The influence of total compensation management affects on employee motivation, employee commitment and employee performance : a case study of Royal Thai Army

Abstract

The aim of this dissertation is to examine the relationship of total compensation management, employee motivation, employee commitment and employee performance. The objectives of this study are as follows: first, to determine the relationship of TCM (cash compensation and benefits), employee motivation (expectancy, instrumentally, valence, equity) employee commitment (affective, normative, continuous) and employee performance (task, contextual, adaptive, counter-productive performance) within the Royal Thai Army (RTA); second, to identify the relationship of these variables in TCM (cash compensation and benefits), employee motivation, employee commitment and employee performance within RTA; and finally, to testing a proposed model to explain the relationship between TCM (cash composition: base pay (wage), cost of living pay, merit pay, incentives and additional payment, benefits, income protection, allowances and work life balance), employee motivation (expectancy, instrumentally, valence, equity) employee commitment (affective, normative, continuous) and employee performance (task, contextual, adaptive, counter-productive performance) through an empirical examination.

The population of this research is of military officers in RTA organizations. The sample for the opinion survey is of both commissioned officers (CO) and noncommissioned officers (NCO); totaling 400 participants. The quantitative analysis applies the questionnaire for reliability tests on Cronbach’s alpha coefficient using both descriptive and inferential statistics, multiple regression and path analysis from the equation model, and structural equation modeling (SEM), AMOS version 22 to identify the model. In addition, in supporting the study output as quantitatively, the qualitatively conducted via the in-depth interview, the relevant and non-relevant factors pertaining to total compensation management, employee motivation, employee commitment and employee performance had been listed and analyzed using Atlas.ti software. Interviewed specialist targets were divided into two groups of top executives, namely 1) Ministry of Defense Representatives and 2) Royal Thai Army Representatives.

The conclusion was made that the relationship between total compensation management in benefits, employee motivation, and employee commitment on employee performance are significant for military officers with in the RTA organization, but not significant between total compensation management in cash compensation with employee performance and employee commitment and employee motivation.

It was shown from the results of path analysis that total compensation management in benefits has a direct effect on employee commitment, employee motivation and employee performance, and has an indirect effect through employee commitment and employee motivation. On the other side, total compensation management in cash compensation does not have direct effects on employee performance, but has an indirect effect through employee commitment and employee motivation. As these relationships are developed from the causal relationship among variables, focusing on them will result in RTA Organizations being able to significantly improve the outcomes of their employee performance.

Moreover, this research provides a basic view of guidelines and frameworks that effectively fit with the RTA model. It also offers the impetus for the proposed model that allows for the planning of RTA, design, and implementation on the total compensation management, employee motivation, employee commitment, and employee performance. By analyzing the concepts and theoretical framework of these issues, it may offer the context of the broader structural initiatives for RTA development, as well as the public administration recommendations for RTA study in the future.