The impact of compensation plan on work practices within the organization: a case of MNC's operating in the twin cities of Pakistan

Abstract

This study examines how the work practices impacts the compensation plans. The principal dimensions of work practices and compensation plans that give rise to distinct reactions among employees are examined. The attention of this study is to predict the possibility, at an acceptable level of confidence that work practices have positive association with the direct and indirect compensation. Using survey data from 300 professionals working in financial and oil companies of Pakistan, the results were analyzed using the regression analysis technique through SPSS 20 software. It is found that, as hypothesized, work practices impacts positively with compensation plans. Hence, the hypotheses of this study which suggest that work practices augment the direct and indirect compensation are sustained. Afterwards, the implications of this inquiry for the academia, practitioners, and the policy makers are discussed in the field of human resource management. The study offers a detailed insight to help academicians, policy makers and practitioners to improve work practices within the organization for favorable results. Finally, the possible avenues for future research in the existing field of inquiry are discussed briefly.