DOES COMPENSATION AFFECT TASK PERFORMANCE? A CASE FROM PUBLIC SECTOR HOSPITALS OF KARACHI – PAKISTAN

Munaza Bibi

Abstract


The performance of human resources is regarded as a contributory factor to the performance of an organization. Nowadays compensation is considered the most influential factor to motivate human resources to accomplish the designated tasks. This study examines the effect of salary and bonus as a form of direct compensation while employee recognition and flexible working hours as a form of indirect compensation on the task performance. A deductive approach was employed to determine the causal link with a sample of 370 employees working in public sector hospitals while the developed hypotheses have been examined by structural equation modeling. The results of the study revealed that salary, bonus, employee recognition, and flexible working hours have a positive effect on task performance. So, managers of public sector hospitals need to seriously deliberate when formulating the compensation strategy as it directly links with the performance of employees which will finally be deciphered into better delivery of services.


Keywords


Salary, bonus, employee recognition, flexible working hours, task performance.

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References


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