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http://dx.doi.org/10.5392/JKCA.2017.17.06.571

The Relationship between Compensation and Job Satisfaction: Exploring the Role of Supervisor Support and Perceived Internal Equity  

Teo, Yit Chin (배재대학교 경영학과)
Lee, Jeong Eon (배재대학교 경영학과)
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Abstract
The main purpose of this research is to investigate the impact of compensation on job satisfaction. The study is designed to determine whether perceived internal equity acts as a mediation role in affecting the relationship between compensation and job satisfaction. This study also aims to explore the role of supervisor support in affecting employees' perception of equity toward the compensation. A total of 157 samples was obtained for the data analysis as a quantitative approach. The results of the data analyses revealed that both extrinsic and intrinsic rewards are positively correlated with job satisfaction. The results also showed that perceived internal equity acts as a mediating role in predicting variables of compensation and job satisfaction. The supervisor support does not moderate the relationship between compensation and perceived internal equity. It is suggested that management's efforts must be made in compensation management in order to increase employees' job satisfaction and to improve employees' perception of equity.
Keywords
Compensation; Perceived Internal Equity; Supervisor Support; Job Satisfaction;
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