The relationship between perceived pay equity, productivity, and organizational commitment for US professionals of color

Summary

The research paper by Buttner and Lowe (2017), titled "The relationship between perceived pay equity, productivity, and organizational commitment for US professionals of color," investigates the multifaceted influence of perceived pay equity on organizational commitment (OC) among US scholars of color. The study aimed to understand the direct effect of perceived pay equity, its interaction with productivity, and the distinct roles of perceived internal and external pay equity in shaping OC. For its methodology, the study employed a survey approach, collecting data from 160 professionals, specifically scholars of color within US business schools. To test their hypotheses regarding these relationships, the researchers utilized correlation and hierarchical regression analyses. The findings revealed that perceived pay equity directly influenced organizational commitment. More significantly, the study uncovered an interactive effect between perceived pay equity and scholarly productivity on commitment. Highly productive participants reported the highest levels of organizational commitment when they perceived their pay to be equitable. Conversely, when pay was viewed as inequitable, the most productive scholars exhibited the lowest levels of commitment to their institutions. Furthermore, the research indicated that perceived internal pay equity had a stronger effect on commitment compared to perceived external pay equity, with post hoc analysis confirming that only internal pay equity interacted with productivity to affect commitment. These findings carry important implications for organizations, particularly for supervisors of minority scholars. The results suggest that managers should be proactive in addressing and explaining pay differences to enhance perceptions of pay equity, especially for their most productive professionals of color, who appear to be particularly sensitive to these equity perceptions. The study contributes to existing equity and relative deprivation theory research by examining these specific dynamics within a crucial demographic. While the research offers valuable insights, its limitations include being conducted within a single industry (higher education) in the USA, suggesting caution when generalizing the results. Additionally, the reliance on single-source and cross-sectional data, though consistent with prior research, warrants consideration.