Influence of Compensation and Organizational Culture on Employee Performance: A Study on IT Firms of Dhaka, Bangladesh

Afdalin Bin Haque, Arif Al Mahmud, Adnan Hossain


This paper aims to investigate the influence of Employee Compensation inclusive of Salary, Rewards and Incentives, Indirect Compensation and also Organizational Culture on the employee performance of the IT firms based on Dhaka, Bangladesh. A total of 204 employees of different IT firms of Dhaka were randomly selected as sample of the study responding to a structured questionnaire. The study incorporated Pearson Correlation and Multiple Regression analysis to analyze the data. The results exhibit the relationship and also demonstrate the impact of total compensation of employees and organizational culture on employee performance. The core findings of this study will benefit the user especially from the IT sector to identify the factors that increase the performance level of any IT personnel as the cumulative employee performance is the organization’s performance. The study is to be the first to explore the impact of Compensation and Organizational Culture on Employee performance in urban context of Bangladesh.

Full Text:



Ahmed, M., & Ahmed, A. B. (2014). The Impact of Indirect Compensation on Employee performance: An Overview. Public Policy and Administration Research, 4(6), 27-30.

Armstrong, M. (2016). Armstrongs handbook of strategic human resource management (6th ed.). London: KoganPage.

Baptiste, N. R. (2008). Tightening the link between employee wellbeing at work and performance. Management Decision, 46(2), 284-309.

Barifaijo, M., Nkata, J., & Ssempebwa, J. (2009). Human Resource Management Relate d Facto rs Affecting Performance among Part-time Academic Staff in Ugandan Public Universities. Makerere Journal of Higher Education, 2(1).

Boddy, D., Boonstra, A., & Kennedy, G. (2009). Managing information systems: Strategy and organisation. Harlow: Prentice Hall Financial Times.

Boselie, P., Dietz, G., & Boon, C. (2005). Commonalities and contradictions in HRM and performance research. Human Resource Management Journal, 15(3), 67-94.

Bratton, J., & Gold, J. (2017). Human resource management: Theory and practice (6th ed.). London: Palgrave Macmillan.

Burkhauser, M., Bronte-Tinkew, J., & Kennedy, E. (2008). Building community partnerships: tips for out-of-school time programs. Child Trends, 13(8).

Calvin, O. Y. (2017). The Impact of Remuneration on Employees Performance : A Study of Abdul Gusau Polytechnic, Talata-Mafara and State College of Education Maru, Zamfara State. Nigerian Chapter of Arabian Journal of Business and Management Review, 4(2), 34-43.

Campbell, J. P., Mchenry, J. J., & Wise, L. L. (1990). Modeling Job Performance In A Population Of Jobs. Personnel Psychology, 43(2), 313-575.

Chhabra, T. N. (2005). Human resource management: Concepts and issues (2nd ed.). Delhi: Dhanpat Rai & (P).

Daft, R. L. (2013). Understanding theory and design of organizations (11th ed.). Australia: South Western, Cengage Learning.

DeMatteo, J. S., Eby, L. T., & Sundstrom, E. (1998). Team-based rewards: Current empirical evidence. Research in organizational behavior, 20, 141-183.

Dessler, G. (2015). Human resource management (14th ed.). Boston: Pearson.

Dyer, L., & Reeves, T. (1995). Human resource strategies and firm performance: What do we know and where do we need to go? The International Journal of Human Resource Management, 6(3), 656-670.

Furnham, A., & Gunter, B. (1993). Corporate Assessment. Auditing a Company’s Personality. Organization Studies, 14(4), 640-640.

Golung, H. D. (2013). Relationship between Compensation, Work Environment, Organizational Culture, and Employee Performance at Hotel Sedona Manado. Jurnal EMBA, 1(4), 811-819.

Hartman, R. J., Kurtz, E. M., & Moser, E. K. (1994). Incentive programs to improve transit employee performance (Ser. 3). Washington, D.C.: National Academy Press.

Heathfield, S. M. (2019, May 14). What Are Salary and Salary Requirements of Job Candidates? Retrieved from

Hellriegel, D., Jackson, S. E., & Slocum, J. W. (2005). Management. Singapur: Thomson Learning.

Hofstede, G., & Bond, M. H. (1988). The Confucius connection: From cultural roots to economic growth. Organizational Dynamics, 16(4), 5-21.

Hofstede, G., Neuijen, B., Ohayv, D. D., & Sanders, G. (1990). Measuring Organizational Cultures: A Qualitative and Quantitative Study Across Twenty Cases. Administrative Science Quarterly, 35(2), 286-316.

Ivancevich, J. M., & Glueck, W. G. (1989). Foundations of personnel: Human resource management. Homewood, Ill: Irwin.

Kim, P. S., Pindur, W., & Reynolds, K. (1995). Creating a new organizational culture: The key to total quality management in the public sector. International Journal of Public Administration, 18(4), 675-709.

Kline, S., & Hsieh, Y. J. (2007). Wage Differentials in the Lodging Industry. Journal of Human Resources in Hospitality & Tourism, 6(1), 69-84.

Lazear, E. (1999). Personnel Economics: Past Lessons and Future Directions Presidential Address to the Society of Labor Economists, San Francisco, May 1, 1998. Journal of Labor Economics, 17(2), 199-236.

Louis, M. R.. (1981). A cultural perspective on organizations: The need for and consequences of viewing organizations as culture-bearing milieux. Human Systems Management, 2(4). 246-258. 10.3233/HSM-1981-2403.

Luthans, F. (2011). Organizational behavior: An evidence-based approach (12th ed.). Boston: McGraw-Hill.

Malhotra, N., Budhwar, P., & Prowse, P. (2007). Linking rewards to commitment: An empirical investigation of four UK call centres. The International Journal of Human Resource Management, 18(12), 2095-2128.

Martins, E., & Terblanche, F. (2003). Building organisational culture that stimulates creativity and innovation. European Journal of Innovation Management, 6(1), 64-74.

Martocchio, J. J. (2011). Strategic compensation: A human resource management approach (6th ed.). Upper Saddle River, NJ: Pearson.

Messner, W. (2013). Effect of organizational culture on employee commitment in the Indian IT services sourcing industry. Journal of Indian Business Research, 5(2), 76-100.

Nazir, O., & Islam, J. U. (2017). Enhancing organizational commitment and employee performance through employee engagement. South Asian Journal of Business Studies, 6(1), 98-114.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2013). Human resource management: Gaining a competitive advantage (8th ed.). New York: McGraw-Hill/Irwin.

Pattanayak, B. (2014). Human resource management (4th ed.). Delhi: PHI Private Limited.

Pitts, C. (1995). Motivating your organization: Achieving business success through reward and recognition (1st ed.). London: McGraw-Hill Book.

Ritchie, M. (2000). Organizational culture: An examination of its effect on the internalization process and member performance. Southern Business Review, 25(2), 1-13.

Rousseau, D. M., & Tijoriwala, S. A. (1998). Assessing psychological contracts: Issues, alternatives and measures. Journal of Organizational Behavior, 19(S1), 679-695.<679::AID-JOB971>3.0.CO;2-N

Rue, L. W., Ibrahim, N. A., & Byars, L. L. (2016). Human resource management (11th ed.). New York: McGraw-Hill Education.

Schein, E. H. (2010). Organizational culture and leadership (4th ed.). San Francisco: Jossey-Bass.

Schiller, Z. (1996). A Model Incentive plan gets Caught in a vise. Business Week: 89-90.

Slocum, J. W., & Hellriegel, D. (2011). Principles of organizational behavior (13th ed.). Mason, OH: South-Western.

Smircich, L. (2017). Concepts of Culture and Organizational Analysis. The Anthropology of Organisations, 255-274.

Tichy, N. M. (1982). Managing change strategically: The technical, political, and cultural keys. Organizational dynamics, 11(2), 59-80.

Tsai, K., & Wang, J. (2005). Benefits offer no advantage on firm productivity? Personnel Review, 34(4), 393-405.


Copyright (c) 2019 Afdalin Bin Haque, Arif Al Mahmud, Adnan Hossain

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

International Journal of Human Resource Studies  ISSN 2162-3058


Copyright © Macrothink Institute  

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.