Pay-for-Performance and Organizational Citizenship Behavior in Thai Hotels: The Mediating Role of Perceived Organizational Support

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Suteera Detnakarin Suthinee Rurkkhum

Abstract

This study aimed to 1) examine the relationship between pay-for-performance (PFP) and organizational citizenship behavior (OCB), and 2) to study the role of perceived organizational support (POS) in the relationship between PFP and OCB in Thai hotels. Data were collected from 327 frontline employees of hotels in the most visited provinces in the south of Thailand, and were then analyzed using the Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The results revealed both direct and indirect effects in the relationship between PFP and OCB. POS is the partial mediator of the indirect effect. The results suggested that PFP not only is an incentive to make employees more likely to perform extra-role behavior, it also acts as the signal from the organization to employees that the organization values their work, so it employs the performance-based payment. As a result, the employees are fully dedicated to their work, even when the work is outside the responsibilities they are assigned for. These findings contribute to an important understanding of the relationship between payment policy and employee behavior in the service business. Discussion and implications are also provided.

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Research Articles

References

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