Effect of performance-based pay on employees’ outcomes

Based on past research that discussed the system of pay within an organization,
participation and performance appraisal are two important elements in a performance-based pay.
The ability of managers to implement these two important elements may influence job satisfaction
and organizational commitment among employees. Hence, this study was carried out to test the
connection between performance-based pay against job satisfaction and organizational
commitment. Employees at the Department of Fire and Rescue in Selangor and Putrajaya were
chosen as the sample in this study. The outcome of the SmartPLS model analysis demonstrates
that participation and performance appraisal play an important role as a determinant of an
employee’s job satisfaction and organizational commitment. Discussion, implication, and
conclusion have been provided in this study