Abstract
Traditionally, research focused on determining the causes of employee pay satisfaction has investigated the influence of job-related inputs, both extrinsic and intrinsic to the job itself. Together with these inputs, pay-related fairness issues have played an important role in explaining the phenomenon. However, few studies consider the factors linked to fairness issues, such as ethical leadership. Because ethical leadership necessarily entails the concept of fairness, it seemingly should have a positive effect. Furthermore, because the presence of supervisor ethical leadership (SEL) offers strong chances for employees to achieve moral accomplishments and excel in the practice of their jobs, SEL should enhance the effects of intrinsic job inputs. Whereas high job motivating potential (JMP) makes it easier for employees be self-actualized, moral fulfillment is necessary for them to obtain authentic self-actualization at work and minimize the impact of pay deficiencies. Along with SEL, JMP should be shaped to increase positive experiences of job meaningfulness, responsibility for job outcomes, and knowledge of results at work, which can lead to enjoyment in doing the job in itself, not just for compensation-related motives. Hierarchical regression analysis with a sample of 151 employees in a diverse set of Spanish organizations supports the direct effects of JMP and SEL and shows that higher levels of SEL increase the positive effects of JMP on pay satisfaction. The practical implications of these findings and further research directions conclude this article.
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Notes
We pre-tested the survey in several meetings with academics, employees, and human resource managers. On the basis of their feedback, we made several changes to the wording of some items. We again pilot-tested the revised instrument with a group of academics but no further revisions were necessary.
To test for non-response bias, we assessed differences on the study’s dependent and key independent variables between the top one-fourth and bottom one-fourth of the 151 respondents by conducting corresponding independent sample t-tests. No significant differences occurred, which suggests that non-response bias is not a problem in this study. Furthermore, because all the measures appeared in the same measure instrument (i.e., questionnaire), we assessed common method bias through the one-factor Harman test (Scott and Bruce 1994). We conducted a principal components factor analysis on the questionnaire items; up to 17 factors with eigenvalues greater than 1 explained the total variance (88 %). Because many factors were indentified and the first factor did not account for most of the variance (27 %), common method bias is not a problem in this study.
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Ruiz-Palomino, P., Sáez-Martínez, F.J. & Martínez-Cañas, R. Understanding Pay Satisfaction: Effects of Supervisor Ethical Leadership on Job Motivating Potential Influence. J Bus Ethics 118, 31–43 (2013). https://doi.org/10.1007/s10551-012-1549-2
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DOI: https://doi.org/10.1007/s10551-012-1549-2