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The Effect of Remuneration Equity on Organizational Trust and Job Satisfaction of Fire Officials - A Case of Performance-based Salary System for Assistant Fire Chiefs -

  • Crisisonomy
  • Abbr : KRCEM
  • 2020, 16(10), pp.45-59
  • DOI : 10.14251/crisisonomy.2020.16.10.45
  • Publisher : Crisis and Emergency Management: Theory and Praxis
  • Research Area : Social Science > Public Policy > Public Policy in general
  • Received : October 6, 2020
  • Accepted : October 8, 2020
  • Published : October 31, 2020

Chang Gil Kim 1

1

Accredited

ABSTRACT

This study analyzed how a performance-based annual salary system influences employees’ organizational trust and job satisfaction by applying the organizational equity theory to the salary system of fire officials in South Korea. The study method involves survey for the subjects as well as interviews to draw implications. The results of this study showed that wage equity, including distribution equity, process equity and interactive equity, affects both organizational trust and job satisfaction. This suggested that managerial effort is required to improve organizational trust and job satisfaction by developing the performance-based salary system rather than the seniority-based salary system. In addition, it is found that firefighting organizations should focus on fostering environments where the payment range of performance-based salary system can be annually enlarged and the discretionary authority of implementing agency can be gradually expanded, which is vital to achieve the eventual goal of a performance-based annual salary system.

Citation status

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