Examination of the Effect of Employees’ Perception of Reward and Punishment on Their Future Prospect

Abstract

Organisational justice is the of employees’ perception of fairness regarding the implementations in their organisation. In this context, employees having a perception that rewards and punishments given to them are accurate and fair bears significance in terms of both their job satisfaction and expectations from future. This perception leads to a feeling that their workplace is a safe environment and also increases their work capacity and organisational commitment. Nonlinear canonical correlation analysis is a method that targets to model and explain the correlation power between two or more variable clusters, and that can be effectively applied on different fields. The aim of this study is to investigate the relationship between the reward and punishment perceptions of employees and their work capacity as well as the relationship between their future expectations and perceptions of reward and punishment. The study used questionnaire data from 208 individuals and findings were obtained through Nonlinear Canonical Correlation Analysis. Based on the findings obtained from the analysis, a relation exists between work capacity and reward and punishment at a rate of 72.4%. It was observed in the study that the work capacity of individuals that experienced frequent concerns over possible punishments, were sometimes afraid that they might be charged with ungrounded allegations, and that they needed to work quite a lot in their jobs were at medium-high level. The perception of employees that the rewards and punishments are fair will increase their hopes for the future along with the feeling that employees are an asset for the organisation and foster the thought of having fair gains in future. As a result of the analysis, it was observed that a relation at a rate of 69.2% exists between future expectations and reward and punishment perceptions. Furthermore, it was also established that individuals who aim to advance in their career in their workplace, have concerns over this, and believe that the salary they earn currently may not be possible to earn in another workplace within 5-7 years have high hopes for the future. This shows that the employees believe working in their current workplace will be rewarding and they have faith in that their expectations from the future will eventually come true.

Keywords: Organisational justice, Nonlinear canonical correlation analysis, perception of reward and punishment, work capacity, future prospects