Designing a Compensation Model for Government Employees and Comparing it with a Variety of Government Organizations

Document Type : Research Paper

Authors

1 PhD candidate in public administration at the Faculty of Management and Economics, Science and Research Unit, Islamic Azad University, Tehran, Iran

2 Corresponding author: full professor at the Department of Public Administration, Faculty of Management and Economics, Science and Research Unit, Islamic Azad University, Tehran, Iran.

3 Full professor at the Department of Public Administration, Faculty of Management and Economics, Science and Research Unit, Islamic Azad University, Tehran, Iran.

Abstract

Considering the nature of the tasks and the scope of government activities, it is essential to pay adequate attention to the compensation of the employees’ services. This study is intended to design a compensation model for government employees and make a comparison between it and the four activities of the administration entities according to the Civil Service Management Law, including governance, social affairs, cultural affairs and service, as well as infrastructure and economic affairs. This is an applied-developmental research. Data analysis is conducted through thematic analysis, confirmatory factor analysis and Analytic Hierarchy Process (AHP). Semi-structured interviews were conducted with 23 academic and administrative experts for thematic analysis. In addition, the research model was validated by confirmatory factor analysis, by means of a questionnaire and interviews with 384 human resource managers and experts in government organizations. The results revealed that service compensation contains 6 main aspects including occupation rights, rights of job, additional special salary, performance reward, prizes and welfare along with 18 components. Likewise, the factors affecting service compensation and strategies for alignment between service compensation and other human resource subsystems and the resulting outcomes were identified at this stage. Consequently, the research model was designed. Finally, the weight of the dimensions and components of the research model were identified on the basis of experts’ views. The results showed that the dimension of “welfare” gained the highest weight among the four categories. As the present study is quite proper and fair with regard to content and structure, it is easier to implement and capable of removing the problems in Chapter 10 of the Civil Service Management Law.

Keywords

References

آقابابایی دهاقانی، زهره؛ معمارزاده طهران، غلامرضا و نیکجو، علی (1391)، عوامل سازمانی مؤثر بر جبران خدمات پزشکان متخصص شاغل در بیمارستان‌های دولتی شهر تهران، فرایند مدیریت و توسعه، دوره بیست‌ وهفتم، ش 1: 157-133.
توکلی‌نیا، جمیله؛ مسلمی، آرمان؛  فیرزوی، ابراهیم و بندانی، سارا (1394)، تحلیلی بر پراکنش جمعیت و توزیع خدمات شهری بر پایه عدالت فضایی (مطالعه موردی: شهر اردبیل)، پژوهش‌های جغرافیایی برنامه‌ریزی شهری، دوره سوم، ش 3: 308-285.
تیموری،‌ هادی؛  شاهین، آرش؛ شائمی برزکی، علی و کریمی، عبدالله (1397)، الگوی نظام جبران خدمات شایسته‌محور کارکنان، فصلنامه علمی – پژوهشی مطالعات مدیریت (بهبود و تحول)، دوره بیست‌وهفتم، ش 90: 140-115.
حبیبی، آرش (1397)، آموزش کاربردی SPSS، تهران:  نشر الکترونیک پارس‌مدیر.
حیدری، مجتبی؛ سلاجقه، سنجر؛ پورکیانی، مسعود؛ صیادی، سعید و امیری، افلاطون (1399)، ارائه مدل جبران خدمات مادی و غیرمادی با رویکرد بهره‌وری نیروی انسانی، مجله مدیریت توسعه و تحول، دوره دوازدهم، ش40: 71-65.
دانش‌فرد، کرم‌اله (1395)، روش بررسی و تحلیل مسائل مدیریت، چاپ دوم، تهران: انتشارات صفار.
سرمد، زهره؛ بازرگان، عباس و حجازی، الهه (1385)، روش‌های تحقیق در علوم رفتاری، تهران: انتشارات آگاه.
شهلایی، ناصر (1396)، تبیین اصول پایه‌ای و ارزشی نظام حقوق و مزایای نیرو‌های مسلح ج .ا . ایران، فصلنامه راهبرد دفاعی، دوره پانزدهم، ش 57: 103-67.
فانی، علی‌اصغر؛ دانایی‌فرد، حسن؛ کاووسی، الهه و نیری، شهرزاد (1399)، طراحی مدل نظام جبران خدمات کارکنان دانشی در سازمان‌های دانش‌بنیان فناوری‌محور، فصلنامه پژوهش‌های مدیریت منابع انسانی، سال دوازدهم، ش 4: 195-161.
قانون مدیریت خدمات کشوری (1386).
قلی‌پور،آرین (1398)، استاندارد 34000 تعالی منابع انسانی در عمل (مدیریت منابع انسانی پیشرفته)، تهران: انتشارات مهربان نشر.
قلی‌پور، آرین و آغاز، عسل (1395)، مدیریت منابع انسانی پیشرفته2: سیستم حقوق و مزایا، تهران: انتشارات سازمان مدیریت صنعتی، چاپ اول.
قلی‌فر، احسان؛ حجازی، یوسف؛ حسینی، محمود و رضایی، عبدالمطلب (1390)، تحلیل عاملی تأییدی مؤلفه‌های لازم برای ارتقای توانمندی اعضای هیئت‌علمی دانشکده‌های کشاورزی ایران، فصلنامه پژوهش و برنامه‌ریزی در آموزش عالی، ش 60: 58-37.
کشاورز، فاطمه (1395)، بررسی نظام پرداخت حقوق ومزایا در بخش عمومی باتأکید ویژه بر پدیده حقوق‌های نجومی، کنفرانس بین‌المللی رویکردهای نوین علوم انسانی در قرن 21، رشت، ایران، 8 اسفند 1395.
لطیفیان، احمد و اولیایی، نعیمه (1396)، الگوی ایرانی اسلامی پرداخت دستمزد عادلانه و رفع تبعیض در سازمان‌ها، ششمین کنفرانس الگوی اسلامی پیشرفت. تهران، ایران، 14-13 اردیبهشت 1396.
مالکی، محمدرضا؛  فقیهی، ابوالحسن و میرسپاسی، ناصر (1398)، نارسایی‌های نظام جبران خدمت کارکنان در بخش دولتی ایران، فصلنامه علوم مدیریت ایران، دوره چهاردهم، ش 84: 29-1.
مالکی، محمدرضا؛  طهرانی، مریم و شکوهی، اکبر (1394)، نظام جبران خدمات کارکنان، تهران: انتشارات مرکز پژوهش‌های مجلس، چاپ اول.
مرکز پژوهش‌های مجلس شورای اسلامی (1397)، بررسی لایحه بودجه سال 1397 کل کشور، تحلیلی بر اعتبارات جبران خدمات کارکنان و رفاه اجتماعی، شماره مسلسل 15464.
معمارزاده طهران، غلامرضا و مبینی، محمد (1394)، آینده‌پژوهی سازمان‌های دولتی ایران متناسب با الزامات اقتصاد مقاومتی، فصلنامه سیاست‌های راهبردی و کلان، دوره چهارم، ش(15)4: 32-1.
موسوی، علی؛ فیاضی، مرجان و سیدجوادین، سیدرضا (1393)، تأثیر انواع راهبردهای جبران خدمات بر رضایت از حقوق و دستمزد، فصلنامه پژوهش‌های مدیریت منابع انسانی، سال ششم، ش 3: 215-193.
مهرگان، محمدرضا (1386)، پژوهش عملیاتی پیشرفته، تهران: نشر کتب دانشگاهی، چاپ دوم.
نجف‌بیگی، رضا (1395)، نگاهی به مدیریت توسعه پایدار و توسعه در ایران، تهران: انتشارات ترمه، چاپ اول.
نعمتی، سمیه؛ خائف الهی، احمدعلی و مؤمنی، نونا (1392)، طراحی نظام جبران خدمات در سازمان‌های دانش‌بنیان با رویکرد مدل سازی ساختاری-تفسیری، پژوهش‌های مدیریت منابع انسانی، دوره سوم، ش 2: 151-131.
 
Abbott, J. & De Cieri, H. (2008). Influences on the provision of work-life benefits: Management and employee perspectives. Journal of Management and Organization,14(3), 303-322.
Anderson, M. C., Banker, R. D. & Ravindran, S. (2000). Executive compensation in the information technology industry. Management Science, 46(4), 530-547.
Anthonia, N., Okeke, M. N & Ibekwe, A. (2019) Compensation Management and Employee Performance in Nigeria International Journal of Academic Research in Business and Social Sciences, 9(2), 384-398.
Atchison, T.J., Belcher D.W. & Thomsen D.J. (2010). Internet Based Benefits and Compensation Administration. USA: ERI Economic Research Institute.
Balkin, D. B. & Bannister, B. D. (1993). Explaining pay forms for strategic employee groups in organizations: A resource dependence perspective. Journal of Occupational and Organizational Psychology, 66(2), 139-151.
Balkin, D. B. & Gomez-Mejia, L. R. (1987). Toward a contingency theory of compensation strategy. Strategic Management Journal, 8(2), 169-182.
Bloom, M. & Milkovich, G. T. (1998).Relationships among risk, incentive pay, and organizational. performance. Academy of Management Journal, 41(3), 283-297.
Boyd, B. K. & Salamin, A. (2001). Strategic reward systems: A contingency model of pay system design. Strategic Management Journal, 22(8), 777-792.
Braun, V. & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3, 77-101.
Budhwar, P., Pereira, V., Mellahi, K. & Singh, S. (2019). The state of HRM in the Middle East: Challenges and future research agenda, Asia Pac J Management. Available at: https://doi.org/10.1007/s10490-018-9587-7.
Burke, L. A. & Hsieh, C. (2006). Optimizing fixed and variable compensation costs for employee productivity. International Journal of Productivity and Performance Management, 55( ½), 155-162.
Carmine, B. & William, C.  R. (2014). Performance   Management   in Local Government:  The Application of System Dynamics to Promote  Data  Use. International Journal of  Public Adminstration, 37, 945-654.
Cobb, J. A. (2016). How firms shape income inequality: Stakeholder power, executive decision-making, and the structuring of employment relationships. Academy of Management Review, 41, 324–348.
Conlon, E. J. & Parks, J. M. (1990).Effects of monitoring and tradition on compensation arrangements: An experiment with principal-agent dyads. Academy of Management Journal, 33(3), 603-622.
Darmon, R. Y. (1982). Compensation plans that link management and salesman's objectives. Industrial Marketing Management, 11(2), 151-163.
Datta, S. K., Nugent, J. B. & Tishler, A. (2004).Contractual mix between cash and kind wages of casual workers in an agrarian economy. Review of Development Economics, 8(4), 521-540.
DeCenzo, D.A. & Robbins, S.P. (1999). Human Resource Management (6ed ed.). New York: John Wiley & Sons, Inc.
Demougin, D. & Fluet, C. (2001).Monitoring versus incentives.European. Economic Review, 45(9), 1741-1764.
Department of Administrative Reforms and Public Grievances Ministry of Personnel, Public Grievances & Pensions Government of India .(2017). scheme for prime minister’s awards for excellence in public administration.
Dibie, R., Edoho, F., & Dibie, J. (2015). Analysis of capacity building and economic growth in sub-saharan Africa. International Journal of Business and Social Science, 6(12), 1-25.
Eisenhardt, K. M. (1988). Agency - and institutional - theory explanations: The case of retail sales compensation. Academy of Management Review, 31, 1153-1166.
Elvira, M. M. (2001).Pay me now or pay me later: Analyzing the relationship between bonus and promotion incentives. Work and Occupations, 28(3), 346-370.
Festing, M., Eidems, J. & Royer, S. (2007). Strategic issues and local constraints in transnational compensation strategies: An analysis of cultural, institutional and political influences.European Management Journal, 25(2), 118-131.
Gerhart, B. & Milkovich, G. T. (1990).Organizational differences in managerial compensation and financial performance. Academy of Management Journal, 33(4), 663-691.
Gerhart, B. & Trevor, C. O. (1996).Employment variability under different managerial compensation systems.Academy of Management Journal, 39(6), 1692-1712.
Goby, V. P., Nickerson, C., & David, E. (2015). Interpersonal communication and diversity climate: Promoting workforce localization in the UAE. International Journal of Organizational Analysis, 23(3), 364–377.
Gomez-Mejia, L. R. & Balkin, D. B. (1989).Effectiveness of individual and aggregate compensation strategies. Industrial Relations, 28(3), 431-445.
Gomez-Mejia, L. R. (1992).Structure and process of diversification, compensation strategy, and firm performance.Strategic Management Journal, 13(5), 381-397.
Gomez-Mejia, L. R., Tosi, H. & Hinkin, T. (1987). Managerial control, performance, and executive compensation. Academy of Management Journal, 30(1), 51-70.
Government of India ministry of home affairs, press note, North Block, New Delhi-1Dated the 25thJanuary, (2020) available at: https://www.mha.gov.in/media/awards-medals.
Hay Group. (2008). The Hay Group Total Reward Framework. [online]. Available at http، //haygroup.com  [Accessed 20 June 2014].
Hernandez, R.G. (2015). Approaches to variable pay systems. phd Thesis universitat de barcelona
Hills, P.S.,Bergmann, T.J. & Scarpello, V.G.  (1994). Compensation decision making, 2nd
Ed., New York: The Dryden Press.
Huselid, M.A. & Becker, B.E. (2011). Bridging Micro and Macro Domains: Workforce Differentiation and Strategic Human Resource Management. Journal of Management, 37(2), 421-428.
Huselid, M.A., Beatty, R.W. & Becker, B.E. (2005). A players” or “A Positions? The strategic logic of workforce management. Harvard Business Review
Ippolito, R. A. (1987).Why federal workers don't quit. The Journal of Human Resources, 22(2), 281-299.
Ittner, C. D., Larcker, D. F. & Pizzini, M. (2007).Performance-based compensation in member-owned firms: An examination of medical group practices.Journal of Accounting and Economics, 44(3), 300-327.
Ivana, N.B., Maja, K. &  Lovorka, G. (2019). The role of individual variable pay in a collectivistic culture society: an evaluation economic. research-ekonomska istra_zivanja, 32(1), 1352–1372.
Kahya, E.  (2019). A wage scheme based on job and performance evaluations. Journal of Industrial Engineering, 30(3), 187-203.
Katerina,V.S & Kolackova, g. (2013). Identification of employee performance appraisal. Journal of competitiveness. Methods in agricultural organizations, 5(2), 20-36.
Kuhn, K. M. & Yockey, M. D. (2003).Variable pay as a risky choice: Determinants of the relative attractiveness of incentive plans. Organizational Behavior and Human Decision Processes, 90(2), 323-341.
Mabaso, C. (2018). Impact of compensation and benefits on job satisfaction. Journal of business management, 11(2). 118-140.
Manne, H. (2009). Enterpreneurship, Compensation and Corporation. Second Annual Research Symposiom in Economics and Low of the Entrepreneur.
Martocchio, J. J.  (2015). Pay, Compensation, and Performance, Psychology. International Encyclopedia of the Social & Behavioral Sciences: Second Edition, 611-617
Milcovich, G. & J. Newman. (2008). Compensation. Irwin Professional Pub.
Milkovich, T.G. & Newman .M.J. (2005). Compensation management.mcgraw-hill Ryerson, limited.
Miller, J. S., Hom, P. W. & Gomez-Mejia, L. R. (2001).The high cost of low wages: Does Maquiladora compensation reduce turnover?. Journal of International Business Studies, 32(3), 585-595.
Morel, N., Touzet, C. & Zemmour, M. (2018). From the Hidden Welfare State to the Hidden Part of Welfare State Reform: Analyzing the Uses and Effects of Fiscal Welfare in France. Social Policy & Administration, 53(1), 34-48.
Namazie, P., & Pahlavnejad, A. M. (2016). Human resource management in Iran. In P. Budhwar, & K. Mellahi (Eds.). Handbook of human resource management in the Middle East: 161–179. Cheltenham: Edward Elgar.
Neo, R. Hollenbeck, J., Gerhart, B. & Wright, P. (2010), Human resource management: gaining a competeitive advantage. Seven edition, Mcgraw-Hill.
OECD. (2015). Performance-related pay policies for government employees:  Maintrends in OECD member countries. www.oecd.org.
Olsen, J.E. (2015), Societal values and individual values in reward allocation preferences. Cross Cultural Management: An International Journal, 22(2), 187-200.
Padayachee, K.M. (2017). A Total Rewards Framework for the Attraction and Retention of the Youthis my own work. Phd THESIS UNIVERSITY OF SOUTH AFRICA.
Pappas, J. M. & Flaherty, K. E. (2006).The moderating role of individual-difference variables in compensation research. Journal of Managerial Psychology, 21(1), 19-35.
Peiffer-Smadja, N., Lucet, J.C., Bendjelloul, G., Bouadma, L., Gerard, S., Choquet, C., Jacques, S., Khalil, A., Maisani, P., Casalino, E., Descamps, D., Timsit, J., Yazdanpanah, Y. & Lescure, F. (2020). Challenges and issues about organizing a hospital to respond to theCOVID-19 outbreak: experience from a French reference center. Clinical Microbiology and Infection, 26, 669-672.
Ponta, L., Cainarca, G. C. & Cincotti, S. (2020). Monetary Incentives in Italian Public Administration: A Stimulus for Employees? An Agent-Based Approach. Hindawi, https://doi.org/10.1155/2020/6152017.
Pynes, J. E. (2016). Merit Pay and Pay-for-Performance. Encyclopedia of Public Administration and Public Policy, 20(3), 35-49.report, available at:January.http://www.worldbank.org/publicsector/civilservice.Mayseminar/ParReformStudy.pdf.
Roth, K. & O'Donnell, S. (1996).Foreign subsidiary compensation strategy: An agency theory perspective. Academy of Management Journal, 39. 678-703.
Segalla, M., Rouzies, D., Besson, M. & Weitz, B. A. (2006). A cross-national investigation of incentive sales compensation. International Journal of Research in Marketing, 23(4), 419-433.
Shaw, J. D. (2014). Pay dispersion. Annual Review of Organizational Psychology and Organizational Behavior, 1, 521–544.
Sinfield, C. (2016). Tax benefits and their impact on the social division of welfare, Paper presented at the “Fiscal welfare in Europe” workshop, Sciences po, Paris, May 26-27.
Stroh, L. K., Brett, J. M., Baumann, J. P. & Reilly, A. H. (1996).Agency theory and variable pay compensation strategies. Academy of Management Journal, 39(3), 751-767.
Tae-Youn, P., Seongsu, A., Kim, B. & Li-Kuo, S. (2017). Fair pay dispersion: A regulatory focus theory view. Organizational Behavior and Human Decision Processes, 142, 1–11.
Tosi, H. L. & Greckhamer, T. (2004). Culture and CEO compensation. Organization Science, 15(6), 657-670.
Towers Perrin (2014), Ten Steps to Creating an Engaged Workforce: Key European
Findings, Towers Perrin HR Services
Towers Watson.( 2012). Total rewards strategies for the 21st century. Towers Watson. [online]. Available at،<http//www.towerswatson.com>. [Accessed 20 October 2014].
Towers, Watson., (2012). Total rewards strategies for the 21st century. Towers Watson. [online]. Available at: http//www.towerswatson.com. [Accessed 20 October 2014].
Tremblay, M. & Chenevert, D. (2005).The effectiveness of compensation strategies in international technology intensive firms. International Journal of Technology Management, 31(3/4), 222-239.
Tremblay, M., Cote, J. & Balkin, D. B. (2003). Explaining sales pay strategy using agency, transaction cost and resource dependence theories. The Journal of Management Studies, 40(7), 1651-1682.
Trevor, C. O., Reilly, G., & Gerhart, B. (2012). Reconsidering pay dispersion’s effect on the performance of interdependent work: Reconciling sorting and pay inequality. Academy of Management Journal, 55, 585–610.
Umanath, N. S., Ray, M. R. & Campbell, T. L. (1996).The effect of uncertainty and information asymmetry on the structure of compensation contracts: A test of competing models. Management Science, 42(6), 868-874.
United States Government Accountability Office (GAO). (2014). Key Compensation Elements Should Be Reviewed to Address Costs and Sustainability, Report to Congressional Requesters. GAO-14-546.
Van der Stede, W. A. (2003).The effect of national culture on management control and incentive system design in multi-business firms: Evidence of intracorporate isomorphism. European Accounting Review, 12(2), 263-285.
Werner, S. & Tosi, H. L. (1995).Other people's money: The effect of ownership on compensation strategy and managerial pay.Academy of Management Journal, 38(6), 1672-1691.
WorldatWork., (2015). Total Rewards Concept and Model. Rewards. [online]. Available at: http//www.worldatwork.org. [Accessed 24 June 2016].
Yanadori, Y. & Marler, J. H. (2006). Compensation strategy: does business strategy influence compensation in high-technology firms?. Strategic Management Journal, 27(6), 559-570.
Yazdani, M.,  Mohebbi, S.,  Bagheri, M. &  Ranjbar, M.H. (2020) . A Comparative Study of Talent Management Models: Lessons for Iran's Human Resources System. Iranian Journal of Comparative Education, 3(1), 609-623.
 Zafar, M., Sarwar, A., Zafar, A. & Sheeraz, A. (2020). Impact of Compensation Practices on Employee Job Performance: An Empirical Study.  Proceedings of the Fourteenth International Conference on Management Science and Engineering Management, 315-324.
Zingheim, P.K. & Schuster, J.R., (2000). Pay people right: Breakthrough reward strategies to create great companies. San Francisco: Jossey-Bass Publishers.
Journal of Research in Human Resources Management
Volume 13, Issue 3 - Serial Number 45
NO 45 , Fall Quarterly
October 2021
Pages 115-167

Files

History

  • Receive Date: 14 October 2020
  • Revise Date: 23 April 2021
  • Accept Date: 23 April 2021

Share

How to cite

Statistics