Felt Fair Pay of Small to Medium Sized Enterprise (Sme) Owners in Finland and Latvia: An Examination of Jaques' Equity Construct
Year: 2005
Type: preprint
Study design: Observational Study
Abstract: Pay satisfaction has gained popularity in business literature, especially in the arena of organizational research.While two major models of pay satisfaction exist, the theory of equitable payment developed by Jaques, has been largely ignored by researchers.Jaques' theory postulates that individuals have an intuitive knowledge of 1) their capacity for work, 2) the level of their work in terms of responsibility and performance, and 3) the appropriateness of their pay. This study seeks to determine if Jaques' equity theory accurately predicts who is satisfied or unsatisfied with their respective pay level among business owners in Finland and Latvia. In Finland, 182 small to medium sized enterprise (SME) owners are sampled, while in Latvia, 210 SME owners are sampled.The data is analyzed using both t-tests and multivariate analysis. The findings indicate that Jaques' equity theory accurately predicts who is satisfied or unsatisfied with their pay levels.The MANOVA findings further indicate that Jaques' theory describes more of the variance in pay satisfaction than does their actual salaries.Areas for future research are discussed.(AKP)
Source: SSRN Electronic Journal
Authors: Shawn M. Carraher, Sarah C. Carraher
Institution: Cameron University
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2000281595