indirect ETP; relationships of PS–AC–CC; it is expected that it will 3. To explore and understand a moderated condition of strengthen the relations. Second, as a moderator of indirect MS that associates with indirect association of PS associations between CC–ETP and AC–ETP, MS is also and ETP through CC and AC. expected to strengthen this relationship. Third, as probably PS would have certain direct influence on task performance, Literature Review this direct relationship can be moderated by MS. Higher PS would result in expected enhanced employee performance Theoretical Background and it is expected that this relationship would be strength- ened with high levels of MS. Managers have to deal and con- Reinforcement theory proposed that individuals shape their front many of employees’ work- and non-work-related issues behavior through a process by controlling the consequences such as interpersonal conflict, workplace bullying, ambigu- of the behavior (Skinner, 1968). It suggests that employees’ ous tasks, financial stresses, and concern for family mem- PS is related to their ETP, and organizations use it as a sup- bers. So, higher levels of MS can help employees to become porting mechanism to achieve their individual and organiza- more satisfied with available pay and improve work perfor- tional objectives (Khan & Baloch, 2017). Expectancy theory mance (Travaglione et al., 2017). (Vroom,1964) proposed that individuals will involve in activities and behaviors that give them valuable outcomes (i.e., satisfaction, pay), to only that level they think they are Significance of the Study able to give (i.e., performance). Equity theory (Adam, 1963) Over the last two decades, Middle Eastern countries, includ- posits that employees perceive their pay fair and they also ing Saudi Arabia, have an increasing focus on their higher feel satisfied depending on their pay compared with the ref- education sector. They have realized that they need to build erent others. Also, employees adjust their work outputs (i.e., Khalid 3 performance) compared with their pay. Employees with high value of employment with the organization (i.e., cost of leav- PS, AC, and CC levels put more efforts in attaining high per- ing the job), so it will more likely be influenced by PS and formance levels (Buttner & Lowe, 2017; Shaw, 2014; Wang hence would affect employee efforts to perform better and et al., 2015). The theoretical explanation for the PS–ETP sustain the job (Cherian et al., 2018). Hence, higher PS level relationship, AC, CC–ETP relationship, and MS–ETP rela- would increase the value of associated outcomes and would tionship can be referred to in Blau’s (1964) social exchange enhance employee efforts to sustain the job (increase in per- theory which specifies that when employee and employer formance level). The findings of the study conducted by both accept and follow the exchange rules, they will have a Malik et al. (2016) demonstrated that satisfaction with pay more positive, strong, and fruitful relationship. Organizations had a significant positive influence on the AC and CC of fac- would provide fair and equivalent pay and provide MS to the ulty members, and it consequently influences employee employees, and in exchange employees would feel gratified performance. to respond with a higher level of attitudinal work outcome According to Nakra (2014), normative commitment such as commitment and task performance (Krishnan et al., represents an employee’s moral obligation toward organi- 2018). According to these theories, organizations should zation and PS involves cognitive judgment of fair compen- administer pay in a very careful manner, that is, higher pay sation of an employee’s job, so normative commitment depends on higher level of future task performance, to was not included in the study model. Moreover, according expand the incentive effect. to the studies of Fu and Deshpande (2014) and Tolentino (2013), normative commitment being felt obligation has a strong correlation with AC and has insignificant impact on PS, Commitment, and ETP job performance outside the influence of AC. The study Many studies have worked on the relationship between conducted by Lapointe et al. (2011) describes that PS is employee satisfaction and their pay and task performance associated with normative commitment but has no impact levels (Gieter & Hofmans, 2015; Muse et al., 2008), but still on its outcome. On these bases, normative commitment this relation is unclear because employee performance is a was not included in this study. Both AC (affective) and CC multidimensional factor and can be measured in different (calculative) have distinct ways in nature that influence PS ways (e.g., self-rated, supervisor rated, or objective perfor- and ETP relationship. Thus, the following hypotheses were mance). PS is defined as the overall amount of positive feel- proposed: ings of an employee toward his or her pay (Danish et al., 2015). Employees’ job performance consists of two subcom- Hypotheses 1a: AC mediates a positive relationship ponents (i.e., task performance and contextual performance; between PS and ETP. Kluemper et al., 2013). Task performance includes all those Hypotheses 1b: CC mediates a positive relationship activities that are the important and formal components of an between PS and ETP. employee’s job, whereas contextual performance includes activities that are informal aspects of an employee’s job (i.e., PS and ETP coordination, cooperation, citizenship behavior) (Kluemper et al., 2013; Smith et al., 2018). In organizational context, PS is a subdimension of general job satisfaction (Dawson, ETP is more critical for organizational survival than contex- 2017; Parker & Brummel, 2016), that is, an emotional out- tual performance (Smith et al., 2018), so for understanding come of an employee’s working environment that can influ- the relationships among PS, AC, CC, and employee perfor- ence his work outcomes (task performance) independently mance, more attention is given to ETP. There are very limited (Arya et al., 2019). studies available that examine PS relationship with employee Employees’ low performance could be an outcome of low performance, along with the mediation of AC and CC PS (Chaudhry et al., 2011). According to Lawler’s (1971) (Abdullah & Ramay, 2012; Mohammed & Eleswed, 2013). model, the relationship between PS and ETP is very impor- The reason for anticipating the influence of AC on PS– tant. Employees’ actual performance is related to internal ETP relationship is based on Blau’s social exchange theory and external pay equity, which in turn is related to PS (Blau, 1964). According to that, if employees are satisfied (Talukdar, 2012). In general, pay is one of the most important with their pay, it may give them a perception that the organi- aspects of a job, and to some extent it motivates an employee zation appreciates and recognizes their contributions. By to perform better, but studies conducted by Talukdar (2012) this, the organization satisfies employees’ socio-emotional and Mohamed et al. (2017) found a negative and small but needs (i.e., need for affiliation and recognition), which would significant association between PS and ETP. This provides result in the employees working for organizational welfare us an opportunity for further in-depth research. Thus, the fol- (higher work performance) in exchange (Schreurs et al., lowing hypothesis was proposed: 2013). The study also provides an argument regarding the influ- Hypotheses 2: PS is directly and significantly related to ence of PS on CC. CC is more associated with the financial ETP. 4 SAGE Open to boost their morale to not only retain their jobs but also The Moderating Role of MS enhance their performance (Malik et al., 2016). Employees MS refers to the readiness of managers to accommodate having CC only remain with the organization because they do employees’ schedules and tasks and provides assistance that not have any better alternative available or they need that job can help employees in managing their work and making it for financial or personal reasons (H. K. Kim, 2014). According better (T. Kim & Mullins, 2016). It can be a crucial organiza- to Dar and Sharma (2016), CC has a weak and negative rela- tional cultural factor that can influence employees’ organiza- tion with ETP. So, Celik and Findik (2012) suggest that mana- tion-related attitudes and behaviors (improve productivity, gerial and organizational support can reduce the feeling of retention, commitment) (Saridakis et al., 2018). MS has entrapment of an employee, which may be developed because gained the attention of researchers and is found to have an of the high cost of leaving the organization. influence on organizational and employee outcomes such as It is expected that PS influences both subdimensions of performance and retention (Wassem et al., 2019). He et al. CC (i.e., the perceived sacrifice related to leaving and the (2011) suggested that organizational commitment shows the perceived lack of alternatives). If an employee has PS, then it organizational leadership quality, so it could be rationalized will increase cost in case of exit (Vandenberghe & Tremblay, that MS would have a significant influence on developing 2008). According to fairness heuristic theory, PS also pro- organizational commitment. vides information regarding employees’ status within the To raise the AC level of employee, PS is more important organization, and higher PS means higher perceived value of than actual pay level of employees. If pay levels reach a cer- the employee within the organization, which enhances CC tain level, then factors like MS and organizational support based on perceived last of alternatives (Asrar-ul-Haq et al., become crucial (Olafsen et al., 2015). According to Adam’s 2017). (1965) equity theory and Blau’s (1964) social exchange the- The favorable or unfavorable treatment that an employee ory, if employees perceive that there is fairness in the organi- receives from his or her manager depicts the manager’s sup- zation (both procedural and distributive justice) in pay (i.e., portive or unsupportive behavior toward them (Shoss et al., PS), a range of positive behaviors will be pursued within the 2013). PS is strongly related to CC, and this relation becomes organization. Moreover, high MS produces a give-and-take stronger as an employee’s manager or supervisor is more relationship between the manager and the employee and it supportive (He et al., 2011). MS is enhanced by the positive will strengthen employee’s association with the organization treatment of the manager, which increases employee’s com- (Jose & Mampilly, 2015). mitment because MS increases the cost of leaving the job. While exploring the role of emotional commitment (i.e., affective) and employee performance, especially in Middle Hypotheses 3b: MS through CC moderates the first and Eastern countries, it was concluded that more committed second stage of the indirect (positive) relationship of PS employees tend to have higher performance levels (Zeffane and ETP. & Bani Melhem, 2017). Moreover, those employees who perceive existence of high MS within their organizations For improving ETP, employees should be satisfied with have higher AC and employee performance levels (Huey their earnings (pay/compensation) (Jung & Yoon, 2015). But Yiing & Zaman Bin Ahmad, 2009). Studies show that for those employees who are already satisfied with their pay, employees would show more AC and hence have higher per- financial compensation is not the best motivator for enhanc- formance when their managers are supportive, whereas in ing performance. Managers should consider other aspects the absence of MS, employees would feel frustrated and such as creating a conducive working environment or pro- angry toward the organization (i.e., absence or reduced level viding MS (Schreurs et al., 2013). of AC), thus resulting in lower levels of employee perfor- In a specific pay grade, a slight variation exists in pay; how- mance (Ma Prieto & Pilar Perez-Santana, 2014). Thus, the ever, a variation in ETP exists. So, employees’ PS might not following hypothesis was proposed: relate to ETP (Edwards et al., 2008). PS in the absence of MS has a weak relation to employee outcomes (i.e., performance, Hypotheses 3a: MS through AC moderates the first and turnover, commitment) (Bhatnagar, 2014; Raza et al., 2017). second stage of the indirect (positive) relationship of PS and ETP. Hypotheses 4: MS positively moderates the direct rela- tionship of PS and ETP. MS could also influence the association of PS and CC, and afterward the association of CC and ETP. In general, it is Method argued in this study that these relationships became stronger in employees as MS increases. Sample and Procedure CC is an exchange framework where benefits and rewards are given in exchange for loyalty. Hence, it is essential for the The current study was conducted among teaching staff of organizations to identify those factors that can help employees HEIs (i.e., 22 universities and eight colleges) located in Khalid 5 KSA (i.e., Jeddah, Makkah, Riyadh, Madinah, Yanbu, follows: SAR 6,000 to 10,000 (20.20%), SAR 11,000 to 15,000 Dammam, and Jazan cities). According to the statistics (36.6%), SAR 16,000 to 20,000 (32%), SAR 21,000 to 25,000 provided by Planning and Development Agency of (9.5%), and more than SAR 25,000 (1.7%). Ministry of Education in Saudi Arabia, the total number of To verify that subject attrition has led to nonrandom sam- faculty members in HEIs is approximately 70,000 in the pling, the probability of remaining in the sample in Phase 2 selected cities (Planning and Development Agency, 2018). (N = 610) among Phase 1 respondents (N = 1,040) could be After presenting survey forms to the university deans and predicted by demographics and independent variables. heads of colleges and taking their approvals, the survey Results of logistic regression analysis showing nonsignifi- was circulated among faculty members (N = 3,100). Data cant values for demographic (age, gender, education, and were collected through self-administered survey forms and income level) and independent variables (PS, AC, CC, and by using online surveys in two phases having a time gap of MS) predict that respondent attrition was random. 12 months from research assistant, lecturer, assistant pro- fessor, associate professor, and professor level of faculty Measures members. A random sampling technique was used for data collection in the first phase because it provides each mem- The original questionnaire was developed in English, and ber with every possible sample of the same size. Moreover, then by using the backward translation method it was trans- simple random sample technique and a large sample size lated into Arabic. The questionnaire includes gender, age, have to be developed to reduce the sampling error. On the education, and income level as demographic variables. In basis of this technique, almost 10 to 15 questionnaires Phase 1 of data collection, PS was measured using the 11-item were given to each department head depending on the size PS questionnaire (PSQ) of Heneman and Schwab (1985). of their department. For self-administered survey forms, Four aspects of PS were measured in the study (i.e., pay level, they were collected after 2 days although it took only 7–9 benefits, pay raise, and pay administration), but because of min to complete them. For online survey forms, two high intercorrelation among these four aspects of PS, it was reminders were sent to nonrespondents after a gap of 1 considered as one variable. The same approach was adopted week. Respondents were provided assurance regarding the by Panaccio et al. (2014). A sample item is “I am satisfied confidentiality of their responses and that it would be used with the value of my benefits.” MS was measured using the for research purposes only. Phase 1 of the data collection 12-item scale of Kang et al. (2015). A sample item is “My was conducted in September 2017 and Phase 2 of the data supervisor cares about whether or not I achieve my career collection was conducted in September 2018. This time goals.” Manager-rated ETP was measured by the 5-item scale gap was selected because faculty members have 2-month of Gong et al. (2009). A sample item is “He or she performs vacations (from June till August) and they get their annual tasks that was expected of him or her.” AC was measured by increment in September. At Phase 1, 1,040 faculty mem- the 6-item scale of Lapointe et al. (2011). A sample item is “I bers provided us usable responses (response rate = really feel as if this organization’s problems are my own.” CC 33.55%). In this phase, information regarding PS, AC, CC, was measured by the 6-item scale of Hekman et al. (2009). A MS, and demographics was collected. For the second sample item is “I feel that I have too few options to consider phase of data collection, questionnaires were distributed to leaving this organization.” Kaiser–Meyer–Olkin (KMO) all the supervisors of respondents of first phase of data col- measure of sampling adequacy for MS was .85 (Sig. = .00), lection. The data regarding ETP were collected in Phase 2. for ETP was .89 (Sig. = .00), for AC was .87 (Sig = .00), and According to Saudi Ministry of Labor, higher education for CC was .93 (Sig. = .00), which show that the sample is sector constitutes more than 60% expatriates. So, for data enough to achieve these test results and do not have high analysis at Phase 2 of data collection, 657 respondents pro- inter-item correlations. The multicollinearity statistics (vari- vided their responses, and after using Cook’s distances and ance inflation factor [VIF] and tolerance) show (Table 2) that leverage value methods of outlier detection, 47 responses there is no multicollinearity (VIF values are less than 10 and were removed and only 610 responses were used for fur- tolerance values are less than 1). Reliability statistics (i.e., ther data analysis. As suggested by Baruch (1999), a Cronbach’s α) for all the variables are above .80 and validity response rate of 35% is appropriate if the study involves statistics (i.e., average variance extracted) are above 50% (see data collection from top management and organizational Table 2). These statistics show that the construct’s reliability representatives. and convergent validity are according to the recommended The final sample includes 75.1% male respondents and criteria (Chaoyun & Tsorng-Lin, 2014). 24.9% female respondents; 20.24% of respondents were between the age group of 21 and 30 years, 52.68% were between Data Analysis the age group of 31 and 40 years, 18.05% were between the age group of 41 and 50 years, and 9.02% of respondents were more Confirmatory Factor Analysis than 50 years old. In total, 365 respondents (59.8%) had a PhD, whereas 245 respondents (40.2%) had a master’s degree. To examine the dimensionality of our research variables Respondents’ monthly income levels were distributed as (MS, PS, AC, CC, and ETP), confirmatory factor analysis 6 SAGE Open Table 1. Confirmatory Factor Analysis of Measurement Models. 2 2 Model χ df Δχ Δdf NNFI CFI RMSEA Hypothesized five-factor model 242.73* 93 — — .92 .96 .066 Four-factor models Combining MS and AC 862.74* 95 486.91* 5 .84 .86 .110 Combining MS and CC 881.64* 95 513.83* 5 .86 .89 .140 Combining PS and AC 1,138.34* 95 837.36* 5 .90 .91 .120 Combining PS and CC 1,042.21* 95 538.94* 5 .89 .92 .210 One-factor model 2,219.43* 101 2,076.55* 10 .81 .83 .160 Note. N = 410. NNFI = nonnormed fit index; CFI = comparative fit index; RMSEA = root mean square error of approximation; MS = managerial support; AC = affective commitment; CC = continuance commitment; PS = pay satisfaction. *p < .001. was conducted by using LISREL (linear structural relations). As per the results of Table 3, model variables contribute To simplify our model, items were combined resulting in significant variance in ETP, χ (10) = 70.38, p < .001, −2 three indicators per construct (MS, ETP, CC, and AC), and log-likelihood (LL) = 346.32, Nagelkerke’s R = .33. In the for PS construct one indicator was created for each pay second step, PS was positively associated with ETP (β = dimension (i.e., four indicators for PS construct, a total of 16 0.83, p < .001). In the third step, the interactional term of indicators). The theoretical model was then analyzed and MS and PS was also associated with ETP (β = 0.98, p < compared for more practical solutions by utilizing the chi- .01). The significant values of coefficient variables reveal square difference test (Bentler & Bonett, 1980). that PS, CC, AC, and MS are positively associated with Table 1 represents the four-factor hypothesized model ETP. including PS, MS, and dimensions of AC and CC, yielding Associations between odds ratios and logistic regression good fit to the data: χ (93) = 242.73, p < .001, comparative coefficients of the variables are also presented in Table 3. fit index (CFI) = .96, nonnormed fit index (NNFI) = .92, These odd ratios reveal the factor by which the probability root mean square error of approximation (RMSEA) = .066. increase in ETP is multiplied for each unit increase in the PS. For parsimonious representation of data, results of Table 1 Ratios which are significant and below 1 are related to the supported the model. These findings prove that the variables likelihood of increase in ETP. In the last step, AC (β = 0.63, of the study are distinct. p < .001) and CC (β = 0.51, p < .01) were significant pre- dictors of increase in ETP, whereas the interactional term MS × PS was also significant (β = 0.99, p < .01) and the coef- Descriptive and Correlation Statistics ficient of PS became nonsignificant (β = 0.35, NS). These Table 2 represents the descriptive, multicollinearity, and results imply that PS, MS, AC, and CC are engaged in medi- correlation statistics of the variables. The mean value of the ation and moderation relationships. variables ranges from 4.43 to 5.15 and the standard devia- tion ranges from 0.60 to 0.97. To measure the relationships Hayes’s Moderated Mediation Analysis among variables, Pearson’s correlation analysis was con- ducted. As suggested by Singh and Sharma (2016), the data For hypotheses testing, a combination of Hayes’s (2013) were examined for normality (i.e., skewness and kurtosis), moderation and mediation analytical framework was uti- outliers (Cook and leverage), and missing values. PS is lized. The theoretical framework shown in Figure 1 positively correlated with ETP (r = .77), MS (r = .53), AC hypothesizes that MS will moderate the (a) PS to ETP path, (r = .58), and CC (r = .40). These results can be better (b) PS to AC and CC path (first stage of indirect effect), described with further tests and are then discussed and (c) AC and CC to ETP path (second stage of indirect accordingly. effect). This model can be evaluated through Hayes’s PROCESS macro (Model 59). For evaluating this moder- ated mediation model, it requires estimation of the follow- Logistic Regression Analysis ing equations: Moderated logistic regression analysis was conducted by using ETP as the dependent variable. In the first step, age, AC =α + a PS + aMS + a PSMS + e AC01 12 3MS (1) gender, and pay levels were entered as control variables. In the second step, centered MS and PS were entered. In the third step, product term of MS and PS was entered, and in the CC =+ α a PS + aMS + a PSMS + e AC01 12 3MS last step, CC and AC were entered. (2) Khalid 7 Table 2. Descriptive, Reliability, Average Variance Explained, Multicollinearity, and Correlation Statistics. Descriptive Multicollinearity Correlation analysis Variables M SD Skew Kurt Tolerance VIF 1 2 3 4 5 6 7 8 9 1. Gender 1.25 0.43 — — — — — 2. Age 1.43 0.57 — — — — –.10 — 3. Education 1.60 0.72 — — — — –.06 .24** — 4. Inc. Level 2.56 0.73 — — — — .09 .12* .17** — 5. PS 4.72 0.72 0.97 1.92 .43 2.58 .04 –.02 –.01 .24** — 6. MS 4.86 0.84 1.29 1.74 .31 3.94 .04 –.07 –.10 .14 .53** — 7. AC 4.68 0.68 1.77 1.46 .28 2.71 .04 –.04 .18* .17* .58** .47** — 8. CC 4.43 0.60 0.84 1.62 .36 4.52 –.03 –.12 .23** .12* .40** .36** .37** — 9. ETP 5.15 0.97 0.93 1.79 .49 3.27 .02 –.07 .28* .26* .77** .69** .75** .57** — Note. For age: 1 = 20–30 years, 2 = 31–40 years, 3 = 41–50 years, 4 = 50+ years; for gender: 1 = male, 2 = female; for education: 1 = masters, 2 = PhD. PS = pay satisfaction; MS = managerial support; AC = affective commitment; CC = continuance commitment; ETP = employee task performance; VIF = variance inflation factor. *p < .05. **p < .01. Table 3. Moderated Logistic Regression Analysis for Employee Task Performance. Step Variable(s) entered B Exp(B) B Exp (B) B Exp(B) B Exp(B) 1 Age .14* .84 .27* .74 .38** .63 .44** .56 Gender .04 .93 .13 .99 .07 1.20 .06 .79 Pay Level .17 .83 .04 .91 .09 .97 .03 .81 2 PS .83** 1.16 .89** .54 .35 1.14 MS .37 .58 .46 .51 .42 .84 3 MS × PS .98* .42 .99* .48 4 AC .63*** .73 CC .51** .62 ΔR .04*** .09*** .06*** .14*** 2 2 Note: Exp(B) refers to the odds ratio. The ΔR row includes Nagelkerke’s ΔR values. Final model statistics: χ²(10) = 70.38, p < .001, −2LL = 346.32, constant = 0.421, Nagelkerke’s R = .33. PS = pay satisfaction; MS = managerial support; AC = affective commitment; CC = continuance commitment; LL = log-likelihood. *p < .05. **p < .01. ***p < .001. impact of MS on PS effect on CC. Finally, Equation 3 evalu- ates the moderating impact of MS on the relationships of PS, AC, and CC to ETP. Thus, it presents the total moderated mediation effect model containing direct, indirect, and total effects. By using Preacher and Hayes’s PROCESS macro Model 59, coefficients of Equations 1 to 3 were estimated with age, gender, and pay levels of respondents as control variables. Table 4 represents coefficients for Equations 1 and 2, whereas coefficients of Equation 3 are presented in Table 5. Coefficients of Equations 1 and 2 are reported in Table 4, Figure 1. Theoretical framework. whereas coefficients of Equation 3 are presented in Table 5. As shown in Table 4, PS has a significant and positive asso- ciation with AC (β PS = 0.58, p < .001), whereas as per ′′ ′ ETP =+ α c PS + cMS + c PSMS ETP1 23 Table 5, AC was associated with ETP (β = 0.33, (3) 1AC + bAC + b CC + bACMS + + b CCMS + e 12 3 4ETP p < .001). In addition to that, by utilizing the bootstrap approach, a significant and indirect relationship of PS to ETP Equation 1 evaluates the moderation impact of MS on PS through AC was found (0.041, 95% confidence interval effect on AC, whereas Equation 2 evaluates the moderation [CI] = [0.046, 0.016]). Thus, it provides support to 8 SAGE Open Table 4. Results of Equations 1 and 2. Mediators β PS β MS β PSMS β PS β MS β PSMS R 1 2 3 1 2 3 AC .58** .33* –.03 .36 CC .31** .43** .24** .47 Note. N = 410. Entries are unstandardized coefficient estimates from Equations 1 and 2, the coefficients of which are reported by utilizing the Hayes’s PROCESS macro Model 59. PS = pay satisfaction; MS = managerial support; AC = affective commitment; CC = continuance commitment. *p < .05. **p < .01. ***p < .001. Table 5. Results of Equation 3. ′ ′ ′ cPS cMS c PSMS β β β ACMS β CCMS R F 2 3 1AC 2CC 3 4 1.22*** 0.88*** 1.09** 0.33*** 0.41*** 0.42* 0.74** 0.80 225.31*** Note. N = 410. Entries are unstandardized coefficient estimates from Equation 3, the coefficients of which are reported by utilizing Hayes’s PROCESS macro Model 59. PS = pay satisfaction; MS = managerial support; AC = affective commitment; CC = continuance commitment. *p < .05. **p < .01. ***p < .001. Table 6. Analysis of Simple Effects. Affective commitment Continuance commitment Stage Effect Stage Effect Managerial support First Second Direct Indirect Total First Second Direct Indirect Total .28** .13* 19*** 16** 35** 41*** .24* 32*** 14** 46** Note. First-stage coefficients refer to the impact of MS on PS to AC and CC path, and second-stage coefficients refer to the impact of AC and CC to ETP path. Direct effect coefficients refer to the direct impact of MS on PS to ETP, indirect effect coefficients refer to the impact of MS on PS to ETP through AC and CC, and total effects refer to the combined direct and indirect effect. MS = managerial support; PS = pay satisfaction; AC = affective commitment; CC = continuance commitment; ETP = employee task performance. *p < .05. **p < .01. ***p < .001. Hypothesis 1a. Alike AC (as shown in Tables 4 and 5), PS has a significant and positive relation with CC (β PS = 0.31, p < .001) and CC was related to ETP (β = 0.41, p < .05). 2CC In addition to that, a similar bootstrap approach was utilized reporting the significant and indirect association of PS with ETP through CC (0.046, 95% CI = [0.059, 0.033]). Thus, it provides support to Hypothesis 1b. Moreover, Table 5 reports that PS has a positive and direct relationship with ETP (cPS = 1.22, p < .001), thus confirming Hypothesis 2. As per the results of Table 4, to estimate AC, PS inter- acted with MS (β PSMS = 0.17, p < .05); moreover, as per Figure 2. Indirect effect of PS on ETP through AC for high and the results of Table 5, AC also interacted with MS to predict low levels of MS. ETP (β ACMS = 0.42, p < .01). Note. PS = pay satisfaction; ETP = employee task performance; AC = Results presented in Table 6 further analyze these relation- affective commitment; MS = managerial support. ships by showing the first and second stage of moderation and direct and indirect relationships among variables. The first of Table 5, CC also interacts with MS to predict ETP stage of indirect effect (i.e., path from PS to AC) and the sec- (β CCMS = 0.74, p < .01). Results presented in Table 6 ond stage of indirect effect (i.e., path from AC to ETP) were further analyze these relationships by showing the first and both significant and positive, thus supporting Hypothesis 3a. second stage of moderation and direct and indirect relation- The moderated indirect impact is represented in Figure 2. ships among variables. The first stage of indirect effect (i.e., As the PS increases, ETP also increases when MS is available. path from PS to CC) and the second stage of indirect effect As per the results of Table 4, to estimate CC, PS interacted (i.e., path from CC to ETP) were both significant and with MS (β PSMS = 0.24, p < .01); according to the results 3 Khalid 9 Figure 3. Indirect effect of PS on ETP through CC for high and Figure 4. Direct effect of PS on ETP for high and low levels of low levels of MS. MS. Note. PS = pay satisfaction; ETP = employee task performance; CC = Note. PS = pay satisfaction; ETP = employee task performance; MS = continuance commitment; MS = managerial support. managerial support. positive, thus supporting Hypothesis 3b; thus, the moderated PS as described by Miao et al. (2014) is an employee’s indirect impact is presented in Figure 3. As the PS increases, overall positive and negative feelings toward their pay, which ETP also increases when MS is available. can affect their emotional and cognitive association toward Results of Table 5 revealed that to estimate ETP, the PS the organization. On one hand, AC represents employees’ interacted with MS (β PSMS = 1.09, p < .01). Results of emotional association toward the organization (H. K. Kim, Table 6 show that the direct effect of PS on ETP was signifi- 2014); on the other hand, CC represents employees’ percep- cantly positive with the presence of high MS (direct = 0.19, tion of cost of leaving the organization and it is calculative p < .01). and cognitive in nature (Solinger et al., 2008). The results of This moderating effect of MS is shown in Figure 4, which the study also highlight that PS not only enhances employee represents that ETP increases more as PS increases when MS performance through emotional association with the organi- is high than when it is low, thus supporting Hypothesis 4. zation but employee performance is more affected by PS association with CC than AC. Results of the study also affirm principles of social exchange theory and expectancy theory Discussion by portraying the relationships between PS, AC, CC, and The findings of this study explain the important function of ETP. In this era of economic downturn, organizations need to AC, CC, and MS between PS and ETP relationship. enhance their performance levels by working on employees’ Particularly, AC and CC both mediate a positive and signifi- task-related outcomes, so they have to work on enhancing cant relationship between PS and ETP. The indirect relation- both emotional and cognitive associations of employees for ship of PS to ETP through AC was strong in employees the organizations. having high MS, as AC has strong association with ETP in The study also provides findings related to MS modera- faculty members with high MS. However, the indirect effect tion on the relationships of PS, AC, CC, and ETP. High MS of PS on ETP through CC was stronger among employees is related to the association of AC and ETP, which induces having higher MS, as PS was more strongly related to CC an indirect association of PS and ETP through AC being among them. In the last residual of PS, direct relation to ETP stronger among employees having high MS. Moreover, high was also strong in employees having higher MS. These mul- MS also strengthens the PS and CC relationship, which indi- tifaceted relationships have important implications for aca- rectly also strengthens PS and ETP relationship. Apparently, demicians and practitioners. Blau’s (1964) social exchange theory is apparently con- firmed also in the Saudi context: If employees have higher Theoretical Implications levels of MS, that will increase their positive association The current study showed development in prior research stud- with the organization, which will induce more CC within the ies by exhibiting important mediation of CC and AC between employees, and to maintain their relation with the organiza- the relationship of PS and ETP, whereas the research study tion, their ETP will be improved. Moreover, higher PS level conducted by Panaccio et al. (2014) had found the mediation in employees may influence employees having higher MS to of both forms of commitment between PS and employee vol- be more conscious about the cost of leaving the job and untary turnover. This study also explains that both forms of hence try to improve their work performance (Richards & commitment independently mediate the relationship of PS and Schat, 2011). For the future research studies in this field, it ETP. The findings presented in this study also highlight the would be more valuable to explore the stronger association implications of reinforcement and equity theory as it provides of PS and CC by influencing the emotional and obligatory a unique procedure through which PS can influence ETP. association. 10 SAGE Open Practical Implications Limitations This study provides practical implications for the organiza- Results of this research study are subject to limitations in its tions and suggests that working on enhancing PS can be a methodology. The first limitation is regarding the data col- valuable organizational strategy for improving employees’ lection of variables through self-reporting questionnaire, and commitment levels and hence their ETP. PS can be achieved the data were collected in two phases, because of which the through implementing procedural justice and procedural response rate was only 34% for the first phase, and in the transparency in employees’ pay-related decisions (Muse second phase because some of the respondents left their et al., 2008). Ensuring pay-related internal equity (i.e., organizations, the response rate was around 65%. However, equity within the organization) and external equity (i.e., the findings of this study were strengthened as we followed equity with the competing organization and same profes- Podsakoff et al.’s (2012) suggestion by making respondents’ sion) also enhances CC of the employees (Zein el din & identity anonymous and by making questionnaires short and Mabrouk, 2013). In recent research studies, the perceived simple for the respondents. Harman’s one-factor test was sacrifice subdimension of CC has shown a significant also conducted to statistically test for common method bias, impact on ETP than other employee outcomes (e.g., contex- and it is believed that the common method bias is not signifi- tual performance and retention; Lapointe et al., 2011; cant. Second, our sample consists of faculty members from Panaccio et al., 2014). To enhance the PS of the employee, HEIs of Saudi Arabia and may not be generalized to popula- organizations also need to offer rewards to employee which tion working in other sectors. So, it could be noteworthy to not only organizations want but also that employees need. examine whether findings of this study differentiate with the The attractiveness of rewards will affect their commitment change in organizational or occupational characteristics. levels but also improve employee performance (Caza et al., Finally, in this study, the impact of PS on ETP was examined, 2015). whereas the relation between PS and employees’ contextual Saudi Arabia is among one of those countries which pro- performance still has to be developed. vide tax-free pay to their faculty members. So, they are pay- ing better than universities in other countries. So faculty Future Directions and Recommendations members do not leave their jobs for better opportunities in other countries, but within the same HEIs and HEIs of even The study utilizes information on faculty members’ pay in the same city they have different pay scales. This differential ranges, and their pay information would be of more inter- exists on the basis of nationality, country of last degree, and est in comparison with the pay received by peers or supe- experience, resulting in high level of inequity among faculty riors. From this type of information, future researchers members (Patton, 2014). To enhance PS, HEIs have to work should explore the perception of pay transparency, com- harder in reducing this inequity in pay, which will help them munication, and fairness-related issues. The PS and ETP not only in enhancing ETP, AC, and CC but also in retaining relationship should be examined in the light of economic high-quality faculty members. Moreover, it will help Saudi conditions to better understand this relationship in the Arabia to increase their human development index (Fallatah changing Saudi economic conditions. Different measure- & Syed, 2018). ment scales should be used to analyze the accuracy of The moderating effect of MS provides managers under- results in the higher education and different sectors. standing of the means by which PS influences ETP. Researchers should also utilize mixed-methods and cross- Implementing PS could be more successful in employees cultural approaches for data collection to have a much having high MS, due to the indirect association of PS and broader perspective. ETP through CC and AC. Managers should give individual consideration to their faculty members; in turn, there is Conclusion more chance of faculty members perceiving the warmth and consideration of their managers. Such MS can raise the This study provides an extension into the literature regarding faculty member’s awareness about the importance of MS PS by emphasizing the key mediation of CC and AC on the toward other stakeholders (i.e., students and subordinates) relationship of PS to ETP. This research study also explores (Mushtaq et al., 2017). Moreover, those employees who the role of MS as a moderator of PS to ETP relationship via receive MS from their managers usually feel obligated to CC and AC, in addition to its direct association with ETP. return their managers’ support by helping them reach their The study signifies that in higher education sector of Saudi own goals and objectives (Yoon, 2017). Organizations Arabia, MS positively moderates both first and second stages should develop mechanisms and procedures that can of indirect effects for both mediating variables (AC and CC). enhance employees’ perceptions of MS to enhance CC and Furthermore, the presence of MS strengthens PS–ETP rela- AC, as they are established predictors of enhancing ETP tionship. So, the findings of this study explain that the pro- (Nazir et al., 2016). cesses of linking PS with ETP are multifaceted and more Khalid 11 complicated than suggested by previous studies. 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Journal

SAGE OpenSAGE

Published: Mar 31, 2020

Keywords: Keywords; pay satisfaction; managerial support; affective commitment; continuance commitment; manager-rated employee task performance

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