Academic journal article European Research Studies

The Role of Shared Leadership and Work Environment in Strengthening the Influence of Compensation on Nurse's Performance

Academic journal article European Research Studies

The Role of Shared Leadership and Work Environment in Strengthening the Influence of Compensation on Nurse's Performance

Article excerpt

1. Introduction

Selecting a job is not merely based on the compensation that people will get, but sometimes there is something beyond it. As for some nurses, the basic reason of being the nurses might be due to the short distance between their home and the work place. It means it is not because they will get more salary. This phenomenon is different from the most common reality that more salary people get, more performance they will show. However, this assumption needs to be examined further by conducting a research to disclose whether the compensation influences the nurse's performance.

The results of previous empirical studies show the inconsistency results of the influence of the compensation on the nurse's performance. Some researchers found that the compensation positively influence the nurse's performance, whereas others show that there is no influence of the compensation on the nurse's performance. These inconsistency results lead to a further research which adds the work environment variable and shared leadership as the moderating variable.

Work environment and shared leadership are selected as the solution to overcome the inconsistency result of the previous studies. In addition, the work environment and shared leadership are still rarely used as the moderating variable of the compensation and performance. Therefore, this study aims at disclosing whether work environment strengthen the influence of compensation on the performance, and also finding out whether the shared indicator strengthen the employee's performance.

2. Literature, Hypotheses, and Framework

2.1. Compensation and Nurse's Performance

There are four keys that make the employee compensation management success which are: (1) providing health quality maintenance; (2) maintaining work productivity by keeping the employees working on-track, (3) giving more priority on employee's satisfaction, (4) controlling the cost (Guzik et al., 1999). According to Gupta and Shaw (2013) that compensation system is important and interesting. Nevertheless, there are some debates on the study concerning employee's compensation including: (1) compensation becomes one of reasons of the crucial effects on human capital's quality and effectiveness; (2) based on psychological point of view, compensation has an effect on the employee's behaviour and attitude; (3) some of compensation's decision are not expensive.

The development on the compensation study runs dynamically. The influence of the compensation variable, both non-executive and executive, on the performance has positive effects as stated by Feng et al. (2015). Compensation, both performance-based compensation, compensation based on individual performance, and a strong team identity, positively affects the performance (Blazovich, 2013). Shin-Rong et al. (2012) who state that the compensation made by director economically has a positive effect on the market performance and company support this finding.

A study conducted by Vandersteegen et al. (2014) on 34 OECD developed countries, which has become the members of OECD in between 1970-2001 shows that the compensation decrease the maintenance cost by 0.11%. Meanwhile, another research concerning the influence of the compensation on employee's performance states that the quality of the compensation is influenced by: (1) the quality of the people who apply, (2) the quality of those hired, (3) the likelihood of job acceptance, (4) the motivation and performance level of the workforce, and (5) the quality of who stays with the company (Gupta and Shaw, 2014).

Brown et al. (2016) state that "We further find that the relation between task difficulty and compensation plan selection is fully mediated by participants' assessments of their relative skill". This research used the web-based software in the computer library by involving 148 undergraduate students from public university. Whereas, based on Onishi's research (2013), he states that the compensation in form of revenue-based compensation plans can increase the patent/copyright numbers. …

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