Research On Different Effects Of Active And Passive Pay Raise On Employees’ Task Performance And Turnover Intention

Salary increase is an important incentive way in human resource management. Both financial incentives for employees and equity incentives for senior managers are effective ways of salary incentive. But no matter how perfect the system is, in the developments and changes market, the enterprise will always encounter all sorts of "blind spot" systems. In response to the pay system is not timely, the enterprise will actively investigate the market and promptly pay for outstanding employees or passively wait a raise request from staff is become the focus of this article. Active and passive pay raise will both making business costs rise. Whether active and passive pay raise will lead to different efforts for employee behavior? If such difference exists, which psychological mechanism could explain the difference?Based on reading and combing the literature on Salary Incentive, this paper put forward that active and passive pay raise will affect employees’task performance and turnover intention in different ways from the perspective of incentive theory:active pay raise may positively relate to task performance and negatively relate to turnover intention, passive pay raise may negatively relate to task performance and positively relate to turnover intention. Then, this paper put forward that perceived organizational support will play a mediating role in the relationship between active pay raise and task performance, turnover intention. At last, depends on prior research this paper suggests that job insecurity will play a mediating role in the relationship between passive pay raise and task performance, turnover intentions.Through the theoretical analysis, firstly, this paper uses the interview method to find out the active and passive pay raise phenomenon in enterprises. Then, depends on existing research and employees’ understand of active and passive pay raise, measurement method was proposed. Thirdly, all related measurement scales was found and integrated to the questionnaire.This study uses data collected from 210 employees to examine the relationship between active and passive pay raise and task performance, turnover intention. At the same time it explores the mediating role of perceived organizational support in the relationship of active pay raise and employee behavior. The mediating role of job insecurity is also examined. The results show that:1. Active pay raise is related to task performance positively and related to turnover intention negatively. Passive pay raise is related to task performance negatively and related to turnover intention positively.2. In the relationship of active pay raise and task performance three dimensions of perceived organizational support are able to play mediating roles. In the relationship of active pay raise and turnover intention only one dimension-work support-can play the mediating role.3. In the five dimensions of job insecurity, job loss, insecurity of job execution and insecurity of interpersonal relationship can play mediating roles between the relationship of passive pay raise and turnover intention. But only insecurity of payment can act as a mediator of the relationship between passive pay raise and task performance.Depends on the result, this paper proposes implications for business management practices and points out limitations of this study and future research prospects.