Factors Affecting the Perceptions of Organizational Pay Systems

This research examines the effect of individual, role, and organizational factors on perceptions of the organizational pay system. All three factors contribute to the variations in the perceived instrumental relationship between pay and performance. Role and organizational factor's exhibited the strongest relationship. The associations between the antecedent variables and the perceived instrumentalities are affected also by the degree of formalization in the company's merit system and in whether the population was managerial or blue collar. A general framework concerning how perceptions about reward systems are acquired is discussed.