The Effects of Replacement Incentives on Employee’s Job Satisfaction,Organizational Commitment and Turnover Intention in Expensing Employee Stock Bonus: The Case of High-Tech Industries

• Main Authors: Kuo, Fen-Fang, 郭芬芳
• Other Authors: Wang, Yau-De
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/80424287307985508361

碩士 === 國立交通大學 === 管理學院管理科學學程 === 99 === In the study of the effects of various pay-for-performance incentives, profit sharing deserves more attention. Previous studies in the literature have found that firms with profit sharing incentive systems generally outperformed and grew faster than the firms that lacked of such systems. Some studies showed that profit sharing can enhance productivity, improve job satisfaction, and reduce turnover rate in employees. Non-expensed, organization-wide stock award has become a most popular corporate incentive practice in the high-tech industries in Taiwan. However, the amendment on the Article 64 of the Business Accounting Law requires corporations to recognize stock award and other bonuses given to their employees as an expense item and to measure them by fair their market values. This amendment has brought a great impact on Taiwanese high-tech industries which had been treating stock award as a non-expense item. The purpose of the present study is to find out the effects of other incentive systems that have been used as a replacement for stock award after the amendment of Article 64 on employees’ job satisfaction, organizational commitment, and turnover intention. The findings of the study showed that the replacement practices, merit pay, and cash award for performance had a positive effect on employees’ job satisfaction and organizational commitment and a negative effect on their turnover intentions. In addition, age was found to moderate the effect of merit pay and position moderated the effect of stock option.