Perception of pay equity in Public Universities in Ghana: Effect on individual performance and work behavior

Summary

This research paper, "Perception of Pay Equity in Public Universities in Ghana: Effect on Individual Performance and Work Behavior" by Sanséau and Opoku (2019), aimed to explore the critical relationship between perceived pay equity and individual job performance among lecturers in Ghana's public universities. Grounded in equity theory, which posits that individuals strive to restore fairness when perceiving inequity, the study highlights the importance of fair compensation perceptions in shaping employee attitudes and behaviors. The context of Ghana's public sector, marked by historical pay disparities and subsequent reform efforts, underscores the relevance of examining pay equity within its educational institutions. The methodology employed a survey administered to 313 lecturers in public universities across Ghana. The researchers collected data on lecturers' perceptions of pay equity and their individual job performance and work motivation. Statistical analysis was then conducted to determine the nature and strength of the relationship between these variables. The findings revealed a statistically significant positive relationship between perceived pay equity and individual job performance, with a correlation coefficient (r) of 0.573 (p=0.000). This indicates that as lecturers' perception of equity in their pay system increases, their job performance also tends to increase. Furthermore, perceived pay equity was found to explain approximately 33% of the variation in individual job performance. The study also established a close relationship between perceived pay equity and work motivation, with a correlation coefficient (r) of 0.680 (p=0.000), explaining about 46% of the variation in work motivation, suggesting that higher perceived equity leads to greater motivation. The implications of these findings are substantial for public university administration and human resource management in Ghana. The research underscores that employees' perception of fairness in the pay system is a significant determinant of their job performance and work motivation. Therefore, the authors recommend that managers in public universities must pay close attention to the principles of equity when designing and implementing pay systems. Beyond mere design, transparent and careful communication of all aspects related to the reward system is crucial to prevent unnecessary perceptions of inequity among employees. By fostering a sense of pay fairness, universities can potentially boost lecturer morale, enhance their overall job performance, and positively influence their work behaviors, ultimately contributing to the effectiveness and success of the institutions.