Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 52, No. 2, pp.513-534
ISSN: 1226-1874 (Print)
Print publication date 30 Apr 2023
Received 19 Sep 2022 Revised 27 Feb 2023 Accepted 15 Mar 2023
DOI: https://doi.org/10.17287/kmr.2023.52.2.513

조직의 차등 성과급 균형 운영과 조직 소통 그리고 일의 만족

Sungyu Choi ; Yongduk Choi
(First Author) Sogang University the.sgchoi@gmail.com
(Corresponding Author) Chonnam National University ydchoi@jnu.ac.kr
Balanced Incentive System, Organizational Communication and Work Satisfaction


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

In today's workplace, most organizations use rewards as a tool to enhance performance and promote employee motivation. However, the debate over the effectiveness of differentiation in reward continues, with existing studies focusing on the comparative advantages of individual and group incentives in such differential rewards. As a result, little is known about how to balance these two incentives to maximize their benefits. Drawing on the optimal uniqueness theory, we propose that balancing the proportion of individual and group incentives has a positive effect on employee motivation and performance. Specifically, when the proportion of individual-based and group-based incentives is balanced, employees can maintain both personal and social identities, which in turn satisfies their personal and social needs. To verify these theoretical discussions, we used the Human Capital Corporate Panel survey data collected by the Korea Vocational Competency Research Institute. We found that organizations that maintain a balanced proportion of individual and group incentives have a positive effect on organizational communication perceived by employees, which in turn has a positive impact on overall work satisfaction. Furthermore, the study also found that the indirect effect of a balanced incentive system on work satisfaction occurs through organizational communication. Theoretical and practical implications are discussed.

Keywords:

optimal distinctiveness theory, balanced incentive system, organizational communication, work satisfaction

Acknowledgments

This research is supported by Graduate School of Business, Chonnam National University in 2022.

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∙ The author Sungyu Choi received his Ph.D. in Sociology from Sogang University. His research interests include organizational theory, institutional theory, institutional logic, and social identity theory.

∙ The author Yongduk Choi is an associate professor of the College of Business Administration, Chonnam National University. He received his Ph.D. from Korea University of Business School. His research interests encompass Business Ethics, Employee Voice, Leadership and Motivation.