Effect of Manager’s Role in Performance Based Pay on Employee Outcomes

According to the recent literature pertaining\udon Islamic based organizational compensation,\udperformance based pay consists of two essential\udfeatures: communication and performance\udappraisal. Recent studies in this field highlights\udthat the ability of managers to appropriately\udcommunicate pay information and appraise\udemployee performance may have a significant\udimpact on employee outcomes, especially job\udsatisfaction and organizational commitment.\udTherefore, this study was undertaken to assess\udthe relationship between manager’s role in\udperformance based pay and employee outcomes\udusing self-administered questionnaires collected\udfrom employees at a district council in Peninsular\udMalaysia. The outcomes of the SmartPLS path\udmodel analysis showed that pay communication\uddoes not act as an important determinant of\udjob satisfaction, but performance appraisal\uddoes act as an important determinant of job\udsatisfaction. Conversely, pay communication\udand performance appraisal act as important\uddeterminants of organizational commitment.\udIn addition, this study provides discussion,\udimplications and conclusio