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The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction

Dissertation (MCom)--University of Pretoria, 2012.

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Other Authors: Barkhuizen, E. Nicolene
Format: Thesis
Published: University of Pretoria 2013
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access_status_str Open Access
author2 Barkhuizen, E. Nicolene
author_browse Barkhuizen, E. Nicolene
author_facet Barkhuizen, E. Nicolene
collection Thesis
dc_rights_str_mv © 2012, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria C12/9/3/
description Dissertation (MCom)--University of Pretoria, 2012.
format Thesis
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institution University of Pretoria (South Africa)
last_indexed 2026-06-10T12:37:47.729Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
publishDate 2013
publishDateRange 2013
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publisher University of Pretoria
publisherStr University of Pretoria
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source_str UPSpace — University of Pretoria Institutional Repository
spelling oai:repository.up.ac.za:2263/30769 The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction Barkhuizen, E. Nicolene sage.natasha@gmail.com Sage, Natasha UCTD Host country nationals Job satisfaction Perceived inequity Organisational commitment Dissertation (MCom)--University of Pretoria, 2012. Background and Aim: Skills shortages in international organisations are commonly remedied with the use of expatriates. These expatriates are well paid for their expertise as well as for relocation “inconvenience”. However, it has become widely known internationally that expatriates receive far more attractive remuneration than their Host Country National (HCN) colleagues (local employees). The need for this study was formed on the basis of the HCN’s perception of this disparity and whether it could have a negative effect on his / her job attitudes. The main purpose of the research study described herein is to investigate the relationship between the expatriate-HCN pay differential in perspective of the HCN’s perceptions of pay unfairness, and the impact thereof on the organisation commitment and job satisfaction of HCN’s. More specifically this research aimed at determining whether there is (1) a HCN-Perceived Compensation Disparity (HPCD) between (HCNs) and expatriates, whether there is (2) a relationship between HPCD and the HCN’s Organisational Commitment (OC), and whether there is (3) a relationship between HPCD and the HCN’s Job Satisfaction (JS). Method: A cross-sectional survey design was used, with a purposive sample (N = 86) taken from organisations across several industrial sectors in South Africa. A single-item scale for HPCD, the Minnesota Satisfaction Questionnaire (MSQ) and Organisational Commitment Questionnaire (OCQ) were administered to professional and skilled Host Country Nationals (HCNs) of South Africa, working on a same or similar hierarchal level as expatriates. Descriptive statistics, data analysis and hypothesis testing were performed using Statistical Package for the Social Sciences (SPSS) software, outputting frequency tables, mean, standard deviation, Cronbach’s alpha coefficients (testing for reliability) and Pearson correlation coefficients to investigate relationships. Results: Results showed existence of an HPCD (Host Country National Perceived Compensation Difference). No significant relationship was observed between the HPCD and Organisational Commitment (OC) (r(df = 86; p = 0.243) = -0. 129). A practically significant negative correlation (medium effect) was observed between HPCD and Job Satisfaction (JS), (r(df = 86; p = 0.002) = -0.336). These results were supported by the findings from a literature review, with the exception of the lack of statistical significance in the HPCD and OC relationship. Practical Relevance: Interpretations from all the results were made and future theoretical and practical recommendations to the HRM industry are proposed. This research provides valuable insight into the South African context, filling a literature gap in this area and provides knowledge with regards to the applicability of the equity theory and social comparison theory in the workplace. Human Resource Management MCom Unrestricted 2013-09-09T07:29:56Z 2012-10-11 2013-09-09T07:29:56Z 2012-09-05 2012-10-11 2012-04-25 Dissertation Sage, N 2012, The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction, MCom Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/30769> C12/9/3/ag http://hdl.handle.net/2263/30769 http://upetd.up.ac.za/thesis/available/etd-04252012-091104/ © 2012, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria C12/9/3/ application/pdf University of Pretoria
spellingShingle UCTD
Host country nationals
Job satisfaction
Perceived inequity
Organisational commitment
The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction
title The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction
title_full The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction
title_fullStr The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction
title_full_unstemmed The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction
title_short The effect of expatriate salary on host country nationals in South Africa : a study involving perceived compensation disparity, organisational commitment and job satisfaction
title_sort effect of expatriate salary on host country nationals in south africa a study involving perceived compensation disparity organisational commitment and job satisfaction
topic UCTD
Host country nationals
Job satisfaction
Perceived inequity
Organisational commitment
url http://hdl.handle.net/2263/30769
http://upetd.up.ac.za/thesis/available/etd-04252012-091104/