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How The Pay Structure And Pay Inequality Affects Job Satisfaction & Performance In Chinese Companies

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The purpose of the study is to determine how pay structure and pay inequity affect job satisfaction and performance in Chinese organizations. However, this would be based on consideration of ten entrepreneurship organisations in China. It is important to state that employee job satisfaction and rewards are essential considerations in the service delivery sector globally. The main factors that could be viewed differently are based on cultural consideration and a country’s level of economic development. It would be imperative that satisfied employees would strive hard to realise customer satisfaction as well. However, when employees are less motivated, there would be chances that they work towards a common goal. This implies that organisations should strive to enhance employee motivation in the quest to accomplish predetermined objectives. Rewards and job satisfaction are inseparable; research indicated that, for employees to satisfactorily accomplish the organisation’s objectives, goals and aims, it is important to motivate them. Ten entrepreneurship organisations were interviewed so that a realistic perception would be achieved. According to employee responses, research paper indicated that motivated employees were easily detected through interview responses. The same could also happen to the consumers and potential organization’s customers. When employees serve the clients with unwilling hearts, the same unmotivated picture would be inevitable.

 According to study findings and hypotheses, it was evident that job rewards positively impacted employee performance. The different  organisations have distinct approaches to award their employees, based on employee behavior and determination of respective approaches that  could enhance employee motivation, organisations are supposed to  derive the best  approach to deal with its employees. Conversely, it is not supposed to taken for granted as a general term that employees have to be remunerated. To some extent, research indicated that payment of considerable salaries and within specific time frames could be used as motivating facts. Many people work with mindset on the exact paydays so that they would be able to solve their issues within their households accordingly. Delays or unpredictable may process was evidenced to cause employee demoralization. However, the report entails introductory part that is concerned with derivation of the meaning and importance of compensation, employee motivation, research rationale and objectives respectively. In addition, the second part of the report; literature review illustrates the main back group of the research subject, its contents and how well it would be investigated. In our case, the second chapter, much information about employee motivation would be handled. For example, the consideration and definition of base salary, how the salary impacts employee work output. Overtime payments (OT) will also be covered. There are many employees who often derive pleasure to work for overtime pays, such employees should be well monitored by the organisation so that surety may be derived on what could be done to enhance their positive perception towards their jobs.

Other motivational factors include bonus pays. But, bonus pay does not consider cost of achieving the same. Hence it would be considered in the report that organisations are supposed to invest much in the motivational aspects of employee satisfaction so that they achieve much. Conversely, benefits would also be included in the motivational facets. The report would elucidate on the types of benefits which are mainly divided into two; allowances and work-life balance. However, allowances refer to monetary incentives while the work-life balance include but not limited to time-offs and leaves. Some organisations accord employees paid work-life balance while others do not. But it is important that organisations should embrace perception of work-life balance. It enhances employee success since allocated time could be used effectively to settle domestic issues.

The report would indicate the reasons as to why the research study considered qualitative techniques in rather than quantitative techniques although in many cases the two could be applicable at the same time. This is the third chapter of the report. Sampling process involved were limited to random sampling (stratified random sampling method) and non-probabilistic random sampling (Convenience Sampling). SPSS (Statistical Package for Social Science (SPSS) was used in effectively analysing collected data to derive prudent and realistic research outcome. It was appreciable to learn that research outcome conformed to electronic and online information on similar research subject within Chinese organisations. However, report illustrate that data collection processes were accomplished through individual interviews; this process entailed interview questions design so that realistic and direct employee reactions could be monitored to derive an overall view about their perception in regard to pay structure and equality in enhancing employee motivation among ten selected entrepreneurship organisations in China.

The fourth chapter of the report contains findings and analysis on how pay structure and pay inequity affect job satisfaction and performance in Chinese organizations. This created a better perception of cultural consideration of the Chinese entrepreneurial organisations and how their respective pay structures and pay inequality affect employee performance and job satisfaction respectively in the Chinese organisations. Finally, a conclusion and recommendations about the research subject wind up the report. This vehemently predicts and recommends approaches that could be adopted to increase employee job satisfaction which corresponds to work output passé. It would be recommended that Chinese based entrepreneurship organisations take the research outcome positively so that they would devise a method of correcting their mistakes so that organisations would achieve their best leading to positive economic growth in the East.


In an organizational set-up, every employee supposes to be remunerated in accordance with qualification and level of expertise involved in delivering tasks assigned accordingly. However, China is not exception in the quest to derive a workable approach that organisations would adopt to enhance better work process that would effectively benefit the organisation and employees alike. Payment or compensation could be referred to as a broad construct that could be explained through an organizational language (Wright & Bonett, 2007). In linguistics, it could be referred to as reward for service. However, the word remuneration may be used interchangeably within respective organisations although this does not change the meaning of the term and its application areas. According to China based organisations, it could be viewed as an important facet within human resources management. According to data received from secondary sources, traditional employers consider numerous factors to translate into financial breakthrough (Saunders et. al., 2003).


In the history of China, compensation systems designed by employers were based in respective internal variables within organisations. Job structures were used to determine the type of pay, amount and level of payment respectively. The study will elaborate on other factors that determined the level of pay include but not limited to seniority, tenure, serve period length within which employees have served, membership, seniority and the kind of service. However, such compensation practice could be related to employee situations in industrial organisations which operate in predictable and stable operating business conditions, this is similar to Taylor’s management theory (Borzaga &Tortia, 2006).

China being ranked among the industrialised countries, level of globalization has been cited to enhance shift in China. Employment culture has since shifted from traditional based job pays to organizational culture and strategy based payment. However, under similar perspective, external organisation variables have also been cited to shift compensation design in China (Westover & Taylor, 2010). This necessitates fluctuation of respective types, amount and payment levels allocated to employees in an organisation. In this regard, numerous organisations consider merits, skills, knowledge and performance in determining how much an employee should earn (Tang, 2003, & Oshagbemi, 2003). Employees are very sensitive in monitoring performance based pay distributions in respective jobs. The organisations strive to adopt an approach that could be neutral so that more employees may be attracted, motivated and retained especially the competent employees (Borzaga &Tortia, 2006). This would enhance support to human resources management and the entire organisation in strategic management and achieving its goals respectively. The dissertation will focus on how the pay structure and pay inequity affect job satisfaction and performance in Chinese organizations (Saunders et. al., 2003).

When considering performance based payment, Chinese organisations have two groupings for employees. These are team based pay and gain sharing. The other one is based on individual performance for example; lump sum bonus, merit pay, variable pay and promotion based incentives (Wright & Bonett, 2007). It is important to state that despite the different types of pay systems Chinese organisations derive similar pay systems and criteria to allocate payments. This pay system creates equity for reward distribution, although there are respective fluctuations in pay structures and levels which are contingent on performance levels, competency, skills and knowledge as exhibited by employees, and not nature of respective employee’s job structure (Westover & Taylor, 2010).

Research Rationale

The current rate of industrialisation in China is encouraging. The adoption of latest technological approach has greatly encouraged employee team spirit and adoption of strategies that enhances better employee remunerations (Tang, 2003, & Oshagbemi, 2003). With proper pay and adherence to employee needs, decision-making processes are effective in Chinese based organisation. Centuries ago, this could not have been accomplished; lack of technology based approach was a great hindrance (Wright & Bonett, 2007). Organisations could not have gotten opportunities to learn from each other, many approaches adopted never yielded much (Borzaga &Tortia, 2006).  China is an agitated country that is determined to become the global leader in industrial and organizational productivity; this has shaped the country’s desire to accomplish better strategies (Wang & Feng, 2003). This is the reason as to why the research is initiated to enhance equal consideration and better pay strategies for enhancing employee participation in Chinese based organisations. Employee motivation is essential in order to ensure that organisations achieve their aims, goals and objectives within the contemporary business world.

According to Bell (2010), pay for effective performance in Chinese organisations has two salient features: adequacy in pay and participation in pay systems. Some of the high performing human resource practices are based on consideration or remuneration and pay packages. This would be effectively used by employers to enhance employee motivation in respective hierarchical employee categories (Wright & Bonett, 2007). Chinese base organisations are determined and encouraged to adopt two major employee participation styles: pay design participation (which include start up pay for new employees), and pay administration participation (this could be evidenced in operation stage of the system) (Tang, 2003, & Oshagbemi, 2003).

It is recommended that Chinese organisation’s pay systems be implemented to enhance stronger employee attraction, motivation and retaliation. This enhances achievement of major organizational objectives within payment systems (SHRM. 2011). The research targets respective organisations in China. However, it is purposefully designed to enhance employee motivation through adoption of prudent approaches that motivates employees in the quest to accomplish organizational objectives, aims and goals respectively. This could be affirmed through determining the type of organizational structure and pay systems adopted for satisfying employee needs and also shaping employee perception in regard to organisation (Wang & Feng, 2003).

According to research, Chinese organisations are determined in enhancing practices that improve employee performance, work quality, customer satisfaction and equal labour costs for employees. When organisations recognise employee needs and contributions through adoption of practices that embrace legal and regulatory facets, it would be evident that organizational competitiveness is achieved within the global scope (Borzaga &Tortia, 2006). In addition, this result from employee motivation and equal consideration as far as pay is concerned within organisation’s structure and strategic obligations. Further studies regarding organizational compensation on basis of direct effect models indicate the possibility of implementing proper pay as a tool that management could use to positively affect job satisfaction (SHRM. 2011).

Research Aims

  • To determine how organisations in China could adopt justifiable models in enhancing employee- management relationship as far as employee motivation and pay are concerned.

Research Objectives

This study would be based on three major objectives that include;

  • How adequate pay relates to employee satisfaction
  • How interactional equality between job satisfaction and pay systems affects organizational productivity.
  • The interaction between job satisfaction and adequate pay in Chinese based organisations.

Research Questions

  • Does employee remuneration determine their corresponding performance in China?
  • How is job satisfaction related to pay systems?
  • Does organisation structure affect productivity?
  • What is the relationship between pay inequality and job satisfaction?

Structure of the Dissertation

The dissertation paper will be structured as follows:

The title page: it will contain the study title, name of the student, affiliated university, lecturer and the semester fall.

Abstract/ Executive summary: This is summative information regarding the contents of the dissertation paper; it will highlight the key points that would form the basis of the paper.

Acknowledgement: This will recognise the respective persons who contributed in one way or the other towards the progress and completion of the study.

Declaration: The assertion that the work is an original research which is yet to be submitted to any examination body.

Table of contents: This is a list of the paper structure from the first page to the last page.

Chapter one: The dissertation will be formulated in a way that entails chapters one to five. Chapter of the research contains the introduction, background information, research rationale, research aims and objectives, research questions and the dissertation structure.

Chapter two: Will be the literature review. This chapter will contain a conceptual framework for illustrating the study topic in broader perspective so that an appropriate insight would be derived for implementing workable approach in the study.

Chapter three will be the Methodology. It will contain an appropriate plan for achieving a solution to the research question satisfactorily.

Chapter four will be the Findings and analysis; this chapter will contain information derived from the research methodology. Proper analysis would be conducted to ensure that an appropriate solution should be derived so that conclusion and recommendations would be made in the next chapter.

Chapter five will be the concussion and recommendation. However, it will contain the summary of the research dissertation and corresponding solutions that would solve the research questions.

Appendices: This is the last part of the dissertation; it will contain the pictures, tables and respective forms that are used in the dissertation.

References: Will contain all the sources of material used in developing the dissertation, especially electronic books, website links and other sources of documentaries.


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You are here: Home Resources How The Pay Structure And Pay Inequality Affects Job Satisfaction & Performance In Chinese Companies