Impact of Compensation Systems Attributes on Teacher's Performance with Associated Variables in Universities of Pakistan

Abstract

This study evaluates how compensation system attributes (CSAs), affect the performance of teachers serving in universities in Pakistan through the lens of social exchange theory, which is an over-arching theory used for the current study. Teachers’ performance (TP), and its relationship with the four CSAs (e.g., pay increase policy, pay levels and mix) have been described in this research. The idea is to apply a methodological approach to determine the role of psychological capital (PsyCap) and psychological contract fulfilment (PCF) as mediators and the role of the social capital (SC) as a moderator. In this regard, a nationwide survey of 608 teachers from 52 higher education institutes in Pakistan was conducted using a simple random sampling technique. Survey responses were compiled and analysed using quantitative research methods, including correlation, regression and PROCESS, to check for mediation and moderation. This study reveals that the CSAs positively impact TP. The results also confirm that SC serves as a moderator between the CSAs and TP. The study also suggests that PsyCap and PCF positively mediate the link between CSAs and TP. The findings of this research are fairly aligned with the conclusions drawn under earlier research performed in other areas. PCF is observed to be a strong mediator. However, the partial mediation of PsyCap in relation to the CSAs and TP may be attributable to a lack of adequate focus on its development at the leadership level as well as individuals linking hope, confidence, and resilience to spiritual beliefs, thus making it relatively indifferent with respect to CSAs. Apart from bridging the literature gap in the context of establishing linkage of PCF, PsyCap and SC with TP, this study also provides practical guidelines and suggestions for the policy and decision makers in HEIs by mainly pointing towards existing compensation restructuring with a consequential improvement in TP.