Presentation and Validation of Compensation Model with Productivity Approach (Case Study: Bank Melli Iran)

Subject Areas : Strategic Management Researches

Mohsen Mohammadbagheri ¹ , akbar etebarian khorasgani ² , Faezeh Taghipour ³

1 - PhD Student, Public Administration (Human Resources), Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran
2 - Associate Professor of Public Administration, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran
3 - Associate Professor of Public Administration, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran

Received: 2020-08-18 Accepted : 2020-10-05 Published : 2021-08-23

Keywords: Productivity, compensation, Bank Melli Iran, Grounded Theory,

Abstract :

The compensation model should be developed in a way that causes motivation and satisfaction in employees and finally promotes their productivity. Therefore, this study aims to present and validate a compensation model with a productivity approach in Bank Melli Iran. In the qualitative section, in-depth interviews were performed with 17 experts and banking managers and 5 university professors who were experts in human resources management to reach theoretical saturation, and the findings were encoded and categorized and causal conditions, contextual conditions, intervening conditions, strategies, and consequences identified and finally led to the compensation model with a productivity approach. In the quantitative section, the sample size was defined as per the “10-times rule" and questionnaires were prepared based on the findings in the qualitative section, and distributed then obtained data were analyzed and the validity of the model was confirmed by using Smart_PLS-3-2-8 software and analyzing composite reliability, average variance extracted (AVE), discriminant validity, predictive relevance (Q2), coefficient of determination (R2), and internal consistency indices. Applying this model not only promotes employee productivity but also creates a growing and dynamic organizational culture, organizational reputation, quality enhancement, organizational belonging and loyalty, synergy, and Employees' affiliation and leads to a better understanding of managers and planners from the relationship between productivity criteria and compensation criteria, especially in the banking network.

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