DOES COMPENSATION INFLUENCE THE PERFORMANCE OF ORGANIZATIONS IN MALAYSIA?

Abstract

Compensation is one of the relevant topics to be discussed in many organizations either in Malaysia or other countries. Presently, the compensation issue increasingly catches the interest of academics, employers, employees, and also organizations in Malaysia. This study was conducted to examine the influence of compensation to the employees and their performance to achieve the organization's goal. Due to high pressure was living cost and high risk when they are doing their works in the organizations, then they have to be more secured, either with the safety or wages. Over the past year, there is an attempt by many organizations today to identify innovative compensation strategies that are directly linked to improving organizational performance as well as work performance. This paper aims to review how compensation influences the work performance and the effect comes from the extraordinary growth of information and communication technologies (ICT), compensation has been recently proposed to indicate the integration of ICT purposely to support the traditional participatory process. However, this paper will discuss the implications of compensation in the organization in Malaysia and discusses the experience’s views too. Although this study already discussed the implications and experiences by the compensation, we hope that Malaysian can provide useful insight, knowledge, and understanding from the employer to the employees where there had no problem created by them. Toward the end of this paper, a conceptual framework will be offered. Based on the discussion on related empirical review, the compensation factors are proposed to have significant influences on work performance in the organization in Malaysia. In the future, we hope that future studies would focus on other discussions of compensation factors or reward satisfaction. Therefore, future research should be alert on how to make sure this issue is not getting worst but be more effective and comprehensive to implement to the next generations.