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Analysis using
Demographic factors, SEM
compensation, job satisfaction and
organizational commitment in
private university: an analysis
using SEM Received 20 January 2020
Revised 30 May 2020
8 July 2020
Mohammad Ali Ashraf Accepted 30 July 2020
Department of Economics, School of Business and Economics,
United International University, Dhaka, Bangladesh

Abstract
Purpose – The purpose of this paper is to examine the direct and indirect effects of demographic factors on
employee compensation, job satisfaction and organizational commitment in private higher educational
institutes in Bangladesh. Specifically, how do compensation structure and job satisfaction mediate in the link
between demographic factors and organizational commitment? To answer this question, a theoretical
framework using the theory of employee retention provided by Martin and Kaufman, as its basis was
established.
Design/methodology/approach – Data (n = 515) were collected from faculty members of the private
universities in Bangladesh. Structural equation modeling was used to analyze the data.
Findings – Findings indicate that though demographic factors have no direct impact on organizational
commitment, they have indirect impacts on organizational commitment through the mediation of
compensation structure and faculty job satisfaction. Besides, compensation structure also has a
significant mediating role in the link between demographic structure and faculty job satisfaction.
Research limitations/implications – One possible drawback is the number of private universities
from which the data were collected. In the sample used here, only 20 private universities were selected
to conduct the survey. Besides, the study could not include public universities that are also a
significant part and parcel of higher education in the country. So, if more private and public
universities were taken into consideration to collect the data, the results might be improved. Thus, the
usual cautions about overgeneralizing findings from this sample, to populations for which it is not
strictly representative, apply.
Practical implications – From a practical perspective, as a cumulative body of work on organizational
commitment, we will be better able to advise policymakers and educators on the elements they need to
address to increase the longer engagement of the faculty members in their institutes. In this study, the one
area of findings that may help policymakers and educators the most concerns compensation package that
affects job satisfaction and organizational commitment. We found that demographic factors and
compensation packages are the most important factors for the faculty members to impact on organizational
commitment in this study.
Social implications – The social implication is that policymakers of the private universities can focus on
fair justice in terms of demographic factors and compensation package for job satisfaction, motivation and
organizational commitment of the faculty members in their universities.
Originality/value – The findings of the study are important for the policymakers of the higher education
institutes.
Keywords Demographic factors, Compensation, Job satisfaction, Organizational commitment,
Journal of Global Responsibility
Diversity © Emerald Publishing Limited
2041-2568
Paper type Research paper DOI 10.1108/JGR-01-2020-0010
JGR Introduction
Organizations consist of a group of people who work together in an organized way for a shared
purpose (Cambridge Dictionary, 2020). So, organizations need workers who are psychologically
attached to their work, both now and in the future (Bakker et al., 2011). However, the nature of
both work and organization has been in flux because of several issues such as technological
innovations, demographic factors (e.g. gender issues), family issues (e.g. work–life balance),
compensation, psychological and health concerns (Visanh and Xu, 2018; Pradhan, 2016; Saha,
2016). So, in this changing work and organizational environment, it is important to study how
workers’ attachments or bonds with work develop (van Rossenberg et al., 2018). There are
several workplace bonds that workers can develop and one of them is specified as commitment
(Klein et al., 2012). In light of these developments, organizational commitment is still significant
to study (van Rossenberg et al., 2018).
Besides, studying organizational commitment is particularly important in the context of
private universities in Bangladesh, where more than hundred private universities are
currently in operation (Joarder et al., 2020) and their faculty turnover intentions are
considerably high (Ashraf, 2019; Jahangir, 2011; Jalil, 2009). For this reason, enhancing
quality education in the private universities in Bangladesh has been remaining a crucial
issue since its establishment in the early 1990s (Osman et al., 2020). Several empirical
investigations report that job switching is comparatively higher in the private universities
than the public universities in Bangladesh because of poor human resource management
(HRM) practices such as inequitable compensation structure, lack of proper supervision and
evaluation absence of proper training and development (T&D), lack of job autonomy, etc.
(Joarder et al., 2020; Jahangir, 2011; Jalil, 2009), as well as psychological factors such as job
dissatisfaction and lack of organizational commitment (Sabiu et al., 2016). Because of the
poor HRM practices, psychological factors arise (Joarder, 2012). For example, if employees
suffer from the lack of adequate job satisfaction, then employee’s commitment to work and
organization becomes weak and fragile and finally, the employees tend to quit the job to
have better opportunities in other organizations (Chan and Ao, 2018; Sabiu et al., 2016). For
this reason, several research initiatives identified adequate job satisfaction as an important
factor of organizational commitment that is responsible for affecting employee performance,
productivity and profitability of the organization as well (Syahreza et al., 2017; Saha, 2016;
Gangai and Agrawal, 2015; Mustapha and Zakaria, 2013; Kim, 2012).
There has been a bunch of research that explores the influence of HRM practices on job
satisfaction and organizational commitment in both secondary and service sectors
(Devonish, 2018; Hao et al., 2016; Chang et al., 2016; Moritz, 2014; Saleem and Saleem, 2014;
Meisler, 2014). However, many research papers focus on demographic aspects or personal
factors that are also responsible for influencing organizational commitment in
manufacturing, banking and military profession (Visanh and Xu, 2018; Saha, 2016; Booth-
Kewley et al., 2017). Few empirical studies also exist in this domain, which explored to
examine the effect of only gender on job satisfaction and organizational commitment (Hao
et al., 2016; Chang et al., 2016; Thomas and Nagalingappa, 2012).
There are several studies that examined the mediating influence of job satisfaction in the
relationship between demographic characteristics (e.g. gender, race and ethnicity) and
organizational commitment in the manufacturing sector (Chan and Ao, 2018; Saha, 2016;
Mustapha and Zakaria, 2013; Saeed et al., 2013). Empirical evidence also shows that different
demographic factors impact on employee pay level, which in turn influences employee
commitment (Saha, 2016; Kuvaas, 2006). Thus, it is relevant to presume that the compensation
may have a mediating influence on the link between demographic factors and employee
commitment with work and organization. However, it is notable that none of these studies have
examined the particular mediating influence of compensation structure and job satisfaction and in Analysis using
the link between composite demographic factors and organizational commitment, especially in the SEM
private higher educational institutes in an emerging socioeconomic context such as Bangladesh.
The purpose of this paper is, therefore, to examine the direct and indirect effects of
demographic factors on employee compensation, job satisfaction and organizational
commitment in private higher educational institutes in Bangladesh. Specifically, how do
compensation structure and job satisfaction mediate in the link between demographic
factors and organizational commitment? To answer this question, a theoretical framework
using the theory of employee retention provided by Martin and Kaufman (2013) as its basis
was established. Using measurement scales created to assess different aspects of the
aforementioned constructs as well as demographic variables, a survey instrument was
developed to test the various relationships implied by the model. Data were collected from
the faculty members of various private universities across Bangladesh during the last 2018
holiday season and the analysis of this set of data helps answer questions about the
relationship between demographic profiles and human resource constructs.
Understanding of these relationships is important for policymakers and educators who want
to reduce turnover intentions of faculty members and to retain them in teaching and research in
their educational organizations for a long period of time. This article understands organizational
commitment as the influence of an employee’s identification and engagement with a certain
organization (Nazir et al., 2016; Moritz, 2014; Newman et al., 2011). Typically, such processes are
enacted through the launching of proper HRM practices such as compensation package and job
satisfaction (He et al., 2011; Miao et al., 2013; Newman and Sheikh, 2012a, 2012b).
The plan for this paper is as follows: first, the theoretical framework provided by Martin
and Kaufman (2013) is briefly reviewed. Next, the research model and hypotheses are
presented, followed by a discussion of the research method and findings from the data
analysis. A discussion of the meaning of the results and their implications ends the paper.

Theory and past research


Martin and Kaufman (2013) were to advance a theoretical model about the antecedents of
employee intentions to quit (Figure 1). In their model, they draw on Maslow’s Hierarchy of
Needs Theory, McGregor’s Theory X and Theory Y and Herzberg’s Two-Factor Theory

Figure 1.
Martin and Kaufman
model
JGR (Robbins and Judge, 2007). This model was surveyed and tested based on Spector’s (1985)
job satisfaction survey, Mowday et al. (1979) organizational commitment questionnaire and
Landau and Hammer’s (1986) intent to quit measures. At the heart of the model are the
individual’s job satisfaction and organizational commitment that produce motivation either
to stay in the organization or quit from the organization. This motivation is produced
originally by human resource practices such as pay, supervision and working condition.
This theoretical model advanced by Martin and Kaufman (2013) consists of three major
components that lead an employee of an organization to intend to quit such as HRM
practices, some psychological factors and outcome variables. In the theory, the HRM
practices are identified as the key predictors of job satisfaction and organizational
commitment, which in turn induce an employee either to intend to stay or quit (Sabiu et al.,
2016; Rubel and Kee, 2015). The specific HRM practices are specified as recruitment and
hiring, T&D, compensation and benefits and evaluation and supervision. To address these
issues, organizational leaders need to be aware of the needs and environmental
circumstances surrounding their employees (Martin and Kaufman, 2013). For example,
recruitment and hiring is an important task, because person–organization-fit or poor-fit
between the employee and the job can enhance negative motivation that can produce
employee dissatisfaction and low commitment to the work and organization (Whitener,
2001). Similarly, non-competitive compensation, inadequate training and poor supervision
can produce high stress in the mind of an employee that ultimately leads to job
dissatisfaction and negative employee commitment to the work and organization (Martin
and Kaufman, 2013).
At the center of the theory remain the psychological factors that are identified as job
satisfaction and organizational commitment. Research has shown that commitment to the
organization and job satisfaction are important contributors to employee retention and
reduced intent to quit (Joarder, 2012). Organizational commitment has been defined as a
psychological link between the employee and the employing organization that makes it less
likely that the employee will voluntarily leave the organization (Allen and Meyer, 1996).
The outcome variable is specified as either to stay or to quit. In fact, employee turnover is
costly for any organization. Taking into account both the direct and indirect costs of
employee turnover, the minimum costs equate to one year’s pay and benefits (Ramlall, 2004).
If human practices may have been taken for granted in the past, professionals may call for
more guidance practices that can reduce employees’ intent to quit. Thus, there is a
continuing need to study the factors associated with employee turnover in the organization
(Ramlall, 2004).
Martin and Kaufman’s (2013) theory has been tested in extensive organizational
research. However, Kautonen et al. (2015) found employee intentions to be a robust predictor
of quit behavior though they used different research models in their study. Work motivation
is understood as a set of energetic forces that originate both within as well as beyond an
individual’s being, to initiate work-related behavior, and to determine its form, direction,
intensity and duration (Martin and Kaufman, 2013; Pinder, 2008). If an organization invests
time, money and other resources into employees who are not motivated to learn their job or
perform the functions expected of them, that investment is wasted (Martin and Kaufman,
2013; Latham, 2007). The model given by Martin and Kaufman (2013) stipulates that
intentions are predicted by a person’s job satisfaction and organizational commitment,
which are influenced by human resource practices such as compensation and benefits.
Those practices produce motivation either in a positive or negative way that affects job
satisfaction and organizational commitment and based on these two types of mental
conditions employees of any organization generally take the decision whether they will stay
or quit (Martin and Kaufman, 2013). As many general theories and models, the present Analysis using
model also can allow by and large any particular exogenous variables that are postulated to SEM
be associated with the endogenous variable, so determining those variables is left up to the
researcher. Based on this understanding, the present study has added demographic factors
as exogenous variables that can have impacts on compensation, job satisfaction as well as
on organizational commitment.
An underlying premise of the current study is that how compensation package and job
satisfaction mediate in the link between demographic information and organizational
commitment. Martin and Kaufman (2013) provide a robust theoretical basis for testing such
a premise, along with a framework for testing whether compensation and job satisfaction
are indeed related to organizational commitment. Based on the theory, compensation
package should have an effect on job satisfaction and organizational commitment directly or
indirectly. Finally, demographic profiles should also have impacts on all those constructs
such as compensation package, job satisfaction and organizational commitment.

Human resource practices


According to the model, there are several potential causes of turnover. Every now and then
the causes are linked to the human resource practices of the organization and can be
managed. These comprise such things as non-competitive compensation, high stress,
working conditions, monotony, poor supervision, the poor fit between the employee and the
job, inadequate training, poor communications and other organization practices (McKeown,
2010). To take care of these issues, organizational leaders require being aware of the needs
and environmental circumstances surrounding their employees (Martin and Kaufman,
2013). Most upper-level managers ponder retention of the best employees to be an important
part and parcel of their long term business strategy. Nevertheless, many business
organizations do not have a specific agenda in place to effectively retain their employees
(McKeown, 2010). The commitment of the organization, to the employee, can be expressed
through human resource practices and impact retention (Martin and Kaufman, 2013).
Drawing on high commitment human resource practices that affect employee commitment
Whitener (2001) refers: “staffing, developmental appraisal, competitive and equitable
compensation, and comprehensive training and development activities” (p. 517).
Considering the substantial costs associated with turnover, employers need to implement
human resource practices that reduce turnover as much as possible (Martin and Kaufman,
2013).

Demographic factors
The term demographic is often used interchangeably with demography that studies the human
population including population growth and social change. Demographic factors or variables
are the personal statistics that include such information as gender, age, marital status, family
size, occupation, educational level, linguistic background, income level, ownerships or
belongings, nationality, ethnicity, race, religion, location and so on (Cantiello et al., 2015). There
are many studies embodying demographic and perceptual variables and showed their
significant influences on the dependent variable of different types of organizational behaviors
such as compensation, job satisfaction and organizational commitment (Cantiello et al., 2015;
Robinson and Smith, 2002; Veira, 2008). Thus, it is timely and worthwhile to study the similar
issue of demographic identities and employee compensation in the developing area context in
the second decade of the new millennia for which job satisfaction and commitment may be
influenced. In the present study, demographic factors include gender, age, income level,
education, job tenure and designation.
JGR There have been a number of studies that focus on demographic factors and the different
aspects of HRM practices in the secondary and tertiary sectors of the economy (Booth-
Kewley et al., 2017; Eleswed and Mohammed, 2013; Hayes, 2015). There is, however, scanty
research that investigates specifically on demographic issues affecting compensation
structure and its simultaneous impact of mediating effect of job satisfaction in the link
between compensation package and organizational commitment particularly in the area of
the teaching profession. Hence, the present study may fill up the existing gap of research
that has inquired into the demographic topic relating compensation structure, job
satisfaction and organizational commitment in the academic field particularly in the case of
emerging private higher education sector in a developing country context.

Compensation structure
Compensation is the combination of all cash incentives and the mix of fringe benefits that an
employee receives from a company and it constitutes an individual employee’s total compensation
(Jeanette et al., 2013; Ashraf and Joarder, 2010; Tessema and Soeters, 2006). Compensation structure
includes items such as retirement, health insurance, life insurance, disability insurance, paid leave,
paid holidays, flexible scheduling, and educational assistance to name a few. These benefits have
been shown to bind an employee to the employing organization and result in a strong correlation
between compensation benefits and organizational commitment (Shaw et al., 2005). Compensation
can be categorized as intrinsic or extrinsic, financial or non-financial and direct or indirect benefits,
which influence job satisfaction and ultimately organizational commitment (Shortland, 2018).
Evidently, compensation has an important link between the rewards a company offers and those
individuals who are attracted to the compensation into working for the organization and those
employees who will continue the work for the business (Devonish, 2018). Generous rewards and
incentives tend to retain people because high rewards lead to enhanced job satisfaction,
organizational commitment and company loyalty (Ong et al., 2014).
Though several previous studies have investigated the determinants of compensation, the
structure of compensation is important to have a strong bearing on reducing costs of the company
management (Huo and Boxall, 2018; McDonough, 2002). Compensation structure can be classified
into three types of pay: job-based pay, skill-based pay and performance or competency-based pay.
The most common and traditional approach of compensation is referred to as job-based pay that is
determined by the degree of difficulty, responsibility and relative value of a job (Leritz, 2012),
whereas skill-based pay was determined by the employee’s skill and knowledge (Shaw et al., 2005).
Competency-based pay is a way of payment in which employees are paid for their demonstrated
performance or competencies and is determined by the employees’ output. In this regard,
Schoonover put forward that “competencies are those behaviors that excellent performers exhibit
much more consistently than average performers” (Schoonover, 2002, p. 3).
Huo and Boxall (2018) investigate the extent to which instrumental work values
influence the relationship between HR practices and employee well-being measured by job
satisfaction. The results show that work instrumentalism significantly reduces the positive
effect of training on job satisfaction while boosting the positive effect of remuneration on job
satisfaction. As mentioned earlier, there are legislations that aim at closing the gender gap
by the organizations and often ascribe penalty for such activities.
It may also lead employees to be dissatisfied with their jobs by exerting less effort, low
morale, increased absenteeism and finally leaving the organization (George, 2015; Usmani
and Jamal, 2013). In this relation, Ashraf and Joarder (2010) and Moritz (2014) report that in
practice, lack of job satisfaction and positive motivation in the workplace affects the spirit of
organizational commitment, which is the central issue in business organizations and their
future growth (Kumar et al., 2018).
Job satisfaction Analysis using
Locke (1976, p. 1,300) defines job satisfaction as, “a pleasurable or positive emotional state SEM
resulting from the appraisal of one’s job or job experience”. According to Mueller et al. (1994,
p. 128):
[. . .] when employees are both satisfied with their jobs and committed to the organization, the
bond with the organization will be strengthened and will result in greater cooperation and a
reduced likelihood of quitting.
Job satisfaction is related to an employee’s mindset toward a working environment that meets the
needs and values of employees and the individual’s response to that environment (Saha, 2016).
Job satisfaction and its influence on different organizational factors have been the prime focus of
the researchers since the inception of the scientific management approach that continues until
recent times (Hao et al., 2016; Moritz, 2014; Meisler, 2014; Lambert and Hogan, 2009).
Past studies that focused on the various aspects of job satisfaction are many such as the
effect of job satisfaction on organizational commitment (Saman, 2020; Bashir and Gani,
2019; Dalkrani and Dimitriadis, 2018; Valaei and Razaei, 2016; Fu and Deshpande, 2014), the
effect of compensation on job satisfaction (Mabaso and Dlamini, 2017; Nawab and Bhatti,
2011), the effect of compensation on organizational commitment (Suryani et al., 2019; Kee
et al., 2016; Reynoso and Ahmad, 2016) and the effect of demographic factors on job
satisfaction (Eleswed and Mohammed, 2013; Zaniboni et al., 2013). Job satisfaction is more
focused on the individual’s response to their job or to specific aspects of their job such as
pay, supervision and working conditions. Therefore, while job satisfaction has been shown
to be related to an employee’s thoughts of quitting, and human resource practices have been
found to be the best predictors of organizational commitment (Holtom et al., 2008;
Vandenberghe and Tremblay, 2008).

Organizational commitment
A single factor that may have an important role to play in employee connection is known as
organizational commitment. Numerous studies have been accomplished in the domain of
organizational commitment (Yusuf, 2018; Boon and Kalshoven, 2014; Meyer et al., 2013;
Zaleska and de Menezes, 2007). With respect to its different perspectives, the commitment
literature has passed a long way and is in the frontline of new ways of thinking and
conducting research, as evident in studies adopting a person-centered approach (Meyer and
Morin, 2016; Meyer et al., 2015) rather than a variable-centered (Meyer et al., 2013) and a
temporal approach (Solinger et al., 2015). The person-centered approach focuses on
employees’ personal profiles such as occupation, culture and organization and this approach
is much relevant to the present research as it counts on demographic characteristics of the
employees more rigorously. In a similar fashion of person-centered approach, Visanh and
Xu (2018) conduct an empirical study and reveal that besides other HRM variables, personal
factors such as gender, age, educational level, marital status, income per month and length
of employment have pivotal effects on organizational commitment.
In the past more than two decades, the most predominant perspective of commitment has been
focused by Meyer and Allen (1991) in their three-component model. In this model, commitment is
defined as “a force that binds an individual to a course of action of relevance to one or more
targets” (Meyer and Herscovitch, 2001, p. 301), with that force practiced as several sorts of
convictions – affective commitment (emotional “want to” or desire), normative commitment
(“ought to” or obligation) and continuance commitment (“have to” or cost; van Rossenberg et al.,
2018). However, Meyer et al. (2013) assert that these three types of commitment are embedded with
deeper insight and novelty in terms of retaining employees in the organization.
JGR Research has shown that affective commitment is an attachment categorized by
identification to and involvement in the target entity (Vandenberghe et al., 2004), which can
be an organization (Vandenberghe et al., 2004), supervisor (Siders et al., 2001) and
workgroup (Bishop and Scott, 2000). Continuous commitment has been referred to as the
willingness to remain in an organization because of the investment that the employee has
with nontransferable investments such as retirement, relationships with other employees or
things that are special to the organization (Meyer et al., 2013). It takes into account the costs
associated with leaving the organization, such as the time invested by the employee or
unfavorable economic conditions (Martin and Kaufman, 2013). Similarly, normative
commitment is described as a feeling of obligation to stay with an organization. This could
be related to societal expectations or family influences that have taught that one must be
loyal to their employer (Meyer et al., 2013; Martin and Kaufman, 2013).
Research evidence shows that organizational commitment can be also influenced by
different demographic factors such as by gender (Visanh and Xu, 2018; Eleswed and
Mohammed, 2013), age (Visanh and Xu, 2018; Booth-Kewley et al., 2017; Eleswed and
Mohammed, 2013), level of education (Visanh and Xu, 2018; Booth-Kewley et al., 2017;
Gonzalez et al., 2016), marital status (Visanh and Xu, 2018), job tenure (Booth-Kewley et al.,
2017; Eleswed and Mohammed, 2013) and monthly income (Visanh and Xu, 2018; Eleswed
and Mohammed, 2013).

Research model and hypotheses


The research model used in the study, shown in Figure 2, is based on the model provided by
Martin and Kaufman (2013) that is based on several previous human resources practices,
motivational, satisfaction and commitment theories. Research evidence suggests that
besides these factors, employees’ demographic issues are also important to determine their
commitment to work, job satisfaction, compensation and organization (Walsh and
Bartikowski, 2013). Zaniboni et al. (2013) emphasize that work outcomes (e.g. satisfaction
and commitment) can have varying effects at different periods in an employee’s lifetime
based on their personal characteristics such as age, gender, education, job tenure and
income. An employee’s age may influence the employee’s perceptions of satisfaction and
commitment (Lambert et al., 2012; Wren et al., 2014). In many cases, relatively younger
employees with higher education continuously search for better job opportunities and
older employees have a tendency not to look for other opportunities outside and choose to
remain employed with an organization (Wren et al., 2014). Thus, an employee’s age and

Compensation
Structure

H5
H2

Demographic Organizational
Factors H1 Commitment

H4
H3 H6

Figure 2. Job
Research model Satisfaction
education have an effect on the employee’s perceptions of satisfaction and commitment Analysis using
(Lambert et al., 2012; Wren et al., 2014). Similarly, the length of job tenure with an SEM
organization increases an employee’s firm-specific skills (Hofstetter and Cohen, 2014). In this
respect, Michel et al. (2013) expound that firm-specific skills are related to job satisfaction
and employee length of tenure. Equally likely, gender is another important demographic
factor that can have an impact on compensation, job satisfaction as well as employee
commitment (Botsford-Morgan and King, 2012). Researchers linked gender disparities to
personality traits and opportunities for promotion (Speck et al., 2012; Troutman et al., 2011).
So, an individual’s personality traits may turn into factors of considerations for analyzing
the employee’s response to stress or satisfaction. Furthermore, the level of income is also a
significant factor for satisfaction and employee commitment. Research evidence shows that
gender and income level are correlated and for some occupations, it is difficult to determine
equitable wage compensation (Rost and Weibel, 2013). Given the earlier discussion, this
article aims to test the determinants of organizational commitment by testing how the
antecedents identified by Martin and Kaufman (2013) and various demographic or personal
factors predict organizational commitment. Toward this end, a total of nine hypotheses are
developed.

Demographic factors
As a matter of fact, demographic factors are deemed to be a potential source of
injustice (Kumar et al., 2018; Ashraf and Dhar, 2014; Iqbal, 2013), which can be tracked
in terms of compensation and exertion of overall employees at work because of lack of
proper organizational justice (Ho et al., 2017). Prior evidence suggests that employees
in the work place are discriminated in different ways based on their demographic
identities such as gender, religion, race, education and so on (Kumar et al., 2018; Li
et al., 2018; Cuci et al., 2018; Gouldin, 2017). A considerable number of reports suggest
that there exists an immense inequality in Bangladesh as far as employment status is
concerned (Byron and Parvez, 2019; ADB, 2018; Ali, 2012; Ferdousi, 2012; Ferdaush
and Rahman, 2011).
Research evidence suggests that demographic discrimination in employment
compensation continues to be an active issue in HRM and practices (Moore and Tailby, 2015;
Graham et al., 2000). There have been a plethora of research papers addressing the race,
education and gender that have negative impacts on employee compensation (Loucopulos
et al., 2002; Graham et al., 2000; Giampetro-Meyer, 2000; Ashraf, 1996). Loucopulos et al.
(2002) and Ashraf (1996) explored the compensation differential in academia in the United
States based on gender and race and reveal that the influence of gender and race on
compensation is significantly negative. Giampetro-Meyer (2000) gives many examples of
current legal claims of the gender-based gap in employment compensation for coaches of the
sports team. This study also shows that there is a negative association between gender and
employee compensation in the sports sector. According to the empirical findings conducted
by Eleswed and Mohammed (2013), different demographic features such as gender, age, job
tenure, monthly earnings and education have a negative significant influence on job
satisfaction and organizational commitment. Similar evidence has also presented by Booth-
Kewley et al. (2017), which report that job tenure, education and age have a negative
association with organizational commitment. The result of the study done by Hayes (2015)
indicates that age has a negative influence on employee compensation. Gonzalez et al. (2016)
demonstrate that the level of education has a negative significant effect on organizational
commitment in Spain. Based on these empirical findings, the following hypotheses can, thus,
be formulated:
JGR H1. There is a negative association between demographic factors and organizational
commitment.
H2. There is a negative association between demographic factors and compensation
structure.
H3. There is a negative association between demographic factors and job satisfaction.

Compensation structure
As mentioned earlier, compensation is an important factor that enhances employee job
satisfaction in an organization. Providing compensation to employees must be reasonable
and fair because it can improve the ability of employees to increase work productivity as a
return to their work satisfaction (Kadarisman, 2016). There have been plenty of research
papers that conduct an association between compensation structure and employee job
satisfaction in different sectors of the economy (Saman, 2020; Neog and Barua, 2018;
Zainuddin, 2017: Shortland, 2018; Ong et al., 2014). Saman (2020) and Shortland (2018)
studied the effect of compensation on job satisfaction and employee performance in the
mining sector and oil and gas companies, respectively. The results of these studies indicate
that compensation structure has a significant positive relationship with job satisfaction.
Neog and Barua (2018) conduct their study among the employees of the automobile sector in
India and Zainuddin (2017) probes his experiment among the personnel of the Royal
Malaysian Naval forces and both the studies reveal the similar findings of a significant
positive association between compensation and job satisfaction. Ong et al. (2014) examined
the influence of monthly salary on job satisfaction of the fresh graduates and junior
employees employed in different companies in Malaysia and show a significant link
between them. Lien (2017) studied the job satisfaction of the faculty members in Vietnam
universities and showed that there is a significant positive relation between compensation
structure and job satisfaction. Similarly, Mabaso and Dlamini (2017) investigated the impact
of compensation and benefits on job satisfaction and found a significant positive association
between them in South African context. Thus, it can be postulated as follows:

H4. There is a positive association between compensation structure and job satisfaction.
There have been a number of empirical studies that examine the association between
compensation structure and organizational commitment (Kee et al., 2016; Reynoso and
Ahmad, 2016; Suryani et al., 2019; Nawab and Bhatti, 2011). Kee et al. (2016) and Reynoso
and Ahmad (2016) probe the relationship between financial compensation and
organizational commitment in the banking sector of Malaysia and Mexico, respectively. The
findings of both of the studies indicate that financial compensation has a strong positive
relation with the organizational commitment of the bankers in those two developing nations.
Suryani et al. (2019) examine the relationship between employee compensation and
organizational commitment in the small and medium-sized enterprises (SME) sector of Bali
Province in Indonesia and find a positive association between them. The study was done by
Nawab and Bhatti (2011) study the influence of employee compensation on organizational
commitment and job satisfaction in the academic sector of Pakistan. The results of the study
demonstrate that employee compensation and organizational commitment are positively
related. Thus, it can be hypothesized as follows:

H5. There is a positive association between compensation structure and organizational


commitment.
Job satisfaction Analysis using
Job satisfaction is an important component of an employee’s commitment to their employing SEM
organization (Martin and Kaufman, 2013). Nevertheless, job satisfaction is considered as a
specific job-related issue, whereas commitment is a more comprehensive response to an
organization (Bashir and Gani, 2019). So, job satisfaction is may be considered as a more
dynamic issue than organization commitment. In fact, both variables are immensely pivotal
that determines the direction of the employee mindset toward the organization. If the
employees’ mental persuasion toward their workplace is positive, it brings about positive
consequences in the form of performance and organizational productivity and the lack of
adequate job satisfaction may result in demotivation that will reduce organizational
commitment (Bashir and Gani, 2019; Eslami and Gharakhani, 2012).
Several research papers demonstrate that job satisfaction positively influences
organizational commitment in the non-academic context, such as telephone call centers (Zandi
et al., 2018), SMEs (Valaei and Razaei, 2016), manufacturing company (Yücel, 2012; Dalkrani
and Dimitriadis, 2018; Qureshi et al., 2011), civil aviation (Karim and Rehman, 2012), IT sector
(Shah et al., 2014) and insurance company (Fu and Deshpande, 2014) to name a few.
In an academic institute, the overall performance depends on the behaviors and attitudes
of a teacher who ought to be nurtured in a way by which teacher’s job satisfaction and
commitment can be enhanced (Bashir and Gani, 2019). Grace and Khalsa (2003) assert that
positive job satisfaction can enhance a teacher’s organizational commitment. The positive
and productive university environment leads to employees’ adequate job satisfaction (Anari,
2012) that, in turn, induces their organizational commitment and augments the output of the
universities (Sabri et al., 2011; Malik et al., 2010). Thus, the following hypothesis can be
formulated:

H6. There is a positive association between job satisfaction and organizational commitment.

Mediating hypotheses
Organizations deal with a large group of employees with differences in demographic profiles
such as age, gender, education, marital status, etc. (Metwally, 2016). Research evidence
suggests that different demographic variables influence the employee compensation
structure that ultimately affects employee commitment and organizational performance
(Bashir et al., 2011). Research evidence also reveals that demographic variables can have a
moderate level of influence on organizational commitment as well (Visanh and Xu, 2018).
These research outcomes indicate that compensation structure has a mediating relation
between demographic characteristics and organizational commitment. Unfortunately, with
an extensive search, no such study has been found in the academic, manufacturing and
service sector studying the mediating role of compensation in the link between demographic
factors and organizational commitment. Thus, it would be a basic contribution of the
present study that focuses on this mediatory role of compensation of the faculty members in
the context of the private higher education sector. Based on the literature review described
in the aforementioned sections, the study postulates following mediating hypotheses:

H7. Compensation structure has a mediating role in the link between demographic
factors and organizational commitment.
Research evidence demonstrates that the compensation structure has a significant positive
association with employee satisfaction (Saman, 2020; Huo and Boxall, 2018). Shrestha (2019),
Hayes (2015) and Eleswed and Mohammed (2013) suggest that different demographic
JGR factors have an influence on compensation as well as on job satisfaction. This evidence
implies that the compensation structure has a mediating role in the relationship between
demographic factors and job satisfaction. Despite an intensive search, any research evidence
is found to be unavailable that compensation can mediate between these two variables. This
initiative of the present study also can claim a fundamental addition of research values in
the HRM practices in the academic context. Thus, it can be postulated the mediating
hypothesis as:

H8. Compensation structure has a mediating role in the link between demographic
factors and job satisfaction.
Such as a mediating role of organizational commitment (Cao et al., 2020; Supartha et al.,
2018), there have been several empirical studies that show a mediating role of job
satisfaction (Devonish, 2018; Dinc, 2017; Valaei and Razaei, 2016; Saleem and Saleem, 2014)
between different HRM factors. However, any study conducting the mediating role of job
satisfaction between compensation structure and organizational commitment is sparse.
Meanwhile, there are a large number of studies that demonstrate a positive significant
relationship between job satisfaction and organizational commitment (Bashir and Gani,
2019; Zandi et al., 2018; Dalkrani and Dimitriadis, 2018; Valaei and Razaei, 2016; Shah et al.,
2014; Fu and Deshpande, 2014). Similarly, studies that reveal a positive significant direct
relation between compensation and organizational commitment are many (Suryani et al.,
2019; Kee et al., 2016; Reynoso and Ahmad, 2016). So, based on this evidence, a hypothesis
can be formulated following deductive reasoning that:

H9. Job satisfaction has a mediating role in the link between compensation structure
and organizational commitment.
Several research works are there to study the mediating effect of job satisfaction
between different HRM constructs such as Devonish (2018), Valaei and Razaei, 2016;
Saleem and Saleem (2014) and Lok and Crawford (2001). However, as far as the author’s
knowledge goes, there has been no such research evidence that investigates the
mediating influence of job satisfaction produced by demographic discrimination
linking compensation structure and organizational commitment. Previous research
evidence suggests that demographic factors may influence the job satisfaction
(Elsewed and Mohamed, 2013) and organizational commitment (Booth-Kewley et al.,
2017) as well as job satisfaction may also influence organizational commitment (Bashir
and Gani, 2019; Zandi et al., 2018; Shah et al., 2014). So, based on the deductive logical
arguments, job satisfaction may serve to be a transit variable through which the effect
of the demographic factors passes on to the organizational commitment of the
employees in the workplace. Thus, it can be hypothesized that:

H10. Job satisfaction has a mediating role in the link between demographic factors and
organizational commitment.

Study design
This study deployed a quantitative research design, utilizing a structured questionnaire.
The questionnaire formulated for this research consists of two sections with question –
statements adapted from previous studies. The first section of the questionnaire was based
on the question – statements that were used by Allen and Meyer (1990), Meyer et al. (2002),
Tessema and Soeters (2006), Lambert and Hogan (2009). Measures of faculty compensation
structure (10 items), job satisfaction (five) and organizational commitment (14) were based Analysis using
on instruments developed Tessema and Soeters (2006), Lambert and Hogan (2009) and SEM
Meyer et al. (2002), respectively. The second part comprised of questions pertaining to six
demographic variables included in the instrument (Table 1). With the exception of
demographic variables, multiple-item scales were used to measure the latent variables. Each
scale item used a seven-point Likert-type response format ranging from 1, “strongly
disagree” to 7, “strongly agree”.
Data collection took place in November and December 2018. To decide on the sample size
of the respondents for this study, the following formula for infinite population was used
provided by Cochran (1977): S = Z 2 * P * (1  P)/M2, where S = sample size for infinite
population, Z = Z-score (= 1.96 for 95% confidence interval), P = population proportion
(assumed to be 50% = 0.5), M = margin of error (assumed to 5% = 0.05), Then, sample size,
S = (1.96)2 (0.5) (1  0.5) / (0.05)2 = 384.16. Thus, any study that employs 384 or more
responses in data analysis can be regarded adequate.

Valid (%)

Gender
Male 69.0
Female 31.0
Age
20–25 35.1
26–30 24.9
31–35 16.3
36–40 15.7
41 and above 8.0
Education
Bachelor degree 10.2
Master degree 82.3
PhD 7.5
Designation
Lecturer 21.6
Senior lecturer 22.5
Assistant professor 47.2
Associate professor 4.5
Professor 4.2
Monthly income
10,000–30,000 3.1
30,001–40,000 22.7
40,001–50,000 22.7
50,001–60,000 22.7
60,001–80,000 10.6
Above 80,000 18.2
Tenure
Less than 1 year 21.2
1–2 years 15.2
2–5 years 27.5
5–10 years 33.3
More than 10 years 3.0
Table 1.
Source: Study survey Sample statistics
JGR A total of 550 faculty members were selected based on a random sampling procedure from
the list of twenty private universities in Bangladesh to complete a self-administered
questionnaire that contained measures of the constructs of concern. The study pondered to
contact a much greater number of respondents, because of having uncertainty to get all the
contact responses fully and timely. Quite unexpectedly, a total of 515 faculty members
(93%) of different private universities across Bangladesh completed their questionnaire
having filled them in properly. Among those 515 faculty members, 362 were male (70%) and
153 were female (30%). Few items of ball-point pens and writing pads were gifted to every
participant as an incentive to fill in the questionnaire.
As the study planned to collect data based on a self-administered procedure, it used drop-off
and collect approach. After the respondents (faculty members) completed answering the survey
questionnaire, the researcher collected it back (Hair et al., 2003; Zikmund, 2003). By doing so, it
allowed the respondents to answer the survey questionnaire conveniently at their own time.
This is because respondents would have time to reflect before indicating their response to each
question and seek additional information when needed (Hair et al., 2003).
The research model was analyzed employing structural equation modeling (SEM) technique
using AMOS software version 20 and SPSS version 16 (Hair et al., 2010). AMOS-SEM is a
statistical technique that is suitable for the simultaneous analysis of a large number of data in a
conceptual model. AMOS-SEM was employed in the HR research in the early 1980s (Bentler
and Bonett, 1980) and since become widely applied in HRM research (Laksana et al., 2018; Fu
and Deshpande, 2014; Fu et al., 2011; Samad and Selangor, 2005). The use of AMOS-SEM is
relevant and preferred in this research as it intended to predict an HR variable based on Hair
et al. (2010). The questionnaire was pilot-tested with a small number of faculty members.
Table 1 lists the demographic profiles of the respondents of the sample.

Results and discussion


Several past surveys have reported that employee compensation, job satisfaction and
organizational commitment are important motivational factors (Saman, 2020; Neog and Barua,
2018; Chan and Ao, 2018; Saha, 2016 and others), but none of these studies have investigated the
actual mediating associations between those constructs including demographic variables. This
study has demonstrated, at least for this sample, that in terms of direct influences, demographic
variables, compensation structure and job satisfaction are important to influence the
organizational commitment of the faculty members in the private universities in Bangladesh.
Table 2 presents the result obtained from the descriptive analysis. The mean value of all
the eleven latent variables ranges from 2.09 to 4.04 with the standard deviation ranging
from 0.50 to 0.64 on a seven-point Likert scale. The mean values of all the variables were
found to be above the midpoint 3.50 except demographic factors. Job satisfaction scored the
highest with a mean value of 4.04, whereas demographic factors showed the lowest mean
value at 2.09. The dispersion values reported through standard deviation indicates that the
highest value showed by organizational commitment at 0.64, and lowest value showed by
compensation structure at 0.50.

Construct n Minimum Maximum Mean SD Skewness Kurtosis

Demographic factors (DF) 515 1.17 3.17 2.09 0.57 0.08 0.97
Compensation structure (CS) 515 2.35 4.63 3.53 0.50 0.14 0.48
Table 2. Job satisfaction (JS) 515 1.80 4.99 4.04 0.63 1.22 2.55
Descriptive statistics Organizational commitment (OC) 515 1.78 4.98 3.62 0.64 0.63 0.90
Normality is the most fundamental assumption in multivariate analysis (Hair et al., 2010). Analysis using
To check for normality, four measures were used in this study to measure and assess the SEM
spread of data distribution: standard deviation, mean, skewness and kurtosis. In the present
study, all variables were tested for normality where the values of skewness and kurtosis
were particularly examined to test the scores of normality. The values of skewness and
kurtosis were also within the critical values. Hair et al. (2010) and Byrne (2010) argued that
data are considered to be normal if skewness is between 2 to þ2 and kurtosis is
between 7 to þ7. Hence, it was suggested that the absolute value of skewness and kurtosis
should not be greater than 3 and 7. Based on these recommendations the absolute values of
the skewness and kurtosis of all the items in this study are within the acceptable range of
less than 3 and less than 7, respectively, indicating the normality of the distribution of the
collected data in the sample. Hence, the possibility of issues surrounding non-normal
distribution appeared to be insignificant.
Table 3 shows the results of reliabilities, correlation coefficients and average variance
extracted (AVE). The Cronbach alpha (CA) values range from 0.78 to 0.93 and consistency
reliabilities range 0.70 to 0.92, which all are much above the threshold level of 0.70 (Hair
et al., 2010). Similarly, all the values of the AVE are above the minimum level of 0.50 (Hair
et al., 2010). Therefore, the measurement model’s convergent validity is acceptable. Table 3
also shows that the correlations are all highly positively significant among compensation,
satisfaction and commitment variables, but the correlations between demographic factors
and all three HR constructs are negative. These results are observed consistent with the
results obtained in the path diagram.
Table 4 and Figure 3 represent the results of factor loadings obtained by the exploratory
factor analysis (EFA) and the path diagram obtained by confirmatory factor analysis (CFA),
respectively. In Table 4, it is evident that all the factor loadings are not above the threshold
level of 0.50 (Hair et al., 2010). So, all those loading values less than 0.50 are excluded from
the model and run for CFA (Figure 3).
Figure 4 and Table 5 present the evaluated measurement model obtained by CFA
and standardized path coefficients for the direct effects of demographic factors,
compensation structure, and job satisfaction on organizational commitment. The
results show that though demographic factors had a significant negative influence on
compensation structure supporting (H2, p < 0.01), it had no significant influence on
organizational commitment and job satisfaction providing no support for H1 and H3. It
also demonstrates that demographic factors negatively influence organizational
commitment complying partially with H1. As would be expected from Martin and
Kaufman’s (2013) model, employee job satisfaction and compensation structure directly
affected organizational commitment providing support for H5 and H6. Besides, job
satisfaction had a significant effect on the compensation structure providing support
for H4.

Construct CA* CR** DF CS JS OC


Table 3.
Demographic factors (DF) 0.82 0.70 0.56 Reliabilities,
Compensation structure (CS) 0.78 0.85 0.15 0.54
Job satisfaction (JS) 0.85 0.90 0.11 0.54*** 0.55
correlations and
Organizational commitment (OC) 0.93 0.92 0.14 0.52*** 0.67*** 0.58 average variance
extracted (on
Notes: *Cronbach alpha; **Consistency reliability; ***Coefficients are significant at the 0.01 level diagonal in italics)
JGR Construct Loading

Demographic factors
Gender 0.35
Age 0.67
Education 0.44
Designation 0.85
Monthly income 0.95
Job tenure 0.61
Compensation structure
University provides satisfactory faculty salary 0.51
Current vacation and leave policy is reasonable 0.52
University has good welfare facilities (i.e. health insurance, provident fund, gratuity, etc.) 0.08
Festival bonus of the university is competitive 0.65
University’s extra-course payment policy is reasonable 0.58
University has a reasonable paid-study-leave policy 0.53
University provides skill-based salary allowance 0.52
University provides experience-based salary increment 0.56
University provides residence allowance 0.23
University provides transport allowance 0.20
Job satisfaction
I am satisfied with job specification 0.67
I feel self-esteemed resulting from teaching in this university 0.79
I receive regards from others in the university 0.72
My job status is socially recognized 0.68
I feel proud to teach in this university 0.82
Faculty commitment
It would be hard for me to leave my department right now, even if I wanted to 0.45
I feel obliged to remain with my current employer 0.76
I would be happy to spend the rest of my career with this department 0.79
Even if it were to my advantage, I feel not to leave my organization 0.80
I really feel as if this department’s problems are my own 0.90
I feel a strong sense of “belonging” to my department 0.85
I feel that I have too few options to consider leaving this department 0.58
I feel “emotionally attached” to this department 0.62
I would feel guilty if I left my organization now 0.76
I feel homely in my department 0.70
This organization deserves my loyalty 0.85
Table 4. If I had not put so much of myself, I might consider working elsewhere 0.17
Items and factor This department has a great deal of personal meaning for me 0.65
loadings (EFA) I owe a great deal to my organization 0.72

Table 6 exhibits the indirect or mediation effects of the compensation structure and job
satisfaction on the organizational commitment of the faculty members of private
universities in Bangladesh. The findings indicate that there was a full mediating effect of job
satisfaction in the link between compensation structure and organizational commitment, as
expected (H9). Besides this, the compensation structure had full mediations in the link
between demographic factors and organizational commitment as well as job satisfaction
providing full supports for H7 and H8. Job satisfaction also had a mediating effect in the
link between demographic factors and organizational commitment providing partial
support for H10. In short, respondents who believed that employee job satisfaction and
compensation structure are important to effect on organizational commitment of the faculty
members in the private universities in Bangladesh.
Analysis using
SEM

Figure 3.
Path analyses (CFA)

Table 7 embodies the goodness of fit index of the overall research model adapted based on
the theoretical background. The research employs three categories of fit indices such as
absolute, incremental and parsimonious fit to examine the model fit indications based
(Zainudin, 2012). According to Zainudin, if at least one of every category of model fit index
marked as bolded fall within the acceptable range, then the model satisfies the minimum
criteria of its goodness of fit. So, the goodness of model fit is ensured for this research.
These findings are similar to those reported in other studies. Such as Kumar et al. (2018),
Li et al. (2018), Cuci et al. (2018), Szymanska and Rubin (2018), Gouldin (2017), Ashraf and
Joarder (2010), Smith (2002), Lok and Crawford (2004) and Lok and Crawford (2001),
compensation structure has a strong relationship with job satisfaction. Such as Huo and
Boxall (2018), Devonish (2018), Shortland (2018), and Loucopulos et al. (2002), job
satisfaction has a similarly strong relationship with the commitment variable of the model.
Such as Loucopulos et al. (2002), there is a mediating influence of job satisfaction in the
JGR Compensation
Structure

0.14*
–0.32***

Demographic Organizational
–0.04
Factors Commitment

0.66***
0.10 0.64***

Job
Satisfaction
Figure 4.
Evaluated model
Notes: ***Significant at p < 0.01; *Significant at p < 0.10

Direct effect Std.


H Endogenous Exogenous estimate S.E. C.R. p-value Status

H1 Organizational / Demographic factors 0.04 0.070 1.050 0.453 Not


commitment significant
H2 Compensation / Demographic factors 0.32 0.065 3.154 *** Significant
structure
H3 Job satisfaction / Demographic factors 0.10 0.950 1.142 0.248 Not
significant
H4 Job satisfaction / Compensation 0.66 0.127 5.315 *** Significant
structure
Table 5. H5 Organizational / Compensation 0.14 0.031 2.302 0.081 Significant
commitment structure
Standardized path H6 Organizational / Job satisfaction 0.64 0.121 5.272 *** Significant
coefficients for commitment
hypothesized paths
(direct effects) Notes: *Significant at p < 0.10 level; **Significant at p < 0.05; ***Significant at p < 0.001 level

relationship between compensation structure and organizational commitment. One of the


most importantly striking findings here in this research is that demographic factors have a
significant impact on faculty compensation, which in turn affects job satisfaction and
organizational commitment. This evidence has a deeper insight into HRM to manage quality
faculty members in the private universities where the turnover rate is observed to be high
(Ashraf, 2019; Ashraf et al., 2016).

Conclusion
As the main thrust of this paper is to investigate the faculty organizational commitment in
the private universities in Bangladesh, the study includes different demographic and HRM
factors in its model of analysis. The study looks into the direct and indirect effects of
demographic factors on employee compensation, job satisfaction and organizational
commitment. Specifically, how compensation structure and job satisfaction mediate in the
link between demographic factors and organizational commitment. This research employs a
Indirect Direct
Analysis using
H Exogenous Mediating Endogenous effect effect Status SEM
H7 Demographic ! Compensation ! Organizational CS!JS DF!OC Compensation
factors (DF) structure (CS) commitment b = 0.32 b =0.04 structure is
(OC) Sig*** Not sig. fully
CS!OC mediating
b = 0.14
Sig*
H8 Demographic ! Compensation ! Job satisfaction DF!CS DF!JS Compensation
factors (DF) structure (CS) (JS) b = 0.32 b = 0.10 structure is
Sig*** Not sig. fully
CS!JS mediating
b = 0.66
Sig***
H9 Compensation ! Job ! Organizational b = 0.66 CS!OC Job
structure (CS) satisfaction commitment Sig*** b = 0.14 Satisfaction is
(JS) (OC) JS!OC Sig* fully
b = 0.64 mediating
Sig***
H10 Demographic ! Job ! Organizational DF!JS DF!OC Job
factors (DF) satisfaction sommitment b = 0.10 b = 0.04 Satisfaction is
(JS) (OC) Not sig. Not sig. partially Table 6.
JS!OC mediating
b = 0.64
Standardized path
Sig*** coefficients for
hypothesized paths
Notes: *Significant at p < 0.10 level; **Significant at p < 0.05; ***Significant at p < 0.001 level (indirect effects)

Observed values extracted


Name of category Name of index Acceptance level from fit model

1. Absolute fit Chisq p > 0.05 p = 0.513


RMSEA RMSEA < 0.08 RMSEA = 0.065
GFI GFI > 0.90 GFI = 0.923
2. Incremental fit CFI CFI > 0.90 CFI = 0.914
TLI TLI > 0.90 TLI = 0.903
3. Parsimonious fit Chisq/Df = ratio Ratio < 5.0 Ratio = 2.345
Table 7.
Source: Zainudin (2012) Fit index

theoretical framework using the theory of employee retention provided by Martin and
Kaufman (2013). The findings of the study indicate that though demographic factors have
no direct impact on organizational commitment, they have indirect impacts on
organizational commitment through the mediation of compensation structure and faculty
job satisfaction. Besides, compensation structure also has a significant mediating role in the
link between demographic structure and faculty job satisfaction.
In the current study, Martin and Kauman’s (2013) model served as a useful foundation
for helping to explain organizational commitment, even though the model used here
JGR departed from the model by not including the intention to quit variable. The relationship
between demographic factors and compensation structure was strong and negative, even
though it had a negative standardized coefficient but not significantly associated with the
organizational commitment of the faculty members. In Martin and Kaufman (2013) model,
there is a direct relationship between compensation structure and job satisfaction that was
supported here, and the relationship between job satisfaction and organizational
commitment was strong.
As the present study is concerned with organizational commitment behavior, the
findings imply that the faculty members are swayed more by their perceptions about the
compensation structure than by concerns they might have about other variables of human
resource practices. Evidence about demographic factors and injustice once again ratifies to
be the fact as it has a significant negative association with the compensation structure of the
faculty members in the private universities in Bangladesh.

Implications for research and practices


From a research perspective, the study results demonstrate the robustness of the model
provided Martin and Kaufman (2013) for helping to explain the organizational commitment
of the faculty members in the private universities in Bangladesh. Perhaps, this is the first
study incorporating Martin and Kaufman’s (2013) model in studying HRM practices in the
context of the academic field in an emerging economy such as Bangladesh. So, the results
obtained in the present study are difficult to compare with the findings of other related
studies that used the same model. In this respect, more studies are needed from different
dimensions of thinking to evaluate the predictive and explicative power of the model.
From a practical perspective, as a cumulative body of work on organizational
commitment, we will be better able to advise policymakers and educators on the elements
they need to address to increase the longer engagement of the faculty members in their
institutes. In this study, the one area of findings that may help policymakers and educators
the most concerns compensation package that affects job satisfaction and organizational
commitment. We found that demographic factors and compensation packages are the most
important factors for the faculty members to impact organizational commitment in this
study. The implication is that policymakers of the private universities can focus on fair
justice in terms of demographic factors and compensation package for job satisfaction,
motivation and organizational commitment of the faculty members in their universities.

Future research directions


This study considered only two antecedents to job satisfaction and organizational
commitment. There may well be others that should be considered in future research, such as
other aspects of T&D, supervisor’s cooperation, as well as work condition. Valid and reliable
scales for these constructs need to be developed, however, to include them in future studies.
Job security and safety, distinguished from other human resource practices, could also be
included in the studies. Also, this study asked respondents about the importance of
demographic factors in determining their views about the present practice of compensation
structure and for this sample, not all of the other issues were viewed as influential except job
satisfaction. Future studies could test the importance of human resources constructs based
on other influences than the ones tested here. Finally, future research initiatives could
include the faculty members of the public universities and colleges in their studies that
might reflect different perspectives of higher education in Bangladesh.
Limitations Analysis using
As with any study, there are limitations to the study described here. One possible drawback SEM
is the number of private universities from which the data were collected. In the sample used
here, only 20 private universities were selected to conduct the survey. Besides, the study
could not include public universities that are also a significant part and parcel of higher
education in the country. So, if more private and public universities were taken into
consideration to collect the data, the results might be improved. Thus, the usual cautions
about overgeneralizing findings from this sample, to populations for which it is not strictly
representative, apply. The only optimistic issue is that the sample was randomly drawn to
represent a population of the private universities in Bangladesh. Still, the ability to
generalize the findings very far beyond the sample is limited.

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About the author


Mohammad Ali Ashraf is an accomplished Teacher and Researcher with over 20 years of experience
in higher academic organizations on an international basis. He earned the Master of Arts in
economics from the University of Ottawa, Ottawa, ON, Canada and the PhD from Universiti Utara
Malaysia, Changlun, Malaysia. At present, he is working as an Associate Professor at United
International University, Dhaka, Bangladesh. More than his role as a Teacher, he is also effective at
writing and research activities. In particular, he focused on topics such as economics, bounded
rationality theory, consumer behavior, marketing, education, entrepreneurship, microfinance and
Islamic finance and banking. He has a plethora of publications published in international journals
that include the Journal of Economic Cooperation and Development, Journal of Social
Entrepreneurship, British Food Journal, Journal of International Food and Agribusiness Marketing,
Journal of Islamic Marketing, Quality Assurance in Education, International Journal of Educational
Management, Journal of Social Entrepreneurship, Enterprise Development and Microfinance, Journal
of Workplace Learning and others. He also reviews so many other international journals every now
and then. Right now, he remains involved in editing a book entitled, Consumer Behavior and
Research on behalf of NOVA Science Publishers located in New York, NY, USA. Mohammad Ali
Ashraf can be contacted at: mashraf@eco.uiu.ac.bd

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